Rule of 70 Labor productivity Productivity Physical capital Human capital Technological progress Aggregate production function Diminishing returns to physical capital Growth accounting Total factor productivity Sustainable long-run economic growth Research and development (R&D) Infrastructure Convergence hypothesis | physical capital, such as roads, power lines, ports, information networks, and other parts of an economy, that provides the underpinnings, or foundation, for economic activity. describes the effect on an aggregate production function when the amount of human capital per worker and the state of technology are held fixed: each successive increase in the amount of physical capital per worker leads to a smaller increase in productivity. a hypothetical function that shows how productivity (real GDP per worker) depends on the quantities of physical capital per worker and human capital per worker as well as the state of technology. the improvement in labor created by the education and knowledge embodied in the workforce. human-made goods such as buildings and machines used to produce other goods and services. spending to create and implement new technologies. output per worker; an alternative term for labor productivity. a theory of economic growth that holds that international differences in real GDP per capita tend to narrow over time because countries with low GDP per capita generally have higher growth rates. estimation of the contribution of each of the major factors (physical and human capital, labor, and technology) in the aggregate production function. the amount of output that can be produced with a given amount of factor inputs. output per worker; also known simply as productivity. an advance in the technical means of the production of goods and services. long-run growth that can continue in the face of the limited supply of natural resources and the impact of growth on the environment. a mathematical formula that states that the time it takes real GDP per capita, or any other variable that grows gradually over time, to double is approximately 70 divided by that variable’s annual growth rate. |
Rule of 70
Labor productivity
Productivity
Physical capital
Human capital
Technological progress
Aggregate production function
Diminishing returns to physical capital
Growth accounting
Total factor productivity
Sustainable long-run economic growth
Research and development (R&D)
Infrastructure
Convergence hypothesis