Why countries grow at the same rate despite different rates

Assignment Help Econometrics

Reference no: EM131135749

In the model of Section 18.2.2 with household optimization, suppose that preferences in country j are given by

where ρj differs across countries.

(a) Show that a unique steady-state world equilibrium still exists and all countries grow at the rate g.

(b) Provide an intuition for why countries grow at the same rate despite different rates of discounting.

Reference no: EM131135749

Questions Cloud

An african-american woman with a husband : You are an African-American woman with a husband and two children-a fourteen-year-old girl and an eight-year-old boy. The children plan to attend college. You are a Human Resource Manager at a local firm. You live in a mid-sized U.S. city.

Derive the wage of the worker of human capital hj : Show that an increase in g (at any t) increases wages. Derive the implications of changes in g on the returns to human capital. Contrast an increase in the returns to human capital driven by an increase in g with those discussed in Chapter 15.

How is the company implementing the strategy : How is the company implementing the strategy? Do you think they will be successful - why or why not? Again back up your thoughts with evidence.

Topic in order to create a fully-developed response : Respond in 4-5 content pages, not including title page, abstract, or references, to each question. Again, each question is submitted individually with individual title page, abstract, and references.

Why countries grow at the same rate despite different rates : Provide an intuition for why countries grow at the same rate despite different rates of discounting.

Write the given paper on business plan : Write the given Paper on Business Plan- The project will consist of a completed business plan for your real or imaginary business venture.

What is the dominant intermolecular force or bond : What is the dominant intermolecular force or bond that must be overcome in converting CO2 from a liquid to a gas? Which of the following compounds is expected to have the strongest ionic bonds?

The frequent acquisition and disposition of tourism : This Case implies that the frequent acquisition and disposition of tourism brands poses problems for information systems. Summarize what you think those problems might be. Consider all five components of an information systems.

Compute the portfolio expected return and portfolio risk : According to a Gallup Poll, the extent to which employees are engaged with their workplace varies from country to country. Gallup reports that the percentage of U.S workers engaged with their workplace is more than twice as high as the percentage of ..

User Account

All Pages