Ch-02-Growth Models 发展经济学教材.pptVIP

Ch-2. The Growth models as a general base of DE Ch-1.1. Goals or measurements of Economic Growth and Human Development 1. GDP Basic measurement of economic well-being, as the result structural change of growth factors; Development means structure changes of GDP; GDP include public goods consumption; Major defections: Cannot measure the joy of leisure. Cannot measure the joy of work either, as a “side product”; Cannot measure the enrichment of “human values” beyond material consumption. Cannot measure the inter-generation environment cost of current GDP. 2. Attempt of amendment: HDI Human development index: GDP: material well-being, capability to development; Life expectancy: quality of life; Education: enrichment or exploration of human values, in addition to human capital. Weights for 3 components. 4. Conclusion Human development is a multi-facet matter; But the basic development is still the economic prosperity which will enable other things to happen, at least from the perspective of a poor country. Ch.1-2 Basic growth models Classical theories -- Smith: Y = f (L) F (L1, L2, L3….) -- Malthus: Y = F [L(Ws)] -- lack of interests: growth at 0.1%. Neo-Classical Models Harrod-Domar Model: K or ΔK; ΔY S ΔY g = f ( ΔK) = ----- = ---- x ------- Y Y ΔK S = ΔK --- importance of savings, and “poverty trap” as a major obstacle for growth. Solow model: K, L, F -- Cobb-Douglas Aggregate Production F: Y = F (K, L) = AKα L1-α F or A : Productivity (TFP)