Convert the Cobb-Douglas Production $Y = \bar { A } K ^ { a } L ^ { 1 - a }$

question 76

Essay

Convert the Cobb-Douglas production $Y = \bar { A } K ^ { a } L ^ { 1 - a }$
into per capita terms. Why might we be more concerned about per capita output rather than total output when discussing the welfare impacts of economic growth?

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Definitions:

User Cost

The cost of using a product or service, taking into account factors such as depreciation, wear and tear, and opportunity cost of using the asset rather than investing the money elsewhere.

Depletable Resource

A natural resource that can be diminished by use, such as fossil fuels or minerals, which are not renewable over short time spans.

User Cost

The cost of using a good or service, including the actual price paid and other sacrifices (like time or effort).

Oil Reserves

Quantities of crude oil that are confirmed to be recoverable under current economic and operating conditions.