Consider a version of the standard Solow model in continuous time. The solution for the time...
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Consider a version of the standard Solow model in continuous time. The solution for the time path of capital per effective unit of labor is given by k(t) = {(k*)¹-a + [k(0)¹1-a (k*)¹-a].e-(¹-a)(n+g+8)t} 1-a Describe the time path of capital per effective unit of labor for k(0) < k* and k(0) > k*. Consider a version of the standard Solow model in continuous time. The solution for the time path of capital per effective unit of labor is given by k(t) = {(k*)¹-a + [k(0)¹1-a (k*)¹-a].e-(¹-a)(n+g+8)t} 1-a Describe the time path of capital per effective unit of labor for k(0) < k* and k(0) > k*.
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For k0 k the time path of capital per effective unit of labor is a decreasing function of time The rate at which capital per effective unit of labor d... View the full answer
Related Book For
College Algebra Graphs and Models
ISBN: 978-0321845405
5th edition
Authors: Marvin L. Bittinger, Judith A. Beecher, David J. Ellenbogen, Judith A. Penna
Posted Date:
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