Capital share in steady State
In a country the capital share of GDP is 4%, average growth in output is 2% per year, depreciation is 3% per year, capital output ratio is 1.5, suppose the function is cobb-doglas and the country is in steady State.
1. What is the saving rate in the initial steady State using sy= (d +n+ g
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Steady state question
The capital share of GDP is about 40 percent, the average growth in output is about2 percent per year, the depreciation rate is about 3 percent per year, and the capital–output ratiois about 1.5. Suppose that the production function is Cobb–Douglas andin a steady state.a. What must the saving rate be in the initial steady state? [Hint: Use the steady-staterelationship, sy = (δ + n + g)k.]b. What is the marginal product of capital in the initial steady state?c. Suppose...
3. LaunchPad. In the United States, the capital share of GDP is about 30 percent, the...
3. LaunchPad. In the United States, the capital share of GDP is about 30 percent, the average growth in output is about 3 percent per year, the depreciation rate is about 4 percent per year, and the capital-output ratio is about 2.5. Suppose that the production function is Cobb-Douglas and that the United States has been in a steady state. (For a discussion of the Cobb-Douglas production function, see Chapter 3.) a. What must the saving rate be in the...
In the nation of Wiknam, the capital share of GDP is 40 percent, the average growth...
In the nation of Wiknam, the capital share of GDP is 40 percent,
the average growth in output is 4 percent per year, the
depreciation rate is 6 percent per year, and the capital–output
ratio is 5. Suppose that the production function is Cobb–Douglas
and that Wiknam has been in a steady state. (For a discussion of
the Cobb–Douglas production function, see Chapter 3.)
c. Suppose that public policy alters the saving rate so
that the economy reaches the Golden...
Economic Growth II — Work It Out Question 2 In the nation of Wooknam, the capital...
Economic Growth II — Work It Out Question 2 In the nation of Wooknam, the capital share of GDP is 35 percent, the average growth in output is 3.0 percent per year, the depreciation rate is 5.0 percent per year, and the capital-output ratio is 4.5. Suppose that the production function is Cobb- Douglas and that Wooknam has been in a steady state. Round answers to two places after the decimal when necessary. a. In the initial steady state, what...
In the nation of Wooknam, the capital share of GDP is 40 percent, the average growth...
In the nation of Wooknam, the capital share of GDP is 40 percent, the average growth in output is 5.0 percent per year, the depreciation rate is 7.0 percent per year, and the capital–output ratio is 4.5. Suppose that the production function is Cobb–Douglas and that Wooknam has been in a steady state. Round answers to two places after the decimal when necessary. b. In the initial steady state, what is the marginal product of capital (MPK)?
Economic Growth II — Work It Out Question 2 In the nation of Wooknam, the capital...
Economic Growth II — Work It Out Question 2 In the nation of Wooknam, the capital share of GDP is 40 percent, the average growth in output is 3.0 percent per year, the depreciation rate is 6.5 percent per year, and the capital output ratio is 4.5. Suppose that the production function is Cobb! Douglas and that Wooknam has been in a steady state. Round answers to two places after the decimal when necessary. c. Suppose that public policy alters...
If the U.S. production function is Cobb–Douglas with capital share 0.3, output growth is 3 percent per year, depreciatio...
If the U.S. production function is Cobb–Douglas with capital share 0.3, output growth is 3 percent per year, depreciation is 4 percent per year, and the Golden Rule steady-state capital–output ratio is 4.29, to reach the Golden Rule steady state, the saving rate must be: A) 17.5 percent. B) 25 percent. C) 30 percent. D) 42.9 percent.
pls solve parts f,g,h Suppose Country X's initial capital per effective worker (K/AN) ratio is 16,...
pls solve parts f,g,h
Suppose Country X's initial capital per effective worker (K/AN) ratio is 16, while Country Z's initial capital per effective worker (KAN) ountries have the same production function: F(K, A,N) = 10K, 5(AN)05 (a) Derive the output per effective worker. The evolution of the capital stock is given by K +1 = (1 - 6)K, + I, where is the depreciation rate. (b) Derive and show that in the long-run growth model, the steady state capital per...
1. Consider a country that is initially in steady state. Suppose the saving rate increases. Moreover,...
1. Consider a country that is initially in steady state. Suppose the saving rate increases. Moreover, the population growth rate increases by 1% but the capital depreciation rate falls by 1%. According to the Solow–Swan model, the per capita capital stock increases, and the country moves to a new, higher steady state level of per capita income. Answer true, false, or uncertain. Please briefly explain your answer. 2. Consider the country of Solow, which is described by the Solow–Swan model....
Use the following table to find the steady-state values of the capital-labor ratio and output if the per-worker product...
Use the following table to find the steady-state values of the capital-labor ratio and output if the per-worker production function is yų = 2593. 0.22 0.07 s 8 n A Saving rate Depreciation rate Population growth rate Technology 0.05 k* = Steady-state capital-labor ratio = (Round your response to two decimal places.) y* = Steady-state output = . (Round your response to two decimal places.)
3. LaunchPad. In the United States, the capital share of GDP is about 30 percent, the average growth in output is about 3 percent per year, the depreciation rate is about 4 percent per year, and the capital-output ratio is about 2.5. Suppose that the production function is Cobb-Douglas and that the United States has been in a steady state. (For a discussion of the Cobb-Douglas production function, see Chapter 3.) a. What must the saving rate be in the...
In the nation of Wiknam, the capital share of GDP is 40 percent,
the average growth in output is 4 percent per year, the
depreciation rate is 6 percent per year, and the capital–output
ratio is 5. Suppose that the production function is Cobb–Douglas
and that Wiknam has been in a steady state. (For a discussion of
the Cobb–Douglas production function, see Chapter 3.)
c. Suppose that public policy alters the saving rate so
that the economy reaches the Golden...
Economic Growth II — Work It Out Question 2 In the nation of Wooknam, the capital share of GDP is 35 percent, the average growth in output is 3.0 percent per year, the depreciation rate is 5.0 percent per year, and the capital-output ratio is 4.5. Suppose that the production function is Cobb- Douglas and that Wooknam has been in a steady state. Round answers to two places after the decimal when necessary. a. In the initial steady state, what...
Economic Growth II — Work It Out Question 2 In the nation of Wooknam, the capital share of GDP is 40 percent, the average growth in output is 3.0 percent per year, the depreciation rate is 6.5 percent per year, and the capital output ratio is 4.5. Suppose that the production function is Cobb! Douglas and that Wooknam has been in a steady state. Round answers to two places after the decimal when necessary. c. Suppose that public policy alters...
pls solve parts f,g,h
Suppose Country X's initial capital per effective worker (K/AN) ratio is 16, while Country Z's initial capital per effective worker (KAN) ountries have the same production function: F(K, A,N) = 10K, 5(AN)05 (a) Derive the output per effective worker. The evolution of the capital stock is given by K +1 = (1 - 6)K, + I, where is the depreciation rate. (b) Derive and show that in the long-run growth model, the steady state capital per...
Use the following table to find the steady-state values of the capital-labor ratio and output if the per-worker production function is yų = 2593. 0.22 0.07 s 8 n A Saving rate Depreciation rate Population growth rate Technology 0.05 k* = Steady-state capital-labor ratio = (Round your response to two decimal places.) y* = Steady-state output = . (Round your response to two decimal places.)
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