Question: 6. Insert the expression you found above for r into the formula of Ouest ion 5 for s R and possibly rearrange for a manageable

6. Insert the expression you found above for r into the formula of Ouest ion 5 for s R• and possibly rearrange for a manageable expression, in order to find the endogenous s R along the balanced growth path traced back to parameters. (It is okay to keep 9 se in the formula; we know how g se relates to n and ¢and that it only depends on these two parameters). Show that the endogenous sR is decreasing in a and increasing ins. Compare with our results in the chapter and comment.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Foundations Macroeconomics Questions!