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Consider a Ramsey-Cass-Koopmans Model that is on its balanced growth path initially at time t = 0. Households have lifetime utility ept In (C(t) )
Consider a Ramsey-Cass-Koopmans Model that is on its balanced growth path initially at time t = 0. Households have lifetime utility ept In (C(t) ) L(t) at. HConsider the following specications: Let initial capital be K0 = 411.7, the initial labour be Ln = 115.3, the number of households be H = 100. In addition, let intertemporal discounting factor be p = .05, the population growth rate be H = .025, the TFP growth rate be 9 = .02, and the production be Cobb-Douglas with at = 1/3.
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