Endogenous Technology Adoption and R&D as Sources of Business Cycle Persistence
... One of the great challenges for macroeconomists is explaining the slow recovery from major financial crises (see, e.g. Reinhart and Rogoff (2009)). This phenomenon is only partly accounted for by existing theories. A large literature has suggested that demand shortfalls can account for slow growth f ...
... One of the great challenges for macroeconomists is explaining the slow recovery from major financial crises (see, e.g. Reinhart and Rogoff (2009)). This phenomenon is only partly accounted for by existing theories. A large literature has suggested that demand shortfalls can account for slow growth f ...
Mystery - World Bank Group
... different one. GDP growth is essentially a ratio between the current and the last year’s GDP, taking into account of the inflation effect. The essence of the difference between the two aggregation methods is to aggregate GDP growth rates by the ratio of the sum (The Bank’s method) or by the sum of r ...
... different one. GDP growth is essentially a ratio between the current and the last year’s GDP, taking into account of the inflation effect. The essence of the difference between the two aggregation methods is to aggregate GDP growth rates by the ratio of the sum (The Bank’s method) or by the sum of r ...
Mozambique`s Industrialization
... applied, the public sector was heavily present, distorting labour relations. This national discrimination within an international market economy system partially explained the choice of a socialist economic system after independence. Even though, Mozambique has undergone a series of social, politica ...
... applied, the public sector was heavily present, distorting labour relations. This national discrimination within an international market economy system partially explained the choice of a socialist economic system after independence. Even though, Mozambique has undergone a series of social, politica ...
Tariff Reduction and Functional Income Distribution in Pakistan: A
... particular, comparative advantage promotes specialisation in goods and services that use abundant local resources (for example, labour in most developing countries) more intensively. This would increase the productive employment, which is most effective and efficient instrument for poverty reduction ...
... particular, comparative advantage promotes specialisation in goods and services that use abundant local resources (for example, labour in most developing countries) more intensively. This would increase the productive employment, which is most effective and efficient instrument for poverty reduction ...
Chapter 5: Growth and Recession in the US Economy
... Real GDP is now four times as large as it was in 1960 and has doubled just since 1980. This tendency for output and real income to increase over time when it persists is called long term economic growth. Indeed, over the past four decades pictured here, the growth rate of real GDP has averaged 3.4% ...
... Real GDP is now four times as large as it was in 1960 and has doubled just since 1980. This tendency for output and real income to increase over time when it persists is called long term economic growth. Indeed, over the past four decades pictured here, the growth rate of real GDP has averaged 3.4% ...
ch10_5e
... 1. Nearly all OECD countries start at high levels of output per person (say, at least one-third of the U.S. level in 1960), and there is clear evidence of convergence. 2. Convergence is also visible for most Asian countries: All the countries with growth rates above 4% over the period are in Asia. S ...
... 1. Nearly all OECD countries start at high levels of output per person (say, at least one-third of the U.S. level in 1960), and there is clear evidence of convergence. 2. Convergence is also visible for most Asian countries: All the countries with growth rates above 4% over the period are in Asia. S ...
Globalization and Inequality
... means to collect tax revenues in the absence of a well-‐developed administrative system to collect income and sales taxes. Export subsidies (from the government to the exporting firm) were also used to ...
... means to collect tax revenues in the absence of a well-‐developed administrative system to collect income and sales taxes. Export subsidies (from the government to the exporting firm) were also used to ...
CHAPTER OVERVIEW
... a. To induce more work government should reduce marginal tax rates on earned income. b. Unemployment compensation and welfare programs have made job loss less of an economic crisis for some people. Many transfer programs are structured to discourage work. 2. The rewards for saving and investing have ...
... a. To induce more work government should reduce marginal tax rates on earned income. b. Unemployment compensation and welfare programs have made job loss less of an economic crisis for some people. Many transfer programs are structured to discourage work. 2. The rewards for saving and investing have ...
GDP-12 – the Bank’s measure of trading partner demand
... crisis in the late 1990s. In the December 1997 Statement and March 1998 Economic Projections, the Bank used a subset of ‘pessimistic’ forecasts from Consensus Forecasts for its forecasts of world output. This was taken at a time when prospects for many Asian economies were taking a turn for the wors ...
... crisis in the late 1990s. In the December 1997 Statement and March 1998 Economic Projections, the Bank used a subset of ‘pessimistic’ forecasts from Consensus Forecasts for its forecasts of world output. This was taken at a time when prospects for many Asian economies were taking a turn for the wors ...
View/Open
... higher public investment expenditure manifest over time, through higher capital accumulation and improved productivity. Our findings reveal that higher public infrastructure investment not only positively impacts real GDP, but also reduces poverty and inequality in the short and long run. In this co ...
... higher public investment expenditure manifest over time, through higher capital accumulation and improved productivity. Our findings reveal that higher public infrastructure investment not only positively impacts real GDP, but also reduces poverty and inequality in the short and long run. In this co ...
English - Publications - Inter
... economy, a marked slowdown of some major emerging markets, especially Brazil but also China, tensions in Russia over Ukraine as well as ongoing and increased tensions in the Middle East. The second half of the year was also marked by the Ebola outbreak in West Africa and the fear of a human tragedy ...
... economy, a marked slowdown of some major emerging markets, especially Brazil but also China, tensions in Russia over Ukraine as well as ongoing and increased tensions in the Middle East. The second half of the year was also marked by the Ebola outbreak in West Africa and the fear of a human tragedy ...
