Why Capital does not Flow from Rich to Emerging Countries?We assume that the production function in country i is112Yi = A ² k²,(1)where y, and ki are output and capital per capita, respectively, in country i, andA 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 Riby using the production function (1).(c) We consider two countries, indexed by i 1 and i 2, whose productionfunction is described by (1). Both are assumed to have the same level ofproductivity, 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 A2educational attainment is higher in country 2. Calculate the ratio R₁/R₂ under10A₁ becausethese assumptions.FX=-(e) We keep assuming y2 50y₁ but now we consider that technology in country 1is a function of technology of the more advanced country 2, i.e., A₁ = A2. Thelatter assumption captures the idea that lagging behind the technology frontier(i.e., country 2) facilitates technological progress via adoption of existing ideas.Determine the value of An so that R₁

The marginal product of capital refers to the additional output or production that is gained by…

Why Capital does not Flow from Rich to Emerging Countries? We assume that the production function in country i is 11 Yi = A² k², (1) where Yi 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 kį from R₂ 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 50y₁. Calculate the ratio R₁/R₂. (d). We koon = - A2. We assume y2 1

Why Capital does not Flow from Rich to Emerging Countries? We assume that the production function in country i is 11 Yi = A² k², (1) where Yi 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 kį from R₂ 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 50y₁. Calculate the ratio R₁/R₂. (d). We koon = - A2. We assume y2 1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Could I have the second questions answered as well: For the production function Y = K1/3L2/3 (a) find the function for output per capita (b) What is the growth rate of per capita for this function in terms of the growth rate of K, gK, and the growth rate of L, n. Thanks!
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