ZuoTi.Pro
Question

Suppose the production function is given by yt=kt1/2  where y is the output per worker and k...

Suppose the production function is given by yt=kt1/2  where y is the output per worker and k is the capital per worker. Assume that the saving rate (S) is exogenous and the capital depreciates at δ rate. If the sum of both the depreciation rate and saving rate equals 1. Furthermore, assume that S=3δ.

The steady state output is

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

At steady 12 tate Sk Sk 112 sy = Sh SR 3SR - 3 = kl2 k= (3)² = 9 = Sk

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose the production function is given by yt=kt1/2  where y is the output per worker and k...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • supposed the production function is given by yt=kt1/2 where y is the output per worker and...

    supposed the production function is given by yt=kt1/2 where y is the output per worker and k is the capital per worker. assume that the saving rate (s) is exogenous and the capital depreciates at S rate. If the sum of both is depreciation rate and the saving rate equals 1. Furthermore, assume that s=3S The steady state output a)9 b)2.25 c)3 d)0.75

  • 3. If the production function is given by y=k:13 where yt where yt is the output...

    3. If the production function is given by y=k:13 where yt where yt is the output per worker and kt is the capital per worker. Suppose that the saving rate (s) equals the depreciation rate (8) plus 0.4. Find the steady state capital, output, investment, and consumption? Hint: all steady state values are functions of either (s) or (8)

  • Suppose a country’s has the following production function: yt = kt1/4, where k and y denote...

    Suppose a country’s has the following production function: yt = kt1/4, where k and y denote capital and output respectively. The capital depreciation rate is fixed at ? = 0.1 each period, i.e., kt+1 = kt ? 0.1kt + skt1/4, where s > 0 represents the saving rate. (a) Calculate the steady state of capital and output: k? =?y? =? (b) Is this steady states stable? (c) Suppose there are only two usages of output, con- sumption and saving(investment), i.e.,...

  • Suppose the production function is given by ? = ?^a?'^1-a, where Y is output; K is...

    Suppose the production function is given by ? = ?^a?'^1-a, where Y is output; K is capital stock and N is Labor (look Appendix in Chapter 16). a. Is this production function characterized by constant return to scale? How? Show the work. b. Write this production function as a relationship between output per worker and capital per worker. c. If saving (S) equals investment (I), and S = sY, where s is saving rate, what is the corresponding investment per...

  • 2. that the production function is given by: Suppose where Yis output, K is capital and...

    2. that the production function is given by: Suppose where Yis output, K is capital and N is the number of workers. The steady-state level of capital per worker, in terms of the saving rate, s., and the depreciation rate, ,s KIN(Enter your response as an expression.) YIN=□ (Enter your response as an expression.) CIN=□ (Enter your response as an expression ) The steady-state level of output per worker, in terms of the saving rate, s, and the depreciation rate,...

  • Suppose that an economy has the per-worker production function given as: y = 4k., where y...

    Suppose that an economy has the per-worker production function given as: y = 4k., where y is output per worker and k is capital per worker. In addition, national savings is given as: S, = 0.10Y, where S is national savings and Y is total output. The depreciation rate is d = 0.10 and the population growth rate is n = 0.10. The steady-state value of the capital-labor ratio, kis 4.00. The steady-state value of output per worker, y is...

  • An economy has the per-worker production Y = 3k^.5 Where y is output per worker and...

    An economy has the per-worker production Y = 3k^.5 Where y is output per worker and k is the capital to labor ratio. The depreciation rate is 0.1, and the population growth rate is 0.05 Total saving is S=0.3Y S is total saving and Y is total output a. What are the steady state values of the capital to labor ratio, output per worker, and consumption? b. Repeat part (a) for saving rate of 0.4. c. Repeat part (a) for...

  • 0.5 , where y is output per worker and k Suppose that an economy has the...

    0.5 , where y is output per worker and k Suppose that an economy has the per-worker production function given as: Y = 5k is capital per worker. In addition, national savings is given as: S = 0.1074, where S is national savings and Y is total output. The depreciation rate is d = 0.10 and the population growth rate is n = 0.10 The steady-state value of the capital-labor ratio, k is 6.25. The steady-state value of output per...

  • Consider an economy such that Output per worker: yt = 2k0.5 Capital per worker: kt Depreciation...

    Consider an economy such that Output per worker: yt = 2k0.5 Capital per worker: kt Depreciation rate: 8 = 0.4 Saving rate: s = 0.2 Evolution of capital per worker: kt+1- kt = syt - Skt In the steady state, capital per worker does not change over time Let k* denote the steady state level of capital per worker Question 1.In the steady state, capital per worker is a)8 b)4 c)2 d)1 Question 2.Which one of the following statements is...

  • 1. Suppose that output per worker is given by yt - kf, where kt is the...

    1. Suppose that output per worker is given by yt - kf, where kt is the capital stock per worker at year t and 1/3. Workers invest 15% of their income. The capital stock depreciates at the rate of 10% per year. The size of the capital stock per worker at year t 0 is ko 10 According to the Solow model, what is the predicted growth rate of output per worker between years 0 and 1. (Assume zero population...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT