State (a): Two stable steady-states State (b): Fragile economic booms followed by stagnation trap Even in this case, economy may fluctuate forever. k+1, そ身 k k k k State (c): Economy can bounce around infinitely between k' and k" without converging. ke+1 4 State (d): Animal spirits play an important role when economic activity is stagnant. K+14 kM. `k k k k Question 1: Consider the functionN(kt+1) = "t+1, where s, = s(r+1) = s(r(kt+1)). %3D St Differentiate the function N(kt+1) with respect with k+1, and express the result using dlog(st) and dlog(1+rt+1) dlog(1+rt+1) dlog(kt+1)
State (a): Two stable steady-states State (b): Fragile economic booms followed by stagnation trap Even in this case, economy may fluctuate forever. k+1, そ身 k k k k State (c): Economy can bounce around infinitely between k' and k" without converging. ke+1 4 State (d): Animal spirits play an important role when economic activity is stagnant. K+14 kM. `k k k k Question 1: Consider the functionN(kt+1) = "t+1, where s, = s(r+1) = s(r(kt+1)). %3D St Differentiate the function N(kt+1) with respect with k+1, and express the result using dlog(st) and dlog(1+rt+1) dlog(1+rt+1) dlog(kt+1)
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter4: Eigenvalues And Eigenvectors
Section4.6: Applications And The Perron-frobenius Theorem
Problem 65EQ
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