Question
Assume an endogenous growth model with labour augmenting technology. The production function is Y = F(K,AN), where A = a(K/N) such that y = ak.
Assume an endogenous growth model with labour augmenting technology. The production function is Y = F(K,AN), where A = a(K/N) such that y = ak. If the savings rate is s = 0.1, the rate of population growth is n = 0.04, and the depreciation rate is d = 0.02, how much would "a" have to be to achieve a 12% growth rate of output?
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
5th edition
73375829, 978-0073375823
