Growth without diminishing productivity of capital suppose that the production function is Y=AK.
a. What is the condition for the growth rate of capital per worker, ?what does the s*(y/k) curve look like?
b. What are the growth rates of capital and output per worker? Are these growth rates greater than zero? do these growth rates decline during a transition?
c. Discuss how your results relate to diminishing productivity of capital. Is it plausible that diminishing productivity would not apply?