Historia

1. Catch-up: in this test is referring to the convergence processes in European countries after the World War II. It was a strong tendency for initially poorer countries to grow faster than richerones . As a result, in the early 1970s, the differences in the levels of pre-capita income were less pronounced

In this table, we see that during the Golden Age the initial lowest income levelEuropean countries (Portugal, Spain, Austria, Ireland etc.) are the ones who have relative growth performance reflected on the catch-up scope. This growth performance is based on different factors: inrelation with education there are little difference between European countries. On 1960-73 period we find in the positive side France and Germany while Spain is in the negative. In physical investment,UK have the lowest level. And in the public sector Denmark and Sweden have the lowest. Respecting to the unexplained factor that refers to certain social capability, Ireland is the less capable.The acceleration of growth results from, as the test says, changes in facilitating technology transfer and raising returns to investment. Also new changes like the trade liberalization and demandstabilization.

2. Eurosclerosis is a term appeared in the 1970s and the early 1980s to describe a European economic pattern of high unemployment and slow job creation in spite of overall economicgrowth. This was in contrast to what the United States experienced in the same period when economic expansion was accompanied by high job growth.

Olson in 1982 made a work about this tendencies andsays that democracies tend through time to accumulate interest groups that inhibit growth unless they turn into encompassing organizations. That was the case of the better growth in Sweden than in UKfor example. Also he affirmed that distributional coalitions slow down society’s capacity to adopt new technologies and reallocate resources, that in changing conditions, reduce the rate of economic...