Question
1) 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
1) 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 (Y=AKL1-a) and the standard capital accumulation equation (K=sAK-"DELTA".K), show that the growth rate of output depends on L
b)What happens if L is growing at some constant rate n?
c)Specifically the form of of the externality in equation (B=AK1-a) differently to avoid this implication.
D) Does labor effect production
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Using R For Econometrics
Authors: Florian Heiss
1st Edition
1523285133, 9781523285136
