×

### Let's log you in.

or

Don't have a StudySoup account? Create one here!

×

or

## TRANS EAST EUROPE

by: Dr. Janiya Bernier

30

0

2

# TRANS EAST EUROPE ECON 161

Dr. Janiya Bernier

GPA 3.77

Staff

These notes were just uploaded, and will be ready to view shortly.

Either way, we'll remind you when they're ready :)

Get a free preview of these Notes, just enter your email below.

×
Unlock Preview

COURSE
PROF.
Staff
TYPE
Class Notes
PAGES
2
WORDS
KARMA
25 ?

## Popular in Economcs

This 2 page Class Notes was uploaded by Dr. Janiya Bernier on Thursday October 22, 2015. The Class Notes belongs to ECON 161 at University of California - Berkeley taught by Staff in Fall. Since its upload, it has received 30 views. For similar materials see /class/226719/econ-161-university-of-california-berkeley in Economcs at University of California - Berkeley.

×

## Reviews for TRANS EAST EUROPE

×

×

### What is Karma?

#### You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 10/22/15
Excel File GoldenRulexls The Golden Rule Level of Capital A 39 quot Review We are trying to explain economic growth The Solow Model says economies go to a steadystate that depends on A at s and 5 according to the following equilibrium condition Aksfk6k0 That means when the additions to capital per worker sfk equal the depreciation in capital per worker 5k the economy is neither growing nor contracting The same k is generating the same y output per worker and c consumption per worker and i investment per worker s the savings rate or fraction of output not consumed is extremely important in this model The idea is that 5 is the same xed constant across countries1 but s can and does vary from economy to economy Thus a given s will result in the economy reaching a particular level of steadystate k y c and i Comgara trve Statics Analgrs ofs GoldenRulexls offers Two Ways to do Comparative Statics 1 Compare one sheet to the another 1 Comp Statics button 2 Compare both on the same sheet 2 Comp Statics button Wit1 numerical sr39mula tron Akmust be close to zero 13911 order to compare equ rbrrum positions Via Algebra we have a third way to do comparative statics The reducedform is 1 k 3 mil k SA Since y Aka that means the reducedform for y is D will zA y 39LKSA J39 mi y Aim In turn this gives us c and i 5 71 C l A l S ksA You take the derivative of any of these expressions with respect to s and then evaluate the result 1 To ponder 5 may change over time Think about computers versus say shovels Do computers wear out faster Do they wear out faster and faster over time Think about it 3lfR9rpGLvdoc Page 1 of2 7716 Golden Rule Now we know that k y c and i depend upon s and the other exogenous variables Increase s and the steadystate values of the endogenous variables change Now suppose an gmniscient gmnipotent ocial planner OOSP had the power to SETS In other words OOSP or Leviathan depending on your political persuasion could choose s and that would determine the steadystate k y c and i values What value of s should be choosen This is an optimization problem We have to set up and solve this optimization problem 1 Setting Up the Problem What are the three elements of an optimization problem 1 Goal max c 2 Endogenous Variable s 3 Exogenous Variables A at and 5 11 Finding the optimal solution 7716 Transition to the SteadySta te Figure 410 With Mankiw s Example s03 for 100 years then s04 for 100 years 5 4 3 y c 2 i 1 O O 50 109 150 200 250 ear i 5K AK 0 50 100 150 200 250 Year GoldenRulexls 3lfR9rpGLvdoc Page 2 of2

×

×

### BOOM! Enjoy Your Free Notes!

×

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

## Why people love StudySoup

Bentley McCaw University of Florida

#### "I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Kyle Maynard Purdue

#### "When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the material...plus I made \$280 on my first study guide!"

Jim McGreen Ohio University

#### "Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Parker Thompson 500 Startups

#### "It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!
×

### Refund Policy

#### STUDYSOUP CANCELLATION POLICY

All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email support@studysoup.com

#### STUDYSOUP REFUND POLICY

StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here: support@studysoup.com

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to support@studysoup.com