On the Statics and Dynamics of Net External Assets
... where U(c) is utility, c is consumption, c* is the subsistence level of consumption, and θ is a positive parameter (inverse elasticity of intertemporal substitution if c*=0). The Stone-Geary preferences imply very low values of utility if consumption is close to its subsistence level (in particular ...
... where U(c) is utility, c is consumption, c* is the subsistence level of consumption, and θ is a positive parameter (inverse elasticity of intertemporal substitution if c*=0). The Stone-Geary preferences imply very low values of utility if consumption is close to its subsistence level (in particular ...
Parkin-Bade Chapter 22
... Fixed Prices and Expenditure Plans Marginal Propensities to Consume and Save The marginal propensity to consume (MPC) is the fraction of a change in disposable income spent on consumption. It is calculated as the change in consumption expenditure, C, divided by the change in disposable income, YD ...
... Fixed Prices and Expenditure Plans Marginal Propensities to Consume and Save The marginal propensity to consume (MPC) is the fraction of a change in disposable income spent on consumption. It is calculated as the change in consumption expenditure, C, divided by the change in disposable income, YD ...
Chapter 22 - The Costs of Production
... average fixed cost (AFC) average variable cost (AVC) average total cost (ATC) marginal cost (MC) economies of scale diseconomies of scale constant returns to scale ...
... average fixed cost (AFC) average variable cost (AVC) average total cost (ATC) marginal cost (MC) economies of scale diseconomies of scale constant returns to scale ...
Comparative de-linking and re-linking analyses of the EU
... The area above the line ∆(ΕS/GDP) in Fig. 2 represents re-linking and the area below the line represents de-linking. For both de-linking and re-linking, three different degrees can be defined and conceptualized according to the direction of changes in the three variables (GDP, ES and ES/GDP after a ...
... The area above the line ∆(ΕS/GDP) in Fig. 2 represents re-linking and the area below the line represents de-linking. For both de-linking and re-linking, three different degrees can be defined and conceptualized according to the direction of changes in the three variables (GDP, ES and ES/GDP after a ...
Does high public debt consistently stifle economic growth? A critique
... critical intellectual underpinning on behalf of austerity policies. This is the case regardless of whether it was RR’s intention to exert this type of influence. We do not attempt to discern RR’s intentions on this matter. ...
... critical intellectual underpinning on behalf of austerity policies. This is the case regardless of whether it was RR’s intention to exert this type of influence. We do not attempt to discern RR’s intentions on this matter. ...
Aggregate Measures of Income and Output in Canada and the
... appropriate measures of output for productivity analysis, while NNI is the most appropriate measure of income for the analysis of living standards because it captures the impact on real income of terms of trade changes, net income received from abroad, and the sustainability of the capital stock. T ...
... appropriate measures of output for productivity analysis, while NNI is the most appropriate measure of income for the analysis of living standards because it captures the impact on real income of terms of trade changes, net income received from abroad, and the sustainability of the capital stock. T ...
NBER WORKING PAPER SERIES CALLING RECESSIONS IN REAL TIME James D. Hamilton
... real time, out-of-sample basis is a bigger challenge than many academics might presume due to factors such as data revisions and changes in economic relationships over time. The paper stresses the value of both simulated real-time analysis-- looking at what the inference of a proposed model would ha ...
... real time, out-of-sample basis is a bigger challenge than many academics might presume due to factors such as data revisions and changes in economic relationships over time. The paper stresses the value of both simulated real-time analysis-- looking at what the inference of a proposed model would ha ...
ge11 Harding 15027197 en
... as general as possible. Since our windfall measures are defined both for resource netimporters and resource net-exporters as well as for aid recipients and aid non-recipients, our sample is not limited due to windfall characteristics. However, we do some minor other adjustments to the sample. In all ...
... as general as possible. Since our windfall measures are defined both for resource netimporters and resource net-exporters as well as for aid recipients and aid non-recipients, our sample is not limited due to windfall characteristics. However, we do some minor other adjustments to the sample. In all ...
Measurement of Real Income in the System of National Accounts
... the measurement system on verifiable data reduces the extent to which estimates of economic aggregates can be arbitrarily adjusted by statistical agencies and produces measures of economic activity that correspond closely to the variables that decision makers in central banks and finance departments ...
... the measurement system on verifiable data reduces the extent to which estimates of economic aggregates can be arbitrarily adjusted by statistical agencies and produces measures of economic activity that correspond closely to the variables that decision makers in central banks and finance departments ...
NBER WORKING PAPER SERIES ESTIMATING REAL PRODUCTION AND EXPENDITURES ACROSS NATIONS:
... implement for a larger set of countries. ...
... implement for a larger set of countries. ...
