System Parameters | Production | Consumption | ||
Symbol | Value | Symbol | Value | |
Total factor productivity | A1 | 1 | A2 | 1 |
Unit cost of capital | wK1 | 10 | wK2 | 3 |
Unit cost of labor | wL1 | 3 | wL2 | 1 |
Output elasticity of capital | α1 | 0.6 | α2 | 0.2 |
Output elasticity of labor | β1 | 0.4 | β2 | 0.8 |