Lecture 3: Solow Model II Handout
|
|
- Christal Patrick
- 5 years ago
- Views:
Transcription
1 Economics 202a, Fall 1998 Lecure 3: Solow Model II Handou Basics: Y = F(K,A ) da d d d dk d = ga = n = sy K The model soluion, for he general producion funcion y =ƒ(k ): dk d = sƒ(k ) (n + g + )k y* = ƒ(k*) Y * y * K * k * K * = z* = k * Y * y * Y * y * K * k * The model soluion, for he specific producion funcion y =k : K = k s = z Y y = n+ g + + K 0 s 1)(n +g + ) e( Y 0 n + g + Y Y ( ) 1 z z ( ) 1 y = ( z ) 1 There are sill oher hings ha we wan o look a: for example, he real wage. If we assume ha facors of producion are paid heir marginal producs, hen he real wage a any ime is:
2 w = d(f(k, A L )) = A dl ƒ(k ) K ƒ'(k L ) r = d(f(k,al )) = ƒ'(k dk ) w +r K ƒ(k ) = Y As i should from consan reurns o scale. An alernaive way o wrie he real wage is: w [ƒ(k ) k ƒ'(k )] r = ƒ'(k ) which makes i more clear ha he real wage is growing a rae g, and he real reurn o capial is consan in seady-sae growh. If we resric our aenion o Cobb-Douglas producion funcions, hen: w [ƒ(k ) k ƒ'(k )] [k k k 1 ] w = (1 )A k = (1 )A z 1 r = ƒ'(k ) = k 1 = z 1 In oher wor, a share α of oupu is going o capial--and is evenly spli as he reurn o capial. A share 1 α of oupu is going o labor--and is evenly spli as well. And now le s look a wha happens when we change he parameers of he model: I. A change in he savings rae s: Le s ake α =.5; n=g=.01; δ=.03; s sars a.15 and jumps o.20. Sar a ime zero wih A 0 =L 0 =1... Our seady-sae growh pah hen jumps from z* = 3, wih Y growing a.02 per year, o z* = 4, wih Y growing a.02 percen per year--a 33.3% boos o seady-sae capial per effecive worker, and a 33.3% boos o oupu per effecive worker. How fas does his economy converge o is seady sae? (1- α)(n+g+δ) =.025 equals 2.5 percen per year. So he 1/e ime--he ime afer he ime 0 jump in he savings rae for he capial-oupu raio o close he gap o is new seady-sae value o 1/e of is iniial value--is 40 years.
3 Capial-Oupu Raio: Convergence 5 Capial-Oupu Raio Time
4 Convergence of Oupu per Worker o Seady Sae Oupu Time
5 Consumpion Per Worker 9 8 Consumpion per Worker Time
6 Upward Shif in Savings Rae s*ƒ(k), (n+g+d)k k Level effec bu no a growh effec... Does consumpion rise when he savings rae rises? Answer: a he beginning, cerainly no. Evenually--i depen. Consumpion per effecive worker along a seady-sae growh pah: c* = y*(1-s) = y* - (n+g+δ)k* Wha happens if we differeniae c*(s, n, g, δ) as a funcion of he model parameers wih respec o he savings rae s? dc * = d ƒ(k*) d (n + g + )k * dc * dc * = ƒ'(k*) dk * (n + g + ) dk * = ƒ'(k*) (n + g + ) [ ] dk *
7 where, as I said before, he derivaives are aken undersanding he seady-sae values o be funcions of he model parameers. For he sign of he effec of an increase in he savings rae on seady-sae consumpion, we can ignore he las erm. I will be posiive. Wheher he whole righ-hand side is posiive depen on comparing ƒ (k*) o (n+g+δ)--depen on wheher he marginal produc of capial a he seady sae (for ha is wha ƒ (k*) is) is greaer or less han he sum: (n+g+δ). I can go eiher way. If ƒ (k*) < (n+g+δ), hen he economy is called dynamically inefficien--consumpion could be raised a all fuure daes by lowering saving oday. If ƒ (k) = (n+g+δ), he economy is said o be a he Golden Rule,which we will alk abou more laer on. Can we ge any furher in evaluaing he effec of an increase in savings on seady-sae consumpion? We can if we assume ha he producion funcion is Cobb-Douglas. In inensive form, hen: y* = k * = (z * y*) y * y * = z * s y* = (z*) 1 = n + g + 1 And seady-sae consumpion per effecive worker: s c* = (1 s) n + g + 1 So consumpion per worker along he seady-sae growh pah is: C * s = A L (1 s) n + g + 1 And he derivaive of c*, aken o be a funcion of he parameers of he model, wih respec o s is: dc * = s n + g + 1 This will be posiive if and only if: 1 + (1 s) 1 1 S > 0 s < α + 1 s (1 s) n + g + n + g This gives you a definie es. And i ells you ha: When s is sufficienly low, increases in s increase seady-sae consumpion.
