Question
We will assume a Cobb-Douglas production function Y = A*K^*L^(1), =0.6, depreciation rate=0.05, population growth rate=0.04, technology growth rate=0.04, what is the saving rate to
We will assume a Cobb-Douglas production function Y = A*K^*L^(1), =0.6, depreciation rate=0.05, population growth rate=0.04, technology growth rate=0.04, what is the saving rate to the value that optimizes steady state consumption?
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Macroeconomics Principles Applications and Tools
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
9th edition
978-0134089027, 134089022, 978-0134420684
