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a.) Which model, Malthusian or Solow, best explains growth throughout the world prior to the industrial revolution (~1800). Why?
b.) On the rst day of class, we saw that income per-capita has grown since 1900 at a rate of 2 percent.
i.) Can this long-run growth fact be explained by technology growth in the Malthusian model? Are there any government policies that would enable constant per-capita income growth in the Malthusian model?
ii.) Can the Solow model explain this long-run growth fact? What must be true about technology growth in the Solow model to explain this fact?
c.) In Problem Set 2, you found higher variance in per-capita growth among poor countries than among rich countries. What assumptions about technology adoption would allow you to use the intuition of the Solow model to explain this fact?
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