1. Economic Growth Production function  Output Resources Labor
Physical capital
Human capital
Technology
Diminishing returns to each factor
 Output per worker approaches a dynamic steady-state value
 Convergence of per capita incomes

2. The excess of growth beyond inputs
U.S Economic Growth
Increased inputs: labor, capital, education
The excess of growth beyond inputs
 Technology
Invention and innovation embodied in hardward
SMARTS
Golden Age, 1946 – 1970
Growth Slowdown?
Productivity Slowdown?
Spurring Growth
A “New Economy” ?
Limits to Growth? … What do you think?