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Identical production function

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Reference no: EM131541466

Countries A and B are identical with identical production function, investment and depreciation rates. Initially, both have identical population growth rate of zero, and both are at steady-state. Country A decides to allow a 10% in-migration of worker every year while Country B allows only a one-time 10% in-migration. Explain how the change in the immigration policy of each country impact on the steady-state of each country and explain why.

Reference no: EM131541466

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