Macroeconomics

Macro permanent

It is mainly discussed and explained by Solow Model, It clearly predicts when convergence should occur

Definition

Convergence usually happens among economies which have similar economic parameters, such as, the production function, the values of s,n, g, delta and so on.

The Empirical Evidence

The reason: Different countries have different steady states! Which is determined by their own saving, population growth and so on…