Show that the differential equation for consumption growth

Reference no: EM131135892

(a) Prove Proposition 10.1.

(b) Show that the differential equation for consumption growth alternatively could have been written as

Proposition 10.1

In the neoclassical growth model with physical and human capital investments described above, the optimal path of physical capital and consumption are given as in the one-sector neoclassical growth model and satisfy the following two differential equations:

Reference no: EM131135892

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