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Suppose that output is growing at 3 percent per year and the elasticities of output with respect to capital and labour are 0.3 and 0.7,
- Suppose that output is growing at 3 percent per year and the elasticities of output with respect to capital and labour are 0.3 and 0.7, respectively.
- If both capital and labour grow at 1 percent per year, what would the growth rate of total factor productivity have to be?
- What if both the labour and the capital stocks are fixed?
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Basic Econometrics
Authors: Damodar N. Gujrati, Dawn C. Porter
5th edition
73375772, 73375779, 978-0073375779
