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Derive the law of motion for the capital stock. Show that it satisfies = , where is a constant that depends only on exogenous parameters.

Derive the law of motion for the capital stock. Show that it satisfies = , where is a constant that depends only on exogenous parameters.

Given:

Y = AKG1

K = (1)sYK

G = Y

Resolved:

K = (1)sYK

K = (1)sAKG1K

K = (1)sAKY1K

K = sAK(1)Y1K

K = sAK(1-)A1K1G(1)(1)

K = K(1)K

Can anyone help me check my answer for this question? Many thanks!

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