Consider the human capital growth model. Let us make the following changes. Depending on whether the...
Consider the human capital growth model. Let us make the following changes. Depending on whether the current calendar year is an odd or even number, the efficiency parameter of the human capital accumulation technology changes between 5.15 and 2.04. In particular, when the calendar year is an odd number (for example in years 1 and 3) the parameter b is 5.15 and z is 6. However, in even years (for example in years 2 and 4) the parameter is 2.04 and z is 3. Also, let us assume that in each odd year u = 0.8 and in each even year u = 0.5. Let the human capital level at the beginning of period 1 be H1 = 1. Each consumer has one unit of time which can be allocated between work and accumulating human capital.
1. After how many years will the consumption double? [10 points]
Please provide COMPLETE solutions, with numbers.
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Consider the human capital growth model. Let us make the
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