Question
Consider the following model combining the Solow model and the Romer model: = 1 +1 = + = = bar Assume initially that = 0,
Consider the following model combining the Solow model and the Romer model:
= 1
+1 =
+ =
= bar
Assume initially that = 0, 0 = 1 , bar = 0.02, = 0.00001, = 10,000, the depreciation rate = 0.1 , =0, 0 = 500,000.
What is the formula for the growth rate of consumption per person?
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Microeconomics
Authors: Roger A Arnold
13th Edition
1337617407, 9781337617406
