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Three countries, A,B and C, have the same production function: Y=F(K,L)=AK1/3L2/3 Assume all co ...
Three countries, A,B and C, have the same production function: Y=F(K,L)=AK1/3L2/3 Assume all countries have 5 percent population growth rate and 15 percent depreciation rate. Assume for all countries technology (A) is equal to 10 . Assume further that country A saves at 20 percent of output, country B saves at 30 percent of output and country C saves at 40 percent of output each year. What is the steady state level of capital per worker for country A?