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Convergence in State Per Capita Personal Income, 195099 June  Form

Convergence in State Per Capita Personal Income, 195099 June Form

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hi so in this video we're going to be looking at absolute and conditional convergence in the solo growth model so in order to examine those two two types of convergence I'm first going to start by deriving an equation which helps us examine it so we're gonna start with our fundamental equation of the solo model which says that the training capital equals investment - break-even investment in the terms we should be familiar with and I'm simply going to divide through both sides by capital per capita like so all the terms are divided by capital per capita and so we get that this first term is actually the growth rates of capital per capita because it's the change in capital per capita divided by capital cancer that's what a growth rate is this is equal to our investment term divided by capital per capita and - and this constant because our cubs are per capita cancel out in this term so we have a constant that our 30 was sort of breakeven investment constant and it is no longer break-even

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