8 When s his he magic number of he capial share α, you are a he Golden Rule. When s is higher, increases in s decrease seady-sae consumpion and he economy is dynamically inefficien. Increases in α increase he level of s a which he economy becomes dynamically inefficien. II. A change in he populaion growh rae n: Le s ake α = 1/3; n=g=.01; δ=.03; s =.25.; and suppose suddenly n drops o 0 Sar a ime zero wih A 0 =L 0 =1... Our seady-sae growh pah hen jumps from z* = 5, wih Y growing a.02 per year, o z* = 6.25, wih Y growing a.02 percen per year--a 25% boos o seady-sae capial per effecive worker, and an 11.8% boos o seady-sae oupu per effecive worker. How fas does his economy converge o is seady sae? (1- α)(n+g+δ) = equals 2.67 percen per year. So he 1/e ime--he ime afer he ime 0 jump in he savings rae for he capial-oupu raio o close he gap o is new seady-sae value o 1/e of is iniial value--is 37.5 years.
9 Speed of convergence II Le me noe equaion (1.25) on page 22 of Romer s Advanced Macroeconomics: in he viciniy of he balanced growh pah, capial per uni of effecive labor converges oward k* a a speed proporional o is disance from k*... [wih] λ = (1-α k )(n+g+δ). Why develop his when we already have our exac soluion for z? Because our soluion for z is only for he Cobb-Douglas case. Wha Romer produces is much more general: ha if he economy is near is seady-sae growh pah, is convergence behavior is nearly he same as Cobb-Douglas. The Solow Model and he Cenral Quesions of Growh Theory We ahve seen ha only growh in he effeciveness of labor can lead o permanen growh in oupu per worker, and ha for reasonable caes he impac of changes in capial per worker on oupu per worker is modes. Thus only differences in he effeciveness of labor have any reasonable hope--in his framework--of accouning for vas differences in wealh across ime and space. If he reurns ha capial comman in he markes are a rough guide o is conribuions o oupu, hen variaions in he accumulaion of physical capial do no accoun for a significan par of eiher worldwide economic growh or cross-counry income differenials. differences in savings raes oo small o accoun for cross-secion differences in raes of reurn on capial observed in he world are no large enough for capial play a big role: a en-fold difference in oupu per worker arising from differences in capial per worker implies a hundredfold difference in he (gross) marginal produc of capial. he Solow model does no idenify wha he effeciveness of labor is. Growh accouning: d d ln Y = d k () d ln K + R() Convergence: if he A s are he same (or become he same), and if s s are similar, han counries should become more alike. Felein-Horioka: does i sill hold? Mankiw, Romer, and Weil--implied α of 0.60 for heir economies in cross-secion (neglecing reverse causaliy). II. Classical and NeoClassical Growh Models Thursday Jan 22: The Solow Growh Model Lecure 2 handous: Solow model and problem se 1
10 David Romer, Advanced Macroeconomics, pp Rober Solow (1956), "A Conribuion o he Theory of Economic Growh," Quarerly Journal of Economics 70 (February), pp {Yes} Tuesday Jan 27: The Solow Growh Model II David Romer, Advanced Macroeconomics, pp Rober Solow (1957), "Technical Change and he Aggregae Producion Funcion," Review of Economics and Saisics 39: pp {Yes} Thursday Jan 29: The Solow Growh Model III J. Bradford De Long (1988), "Produciviy Growh, Convergence, and Welfare: Commen" {Yes} Marin Felein and Charles Horioka (1980), "Domesic Saving and Inernaional Capial Flows," Economic Journal 90 (June): pp {Yes} Xavier Sala-i-Marin (1997), "I Jus Ran Four Million Regressions" (NBER working paper 6252). {Yes}
( ) (, ) F K L = F, Y K N N N N. 8. Economic growth 8.1. Production function: Capital as production factor
8. Economic growh 8.. Producion funcion: Capial as producion facor Y = α N Y (, ) = F K N Diminishing marginal produciviy of capial and labor: (, ) F K L F K 2 ( K, L) K 2 (, ) F K L F L 2 ( K, L) L 2
More informationThe general Solow model
The general Solow model Back o a closed economy In he basic Solow model: no growh in GDP per worker in seady sae This conradics he empirics for he Wesern world (sylized fac #5) In he general Solow model:
More informationSuggested Solutions to Assignment 4 (REQUIRED) Submisson Deadline and Location: March 27 in Class
EC 450 Advanced Macroeconomics Insrucor: Sharif F Khan Deparmen of Economics Wilfrid Laurier Universiy Winer 2008 Suggesed Soluions o Assignmen 4 (REQUIRED) Submisson Deadline and Locaion: March 27 in
More informationSolutions Problem Set 3 Macro II (14.452)
Soluions Problem Se 3 Macro II (14.452) Francisco A. Gallego 04/27/2005 1 Q heory of invesmen in coninuous ime and no uncerainy Consider he in nie horizon model of a rm facing adjusmen coss o invesmen.
