<\/div><\/div><\/div><\/figure> 1. Consider the following q problem in continuous time: v[K. 0] = max(), Jet(AF[Ka] - h - x* )at dt subject to 9 = \/t, Ko is given. Here r is the interest rate, and A> 0 is the total factor productivity. Note that in the problem just stated the capital stock cannot be adjusted instantaneously without incurring prohibitive adjust- ment costs. More precisely, if \/, is the amount of capital invested (or dis-invested), then the total cost of investment is given by hat : , where X is a positive constant. (a) Does the model you have a stationary equilibrium? If your answer is affirmative, draw a phase diagram to explain the convergence to the stationary equilibrium. (b) Show that the value of the Hamiltonian - evaluated at each instant t along the optimal traject tory - gives the permanent level of utility, i.e., the permanent level of real income, of the representa- tive agent from instant ton until the end of time",
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"related_book": {
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"isbn": "978-0840037039, 0840037031",
"edition": "15th Edition",
"authors": "Edward J. Vanderbeck",
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"uri": "\/textbooks\/principles-of-cost-accounting-15th-edition-9780840037039",
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"name": "The Authorities Yavuz Altun Powerful Wisdom From Leaders In The Field",
"edition": "1st Edition"
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"question_posted": "2024-06-20 19:05:32",
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