The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital
American Economic Journal: Macroeconomics
vol. 2,
no. 1, January 2010
(pp. 224-45)
Abstract
In 1961, Nicholas Kaldor highlighted six "stylized" facts to summarize the patterns that economists had discovered in national income accounts and to shape the growth models being developed to explain them. Redoing this exercise today shows just how much progress we have made. In contrast to Kaldor's facts, which revolved around a single state variable, physical capital, our updated facts force consideration of four far more interesting variables: ideas, institutions, population, and human capital. Dynamic models have uncovered subtle interactions among these variables, generating important insights about such big questions as: Why has growth accelerated? Why are there gains from trade? (JEL D01, E01, E22, E23, E24, J11)Citation
Jones, Charles I., and Paul M. Romer. 2010. "The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital." American Economic Journal: Macroeconomics, 2 (1): 224-45. DOI: 10.1257/mac.2.1.224Additional Materials
JEL Classification
- D01 Microeconomic Behavior: Underlying Principles
- E01 Measurement and Data on National Income and Product Accounts and Wealth
- E22 Capital; Investment; Capacity
- E23 Macroeconomics: Production
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
- J11 Demographic Trends and Forecasts; General Migration
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