homework4Spring2008

homework4Spring2008 - Economics 302 Spring 2008 Homework #4...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 302 Spring 2008 Homework #4 Homework will be graded for both content and neatness. This homework requires the use of Microsoft Excel. Please put your section number or discussion section meeting time on the front page when turning in your homework. 1) Consider the Solow Growth model without population growth or technological change. The parameters of the model are as described in the table below: Year s δ k y c i depreciation change in k 1 0.2 0.05 20 where s is the saving rate, δ is the depreciation rate, k is the capital stock per worker, y is output per worker, c is consumption per worker, and i is investment per worker. a) Assume that our production function is given by 3 / 2 3 / 1 L K Y = . Rewrite this production function in terms of output per worker as a function of capital per worker. b) With the production function in a), fill out the first row of the table above. c) Again using the production function from a), find the steady state level of capital in this economy. d) Use Excel to fill out the above table for years 1-10.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/08/2008 for the course ECON 302 taught by Professor Gold during the Spring '07 term at Wisconsin.

Page1 / 2

homework4Spring2008 - Economics 302 Spring 2008 Homework #4...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online