11 The Solow Growth Model. Cobb Douglas Production Function: Deriving Output per Worker

This video explains why aggregate equations are not ideal for comparing economies and how to derive the output per worker equation. We move from aggregate production functions to per worker equations to account for differences in population size between countries. The derivation uses the Cobb-Douglas production function, dividing by labor to isolate output per worker and manipulate exponents to reveal capital per worker. This process results in the output per worker equation, showing how labor is implicitly included. Subscribe to @AxiomTutoringCourses for more economics tutorials.