Questions tagged [long-run-macroeconomics]

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Capital Inflows and Outflows in the Long Run

What happens to capital inflows and outflows in the long run?
Anonymous's user avatar
1 vote
2 answers

Find the salary and interest rate in the $AK$ model

I'm trying to solve this exercise for Macroeconomics III (the course covers long-run growth models). Find the wage $w_t$ and the interest rate $r_t$ in the $AK$ model, i.e., the production function is ...
Nicolas Torres's user avatar
3 votes
1 answer

Why do we omit the integral when deriving the f.o.c.’s in long-run growth models such as Romer (1990)?

For example when solving Romer’s model (1990) in continuous time, for the firm producing final goods, its production function is: $ Y(t) = \int_{0}^{M(t)} (A(t) L_Y)^{1-\alpha} {x(i,t)}^{\alpha} di$, ...
Nicolas Torres's user avatar