Risk Sharing and Industrial Specialization: Regional
... share of the financial sector in GDP—an indicator of “financial depth”—and indices of shareholder rights from Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert Vishny (1998). These instruments can be criticized but, at the very least, the regressions confirm that our results a ...
... share of the financial sector in GDP—an indicator of “financial depth”—and indices of shareholder rights from Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer, and Robert Vishny (1998). These instruments can be criticized but, at the very least, the regressions confirm that our results a ...
The Zero Lower Bound and Endogenous Uncertainty
... happening in the economy. An increase in uncertainty occurs as the short-term nominal interest rate approaches its ZLB due to the restriction the constraint places on the ability of the central bank to stabilize the economy. In our model, the ZLB arises in states where the discount factor or technol ...
... happening in the economy. An increase in uncertainty occurs as the short-term nominal interest rate approaches its ZLB due to the restriction the constraint places on the ability of the central bank to stabilize the economy. In our model, the ZLB arises in states where the discount factor or technol ...
Financing the Millennium Development Goals: The Philippines
... Table 1 summarizes the rate of progress toward the achievement of the MDGs and compares average rate of progress to date (1990-2002/3) with the rate of progress that is required in 2002/3-2015 if the MDG targets are to be met. A comparison of the average rate of progress in 1990-202/3 with the rate ...
... Table 1 summarizes the rate of progress toward the achievement of the MDGs and compares average rate of progress to date (1990-2002/3) with the rate of progress that is required in 2002/3-2015 if the MDG targets are to be met. A comparison of the average rate of progress in 1990-202/3 with the rate ...
The Natural Resource Curse and Fiscal Decentralization
... Rodriquez-Pose and Ezcurra 2011).1 If this is the case, resource windfalls will incentivize rent-seeking behavior of local, …scally-autonomous, governments. In addition, the model also considers a market mechanism: a natural resource boom gives resource rich regions an advantage in the inter-regiona ...
... Rodriquez-Pose and Ezcurra 2011).1 If this is the case, resource windfalls will incentivize rent-seeking behavior of local, …scally-autonomous, governments. In addition, the model also considers a market mechanism: a natural resource boom gives resource rich regions an advantage in the inter-regiona ...
IEW Working Paper #91
... the validity of Wagner’s law. The vast majority of studies focus either on emerging or industrialized countries in order to issue a statement about the coherence between development level and Wagner’s law (e.g. Chang (2002)). However, the interpretation results in certain difficulties because the ex ...
... the validity of Wagner’s law. The vast majority of studies focus either on emerging or industrialized countries in order to issue a statement about the coherence between development level and Wagner’s law (e.g. Chang (2002)). However, the interpretation results in certain difficulties because the ex ...
Essentials of Economics, Krugman Wells Olney
... The National Accounts Calculating GDP Measuring GDP as Factor Income Earned from Firms in the Economy Another way to calculate GDP is to add up all the income earned by factors of production from firms in the economy—the wages earned by labor; the interest earned by those who lend their savings to f ...
... The National Accounts Calculating GDP Measuring GDP as Factor Income Earned from Firms in the Economy Another way to calculate GDP is to add up all the income earned by factors of production from firms in the economy—the wages earned by labor; the interest earned by those who lend their savings to f ...
Nominal GDP Targeting Rules: Can They Stabilize the Economy?
... For example, sluggish money growth was seen to signal a slowdown in real GDP growth. As a result, easing monetary policy when money growth fell below target helped moderate declines in real GDP growth. The targets for the monetary aggregates were also expected to help policymakers achieve long-term ...
... For example, sluggish money growth was seen to signal a slowdown in real GDP growth. As a result, easing monetary policy when money growth fell below target helped moderate declines in real GDP growth. The targets for the monetary aggregates were also expected to help policymakers achieve long-term ...
The Production Account and GDP
... production process in the development and growth of an economy, i.e. without robust and sustainable production, the economy cannot grow and the people standard of living cannot improve. The process of production culminates in the production or provision of goods and services, which can either be use ...
... production process in the development and growth of an economy, i.e. without robust and sustainable production, the economy cannot grow and the people standard of living cannot improve. The process of production culminates in the production or provision of goods and services, which can either be use ...
A New Stock Index to Better Predict the United States` Real GDP
... However, there is evidence that shows that the S&P 500 could use more service exposure to better reflect the overall economy. The Standard and Poor’s S&P 500 index might not enough stocks from the services sector because portfolio managers and economists want a consistent, stable index that they can ...
... However, there is evidence that shows that the S&P 500 could use more service exposure to better reflect the overall economy. The Standard and Poor’s S&P 500 index might not enough stocks from the services sector because portfolio managers and economists want a consistent, stable index that they can ...
