Question: Fitting the model with a higher capital share: Repeat exercise 5, but this time assume the production function is given by Y = AK3/4/1/4. That

Fitting the model with a higher capital share: Repeat exercise 5, but this time assume the production function is given by Y = AK3/4/1/4. That is, assume the exponent on capital is 3/4 rather than 1/3 so that the diminishing returns to capital are less. In part (d), be sure to compare the results here with those in exercise 5, where the capital exponent was 1/3. Why do you think the results are different? Is it reasonable to assume a capital share of 3/4 in the model?

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