This is Cobb

55 Years Later: Why Douglas Merged With McDonnell

Long time coming: Cobb gets 2nd shutout, 10-plus years after 1st

A firm has a Cobb-Douglas production function q = f(K,L) = KaL1... | Filo

Cobb-Douglas Production Function | Formula, Equation & Example

An economy has a Cobb-Douglas production function of the form: Y=F(K ,L )=AK^α L^(1−α) Y denotes output, K describes the capital stock, L denotes labour force, A is total factor productivity (TFP) and α is the output elasticity of capital. The capital stock evolves according to:Kt − Kt−1 = sYt−1 − δKt−1,where s is the exogenous savings rate, sYt equals investment and δ is the depreciation rate.

Suppose that the production function is Cobb-Douglas. (a) Find expressions for k^*, y^*, and c^* as functions of the parameters of the model, s, n, δ, g, and α(b) What is the golden-rule value of k ? (c) What saving rate is needed to yield the golden-rule capital stock? | Numerade