Solow model

Set the rate of depreciation of human capital and the savings rate for human capital to the same values as those for physical capital. Does this change the rate of growth in equilibrium? Explain

Problem Set 2. Growth theory a. Go to canvas and retrieve the file “Growth theory work sheet.xlsx”, and make a copy of it (so you can go back to the original version if something gets messed up). b. Open the work sheet and find the column that contains the production function. Ignoring, for the moment […]

What recommendation would you give policymakers to ensure sustained economic growth following the covid crisis?

Macroeconomics Part A [30%]Answer ONE questionQ1Solve for output-per-person in the basic Romer model. Critically assess the effect that technological advancement could have on the balanced growth path and provide the intuition for your results. Q2Consider the household problem in a benchmark two-period OLG framework. Using the following functional form for the utility function𝑈(𝑐ଵ௧, 𝑐ଶ௧ାଵ) = […]

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