by Dan Mitchell | Apr 9, 2021 | Blogs, Economics
In this clip from a recent interview with Gunther Fehlinger, I explore the connection between two very important important economic concepts: Convergence and Wagner’s Law. Before launching into further discussion, let’s nail down two very important definitions....
by Dan Mitchell | Mar 8, 2021 | Big Government, Blogs, Economics
I periodically write about the importance of long-run growth and about the importance of convergence (whether poorer countries are catching up with richer countries, as suggested by theory). This is because such data, especially over decades,...
by Dan Mitchell | Sep 20, 2020 | Big Government, Blogs, Economics, Free Market
Earlier this month, as part of my ongoing series about convergence and divergence, I wrote about why South Korea has grown so much faster than Brazil. My main conclusion is that nations need decent policy to prosper, and Johan Norberg shares a similar perspective in...
by Dan Mitchell | Sep 5, 2020 | Blogs, Economics, Free Market
Traditional economics, specifically convergence theory, tells us that poor nations should grow faster than rich nations. I’m more interested, however, in why convergence often doesn’t happen, or only partially happens. And I’m extremely interested in why we often...
by Dan Mitchell | Feb 10, 2019 | Blogs, Economics, Free Market
International development experts often write about a “middle-income trap.” According to this theory, it’s not that challenging for nations to climb out of poverty, but it’s difficult for them to take the next step and become rich countries. The theory makes sense to...
