1. We use measure m and Equation (29) to calculate the total capital stock in the steady state for the given A;Step
2. We verify that A is the marginal product of capital using Equation (18). If A > (< )zK 1 , we choose a smaller (larger) A and resolve the contracts by repeating the above steps;Step
3. Toward a theory of discounted repeated games with imperfect monitoring;Dilip Abreu;Econometrica,1990