Suppose the per capita production function is y=k^0.5, where y is the per capita output/income, and k is the per capita capital. In the Solow model with technical progress, what is the extended Solow equation?
1. Suppose the per capita production function is 
, where is the per capita output/income, and is the per capita capital.
a) In the Solow model with technical progress, what is the extended Solow equation?
> Suppose population growth rate increases to n=0.2, while other parameters remain the same. Solve the capital per efficiency unit of labor and the income per efficiency unit of labor in the steady state. How are these values compared to those in part (b)?
Abdulwahab Alnawah Thu, Nov 4, 2021 8:22 PM
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
Suppose the per capita production function is y=k^0.5, where y is the per capita output/income, and k is the per capita capital. In the Solow model with technical progress, what is the extended Solow equation?
Consider a country described by the Solow model. The production function is y = 29, where...
Consider a country described by the Solow model. The production function is y = 29, where 0 <a < 1. Assume that capital depreciates at a rate 8 € (0,1). a) Write down this production function in levels instead of in per capita terms. Does it display constant returns to scale? Show it. What about if a = 1? b) Find the value of c (per capita consumption) in steady state. c) Find the level of per capita capital that...
Suppose the per-capita production function is given by y=\k, where kis capital per person and y is output per person....
Suppose the per-capita production function is given by y=\k, where kis capital per person and y is output per person. Suppose that the savings rate in this economy is 50% and capital depreciates at the rate of 25% a year. The steady-state capital-to-labor ratio is: k-1 k 2 k-4 cannot be determined from the above information.
Consider the standard continuous-time Solow model where the production function is given by F (K,...
Consider the standard continuous-time Solow model where the production function is given by F (K,AL)- BK AL (a) Is this a neoclassical production function? Explain. (b) Derive the fundamental dynamic equation in terms of per capita capital kK/I (c) Can we have sustained growth? Explain (d) Characterize the dynamics in a phase diagram of (k,k
Consider the standard continuous-time Solow model where the production function is given by F (K,AL)- BK AL (a) Is this a neoclassical production function? Explain....
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...
4. A country is described by the Solow Model, with production function y - Aki where y is Output ...
4. A country is described by the Solow Model, with production function y - Aki where y is Output per Worker (Y/L) and k is Capital per Worker (K/L). Suppose k- 400. The fraction of output invested is 50% (s-05) and the depreciation rate is 5% (6-0.05). A, the overall productivity parameter equals 1. Is the country at its steady state level of output per worker, above the steady state or below the steady state? Show how you reached your...
12. What happens with no diminishing returns? Consider a Solow model where the production function no...
12. What happens with no diminishing returns? Consider a Solow model where the production function no longer exhibits diminishing returns to capital accu- mulation. This is not particularly realistic, for reasons discussed in Chapter 4. But it is interesting to consider this case nonetheless because of what it tells us about the workings of the Solow model. Assume the production function is now Y, = AK. The rest of the model is unchanged. (a) Draw the Solow diagram in this...
Solow Growth Model D. Consider an economy with production characterized by function Y = AVKL, per...
Solow Growth Model D. Consider an economy with production characterized by function Y = AVKL, per capita output y = AVkt with rate of depreciation of capital 8, investment it = sy. = sAvky, capital transition function kt+1 - k = SAVk - Okt, where s is savings ratio. 1. Putting per capita output (income) y on the y-axis and k on the x-axis, graph the curves for depre- ciation and investment. Label steady state capital k* and steady state...
Macroeconomics Solow model with technological progress
The Solow model with technological progress.In the lecture, we talked about the Solow model with technological progress and populationgrowth. Now consider a simpler model with only technological progress. Denote thetechnology level at time \(\mathrm{t}\) by \(\mathrm{A}_{\mathrm{t}}\), and the growth rate of technology by \(\mathrm{g}_{\mathrm{A}}\). The number ofworker is constant, \(\mathrm{N}\). The production function is given by$$ Y_{t}=K_{t}^{\alpha}\left(A_{t} N\right)^{1-\alpha} $$where \(\alpha\) is a constant.(a) Define \(x_{t}=X_{t} / A_{t} N\), where \(X_{t}\) stands for all relevant aggregate variables in the model.Write down...
In the Solow model, suppose the per worker production function is y: 4 k . Suppose...
In the Solow model, suppose the per worker production function is y: 4 k . Suppose s : 009, n-o 07, and d-012. Calculate the steady-state equilibrium capital-labor ratio. k(Round to two decimal places.)
2. Consider the Solow growth model. Suppose that the production function is constant returns to scale...
2. Consider the Solow growth model. Suppose that the production function is constant returns to scale and it is explicitly given by: Y = K L l-a a. What is the level of output per capita, y, where y = Y/L? b. Individuals in this economy save s fraction of their income. If there is population growth, denoted by n, and capital depreciates at the rate of d over time, write down an equation for the evolution of capital per...
