Firms are competitive and have access to the same technology F.The equilibrium rental rate of capital and the equilibrium wage rate are thus given by =Fk(K,1),w,=F(K,1)→ F(K,l)-δx=F(K,l)-δh→Uniquex again Because the private and the social return to each type of capital coincide,the competitive market allocations coincide with the Pareto optimal plan. 电子科大经管学院马捷 16
Firms are competitive and have access to the same technology F . The equilibrium rental rate of capital and the equilibrium wage rate are thus given by Because the private and the social return to each type of capital coincide, the competitive market allocations coincide with the Pareto optimal plan. 电子科大经管学院 马捷 16 ( ,1) ( ,1) Unique again ( ,1), ( ,1) * k t k h t h t k t t h t F F r F w F
Learning by Doing -Output for firm m is given by Y"=F(K",h L") h,represents the aggregate level of human capital or knowledge.It is endogenously determined in the economy (as we will specify in a moment how)but it is exogenous from the perspective of either firms or households. 电子科大经管学院马捷 17
Learning by Doing Output for firm m is given by h t represents the aggregate level of human capital or knowledge. It is endogenously determined in the economy (as we will specify in a moment how) but it is exogenous from the perspective of either firms or households. 电子科大经管学院 马捷 17 ( , ) m t t m t m Yt F K h L