Show that income per capita is always higher in country 2, Econometrics

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Show that income per capita is always higher in country 2

Consider the model in Section 13.3. Suppose that there are two economies with identical preferences, technology, and initial conditions, except country 1 starts with population L₁(0) and country 2 starts with L₂(0)>L₁(0). Show that income per capita is always higher in country 2 than in country 1.

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Econometrics: Show that income per capita is always higher in country 2

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Econometrics: Show that income per capita is always higher in country 2

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