Question: Scale effects in Solow's model 1.3 In this case it is known that a growth model based on productive externalities can lead to endogenous growth

Scale effects in Solow's model

1.3• In this case it is known that a growth model based on productive externalities can lead toendogenous growth of a type

1.3 In this case it is known that a growth model based on productive externalities can lead to endogenous growth of a type where there is no need for growth in the workforce to ensure sustained growth in income per worker. Discuss plausible and less plausible aspects of this explanation of growth specifically with respect to to scale effects.

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