All answers should be handwritten. You should provide an explanation for your answers, but the answer should be kept to the point. DO NOT USE CHATGPT PLEASE

1. Contrast the role of the savings rate s in the Solow model with population and technological change, and the AK model. In particular, describe if/why the savings rate has a growth effect, a level effect, or both, in the two models. 2. Maradan and Vassiliev (2005) estimate the marginal cost of CO2 abatement (or depollution) in different countries, and present the following results: 1 Dependent variable: \" o Variables Marginal cost of COZ abatement - : ; J143 = X Log (GDP per capita) z 5 {4.34) a8 i Log (O, emissions per 118 E - capita) { 5.34) 4 B B e 15.02 406 g . o (5.13) (10.67) T2 * 2 Number of observations 76 76 g ** - 1 s F-statistic 1883 28.48 Dol # e * e T4 s Adjusted R* 0.26 0.34 a 5000 10000 15000 20000 Note: Robust standard ermors are in parenthesis. GOF per capa (WSO} (a) Focusing on the graph showing the cost of depollution against GDP per capita, what are the implications for the link between economic growth and pollution? (b) Interpret the results of the regressions shown in the table on the right. In particular, assess if the results are conclusive and mention any issue you can think of. 3. If the production function in country is given by Y; = A;(K;)*(L:)' , show that the income per capita can be rewritten as % _cay (B (Y v (x) (%) Y; L K\\ L = (A;)T-= S _'\\"j { J] ( Yt ) i\\"j where L; is the total working population and N; is the total population. Discuss the strength and weaknesses of both decompositions and decide which of the two is the best to assess the importance of TFP differences in driving cross-country income per capita differentials. ar as 4. Discuss the importance of spillovers in endogenous growth models based on learning by doing