So alpha is the elasticity of output with respect to capital, and (1-alpha) is the elasticity of output with respect to labor. Is that correct?
In the Cobb-Douglas model with constant returns to scale, yes.
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So alpha is the elasticity of output with respect to capital, and (1-alpha) is the elasticity of output with respect to labor. Is that correct?
In the Cobb-Douglas model with constant returns to scale, yes.