Rate of exogenous technological progress

Reference no: EM131167602

Forms of technological progress Assume that the rate of exogenous technological progress is constant.

a. Show that a steady state can coexist with technological progress only if this progress takes a labor-augmenting form. What is the intuition for this result?

Assume that the production function is Y = F[B(T )· K, A(t)· L], where B(t) = ezt and A(T ) = ext , with z ≥ 0 and x ≥ 0. Show that if z > 0 and a steady state exists, the production function must take the Cobb-Douglas form.

Reference no: EM131167602

Questions Cloud

How might liability dollarization worsen the financial marke : How might liability dollarization worsen the financial market disruption caused by a sharp depreciation of the domestic currency against the dollar?

Absolute convergence and conditional convergence : Explain the differences among absolute convergence, conditional convergence, and a reduction in the dispersion of real per capita income across groups.

Adjustment to determine the aftertax cost of debt : Make the appropriate tax adjustment to determine the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

What is the connection of the thymus gland to this disease : Discuss how the lack of acetylcholine receptors affects muscle contraction. What is the connection of the thymus gland to this disease

Rate of exogenous technological progress : Show that a steady state can coexist with technological progress only if this progress takes a labor-augmenting form. What is the intuition for this result?

Discuss the implications of agency that apply in situation : Discuss the implications of agency that apply in this situation, and describe at least one way the company may be able to cancel or return the order in question.

What is the projected dividend for next year : a) What is the projected dividend for next year? b) What is the current value of the stock using the Constant Growth Model of the Dividend Discount Model?

Portfolio expected return : You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 11 percent. If your goal is to create a portfolio with an expected return of 12.4 percent, how m..

Find confidence interval for the relevant population : Does this interval estimate suggest that there has been a change in the proportion of students who graduate within four years? Why or why not?

User Account

All Pages