3 Mathematics of Change II

In this assignment we will build a more sophisticated growth modeland look at its properties. The model will be the growth model by Van Geert (1991 etc.) as discussed in the book chapter you read. If your are experienced in R or Matlab you can try to code the models following the hints in section 2.3.

The growth model by Van Geert (1991)

The growth model by Van Geert has the following form:

\[\begin{equation} L_{t+1} = L_t * (1 + r - r * \frac{L_t}{K}) \tag{3.1} \end{equation}\]

Note the similarities to Equation (2.2), the (stylized) logistic map.