Solve for output-per-person in the basic Romer model. Critically assess the effect that technological

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Solve for output-per-person in the basic Romer model. Critically assess the effect that technological
advancement could have on the balanced growth path and provide the intuition for your results.
Consider the household problem in a benchmark two-period OLG framework. Using the following
functional form for the utility function
𝑈(𝑐ଵ௧, 𝑐ଶ௧ାଵ) = ln(𝑐ଵ௧) + 𝛽𝑐ଶ௧ାଵ
derive the level of savings, consumption when young and consumption when old. Critically assess the effect that a change in labour productivity could have on household’s savings decision and provide the intuition for your results.
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Consider a profit maximising firm that operates in a perfectly competitive market. The firm uses a constant return to scale Cobb-Douglas production function with three inputs into production: Physical capital: 𝐾, labour: 𝐿, and human capital: 𝐻
a) Show the effect that human capital has on marginal product of capital and marginal product of labour and provide the economic intuition.
b) Using this modified model of production, explain why capital may flow from poor to rich countries Consider the Solow model with a profit maximising firm that operates in a perfectly competitive market.
Assume the following Cobb-Douglas production function
𝑌௧ = 𝐴̅𝐾௧
ଵ/ଷ𝐿௧
ଶ/