Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / An economy has the per-worker production function y = k 1/3 where y is output per worker and k is capital per worker
An economy has the per-worker production function y = k 1/3 where y is output per worker and k is capital per worker. Capital accumulation follows: ?k = sy − (n + δ)k The saving rate s is 0.2, the depreciation rate δ is 0.04, and the population growth rate n is 0.01.
e. Suppose the economy is not in the steady state. Derive the growth rate of capital per worker ( k? k ) along the transition path as a function of k, s, n and δ. Under what condition is k? k positive? What is the relationship between k? k and k?
Already member? Sign In
