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. Consider a model of knowledge accumulation with capital. Let the capital accumulation function and new knowledge be given by Mr) = sYCt) = (1
. Consider a model of knowledge accumulation with capital. Let the capital accumulation function and new knowledge be given by Mr) = sYCt) = (1 ax)\"(1 - aL)1'\"K(t)\"(A(t)L(t))1'\" A0) = magma)\" (aLL(:))\"A(c)9 (3.) Obtain the expression for the growth rate of lmowledge, ya. (6 marks) 03) Find the time derivative of the growth rate of knowledge, 1%. (6 marks) (c) On the balanced growth path (b.g.p.). Derive an expression for A(t) and Y0) along the b.g.p. in terms of B, ax, all, y, 9, L(t),and K0). (12 made-s) (d) Based on answer (e), do ax, and a; play a role? (6 marks)
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