Chapter 18 - Assignment 4: Paul Romer on Economic Growth

1. Why does Romer place so much emphasis on the importance of economic growth?
2. According to this document, why has the rate of economic growth in Japan since World War II been higher than the U.S. grwoth rate? Why is this likely to decline?
3. Discuss Romer's views concerning the "limits to growth" arguments.
4. What point is Romer making with the "milk cow" example?
5. Do you feel that Romer's suggestion for reducing poverty in India is likely to be successful? Why or why not?
6. What does Romer suggest should be the direction of applied research in the U.S.?