formula1 - y = f k = Ak α 7 MP K = f k = A αk α-1 8...

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Econ303 Exam I Summary of formulas 1 This is to help you review materials. It is not allowed during exam. 1. Production function Y = F ( K, L ) 2. Marginal product: marginal contribution of input. 3. Cobb-Douglas production function Y = AK α L 1 - α MP K = αAK α - 1 L α MP L = (1 - α ) AK α L - α 4. Firms marginal conditions: marginal contribution of input = its cost MP K = ˆ r MP L = w 5. Labor demand function L ( w ): Firms optimal labor input as a function of wage rate. 6. per capita production function
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Unformatted text preview: y = f ( k ) = Ak α 7. MP K = f ( k ) = A · αk α-1 8. Solow growth model I k t +1-k t = s · Ak α-δk At the steady state s · Ak α = δk Golden rule f ( k ss ) = δ 9. Solow growth model II k t +1-k t = s · Ak α-( δ + n ) k At the steady state s · Ak α = ( δ + n ) k 10. Solow growth model III k t +1-k t = s · Ak α-( δ + n + g ) k At the steady state s · Ak α = ( δ + n + g ) k...
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