ECON 3020

Spring 2013

Dr. Tufte

Homework 10

Due: at the start of class on Friday, April 19.

I have a bunch of students that have already turned in Homework 9. So is Homework 10 if you want to get started on it early.

Continue working with the spreadsheet you used for Homeworks  8 and 9.

The point of question 3 from Homework 9 is to show that you can check the algebra that we do in class or in the handbook by coding both sides of an equation into a spreadsheet.

1) Check the intensive capital accumulation that we derived in class on Friday (or that you can find in the handbook) by putting one side of it into column R and the other side into column S. If you’ve done it right, the two columns should be equal.

2) Check the formula for the steady state capital-to-labor ratio and output-to-labor ratio (to be derived in class on Monday, or you can copy them out of the handbook) by coding them into the column to the right of where you put the capital-to-labor and output-to-labor ratios for year 400 (this is probably M7 and M8). If you’ve done it right, the values in year 400 should be very close to the steady state values.