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- What do the growth accounting studies conclude are the determinants of growth? Which is more important, the determinants or how they am combined?Consider the endogenous growth model with two sectors: manufacturing firms and research universities. Which of the following affect/s the steady-state growth rate of output in this model? (i) stock of knowledge (ii) fraction of labor force in universities (iii) saving rate O a. Only (ii) O b. Only (iii) O c. Only (i) O d. (i), (ii), and (iii)Assume that a country's production function is Y = K1/2L1/2 and there is no population growthor technological change.a. What is the per-worker production function y = f (k)?b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor. What isY? What is labor productivity computed from the per-worker production function? Is thisvalue the same as labor productivity computed from the original production function?c. Assume that 10 percent of capital depreciates each year. What gross saving rate isnecessary to make the given capital–labor ratio the steady-state capital–labor ratio? (Hint:In a steady state with no population growth or technological change, the saving ratemultiplied by per-worker output must equal the depreciation rate multiplied by the capital–labor ratio.)d. If the saving rate equals the steady-state level, what is consumption per worker?
- Assume that a country's production function is Y = K1/2L1/2 and there is no population growthor technological change.a. What is the per-worker production function y = f (k)?b. Assume that the country possesses 40,000 units of capital and 10,000 units of labor. What isY? What is labor productivity computed from the per-worker production function? Is thisvalue the same as labor productivity computed from the original production function?c. Assume that 10 percent of capital depreciates each year. What gross saving rate isnecessary to make the given capital–labor ratio the steady-state capital–labor ratio? (Hint:In a steady state with no population growth or technological change, the saving ratemultiplied by per-worker output must equal the depreciation rate multiplied by the capital–labor ratio.)d. If the saving rate equals the steady-state level, what is consumption per worker? Only D, other option answeredA key assumption in an endogenous growth model with both labour and capital inputs in the production function is that Multiple Choice O о о о O the share of capital is larger than the share of labour the share of capital and labour have to be equal better technology is a byproduct of more capital investment there are no external returns to capital long-run growth comes solely from technological progressSuppose that , z the marginal product of efficiency units of labor, increases in the endogenous growth model. What effects does this have on the rates of growth and the levels of human capital, consumption, and output? Explain your results.
- Hi, can you please help me to solve this macroeconomics question. Describe the version of the endogenous growth model with capital. Explain the assumptions of the model together with the key equations describing the law of motion of the growth rates of technology and physical capital. Explain how it depends on the degree of returns to scale to technology and physical capital in knowledge production.Consider a Solow growth model with a human capital augmented production function Y, = AK" H N-a- %3D Suppose that both physical and human capital are accumulated with constant savings rates sx and Sy respectively and depreciate at the common rate 8, that is K+1 - K, = sKY, - 8K, and H1 - H, = SKY, - SH, There is no growth in productivity A or raw labor N. "Suppose A = 1, a = ß = 1/4, sx = Sn = 0.12 and ô = 0.06. Let (a) y = YIN, k = KIN and h = HIN denote output per worker, physical capital per worker, and human capital per worker respectively. Let = hlk denote the intensity of human capital relative to physical capital. Calculate y, k, h and o in steady state. (b) . output per worker of the analogous Solow model without human capital (i.e., with Y, = AK" N- and A = 1, a = 1/2, s 0.12 and ô = 0.06. Explain the differences. How does steady state output per worker in this economy compare to the steady state * I Now consider the case a = 1/4 and ß = 3/4 with all the other parameters as in…How can we measure growth over the very long run? Te poorest countries in the world have a per capita income of about $600 today. We can reason-ably assume that it is nearly impossible to live on an income below half this level (below $300). Per capita income in the United States in 2015 was about$51,000. With this information in mind, consider the following questions.(a) For how long is it possible that per capita income in the United Stateshas been growing at an average annual rate of 2% per year?(b) Some economists have argued that growth rates are mismeasured. Forexample, it may be difcult to compare per capita income today with percapita income a century ago when so many of the goods we can buy todaywere not available at any price then. Suppose the true growth rate in thepast century was 3% per year rather than 2%. What would the level of percapita income in 1800 have been in this case? Is this answer plausible?
- n the endogenous growth model, suppose that there are three possible uses of time. Let u = the fraction of time spent working s = fraction of time spent neither working nor accumulating human capital (unemployment) 1 – u – s = fraction of time spent accumulating human capital If z = 1, b = 5, and the economy begins in period 1 with 100 units of human capital, find the values of Y, H, and Y’ for each of the scenarios below. In this model, does the scenario with the greater human capital accumulation lead to the highest per capita income (Yes/No)? u s H Y H' Y' .7 .05 100 .6 .15 100 .6 .05 100 .5 .10 100 Does the scenario with the greater human capital accumulation lead to the highest per capita income (Yes/No)?PER CAPITA OUTPUT to YEAR In the Romer model in figure above, at time to, a change in the shape of the production function can be explained by an increase in the: Select one: O a. ideas efficiency parameter. O b. population. O c. saving rate. O d. share of labor engaged in research. O e. growth rate.In the Solow growth model:1. Write the expression for consumption per capita in the steady-state equilibrium, asa function of capital per capita.2. What is the golden rule quantity of capital per capita ? Specifically, tell me thedefinition of this concept, and then relate it to the equation for the equilibriumconsumption per capita whose expression answers question (1) above.23. How do we find the golden rule savings rate, once we know the golden rule quantityof capital per capita?
