"Economic Convergence shows that if two countries at different stages of development (e.g. one rich and one poor) move towards the same steady state level of capital per worker (k*), due to decreasing returns to K, the richer country is projected to grow at a much slower rate than does the poor one, which is at an initial stage of development where any additional increase in k produces much higher returns and thus, a much higher y."
Legend: K = capital; L = labor
k = capital per worker (K/L)
k* = steady state level of capital per worker
Y = output
y = output per worker (Y/L)
This is just the first sentence I wrote for a problem set. I'm quite proud of its length... and somewhat scared I may be turning into one of those people... You know who you are!
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