Capital Deepening and Labor Inputs.

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jyk026

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Can someone help answer these questions for me?
1.) Since capital deepening is the increase in the Capital to Labor Ratio (K/L) resulting from increased investments in physical capital than is it implicitly assumed that (K/L) increases from capital deepening only change the numerator? (e.g., if L decreased in the denominator, for example from less hours worked, than the increase in the capital to labor ratio would not be from capital deepening?)
2.) for the Labor Input in the Cobb-Douglas, I know it’s calculated as L = Labor Force x Avg. Hours Worked per worker, but I also saw that the Growth Rate of L = Growth Rate of the Population + Rate of Net Migration. Is it safe to say that L = Population + Net Migration?
2.A) Also, It seemed like from the exhibits the former equation for L was calculated for Advanced economies while the latter equation was calculated for Developing economies. Can anyone clarify?
 
… I feel like I’m so off with this post that no one even wants to answer =(
 
jyk026 wrote:Can someone help answer these questions for me?
1.) Since capital deepening is the increase in the Capital to Labor Ratio (K/L) resulting from increased investments in physical capital than is it implicitly assumed that (K/L) increases from capital deepening only change the numerator? (e.g., if L decreased in the denominator, for example from less hours worked, than the increase in the capital to labor ratio would not be from capital deepening?)?
Click to expand...
Capital deepening is defined as an increase in the capital-to-labor ratio. This can happen if capital increases and labor is unchanged, if labor decreases and capital is unchanged, if they both increase but capital increases by a greater percentage, and other combinations.
jyk026 wrote:2.) for the Labor Input in the Cobb-Douglas, I know it’s calculated as L = Labor Force x Avg. Hours Worked per worker, but I also saw that the Growth Rate of L = Growth Rate of the Population + Rate of Net Migration. Is it safe to say that L = Population + Net Migration?
Click to expand...
I don’t see anything explicit about that, but it seems reasonable.
jyk026 wrote:2.A) Also, It seemed like from the exhibits the former equation for L was calculated for Advanced economies while the latter equation was calculated for Developing economies. Can anyone clarify?
Click to expand...
Net migration is mentioned as a factor in developed (not developing) economies.
 
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