Consider the Cobb-Douglas production function $Y _ { t } = A _ { t } K _ { t } ^ { a } L _ { t } ^ { 1 - a }$
.
(a) Write this in growth-rate terms.
(b) Next, define this in terms of per capita growth and identify the contributions of the components of per capita growth.
(c) If the growth rate of capital per worker is 1.3 percent, the labor composition growth rate is 0.4 percent, TFP growth is 1.2 percent, and $a = 1 / 2$ , what is the growth rate of output per worker? If $a = 1 / 3$ ?

Question

Consider the Cobb-Douglas production function $Y _ { t } = A _ { t } K _ { t } ^ { a } L _ { t } ^ { 1 - a }$ 
.
(a) Write this in growth-rate terms.
(b) Next, define this in terms of per capita growth and identify the contributions of the components of per capita growth.
(c) If the growth rate of capital per worker is 1.3 percent, the labor composition growth rate is 0.4 percent, TFP growth is 1.2 percent, and $a = 1 / 2$  , what is the growth rate of output per worker? If $a = 1 / 3$  ?

Quizplus · Accepted Answer

The Answer of Consider the Cobb-Douglas production function $Y _ { t } = A _ { t } K _ { t } ^ { a } L _ { t } ^ { 1 - a }$ 
.
(a) Write this in growth-rate terms.
(b) Next, define this in terms of per capita growth and identify the contributions of the components of per capita growth.
(c) If the growth rate of capital per worker is 1.3 percent, the labor composition growth rate is 0.4 percent, TFP growth is 1.2 percent, and $a = 1 / 2$  , what is the growth rate of output per worker? If $a = 1 / 3$  ?

Consider the Cobb-Douglas Production Function Yt=AtKtaLt1−aY _ { t } = A _ { t } K _ { t } ^ { a } L _ { t } ^ { 1 - a }Yt​=At​Kta​Lt1−a​

Consider the Cobb-Douglas Production Function $Y _ { t } = A _ { t } K _ { t } ^ { a } L _ { t } ^ { 1 - a }$