CL7 ECO 3203

CL7 ECO 3203 - Output Y Output per worker y Capital K...

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Classwork 7 Two countries (A and B) have the same production function: Y = F ( L , K ) = K 1 2 L 1 2 . Does the production function have constant returns to scale? Explain. What is the per worker production function y=f(k) ? There is no population growth or technological change in either country. Depreciation in both countries is 5%. In the steady state, at what rate do each of the following grow?
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Unformatted text preview: Output Y Output per worker y Capital K Capital per worker k If country A saves 5% of income and country B saves 10% of income, find the steady state values of capital per worker, output per worker, and consumption per worker in each country....
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This note was uploaded on 11/08/2011 for the course ECO 3203 taught by Professor Yang during the Fall '10 term at University of Central Florida.

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