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Stating all required assumptions

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Reference no: EM132401829

(a) Show, stating all required assumptions, that the growth rate of efficiency in any economy can be calculated as (where z = Z/L)

gA= gy - agk - cgz

(b) Show that the result in part (a) above implies that the growth rate of efficiency in Malthusian economies over the long run is given by

gA = cgN

where c is the share of land rents in all incomes, and gN is the population growth rate.

Reference no: EM132401829

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