204A-SolowWS

204A-SolowWS - Application: Instructions Results...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Application: Working with the Solow Model Instructions: Results:  1. Set initial steady state: Blue values 1. Steady states = red 2. Set changes: Enter yellow boxes 2. Period-0 values = green      [Default = 10% less capital] 3. Transition path = see table and charts • Default: if blank = initial value • If no change is marked, graphs will show a default change: 10% cut in capital Parameters Value Meaning Parameters Change pts Parameter seChange % Change Pts Case of Disturbances: Alpha 33.3% Capital share Alpha 33.3% 0.0% 0.0% Half-life 17.3 (years) Delta 4.0% Depreciation rate Delta 4.0% 0.0% 0.0% n 1.0% Growth of workforce n 1.0% 0.0% 0.0% Case of Savings rate changes: g 1.0% Growth of productivity g 1.0% 0.0% 0.0% Recovery: na (years) s 16.7% Investment rate s 16.7% 0.0% 0.0% to initial consumption Disturbances Initial Values (normalization - no need to set) Variable Change % Value in t=0 Change % A(0) 1.000 Initial productivity value A(0) 1.000 0.0% L(0) 100.000 Initial labor force L(0) 100.000 0.0% Compare: K(0) 462.963 Capital stock K(0) 416.667 Default: -10% Period-0 Period-0 Steady state values: Initial Steady state values: Final Change % Period-0 values - new vs. Initial ss vs. Final ss z*=k*/y* 2.778 Capital-output ratio z*=k*/y* 2.778 0.0% z(0) 2.589 -6.8% -6.8% k* 4.630 Capital-labor ratio k* 4.630 0.0% k(0) 4.167 -10.0% -10.0% y* 1.667 Output in efficiency units y* 1.667 0.0% y(0) 1.609 -3.5% -3.5% c* 1.389 Consumption in efficiency units c* 1.389 0.0% c(0) 1.341 -3.5% -3.5% Lambda 4.0% Convergence rate Lambda 4.0% 0.0% z(0)-z* -0.188 Transition Path Weight on  growth convergence Time z(0)-z* z(t) k(t) y(t) c(t) C(t) dln(k) dk/(k*-k) -2 2.778 4.630 1.667 1.389 1.361 -1 2.778 4.630 1.667 1.389 1.375 0.0000 0 1.000 2.589 4.167 1.609 1.341 1.341 -0.1054 1 0.961 2.597 4.185 1.611 1.343 1.356 0.0043 3.85% 2 0.923 2.604 4.202 1.614 1.345 1.372 0.0041 3.86% 3 0.887 2.611 4.218 1.616 1.346 1.387 0.0039 3.86% 4 0.852 2.617 4.234 1.618 1.348 1.403 0.0038 3.86% 5 0.819 2.624 4.249 1.620 1.350 1.419 0.0036 3.86% 6 0.787 2.630 4.264 1.622 1.351 1.435 0.0035 3.87% 7 0.756 2.635 4.278 1.623 1.353 1.451 0.0033 3.87% 8 0.726 2.641 4.292 1.625 1.354 1.467 0.0032 3.87% 9 0.698 2.646 4.305 1.627 1.356 1.483 0.0030 3.87% 10 0.670 2.651 4.317 1.628 1.357 1.500 0.0029 3.88% 11 0.644 2.656 4.330 1.630 1.358 1.516 0.0028 3.88% 12 0.619 2.661 4.341 1.631 1.359 1.533 0.0027 3.88% 13 0.595 2.666 4.352 1.633 1.361 1.549 0.0026 3.88% 14 0.571 2.670 4.363 1.634 1.362 1.566 0.0025 3.88% 15 0.549 2.674 4.374 1.635 1.363 1.583 0.0024 3.88% 16 0.527 2.678 4.383 1.637 1.364 1.600 0.0023 3.89% 17 0.507 2.682 4.393 1.638 1.365 1.618 0.0022 3.89% 18 0.487 2.686 4.402 1.639 1.366 1.635 0.0021 3.89% 19 0.468 2.690 4.411 1.640 1.367 1.653 0.0020 3.89% 20 0.449 2.693 4.420 1.641 1.368 1.670 0.0019 3.89% 21 0.432 2.696 4.428 1.642 1.368 1.688 0.0018 3.89% 22 0.415 2.700
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/26/2011 for the course ECON 240a taught by Professor Staff during the Fall '08 term at UCSB.

Page1 / 3

204A-SolowWS - Application: Instructions Results...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online