More informationProblem Set on Differential Equations
Problem Se on Differenial Equaions 1. Solve he following differenial equaions (a) x () = e x (), x () = 3/ 4. (b) x () = e x (), x (1) =. (c) xe () = + (1 x ()) e, x () =.. (An asse marke model). Le p()
More informationMacroeconomics I, UPF Professor Antonio Ciccone SOLUTIONS PROBLEM SET 1
Macroeconomics I, UPF Professor Anonio Ciccone SOUTIONS PROBEM SET. (from Romer Advanced Macroeconomics Chaper ) Basic properies of growh raes which will be used over and over again. Use he fac ha he growh
More informationFinal Exam Advanced Macroeconomics I
Advanced Macroeconomics I WS 00/ Final Exam Advanced Macroeconomics I February 8, 0 Quesion (5%) An economy produces oupu according o α α Y = K (AL) of which a fracion s is invesed. echnology A is exogenous
More informationThe Brock-Mirman Stochastic Growth Model
c December 3, 208, Chrisopher D. Carroll BrockMirman The Brock-Mirman Sochasic Growh Model Brock and Mirman (972) provided he firs opimizing growh model wih unpredicable (sochasic) shocks. The social planner
More informationCooperative Ph.D. Program in School of Economic Sciences and Finance QUALIFYING EXAMINATION IN MACROECONOMICS. August 8, :45 a.m. to 1:00 p.m.
Cooperaive Ph.D. Program in School of Economic Sciences and Finance QUALIFYING EXAMINATION IN MACROECONOMICS Augus 8, 213 8:45 a.m. o 1: p.m. THERE ARE FIVE QUESTIONS ANSWER ANY FOUR OUT OF FIVE PROBLEMS.
More informationExplaining Total Factor Productivity. Ulrich Kohli University of Geneva December 2015
Explaining Toal Facor Produciviy Ulrich Kohli Universiy of Geneva December 2015 Needed: A Theory of Toal Facor Produciviy Edward C. Presco (1998) 2 1. Inroducion Toal Facor Produciviy (TFP) has become
More informationFinal Exam. Tuesday, December hours
San Francisco Sae Universiy Michael Bar ECON 560 Fall 03 Final Exam Tuesday, December 7 hours Name: Insrucions. This is closed book, closed noes exam.. No calculaors of any kind are allowed. 3. Show all
More informationT. J. HOLMES AND T. J. KEHOE INTERNATIONAL TRADE AND PAYMENTS THEORY FALL 2011 EXAMINATION
ECON 841 T. J. HOLMES AND T. J. KEHOE INTERNATIONAL TRADE AND PAYMENTS THEORY FALL 211 EXAMINATION This exam has wo pars. Each par has wo quesions. Please answer one of he wo quesions in each par for a
More informationThe Brock-Mirman Stochastic Growth Model
c November 20, 207, Chrisopher D. Carroll BrockMirman The Brock-Mirman Sochasic Growh Model Brock and Mirman (972) provided he firs opimizing growh model wih unpredicable (sochasic) shocks. The social
More informationProblem Set 5. Graduate Macro II, Spring 2017 The University of Notre Dame Professor Sims
Problem Se 5 Graduae Macro II, Spring 2017 The Universiy of Nore Dame Professor Sims Insrucions: You may consul wih oher members of he class, bu please make sure o urn in your own work. Where applicable,
More informationMath 333 Problem Set #2 Solution 14 February 2003
Mah 333 Problem Se #2 Soluion 14 February 2003 A1. Solve he iniial value problem dy dx = x2 + e 3x ; 2y 4 y(0) = 1. Soluion: This is separable; we wrie 2y 4 dy = x 2 + e x dx and inegrae o ge The iniial
More informationIntermediate Macro In-Class Problems
Inermediae Macro In-Class Problems Exploring Romer Model June 14, 016 Today we will explore he mechanisms of he simply Romer model by exploring how economies described by his model would reac o exogenous
More information( ) a system of differential equations with continuous parametrization ( T = R + These look like, respectively:
XIII. DIFFERENCE AND DIFFERENTIAL EQUATIONS Ofen funcions, or a sysem of funcion, are paramerized in erms of some variable, usually denoed as and inerpreed as ime. The variable is wrien as a funcion of
More informationLecture Notes 5: Investment
Lecure Noes 5: Invesmen Zhiwei Xu (xuzhiwei@sju.edu.cn) Invesmen decisions made by rms are one of he mos imporan behaviors in he economy. As he invesmen deermines how he capials accumulae along he ime,
More informationLecture Notes 3: Quantitative Analysis in DSGE Models: New Keynesian Model
Lecure Noes 3: Quaniaive Analysis in DSGE Models: New Keynesian Model Zhiwei Xu, Email: xuzhiwei@sju.edu.cn The moneary policy plays lile role in he basic moneary model wihou price sickiness. We now urn
More information= ( ) ) or a system of differential equations with continuous parametrization (T = R
XIII. DIFFERENCE AND DIFFERENTIAL EQUATIONS Ofen funcions, or a sysem of funcion, are paramerized in erms of some variable, usually denoed as and inerpreed as ime. The variable is wrien as a funcion of
More informationA Dynamic Model of Economic Fluctuations
CHAPTER 15 A Dynamic Model of Economic Flucuaions Modified for ECON 2204 by Bob Murphy 2016 Worh Publishers, all righs reserved IN THIS CHAPTER, OU WILL LEARN: how o incorporae dynamics ino he AD-AS model
More informationProblem Set #3: AK models
Universiy of Warwick EC9A2 Advanced Macroeconomic Analysis Problem Se #3: AK models Jorge F. Chavez December 3, 2012 Problem 1 Consider a compeiive economy, in which he level of echnology, which is exernal
More informationANSWERS TO EVEN NUMBERED EXERCISES IN CHAPTER 6 SECTION 6.1: LIFE CYCLE CONSUMPTION AND WEALTH T 1. . Let ct. ) is a strictly concave function of c
John Riley December 00 S O EVEN NUMBERED EXERCISES IN CHAPER 6 SECION 6: LIFE CYCLE CONSUMPION AND WEALH Eercise 6-: Opimal saving wih more han one commodiy A consumer has a period uiliy funcion δ u (
More informationProblem Set #1 - Answers
Fall Term 24 Page of 7. Use indifference curves and a curved ransformaion curve o illusrae a free rade equilibrium for a counry facing an exogenous inernaional price. Then show wha happens if ha exogenous
More informationE β t log (C t ) + M t M t 1. = Y t + B t 1 P t. B t 0 (3) v t = P tc t M t Question 1. Find the FOC s for an optimum in the agent s problem.
