Posted on Categories:Macroeconomics, 宏观经济学, 经济代写

# 经济代写|宏观经济学代考Macroeconomics代写|PECO512 Transitions in the Example Economies

## avatest™帮您通过考试

avatest™的各个学科专家已帮了学生顺利通过达上千场考试。我们保证您快速准时完成各时长和类型的考试，包括in class、take home、online、proctor。写手整理各样的资源来或按照您学校的资料教您，创造模拟试题，提供所有的问题例子，以保证您在真实考试中取得的通过率是85%以上。如果您有即将到来的每周、季考、期中或期末考试，我们都能帮助您！

•最快12小时交付

•200+ 英语母语导师

•70分以下全额退款

## 经济代写|宏观经济学代考Macroeconomics代写|Transitions in the Example Economies

We have so far ignored the problem of transitions in order to concentrate on steady-state behavior. But transition dynamics, describing the path that capital, consumption and the interest rate take as an economy transitions from low capital to the steady state capital level can be extremely interesting. In this subsection we will study transition dynamics by numerically simulating them on a computer.

Consider an example economy in which $G=0.4, \phi=0.1, \alpha=0.25, \rho=0.075, \delta=0.1$ and $\beta=1 /(1+\rho)$. Using the technology from equation (BC1), the steady-state capital level is $K_{\mathrm{ss}}=1.6089$, using the better technology from equation (BC2), the steady-state capital level is $K_{\mathrm{ss}}=2.2741$. Notice that, since $G=0.4$, government spending as a fraction of output in these example economies is $0.3436$ and $0.3033$, respectively.

What happens if we endow the representative consumer with an initial capital stock $K_0=$ $0.03$, which is far below the eventual steady-state level? We know generally that there will be growth to the steady-state, but little more.

The evolution of the capital stock under both assumptions about the government spending technology is plotted in Figure (12.1). The solid line gives the evolution with the highreturn government spending technology (that is, equation (BC2)), while the dotted line gives the evolution with the low-return technology (that is, equation (BC1)). Notice that the economy based on equation (BC2) is initially poorer and slower-growing than the other economy. This is because, at low levels of capital, government spending is not very productive and is a serious drag on the economy. As capital accumulates and the complementarities with government spending kick in, growth accelerates and the economy based on equation (BC2) surpasses the economy based on equation (BC1).

In the same way, the time path of consumption is plotted in Figure (12.2). Finally, the real interest rate in these economies is plotted in Figure (12.3). For more about how to calculate the real interest rate in these models, please see the next section.

## 经济代写|宏观经济学代考Macroeconomics代写|The Real Interest Rate

Now we turn our attention to the effect of permanent changes in government spending on the equilibrium real interest rate in this model. Recall that in infinite-horizon capital accumulation models, like the one we are studying here, it usual to assume there is a closed economy, so the representative household does not have access to a bond market. In this setting, the equilibrium interest rate becomes the interest rate at which the household, if offered the opportunity to use a bond market, would not do so. In other words, there is, as usual, no net borrowing or lending in a closed economy. We will refer to this condition as a market-clearing condition in the bond market, or simply market-clearing for short.

We shall see that, during the transition period while capital is still being accumulated, the interest rate is decreasing in the capital stock. At the steady state, however, when consump-tion is constant, the equilibrium interest rate will just be $\rho$, the discount rate. Because permanent changes in government spending lead eventually to a new steady-state, at which consumption is constant, permanent changes in the level of government spending will not affect the equilibrium interest rate at the steady state.

# 宏观经济学代写

## 经济代写|宏观经济学代考Macroeconomics代写|The Real Interest Rate

avatest.org 为您提供可靠及专业的论文代写服务以便帮助您完成您学术上的需求，让您重新掌握您的人生。我们将尽力给您提供完美的论文，并且保证质量以及准时交稿。除了承诺的奉献精神，我们的专业写手、研究人员和校对员都经过非常严格的招聘流程。所有写手都必须证明自己的分析和沟通能力以及英文水平，并通过由我们的资深研究人员和校对员组织的面试。

## MATLAB代写

MATLAB 是一种用于技术计算的高性能语言。它将计算、可视化和编程集成在一个易于使用的环境中，其中问题和解决方案以熟悉的数学符号表示。典型用途包括：数学和计算算法开发建模、仿真和原型制作数据分析、探索和可视化科学和工程图形应用程序开发，包括图形用户界面构建MATLAB 是一个交互式系统，其基本数据元素是一个不需要维度的数组。这使您可以解决许多技术计算问题，尤其是那些具有矩阵和向量公式的问题，而只需用 C 或 Fortran 等标量非交互式语言编写程序所需的时间的一小部分。MATLAB 名称代表矩阵实验室。MATLAB 最初的编写目的是提供对由 LINPACK 和 EISPACK 项目开发的矩阵软件的轻松访问，这两个项目共同代表了矩阵计算软件的最新技术。MATLAB 经过多年的发展，得到了许多用户的投入。在大学环境中，它是数学、工程和科学入门和高级课程的标准教学工具。在工业领域，MATLAB 是高效研究、开发和分析的首选工具。MATLAB 具有一系列称为工具箱的特定于应用程序的解决方案。对于大多数 MATLAB 用户来说非常重要，工具箱允许您学习应用专业技术。工具箱是 MATLAB 函数（M 文件）的综合集合，可扩展 MATLAB 环境以解决特定类别的问题。可用工具箱的领域包括信号处理、控制系统、神经网络、模糊逻辑、小波、仿真等。