For CFA level 2, it says g = theta/(1-alpha), but i cannot find the derivations for it…
How do we derive it? starting from Y= T (K)alpha(L)(1-alpha)?
For CFA level 2, it says g = theta/(1-alpha), but i cannot find the derivations for it…
How do we derive it? starting from Y= T (K)alpha(L)(1-alpha)?
Take a look at §5.2.1 in “Economic Growth and the Investment Decision”; they derive it there.