Ec4004 Lecture16

This document discusses the Solow growth model and economic convergence. It introduces key equations of the Solow model relating capital per worker (k), GDP per worker (y), saving rate (s), depreciation rate (δ), and population growth rate (n). It explains that economies starting at different levels of capital per worker will converge over time towards the same steady-state level as the lower starting economy grows faster initially. GDP per worker convergence follows from capital per worker convergence. Conditional and absolute convergence are defined.