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.
Could I have the second questions answered as well:
For the production function Y = K1/3L2/3
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(a) find the function for output per capita
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(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!
Given information:
Y = K1/3L2/3 ---------> Production function.
Where Y is output; K is capital; L is labor
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Growth rate of K is gK
Growth rate of L is n
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Let's assume there are three variables, Z, X and Y
gz is growth rate of Z
gx is growth rate of X
gy is growth rate of Y
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Z = XY
In terms of growth rate
=> gz = gx + gy
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Z=X/Y
In terms of growth rate
=> gz = gx - gy
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Z = XaYb.
In terms of growth rate
=> gz = a*gx + b*gy
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