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Unlike Solow, Malthus did not focus on capital stock, but focused on the availability of (agricultural) land as a critical element of growth. Suppose we
Unlike Solow, Malthus did not focus on capital stock, but focused on the availability of (agricultural) land as a critical element of growth. Suppose we "Malthusize" the Solow model to include land. The Solow production function then becomes: Y = XKOL 1-0 Where X is available fertile land, K is capital, L is labor and a is between 0 and 1. if a is 1/2, given a depreciation rate of 6 and a population growth of n%, with no technological growth, the "Malthusized" Solow model will then predict that O There will be an increasing marginal return to having more fertile land A decreasing marginal return to capital O A decreasing marginal return to labor O All of the above O None of the above
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