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Is this a total derivative - if yes, why minus

Economics Asked on June 28, 2021

This is the beginning of the derivation of equation of motion from the Solow model (Romer, 2019):
enter image description here

My question is: is this the total derivative (w.r.t. ultimate source of change "t")? If yes, why there is a minus sign in front of the 2nd and 3rd term?
I assume because they are in the denominator. But I was not able find any rules for this on net. Everywhere are only "+" symbols. Thanks.

This is how I did it. Is it wrong? I did total derivative and got the same result as in the textbook:
enter image description here

One Answer

This is just standard derivative. The minus sign there is because you are taking derivative of a quotient and the quotient rule for derivatives is:

$$ frac{d}{dx} left(frac{f(x)}{g(x)}right) = frac{f'(x)g(x) - f(x)g'(x)}{g(x)^2}$$

In this case:

$$dot{k} = frac{d}{dt} left(frac{K(t)}{A(t)L(t)} right) = frac{dot{K}(t)A(t)L(t)-K(t)(dot{A}L(t)+A(t)dot{L}(t))}{(A(t)L(t))^2} = frac{dot{K}(t)A(t)L(t)}{(A(t)L(t))^2} - frac{K(t)(dot{A}(t)L(t)+A(t)dot{L}(t))}{(A(t)L(t))^2}= frac{dot{K}(t)}{(A(t)L(t))} - frac{K(t)(dot{A}(t)L(t)+A(t)dot{L}(t))}{(A(t)L(t))^2}$$

So you just need to remember that $A$ and $L$ are both functions of $t$ so you need to take derivative of whole qutient and quotient rule has minus there (if you want explanation for why quotient rule includes minus the right place is mathematics.se)

Answered by 1muflon1 on June 28, 2021

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