This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: consumption-output ratio, and *). ( 1 1 *) ( * 2 1 c u c u u + + = Note that r an must be converted back to an annual basis: ( 29 . 1 1 / 1-+ = T an r r The capital-output ratio must also be converted back: ECN/APEC 6000/7230 Fall 2009 T y k y k an = c) How do the observables computed in (b) change if we make each of the following changes to preference parameters while holding all other parameters to their baseline parameters? Change θ = 0.5 and = 2? (This will require you to solve numerically for k *.) Change ρ an to 0.02 or 0.06....
View Full Document
This note was uploaded on 01/09/2011 for the course ECON 7230 taught by Professor Feigenbaum during the Spring '10 term at Utah Valley University.
- Spring '10