Can this economy generate overaccumulation

Assignment Help Econometrics

Reference no: EM131139727

Consider again the canonical OLG model with log preferences and a Cobb-Douglas production function, but assume that individuals now work in both periods of their lives.

(a) Define a competitive equilibrium and the steady-state equilibrium.

(b) Characterize the steady-state equilibrium and the transitional dynamics in this economy.

Reference no: EM131139727

Questions Cloud

Characterize the dynamic equilibrium of this economy : Consider the OLG model with warm glow preferences in Section 9.6, and suppose that preferences are given by c(t)ηb(t)1-η, with η ∈ (0, 1), instead of (9.21). The production side is the same as in Section 9.6. Characterize the dynamic equilibrium of..

What current policies relate to this issue : What current policies relate to this issue, How you'd like to see the policy change, or what policy you'd like to see enacted and What agency or groups have the ability to influence the establishment of this policy?

What is the interest deduction for bob for the 2012 tax year : Bob filed a single return for the 2012 tax year. His adjusted gross income is $80,000. He had net investment income of $9,000.- What is the interest deduction for Bob for the 2012 tax year?

Peter drucker notion of effectiveness : Rita Jenkins, president of a local Chamber of Commerce, had difficulty getting members to assist in running the organization. She felt it was because of lack of commitment to the Chamber. Her vice-president felt it was due to having too many meetings..

Can this economy generate overaccumulation : Characterize the steady-state equilibrium and the transitional dynamics in this economy.

Calculate various financial and operating ratios : Calculate and interpret various financial and operating ratios used in business. Use technology and information resources to research issues in accounting management.

Responsible for developing risk register : You are responsible for developing a risk register that will be used to evaluate risks in a bank. The bank has discovered that the ATM teller is not providing the correct amounts on the customers register receipts at the window. The amounts are off b..

Define a competitive equilibrium : Consider the canonical model with log preferences, log(c1(t)) + β log(c2(t)), and the general neoclassical technology F(K, L) satisfying Assumptions 1 and 2 (see Chapter 2). Show that multiple steady-state equilibria are possible in this economy.

Write response using conflict style facework to address : Required a 210 words response using the conflict style facework to address this conflict. The school year calendar has been published, and the annual Winter School Assembly has been listed as the Christmas Program. Some Muslim and Jewish constitue..

User Account

All Pages