This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... In particular, we are able to consider the effect of tax changes on a population that is the same size as the initial population. If we were to include the utility of additional individuals in later years, our welfare measure would be weighted in favor of future periods. When all endowments and inco ...
... In particular, we are able to consider the effect of tax changes on a population that is the same size as the initial population. If we were to include the utility of additional individuals in later years, our welfare measure would be weighted in favor of future periods. When all endowments and inco ...
Disturbances to the International Economy Lawrence R. Klein
... while many partner countries were experiencing slowdowns. Tiffs became an ideal test situation for applications of the LINK system. (ii) Russia experienced a significant crop failure in 1972 and began systematically and quietly buying grain in the world market for delivery mainly in 1973. The circum ...
... while many partner countries were experiencing slowdowns. Tiffs became an ideal test situation for applications of the LINK system. (ii) Russia experienced a significant crop failure in 1972 and began systematically and quietly buying grain in the world market for delivery mainly in 1973. The circum ...
Perfect Competition: Short Run and Long Run
... Economics: Principles and Tools, 2/e O’Sullivan & Sheffrin sold. ...
... Economics: Principles and Tools, 2/e O’Sullivan & Sheffrin sold. ...
Monetary Explanations of the Great Depression
... that innovation and the movement toward mass production increased the productivity of the economy so rapidly that the economy could not absorb the additional output. Separately, banking issues were offered as a secondary effect of—an endogenous response to—the weakened economy. In addition, Robertso ...
... that innovation and the movement toward mass production increased the productivity of the economy so rapidly that the economy could not absorb the additional output. Separately, banking issues were offered as a secondary effect of—an endogenous response to—the weakened economy. In addition, Robertso ...
PDF
... equal zero. Each matrix or vector was partitioned to separate the k industries for which gross output changes are known.7 By solving the partitioned matrices simultaneously, short run changes in sectoral gross output levels, total income, and residual income can be estimated even when several gross ...
... equal zero. Each matrix or vector was partitioned to separate the k industries for which gross output changes are known.7 By solving the partitioned matrices simultaneously, short run changes in sectoral gross output levels, total income, and residual income can be estimated even when several gross ...
The Specific-Factors Model: HO Model in the Short Run
... of perfectly mobility of factors is intended to capture the state of the economy in the long run. For example, a worker in advertising cannot seamlessly shift into computer programming. It would require the worker to acquire programming skills in order to do so, which will require some time. Similar ...
... of perfectly mobility of factors is intended to capture the state of the economy in the long run. For example, a worker in advertising cannot seamlessly shift into computer programming. It would require the worker to acquire programming skills in order to do so, which will require some time. Similar ...
Macroeconomics - Nuffield College, University of Oxford
... • Unemployment and business cycles are important in explaining short and medium run growth, but play almost no rôle in the long-run: in the long-run, national output is determined by supply. • In the long-run, the main source of rising living standards is rising output per worker. • Rising output pe ...
... • Unemployment and business cycles are important in explaining short and medium run growth, but play almost no rôle in the long-run: in the long-run, national output is determined by supply. • In the long-run, the main source of rising living standards is rising output per worker. • Rising output pe ...
Monetary Paradoxes of Baby-Sitting Cooperatives
... money. Money—also called scrip in this context—must be used to buy services, and is earned by offering services. However, on the terminal date T, every family must return the full amount of the initial allocation. This means that families must maintain a balanced budget over the lifetime of the BSC ...
... money. Money—also called scrip in this context—must be used to buy services, and is earned by offering services. However, on the terminal date T, every family must return the full amount of the initial allocation. This means that families must maintain a balanced budget over the lifetime of the BSC ...
What is Post Keynesianism and Who Is A Post Keynedsian?
... rather than Davidson. (Of course King means associating Keynes’s uncertainty with the rejection of the classical ergodic axiom -- but that is a minor quibble.) King also admits that he was not correct when he suggested that the New Keynesian’s efficiency wage theories “should be acceptable to Post ...
... rather than Davidson. (Of course King means associating Keynes’s uncertainty with the rejection of the classical ergodic axiom -- but that is a minor quibble.) King also admits that he was not correct when he suggested that the New Keynesian’s efficiency wage theories “should be acceptable to Post ...
An interest rate rule to uniquely implement the optimal equilibrium in
... guaranteed to always be the unique equilibrium). While indeterminacy is an important issue in all New Keynesian models, its economic implications and the difficulties eliminating it are amplified in the presence of a binding ZLB. In models that ignore the ZLB, the central bank can eliminate indetermina ...
... guaranteed to always be the unique equilibrium). While indeterminacy is an important issue in all New Keynesian models, its economic implications and the difficulties eliminating it are amplified in the presence of a binding ZLB. In models that ignore the ZLB, the central bank can eliminate indetermina ...
Debt, Equity and Monetary Policy∗
... costly state veri…cation problem between borrowers and lenders which create a premium on external …nance. The link between the premium and borrowers’ net worth acts as a powerful transmission mechanism for exogenous shocks. Kiyotaki and Moore (1997) propose a di¤erent approach which relies on the ex ...
... costly state veri…cation problem between borrowers and lenders which create a premium on external …nance. The link between the premium and borrowers’ net worth acts as a powerful transmission mechanism for exogenous shocks. Kiyotaki and Moore (1997) propose a di¤erent approach which relies on the ex ...
Perfect Competition: Short Run and Long Run
... At $5, P = SAVC. Above this price, the firm is better off continuing to produce at a loss. Below this price, the firm is better off shutting down because it could not recover its operating cost. ...
