consider the generalized Romer model where the fishing-out effect and the decreasing returns to research are allowed. suppose the number of researchers grows 5% each year and labor-augmenting technology level grows 1% each year. then, there exists an upper limit for the fishing-out effect in steady state. evaluate whether is true, false or uncertain and why?

consider the generalized Romer model where the fishing-out effect and the decreasing returns to research are allowed. suppose the number of researchers grows 5% each year and labor-augmenting technology level grows 1% each year. then, there exists an upper limit for the fishing-out effect in steady state. evaluate whether is true, false or uncertain and why?

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter1: Introducing The Economic Way Of Thinking

Section: Chapter Questions

Problem 18SQ

See similar textbooks

Similar questions

In the Schumpeterian model, a higher level of technology A) Makes new discoveries less probable in any given period of time B)Makes new discoveries more probable in any given period of time C) Increases the growth rate of income, but not capital per worker D)Does not affect the probability of new discoveries in any given period of time
In the Romer model, if an economy's share of researchers decreases, there will be A) an immediate decrease in output and output growth will slow. B) an immediate increase in output and output growth will slow. C) an immediate increase in output and output growth will accelerate. D) an immediate decrease in output and output growth will accelerate. E) no change in output but output growth will slow.
Please see attached image.
Please answer qu. 1 & 2
Consider the path of output per person over time in the Romer model shown below, where the y-axis is the natural log of output per person (which is equivalent to using a ratio scale on the vertical axis). population Output per Person ideas efficiency parameter 3.5 3 2.5 0.5 O share of labor engaged in production saving rate O growth rate of the population 0 0 2 ——————- 4 Time At time t = 3, the change in the trajectory of this economy can be explained by a change in one of the parameters of the Romer model, namely an increase in 6 8 10 Pa
Consider the basic neoclassical growth model with technological change and CRRA preferences (8.49). Explain why θ > 1 ensures that the transversality condition is always satisfied.
Suppose the parameters of the Romer model take the following values: A = 100 = 0.05, Z = 1/100, and I = 1,000. What is the growth rate of this country's economy? 10 percent O 40 percent O 0.02 percent O 50 percent O 0.10 percent
Ricardo’s economic growth model can be recognized as an endogenous model. True or False
Owl model juvenile survival Subadult survival adult survival adult birth rate n 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 0.18 0.71 0.94 0.33 j_n 900 858 924 906 888 874 859 845 831 818 804 791 778 765 753 741 728 716 705 693 682 671 660 649 0 0 0 0 0 0 0 s_n 500 162 154 166 163 160 157 155 152 150 147 145 142 140 138 136 133 131 129 127 125 123 121 119 117 0 OOO OO 0 0 0 0 0 a_n 2600 2799 2746 2691 2648 2605 2562 2520 2478 2438 2398 2358 2320 2282 2244 2207 2171 2136 2100 2066 2032 1999 1966 total 1400 1020 1078 1072 1051 1034 1017 1000 984 968 952 936 921 906 891 876 862 848 834 820 807 793 780 767 117 0 0 0 OOOO 0 0 0 (j_n+1)/(j_n) new population with old Growth Growth Factor factor juveniles #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.9533333333 0.9533333333 0.324 1.076538462 1.076538462 0.9533333333 0.9810932476 0.9810932476 1.076538462 0.9799305191 0.9799305191 0.9810932476 0.9838671302 0.9838671302 0.9799305191 0.9837434526 0.9837434526…
The Romer model focuses on the production of (non-rival) ideas. We have assumed the production function for ideas to be À = A(1 – l)L
1
Based on two period model: population growth results in a decrease in the relative amount allocated to the second period and a lower present value of the marginal user cost. True or False?