<p>Could you please help me with the following question:
Suppose the saving rate is $20$%, population increases $3$% annually, and capital depreciates $3.5$% annually. What is the steady state value of per capita consumption. $\alpha = 0.6$</p>

<p>I want to use this formula but we do not know $A$.</p>

<p>$(1-s)A (sA /n + d)^{1/1-α}$</p>

CC BY-SA 3.0
2015-10-13T09:37:07.023Z
I meant I want to use C = (1-s)A (sA /n + d)^(1/1-α)   or should I use this formula  Css = (1 - s) Yss
Alex
CC BY-SA 3.0
2015-10-13T10:37:15.360Z
From the information given above, we do not know either. If you find out what A stands for you will probably know how to solve this yourself, so I am voting to close this question.
Giskard
CC BY-SA 3.0
2015-10-13T10:48:28.093Z
A is for technology,
Alex
CC BY-SA 3.0
2015-10-13T10:49:16.573Z
C is consumption, n is the growth rate of the population, d is the depreciation of capital
Alex
CC BY-SA 3.0
2015-10-13T11:45:25.637Z
You can determine the value of A from the production function.
Giskard
CC BY-SA 3.0
2015-10-13T11:46:21.080Z
Please how do I go about that ?
Alex
CC BY-SA 3.0
2015-10-13T11:56:08.767Z
What did you try ? please give us details of the model and show what you have tried.
optimal control
CC BY-SA 3.0
2015-10-13T12:01:25.793Z
Ok to me the model is Yt = Yt = A * K^α * L^1-α
Alex
CC BY-SA 3.0
2015-10-13T12:02:34.457Z
I'm tryng to determine the steady state value of per capita consumtion C with the following formula  C = (1-s)A (sA /n + d)^(1/1-α)
Alex
CC BY-SA 3.0
2015-10-13T12:36:25.480Z
All I need is a way to find A to be able to use the formula  C = (1-s)A (sA /n + d)^(1/1-α) . Then I can do it on my own. Please.
Alex
CC BY-SA 3.0
2015-10-13T14:19:29.847Z
Alex it is quite unclear what you are asking. You tell us $Y_t = A \cdot K^{\alpha} \cdot L^{1- \alpha}$. If you have a formula for $Y_t$ then you have $A$. Without the formula we don't see how you could have it, there does not seem to be enough information. Perhaps you have a formula like  $Y_t = K^{\alpha} \cdot L^{1- \alpha}$. In this case the value of $A$ is obviously 1.
Giskard
<macroeconomics>
Per capita consumption in the steady state
Alex
# Per capita consumption in the steady state

(Asked by: username_0 on 2015-10-13)

Could you please help me with the following question:
Suppose the saving rate is $20$%, population increases $3$% annually, and capital depreciates $3.5$% annually. What is the steady state value of per capita consumption. $\alpha = 0.6$

I want to use this formula but we do not know $A$.

$(1-s)A (sA /n + d)^{1/1-α}$

**Tags:** macroeconomics
> **Comments:**
> **username_0**: I meant I want to use C = (1-s)A (sA /n + d)^(1/1-α)   or should I use this formula  Css = (1 - s) Yss  
> **username_1**: From the information given above, we do not know either. If you find out what A stands for you will probably know how to solve this yourself, so I am voting to close this question.  
> **username_0**: A is for technology,  
> **username_0**: C is consumption, n is the growth rate of the population, d is the depreciation of capital  
> **username_1**: You can determine the value of A from the production function.  
> **username_0**: Please how do I go about that ?  
> **username_2**: What did you try ? please give us details of the model and show what you have tried.  
> **username_0**: Ok to me the model is Yt = Yt = A * K^α * L^1-α  
> **username_0**: I'm tryng to determine the steady state value of per capita consumtion C with the following formula  C = (1-s)A (sA /n + d)^(1/1-α)  
> **username_0**: All I need is a way to find A to be able to use the formula  C = (1-s)A (sA /n + d)^(1/1-α) . Then I can do it on my own. Please.  
> **username_1**: Alex it is quite unclear what you are asking. You tell us $Y_t = A \cdot K^{\alpha} \cdot L^{1- \alpha}$. If you have a formula for $Y_t$ then you have $A$. Without the formula we don't see how you could have it, there does not seem to be enough information. Perhaps you have a formula like  $Y_t = K^{\alpha} \cdot L^{1- \alpha}$. In this case the value of $A$ is obviously 1.  

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## 0 answers

