Suppose that we have a standard Solow model with a Cobb-Douglas production function. The central equation of the model is as follows: kt+1 = sAkα t + (1 − δ)kt . Consumption per worker is given by: ct = (1 − s)Akα t . (a) Solve for an expression for the steady state capital stock per worker. In doing so, assume that the level of productivity is fixed at some value A.
The detailed step by step and appropriate mathematical manipulation for the expression for the steady state capital stock per worker is as shown in the attachment.
