In particular, Brückner and Lederman test the prediction of the model by in the panel of countries during the period 1970–2010, by considering the impact of the interaction between the level of income inequality and the initial level of GDP per capita. The rule of 72, a mathematical result, states that if something grows at the rate of x% per year, then its level will double every 72/x years. There is little difference between GDP and GNP for the US, but the two measures can differ significantly for some economies. Jyot Hosagrahar „Culture: at the heart of SDGs“, UNESCO-Kurier, April-June 2017. Similarly, political instability in the government scares investors and hinders investment. , Mass production of the 1920s created overproduction, which was arguably one of several causes of the Great Depression of the 1930s. , "Democracy Does Cause Growth", according to Acemoglu et al.  "In a famous estimate, MIT Professor Robert Solow concluded that technological progress has accounted for 80 percent of the long-term rise in U.S. per capita income, with increased investment in capital explaining only the remaining 20 percent. This showed that the increase in capital and labor stock only accounted for about half of the output, while the population increase adjustments to capital explained eighth. Later theoretical developments have reinforced the view that inequality has an adverse effect on the growth process. Those not involved or related to the growth-generating sector of the economy get left behind. Eric Hanushek and Ludger Wößmann have extended this analysis. Higher consumption can lead to a worsening of a nation’s trade deficit especially when households have a high income elasticity of demand for imported goods and services. Inflation. This growth rate represents the trend in the average level of GDP over the period, and ignores any fluctuations in the GDP around this trend. The rise in the allocation of resources towards education triggered a fertility decline enabling economies to allocate a larger share of the fruits of technological progress to a steady increase in income per capita, rather than towards the growth of population, paving the way for the emergence of sustained economic growth. The theory suggests that during most of human existence, technological progress was offset by population growth, and living standards were near subsistence across time and space. Trust fund balances projected in CBO’s baseline. Second, his study analyzes the effect of inequality on the average growth rate in the following 10 years.  The rapid economic growth that occurred during the Industrial Revolution was remarkable because it was in excess of population growth, providing an escape from the Malthusian trap. He stressed that cumulative capital and specialization were key, and that not only population growth can increase capital of knowledge, it was human capital that is specifically trained in harvesting new ideas. Amongst many papers that day the one that stood out was Romer's “ Micro Foundations for Aggregate Technological Change.” The Micro Foundation claimed that endogenous technological change had the concept of Intellectual Property imbedded and that knowledge is an input and output of production. In places where these colonizers faced high mortality rates (e.g., due to the presence of tropical diseases), they could not settle permanently, and they were thus more likely to establish extractive institutions, which persisted after independence; in places where they could settle permanently (e.g. There exists some extremum value. Events in one country and region can have a significant effect on growth prospects in another.
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