Equilibrium Growth, Inflation, and Bond Yields - Duke University's ...

a
y−k
c−k
6
5
4
3
Technology Shock (! > 0)
2
0 20 40 60
6
4
2
0
−2
0 20 40 60
3
2
1
0
−1
0 20 40 60
quarters
Figure 2: Level Dynamics
i−k
l
s−n
15
10
5
0
Technology Shock (! > 0)
−5
0 20 40 60
1.5
1
0.5
0
−0.5
0 20 40 60
10
8
6
4
2
0 20 40 60
quarters
This figure shows quarterly log-deviations from the steady state for the benchmark endogenous growth model ENDO
1 (solid line) and the exogenous growth model with a deterministic trend EXO 1 (dashed line) from a one standard
deviation shock to productivity. All deviations are in annualized percentage units.
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