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1. Endogenous growth model in continuous time Consider the endogenous growth model based on the Ronier {1990) in continuous time. The equations of the model
1. Endogenous growth model in continuous time Consider the endogenous growth model based on the Ronier {1990) in continuous time. The equations of the model are: Y = K\"(ALy)l_"' A = pA'i'L K = sY(TK L _ = In L L = Ly-lLA LA = SRL Apart from the standard parameter restrictions assume also. 9!) > O and A g 1. (a) Show that: at an}r time, the technological growth rate: 9A E A/A, according to this model is: 9.4 = pA'lll-SRLV' Explain for each of the two cases gt) = 1 and gt:
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