| | Puerto Rico: Divergence not Convergence - en (Site not responding. Last check: 2007-10-09) |
 | | The neoclassical theory of economic growth predicts that the rate at which an economy grows during its transition to the steady state is proportional to its distance from that steady state -- the further the distance, the faster the growth, and vice versa. |
 | | During the transition towards this steady state, other things being equal, the rate of return in the economy and hence the rate of capital accumulation is inversely related to the initial per capita stock of capital. |
 | | In addition, for a given speed of convergence, increases in the steady state level of per capita income at which an economy is converging will raise the per capita income growth rate during the transition, since the economy will have to cover a longer distance in the same time. |
| www.puertorico-herald.org /issues/vol2n18/Convergence-en.shtml (10085 words) |