In the context of growth empirics, 'Conditional Convergence' means that:
A.Countries converge to their own steady-state levels of income, which may differ because of differences in saving rates, population growth and technology
B.There is no convergence of any kind
C.All countries converge to the same income level regardless of fundamentals
Explanation:
Conditional convergence is the prediction that countries converge to their own steady states determined by their particular saving rates, population growth rates and levels of technology; poorer countries grow faster only after controlling for these differences.
Explanation:
The Easterlin Paradox observes that, while richer individuals within a country tend to report higher happiness, average national happiness does not increase systematically as national income grows over the long run.
No comments yet. Be the first to start the discussion!