n the endogenous growth model, suppose that there are three possible uses of time. Let u = the fraction of time spent working s = fraction of time spent neither working nor accumulating human capital (unemployment) 1 – u – s = fraction of time spent accumulating human capital If z = 1, b = 5, and the economy begins in period 1 with 100 units of human capital, find the values of Y, H, and Y’ for each of the scenarios below. In this model, does the scenario with the greater human capital accumulation lead to the highest per capita income (Yes/No)? u s H Y H' Y' .7 .05 100 .6 .15 100 .6 .05 100 .5 .10 100 Does the scenario with the greater human capital accumulation lead to the highest per capita income (Yes/No)?
n the endogenous growth model, suppose that there are three possible uses of time. Let
u = the fraction of time spent working
s = fraction of time spent neither working nor accumulating human capital (
1 – u – s = fraction of time spent accumulating human capital
If z = 1, b = 5, and the economy begins in period 1 with 100 units of human capital, find the values of Y, H, and Y’ for each of the scenarios below.
In this model, does the scenario with the greater human capital accumulation lead to the highest per capita income (Yes/No)?
u s H Y H' Y'
.7 .05 100
.6 .15 100
.6 .05 100
.5 .10 100
Does the scenario with the greater human capital accumulation lead to the highest per capita income (Yes/No)?
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