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Unformatted text preview: One-Sector Model (Romer)
• Let the production function be: Y = K α ( AN )1−α
• Define in per-capita form: Reminder: A is the current level of technology y=A 1−α k α • Assume that the level of technology (stock of knowledge) is proportional to the stock of capital per worker A = λk λ >0 ...
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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.
- Spring '11