Economic Growth and Business Cycles: The Labor Supply Decision with Two Types of Technological Progress
... progress that brings us new goods.12 As indicated in the previous section, technological progress in existing goods will generally result in reduced labor supply (and a reduced marginal incentive to invest in human capital). But, technological progress generating desirable new goods will generally r ...
... progress that brings us new goods.12 As indicated in the previous section, technological progress in existing goods will generally result in reduced labor supply (and a reduced marginal incentive to invest in human capital). But, technological progress generating desirable new goods will generally r ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics
... two dimensions: they affect labor demand and they affect the wage determination process. First, consider the effect on labor demand. Matching frictions act like an adjustment cost to labor. Hence, if the arrival of news causes a boom in employment next period, then this creates a need to hire more w ...
... two dimensions: they affect labor demand and they affect the wage determination process. First, consider the effect on labor demand. Matching frictions act like an adjustment cost to labor. Hence, if the arrival of news causes a boom in employment next period, then this creates a need to hire more w ...
Real Business Cycles: A New Keynesian Perspective
... consumption falls and leisure rises. When the economy goes into a boom, consumption rises and leisure falls. Explaining this phenomenon is potentially problematic for real business cycle theory: consumption and leisure would often be expected to move together, since both are normal goods. In the exa ...
... consumption falls and leisure rises. When the economy goes into a boom, consumption rises and leisure falls. Explaining this phenomenon is potentially problematic for real business cycle theory: consumption and leisure would often be expected to move together, since both are normal goods. In the exa ...
Unemployment-Poverty Trade-offs
... At the level of an individual country, a trade-off between poverty and unemployment can surface either at the aggregate (economy-wide) level or at the level of individual household groups (for instance, urban households). In addition, trade-offs at both levels may entail a temporal dimension, in the s ...
... At the level of an individual country, a trade-off between poverty and unemployment can surface either at the aggregate (economy-wide) level or at the level of individual household groups (for instance, urban households). In addition, trade-offs at both levels may entail a temporal dimension, in the s ...
Draft Country- Pilot Study on the Dominican Republic
... work on “Indicators for measuring and maximizing economic value added and job creation from private investment in specific value chains.”1 The objectives of this report are: 1. To help refine the indicator methodology developed by the IAWG for the G20 and to provide guidance for the meaningful use o ...
... work on “Indicators for measuring and maximizing economic value added and job creation from private investment in specific value chains.”1 The objectives of this report are: 1. To help refine the indicator methodology developed by the IAWG for the G20 and to provide guidance for the meaningful use o ...
Economic Impact of GM Operations in Oshawa
... scenario as labour is absorbed into other sectors: stimulated in part by the significant decline in economy-wide average wages experienced as a result of this shock to the labour market. The manufacturing sector experiences the heaviest job loss (about 35% of the total) followed by the businesses se ...
... scenario as labour is absorbed into other sectors: stimulated in part by the significant decline in economy-wide average wages experienced as a result of this shock to the labour market. The manufacturing sector experiences the heaviest job loss (about 35% of the total) followed by the businesses se ...
PDF
... and production techniques are often left out in order to solve macroeconomic complexity. Early attempts to integrate ecology in Computable General Equilibrium (CGE) models made environmental degradation (emissions, land clearing etc.) proportional to economic variables like production and input use. ...
... and production techniques are often left out in order to solve macroeconomic complexity. Early attempts to integrate ecology in Computable General Equilibrium (CGE) models made environmental degradation (emissions, land clearing etc.) proportional to economic variables like production and input use. ...
The theory of output in the Modern Classical Approach
... with the theory of output, much literature has developed, in the approach which originates from Sraffa’s rediscovery and revival of the theory of classical economists, in the field of output determination and growth theory. The conception of the working of the economy which is proper to Sraffa’s app ...
... with the theory of output, much literature has developed, in the approach which originates from Sraffa’s rediscovery and revival of the theory of classical economists, in the field of output determination and growth theory. The conception of the working of the economy which is proper to Sraffa’s app ...
540_PragueEcPapers
... One can imagine the process of joining the Eurozone in two phases. In Phase A, let us say a two-year phase, the participation of the joining country in the ERM II and the beginning of Phase B (when the local currency is unrevocably fixed to the Euro) are announced. During Phase A, all sectors prepar ...
... One can imagine the process of joining the Eurozone in two phases. In Phase A, let us say a two-year phase, the participation of the joining country in the ERM II and the beginning of Phase B (when the local currency is unrevocably fixed to the Euro) are announced. During Phase A, all sectors prepar ...
Normalizing the Fed Funds Rate: The Fed`s Unjustified Rationale
... counteract the potential “overshooting” of the FRB’s dual mandate, especially with respect to inflation, after years of unconventional monetary policy. In what concerns the dual mandate, economic data suggests that there is significant slack in the labor market— we are still short some 20 million jo ...
... counteract the potential “overshooting” of the FRB’s dual mandate, especially with respect to inflation, after years of unconventional monetary policy. In what concerns the dual mandate, economic data suggests that there is significant slack in the labor market— we are still short some 20 million jo ...
Punjab Development Report: Can Punjab Preserve the Prosperity
... business services, such as improvements in the logistics system and the provision of one-stop government centers Sustaining high quality business and producer services in Bangkok: focus on urban mass transit infrastructure and communication ...
... business services, such as improvements in the logistics system and the provision of one-stop government centers Sustaining high quality business and producer services in Bangkok: focus on urban mass transit infrastructure and communication ...
An Investigation of Openness and Economic Growth Using Panel Estimation Pei-Pei Chen
... growth. In addition, Frankel and Romer (1999) also examined the relationship between trade and growth. They use instrumental variables (geographic components of the countries) as measures of the effect of trade on income. They concluded that trade does have a positive effect on economic growth which ...
... growth. In addition, Frankel and Romer (1999) also examined the relationship between trade and growth. They use instrumental variables (geographic components of the countries) as measures of the effect of trade on income. They concluded that trade does have a positive effect on economic growth which ...
LEERTEXT - Heterodox Economics Newsletter
... possible to go beyond the short-term. All that can be done is, to replace the Marshallian marginalist price remnants in Keynes’ General Theory, which vary with changes in output levels, with some kind of fixed prices based upon the mark-up principle. This would, incidentally, require that Sraffa’s p ...
... possible to go beyond the short-term. All that can be done is, to replace the Marshallian marginalist price remnants in Keynes’ General Theory, which vary with changes in output levels, with some kind of fixed prices based upon the mark-up principle. This would, incidentally, require that Sraffa’s p ...
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).