TAsection03

TAsection03 - ~ c t = c t (1+ g ) t ; ~ k t = k t (1+ g ) t...

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TA section 04 February 15, 2009 1 Neoclassical Growth problem with labor max f c t ;k t +1 ;l t g 1 X t =0 t (log c t + ± log (1 l t )) c t + k t +1 = k t (1 + g ) t l t ± 1 + (1 ² ) k t 1.1 Lagrangian setup 1.2 FOC Derive FOCs 1.3 Stationary equilibrium conditions Derive Stationary equilibrium conditions, i.e. rede±ne variables by
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Unformatted text preview: ~ c t = c t (1+ g ) t ; ~ k t = k t (1+ g ) t . 1.4 Steady State conditions Derive steady state values for ~ c; ~ k; l 1.5 Log-linearization Log-linearize using ~ x t = ~ xe ^ x t where ^ x t = log ~ x t & log ~ x 1...
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This note was uploaded on 05/13/2010 for the course ECON 110D taught by Professor Schmitt-grohe during the Spring '08 term at Duke.

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