ECON 10010 Lecture Notes - Lecture 24: Natural Experiment, Human Capital Flight, Rsa Security
Document Summary
Different areas of knowledge is the input. Example: using new equations: increase production because it doesn"t produce congestion, knowledge and growth, over the las two centuries, new knowledge is what had produced economic growth: 110000 bc- last ice age: population density: 0. 03 person per km2. Old world (africa, europe, asia) has the biggest density: stone age technology everywhere. 8000 bc- ice melts, sea levels rise, land bridges drown: experiment actually begins here, for 9500 years, all countries develop new technologies. 1500 ad- experiment ends- sailing/exploration starts: old world has the best technology (early modern technology, new world had technology but very complicated cities and mathematics. Classifies as a true natural experiment: money is a rival good = many soviet mathematicians had a hard time finding jobs, knowledge was affected by the competition effect. Knowledge has a free-rider problem: people don"t want to pay scientists.
