Lecture 6 14

Lecture 6 14 - α<1 X i – capital good type i A –...

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Setup – The Production Sector The economy has the following production function: ( ) = = + + + = A i i Y A Y x L x x x L Y 1 1 2 1 1 ... αα α Where: L Y Number of workers in the production sector α coefficient illustrating diminishing marginal returns (0<
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Unformatted text preview: α <1) X i – capital good type i A – Level of technology, more capital goods are being used as A increases...
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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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