Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
Download
Standard view
Full view
of .
Look up keyword
Like this
5Activity
0 of .
Results for:
No results containing your search query
P. 1
Capital Markets- Macro Economic Analysis

Capital Markets- Macro Economic Analysis

Ratings:
(0)
|Views: 65|Likes:
Capital Markets- Macro Economic Analysis
Capital Markets- Macro Economic Analysis

More info:

Published by: Balaji.S (ACA) Srirangam on Jul 08, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less

12/10/2012

pdf

text

original

 
FIN 30220:MacroeconomicAnalysis
Capital Markets
 
Recall that production is a function of labor, capital and technology
 I  K  K 
+=
)1('
δ 
Tomorrow’scapital stockRemainingportion of currentcapital stockAnnual Depreciation RatePurchases of NewCapital
),,(
L K  A F 
=
Capital Markets determine the evolution of the capital stock over time
 
t = 0t = 1
),,(
*
 L K  A F  y
=
Capital Stock =
 K 
 A
Productivity =
 L
 pw
)(
 NLI 
 s
*
      
 pw
*
 L
),(
 A
Labor MarketsDetermineemployment
Capital Stock =
'
 K 
'
 A
Productivity =
 NX G I  y
G
+++=
Production is allocated tovarious uses
G
 I  K  K 
+=
)1('
δ 
New capital isadded to existingstockThe labor marketin t=1 begins
The US Economy

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->