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... the level of basic employment in all sectors rather than simply assuming that certain sectors (such as manufacturing) are inherently basic. Measurement of economic base in these studies, however, has often used techniques that have a tendency to be imprecise, either underestimating (location quotien ...
THE DOWNSIDE OF DEBT REDUCTION
THE DOWNSIDE OF DEBT REDUCTION

... government external debt and the central bank’s net external liabilities. It is then possible to calculate both the net increase in non-government net external liabilities, U’, that would be required to complete the financing of the external accounts, and the net increase in the government’s net int ...
S01121079_en.pdf
S01121079_en.pdf

... period. A notable exception is the USA which had its best performance at the beginning (19001913) and at the end of the 20th century. For the Latin American countries, however, the picture is more diverse. Several countries, Brazil, Colombia and Mexico, experienced fastest growth in 19501973, but so ...
Democracy vs. dictatorship
Democracy vs. dictatorship

... most developed countries are democratic; and (ii) some poor dictatorships have experienced high growth performances and emerged from poverty such as Vietnam, Egypt or China and South Korea, Taiwan, Mexico, or Ecuador before their democratization (compare Table 1). Against this background, it is of i ...
The U.S. economy to 2010
The U.S. economy to 2010

Principles of Economics Third Edition by Fred Gottheil
Principles of Economics Third Edition by Fred Gottheil

... • Buoyed by this growth in sales, firms expect growth to continue and increase investment spending accordingly. This creates the upward phase of the business cycle. Gottheil - Principles of Economics, 4e © 2005 Thomson ...
The shadow economy in industrial countries
The shadow economy in industrial countries

Financial-Reform-and-Rural-Development
Financial-Reform-and-Rural-Development

... Credit market development in the rural sector is critical for rural financial deepening in the process of financial development at large. But it has been observed in the context of India that demand for credit is inelastic with regard to the cost of borrowing (Bell et al., 1997), implying the prese ...
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Download (PDF)

... stimulate aggregate demand. The increase in government spending at the time was seen as a necessary, but temporary measure, to support the economy until private sector demand recovered. Yet, the boost to growth was short-lived as private sector business activity and investment in the real economy co ...
Looking Ahead - The New North
Looking Ahead - The New North

... the New North plan.” • Stimulated economic development thinking within the New North region ...
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... rates exceed 50 percent (Cagan, 1956), became a major economic problem in the 1980’s in many less developed countries (LDCS) and continues to plague LDCS today (New ~frica, April, 1994). Agriculture, a key sector for LDCS, often accounts for 40-50 percent of gross domestic product and employs a sign ...
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... product rhemselves ; c) technological change; and, d) economies of scale. It can be argued that these assumptions are not that unrealistic, especially when viewing the sector as a whole, and industrial accivity in general terms. Nevertheless, agriculture is a special case, since it is an industry ma ...
Reducing CO2 Emissions and Long Run Growth of the Japanese
Reducing CO2 Emissions and Long Run Growth of the Japanese

Keynes`s Theory of Depression
Keynes`s Theory of Depression

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FRBSF E L CONOMIC ETTER

... level of output. Most central banks view such an output gap as both a policy objective to be stabilized and as an important signal of future inflation developments. However, some economists argue that difficulties in measuring the economy’s underlying trend output level make any estimate of the outp ...
Mankiw 6e PowerPoints
Mankiw 6e PowerPoints

...  Why per capita (Y/L) vs. per effective worker (Y/EL)?  Useful in the model we will study.  Over time, output and output per worker grow.  Difficult to define an equilibrium value for a variable that is trending over time.  Example: unemployment vs. output per worker.  Therefore, while we don’ ...
Devolution and economic growth A publication for the London
Devolution and economic growth A publication for the London

the role of education in economic growth
the role of education in economic growth

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Long-Run Economic Growth chapter

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Notes on the Quantitative Approach to Economic Growth

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... • The faster the growth of the labor force, the lower will be the economy’s steady-state capital-output ratio – the larger the share of current investment that must go to equip new workers with the capital they need ...
Entertaining Malthus: Bread, Circuses and
Entertaining Malthus: Bread, Circuses and

... whether subsequent demographic and economic changes match our model predictions. Besides the Neolithic and Industrial Revolutions, we examine the Song Dynasty in China, the Irish Potato Famines, the Black Death and the Great Divergence. These historical episodes are quite different, but are all consi ...
Block I - Bhoj University
Block I - Bhoj University

... The model also notes that countries can overcome this steady state and continue growing by inventing new technology. In the long run, output per capita depends on the rate of saving, but the rate of output growth should be equal for any saving rate. In this model, the process by which countries cont ...
Economic Growth with Trade in Factors of Production
Economic Growth with Trade in Factors of Production

... in analyzing trade. It e¤ectively has three sectors - …nal goods, intermediate goods, and R&D together with a mixture of perfect and imperfect competition, endogenous entry, and both variety expansion and quality improvement. We therefore simplify the model in the following ways. What we need for ou ...
The Impact of Entrepreneurship on Economic Growth
The Impact of Entrepreneurship on Economic Growth

... chapter, we provide overviews of the relevant literature and complement them with some new material.2 We concentrate on economically developed economies (OECD countries) and do not discuss the (sizeable presence of) self-employment in the agricultural sector. Explanations for economic growth have ge ...
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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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