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Write a value function iteration program that draws on grow.m to find the solution to (5.6) ?Solve (5.26), using a version of the stochastic growth model to create the mapping ΨD? Extend the code for the one sector stochastic growth model to solve (5.29). Use the resulting policy functions to simulate the model, and compute moments as a function of key parameters, such as the correlation of the shocks across the sectors. Relate these to observed correlations across sectors.
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