Working Paper Series - unu-merit
... discussed in a non-integrated manner. In this paper we provide a model of difference equations that integrates many of the relevant aspects and allows having a look at the long and medium run as well. We will discuss these aspects in the following and collect the arguments in Table 1 in order to all ...
... discussed in a non-integrated manner. In this paper we provide a model of difference equations that integrates many of the relevant aspects and allows having a look at the long and medium run as well. We will discuss these aspects in the following and collect the arguments in Table 1 in order to all ...
PPT - unece
... (e.g. age of a student, production, height). You can do some more mathematical operations with these indicators (e.g. division, subtraction). ...
... (e.g. age of a student, production, height). You can do some more mathematical operations with these indicators (e.g. division, subtraction). ...
Download (PDF)
... of …scal policy variables to correct budgetary disequilibria. This is in contrast with political economy models, arguing that …scal adjustments are non-linear in the sense that …scal policy authorities only correct …scal imbalances when they become "too large". Very few non-linear studies on the …s ...
... of …scal policy variables to correct budgetary disequilibria. This is in contrast with political economy models, arguing that …scal adjustments are non-linear in the sense that …scal policy authorities only correct …scal imbalances when they become "too large". Very few non-linear studies on the …s ...
Chapter 10
... constant for long. When they have an unplanned change in inventories, they change production and prices. And the price level changes when firms change prices. The aggregate supply-aggregate demand model explains the simultaneous determination of real GDP and the price level. The two models are relat ...
... constant for long. When they have an unplanned change in inventories, they change production and prices. And the price level changes when firms change prices. The aggregate supply-aggregate demand model explains the simultaneous determination of real GDP and the price level. The two models are relat ...
Introduction to Macroeconomics
... Y=C+I+G+X-M From definition 3 (incomes are spent on consumption, savings and (net) taxes): Y=C+S+T Resulting balance of sectors: (S-I)+(T-G)=(X-M) Savings of the private and public sector equal (approx.) the trade balance ...
... Y=C+I+G+X-M From definition 3 (incomes are spent on consumption, savings and (net) taxes): Y=C+S+T Resulting balance of sectors: (S-I)+(T-G)=(X-M) Savings of the private and public sector equal (approx.) the trade balance ...
Output Loss from the Banking Crisis in Cyprus† 1. Introduction
... both the level and growth rate of real GDP methods (Angkinand 2008; Bordo et al. 2001; Boyd et al. 2005; IMF 1998), described as follows. • When the growth rate is used, output loss is measured by the sum of the differences between actual and potential GDP growth over the crisis period, with the end ...
... both the level and growth rate of real GDP methods (Angkinand 2008; Bordo et al. 2001; Boyd et al. 2005; IMF 1998), described as follows. • When the growth rate is used, output loss is measured by the sum of the differences between actual and potential GDP growth over the crisis period, with the end ...
Genuine progress indicator
Genuine progress indicator, or GPI, is a metric that has been suggested to replace, or supplement, gross domestic product (GDP) as a measure of economic growth. GPI is designed to take fuller account of the health of a nation's economy by incorporating environmental and social factors which are not measured by GDP. For instance, some models of GPI decrease in value when the poverty rate increases. The GPI is used in green economics, sustainability and more inclusive types of economics by factoring in environmental and carbon footprints that businesses produce or eliminate. ""Among the indicators factored into GPI are resource depletion, pollution, and long-term environmental damage."" GDP gains double the amount when pollution is created, since it increases once upon creation (as a side-effect of some valuable process) and again when the pollution is cleaned up, whereas GPI counts the initial pollution as a loss rather than a gain, generally equal to the amount it will cost to clean up later plus the cost of any negative impact the pollution will have in the mean time. While quantifying costs and benefits of these environmental and social externalities is a difficult task, ""Earthster-type databases could bring more precision and currency to GPI's metrics."" ""Another movement in economics that might embrace such data is the attempt to 'internalize externalities' - that is, to make companies bear the costs"" of the pollution they create (rather than having the government bear that cost) ""by taxing their goods proportionally to their negative eco-impacts.""GPI is an attempt to measure whether the environmental impact and social costs of economic production and consumption in a country is a negative or positive factor in overall health and well-being. By accounting for the costs borne by the society as a whole to repair or control pollution, poverty and prosperity GPI balances GDP spending against external costs. GPI advocates claim that it can more reliably measure economic progress, as it distinguishes between the overall ""shift in the 'value basis' of a product, adding its ecological impacts into the equation.""(Ch. 10.3)Comparatively speaking, the relationship between GDP and GPI is analogous to the relationship between the gross profit of a company and the net profit; the Net Profit is the Gross Profit minus the costs incurred; the GPI is the GDP (value of all goods and services produced) minus the environmental and social costs. Accordingly, the GPI will be zero if the financial costs of poverty and pollution equal the financial gains in production of goods and services, all other factors being constant.