Suppose, in the Solow growth model, that learning by doing is captured as a cost of installing
Question:
Suppose, in the Solow growth model, that learning by doing is captured as a cost of installing new capital. In particular, suppose that for each unit of investment, r units of goods are used up as a cost to firms.
(a) Determine how r affects the steady state quantity of capita per worker, and per capita income.
(b) Now suppose that r differs across countries. How will these countries differ in the long run? Discuss.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Because of learningbydoing we change the Solow growth model by modifying equation ...View the full answer
Answered By
Mehwish Aziz
What I have learnt in my 8 years experience of tutoring is that you really need to have a friendly relationship with your students so they can come to you with their queries without any hesitation. I am quite hardworking and I have strong work ethics. Since I had never been one of those who always top in the class and always get A* no matter what, I can understand the fear of failure and can relate with my students at so many levels. I had always been one of those who had to work really hard to get decent grades. I am forever grateful to some of the amazing teachers that I have had who made learning one, and owing to whom I was able to get some extraordinary grades and get into one of the most prestigious universities of the country. Inspired by those same teachers, I am to be like one of them - who never gives up on her students and always believe in them!
3+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
