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Human Capital
The knowledge, skills, and experiences that individuals possess, which contribute to economic productivity.
Solow Model
A model of long-term economic growth that examines the role of capital accumulation, labor or population growth, and increases in productivity.
Empirical Motivation
The use of real-world data to justify the study and conclusions drawn from a theoretical model.
Calibration
The process of adjusting model parameters to match real-world data to improve model accuracy.
Steady State
A condition where key economic variables remain constant over time, often used in growth models.
Physical Capital
Tangible assets such as machinery, buildings, and equipment used in the production process.
Human Capital Accumulation
The process through which individuals acquire skills and education over time, contributing to their productivity.
Return to Education
The economic benefits gained from investing in education, typically measured in increased income.
Mincer Equation
An equation that relates earnings to education and experience, often used to estimate the returns to education.
Income Ratio
A comparison of income levels between two or more countries, useful for understanding economic disparities.
Returns Differential
The variation in returns on investments, often highlighting differences in income or productivity across regions or countries.
