Exercise 13.20. Consider the model in Section 13.3. Suppose that there are two economies with identical preferences,

Question:

Exercise 13.20. Consider the model in Section 13.3. Suppose that there are two economies with identical preferences, technology and initial conditions, except country 1 starts with population L1 (0) and country 2 starts with L2 (0) > L1 (0). Show that income per capita is always higher in country 2 than in country 1.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: