I would like you to check my Excel work as follows.

Seem I got stuck into the question of how each value changes in each period on Excel spreadsheet.

Assume a Cobb-Douglas production function Yt =At Kt^? Lt^(1??)

a. Set capital's share of income ? = 0.5

b. Set the saving rate s = 0.5

c. Set the depreciation rate ? = 0.05

d. Set the population growth rate ? = 0.04

e. Set the technology growth rate ? = 0.09. Calculate ? (tilde) using your values for ? and ?. ? (tilde) = ?/(1 - ?) = 0.18

Question 1.

Calculate steady state capital per effective worker, output per effective worker, and consumption per effective worker by hand. Set the initial level of technology [10 = 1 and L0 = 1,000. Set [20 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. calibration alpha(a) S delta( S) eta(n) gamma(y) gamma"(y") t k t k t+1 0.5 0.5 0.05 0.04 0.09 0.18 0 1 1.45 1.45 1.53040298 Solow k_t+1 = s*A*k_t^alpha + (1-delta)*k_t 1.53040298 1.54304989 k solves delta*k = s*A*k^alpha f(k_t) = K"(1/2) t A t L t k_t y_t c"_t k t y_t c_t K t Yt C t 1 1,000 1.715 1.30958009 0.65479004 1.715 1.30958009 0.65479004 1715 1309.58009 654.790043 VOUTAWNY 8 10