Two fundamental sources of output growth are production capital and technological knowledge. We consider technological knowledge in the form of total-factor productivity (henceforth, "productivity") in a constant-elasticity-of-substitution (CES) production function. But capital and productivity...

Consider the discrete-time state equation and feedback control rule (1) x(t) = Fx(t-1) + Gu(t) + e(t), (2) u(t) = Px(t-1), where x is an nx1 state vector, u is an mx1 control variable, and e is an nx1 disturbance distributed NIID(0,S), F and G are nxn and nxm parameter matrices, and P is an mxn...