n Consider a Human Capital Growth Model, where the human capital of the population evolves according to:
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider a Human Capital Growth Model, where the human capital of the population evolves according to: Hs' = 6(1 - u) H³ where b is the efficiency of human capital accumulation and u is the unit of time devoted to working each period. Firms produce output according to: Y = zu(Hd)a b= 6 z = 2 u 0.80 a = 0.5 Part A [5 Marks]: Draw a graph with H on the horizontal axis and H' on the vertical axis. Plot the 45° line and the human capital accumulation equation. Is there a steady-state level of human capital in this model? Plot it if it exists. Part B [5 Marks]: At time t = 1 H₁ = 5. Calculate H; for t = 2,3,4,5. Draw a graph with time t on the horizontal axis and H on the vertical axis. Does H grow at a zero rate, a linear, rate or an exponential rate over time? (1 sentence) Part C [5 Marks]: Calculate Ys for t = 1,2,3,4,5. Draw a graph with time t on the horizontal axis and Y on the vertical axis. Does Y grow at a zero rate, a linear rate, or an exponential rate over time? (1 sentence) Part D [10 Marks]: Assume there are two countries, A and B, with H₁ = 5 and H³ = 2.5, b₁ = bB = 6 and u₁ = UB = 0.8. Draw a graph with time t on the horizontal axis and Y on the vertical axis. Plot both countries income levels over time. Will these two countries converge to the same level of income in the long run? Why? (2-3 sentences) Consider a Human Capital Growth Model, where the human capital of the population evolves according to: Hs' = 6(1 - u) H³ where b is the efficiency of human capital accumulation and u is the unit of time devoted to working each period. Firms produce output according to: Y = zu(Hd)a b= 6 z = 2 u 0.80 a = 0.5 Part A [5 Marks]: Draw a graph with H on the horizontal axis and H' on the vertical axis. Plot the 45° line and the human capital accumulation equation. Is there a steady-state level of human capital in this model? Plot it if it exists. Part B [5 Marks]: At time t = 1 H₁ = 5. Calculate H; for t = 2,3,4,5. Draw a graph with time t on the horizontal axis and H on the vertical axis. Does H grow at a zero rate, a linear, rate or an exponential rate over time? (1 sentence) Part C [5 Marks]: Calculate Ys for t = 1,2,3,4,5. Draw a graph with time t on the horizontal axis and Y on the vertical axis. Does Y grow at a zero rate, a linear rate, or an exponential rate over time? (1 sentence) Part D [10 Marks]: Assume there are two countries, A and B, with H₁ = 5 and H³ = 2.5, b₁ = bB = 6 and u₁ = UB = 0.8. Draw a graph with time t on the horizontal axis and Y on the vertical axis. Plot both countries income levels over time. Will these two countries converge to the same level of income in the long run? Why? (2-3 sentences)
Expert Answer:
Related Book For
Chemistry The Central Science
ISBN: 978-0321696724
12th edition
Authors: Theodore Brown, Eugene LeMay, Bruce Bursten, Catherine Murphy, Patrick Woodward
Posted Date:
Students also viewed these chemistry questions
-
What is the empirical formula of cellulose? What is the unit that forms the basis of the cellulose polymer? What form of linkage joins these monomeric units?
-
What is the empirical formula of glycogen? What is the unit that forms the basis of the glycogen polymer? What form of linkage joins these monomeric units?
-
What is the empirical formula of compound A (see margin)? (a) C8H14; (b) C8HI6; (c) C8H12; (d) C4H7
-
Develop, debug, and document a program to determine the roots of a quadratic equation, ax2 + bx + c, in either a high-level language or a macro language of your choice. Use a subroutine procedure to...
-
Watkin Company is a pesticide manufacturer. Its sales declined greatly this year due to the passage of legislation outlawing the sale of several of Watkin's chemical pesticides. In the coming year,...
-
The four 1.0 g spheres shown in FIGURE P25.42 are released simultaneously and allowed to move away from each other. What is the speed of each sphere when they are very far apart? 10 nC 10 nC 1.0 cm...
-
The alternate hypothesis for a goodness-of-fit test says that some of the probabilities differ from those specified by the null hypothesis. In Exercises 11 and 12, determine whether the statement is...
-
A stream of pure cyclopentane vapor flowing at a rate of 1550 L/s at 150C and 1 atm enters a cooler in which 55% of the feed is condensed at constant pressure. (a) What is the temperature at the...
-
During 2020, Silver Corp. spent $12,000 to repair its mining equipment. Rather than debiting these costs to Repair and Maintenance Expense, Silver recorded the following journal entry: Dr. Equipment...
-
Determine the maximum load that can be allowed on the 450 mm diameter pile shown in Figure P12.9, with a factor of safety of 3. Use the a method and Table 12.11 for determining the skin friction and...
-
A certain lake is stocked with 10,000 fish. The population is growing according to the logistics 10,000 curve: p where t is measured in months since the lake was initially stocked. 1 9e 5 a. Find the...
-
In a standard Ricardian model, two countries (China and the US) produce and trade two goods (apparel and wheat). Each worker in China can produce 2 units of apparel or 5 bushels of wheat. Each worker...
-
A financial services company requires IT support. After it decides to sign a contract with a local IT company that will provide remote support, it must negotiate contract length. Provide one factor...
-
1.Describe the experimental design of the study described in "Randomizing Religion: The impact of protestant evangelism on economic outcomes" 2.What are the main outcomes measured in this study?...
-
The change in the business cycles can impact how the economy is operating. Explain how an increase in the unemployment rate would impact how businesses will operate. Analyze how economic growth can...
-
Explain cybersecurity in your own words and discuss system vulnerabilities that pose threats. Provide 2 examples of cybersecurity measures that your organization takes and evaluate their...
-
OHS auditing is a crucial process that guarantees adherence to laws and regulations concerning occupational health and safety programs. The essential components of effective audits include. Select...
-
A liquid flows upward through a valve situated in a vertical pipe. Calculate the differential pressure (kPa) between points A and B. The mean velocity of the flow is 4.1 m/s. The specific gravity of...
-
A solution contains 0.115 mol H2O and an unknown number of moles of sodium chloride. The vapor pressure of the solution at 30 oC is 25.7 torr. The vapor pressure of pure water at this temperature is...
-
Calculate the percentage of carbon by mass in each of the compounds represented by the following models: (a) (b) (c) (d) S
-
The diameter of a rubidium atom is 4.94 Ã. We will consider two different ways of placing the atoms on a surface. In arrangement A, all the atoms are lined up with one another to form a square...
-
How has the escalating role of board members and the audit committee affected corporate governance?
-
Describe regulatory influences on board members and management. What have been the effects of these influences?
-
For three organizational structure types (entrepre neurial, bureaucratic, adhocracy), briefly describe the likely characteristics of corporate governance.
Study smarter with the SolutionInn App