Throughout the Text, a Simplifying Assumption Was Made in the Production

Essay

Throughout the text, a simplifying assumption was made in the production function model of economic growth: the capital share, $\alpha$ , is set equal to one-third. But this is not necessarily the case; indeed, $\alpha$ can be any number greater than zero and less than one. Consider two economies, H and L, with different capital shares, $\alpha$ _H $\gt$ $\alpha$ _L. Which country will get more output for each unit of capital added? Explain.