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1. State Kaldor's stylized facts (4 of them). Derive their implications for the share of national income paid to the owners of capital, the capital income share. Assume firms combine capital and labor to produce output according to Y = K^(a)*N^(1-a) where a is the elasticity of output to capital, i.e. the percentage change in output for a given percentage change in capital. What type of data would be informative of the value of this elasticity? Explain your answer and any assumptions you may need to reach your conclusion.

1. State Kaldor's stylized facts (4 of them). Derive their implications for the share of national income paid to the owners of capital, the capital income share. Assume firms combine capital and labor to produce output according to Y = K^(a)*N^(1-a) where a is the elasticity of output to capital, i.e. the percentage change in output for a given percentage change in capital. What type of data would be informative of the value of this elasticity? Explain your answer and any assumptions you may need to reach your conclusion.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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1. State Kaldor's stylized facts (4 of them). Derive their implications for the share of national income paid to the owners of capital, the capital income share. Assume firms combine capital and labor to produce output according to Y = K^(a)*N^(1-a) where a is the elasticity of output to capital, i.e. the percentage change in output for a given percentage change in capital. What type of data would be informative of the value of this elasticity? Explain your answer and any assumptions you may need to reach your conclusion.

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