Grossmann, Volker; Steger, Thomas M. - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
with
∂F(.)
∂X
> 0 and
∂
2
F(.)
∂X
2
< 0
for all X ∈ {A,K,L}. It is further assumed that F(.) exhibits constant returns to …
7
Y = L
1−α
Y
Z
A
0
x(i)
α
di,(2)
where L
Y
is the amount of labor devoted to Y-production, x(i) is the amount of … capital
good i ∈ [0,A],and0 <α<1. In equilibrium x(i)=x for all i and hence the above
technology can be expressed as Y = L
1−α …