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Answer questions following the guidence. only answer the first page please

ECON-4050 – ASSIGNMENT DUE DATE MARCH 24 MAXIMUM MARKS 100 Question-1: The following questions are based on the discussion presented in Romer (1994)

Answer questions following the guidence. only answer the first page please

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ECON-4050

ASSIGNMENT
DUE DATE MARCH 24
MAXIMUM MARKS 100
Question-1:
The following questions are based on the discussion presented in Romer (1994) “
Origins of
Endogenous Growth” [available on blackboard]
(1) According to Romer (1994) why does the neoclassical model fail to predict
growth
rates of
countries? How is this related to the convergence controversy?
(2) Romer (1994) discusses three strategies for addressing the problem demonstrated in the
previous question. What are they? You should explain each in brief, citing parameters from the
model. According to Romer, why are these approaches unlikely to be successful in addressing
the convergence controversy?
(3) In what sense does the incorporation of human capital improve the fit of the neoclassical
growth model? Does this modification improve the model’s ability to explain differences in the
level
of per capita income across countries? Does it help to improve the model’s ability to
explain differences in
growth
rates across countries?
(4) Explain the meaning of each of the following terms and explain why each is important for
endogenous growth models.
(i) Nonrivalrous goods
(ii) Degree of excludability
(iii) Intellectual property right
(iv) Externalities

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Question-2:

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