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Macroeconomics is a branch of economics dealing with the aggregate economy as a whole, rather than individual markets.

2 votes

How does one prove the convergence of a trajectory in the Ramsey model?

See Romer (2006, Sec 2.3) for details of notation. Dynamics are given by \begin{align} \dot k &= f(k) - (n+g)k - c\\ \dot c &= \frac{c}{\theta}(f'(k) - \rho - \theta g) \end{align} Presume you are lo …
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2 votes
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static/dynamic optimization

That's a coincidence, because they assume nondepreciating capital. If $\delta>0$ was positive we'd have \begin{align} \dot K = Y - C - \delta K \end{align} which gives \begin{align} \dot K = 0 \quad …
clueless's user avatar
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2 votes
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Numerical analysis in economics

Read the theory and then try coding. But you're lucky, because I was eager to develope and implement the forward shooting algorithm myself and thus provide it. Optimal Growth (See Ben Moll for detai …
clueless's user avatar
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3 votes
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Slope of a production function

The (partial) derivative of a continuous function is defined as \begin{align} \frac{\partial F(\overline K, L)}{\partial L} := \lim_{\Delta L \to 0}\frac{F(\overline K, L + \Delta L) - F(\overline K, …
clueless's user avatar
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