MRW_steady_state function

Mankiw-Romer-Weil Growth Model Steady State

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

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.

Returns

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

Examples

MRW_steady_state(gamma = .005)

Author(s)

Pedro Cavalcante Oliveira, Department of Economics, Fluminense Federal University