Then create an instance of the class for each value of and solve for a sequence of kt. Given kt, one can back out series for the interest rate and savings rate directly.

Consider the basic overlapping generations model we studied in lecture. We saw that the capital stock in intensive form kt satisfies the difference equation ki+1 = s[ f' ( ki + 1 ) [ f ( ke ) - kof' ( ki) ] 1+n (1) where the savings rate s(r) satisfies (1 +r) 1/0-1 s(r ) = (1 +7)1/0-1 + (1 + p) 1/0 (2) The wage and rental rate follow directly from the capital stock: re = f (k) (3) W1 = f ( ki) - kif' (ke) (4) Let f(k) = ko for a = 0.3, p = 0.1, n = 0.1. For 0 6 {1/2, 1, 2}, simulate a time series for capital from 1