Compute steady state value of capital - solow growth model, Mathematics

Consider the Solow growth model as given in the lecture notes using the Cobb-Douglas production function

Yt = AK1-αt Lαt

a) Set up the underlying nonlinear difference equation.

b) Compute the steady state value of capital.

c) Linearize the nonlinear difference equation around the positive steady state and determine its properties.

Posted Date: 3/23/2013 3:37:55 AM | Location : United States







Related Discussions:- Compute steady state value of capital - solow growth model, Assignment Help, Ask Question on Compute steady state value of capital - solow growth model, Get Answer, Expert's Help, Compute steady state value of capital - solow growth model Discussions

Write discussion on Compute steady state value of capital - solow growth model
Your posts are moderated
Related Questions
Three-person Problem of Points: Pascal, Fermat and their old friend the Chevalier de Mere each put $10.00 into a pot, and agree to play a game that has rounds. Each player has the

f Y is a discrete random variable with expected value E[Y ] = µ and if X = a + bY , prove that Var (X) = b2Var (Y ) .

A cylindrical vessel of diameter 14 cm and height 42 cm is fixed symmetrically inside a similar vessel of diameter 16 cm and height 42 cm. The total space between two vessels is fi

hi i would like to ask you what is the answer for [-9]=[=5] grade 7

These experiences should be related to the mathematical concepts and ideas that we teach them. Only then will these ideas appear relevant to the children, and be absorbed by them

sin^2alpha *sec^2beta +tan^2 beta *cos^2alpha=sin^2alpha+tan^2 beta

Now we have to look at rational expressions. A rational expression is a fraction wherein the numerator and/or the denominator are polynomials.  Here are some examples of rational e

a) Determine the distance traveled among t = 0 and  t =∏/2 by a particle P(x, y) whose position at time t is given by Also check your result geometrically.  (5) b) D


I have no idea how to graph exponential forms.