ECON 333 Lecture 1

Comparative Development

Comparative Development

field of study analyzing why different countries or regions experience varying rates of economic, social, and political progress

Gross Domestic Product (GDP)

market value of all goods and services produced within a country in a given period of time

GDP Per Capita

a measure of living standards in a nation

GDP (income)/Population

GDP per capita formula

ignores wealth inequality, providing an average regardless of population size

What is the problem with GDP per capita?

gini coefficient

a standard, 0-to-1 scale statistical measure of income or wealth inequality within a population

the Great Divergence

the point in the mid 19th century when the per capita GDP began to separate between regions

70/Growth Rate

Doubling time formula (years)

income per capita, percentage of happy citizens

there is a positive relationship between _____ and ______

Human Development Index

attempts to rank all countries on a scale from 0 to 1 based on goals of longevity, knowledge, and standard of living

1/3(income index) + 1/3(life expectancy index) + 1/3(education index)

HDI Formula

(log(income per capita - log(100)) / (log(40000)-log(100))

Income index formula

(life expectancy - 25) / (85 - 25)

Life expectancy index formula