Characterize the steady-state equilibrium

Assignment Help Econometrics

Reference no: EM131139774

Consider the discrete-time version of the neoclassical growth model. Suppose that the economy admits a representative household with log preferences (θ = 1 in terms of (8.49)) and the production function is Cobb-Douglas. Assume also that δ = 1, so that there is full depreciation. Characterize the steady-state equilibrium, and derive a difference equation that explicitly characterizes the behavior of capital stock away from the steady state.

Reference no: EM131139774

Questions Cloud

What is the purpose of the dividends account : Which of the steps in the accounting cycle are performed only at the end of the accounting period?- What is the purpose of the Dividends account and how is it increased?

Describe the three models of interoperability : Discuss why it is important for agencies to work together and share information. Outline the advantages and disadvantages for your chosen agency to integrate each of the interoperability models. Which model is most useful for your particular agenc..

What is the cost of the preferred stock including flotation : COST OF PREFERRED STOCK INCLUDING FLOTATION Trivoli Industries plans to issue perpetual preferred stock with an $11.00 dividend.- What is the cost of the preferred stock, including flotation?

How does this essay use the multidisciplinary approach : How does this essay use the multidisciplinary approach? Was the information based on the four steps? How does this essay tell us more about the family in later life?

Characterize the steady-state equilibrium : Characterize the steady-state equilibrium, and derive a difference equation that explicitly characterizes the behavior of capital stock away from the steady state.

Write the equation of the line through the given point : Write the equation of the line through the point (-3, 2) with slope m = -(2/3). Express your answer in slope-intercept form. Solve the inequality 3(2 - x) - 2 ≤ 2x - 1. Express your answer using interval notation and graph it on the real number line

Determine predetermined shop overhead rate per direct labour : The average shop direct labor rate is $30 per hour. - Determine the predetermined shop overhead rate per direct labor hour.

Style and strategy with a global reach : Read the case Harley-Davidson: Style and Strategy With a Global Reach beginning on page 445 of your text. Answer the following questions: 1.If you were CEO of Harley-Davidson, how would you compare the advantages and disadvantages of using exports, j..

Does consumption increase or decrease with this change : Analyze the comparative dynamics in response to the announcement at time T that at some future date T' > T the tax rate will decline to τ'

User Account

All Pages