Home » Consider a model that is identical to the Solow model we presented in class, except for a change in the production technology.

# Consider a model that is identical to the Solow model we presented in class, except for a change in the production technology.

Consider a model that is identical to the Solow model we presented in class,

except for a change in the production technology. In particular, denote the depreciation rate

by , the population growth rate by n, the constant saving rate by s, and TFP by A.

The production function f(k) in this model is S-shaped” and not always concave. In partic-

ular, assume that the production function is (i) concave when 0 < k  k1; (ii) convex when

k1 < k  k2; and (iii) concave again when k > k2.

(a) Plot the production function and the saving curve for this model.

(b) Plot the depreciation line for the model.

(c) Show that the level of  and n may change the number of potential steady states for this

model. In particular, show that there exist a case where only one steady state exists (other

than k = 0), and that there is a case with three potential steady states.

(i) Assume that you start with a slightly lower level of k than the steady state level.

Will the economy converge to that steady state?

(ii) Assume that the economy starts with a slightly higher level of k than the steady

state level. Will the economy converge to that steady state?

## 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:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
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.

### 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.

### 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.