So how do they get equations 10 and 11 on page 645 in eocnomics? ive been doing the algebra for like 30min and cant seem to get it
dy/y = da/a + alpha * dk/k + (1-alpha)*dl/l?
it is partial differentiation, not algebra…
they said they used equations 6,7 and 9…
ln Y = ln A + alpha * ln K + (1-alpha) ln L (makes the equation a linear equation by taking natural log).
now do partial diff
dy/y = da/A + alpha dk/k + (1-alpha)*dl/l
I know how to differentiate, I think you are misunderstanding my question. I used ‘d’ to represent delta and it has to do with another way of writing the growth rates…
sorry for the confusion