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[J] This Solow model with labour augmenting technology can be tested empirically with cross-country data if we assume that all countries are in their steady
[J] This Solow model with labour augmenting technology can be tested empirically with cross-country data if we assume that all countries are in their steady states. Derive a log-linear regression equation {using discrete time} for output per worker that you could estimate using IDLE assuming you haye measures for sips; ,5' .11" for each country i and that g and A0 are known constants across countries. where A, = AeiFr . {i} If we exclude human capital from the model i.e. q:- = D then what is the interpretation of the model. {ii} if a: = as = 1K3 then what is the elasticity of output per worker in the steady state {y*} with respect to sit. {iii} what is the role of sHin the determination of output per worker in the steady state {y*} as compared to the Solow model with exogenous technology. {iv} how does population growth rate affects the output per worker in the steady state (y'i as compared to the Solow model with exogenous technology
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