ECON 2200 Lecture Notes - Lecture 4: Limited Government, Human Capital, Inventory Control
16 Dec 2016
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Document Summary
Note contributions of douglass north and robert fogel (p. 11-17), who were jointly awarded the 1993 nobel prize in economics. Big part of research was to try to explain economic development. Determinants of development: factor endowment: land (all natural resources); labor (including entrepreneurial talent); capital (buildings, tools, and machinery used to produce goods) Economic development is a function of what you have and how you use it: productivity: output per unit of input (how you use your factors of production) Typically reported as output per worker hour (= labor productivity) Output per worker hour because not everyone is employed for the same amount of hours every week. The driving force behind increases in income. Sources of productivity growth (p. 15-16) enhancing productivity. Technology: advances in knowledge that raise output or lower costs (p. 18) More output from a given set of inputs. Invention (creation of new knowledge) v. innovation (taking existing knowledge and attaching it to new uses)
