t
as the share of K type machines in the jibe capital stock in period t
k t
i.e.
?t =
K K = c K + Kt Kt
k t
k t
and let ? t , the policy parameter recoil the desired division of investment (the
incremental capital stock) into K and C type machines i.e.

?t =
?K tk ?K tk ?K tk = = . ?Ktk + ?K tc ?K t It
Assuming ? and ? i (i = c,k), the inverse of the capital output ratio in any sector as given in any period, the ladder output levels of capital and consumer goods can be determined. Simplifying notation by omitting the subscript t , we obtain the following output equations : Ct = ?c. ? c = ?c.(1-? t).K , in period t………………………………………(10) It = ?k Kk = ?k.? t.K , in period t……………………………………………….(11) Y t = Ct + It = [?k.? t + ?c.(1-? t)]K , in period t……………………………(12) It / Y t = ?k.? t.K / [?k.? t + ?c.(1-? t)]K In a planned economy,all savings are invested ex ante. Thus, It /...If you want to get a full essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment