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Consider the following data, which applies to Avataria and Twilightia in the years 2005 and 2021. In both countries the production function in per worker
Consider the following data, which applies to Avataria and Twilightia in the years 2005 and 2021. In both countries the production function in per worker terms is: y = A(k)\"1(h)m. 2:31:53? P::ft.';1::':f'.:" ""m::,::':i*:' Avataria 2005 3.000 15 125 2021 24.000 180 375 Twilightia 2005 5.000 8 12,800 2021 60.000 48 26,800 {a} What were the productivity levels in each country in 2005 and 2021'? (13} Which country had higher annual factor accumulation growth rate between 2005 and 2021? (Calculate these rates.) {c} Which country had higher annual productivity growth rate between 2005 and 2021? (Calculate these rates.) Consider the 2-country model of technological growth from Section 8.3 of the textbook. Suppose that the technological lender has 1,000 workers and 30% of its labor force working in the R&D sector, while the technological follower has 2.000 workers but only 15% of its workers employed in the R&D sector. The cost of innovation is pi=50, while the cost of copying is pt = lllll*(A.IA;)JJ'25. Calculate the steady-state ratio of technology in Country 1 to technology in Country 2
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