... At $5, P = SAVC. Above this price, the firm is better off continuing to produce at a loss. Below this price, the firm is better off shutting down because it could not recover its operating cost. ...
Figure 3-1
... Assume that both countries (Japan and America) have the same relative demand curve. Therefore, the only source of international trade is the differences in relative supply. The relative supply might differ because the countries could differ in: ...
... Assume that both countries (Japan and America) have the same relative demand curve. Therefore, the only source of international trade is the differences in relative supply. The relative supply might differ because the countries could differ in: ...
Economics 101 – Section 5
... - is the total inflow of receipts from selling a given amount of output This is computed as the quantity sold multiplied by the accompanying price on the demand curve ...
... - is the total inflow of receipts from selling a given amount of output This is computed as the quantity sold multiplied by the accompanying price on the demand curve ...
Oligopoly
... natural duopoly—a market with two firms. – How would answer change if – demand increases? – MES increases? ...
... natural duopoly—a market with two firms. – How would answer change if – demand increases? – MES increases? ...
Prepared by: Jamal Husein CHAPTER 12 Why Do Economies Grow?
... less. This concept reflects the principle of diminishing returns. PRINCIPLE of Diminishing Returns Suppose that output is produced with two or more inputs and that we increase one input while holding the other inputs fixed. Beyond some point—called the point of diminishing returns—output will increa ...
... less. This concept reflects the principle of diminishing returns. PRINCIPLE of Diminishing Returns Suppose that output is produced with two or more inputs and that we increase one input while holding the other inputs fixed. Beyond some point—called the point of diminishing returns—output will increa ...
Valuing the Future: OMB's Refined Position
... 16 A mandatory, economy-wide cap on greenhouse gas emissions was voted down twice on the floor of the U.S. Senate, once in 2003, 108th Cong, 1st Sess, in 149 Cong Rec S 13598 (Oct 30, 2003), and again in 2005, Roll Call Vote No 148, 109th Cong, 1st Sess, in 151 Cong Rec S 7029 (Jun 22, 2005). Concer ...
... 16 A mandatory, economy-wide cap on greenhouse gas emissions was voted down twice on the floor of the U.S. Senate, once in 2003, 108th Cong, 1st Sess, in 149 Cong Rec S 13598 (Oct 30, 2003), and again in 2005, Roll Call Vote No 148, 109th Cong, 1st Sess, in 151 Cong Rec S 7029 (Jun 22, 2005). Concer ...
Liquidity Premiums on Government Debt and the Fiscal Theory of
... = is lower than the time rate of discount since . Since government bonds have collateral value in trade, agents are willing to bid up the price of the bonds above their fundamental value. This in turn lowers the real interest rate earned on the bonds. As shown by Lagos (2010) having a liquidity prem ...
... = is lower than the time rate of discount since . Since government bonds have collateral value in trade, agents are willing to bid up the price of the bonds above their fundamental value. This in turn lowers the real interest rate earned on the bonds. As shown by Lagos (2010) having a liquidity prem ...
NBER WORKING PAPER SERIES TECHNOLOGICAL LINKAGES, MARKET SThUCTURE, AND OPTIMUM PRODUCTION POLICIES
... variety. Thus, we find no basis for presuming that an imperfectly competitive intermediates sector restricts output below the socially optimal level, or that the market produces too many varieties. The model has the appealing feature of highlighting both technological and market forces: the directio ...
... variety. Thus, we find no basis for presuming that an imperfectly competitive intermediates sector restricts output below the socially optimal level, or that the market produces too many varieties. The model has the appealing feature of highlighting both technological and market forces: the directio ...
Macro-economic Thinking and the Market Economy
... understanding and application of economics. Their characteristic concern is the optimum use of scarce resources and the extent to which it can be achieved by markets within an appropriate legal and institutional framework. The first 50 were published from i960 to 1970. The second 50 in the 1970s wil ...
... understanding and application of economics. Their characteristic concern is the optimum use of scarce resources and the extent to which it can be achieved by markets within an appropriate legal and institutional framework. The first 50 were published from i960 to 1970. The second 50 in the 1970s wil ...
Austrian Economics—The Ultimate Achievement of an Intellectual
... But once the economist has acknowledged that it is not entirely nonsensical to use the expressions Inflation and Deflation to indicate such variations in the quantity of money as evoke big changes in the objective exchange-value of money, he must renounce the employment of these expressions in pure ...
... But once the economist has acknowledged that it is not entirely nonsensical to use the expressions Inflation and Deflation to indicate such variations in the quantity of money as evoke big changes in the objective exchange-value of money, he must renounce the employment of these expressions in pure ...
FREE Sample Here
... 8. According to the unbiased expectations theory, the one year interest rate one year from now is expected to be less than the one year interest rate today. 9. The liquidity premium theory is an extension of the unbiased expectations theory. It based on the idea that investors will hold long-term ma ...
... 8. According to the unbiased expectations theory, the one year interest rate one year from now is expected to be less than the one year interest rate today. 9. The liquidity premium theory is an extension of the unbiased expectations theory. It based on the idea that investors will hold long-term ma ...
Macroeconomics
Macroeconomics (from the Greek prefix makro- meaning ""large"" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. With microeconomics, macroeconomics is one of the two most general fields in economics.Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price index, and the interrelations among the different sectors of the economy, to better understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific marketsWhile macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of economic policy.