In the Winter 2000 issue of the Journal of Economic Perspectives, Nobel laureate Robert E. Lucas Jr. predicts that the world per-capita economic growth rate will fall over the 21st century, from approximately 3.1 percent per year in 2000 to approximately 2.3 percent per year in 2100. Starting from a world per-capita GDP of $7,200 in the year 2000, this produces a per-capita GDP in the year 2100 of approximately $94,000 (in year 2000 dollars). This value is far too low (by more than a factor of 100). Further, Dr. Lucas' prediction that the world per-capita GDP growth rate will fall throughout the 21st century is also wrong.
The Intergovernmental Panel on Climate Change (IPCC), in their Third Assessment Report (TAR), predicts a maximum world per-capita GDP in the year 2100 of approximately $140,000 (in year 2000 dollars). The IPCC reports a survey of "economic literature" as providing a maximum value of approximately $110,000 (in year 2000 dollars). Both of these values are also far too low (by more than a factor of 70).
The world per-capita GDP growth rate will increase throughout the 21st century, from approximately 3% per year at the start of the century to more than 10% per year at the end of the century. This acceleration of economic growth will occur because of improvements in technology, particularly computer technology.
This bet is open to Robert E. Lucas, Jr., Herman Daly, any member of the IPCC, or any member of the economics who has published a prediction of economic growth over the 21st century.
Challenge Mark A Bahner to a bet on this prediction!