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I need help with doing this. The numbers go as follows alpha = 0.4 s = 0.5 depreciation = 0.02 population growth = 0.08 technology
I need help with doing this. The numbers go as follows
alpha = 0.4
s = 0.5
depreciation = 0.02
population growth = 0.08
technology growth rate = 0.04
1. Set up the parameters of the model: Somewhere on your sheet, input the following numbers as values for each parameter. We will use numbers on your student ID to give each of you a unique setup (if any number is a 0, skip it and move to the next number and continue from there). We will assume a Cobb-Douglas production function , = A K*L '~ a) Set capital's share of income a = 0.X where X is the first number on your student ID divided by 2 (round to the nearest whole number). b) Set the saving rate s = (.X where X is the second number of your student ID c) Set the depreciation rate 6 = (0.0X where X is the third number of your student ID d) Set the population growth rate 7 = (.0X where X is the fourth number of your student ID e) Set the technology growth rate y = 0.0X where X is the fifth number of your student ID. Calculate using your values for y and a. Calculate steady state capital per effective worker, output per effective worker, and consumption per effective worker by hand. Set the initial level of technology A, = 1 and L, = 1,000. Set k, equal to half its steady state value that you calculated in 2. Put these three values in the first row of three separate columns in your spreadsheet. Using Excel formulas (i.e. not calculating by hand), calculate y,), , k0= Yo Co Ko Y, and C, putting each in the first row of their own column in your spreadsheet (you should now have 11 columns filled in total). You should be able to calculate all of these variables using l}, A~, L., and parametersStep by Step Solution
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