Please explain
Discrete time neoclasscical Growth model
A compettive equilibruim is such tha representative household maximize problem is
and
2. Solve growth rate of consumption
Let the aggegate production fn. is
where A is Technology
3. Show a competitive equilibruim fo this economy
( Substitute the solutions from firm maximization into Euler equation) Solve and explain
detail
maxc(t),k(t+1)t=0t1c(t)11subjecttok(t+1)k(t)=r(t)k(t)+w(t)c(t)x where r(t) is interest rate.
r(t)=R(t). Labour (L) is normalized into 1. Question 1. What is the type of utility function? What
does mean? Prove that the elasticity of intertemporal substitution between consumption at times
t and t+1 is given by 1/. (Hint: See Barro \& Sala-i-Martin (2004) Chapter 2 Page 91.)
Y(t)=A[L(t)1+K(t)1]1.
Please explainDiscrete time neoclasscical Growth modelA competti.pdf
1. Please explain
Discrete time neoclasscical Growth model
A compettive equilibruim is such tha representative household maximize problem is
and
2. Solve growth rate of consumption
Let the aggegate production fn. is
where A is Technology
3. Show a competitive equilibruim fo this economy
( Substitute the solutions from firm maximization into Euler equation) Solve and explain
detail
maxc(t),k(t+1)t=0t1c(t)11subjecttok(t+1)k(t)=r(t)k(t)+w(t)c(t)x where r(t) is interest rate.
r(t)=R(t). Labour (L) is normalized into 1. Question 1. What is the type of utility function? What
does mean? Prove that the elasticity of intertemporal substitution between consumption at times
t and t+1 is given by 1/. (Hint: See Barro & Sala-i-Martin (2004) Chapter 2 Page 91.)
Y(t)=A[L(t)1+K(t)1]1
![Please explain
Discrete time neoclasscical Growth model
A compettive equilibruim is such tha representative household maximize problem is
and
2. Solve growth rate of consumption
Let the aggegate production fn. is
where A is Technology
3. Show a competitive equilibruim fo this economy
( Substitute the solutions from firm maximization into Euler equation) Solve and explain
detail
maxc(t),k(t+1)t=0t1c(t)11subjecttok(t+1)k(t)=r(t)k(t)+w(t)c(t)x where r(t) is interest rate.
r(t)=R(t). Labour (L) is normalized into 1. Question 1. What is the type of utility function? What
does mean? Prove that the elasticity of intertemporal substitution between consumption at times
t and t+1 is given by 1/. (Hint: See Barro & Sala-i-Martin (2004) Chapter 2 Page 91.)
Y(t)=A[L(t)1+K(t)1]1](https://image.slidesharecdn.com/pleaseexplaindiscretetimeneoclasscicalgrowthmodelacompetti-230322175413-17fecd89/85/Please-explainDiscrete-time-neoclasscical-Growth-modelA-competti-pdf-1-320.jpg)
