Lecture 3 14

Lecture 3 14 - y N K F N N N K F N Y = ⎟ ⎠ ⎞ ⎜ ⎝...

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A2: Production The economy’s aggregate production function is: Y = F(K, N) Define variables on a per-capita basis, let y=Y/N, k = K/N: Since F exhibits CRTS: ) ( 1 , , k f
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Unformatted text preview: y N K F N N N K F N Y = ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ = ⎟ ⎠ ⎞ ⎜ ⎝ ⎛ = Recall that the production function is CRTS if: λ Y=F( λ K, λ L) Thus:...
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This note was uploaded on 04/03/2011 for the course ECON 2021 taught by Professor Mok during the Spring '11 term at HKU.

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