Population growth in the AK model. Consider the AK model in which we do not normalize the
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Population growth in the AK model. Consider the AK model in which we do not normalize the size of the labor force to one.
(a) Using the production function in equation (9.5) and the standard capital accumulation equation, show that the growth rate of output depends on L.
(b) What happens if L is growing at some constant rate n?
(c) Specify the form of the externality in equation (9.4) differently to avoid this implication.
(d) Does labor affect production?
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Related Book For 
Introduction To Economic Growth
ISBN: 9780393919172
3rd Edition
Authors: Charles I. Jones, Dietrich Vollrath
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