Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider the canonical OLG model with log preferences and a Cobb-Douglas production function (as in Exercise 9.8).
(a) Define a competitive equilibrium.
(b) Characterize the competitive equilibrium, and derive explicit conditions under which the steady-state equilibrium is dynamically inefficient.
(c) Using plausible numbers discuss whether dynamic inefficiency can arise in "realistic" economies.
(d) Show that when there is dynamic inefficiency, it is possible to construct an unfunded social security system that creates a Pareto improvement relative to the competitive allocation.
Exercise 9.8
Consider the canonical model with log preferences, log(c1(t)) + β log(c2(t)), and the general neoclassical technology F(K, L) satisfying Assumptions 1 and 2 (see Chapter 2). Show that multiple steady-state equilibria are possible in this economy.
the origin and do not intersect the axes. The price of sushi is $10 and the price of soy milk is $2. She is spending all her income at the basket she is currently consuming, and her marginal rate of substitution of sushi for soy milk is 4. Is she ..
What are the values of the regression standard error and the R2? Find the standard error for the least-squares slope. Show your work.
Suppose the government imposes new regulations that force tire manufacturers to adopt cleaner production methods that raise the production cost by $10 per tire. WILL THE NEW REGULATIONS RAISE THE PRICE OF TIRES CAREFULLY EXPLAIN WHY OR WHY NOT.
Is there an opportunity for beneficial exchange?
hurricane delayed the cash inflows that the managers of firm metro expected from a project that being built and
What term describes what these critics are claiming is occurring with regard to U.S.-Mexican trade as a result of NAFTA? Explain your reasoning. (See page719 of the textbook.)
discuss how to construct valid tests of the hypotheses in (c), (d) and (e), and carry them out.
Suppose that an individual with income I cares about two goods, X and Y. The price of the two goods is Px and Py. The individual has the following utility function: U(X,Y) = X(2+Y)
An economic bad is something you don't want to consume, i.e. less bad is better. Define an economic bad mathematically and name one economic bad in reality. Suppose you had to consume a certain amount of a given economic bad but could pay to get r..
Danson Iron Works, Inc. manufactures angular contact ball bearings for pumps that operate in harsh environments. If the company invested $2.4 million in a process that resulted in profits of $760,000 per year for 5 years
Lori, who is risk averse, has two pieces of jewelry, each worth $400. She wants to send them to her sister in Mexico. She is concerned about the safety of shipping them. She believes that the probability that a shipped package will not arrive is q..
Do you expect union activity to increase or decrease globally? Please explain.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd