diff --git a/lectures/scalar_dynam.md b/lectures/scalar_dynam.md index 18c8568c..5926a3f6 100644 --- a/lectures/scalar_dynam.md +++ b/lectures/scalar_dynam.md @@ -220,11 +220,12 @@ For example, in a later lecture {doc}`solow`, we will study the Solow-Swan growt ```{math} :label: solow_lom2 -k_{t+1} = s z k_t^{\alpha} + (1 - \delta) k_t +k_{t+1} = s A k_t^{\alpha} + (1 - \delta) k_t ``` -Here $k$ is the per capita capital stock and $s, z, \alpha, \delta$ are positive -parameters with $0 < \alpha, \delta < 1$. +Here $k=K/L$ is the per capita capital stock, $s$ is the saving rate, $A$ is the total factor productivity, $\alpha$ is the capital share, and $\delta$ is the depreciation rate. + +All these parameter are positive and $0 < \alpha, \delta < 1$. If you try to iterate like we did in {eq}`sdslinmodpath`, you will find that the algebra gets messy quickly.