I am currently working on a growth model where I have three growth trends, namely: demographic growth (N(t)), labor-augmenting technical change (lL(t)) and energy-saving technical change (Ae(t)).
I am trying to stationnarise my model. For most of the aggregates this is straighforward: I detrend by the efficient labor N(t).Al(t), meaning that the growth rate of the variables is (gn.gal). However, what to do with a variable that has 3 trend growth? Indeed, energy is impacted by N, Al and Ae. Is it (gn.gal)/gae?
I have the following nested technology function,
Thank you in advance!