Economic Growth Models Essay Example | Topics and Well Written Essays - 2500 words

Economic Growth Models - Essay Example Y = AKL1-, 0where A measures the level of technology. Output per worker, y = Y/L, is thus given by y = Ak where k denotes the capital-labor ratio. Capital accumulation is given by k = sy - (n + )k, 0 where s denotes the propensity to save, n > 0 the exogenous rate of population growth, and the rate of depreciation of physical capital(Agnor and Montiel 1999, p.671). The Solow-Swan growth model predicts that growth should be uncorrelated with the ratio of national investment to total output (gross domestic product or GDP). If capital markets are open, the model predicts instantaneous convergence of output per capita across countries. Convergence is achieved by capital flows from rich to poor countries and a consequence of these flows is that the ratio of national savings to GDP in each country should differ substantially from the ratio of investment to GDP since there is no reason to expect that countries with high savings rates should be those with large investment opportunities. In the presence of capital market imperfections, such as the inability to borrow to finance human capital accumulation, convergence is predicted to occur more slowly (Farmer and Lahiri, 2003). Figure 1. Equilibrium in the Solow-Swan Model Source: Kalyvitis (n.d., p.6) Assuming that all regions possess similar technology and similar preferences, and that there are no institutional barriers to the flow of both capital and labor across state borders, the Solow-Swan neoclassical growth model predicts that states would have similar levels of real per capita income in the long run (convergence). Across regions of a given... Assuming that all regions possess similar technology and similar preferences, and that there are no institutional barriers to the flow of both capital and labor across state borders, the Solow-Swan neoclassical growth model predicts that states would have similar levels of real per capita income in the long run (convergence). Across regions of a given country that share such a common long-run level of real per capita income, convergence of per capita incomes is driven by diminishing returns to capital. That is, each addition to the capital stock generates large increases in output when the regional stock of capital is small. If the only difference between regional economies lies in the level of their initial stock of capital, the neoclassical growth model predicts that poor regions will grow faster than rich ones—regions with lower starting values of the capital-labor ratio will have higher per capita income growth rates. Other channels through which convergence can occur are interregional capital mobility; the diffusion of technology from leader to follower economies; the redistribution of incomes from relatively rich regions to relatively poor regions of a federal country by its central government; and flows of labor from poor to rich regions (Cashin and Sahay 1996, p.49).Agà ©nor and Montiel (1999, p.677) note that the neoclassical growth model only predicts â€Å"conditional† convergence, that is a tendency for per capita income to converge across countries only after controlling.

Birth Control in the USA Essay Example | Topics and Well Written Essays - 500 words

Birth Control in the USA - Essay Example A recent study has proved that 42% of teenage girls living in urban society involved in sex before they reach 15 and 26% of them having sex at the age of 14 (Guttmacher Institute, 2012). The statics reveals that it would be beneficial if the young girls get the access to protective contraceptives and condoms. Elders believe that young school going students must not found involved in sex and therefore, birth control pills are not something for them (Eichner 129). According to them, if the teenage girls get the easy access to condoms or contraceptives, there is a likelihood that the trend might get reach to the peak as it will surely encourage them to have sex whether safe or not. No matter what people think, the sad part is that teenagers are not going to stop the sex activities and therefore, it would be ideal to accept the reality and allow them to have protective sex in order to counter the harsh consequence in term of pregnancy. Many hospitals and doctors have the rule of parent’s permissible note from the teenage group girls so that they can prescribe the pills. However, there are some clinics that offer birth control pills or condom with family insurance without the note to young teenage girls of age 15 and above without seeing their parents. Family insurance helps when the girl using condom or pill accidentally gets pregnant. So, the discussion is very clear that if a teenage girl wants to involve in sexual activities, she has complete right to have the access to the preventive material so that she can avoid unwanted pregnancy. It is also good for the society where a new addition is not needed for the time being from a young girl or the school going teenage girl faces a dropout.