Given (5), derive the kt+1-equation and determine the steady state solution(s) for the capital intensity

Consider a two-period OLG model with logarithmic preferences, i.e. the dynamics of the capital intensity is governed by kt+1=(1+)(1+n)wt where wt represents the wage rate, 00 the population's growth rate. Furthermore the production function is specified as Yt=A[Kt+(1)Lt]1 Assume that =0.5,=1,A=25,n=1.097, and =0.3. Consider a two-period OLG model with logarithmic preferences, i.e. the dynamics of the capital intensity is governed by kt+1=(1+)(1+n)wt where wt represents the wage rate, 00 the population's growth rate. Furthermore the production function is specified as Yt=A[Kt+(1)Lt]1 Assume that =0.5,=1,A=25,n=1.097, and =0.3