Recon (version 0.3.0.0)

MRW_steady_state: Mankiw-Romer-Weil Growth Model Steady State

Description

This function computes steady state income, capital and human capital per worker given relevant parameters according to the MRW model.

Usage

MRW_steady_state(n = 0.01, g = 0.01, alpha = 0.33, beta = 0.33,
  sk = 0.01, sh = 0.01, delta = 0.01, gamma = 0)

Arguments

n

is population growth rate. Defaults to .01.

g

is the technological growth rate. Defaults to .01.

alpha

is capital-output elasticity. Defaults to .33 as estimated by Mankiw, Romer and Weil.

beta

is the human capital-output elasciticy. Defatults to .33 as estimated by Mankiw, Romer and Weil.

sk

is the savings rate devoted to physical capital. Defaults to .01.

sh

is the savings rate devoted to human capital. Defaults to 0.1.

delta

is the physical capital stock's depreciation rate. Defaults to .01.

gamma

is the human capital stock's depreciation rate. Defaults to 0.

Value

List with steady state capital, human capital and income per capita

Examples

# NOT RUN {
MRW_steady_state(gamma = .005)


# }