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the benefit system - Ministry of Social Development
the benefit system - Ministry of Social Development

... trade has expanded. Further, there is a distinct difference visible between the "European" pattern of "institutionalised unemployment" – where employment levels have stagnated – and the US model where here has been large employment growth, often in low-paid service jobs. Accordingly, the institution ...
OECD Labour Markets in the Great Recession
OECD Labour Markets in the Great Recession

... • If we predict where structural change would have taken employment levels (by extrapolating 2000-07 trends for two years) we get completely different story • Making this correction also implies that the recession caused a lot more job losses: aggregate employment was on an upward trend C A Pissarid ...
Demographic pressure, excess labour supply and public
Demographic pressure, excess labour supply and public

... hamper developments in the private sector, where job creation will primarily have to take place. In this light, the developments of the fiscal costs of the employment in the government sectors across countries are an interesting angle to study public sector employment (see also Tansel on the case of ...
Economic Outlook and Policy Challenges
Economic Outlook and Policy Challenges

... problem—over-indebtedness in the corporate and banking sectors—which requires difficult decisions about burden-sharing and perhaps even forgiving some burden on the private sector; the legacy issues of retroactive taxation, which remain mired in litigation even though the government has made clear i ...
Comparative Interpretation of Classical and Keynesian Fiscal
Comparative Interpretation of Classical and Keynesian Fiscal

the canadian economy - Canadian Foundation for Economic
the canadian economy - Canadian Foundation for Economic

... and billions of exchanges, direct barter becomes very difficult. Some bartering still takes place, but, by and large, using money is easier. So economies use money as (1) a “unit of account” to establish prices, (2) a “medium of exchange” for transactions, and (3) a “store of value” to save for use ...
- IRIHS - Institut für Höhere Studien
- IRIHS - Institut für Höhere Studien

Productivity and Growth in an Unstable Emerging Market Economy
Productivity and Growth in an Unstable Emerging Market Economy

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Markets and Economic Growth in South Asia
Markets and Economic Growth in South Asia

... The issue of what determines long-term growth and decline of nations is one of the central questions of development economics. A first-cut answer to this question is provided by the standard growth accounting, which points to the importance of three factors: physical capital accumulation, human cap ...
Long-Term Growth of the US Economy
Long-Term Growth of the US Economy

Syllabus Cambridge International A & AS Level Economics Syllabus code 9708
Syllabus Cambridge International A & AS Level Economics Syllabus code 9708

... fixed capital fixed capital formation free goods interest investment law (economic) liquidity macroeconomics market market system maximisation measure of value medium of exchange microeconomics needs other things being equal primary sector production frontier production transformation curve resource ...
Labor Hours in the U.S. and Europe
Labor Hours in the U.S. and Europe

... generates working hour dynamics of the pattern described above. Specifically, the model looks at two economies, identical in their initial period stocks and in all of their parameters except for a difference in the weight assigned to leisure in the utility function of their individuals. At first, du ...
Borrowing Constraints and Asset Market Dynamics: Evidence from the Pacific Basin
Borrowing Constraints and Asset Market Dynamics: Evidence from the Pacific Basin

... the first order of business is to show that under certain reasonable parameter restrictions, the deterministic steady state is characterized by a unique positive land allocation and associated level of aggregate output. I then incorporate stochastic (non-diversifiable) endowment shocks and linearize ...
Government size, composition of public expenditure, and
Government size, composition of public expenditure, and

Universidade Federal de Viçosa Departamento de Economia Rural
Universidade Federal de Viçosa Departamento de Economia Rural

The Emperor Has New Clothes Mainstream Theories of Economic Growth .
The Emperor Has New Clothes Mainstream Theories of Economic Growth .

... The chief elements of natural capital included here are forestry, mining (metals and minerals) and agricultural land. Forest area fell to the 1920s but rose over the next half-century to peak at around 300 million hectares in the early 1970s. The standing value of the trees also fell to the 1920s bu ...
MacroeconoMics for a Modern econoMy
MacroeconoMics for a Modern econoMy

... (at present output) – the sum of its payroll costs plus turnover costs. In terms of a later construct, the “wage curve” is lowered by firms’ underestimating what will be the going wage at their competitors.10 Such a lowering of the wage curve serves to lower firms’ cost curves, thus to lower the pr ...
Alert Mechanism Report 2016
Alert Mechanism Report 2016

... warranted to tackle imbalances while supporting the recovery. Policy action and effective reform implementation, in particular in the field of competitiveness but also insolvency, must especially be stepped up in countries whose capacity to grow is constrained by elevated deleveraging pressures or s ...
Government Spending Might Not Create Jobs, Even during
Government Spending Might Not Create Jobs, Even during

The development of the share of agriculture in GDP and employment
The development of the share of agriculture in GDP and employment

... develops via the five stages to the final stage of ‘high mass production’ which represents a supposedly fully developed economy. Stage I, traditional society, is characterised by subsistence agriculture and the economy almost wholly depends on the primary sector. Stage II, preconditions for take-off ...
Business cycle fluctuations – Part I
Business cycle fluctuations – Part I

A REVISED CLASSICAL MODEL OF GROWTH
A REVISED CLASSICAL MODEL OF GROWTH

... is cheaper, or more efficient. In this second case, technical progress besides saving labor saves capital itself, increasing the output-capital relation. While in the case of mechanization the business enterprise had no other alternative than to invest in increasingly less efficient machines, in thi ...
PDF Download
PDF Download

... The process of financially-driven economic contractions was accelerated by tumbling house prices, widespread deleveraging, and flight to safety in financial markets following the global financial crisis. Compared to other EU economies that ran unsustainable current account deficits before the crisis ...
The Validity of Okuns law in Curacao
The Validity of Okuns law in Curacao

An Index of Coincident Economic Indicators for
An Index of Coincident Economic Indicators for

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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).
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