Question: Suppose we have two economies lets call them Earth and Mars that are identical, except that one begins with a stock of ideas

Suppose we have two economies €” let€™s call them Earth and Mars €” that are identical, except that one begins with a stock of ideas that is twice as large as the other:

The two economies are so far apart that they don€™t share ideas, and each evolves as a separate Romer economy. On a single graph (with a ratio scale), plot the behavior of per capita GDP on Earth and Mars over time. What is the effect of starting out with more knowledge?

AEarth = 2 x AM 0, 0.

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