A key characteristic of the production function in the endogenous growth model presented in the text is that

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The endogenous growth model presented in the text assumes constant returns to scale in human capital, meaning that a proportional increase in human capital leads to the same proportional increase in output. This is in contrast to traditional neoclassical growth models that assume decreasing returns to capital. The constant returns to scale assumption in the endogenous growth model is one factor that allows for sustained long-run growth.

A Key Characteristic of the Production Function in the Endogenous