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Author Question: Explain what is meant by capital flight. How would you distinguish capital flight from the normal ... (Read 102 times)

armygirl

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on: Jun 30, 2018
Explain what is meant by capital flight. How would you distinguish capital flight from the normal desire of investors to diversify their portfolios by investing abroad?
 
  What will be an ideal response?

Question 2

What three factors distinguish models of endogenous growth from their neoclassical counterparts?
 
  What will be an ideal response?


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mrphibs

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Students should show that they understand capital flight as discussed in the chapter.

Answer to Question 2

There are increasing returns to capital investment (as opposed to decreasing), there are increasing returns to scale (as opposed to constant), and externality effects are included.


armygirl

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

mcabuhat

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Reply 3 on: Yesterday
Excellent

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