Noes, M. Krause.. Problem Se 9: Exercise on FTPL Same model as in paper and lecure, only ha one-period govenmen bonds are replaced by consols, which are bonds ha pay one dollar forever. I has curren marke
More information1. Consider a pure-exchange economy with stochastic endowments. The state of the economy
Answer 4 of he following 5 quesions. 1. Consider a pure-exchange economy wih sochasic endowmens. The sae of he economy in period, 0,1,..., is he hisory of evens s ( s0, s1,..., s ). The iniial sae is given.
More informationUNIVERSITY OF OSLO DEPARTMENT OF ECONOMICS
UNIVERSITY OF OSLO DEPARTMENT OF ECONOMICS Exam: ECON4325 Moneary Policy Dae of exam: Tuesday, May 24, 206 Grades are given: June 4, 206 Time for exam: 2.30 p.m. 5.30 p.m. The problem se covers 5 pages
More informationFull file at
Full file a hps://frasockeu SOLUTIONS TO CHAPTER 2 Problem 2 (a) The firm's problem is o choose he quaniies of capial, K, and effecive labor, AL, in order o minimize coss, wal + rk, subjec o he producion
More informationLecture 2-1 Kinematics in One Dimension Displacement, Velocity and Acceleration Everything in the world is moving. Nothing stays still.
Lecure - Kinemaics in One Dimension Displacemen, Velociy and Acceleraion Everyhing in he world is moving. Nohing says sill. Moion occurs a all scales of he universe, saring from he moion of elecrons in
More informationA First Course on Kinetics and Reaction Engineering. Class 19 on Unit 18
A Firs ourse on Kineics and Reacion Engineering lass 19 on Uni 18 Par I - hemical Reacions Par II - hemical Reacion Kineics Where We re Going Par III - hemical Reacion Engineering A. Ideal Reacors B. Perfecly
More information5.1 - Logarithms and Their Properties
Chaper 5 Logarihmic Funcions 5.1 - Logarihms and Their Properies Suppose ha a populaion grows according o he formula P 10, where P is he colony size a ime, in hours. When will he populaion be 2500? We
More informationMacroeconomic Theory Ph.D. Qualifying Examination Fall 2005 ANSWER EACH PART IN A SEPARATE BLUE BOOK. PART ONE: ANSWER IN BOOK 1 WEIGHT 1/3
Macroeconomic Theory Ph.D. Qualifying Examinaion Fall 2005 Comprehensive Examinaion UCLA Dep. of Economics You have 4 hours o complee he exam. There are hree pars o he exam. Answer all pars. Each par has
More informationChallenge Problems. DIS 203 and 210. March 6, (e 2) k. k(k + 2). k=1. f(x) = k(k + 2) = 1 x k
Challenge Problems DIS 03 and 0 March 6, 05 Choose one of he following problems, and work on i in your group. Your goal is o convince me ha your answer is correc. Even if your answer isn compleely correc,
More informationSeminar 5 Sustainability
Seminar 5 Susainabiliy Soluions Quesion : Hyperbolic Discouning -. Suppose a faher inheris a family forune of 0 million NOK an he wans o use some of i for himself (o be precise, he share ) bu also o beques
More informationSimulation-Solving Dynamic Models ABE 5646 Week 2, Spring 2010
Simulaion-Solving Dynamic Models ABE 5646 Week 2, Spring 2010 Week Descripion Reading Maerial 2 Compuer Simulaion of Dynamic Models Finie Difference, coninuous saes, discree ime Simple Mehods Euler Trapezoid
More informationEconomics 8105 Macroeconomic Theory Recitation 6
Economics 8105 Macroeconomic Theory Reciaion 6 Conor Ryan Ocober 11h, 2016 Ouline: Opimal Taxaion wih Governmen Invesmen 1 Governmen Expendiure in Producion In hese noes we will examine a model in which
More informationSome Basic Information about M-S-D Systems
Some Basic Informaion abou M-S-D Sysems 1 Inroducion We wan o give some summary of he facs concerning unforced (homogeneous) and forced (non-homogeneous) models for linear oscillaors governed by second-order,
More informationOn Measuring Pro-Poor Growth. 1. On Various Ways of Measuring Pro-Poor Growth: A Short Review of the Literature
On Measuring Pro-Poor Growh 1. On Various Ways of Measuring Pro-Poor Growh: A Shor eview of he Lieraure During he pas en years or so here have been various suggesions concerning he way one should check
More informationReading from Young & Freedman: For this topic, read sections 25.4 & 25.5, the introduction to chapter 26 and sections 26.1 to 26.2 & 26.4.
