Growth rates in the Solow model: Suppose an economy begins in steady state and is characterized by the following parameter values: δ = 0.2, d = 0.1, A = 1, L = 100. Apply your answer to exercise 9 to calculate the growth of per capita GDP. (Hint: Since the economy begins in steady state, its growth rate is initially zero and K = K*.) a) The investment rate doubles. (b) The productivity level rises by 10%.

The Solow Model 2 – Comparative Statics | Marginal Revolution University

This question asks you to use a Solow-style model to investigate some ideas that have been discussed in the context of Thomas Piketty's recent work (see Piketty, 2014 ; Piketty and Zucman, 2014 ; Rognlie, 2015 ). Consider an economy described by the assumptions of the Solow model, except that factors are paid their marginal products (as in the previous problem), and all labor income is consumed and all other income is saved. Thus, C(t)=L(t)[∂Y(t) / ∂L(t)] (a) Show that the properties of the prod

Endogenous Variable and Exogenous Variable: Definition and Classifying

What is the difference between endogenous and exogenous variables, considering the determinates of demand.

What is the difference between an exogenous variable and an endogenous variable in an economic model? Would it ever be useful to construct a model that contained only exogenous variables (and no endogenous variables)? | Numerade