Question
Use calculator to model the the German economy: Obtain the data for the German economy from the Maddison Project Database. Add another column of dates
Use calculator to model the the German economy: Obtain the data for the German economy from the Maddison Project Database.
Add another column of dates with 1946 cell N36 and prior and subsequent dates listed in cells N26 through N86. We will approximate the shocks in 1945 and 1946 by a single shock in 1946.
Add the Maddison data for Y (t)/L(t) in Germany in column O.
Add the Maddison data to your graph.
Use the parameter values of s = 0.118, gE = 0.022, gL = 0.03, = 0.0638 and = 0.29. Vary the initial value of E until you get a good fit by eye. Your solution for this question is (i) a screenshot of your graph and (ii) your estimate of the shock to K(t)/L(t).
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