Exercise 11.15. In the Romer model presented in Section 11.4, let g C be the growth rate
Question:
Exercise 11.15. In the Romer model presented in Section 11.4, let g∗ C be the growth rate of consumption and g∗ the growth rate of aggregate output. Show that g∗ C > g∗ is not feasible, while g∗ C < g∗ would violate the transversality condition.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: