My Math Forum  

Go Back   My Math Forum > Science Forums > Economics

Economics Economics Forum - Financial Mathematics, Econometrics, Operations Research, Mathematical Finance, Computational Finance


Reply
 
LinkBack Thread Tools Display Modes
November 7th, 2012, 08:40 AM   #1
Newbie
 
Joined: Nov 2012

Posts: 2
Thanks: 0

Macroeconomics 3 - need help with an excercise

1 Problem sets 2 and 3
1. Imagine a Ramsey type of model, where we introduce a human capital
into the model. The production function is given by:
Yt = K K
t H H
t ;
where K < 1; H < 1; and K + H < 1: The laws of motion for the two
types of capital are:
Kt+1 = Kt(1 .. K) + IK;t;
Ht+1 = Ht(1 .. H) + IH;t:
The remainder of the setup is the same as during your lectures. The
economy is closed, so the aggregate resource constraint is:
Yt = Ct + IH;t + IK;t
a. Write the Bellman equation and determine the Euler equation! Com-
ment on both!
b. Determine the steady state of this economy!
c. What does it depend on and how?

Best regards
Tilen is offline  
 
Reply

  My Math Forum > Science Forums > Economics

Tags
excercise, macroeconomics



Thread Tools
Display Modes


Similar Threads
Thread Thread Starter Forum Replies Last Post
Macroeconomics 3 - need help with an excercise Tilen Economics 0 November 7th, 2012 08:45 AM
Excercise: A set of sequences Bvdijk Linear Algebra 1 September 8th, 2012 03:22 AM
Dirac theorem related excercise becko Applied Math 1 July 2nd, 2010 10:26 AM
Noether and artin ring, module (Difficult Excercise) kien Abstract Algebra 0 November 2nd, 2008 08:47 AM





Copyright © 2019 My Math Forum. All rights reserved.