Homework Answers
Add Answer to:
Consider the endogenous growth model, where the future period quantity of human capital is a function...
2 Endogenous Growth Theory (5 marks) In the AK model with production function Y = AK....
2 Endogenous Growth Theory (5 marks) In the AK model with production function Y = AK. Assume g- is fixed. The saving rate is s and the depreciate rate of capital of. = 0 and p a. What is the growth rate of capital (K) and output (Y)? b. Under what conditions can the economy experience perpetual (positive) growth? c. What is the key factor that drives the perpetual growth? Explain the intuition. (hint: compare the AK model with the...
Consider the human capital growth model. Let us make the following changes. Depending on whether the...
Consider the human capital growth model. Let us make the following changes. Depending on whether the current calendar year is an odd or even number, the efficiency parameter of the human capital accumulation technology changes between 5.15 and 2.04. In particular, when the calendar year is an odd number (for example in years 1 and 3) the parameter b is 5.15 and z is 6. However, in even years (for example in years 2 and 4) the parameter is 2.04...
Consider a version of the Solow model where the population growth rate is 0.05. There is...
Consider a version of the Solow model where the population growth rate is 0.05. There is no technological progress. Capital depreciates at rate ? each period and a fraction ? of income is invested in physical capital every period. Assume that the production function is given by: ?t = ?t1/2 ?t1/2 where ?t is output, ?t is capital and ?t is labour. a. Derive an expression for the accumulation of capital per worker in this economy, i.e. ∆?t+1 where ?t...
Consider the Solow growth model with the following production function where y is output. K is ca...
A and B only
Consider the Solow growth model with the following production function where y is output. K is capital, s is the productivity and is labor. Assume that 0 < α < 1 Further, suppose that labor grows at a constant rate n. That is. 1 + n. Also, assume that capital depreciates at rate d and that gross investment in capital is fraction s of output. a Letting k-N, obtain the law of motion for capital accumulation...
Consider the Solow growth model, with the production function given by where L = 1 in...
Consider the Solow growth model, with the production function given by where L = 1 in all cases (a) Using the data below, which country has the highest, and lowest, steady-state capital stock and output? Be sure to show your calculations here. (b) Given the predictions of the Solow growth model, what is likely driving your answer? (Consider the roles of A, alpha, s and d here!) Table 5.1 A s d α China 0.79 0.32 0.05 0.35 Hungary 0.95...
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...
Consider a version of the Solow model where population grows at rate n
Q1)Consider a version of the Solow model where population grows at rate n. Assume that technology is Cobb-Douglas so that output is given by Yt = KtαLt(1−α).Capital depreciates at rate δ and a fraction s of income is invested in physical capital every period.A. Write down an expression describing capital accumulation in this economy and solve for the steady-state levels of capital and output per worker. Illustrate your answer in a diagram.B. How is steady-state capital per worker affected by...
3. a) Consider the following model for the demand function: Where Q Quantity demanded P price e e...
3. a) Consider the following model for the demand function: Where Q Quantity demanded P price e exponent, and U is the population error term i) Name at least one additional independent variable which may influence a. i) Linearize the above model by taking logs. b) Consider the following reciprocal regression model (sample): Y = b1 + b2(1/%) + ei 2 where bi and b2 are positive. i) What happens to Y as X increases? Show the relationship between Y...
Problem 1 Consider the following two-period utility maximization problem. This utility function belongs to the CRRA...
Problem 1 Consider the following two-period utility maximization problem. This utility function belongs to the CRRA (Constant Relative Risk Aversion) class of functions which can be thought of as generalized logarithmic functions. An agent lives for two periods and in both receives some positive income. subject to +6+1 4+1 = 3+1 + (1 + r) ar+1 where a > 0,13 € (0, 1) and r>-1. (a) Rewrite the budget constraints into a single lifetime budget constraint and set up the...
1. (45 points) Consider the closed-economy one-period macroeconomic model developed in class. The...
1. (45 points) Consider the closed-economy one-period macroeconomic model developed in class. The consumer is endowed with h units of time, and chooses consumption C and leisure ` to maximize U = log(C) + θlog(`), subject to the budget constraint C = wNs + π. Production is described by Y = zNd . Government spending G is financed with a proportional revenue tax (tax rate τ ) on the firm. (a) (10) Find the firm’s optimal demand for labor Nd...
2 Endogenous Growth Theory (5 marks) In the AK model with production function Y = AK. Assume g- is fixed. The saving rate is s and the depreciate rate of capital of. = 0 and p a. What is the growth rate of capital (K) and output (Y)? b. Under what conditions can the economy experience perpetual (positive) growth? c. What is the key factor that drives the perpetual growth? Explain the intuition. (hint: compare the AK model with the...
A and B only
Consider the Solow growth model with the following production function where y is output. K is capital, s is the productivity and is labor. Assume that 0 < α < 1 Further, suppose that labor grows at a constant rate n. That is. 1 + n. Also, assume that capital depreciates at rate d and that gross investment in capital is fraction s of output. a Letting k-N, obtain the law of motion for capital accumulation...
3. a) Consider the following model for the demand function: Where Q Quantity demanded P price e exponent, and U is the population error term i) Name at least one additional independent variable which may influence a. i) Linearize the above model by taking logs. b) Consider the following reciprocal regression model (sample): Y = b1 + b2(1/%) + ei 2 where bi and b2 are positive. i) What happens to Y as X increases? Show the relationship between Y...
Problem 1 Consider the following two-period utility maximization problem. This utility function belongs to the CRRA (Constant Relative Risk Aversion) class of functions which can be thought of as generalized logarithmic functions. An agent lives for two periods and in both receives some positive income. subject to +6+1 4+1 = 3+1 + (1 + r) ar+1 where a > 0,13 € (0, 1) and r>-1. (a) Rewrite the budget constraints into a single lifetime budget constraint and set up the...
Most questions answered within 3 hours.
-
Access control is an important function in data security.
Specifically, tell me why access control is...
asked 3 minutes ago -
In the "Go" button add 15 random numbers in the array using a
random number generator....
asked 5 minutes ago -
5. Draw Molecular Orbital Diagrams for C2, C2 and C2. a. Determine the bond order for...
asked 3 years ago -
The emergency room at Hospital Systems, Inc (HIS) serves
patients who arrive according to
a Poisson...
asked 17 minutes ago -
The chickens at Colonel Thompson's Ranch have a mean weight of
1850 g, with a standard...
asked 30 minutes ago -
The time married men with children spend on child care averages
5.9 hours per week (Time,...
asked 35 minutes ago -
There are many minerals which contain sliver. One of them,
smithite, is placed in water and...
asked 33 minutes ago -
22.3 g of fructose, C6H12O6,
are dissolved completely in 75.5 mL of pure water at 20.0...
asked 57 minutes ago -
Two bankrobbers are standing side by side, trying to push open
the door of a safe...
asked 58 minutes ago -
2. You want to buy a house. You can make an initial payment of
$200,000 and...
asked 54 minutes ago -
Why study the ‘Economic environment’ of a country? Describe the
information you will be collecting in...
asked 45 minutes ago -
A chandelier with mass m is suspended from a cable with mass M
from the ceiling....
asked 55 minutes ago