Lecture 3 20

Lecture 3 20 - Since I = sY I K d K − = 1 sY K d K − =...

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A5: The capital stock of the economy The capital stock of the economy, K, can increase because of investment. It can also decrease because of depreciation. Let d be the rate of depreciation:
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Unformatted text preview: Since I = sY I K d K + − = ) 1 ( ' sY K d K + − = ) 1 ( ' K’ is the capital stock in the next period, and K is the current capital stock...
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