Question
hi i have a problem with an exercises about the growth model of Solow, first suppose the economy is the function of Solow: Y =
hi i have a problem with an exercises about the growth model of Solow, first suppose the economy is the function of Solow: Y = K^(1/2) (LA)^1/2 where Y is the Production, K stock of capital, L population and employment, a) What is the production function per worker f(k) in this economy? b)(b) use the answer to part (a) to find the value of y corresponding to the state
stationary as a function of s, n, g and . (c) Two neighboring difficulties, R and P, have the function
from previous production, but its parameters have different values. R has a rate of
savings of 28 percent and a population growth rate of 1% per year. P has
a savings rate of 10 percent and a population growth rate of 4% a
year In both difficulties, g = 0.02 and = 0.04. Find the value of y corresponding to
steady state in each country. (d) According to the equation for y * deduced in (a), what
Should a developing country do to increase its income level?
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