DIFFERENTIAL CALCULUS

Observing that Y, A, L, and K change (grow?) over time, we can take the derivative of this log-linear form. Recall that d(ln X) = dX / X which can be interpreted as the percentage change in X. dY / Y = dA / A + a * dL / L + (1-a) * dK / K . or %change Y = %change A + a * %change L + (1-a) * %change K ................
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