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# Growth The: ,u estie r1 Adding Tech Change - San-ed tn: tl'HS PI: Pu'lanny Lawsm E File Heme Insert Draw Design Mailings &quot;&quot; View Help

I need help with a growth theory model question

Analysis Skills: (For both the general case and the example production function)

1.     Reduce the model to an intensive form.

2.     Find the two steady states for the intensive form model.

3.     Use a diagram to illustrate changes in the steady state.

4.     Use a diagram to examine the stability of the steady states for the intensive form model.

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Growth Theory
Specifying and Analyzing a Sulnwiswan Growth Model The Model {1) S = I (2) S : 51/, 0 &lt; s &lt; 1 (3) Y = Fagin.) .11! = FQKJAL), PM &gt; o, FAML &lt; o, F,( &gt; I), F“. &lt; n 1' F : 1' F : O I K12}! K +m’K—lﬂ1m K Example: Y = [AL]1’“K“ (4) K'=I76K, o&lt;a&lt;1 (5) L’ = all. n &gt; U (6) A' : g/l g &gt; 0 Endogemous (6): I, 5, Y1 K', L’; A’ Piedetermined (3): K, L, A Initial Conditions (3): KB, L0, A0 Excgmons (4): n; s, 3; g Analvsis Skills: (For both the general case and the example producﬂon function} 1, Reduce the model to an immsive form, 2. Find the two steady states for the intensive form model. 3, Use a diagram to illustrate changes in the steady state, 4, Use a diagram to examine the slebility of‘the steady states fol the intensive form model,
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