What will be the growth rate of per capita income

Assignment Help Econometrics

Reference no: EM13203736

Consider Romer's model of endogenous growth.
a). Suppose first that the production function is as follows:

where f = 0.1 and f = 0.
Using the equation in the text, what will be the growth rate of per capita income? In such a situation, under what circumstances might per capita income growth be increased?

b). Suppose instead that with the same production function f = 0.1 and f= 1.1. Once again using the equation in the text, what will be the growth rate of per capita income?

Reference no: EM13203736

Questions Cloud

What is its effective annual percent growth rate : An investment grows by 21% over a 6-year period. What is its effective annual percent growth rate?

Find the probability that the second marble is green : A jar contains 12 blue marbles and 20 green marbles, two marbles are picked in sequence from the jar. Find the probability that the second marble is green, given that the first marble is blue. (Assume that the first marble is not replaced).

Find the probability that takes time to complete the test : The standard deviation is 5 minutes. If a randomly selected freshman takes the exam,?nd the probability that he or she takes more than 32 minutes to complete the test.

What is the estimated speed of a car : What is the estimated speed of a car that left a skid mark of 110 feet? Round your answer to the nearest mph.

What will be the growth rate of per capita income : Consider Romer's model of endogenous growth. a). Suppose first that the production function is as follows: where f = 0.1 and f = 0. Using the equation in the text, what will be the growth rate of per capita income. what will be the growth rate of per..

How many bags must he add to each side in order to balance : Suppose that he must add the same number of bags to each side. How many bags must he add to each side in order to balance the scale?

How tall is the flagpole : a flagpole is secured on opposite sides by two guy wires, each of which is 5 ft longer than the pole. The distance between the points where the wires are fixed to the ground is equal to the length of one guys wire. How tall is the flagpole (to the..

Effective annual percentage cost of funds : What would be the effective annual percentage cost of funds raised by this action and One way of getting the needed funds would be to forgo the discount, and the firm's owner believes she could delay payment to 40 days without adverse effects

Find the local linearization of the function : Consider the equation X^9+x-2.01=0. You will be asked in part (c) below to use local linearization to approximate a solution by hand.

User Account

All Pages