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10 Cards in this Set
- Front
- Back
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Transition Equation (kt+1)
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kt+1 = (1-alp)(1-bet)Atkt^Bet
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Savings by young at time t:
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at+1 = (1-alp)wt
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Savings by young at time t (born at t-1):
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at+1 = (1-alp)wt
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Consumption by young at time t
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Cyt = alp*wt
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Consumption by old at time t
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Cot = (1+rt)at
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Aggregate labor supply at time t
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Lt = N
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Aggregate capital supply at time t
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Kt = Nat
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Wage rate (MPL)
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wt = (1-bet)Atkt^bet
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Real interest rate (MPK)
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rt = betAtkt^bet-1
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Output
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Yt = AtKt^betLt^1-bet
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