Lecture 5 19

Lecture 5 19 - Lucas Two-Sector Growth Model Let the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Lucas Two-Sector Growth Model Let the production function be: Y = K (uH ) α 1−α Let the average human capital per capita be h (i.e. h=H/N), let the human capital production function be: Δh = λ (1 − u )h Define output per “human capital”, ~ : y λ >0 α ~ ~ = Y = ⎛ K ⎞ u1−α = u1−α k α y ⎜⎟ H ⎝H⎠ ...
View Full Document

Ask a homework question - tutors are online