Consider a country described by the Solow model. The production function is y = 29, where 0 <a < 1. Assume that capital depreciates at a rate 8 € (0,1). a) Write down this production function in levels instead of in per capita terms. Does it display constant returns to scale? Show it. What about if a = 1? b) Find the value of c (per capita consumption) in steady state. c) Find the level of per capita capital that...
Suppose the per-capita production function is given by y=\k, where kis capital per person and y is output per person. Suppose that the savings rate in this economy is 50% and capital depreciates at the rate of 25% a year. The steady-state capital-to-labor ratio is: k-1 k 2 k-4 cannot be determined from the above information.
Consider the standard continuous-time Solow model where the production function is given by F (K,AL)- BK AL (a) Is this a neoclassical production function? Explain. (b) Derive the fundamental dynamic equation in terms of per capita capital kK/I (c) Can we have sustained growth? Explain (d) Characterize the dynamics in a phase diagram of (k,k
Consider the standard continuous-time Solow model where the production function is given by F (K,AL)- BK AL (a) Is this a neoclassical production function? Explain....
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...
4. A country is described by the Solow Model, with production function y - Aki where y is Output per Worker (Y/L) and k is Capital per Worker (K/L). Suppose k- 400. The fraction of output invested is 50% (s-05) and the depreciation rate is 5% (6-0.05). A, the overall productivity parameter equals 1. Is the country at its steady state level of output per worker, above the steady state or below the steady state? Show how you reached your...
12. What happens with no diminishing returns? Consider a Solow model where the production function no longer exhibits diminishing returns to capital accu- mulation. This is not particularly realistic, for reasons discussed in Chapter 4. But it is interesting to consider this case nonetheless because of what it tells us about the workings of the Solow model. Assume the production function is now Y, = AK. The rest of the model is unchanged. (a) Draw the Solow diagram in this...
Solow Growth Model D. Consider an economy with production characterized by function Y = AVKL, per capita output y = AVkt with rate of depreciation of capital 8, investment it = sy. = sAvky, capital transition function kt+1 - k = SAVk - Okt, where s is savings ratio. 1. Putting per capita output (income) y on the y-axis and k on the x-axis, graph the curves for depre- ciation and investment. Label steady state capital k* and steady state...
In the Solow model, suppose the per worker production function is y: 4 k . Suppose s : 009, n-o 07, and d-012. Calculate the steady-state equilibrium capital-labor ratio. k(Round to two decimal places.)
2. Consider the Solow growth model. Suppose that the production function is constant returns to scale and it is explicitly given by: Y = K L l-a a. What is the level of output per capita, y, where y = Y/L? b. Individuals in this economy save s fraction of their income. If there is population growth, denoted by n, and capital depreciates at the rate of d over time, write down an equation for the evolution of capital per...
Most questions answered within 3 hours.
-
In this assignment, you will write a minimum two-page paper that
explains the treatment of internal...
asked 40 seconds ago -
Direct marketing is also referred to as Question 50 options: 1)
one-to-one marketing. 2) business-customer marketing....
asked 3 minutes ago -
INK Ltd is grocery retailer with 103 shops around South
Australia and Tasmania. The company has...
asked 8 minutes ago -
HOW BEER IS MADE
The beer making process is an art. It takes time, patience and...
asked 9 minutes ago -
What two methods could be used to purify the dimethyl
fumarate?
Based on the 12 Principles...
asked 19 minutes ago -
Reflect upon the readings and videos as well as our Media Monday
discussion. Integrating concepts from...
asked 23 minutes ago -
1. A cylindrical capacitor with A = 0.01, B = 0.1 and a length
of 5...
asked 30 minutes ago -
Explain how taking an SGLT-2 inhibitor, along with taking
insulin leads to ketoacidosis in people who...
asked 39 minutes ago -
Show the truth table of the
gates needed to control the PISO internal FF, has a...
asked 42 minutes ago -
If X ~ N(50; 100); Determine the value of '' k '' for both
situation:
a)...
asked 1 hour ago -
In paired t-test, what's the difference between using pooled
variance and using the standard deviation of...
asked 1 hour ago -
What are the major ethical theories, and how do they apply to
the role of a...
asked 1 hour ago
> Suppose the rate of technical progress π=0.2, the population growth rate n=0.1, the capital depreciation rate δ=0.1, the savings rate s=0.3. Solve the capital per efficiency unit of labor and the income per efficiency unit of labor in the steady state
Abdulwahab Alnawah Thu, Nov 4, 2021 8:21 PM