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3 Growth and Ideas 3.1 An increase in the initial stock of knowledge Suppose we have two economiesEarth and Marsthat are identical, except that one

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3 Growth and Ideas 3.1 An increase in the initial stock of knowledge Suppose we have two economiesEarth and Marsthat are identical, except that one begins with a stock of ideas that is twice as large as the other: Earth Mars The two economies are so far apart that they do not share ideas, and each evolves as a separate Romer economy. On a single graph (with ratio scae), plot the behavior of per capita GDP on Earth and Mars over time. Per capita GDP 1600 800 400 200 100 Time What is the eect of starting out with more Knowledge

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