4 ms·
> Catching up is usually faster than pushing the state of the art further. Not so for exponential growth. e^x will always be greater than e^(x-t).
by speedplane 8y ago
> Catching up is usually faster than pushing the state of the art further.
Not so for exponential growth. e^x will always be greater than e^(x-t).
- melling 8y agoYou missed the part where they can simply borrow to catch up: “One is that as Chinese technology converges on that of advanced countries, the room for rapid improvement through borrowing declines”
- nopinsight 8y agoThe base for an economic growth model does not need to be e and generally would not be the same for different economies. The base for catching up economies is usually higher than developed economies (say 1.2 vs 1.1). In any case, a simple exponential equation is too simplistic for real economies.