Exercise 21.9. Consider the model of subsection 21.6.1 and remove the nonconvexity in the accumulation equation, (21.52), so that the human capital of the offspring of individual i is given by hi (t + 1) = ei (t) γ , for any level of ei (t) and γ ∈ (0, 1). Show that there exists a unique level of human capital to which each dynasty will converge to. Based on this result, explain the role of nonconvexities in generating multiple steady states.