Diapositive 1
... 5. Technical progress is biased as in increases income inequalities, either by reducing the wages of the unskilled labourers, either by increasing unemployment (i.e. By reducing their employability). ...
... 5. Technical progress is biased as in increases income inequalities, either by reducing the wages of the unskilled labourers, either by increasing unemployment (i.e. By reducing their employability). ...
pse-hess 221695 en
... Unfortunately, these models do not allow for the possibility that an important component of scal policy is political, and that partisan politics drives much of individuals' views of the current and future path of scal policy and the economy. In contrast to RBC models, political business cycle mod ...
... Unfortunately, these models do not allow for the possibility that an important component of scal policy is political, and that partisan politics drives much of individuals' views of the current and future path of scal policy and the economy. In contrast to RBC models, political business cycle mod ...
CH 11 - Kenston Local Schools
... The business cycle consists of alternating periods of economic growth and contraction. A central concern of macroeconomics is the upswings and downswings of the economy called the business cycle. Business cycles always exist in market economies. A free market system is driven by ever-changing ...
... The business cycle consists of alternating periods of economic growth and contraction. A central concern of macroeconomics is the upswings and downswings of the economy called the business cycle. Business cycles always exist in market economies. A free market system is driven by ever-changing ...
Labor Market Reform and Poverty - The Role of Informal
... estimate. On the other hand, in the presence of less aggressive labor unions proemployer governments may help to reduce hiring and firing costs of the organized workers. Hence, in those states more people are likely to find jobs in the formal sector. Greater employment should consequently have a neg ...
... estimate. On the other hand, in the presence of less aggressive labor unions proemployer governments may help to reduce hiring and firing costs of the organized workers. Hence, in those states more people are likely to find jobs in the formal sector. Greater employment should consequently have a neg ...
NBER WORKING PAPER SERIES INVESTMENT, CAPACITY, AND UNCERTAINTY: A PUTTY-CLAY APPROACH Simon Gilchrist
... Y (i)t+j = θ(i)t k(i)αt L(i)t+j , where k(i)t is the capital-labor ratio chosen at the time of installation. Denote the labor productivity of a machine by X(i)t ≡ θ(i)t k(i)αt . The only variable cost to operating a machine is the wage rate, Wt . Idle machines incur no variable costs and have the sa ...
... Y (i)t+j = θ(i)t k(i)αt L(i)t+j , where k(i)t is the capital-labor ratio chosen at the time of installation. Denote the labor productivity of a machine by X(i)t ≡ θ(i)t k(i)αt . The only variable cost to operating a machine is the wage rate, Wt . Idle machines incur no variable costs and have the sa ...
Fiscal Sentiment and the Weak Recovery from the Great Recession
... properties of a neoclassical growth model such as that studied below are particularly sensitive to that ratio (see, for example, Fisher 2001). It turns out that the measurement problem just described can be mitigated with a version of the approach suggested by Gomme and Rupert (2007). In this approa ...
... properties of a neoclassical growth model such as that studied below are particularly sensitive to that ratio (see, for example, Fisher 2001). It turns out that the measurement problem just described can be mitigated with a version of the approach suggested by Gomme and Rupert (2007). In this approa ...
GDP - University of Hawaii at Hilo
... Different products or services that are perceived by customers as acceptable alternatives or substitute products or services. ...
... Different products or services that are perceived by customers as acceptable alternatives or substitute products or services. ...
Transformation in economics
Transformation in economics refers to a long-term change in dominant economic activity in terms of prevailing relative engagement or employment of able individuals.Human economic systems undergo a number of deviations and departures from the ""normal"" state, trend or development. Among them are Disturbance (short-term disruption, temporary disorder), Perturbation (persistent or repeated divergence, predicament, decline or crisis), Deformation (damage, regime change, loss of self-sustainability, distortion), Transformation (long-term change, restructuring, conversion, new “normal”) and Renewal (rebirth, transmutation, corso-ricorso, renaissance, new beginning).Transformation is a unidirectional and irreversible change in dominant human economic activity (economic sector). Such change is driven by slower or faster continuous improvement in sector productivity growth rate. Productivity growth itself is fueled by advances in technology, inflow of useful innovations, accumulated practical knowledge and experience, levels of education, viability of institutions, quality of decision making and organized human effort. Individual sector transformations are the outcomes of human socio-economic evolution.Human economic activity has so far undergone at least four fundamental transformations:From nomadic hunting and gathering (H/G) to localized agricultureFrom localized agriculture (A) to internationalized industryFrom international industry (I) to global servicesFrom global services (S) to public sector (including government, welfare and unemployment, GWU)This evolution naturally proceeds from securing necessary food, through producing useful things, to providing helpful services, both private and public (See H/G→A→I→S→GWU sequence in Fig. 1). Accelerating productivity growth rates speed up the transformations, from millennia, through centuries, to decades of the recent era. It is this acceleration which makes transformation relevant economic category of today, more fundamental in its impact than any recession, crisis or depression. The evolution of four forms of capital (Indicated in Fig. 1) accompanies all economic transformations.Transformation is quite different from accompanying cyclical recessions and crises, despite the similarity of manifested phenomena (unemployment, technology shifts, socio-political discontent, bankruptcies, etc.). However, the tools and interventions used to combat crisis are clearly ineffective for coping with non-cyclical transformations. The problem is whether we face a mere crisis or a fundamental transformation (globalization→relocalization).