Exercise 14.16. (1) Prove Proposition 14.4, in particular verifying that the allocation described there is unique, that the average growth rate is given by g∗ = ln ληL∗ R and that condition (14.27) is necessary and sufficient for the existence of the equilibrium described in the proposition. (2) Explain why the growth rate features ln λ rather than λ − 1 as in the model of Section 14.1.