Consider two countries, A and B. In both the countries, the production function is given by a Cobb-Douglas technology: , where and are physical capital and labour. Further, in both countries, the growth rate of labor force is 0.1 per period, physical capital depreciates at the rate 0.1 per period, and . The saving rates differ between countries: in country A and in country B. Then, the steady state level of capital-labor ratio () in the two countries will be:
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