Timing of capital in two sector economy

Posty: 10
Rejestracja: 25 sty 2018, o 15:40

Timing of capital in two sector economy

Postautor: faelanstevie » 28 kwie 2018, o 13:01

Hello all,

I am building a two-sectoral model, and I have a question about the timing of sectoral-capital variables: In my model, T and N are sectors, hence kT is capital in sector T and kN is capital in sector N. Then, I assume that the economy's aggregate capital is simply: k = kT + kN.
However, I assume only one law of motion for aggregate capital such that: k = (1-delta)*k(-1) + i - written in Dynare language. It is clear to me that k is a predetermined variable and should be treated as such in the code, however I am not very sure how kT and kN should be treated. As predetermined, or as normal ones?

Please help

I didn't find the right solution from the internet.

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Posty: 26
Rejestracja: 3 lut 2018, o 05:29

Re: Timing of capital in two sector economy

Postautor: mukeiei » 3 maja 2018, o 06:13

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