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lectures/growth_in_dles.md

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from quantecon import DLE
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```
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## Common Structure
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## Common structure
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Our example economies have the following features
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and the scalar $\beta$.
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## A Planning Problem
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## A planning problem
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The first welfare theorem asserts that a competitive equilibrium
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allocation solves the following planning problem.
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x_{t+1} = A^ox_t + Cw_{t+1}
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$$
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## Example Economies
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## Example economies
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Each of the example economies shown here will share a number of
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components. In particular, for each we will consider preferences of the
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However, the near-unity endogenous eigenvalue means that these steady
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state values are of little relevance.
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### Example 2: Altered Growth Condition
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### Example 2: altered growth condition
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We generate our next economy by making two alterations to the parameters
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of Example 1.
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econ2.endo, econ2.exo
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```
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### Example 3: A Jones-Manuelli (1990) Economy
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### Example 3: a Jones-Manuelli (1990) economy
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For our third economy, we choose parameter values with the aim of
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generating *sustained* growth in consumption, investment and capital.
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To show the importance of both of these for generating growth, we
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consider the following experiments.
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### Example 3.1: Varying Sensitivity
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### Example 3.1: varying sensitivity
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Next we raise $\lambda$ to -0.7
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econ4.endo, econ4.exo
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```
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### Example 3.2: More Impatience
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### Example 3.2: more impatience
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Next let's lower $\beta$ to 0.94
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