In a country output is produced with labor and physical

Assignment Help Econometrics

Reference no: EM13378603

In a country, output is produced with labor and physical capital. The production function in per-worker terms is y=k^1/2. The depreciation rate is 2%. The investment rate (&) is determined as follows:

&=0.2 if y<=10

&=0.4 if y>10

Draw a diagram showing the steady state(s) of this model. Calculate the value of any steady state levels of k and y. Also, indicate on the diagram and describe briefly in words how the levels of y and k behave outside the steady state. Comment briefly on the stability of the steady state(s).

Reference no: EM13378603

Questions Cloud

You are the newly hired accountant for the gift shop the : you are the newly hired accountant for the gift shop. the owner has just received the december 31 2008 bank statement

Detailstoday many companies face budgetary challenges on a : detailstoday many companies face budgetary challenges on a continual basis. two critical aspects that businesses lack

1 using porters five industry forces map the soft drink : 1. using porters five industry forces map the soft drink industry.2.what are the risks and opportunities of the

Goldenrod warehouse distributes hardback books to retail : goldenrod warehouse distributes hardback books to retail stores and extends credit terms of 210 n30 to all of its

In a country output is produced with labor and physical : in a country output is produced with labor and physical capital. the production function in per-worker terms is yk12.

Leaders of a small town are tired of looking at a vacant : leaders of a small town are tired of looking at a vacant and dilapidated warehouse that sits on a prime piece of real

Country x and country y have the same level of output per : country x and country y have the same level of output per worker. they also have the same values for the rate of

Many people shy away from careers in selling often because : many people shy away from careers in selling often because they think they are not outgoing enough or because

Suppose that two countries a and b have the same rates of : suppose that two countries a and b have the same rates of investment and depreciation the same levels of productivity

User Account

All Pages