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Answered Same Day Oct 31, 2021

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Rajeswari answered on Nov 02 2021

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70521 Assignment
Here we are considering the Solow growth model augmented every time t with two types of physical capital namely machines: M_t≥0 and robots: R_t≥0. The aggregate output at every time t given by Y_t is produced according to the Co
_Douglas aggregate production function.
Here epsilon lies between 0 and 1 and represents the output elasticity with respect to the aggregate stock of machines and Lt represents the human population always >0, A, theta represent the productivity parameters.
a) Consider a time t where there are no machines. Here M_t =0. Then production function becomes
Thus when Machine hours are zero there is no production possible as production varies directly with machine hours.
Consider when robot hours are 0.
Then now aggregate out put becomes
)
Labour input is appearing in the...

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