Excel Problem. Suppose that you have a standard Solow model with a Cobb-Douglas production function.

Excel Problem. Suppose that you have a standard Solow model with a Cobb-Douglas production function. The central equation of the model can be written: (a) Analytically solve for an expression for the steady state capital stock per worker. (b) Suppose that A = 1 and is fixed across time. Suppose that s = 0.1 and _ = 0.10. Suppose that _ = 1/3. Create an Excel file. Using your answer from the previous part, numerically solve for k _ using these parameter values. (c) Create a column in your Excel sheet corresponding to periods. Let these periods run from period 1 to period 100
»  Excel Problem. Suppose that you have a standard Solow model with a Cobb-Douglas production function. The central equation of the model can be written: (a) Analytically solve for an expression for the steady state capital stock per worker. (b) Suppose that A = 1 and is fixed across time. Suppose that s = 0.1 and _ = 0.10. Suppose that _ = 1/3. Create an Excel file. Using your answer from the previous part, numerically solve for k _ using these parameter values. (c) Create a column in your Excel sheet corresponding to periods. Let these periods run from period 1 to period 100. Suppose that the capital stock per worker equals its steady state in period 1. Use the central equation of the Solow model to compute the capital stock in period 2, given this capital stock in period 1. Then iterate again, computing the capital stock in period 3. Continue on up until period 9. What is true about the capital stock in periods 1 through 9 when the capital stock starts in the steady state in period 1? (d) Suppose that in period 10 the saving rate increases to 0.2 and is expected to forever remain there. What will happen to the capital stock in period 10? (e) Compute the capital stock in period 11, given the capital stock in period 10 and the new, higher saving rate. Then iterate, going to period 11, and then period 12. Fill your formula down all the way to period 100. Produce a plot of the capital stock from periods 1 to 100. (f) About how many periods does it take the capital stock to get halfway to its new, higher steady state value when s increases from 0.1 to 0.2?

»

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more