Dynamics in the Solow-Swan growth model

Another Mathematica demonstration: this one visualizes the comparative statics as well as the adjustment dynamics resulting from a parameter change in the Solow-Swan growth model.

I took professor Sorger‘s advanced macro class on growth and business cycle theories last semester, so I noticed that some textbooks (such as Barro/Sala-i-Martin) don’t show the adjustment process of capital, per-capita output, consumption, etc. I think it helps intuition to visualize these variables, which is why I created this demonstration.

You can download the Mathematica notebook (you’ll need either Mathematica or the free Mathematica player to view this), or look at the online version here. (Unfortunately Wolfram changed the demo so only one graph is visible at a time.)

Mathematica demonstration illustrating Melitz’ trade model

Melitz, again. I took a Mathematica class this semester where we had to build a demonstration that could be uploaded to Wolfram’s demonstration project site. I created an animated version of figure 2 from Melitz’ paper (based on the calculations done in one of the Mathematica notebooks presented below), which IMO is well suited to do a comparative statics analysis of autarky and the open economy.

The online demonstration is available here.