| absolute convergence | Tendency of both the levels and growth rates of output in
different countries to approach each other over time and for their steady-state values to be the same.
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| conditional convergence | Tendency of growth rates of output in different countries to
approach each other over time. Contrast absolute convergence.
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| increasing returns to scale | When, in a production function, doubling all of the inputs
to the production process more than doubles output.
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| social infrastructure | All the institutions and government policies that determine the economic environment.
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| stable equilibrium | An equilibrium that draws nearby variables into itself; if a variable is moved slightly away from a stable equilibrium, it will return.
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| unstable equilibrium | An equilibrium that pushes nearby variables away from itself;
if a variable is moved slightly away from an unstable equilibrium, forces will push it even further away.
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