Questions tagged [balanced-growth]
The balanced-growth tag has no usage guidance.
14
questions
1
vote
0
answers
28
views
Stylized facts in macroeconomics [closed]
Max $E_0 \sum_{t=1}^{\infty}\beta^t u(C_t , L_t)=E_0 \sum_{t=1}^{\infty}\beta^t[logC_t-B\frac{N_t ^{1+\gamma}}{1+\gamma}]$
$Y_t=A_t K_t^{1-\alpha}(N_t X_t)^\alpha$ where $X_t$ is labor augmenting ...
0
votes
0
answers
67
views
Solow Model With Land as Factor
Given the production function:
$$Y = K^\alpha (AL)^\beta R^{1-\alpha -\beta}$$.
Where $L, A$ grow at exogenously given rates $n, g$ respectively. $R$ is land and is constant in supply and given that $\...
3
votes
1
answer
87
views
Balanced growth path with specific technology
Resource constraint: $Y_t =C_t +I_t $
CRS Production function: $Y_t =K_t^{\alpha} (N_t X_t )^{1-\alpha}$
Investment function: $I_t =\frac{1}{q_t}(K_{t+1} -(1-\delta)K_t )$
The labor-augmenting ...
2
votes
1
answer
45
views
Solow model response function
Consider a Solow model without technological progress so that the steady state $k^*$ occurs at $sf(k^*) = (n+\delta)k^*$ where $n$ is population growth rate, $\delta$ is capital depreciation rate and $...
3
votes
3
answers
84
views
Proving a result In Jones (1999) "Growth: With or Without Scale Effects"
Jones (1999) builds his semi-endogenous growth model where output is produced with only one input, labour, in the following "research" function:
$$ Y = A^\alpha L_Y $$
Labour is augmented with ...
0
votes
1
answer
34
views
Wage Growth Rate in the R&D Model
I am trying to understand the R&D model and how to calculate the growth rate of wage in this model.
There is no equation given, but it’s stated that : household income must equal total ...
2
votes
0
answers
48
views
The maximum sustainable yield model: clarifications
I would like your help to understand the Maximum sustainable yield model. This is what I understood with some questions.
We consider a population of individuals who are born, possibly reproduce ...
2
votes
1
answer
87
views
Why are we using exp(.) as the functional form in the household maximization problem inside the RCK model?
Currently I'm studying the RCK model at my Advanced Macroeconomics I classes.
A question arose almost immediately when I saw the utility function of a household in this model.
The question is: why ...
1
vote
1
answer
400
views
Why does capital initially reduce and then rise with an anticipated future decrease in taxes in the RCK model?
Consider the version of the RCK model where there is a government that runs a constant balanced budget.
At $t_0$, the economy is in steady state, with constant tax $T_{old} > 0$
Then, at $...
2
votes
1
answer
155
views
Can saddle path not go through the origin in Ramsey model?
In my case, the utility function is CEIS and discrete, the production fuction is $f(k_{t})=k_{t}^\alpha$, the budget constraint is $f(k_{t})+(1-\delta)k_{t}=c_{t} + k_{t+1}$. I use Jacobian matrix and ...
2
votes
1
answer
72
views
Comparative Statics on Balanced Growth Path
It would be a silly question. In a model, I have found the BGP (balanced growth path) for all key variables.
As expected, these variables are constant variables ;
$$\mu^{BGP}=\frac{\alpha+\rho+\pi}{...
1
vote
0
answers
471
views
How to Show That, on a Balanced Growth Path, Two Variables Grow at the Same Rate
If we are given that a variable is on a balanced growth path (for sake of argument we shall assume consumption), how do we show that another variable related to consumption (like capital or wealth) ...
4
votes
1
answer
573
views
Calculating Time to Balanced Growth Path
$\textbf{Model:}$
$$\underset{\{c_t,k_t\}}{max}\;\sum_{t=0}^\infty\beta^t\frac{c_t^{1-\gamma}}{1-\gamma}$$
$$s.t.\;c_t=Rk_{t-1}-k_t$$
$$c_t,k_t\geq0$$
At time $t$, $c_t$ is consumption and $k_{t-1}$ ...
4
votes
1
answer
443
views
Balanced Growth Path (Qualifier Question)
$\textbf{Full disclaimer:}$ I am studying for my candidacy exams and this question is from one of the exams last year.
$$max\;\sum_{t=0}^\infty \beta^t \frac{c_t^{1-\gamma}}{1-\gamma}$$Subject to the ...