PHY1 Elecriciy Topic 7 (Lecures 1 & 11) Elecric Circuis n his opic, we will cover: 1) Elecromoive Force (EMF) ) Series and parallel resisor combinaions 3) Kirchhoff s rules for circuis 4) Time dependence
More informationFall 2015 Final Examination (200 pts)
Econ 501 Fall 2015 Final Examinaion (200 ps) S.L. Parene Neoclassical Growh Model (50 ps) 1. Derive he relaion beween he real ineres rae and he renal price of capial using a no-arbirage argumen under he
More informationpe pt dt = e pt Probabilty of death given survival till t : pe pt = p Expected life at t : pe(s t)p ds = e (s t)p t =
BLANCHARD Probabiliy of Deah: π () = pe p ; Probabily of living ill : Ω () = pe p d = e p Probabily of deah given survival ill : pe p = p e p Expeced life a : (s ) pe (s )p ds = p 1 Populaion normalized
More informationGraduate Macro Theory II: Notes on Neoclassical Growth Model
Graduae Macro Theory II: Noes on Neoclassical Growh Model Eric Sims Universiy of Nore Dame Spring 2015 1 Basic Neoclassical Growh Model The economy is populaed by a large number of infiniely lived agens.
More information13.3 Term structure models
13.3 Term srucure models 13.3.1 Expecaions hypohesis model - Simples "model" a) shor rae b) expecaions o ge oher prices Resul: y () = 1 h +1 δ = φ( δ)+ε +1 f () = E (y +1) (1) =δ + φ( δ) f (3) = E (y +)
More informationUnemployment and Mismatch in the UK
Unemploymen and Mismach in he UK Jennifer C. Smih Universiy of Warwick, UK CAGE (Cenre for Compeiive Advanage in he Global Economy) BoE/LSE Conference on Macroeconomics and Moneary Policy: Unemploymen,
More informationThis document was generated at 7:34 PM, 07/27/09 Copyright 2009 Richard T. Woodward
his documen was generaed a 7:34 PM, 07/27/09 Copyrigh 2009 Richard. Woodward 15. Bang-bang and mos rapid approach problems AGEC 637 - Summer 2009 here are some problems for which he opimal pah does no
More informationSolutionbank Edexcel AS and A Level Modular Mathematics
Page of 4 Soluionbank Edexcel AS and A Level Modular Mahemaics Exercise A, Quesion Quesion: Skech he graphs of (a) y = e x + (b) y = 4e x (c) y = e x 3 (d) y = 4 e x (e) y = 6 + 0e x (f) y = 00e x + 0
More information4.1 - Logarithms and Their Properties
Chaper 4 Logarihmic Funcions 4.1 - Logarihms and Their Properies Wha is a Logarihm? We define he common logarihm funcion, simply he log funcion, wrien log 10 x log x, as follows: If x is a posiive number,
More informationMath 116 Second Midterm March 21, 2016
Mah 6 Second Miderm March, 06 UMID: EXAM SOLUTIONS Iniials: Insrucor: Secion:. Do no open his exam unil you are old o do so.. Do no wrie your name anywhere on his exam. 3. This exam has pages including
More information3.1.3 INTRODUCTION TO DYNAMIC OPTIMIZATION: DISCRETE TIME PROBLEMS. A. The Hamiltonian and First-Order Conditions in a Finite Time Horizon
3..3 INRODUCION O DYNAMIC OPIMIZAION: DISCREE IME PROBLEMS A. he Hamilonian and Firs-Order Condiions in a Finie ime Horizon Define a new funcion, he Hamilonian funcion, H. H he change in he oal value of
More information!!"#"$%&#'()!"#&'(*%)+,&',-)./0)1-*23)
"#"$%&#'()"#&'(*%)+,&',-)./)1-*) #$%&'()*+,&',-.%,/)*+,-&1*#$)()5*6$+$%*,7&*-'-&1*(,-&*6&,7.$%$+*&%'(*8$&',-,%'-&1*(,-&*6&,79*(&,%: ;..,*&1$&$.$%&'()*1$$.,'&',-9*(&,%)?%*,('&5
More informationGreen accounting: Green NNP and genuine savings
Green accouning: Green NNP an genuine savings Lecures in resource economics Spring 2, Par G.B. Asheim, na.res., upae 27.3.2 1 Naional accouning gives a isore picure of savings if changes in socks of naural
More informationEcon107 Applied Econometrics Topic 7: Multicollinearity (Studenmund, Chapter 8)
I. Definiions and Problems A. Perfec Mulicollineariy Econ7 Applied Economerics Topic 7: Mulicollineariy (Sudenmund, Chaper 8) Definiion: Perfec mulicollineariy exiss in a following K-variable regression
More informationLecture 2D: Rank-Size Rule
Econ 460 Urban Economics Lecure 2D: Rank-Size Rule Insrucor: Hiroki Waanabe Summer 2012 2012 Hiroki Waanabe 1 / 56 1 Rank-Size Rule 2 Eeckhou 3 Now We Know 2012 Hiroki Waanabe 2 / 56 1 Rank-Size Rule US
More informationIB Physics Kinematics Worksheet
IB Physics Kinemaics Workshee Wrie full soluions and noes for muliple choice answers. Do no use a calculaor for muliple choice answers. 1. Which of he following is a correc definiion of average acceleraion?
