ECON 602 Final Exam
经济期末代考 Please find the endogenous saving rate based on the (5). How does the saving rate change when α gets larger? What is the economic
Question 1 (65 points) 经济期末代考
Consider an optimal growth model with the representative consumer’s preference is given by
where ct
is the consumption per capita and the future utility (t+1) discounted at the rate β. The production function is
, where Kt is the aggregate capital and Lt is the labor. The model also includes
National income identity:
where It is the aggregate investment.
Capital accumulation:
Labor dynamics:
where n is the growth rate of population
(1) Please derive the budget constraint in per capita term for the consumer who maximizes her lifetime utility. (5 points)
(2) Please write down the maximization problem of the representative consumer, write down the Lagrangian, and derive the first-order conditions. (10 points)
(3) Please derive the Euler’s equation and find the capital per capita in the steady state based on the modified Golden-rule. (10 points)
(4) Please compare the capital per capita in the steady state with the one
we got based on the Solow model. Which one is larger? What is the economic intuition behind that? (10 points)
(5) Suppose the consumption per capita ct and the capital per capita kt+1 are proportional to the output per capita k1−αt. Please find the closed form solutions for ct and kt+1. (You may define the relevant parameters by yourself.) (10 points)
(6) Please find the endogenous saving rate based on the (5). How does the saving rate change when α gets larger? What is the economic intuition behind that? (10 points)
(7) We know that the optimal growth model cannot explain the fluctuations in the important economic indicators. Please talk about your idea about how to improve the modeling in terms of capturing that and why. (10 points)
Question 2 (15 points)
We found all the real variables are not related to money supply and interest rate in Lecture 5. Please talk about the policy implication and the potential role of the central bank in such an economy.
Question 3 (20 points) 经济期末代考
Please discuss the differences between the Quantity theory of money, the Baumol-Tobin model, and the Keynesian theory of money demand regarding what determines money demand. Why would inflation hurt consumer’s surplus? Please talk about it in detail.
更多代写：
发表回复
要发表评论，您必须先登录。