ECONOMIC GROWTH
Spring 2016

Errata to the exercise problems
(continually updated)

19/3    Problem II.2.d):    In the hint, last line, k-tilde should be x.

  Problem III.3, eq. (2):  From the point of view of empirical realism, the parameter inequality "ε ≤ 1" should be added.

24/4    Problem VII.10.g):    "dY/dx = alpha*Y/K"    should read    "dY/dx_j = alpha*Y/K".

  Problem VII.11, last line before b):    "...is a BGP"    should read    "...is a BGP with L_A > 0 for all t".

 Problem VII.12.d):    Replace "from d)" with "from e)" and delete "combined with e) of that problem".

29/4    Problem VII.10.g):    "= K^alpha*(A*L)^(1-alpha)"    should read    "= K^alpha*(A*L_Y)^(1-alpha)".

30/4    Problem VII.10, p. 1, line 10 from below:    "from a national-income point of view"    should read    "from a production point of view". Explanation: Like for instance car engines, the raw capital goods are not finished goods; they get a last but important "touch" through the transformation into specialized capital goods in Sector 2. Nevertheless, from a national-income point of view the raw capital goods are in fact final goods according to the definition of final goods as goods (and services) used for consumption or investment in the economy (or net exports in an open economy). In our preferred interpretation of the model, the raw capital goods are bought by Sector-2 firms and thus constitute the capital investment by these firms.  

Link to exercise class.