More informationKINEMATICS IN ONE DIMENSION
KINEMATICS IN ONE DIMENSION PREVIEW Kinemaics is he sudy of how hings move how far (disance and displacemen), how fas (speed and velociy), and how fas ha how fas changes (acceleraion). We say ha an objec
More information1 Answers to Final Exam, ECN 200E, Spring
1 Answers o Final Exam, ECN 200E, Spring 2004 1. A good answer would include he following elemens: The equiy premium puzzle demonsraed ha wih sandard (i.e ime separable and consan relaive risk aversion)
More informationSeminar 4: Hotelling 2
Seminar 4: Hoelling 2 November 3, 211 1 Exercise Par 1 Iso-elasic demand A non renewable resource of a known sock S can be exraced a zero cos. Demand for he resource is of he form: D(p ) = p ε ε > A a
More informationA Note on Raising the Mandatory Retirement Age and. Its Effect on Long-run Income and Pay As You Go (PAYG) Pensions
The Sociey for Economic Sudies The Universiy of Kiakyushu Working Paper Series No.2017-5 (acceped in March, 2018) A Noe on Raising he Mandaory Reiremen Age and Is Effec on Long-run Income and Pay As You
More informationMath 36. Rumbos Spring Solutions to Assignment #6. 1. Suppose the growth of a population is governed by the differential equation.
Mah 36. Rumbos Spring 1 1 Soluions o Assignmen #6 1. Suppose he growh of a populaion is governed by he differenial equaion where k is a posiive consan. d d = k (a Explain why his model predics ha he populaion
More informationEssential Microeconomics : OPTIMAL CONTROL 1. Consider the following class of optimization problems
Essenial Microeconomics -- 6.5: OPIMAL CONROL Consider he following class of opimizaion problems Max{ U( k, x) + U+ ( k+ ) k+ k F( k, x)}. { x, k+ } = In he language of conrol heory, he vecor k is he vecor
More informationMath 2142 Exam 1 Review Problems. x 2 + f (0) 3! for the 3rd Taylor polynomial at x = 0. To calculate the various quantities:
Mah 4 Eam Review Problems Problem. Calculae he 3rd Taylor polynomial for arcsin a =. Soluion. Le f() = arcsin. For his problem, we use he formula f() + f () + f ()! + f () 3! for he 3rd Taylor polynomial
More informationLecture 2D: Rank-Size Rule
Econ 4935 Urban Economics Lecure 2D: Rank-Size Rule Insrucor: Hiroki Waanabe Fall 2012 Waanabe Econ 4935 2D Rank-Size Rule 1 / 58 1 Rank-Size Rule 2 Eeckhou 3 Now We Know Waanabe Econ 4935 2D Rank-Size
More informationA Note on Public Debt, Tax-Exempt Bonds, and Ponzi Games
WP/07/162 A Noe on Public Deb, Tax-Exemp Bonds, and Ponzi Games Berhold U Wigger 2007 Inernaional Moneary Fund WP/07/162 IMF Working Paper Fiscal Affairs Deparmen A Noe on Public Deb, Tax-Exemp Bonds,
More information3.6 Derivatives as Rates of Change
3.6 Derivaives as Raes of Change Problem 1 John is walking along a sraigh pah. His posiion a he ime >0 is given by s = f(). He sars a =0from his house (f(0) = 0) and he graph of f is given below. (a) Describe
More informationEXERCISES FOR SECTION 1.5
1.5 Exisence and Uniqueness of Soluions 43 20. 1 v c 21. 1 v c 1 2 4 6 8 10 1 2 2 4 6 8 10 Graph of approximae soluion obained using Euler s mehod wih = 0.1. Graph of approximae soluion obained using Euler
More informationMorning Time: 1 hour 30 minutes Additional materials (enclosed):
ADVANCED GCE 78/0 MATHEMATICS (MEI) Differenial Equaions THURSDAY JANUARY 008 Morning Time: hour 30 minues Addiional maerials (enclosed): None Addiional maerials (required): Answer Bookle (8 pages) Graph
More information) were both constant and we brought them from under the integral.
