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Unformatted text preview: . ) ( ) ( lim = t R t K t d) Derive and interpret an expression for dC ( t )/ dt . e) Derive equations of motion for capital per effective labor k and consumption per effective labor c . f) Assume the growth rate of technology g > 0. Show that the equations of motion for k and c have a steady state solution with positive capital at finite times only for a set of measure zero of the parameter space (i.e. if the parameters are overdetermined)....
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 Spring '10
 Feigenbaum
 Macroeconomics, Utility

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