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The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital

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  • Charles I. Jones
  • Paul M. Romer

Abstract

In 1961, Nicholas Kaldor highlighted six "stylized" facts to summarize the patterns that economists had discovered in national income accounts and to shape the growth models being developed to explain them. Redoing this exercise today shows just how much progress we have made. In contrast to Kaldor's facts, which revolved around a single state variable, physical capital, our updated facts force consideration of four far more interesting variables: ideas, institutions, population, and human capital. Dynamic models have uncovered subtle interactions among these variables, generating important insights about such big questions as: Why has growth accelerated? Why are there gains from trade? (JEL D01, E01, E22, E23, E24, J11)

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Article provided by American Economic Association in its journal American Economic Journal: Macroeconomics.

Volume (Year): 2 (2010)
Issue (Month): 1 (January)
Pages: 224-45

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Handle: RePEc:aea:aejmac:v:2:y:2010:i:1:p:224-45

Note: DOI: 10.1257/mac.2.1.224
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Bernanke: Economic Prospects for the Long Run
    by Mark Thoma in Economist's View on 2013-05-18 10:14:38
  2. Economic Prospects for the Long Run
    by Guest Author in The Big Picture on 2013-05-19 10:00:47
  3. Jones and Romer's Stylized Facts
    by David Stern in Stochastic Trend on 2011-03-09 10:48:00
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