Write down important assumptions of solow growth model

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Given a Cobb- Douglas production function (follow the Appendix 3.2 to the chapter for further detail and practice)

Y (t) = K(t)α L(t) 1-α

where K (t) and L (t) are capital and labor respectively at time t. Assume population growth n and capital depreciation δ.

1. Write down important assumptions of Solow growth model

2. What is the steady state capital per capita, k*, and explain about it.

Reference no: EM131242389

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