Also, Young's Theorem ensures that FNK FKN. Armed with these useful properties equations (4.29) and (4.30) can
Question:
Also, Young's Theorem ensures that FNK FKN. Armed with these useful properties equations (4.29) and (4.30) can be derived. First, totally differentiate FN (N, K):
dFN FNN dN + FNK dK.
But (P3) ensures that FNN —(K/N)FNK, so that
(a) can be written as:
dFN = —(K/N)FNK dN FNK dK —FNKK dN dK]
N K
(a)
ot 7eneral case where the ations (4.13)—(4.15) are iliar from Chapter 1:
(4.28)
1 — coL (c)
aKN dFN FNKK dK dN FN FN K N
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Related Book For
Foundations Of Modern Macroeconomics
ISBN: 9781264857937
1st Edition
Authors: Ben J. Heijdra, Frederick Van Der Ploeg
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