Oct 02, 2017 term paper 2

CONSIDER THE ENDOGENOUS GROWTH MODEL WITH A PUBLIC INPUT AS DESCRIBED IN THE TEXT WITH THE…

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Consider the endogenous growth model with a public input as described in the text with the parameter values A = 1, L = 1, ß = 0:95, and s = 1. Solve for the growth rate of consumption as a function of α and graph for various values of α. What is the effect of increasing α? Comment on your findings.


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