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.
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