Factor-Eliminating Technical Change: Appendix
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چکیده
We note that we must have A because is the marginal value of labor and labors marginal product has a lower bound of A because the primitive technology a = 0 always is available. If we had an interior solution, all these rst-order functions would be set equal to zero, and we would solve the resulting simultaneous system for , , and the values of all the La and Ka. However, we cannot have such an interior solution, for almost all the FOCs must be satis ed as inequalities. To see this, consider the pair of FOCs for any technology a > 0 that is active:
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تاریخ انتشار 2011