4/2/09

4.3 Second Order Taylor Expansions (Part 2)

4 comments:

  1. we are asked to make explicit the numerical value of every coefficient. My kstar(the steady state one) depends on beta, but we don't have a value for it. Is it missing or should I just leave beta in the final formula? Thanks
    Eleonora

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  2. Another typo! Please solve the problem for alpha=0.5, beta=0.9, and delta=0.1. I am sorry again :-((

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  3. here we are asked to solve a stochastic model but we do not have there is no data of the stochastic process, is there a typo? should we solved just a deterministic case?
    Thanks
    Lian

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  4. Hi, Lian!
    In the latest version of Problem Set 4 you are ask to solve a deterministic model. There are no shocks in any of the functions. Please read the question carefully and get back to me if you still disagree.

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