Skip to content
New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

[scalar_dynam] add explanation to parameters and add explanation of k #529

Merged
merged 2 commits into from
Jul 23, 2024
Merged
Changes from all commits
Commits
File filter

Filter by extension

Filter by extension

Conversations
Failed to load comments.
Loading
Jump to
Jump to file
Failed to load files.
Loading
Diff view
Diff view
7 changes: 4 additions & 3 deletions lectures/scalar_dynam.md
Original file line number Diff line number Diff line change
Expand Up @@ -220,11 +220,12 @@ For example, in a later lecture {doc}`solow`, we will study the Solow-Swan growt
```{math}
:label: solow_lom2

k_{t+1} = s z k_t^{\alpha} + (1 - \delta) k_t
k_{t+1} = s A k_t^{\alpha} + (1 - \delta) k_t
```

Here $k$ is the per capita capital stock and $s, z, \alpha, \delta$ are positive
parameters with $0 < \alpha, \delta < 1$.
Here $k=K/L$ is the per capita capital stock, $s$ is the saving rate, $A$ is the total factor productivity, $\alpha$ is the capital share, and $\delta$ is the depreciation rate.

All these parameter are positive and $0 < \alpha, \delta < 1$.

If you try to iterate like we did in {eq}`sdslinmodpath`, you will find that
the algebra gets messy quickly.
Expand Down