excelsolow

# excelsolow - (2 Solow Model with population growth and...

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

Economic Growth Maria Muniagurria Notes on Excel Simulations of Solow Model Basic Equations: (1) Y = K " (AL) 1- " v v (2) L = n , A = g (3) S= s Y v (4) K t = s (Y t /K t ) - * v (5) K t+1 = (1+K t ) K t v (6) L t+1 = (1+L t ) L t = (1+n) L t v (7) A t+1 = (1+A t ) A t v (8) y t = (y t+1 - y t ) / y t (9) y = Y/L, k= K/L We assume that population (N ) is equal to the labor force (L) There are 3 countries (USA, Foreign 1, Foreign 2) The program shows the following variables for each country for 100 periods: v v y y Y/AL K/AL Y K AL L A K

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

View Full Document
SIMULATIONS For all countries and in all cases: " = 0.35 * = 0.02 K 0 = 1 L 0 = 10 (1) Solow Model with population growth and without technological change : countries differ in their rate of population growth . v All countries A=0 A 0 = 1, s= 0.10 v v v USA: L = 0.10 Foreign 1: L = 0.05 Foreign 2: L = 0.15
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (2) Solow Model with population growth and without technological change :countries differ in their savings rates . v v All countries: A=0 , L= n= 0.10 , A = 1 USA: s = 0.10 Foreign 1: s = 0.15 Foreign 1: s = 0.05 (3) Solow Model with population growth and technological change :countries differ in their initial technology level . v v All countries: A=0.02 , L= n= 0.10 , s = 0.10 USA: A = 8 Foreign 1: A = 4 Foreign 1: A = 2 (4) Solow Model with population growth and technological change :countries differ in their savings rates . v v All countries: A=0.02 , L= n= 0.10 , A = 8 USA: s = 0.10 Foreign 1: s = 0.15 Foreign 1: s = 0.05...
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

excelsolow - (2 Solow Model with population growth and...

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

View Full Document
Ask a homework question - tutors are online