《上海交通大学 宏观经济学 新古典增长理论讲义》.pptVIP

* * * * * * Table 8-2 on p.217 * * * * * * * * * * * * * * * * * * Suggestion: give your students 3-5 minutes to work on this exercise in pairs. Working alone, a few students might not know to start by setting ?k = 0. But working in pairs, they are more likely to figure it out. Also, this gives students a little psychological momentum to make it easier for them to start on the end-of-chapter exercises (if you assign them as homework). (If any need a hint, remind them that the steady state is defined by ?k = 0. A further hint is that they answers they get should be the same as the last row of the big table on the preceding slide, since we are still using all the same parameter values.) * Next, we see what the model says about the relationship between a country’s saving rate and its standard of living (income per capita) in the long run (or steady state). An earlier slide said that the model’s omission of G and T was only to simplify the presentation. We can still do policy analysis. We know from Chapter 3 that changes in G and/or T affect national saving. In the Solow model as presented here, we can simply change the exogenous saving rate to analyze the impact of fiscal policy changes. * * Graph to be updated for final version of this PowerPoint presentation. * * * Students sometimes confuse this graph with the other Solow model diagram, as the curves look similar. Be sure to clarify the differences: On this graph, the horizontal axis measures k*, not k. Thus, once we have found k* using the other graph, we plot that k* on this graph to see where the economy’s steady state is in relation to the golden rule capital stock. On this graph, the curve measures f(k*), not sf(k). On the other diagram, the intersection of the two curves determines k*. On this graph, the only thing determined by the intersection of the two curves is the level of capital where c*=0, and we certainly wouldn’t want to be there. There are no dynamics in this graph,