YIELD-PER-RECRUIT (coninued The yield-per-recrui model applies o a cohor, bu we saw in he Age Disribuions lecure ha he properies of a cohor do no apply in general o a collecion of cohors, which is wha
More informationElasticityofSubstitution and Growth: Normalized CES in the Diamond Model
ElasiciyofSubsiuion and Growh: Normalized CES in he Diamond Model Kaz Miyagiwa Deparmen of Economics Louisiana Sae Universiy Baon Rouge, LA 70803 kmiyagi@lsu.edu Chris Papageorgiou Deparmen of Economics
More informationEE100 Lab 3 Experiment Guide: RC Circuits
I. Inroducion EE100 Lab 3 Experimen Guide: A. apaciors A capacior is a passive elecronic componen ha sores energy in he form of an elecrosaic field. The uni of capaciance is he farad (coulomb/vol). Pracical
More informationNote: For all questions, answer (E) NOTA means none of the above answers is correct.
Thea Logarihms & Eponens 0 ΜΑΘ Naional Convenion Noe: For all quesions, answer means none of he above answers is correc.. The elemen C 4 has a half life of 70 ears. There is grams of C 4 in a paricular
More informationIMPLICIT AND INVERSE FUNCTION THEOREMS PAUL SCHRIMPF 1 OCTOBER 25, 2013
IMPLICI AND INVERSE FUNCION HEOREMS PAUL SCHRIMPF 1 OCOBER 25, 213 UNIVERSIY OF BRIISH COLUMBIA ECONOMICS 526 We have exensively sudied how o solve sysems of linear equaions. We know how o check wheher
More informationThe average rate of change between two points on a function is d t
SM Dae: Secion: Objecive: The average rae of change beween wo poins on a funcion is d. For example, if he funcion ( ) represens he disance in miles ha a car has raveled afer hours, hen finding he slope
More informationProblem set 3: Endogenous Innovation - Solutions
Problem se 3: Endogenous Innovaion - Soluions Loïc Baé Ocober 25, 22 Opimaliy in he R & D based endogenous growh model Imporan feaure of his model: he monopoly markup is exogenous, so ha here is no need
More information4.1 INTRODUCTION TO THE FAMILY OF EXPONENTIAL FUNCTIONS
Funcions Modeling Change: A Preparaion for Calculus, 4h Ediion, 2011, Connally 4.1 INTRODUCTION TO THE FAMILY OF EXPONENTIAL FUNCTIONS Growing a a Consan Percen Rae Example 2 During he 2000 s, he populaion
More informationAdvanced Macroeconomics 5. PRODUCTIVE EXTERNALITIES AND ENDOGENOUS GROWTH
PART III. ENDOGENOUS GROWTH 5. PRODUCTIVE EXTERNALITIES AND ENDOGENOUS GROWTH Alhough he Solow models sudied so far are quie successful in accouning for many imporan aspecs of economic growh, hey have
More informationdy dx = xey (a) y(0) = 2 (b) y(1) = 2.5 SOLUTION: See next page
Assignmen 1 MATH 2270 SOLUTION Please wrie ou complee soluions for each of he following 6 problems (one more will sill be added). You may, of course, consul wih your classmaes, he exbook or oher resources,
More information2.7. Some common engineering functions. Introduction. Prerequisites. Learning Outcomes
Some common engineering funcions 2.7 Inroducion This secion provides a caalogue of some common funcions ofen used in Science and Engineering. These include polynomials, raional funcions, he modulus funcion
More informationd 1 = c 1 b 2 - b 1 c 2 d 2 = c 1 b 3 - b 1 c 3
and d = c b - b c c d = c b - b c c This process is coninued unil he nh row has been compleed. The complee array of coefficiens is riangular. Noe ha in developing he array an enire row may be divided or
More informationBasic Circuit Elements Professor J R Lucas November 2001
Basic Circui Elemens - J ucas An elecrical circui is an inerconnecion of circui elemens. These circui elemens can be caegorised ino wo ypes, namely acive and passive elemens. Some Definiions/explanaions
More informationY 0.4Y 0.45Y Y to a proper ARMA specification.
HG Jan 04 ECON 50 Exercises II - 0 Feb 04 (wih answers Exercise. Read secion 8 in lecure noes 3 (LN3 on he common facor problem in ARMA-processes. Consider he following process Y 0.4Y 0.45Y 0.5 ( where
More information3 at MAC 1140 TEST 3 NOTES. 5.1 and 5.2. Exponential Functions. Form I: P is the y-intercept. (0, P) When a > 1: a = growth factor = 1 + growth rate
1 5.1 and 5. Eponenial Funcions Form I: Y Pa, a 1, a > 0 P is he y-inercep. (0, P) When a > 1: a = growh facor = 1 + growh rae The equaion can be wrien as The larger a is, he seeper he graph is. Y P( 1
More informationGraduate Macroeconomics 2 Problem set 4. - Solutions
Graduae Macroeconomics Problem se. - Soluions In his problem, we calibrae he Roemberg and Woodford (995) model of imperfec compeiion. Since he model and is equilibrium condiions are discussed a lengh in
More information- If one knows that a magnetic field has a symmetry, one may calculate the magnitude of B by use of Ampere s law: The integral of scalar product
11.1 APPCATON OF AMPEE S AW N SYMMETC MAGNETC FEDS - f one knows ha a magneic field has a symmery, one may calculae he magniude of by use of Ampere s law: The inegral of scalar produc Closed _ pah * d
More informationEE650R: Reliability Physics of Nanoelectronic Devices Lecture 9:
EE65R: Reliabiliy Physics of anoelecronic Devices Lecure 9: Feaures of Time-Dependen BTI Degradaion Dae: Sep. 9, 6 Classnoe Lufe Siddique Review Animesh Daa 9. Background/Review: BTI is observed when he
More information( ) is the stretch factor, and x the
(Lecures 7-8) Liddle, Chaper 5 Simple cosmological models (i) Hubble s Law revisied Self-similar srech of he universe All universe models have his characerisic v r ; v = Hr since only his conserves homogeneiy
More informationModule 2 F c i k c s la l w a s o s f dif di fusi s o i n
Module Fick s laws of diffusion Fick s laws of diffusion and hin film soluion Adolf Fick (1855) proposed: d J α d d d J (mole/m s) flu (m /s) diffusion coefficien and (mole/m 3 ) concenraion of ions, aoms
More informationChapter 15: Phenomena. Chapter 15 Chemical Kinetics. Reaction Rates. Reaction Rates R P. Reaction Rates. Rate Laws
Chaper 5: Phenomena Phenomena: The reacion (aq) + B(aq) C(aq) was sudied a wo differen emperaures (98 K and 35 K). For each emperaure he reacion was sared by puing differen concenraions of he 3 species
More informationdt = C exp (3 ln t 4 ). t 4 W = C exp ( ln(4 t) 3) = C(4 t) 3.
