Friday, March 25, 2011

Surowiecki on the Solow Model

In the current New Yorker, James Surowiecki discusses the implications for Japanese growth and well-being of the Sendai earthquake. He references the same article I found on disasters and growth, which suggests that beyond the neoclassical implications (fast growth along a return to the steady state), there might be something good about being forced to replace old capital with new capital.