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Unformatted text preview: 3.Establishment of rural (and urban) social security system Justin Lin Comparative Advantage following development strategy Isoquant vs. Isoquant cuvers Capital vs. Labor Conclusion: Justin Lin and Rodrik disagree completely with development strategy.China in fact is using both. Neoclassical growth model Cobb-Douglass production function Y=AK^(beta)L^(alpha) Three assumptions Assume you can summarize of economic, existence of aggregate production function Has this particular functional formal Alpha and beta are constant 0<alpha<1 0<beta<1 1.Notes a. diminishing returns to k,L dy/dl=At*Kt^beta*AlphaLt=alpha*Yt/Lt09...
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- Fall '08