According to the Solow Model, productivity growth is the key to long-term, sustained economic growth. In practice, this is quantified by a blunt measure of economic efficiency called total factor productivity (TFP). Referred to as a "measure of our ignorance" by Robert Solow himself, TFP is calculated by summing up all growth that is not … Continue reading Technology Dynamics and Growth
Tag: economic growth
How We Use Energy in 2018
In June, oil supermajor British Petroleum (BP) released its 2018 Statistical Review of World Energy, a summary of the trends observed in the energy industry during the prior year and the economic factors driving those trends. BP's Statistical Review is published annually and is considered a benchmark for the energy industry. Lately, there has been … Continue reading How We Use Energy in 2018
The Sustainable Development Goals
In the year 2000, the United Nations (UN) adopted the United Nations Millennium Declaration, a document that established the Millennium Development Goals (MDGs) — eight goals related to economic development with a target completion date of 2015. Those targets were: To eradicate extreme poverty and hunger To achieve universal primary education To promote gender equality and empower women To reduce child mortality … Continue reading The Sustainable Development Goals
The Energy-Development Nexus
Energy and economic development significantly affect one another. Exactly how they do so, though, is far from straightforward and depends on a dizzying web of interrelated complex systems. As such, this post will not provide the reader with a definitive relationship between the two, but rather will provide an overview of topics regarding the relationship. … Continue reading The Energy-Development Nexus
The Causes of the Wealth of Nations
Sustained, long-term output per capita growth, often referred to simply as "economic growth" is the ultimate goal of most economic policy interventions, and there are a number of models — mathematic representations of the economy — designed to explain how adjusting certain variables affects output per capita. The Solow Model is one of the simplest models of … Continue reading The Causes of the Wealth of Nations
