3. From your simulations find the (approximate and rounded up) number of periods it takes forji 1...
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3. From your simulations find the (approximate and rounded up) number of periods it takes forji 1 to move half the way from its old to its new steady state value. In Exercise 3 you were asked to derive a formula for the half-life, h, given a rate of convergence, A. Relate the half-life you have just found to the one computed from the formula of that exercise, using A."' (1 -a) (n + g + J). Why can there be a (slight) difference between these half-lives?
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Introducing Advanced Macroeconomics: Growth And Business Cycles
ISBN: 9783031200922
1st Edition
Authors: Peter Birch Sørensen, Hans Jørgen Whitta-Jacobsen
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