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Indonesia lives in a Solow world. It has a per capita production function given by y t = 656 k t^0.37 . Consider the following
Indonesia lives in a Solow world. It has a per capita production function given by y t = 656 k t^0.37 . Consider the following approximation for the capital per capita accumulation equation k t + 1 = k t + s ( z k t ) ( n + ) k t . Indonesia has an investment rate of 21.7%, a depreciation rate of 5%, and a population growth rate of 2.2%. What is the capital intensity at the steady-state?
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