申論題

1 Solow growth model (25 points) Consider a Solow growth model with exogenous technological growth but no population growth. Let N denote the number of fixed labor supply in each period. Suppose that output is produced according to the constant return to scale production function, where Z_t, and Kt, denote respectively the labor-augmenting productivity, and capital in period t. In addition, Zt evolves according to The law of motion for capital stock is. The aggregate consumption Ct equals a constant fraction, I - s, of aggregate production, , and the aggregate investment equals the remaining fraction s of aggregate production,

1 (5 points) Define st as output per effective worker, i.e., and k as capital per effiective worker, i.e, . Uise the constant return to scale production function to express the relationship between y and k.