As an Economics Masters student I have done many of this before but never quite felt I fully understood some of the topics that I just wanted to say a huge thank you for your videos - your explanations are so clear!
this is my first time commenting on any youtube video ever. I would like to thank you from the bottom of my heart. you are the reason I am passing my economic growth class. I wish you nothing but the best in life.
Sounds good to me. In fact I'm pretty sure that's how Blanchard's Macroeconomics text teaches it. You should post a video response. I posted this thing 6 months ago for a class I taught in the Fall, and I still get a ton people looking for help with the golden rule level of savings. Seems like a lot of people would benefit from your help.
My nation is motivated mostly by the notation Mankiw's intermediate Macro text uses. But I read through Blancard and Jones' texts as well in prep for the videos too.
That was extremely helpful! I have had two lecturers who couldn't explain this simple concept to me over 2 hours. I always thought it was some complicated stuff. What a waste of time university can be sometimes...
Hello Hello, I'm pretty sure what I have there is right. Notice that the \delta is in the denominator, ie (1/x = x^(-1) ). Since to simplify things I moved \delta up to the numerator, I need to make \delta's exponent negative. The algebra is what always get's'ya. So let me know if I'm still wrong.
i am from bochum too... can you help me solve this in more easy way.. coz i really get it hard to understand. i am weak in economics but this subject is compulsory in my major (MADM) . i have no choice
Your videos are awesome. Very detailed and methodical explanations. I was just wondering which main textbook you're using for these videos? (Since different Macro textbooks use different notations and whatnot). Thanks!
He made a mistake in: we want to max c, wrt s second line, at last: 1/(1-alpha) - (1-alpha)/(1-alpha) = alpha. where he wrote -alpha. In the third last line he again writes -alpha, but it really is alpha. Then it finally does simplify to s^*.
Sorry Ryan, no. I started notes (based on Jones and Blancard Macroeconomics texts, I really liked those), but never organized it well enough for a video series. I'd encourage checking out those texts if you don't like whichever text you are working with.
I do think you made a mistake in your calculation: When you write out the equation to maximise consumption, the exponent 1/1-alpha becomes for no (apparent) reason alpha/1-alpha. Also, when solving for s, the third line from the end does not make any sense. Can you check whether the calculations are really right ?
On the second, I think that's just algebra. I feel I actually went a bit overboard showing how the exponent simplifies. You might check out those step by step simplification software packages (e.g. wolframalphapro) for help with that.
using math to get to the s_g-* should not be that complex. you already got the k_t-*, then you want to maximize the c_g-*, you don't need to take s_g* into that equation so early. c_g-*=y_t - i_t =f(k_g-*) - δk_g-* do the first derivative of k_g-*, we get: (c_g-*)' = αk_g-*^(α-1) - δ in order to find max(c_g-*), we make (c_g-*)' = 0 αk_g-*^(α-1) = δ k_g-* = (δ/α)^(1/α-1) Finally, we had 1. k_g-* = (δ/α)^(1/α-1) 2. k_t-* = (s/δ)^(1/1-α) in order to get s_g-*, we make 1.=2. we can get s_g-* easly =α
As an Economics Masters student I have done many of this before but never quite felt I fully understood some of the topics that I just wanted to say a huge thank you for your videos - your explanations are so clear!
studying for exams right now, youre truly a master jedi of econ. I love you
I listened to my professor for two hours and got nothing in my head. Your video made me clear in 20 minutes. Thanks a lot, really appreciate it.
this is my first time commenting on any youtube video ever. I would like to thank you from the bottom of my heart. you are the reason I am passing my economic growth class. I wish you nothing but the best in life.
You are awesome!!! You did a better job than my professor in explaining Solow Model!!!
Sounds good to me. In fact I'm pretty sure that's how Blanchard's Macroeconomics text teaches it.
You should post a video response. I posted this thing 6 months ago for a class I taught in the Fall, and I still get a ton people looking for help with the golden rule level of savings. Seems like a lot of people would benefit from your help.
My nation is motivated mostly by the notation Mankiw's intermediate Macro text uses. But I read through Blancard and Jones' texts as well in prep for the videos too.
That was extremely helpful! I have had two lecturers who couldn't explain this simple concept to me over 2 hours. I always thought it was some complicated stuff. What a waste of time university can be sometimes...
You are welcome Aurora!
Thanks from Karlsruhe, Germany
You're amazing... Thank you for going into such detail... It really does help... I hope you're still making videos!!!! (Sri Lanka)
Please explain the final exponent of s. It seems to me that it is (1-3α) /(1-α).Thanks for these great videos.James
hey these lectures are very helpful for me. good job
Good Job!, Münster, Germany
This is an amazing video! You did a really great job of explaining this. Way better than my professor did, haha. Thank you!
