Contents Preface Part xi Introduction Chapter Economic Growth and Economic Development: The Questions 1.1 Cross-Country Income Differences 1.2 Income and Welfare 1.3 Economic Growth and Income Differences 1.4 Origins of Today’s Income Differences and World Economic Growth 1.5 Conditional Convergence 1.6 Correlates of Economic Growth 1.7 From Correlates to Fundamental Causes 1.8 The Agenda 1.9 References and Literature 3 11 14 19 23 26 29 32 Chapter The Solow Growth Model 2.1 The Economic Environment of the Basic Solow Model 2.2 The Solow Model in Discrete Time 2.3 Transitional Dynamics in the Discrete Time Solow Model 2.4 The Solow Model in Continuous Time 2.5 Transitional Dynamics in the Continuous Time Solow Model 2.6 Solow Model with Technological Progress 2.7 Comparative Dynamics 2.8 Taking Stock 2.9 References and Literature 2.10 Exercises 37 38 48 61 66 71 79 92 94 95 97 Chapter The Solow Model and the Data 3.1 Growth Accounting 3.2 Solow Model and Regression Analyses 3.3 The Solow Model with Human Capital 3.4 Solow Model and Cross-Country Income Differences: Regression Analyses 3.5 Calibrating Productivity Differences iii 103 103 107 117 125 135