ECONOMIC GROWTH
Spring 2015

Errata to lecture notes
(continually updated)
 

18/2 2015
        LN 4, p. 65, first line of (ii):    "g > 0"    should read    "g ≥ 0".  
16/3
        LN 8, p. 120, eq. (8.21): delete "- 1" on the right-hand side of the equation (to obtain consistence with the formulation at p. 116 (the middle) and p. 127-29.
29/3
        LN 9, p. 140, line 2:    "if have"    should read    "if we can write".
            -   ,    -     , line 4:    "we can write"   should read    "we have".
            -   , p. 147, footnote 6, line 1-2:    "and m is a nonnegative number" should be deleted.
30/3
        LN 9, p. 150, line 14:    Delete the complete line, that is, delete "effective discount rate appearing on the right-hand side of (9.21), namely the".
            -   , p. 153, line 1-2:    "Figure ??"    should read    "Figure 1".
            -   , p. 154, line 3:    "is then unknown"    should read    "is the unknown".
            -         -     , line 5 from below:    "Figure ??"    should read    "Figure 1".
20/4
        LN 11, p. 178, line 9-8 from below:    "...+1)H(t)."    should read    "...+1)H(t) along the balanced gorwth path." 
            -          -     , line 7 from below:    "Y(t) = ... "    should read    "Y(t) =  f(k_hat*) ...".  

4/5
        LN 14, p. 248, in the formula at the middle of the page, beta should be replaced by 1-beta and 1-beta should be replaced by beta.
            -     , p. 253, line 5 from below:    "the research flow z_jt"    should read    "the research investment z_jt".
            -     , p. 256, line 3:    "putting one unit of account at the disposal"    should read    "putting finance at the disposal".
            -     ,    -     , line 4:    "the household gets"    should read    "the households get".   
            -     ,    -     , line 5:    "the payoff per time unit"    should read    "the payoff per time unit per unit of account invested".
            -     ,    -     , line 6:    "the household buys a lottery ticket"    should read    "the households buy lottery tickets". 

9/5   
        LN 14, p. 256, right before Section 14.3.4 begins addition of the following paragraph may help understanding what is meant by "loan market" and "interest rate" in the model:  

We see that the obligation of the "borrowing" R&D lab to pay back the principal (possibly with interest) to the investors (the households) is conditional on R&D success. In case of R&D success, the investors get the gross return V_(t), to be shared between them in proportion to their investment. Although such a contract does not fit the notion of a loan in everyday language, in the economics vocabulary it is considered a specific form of a loan and the market for such contracts a specific kind of a "loan market". By diversification, the households can with certainty get the expected rate of return, r_(t), in this market on their saving. We label this rate of return "the interst rate" because it is as if there were a market for safe loans with r_(t) as the interest rate.

        LN 15, p. 276, line 2:      .
            -            -    , line 13 from below:    .

18/5
        LN 16, p. 315, line 1:    Delete "with CES production function".

27/5
        LN 10, p. 161, line 6,    "that a feasible"    should read    "that are feasible".
        LN 13, p. 230, line 3 from below:    "long run even when"    should read    "long run when".

30//5
        LN 10, p. 169, line 11 from below:    "is impossible for any"    should read    "for some".

1/6
        LN 13, p. 220, line 10 and footnote 10:    "(16.29)"    should read    "(13.15)".