4 Mathematical Malthusian Model This question is about determining if the Malthusian trap still exists when the production function has increasing returns to scale. Consider a slightly different production function from the one we had in the Malthusian model in class. Y₁ = F (AX, L₁) = (AX)ª (L₁)³ where A> 0 is the technological level, X>0 is the amount of land, a > 0 and 1>3 > 0. (In the slides' model, 3= 1-a. In this question, we only impose that 1 >8>0 and a > 0.) 4. Based on this question, are increasing returns to scale enough to escape the Malthusian trap and enter a state in which income per capita keeps growing?
4 Mathematical Malthusian Model This question is about determining if the Malthusian trap still exists when the production function has increasing returns to scale. Consider a slightly different production function from the one we had in the Malthusian model in class. Y₁ = F (AX, L₁) = (AX)ª (L₁)³ where A> 0 is the technological level, X>0 is the amount of land, a > 0 and 1>3 > 0. (In the slides' model, 3= 1-a. In this question, we only impose that 1 >8>0 and a > 0.) 4. Based on this question, are increasing returns to scale enough to escape the Malthusian trap and enter a state in which income per capita keeps growing?
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.8P
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Question
Transcribed Image Text:4
Mathematical Malthusian Model
This question is about determining if the Malthusian trap still exists when the production function
has increasing returns to scale.
Consider a slightly different production function from the one we had in the Malthusian model
in class.
Y₁ = F (AX, L₁) = (AX)ª (L₁)³
where A> 0 is the technological level, X>0 is the amount of land, a > 0 and 1>3 > 0. (In the
slides' model, 3= 1-a. In this question, we only impose that 1 >8>0 and a > 0.)
4. Based on this question, are increasing returns to scale enough to escape the Malthusian trap
and enter a state in which income per capita keeps growing?
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