Among countries with similar Solow steady states,poorer countries tend to grow _____ rich countries.

Question

Quizplus · Accepted Answer

According to the convergence hypothesis in the context of the Solow growth model, poorer countries tend to grow faster than richer countries as they catch up to the steady-state level of per capita income, assuming similar savings rates, population growth rates, and technologies. This is often referred to as "conditional convergence."

Among Countries with Similar Solow Steady States,poorer Countries Tend to Grow