What is the capital accumulation condition

Assignment Help Econometrics

Reference no: EM131203960

Assume that output per unit of labor is related to the capital-labor ratio by y_t = r log(k_t); and that saving is a fixed proportion, s, of output.

a. What is the capital accumulation condition?

b. Derive the equation characterizing the steady-state capital-labor ratio.

c. For the parameter values k0 = 0:5, s = 0:1, d = 0:05, n = 0, and r = 2, plot the capital-labor ratio and the consumption-labor ratio as functions of time.

d. What is the effect of an increase in r on the capital-labor ratio?

e. Repeat part c, starting the economy above the steady-state capital-labor ratio. Explain the observed growth path.

Reference no: EM131203960

Questions Cloud

Find the thévenin equivalent circuit for the network : For the network of given figure, find the Thévenin equivalent circuit for the network external to the load resistor RL.

What is the basic logic behind your opinion : What would you consider to be an effective split of the total healthcare spend among the major payors (hospitals/facilities, doctors/providers, and insurance companies)?

Compute current and previous period productivity : Compute Current period productivity and Previous period productivity. Did the worker's productivity increase, decrease, or remain the same?

What is the capital accumulation condition : Assume that output per unit of labor is related to the capital-labor ratio by yt = r log(kt); and that saving is a fixed proportion, s, of output.

What were the most compelling topics learned in this course : How did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified - What approaches could have yielded additional valuable information?

What is the voltage vc : Find the Thévenin equivalent circuit for that portion of the network to the left of the base (B) terminal. - Using the fact that IC = IE and VCE = 8 V, determine the magnitude of IE.

Challenges in measuring consumer surplus : Explain the challenges in measuring consumer surplus of a free product like major online applications, such as Facebook and Google Search.

Develop a recruitment and selection plan : Discuss legal issues the company should consider (e.g., the U.S. Equal Employment Opportunity Commission). Develop a performance appraisal system.

User Account

All Pages