Mah Rahman Exam Review Soluions () Consider he IVP: ( 4)y 3y + 4y = ; y(3) = 0, y (3) =. (a) Please deermine he longes inerval for which he IVP is guaraneed o have a unique soluion. Soluion: The disconinuiies
More informationWorker flows and matching efficiency
Worker flows and maching efficiency Marcelo Veraciero Inroducion and summary One of he bes known facs abou labor marke dynamics in he US economy is ha unemploymen and vacancies are srongly negaively correlaed
More informationPredator - Prey Model Trajectories and the nonlinear conservation law
Predaor - Prey Model Trajecories and he nonlinear conservaion law James K. Peerson Deparmen of Biological Sciences and Deparmen of Mahemaical Sciences Clemson Universiy Ocober 28, 213 Ouline Drawing Trajecories
More informationLaplace transfom: t-translation rule , Haynes Miller and Jeremy Orloff
Laplace ransfom: -ranslaion rule 8.03, Haynes Miller and Jeremy Orloff Inroducory example Consider he sysem ẋ + 3x = f(, where f is he inpu and x he response. We know is uni impulse response is 0 for
More informationSterilization D Values
Seriliaion D Values Seriliaion by seam consis of he simple observaion ha baceria die over ime during exposure o hea. They do no all live for a finie period of hea exposure and hen suddenly die a once,
More informationgrows at a constant rate. Besides these classical facts, there also other empirical regularities which growth theory must account for.
Par I Growh Growh is a vas lieraure in macroeconomics, which seeks o explain some facs in he long erm behavior of economies. The curren secion is an inroducion o his subjec, and will be divided in hree
More informationCOMPETITIVE GROWTH MODEL
COMPETITIVE GROWTH MODEL I Assumpions We are going o now solve he compeiive version of he opimal growh moel. Alhough he allocaions are he same as in he social planning problem, i will be useful o compare
More informationF.LE.A.4: Exponential Growth
Regens Exam Quesions F.LE.A.4: Exponenial Growh www.jmap.org Name: F.LE.A.4: Exponenial Growh 1 A populaion of rabbis doubles every days according o he formula P = 10(2), where P is he populaion of rabbis
More informationElasticity of substitution and growth: normalized CES in the diamond model
Economic Theory 268 (Red.Nr. 785) (2003) Elasiciy of subsiuion and growh: normalized CES in he diamond model Kaz Miyagiwa 1, Chris Papageorgiou 2 1 Deparmen of Economics, Emory Universiy, Alana, GA 30322,
More informationMath 10B: Mock Mid II. April 13, 2016
Name: Soluions Mah 10B: Mock Mid II April 13, 016 1. ( poins) Sae, wih jusificaion, wheher he following saemens are rue or false. (a) If a 3 3 marix A saisfies A 3 A = 0, hen i canno be inverible. True.
More informationThe generalized Solow model with endogenous growth
Page of 8 The generalized Solow model wih endogenous growh December 205 Alecos Papadopoulos PhD Candidae Deparmen of Economics Ahens Universi of Economics and Business papadopalex@aueb.gr This sprung ou
More informationChild Labor and Economic Development
Child Labor and Economic Developmen Ambar Ghosh Cenre for Economic Sudies, Presidency College, Kolkaa.. Chandana Ghosh* Economic Research Uni, Indian Saisical Insiue, Kolkaa. Absrac The paper develops
More informationMath 334 Test 1 KEY Spring 2010 Section: 001. Instructor: Scott Glasgow Dates: May 10 and 11.
1 Mah 334 Tes 1 KEY Spring 21 Secion: 1 Insrucor: Sco Glasgow Daes: Ma 1 and 11. Do NOT wrie on his problem saemen bookle, excep for our indicaion of following he honor code jus below. No credi will be
More information