Reference no: EM131273998
Assume a production function that takes a CobbDouglas form in capital K, labour L, and land C:
Yt = AtKtαLβ t Cλ,
where technology grows at a constant rate, γA > 0, α > 0, β > 0, λ > 0, L > 0, and α+β +λ = 1. The amount of land, C, is xed. Labour grows at the constant rate n > 0, capital depreciates at rate δ > 0, and the saving rate is exogenously given at the level of s. Answer these questions:
(a) Write the law of motion for capital dynamics.
(b) Determine the steady state.
(c) What is the long-run growth rate of capital, capital per unit of labour and capital per eective labour? Are corresponding growth rates for labour the same?
(d) How do these results compare to those of Solow-Swan model without land?
|
Plan a financial strategy to get rid of the war
: Plan a financial strategy to get rid of the war. Please put different points through financial angles.
|
|
How to distinguish between a fixture and personal property
: Describe how to distinguish between a fixture and personal property, using support from your text and one APUS Library source. Identify any issues that may arise between a renter and landlord or buyer and seller during a real estate transaction (i..
|
|
Discuss best possible way company you selected could expand
: Discuss best possible way company you selected could expand its market globally. Discuss best possible pricing strategy based on whether company you selected is retailer, manufacturer, or service firm. Explain your rationale.
|
|
Discuss how company you selected might benefit from selling
: From the e-Activity, discuss how the company you selected might benefit from selling new customers on e-Bay (as opposed to building and maintaining its own Website).
|
|
What is the long-run growth rate of capital
: (a) Write the law of motion for capital dynamics. (b) Determine the steady state. (c) What is the long-run growth rate of capital, capital per unit of labour and capital per eective labour? Are corresponding growth rates for labour the same?
|
|
What are the benefits of using im in business communication
: From the point of view of consumer surplus and producer surplus, what problem was created when Thailand subsidized the cost of energy to consumers to help alleviate the burden of higher energy costs?
|
|
Discuss the costs and benefits for latvia
: 1. Discuss the costs and benefits for Latvia following the transitioning from a planned to a market economy. 2. Critically evaluate the economic imbalances that Latvia's economy experienced ad recommended the policy options that could have been ado..
|
|
What are the responsibilities of top management and leaders
: What are the responsibilities of top management and leaders in relation to corporate governance and strategic planning? What are the benefits of strategic management?
|
|
Discuss the costs and benefits for latvia
: 1. Discuss the costs and benefits for Latvia following the transitioning from a planned to a market economy. 2. Critically evaluate the economic imbalances that Latvia's economy experienced ad recommended the policy options that could have been ad..
|