What is the effect of a 10% difference in discount factor

Assignment Help Econometrics

Reference no: EM131139765

Consider a world consisting of a collection of closed neoclassical economies. Each country j has access to the same neoclassical production technology and admits a representative household with preferences

dt. Characterize the cross-country differences in income per capita in this world economy. What is the effect of a 10% difference in discount factor (e.g., a difference between a discount rate of 0.02 versus 0.022) on steady-state per capita income differences? [Hint: use the fact that the capital share of income is about 1/3.]

Reference no: EM131139765

Questions Cloud

Is bureaucracy a good management approach for scott : Scott Ballantyne has just been appointed the new manager of the Alvernia Bookstore. Scott would like to make sure the store operates according to Weber’s bureaucracy model. Is the bureaucracy a good management approach for Scott to follow?

What is the dollar gross margin earned by turnadot : Quentin's current ratio on December 31, 2004 is:- What was Quentin's retained earnings balance on December 31, 2003?

About ourselves as products to be marketed : In Career Focus: A Personal Job Search Guide, Martucci Lamarre (2006) suggests that if we want to realize our job dreams, we need to think about ourselves as products to be marketed, and in order to do this, we need to contextualize ourselves within ..

Define the first step of research in your own words : Identify the first step in the student's guide to research. Define the first step of research in your own words.

What is the effect of a 10% difference in discount factor : Characterize the cross-country differences in income per capita in this world economy. What is the effect of a 10% difference in discount factor (e.g., a difference between a discount rate of 0.02 versus 0.022) on steady-state per capita income di..

Discuss maimonides conception of creation and prophecy : Aquinas on the Self evidence of God and the provability of God. Does Aquinas consider the existence of God self-evident? why or why not? is the existence of God provable for Aquinas? why or why not?

Managed care has greatly impacted healthcare delivery : Managed care has greatly impacted healthcare delivery in America, and your lecture for this week covers this fact quite well. Managed care remains a subject of great debate in our nation, with some patients being quite satisfied with their HMO or PPO..

Healthcare evolving over the decade ahead : Computers have changed just about everything in the way that we provide, document, and manage healthcare in America. Discuss some of the primary uses of information technology in healthcare organizations today. Provide specific examples of such appli..

Discuss the differences between groups and teams : Let's discuss the differences between groups and teams. How do we convert a group to a team? What benefits might come from this conversion in a business environment?

User Account

All Pages