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The economist Paul Romer argues the aggregate production function for the United States would be better written as 5C : KLB, where d has a
The economist Paul Romer argues the aggregate production function for the United States would be better written as 5C : KLB, where d has a value between 0.7 and 1.0 and B has a value between 0,1 and 0.3. {a} In class we discussed the productivity slowdown the US economy has experienced since the early 19705. Could Romer's production function explain this productivity slowdown? Please clearly explain. {bl Do you think the values for B would be larger or lower in developed countries compared to developing countries? Please explain
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