Show that g*c * violates the transversality condition

Show that gc violates the transversality condition

Reference no: EM131135832

Consider the expanding variety model of Section 13.1 and denote the BGP growth rates of consumption and total output by g∗C and g∗, respectively.

(a) Show that g∗C > g∗ is not feasible.

(b) Show that g∗C ∗ violates the transversality condition.

Reference no: EM131135832

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