Very good content, now I can understand properly.
This is really useful! thanks so much for your videos!
Cheers old chap, from London
Really good video thanks. It's the morning of my exam so hopefully it sinks in :)
Hello Hello,
I'm pretty sure what I have there is right. Notice that the \delta is in the denominator, ie (1/x = x^(-1) ). Since to simplify things I moved \delta up to the numerator, I need to make \delta's exponent negative.
The algebra is what always get's'ya. So let me know if I'm still wrong.
Awesome, very helpful!!
Thank you, from Germany (RUB BOCHUM)
i am from bochum too... can you help me solve this in more easy way.. coz i really get it hard to understand. i am weak in economics but this subject is compulsory in my major (MADM) . i have no choice
Your videos are awesome. Very detailed and methodical explanations. I was just wondering which main textbook you're using for these videos? (Since different Macro textbooks use different notations and whatnot). Thanks!
can you simply set the derivative of production function to equal the depreciation rate and get k from that?
Please if possible add a series on Harrod-Domar model.
Never thought I'd be listening to an economics lecture by Justin Trudeau
your videos are awesome thanks so much for doing them!
hi, thank you for the video but why is your per capita output function yt=kt^a where is your technology term "A"
You are my hero! Thank you, this is so helpful
why You dnt include population growth(n) and technological progress(g) instead you involve only depreciation rate
HAMIS MIRAJI this model presumes that n and A(g) are constant. y = Y/n, k= K/n
at 16:43 when you calculate s^((-a/1-a)-2a-1/1-a)=a, shouldn't it calculate to become (1-3a/1-a)? which would make s= a^(1-a/1-3a)
I saw that too. You made somehow a mistake, it does not simplify to 1-a/1-a
He made a mistake in: we want to max c, wrt s second line, at last:
1/(1-alpha) - (1-alpha)/(1-alpha) = alpha. where he wrote -alpha.
In the third last line he again writes -alpha, but it really is alpha.
Then it finally does simplify to s^*.
Agreed,took me 5 mins to find to mistake.
Super helpful!!! Thank you so much!
thank you much
Thank you it is really really helpful
what software do you use? thanks for everything
Hey great videos they are helping a lot. Do you by any chance have printable versions of your notes
Awesome!
how come delta k represents investment in the first graph?
thank you
From this, when is an economy then described as dynamically inefficient?
economicurtis, What software are you using to create your graphs?
Just excel. www.dropbox.com/s/8xasd9khixd5kt2/Solow%20SoVeryLow.xlsx?dl=0
Thanks.
Thank you, I appreciate your videos, they really do help foster deeper understanding. Do you have any planned for the Romer model?
Sorry Ryan, no. I started notes (based on Jones and Blancard Macroeconomics texts, I really liked those), but never organized it well enough for a video series. I'd encourage checking out those texts if you don't like whichever text you are working with.
Could you also call the break even investment rate the depreciation rate? Hence why it is dk
I do think you made a mistake in your calculation:
When you write out the equation to maximise consumption, the exponent 1/1-alpha becomes for no (apparent) reason alpha/1-alpha.
Also, when solving for s, the third line from the end does not make any sense.
Can you check whether the calculations are really right ?
ON the first point, note that f(k*_{g}) = (k*_{g})^\alpha
On the second, I think that's just algebra. I feel I actually went a bit overboard showing how the exponent simplifies. You might check out those step by step simplification software packages (e.g. wolframalphapro) for help with that.
for Cg=yt-it Why do you use fkt- delta kt instead of fkt-skt ?? Cuz c=y-it Isn't it=syt??
Nice
Thankkkkkkkkkkkk you!!!!!!!
Your videos are very keep include some lecture notes it up! Besides, it would be so shiny if you
Many thanks, UoY ~ York uni, england
Thanks a lot! University of Surrey, England.
using math to get to the s_g-* should not be that complex.
you already got the k_t-*, then you want to maximize the c_g-*, you don't need to take s_g* into that equation so early.
c_g-*=y_t - i_t
=f(k_g-*) - δk_g-*
do the first derivative of k_g-*, we get:
(c_g-*)' = αk_g-*^(α-1) - δ
in order to find max(c_g-*), we make (c_g-*)' = 0
αk_g-*^(α-1) = δ
k_g-* = (δ/α)^(1/α-1)
Finally, we had 1. k_g-* = (δ/α)^(1/α-1)
2. k_t-* = (s/δ)^(1/1-α)
in order to get s_g-*, we make 1.=2.
we can get s_g-* easly =α
thanks, from geottingen germany, :P
shouldnt the output be y=Ak sub t to the power of alpha
Break a leg.... or good luck!!
Voice is not properly heard
Great content. But, are you ever going to do 5.1, .2 and the rest!!