Economic convergence is the concept that poor economies will Assignment

Economic convergence is the concept that poor economies will eventually catch up with the developed countries - Assignment Example Chile is one of the smaller countries in South American region with one of the most vibrant economies in the region. It is termed as an upper middle income country as per the standards of World Bank. It is also considered as most stable and prosperous nations in the region due to its sustained economic performance. It has been argued that the Chile’s government has kept constant policies sustained over the period of almost three decades witnessing reduction in poverty to almost half. This impressive economic performance of the country has resulted into the narrowing of the gap between Chile and other developed countries as accelerated rate of growth has provided Chile much needed convergence to be part of the fastest growing countries. This literature review will provide a review of existing literature on the subject of economic convergence, growth and financial development in Chile. By reviewing the current literature, this review will offer insight into economic convergence of Chile. Macroeconomic Convergence- Theoretical Framework As mentioned above, there are two different concepts of macroeconomic convergence i.e. beta and sigma convergence. Beta convergence signifies convergence through the per capita income and the later is through convergence of cross sectional dispersion of per capita income. In economic growth literature, word convergence is often used to define the initial economic and subsequent growth. (Jones) Two countries exhibit convergence if the poor country with lower levels of income grows faster than the other. This type of convergence is called beta convergence where absolute convergence can be achieved when the per capita incomes actually converge to a steady level of state. Conditional convergence however occurs when the countries have different level of per capita income and it is also experiencing convergence. This also means that each country is actually converging at its own rate and that in the long run all countries will con verge and growth rates will be equalized. Absolute convergence also suggests the conversion of the growth rates of all the economies over the period of time. The convergence debate is mostly based upon two important models of economic growth i.e. Solow’s growth model as well as the endogenous growth theory. Neo-classical literature suggests that an economy starts to converge when the output is constant and the growth rate is zero. When both these variables are witnessed, a country is believed to be entering into an steady state where it starts to achieve convergence with other countries depending upon the fact that with whom country wants to correlate itself. (Papageorgiou and Perez-Sebastian) Economists have actually attempted to explain this concept by assuming two types of economies i.e. if two countries with same rates of investment, savings, depreciation, population growth rates and technological progress, poorer countries will tend to grow faster than the developed or r ich country. There is however a controversy over the growth models regarding the unconditional convergence especially endogenous growth models are believed to be based upon providing decreasing returns or constant returns to per capita capital. This controversy therefore makes it relatively difficult as growth theories predict convergence however; empirical studies do not tend to support this assertion with the data. Neo-classical models have also failed to find any correlation between

How does Harold's article on The Sopranos either complicate or further Essay

How does Harold's article on The Sopranos either complicate or further the arguments put forth in Garrett's text about TV Anti-Heroes and what they represent in our society - Essay Example This argument has been furthered by â€Å"A Man Never Never Land†, this is because the article postulated that the heroes of today have colossal psychological flaw; this is because they have a self-serving lies. They are normally filled with self-pity, venality, sloth, and lust. They are regarded to be self-deceiving and morally blind. Additionally, they are deemed obnoxious, unfaithful, and brash. This is supplements the argument of Garrett which that â€Å"We live in Post-World War II era†. According to Tony Soprano, the issue of morality was white and black; it was compared to Nazis vs. us. The Nazis were rated as bad people. However, in the war of today, the wrangles and conflict are ambiguous, including using torture. â€Å"A moral Never Never Land: Identifying with Tony Soprano† argued that people now have to employ morally unacceptable mechanism of fighting terrorists and the moral ambiguity is engraved in the upcoming anti-hero. Harold further explains that to add to the heroes that were heavily flawed, there are pressure from the prison system, big business, bureaucracy, and the structure of power that is full of bribe in conforming to forces that are not good. Rather they have rebelled against themselves, even if using the trickery a nd dishonesty could be portrayed as heroic. â€Å"A moral Never Never Land: Identifying with Tony Soprano† further argues that there is confidence crisis in the democratic leaders and processes that created a surrounding of nihilistic, disaffected, and cynical hero. This turning point during the Morally Deformed Hero Regime, happened with â€Å"A moral Never Never Land: Identifying with Tony Soprano†, when millions of people loved him. The ruthless sociopath and businessperson became close that the moral boundaries blurred in the regime of the hyper-competitive Darwinism. In the docket, both Nazis and Us failed in effecting the change in