Why does the varieties model of technological change from, Econometrics

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Why does the varieties model of technological change from

Scale effects

a. Why does the varieties model of technological change from section 6.1 exhibit a scale effect in the sense that the growth rate rises with the aggregate quantity of labor, L? Is it reasonable to identify L empirically with a country's population?

b. What happens in this model if population, L, grows at a constant positive rate?

c. What types of modifications to the model would eliminate the scale effects?

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