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Write the growth rate of output per capital Y/P in terms of growth rate of output per worker Y/N. (hint: define the population to employment ratio as dbar=1+d)
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- Why was Land Use Reform a successful policy in several Asian countries in promoting economic growth? By making public land available for farming, peasant farmers could rotate crops more easily. By making all farmland publicly owned, farmers could collectively work to maximize their yields. O By reallocating farmland for use in manufacturing, industrialization was incentivized. O By taking farmland away from landlords and giving it to peasant farmers, those farmers had an incentive to improve their yields.Why Capital does not Flow from Rich to Emerging Countries? We assume that the production function in country i is 1 1 2 Yi = A ² k², (1) where y, and ki are output and capital per capita, respectively, in country i, and A is a measure of technology in country i. (a) Calculate the marginal product of capital (MPK) denoted by Ri in country i. (b) Express the MPK in terms of output per capita, yi, i.e., eliminate ki from Ri by using the production function (1). (c) We consider two countries, indexed by i 1 and i 2, whose production function is described by (1). Both are assumed to have the same level of productivity, i.e., A₁ A2. We assume y2 50y₁. Calculate the ratio R₁/R₂. (d) We keep assuming that y2 50y1, but now we assume that A2 educational attainment is higher in country 2. Calculate the ratio R₁/R₂ under 10A₁ because these assumptions. FX = - (e) We keep assuming y2 50y₁ but now we consider that technology in country 1 is a function of technology of the more advanced country 2,…Which of the following are possible outcomes of rapid population growth? A reduction in capital per worker An increase in technological knowledge A reduction in human capital per worker All of the above
- In the Solow growth model, suppose that the per-worker production function is given by y = zk 0.4 with s = 0.15, d = 0.1, and n = 0.02. a. Suppose in country A that z= 1. Calculate the steady-state capital per worker and income per capita in country A. The steady-state capital per worker is (Round to two decimal places as needed.) The steady-state income per capita is. (Round to two decimal places as needed.) b. Suppose in country B that z = 2. Calculate the steady-state capital per worker and income per capita in country B. The steady-state capital per worker is|. (Round to two decimal places as needed.) The steady-state income per capita is (Round to two decimal places as needed.) c. As measured by GDP per capita, how much richer is country B than country A? What does this tell us about the potential differences in total factor productivity to explain differences in standards of living across countries? Country B is times richer than country A, as measured by GDP per capita. This…Assume positive population growth ( n > 0) and technological progress ( g > 0 ). Derive analytically the steady-state growth rates of output and capital, and the steady-state levels of output and capital per efficiency unit of labour. Illustrate your answer graphically and briefly discuss the economic intuition.Please summarize and do the key findings of the Reviving Growth report (WORLD BANK EAST ASIA AND THE PACIFIC ECONOMIC UPDATE APRIL 2023)
- Think of an economy with a Malthusian demographic relationship, and with a production function of Y = K^α * E^β * (AL)^ (1-α-β), and a population growth function of gL = ϴy^μ. You know what the growth rate of productivity is 0.02, the size of α is 0.16, the size of β is 0.35, that ϴ is 0.03, and that μ is 0.61. What is the steady state level of GDP per capita? Give your answer to 2 decimal places.Please answer all the questions below with a detailed and 100% correct solution.You are given the production function Y= AK H14 N 2, where A = 4. The population growth rate n is 0.025, the depreciation rate d is 0.075 (both physical and human capital depreciate at the same rate), and the growth rate of autonomous factors is zero. Investment 1 is the sum of two components, investment in physical capital Ig and investment in human capital Iµ. The fraction of GDP that goes to physical capital investment is SK = 0.05 and the fraction of GDP that goes to human capital investment is SH = 0.05. (i) Convert the production function to a function relating Y/N to both K/N and H/N. (ii) Find the steady-state physical capital-labor ratio and the steady - state human capital - labor ratio. (iii) Find the steady – state per person output. 2.
- . This part considers a modified version of the Solow growth model. Suppose the production function is given by F(K,bN) = K°(bN)1-a where b is the labour augmenting technology, which grows at a rate f, i.e., b+1 = (1+ f)b. For simplicity, assume that the total factor productivity z = 1, and the population is constant, i.e., N, = N for all t. The rest of the model is the same as in the standard Solow model in the textbook. Especially, the aggregate capital stock evolves according to Kt+1 = I4 + (1 – d)Kt. And assume that the economy is still closed, and there is no government. For any aggregate variable X, let the lower case letter a be the variable per effective unit of worker; that is a = *. Show that the production technology specified above satisfies the assumption of con- stant returns to scale.Please help me answer 6-10.In 2000 GDP per capita was 14.2, capital/output was 3.5, human capital was 3.6. In 2010 GDP per capita was 20.3, capital/output 4.8, human capital was 4.4. In both years the production function is Cobb-Douglas with a value for alpha of 0.4. What was the ratio of GDP per capita in 2010 to 2000 due *just* to the change in the capital/output ratio? Use 2 decimal places.
