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Consider the following variation of the usual Solow growth model. Rather than assume that the population growth rate is a constant, suppose instead that it
Consider the following variation of the usual Solow growth model. Rather than assume that the population growth rate is a constant, suppose instead that it depends upon capital per worker (and hence upon output per worker via the production function) in the following way: n=n, ifk zk n=n, ifk m and * > 0 are given. a. Let kj be the steady-state level of capital per worker when n = n, and k, be the steady- state level of capital per worker when n = /2. Assume further that k,
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