![Household Borrowing and the Possibility of “Consumption-Driven, Profit-Led Growth” WORKING PAPER 2016-01](http://s1.studyres.com/store/data/008868061_1-a00c4ea51895a60622ac708467c9cea6-300x300.png)
Household Borrowing and the Possibility of “Consumption-Driven, Profit-Led Growth” WORKING PAPER 2016-01
... increase in the real wage will reduce the profit share of income and hence (given that capacity utilization is fixed) the profit rate. In the presence of a standard Marxian or Robinsonian accumulation function, in which the rate of accumulation varies directly with the rate of profit, this ensures t ...
... increase in the real wage will reduce the profit share of income and hence (given that capacity utilization is fixed) the profit rate. In the presence of a standard Marxian or Robinsonian accumulation function, in which the rate of accumulation varies directly with the rate of profit, this ensures t ...
Macro coordination: Forward Guidance as `cheap
... To see how sensitive the structure of the game is to the parameter values chosen, a check for robustness is attached as Annex 1. 2.4 Is the ‘cheap talk’ credible? For coordination games with Pareto-ranked equilibria, there is a prima facie case for ‘cheap talk’, where the MPC can lead the way by pr ...
... To see how sensitive the structure of the game is to the parameter values chosen, a check for robustness is attached as Annex 1. 2.4 Is the ‘cheap talk’ credible? For coordination games with Pareto-ranked equilibria, there is a prima facie case for ‘cheap talk’, where the MPC can lead the way by pr ...
MACROECONOMIC PRINCIPLES (ECON
... supplied. Labor supply is a work-leisure choice. Changes in the wage cause income and substitution effects. Substitution effect: increase W or w makes leisure more expensive (higher opportunity cost of leisure, so we reduce leisure and work more hours). Income effect: leisure is a normal good. As wa ...
... supplied. Labor supply is a work-leisure choice. Changes in the wage cause income and substitution effects. Substitution effect: increase W or w makes leisure more expensive (higher opportunity cost of leisure, so we reduce leisure and work more hours). Income effect: leisure is a normal good. As wa ...
Chapter 21 : The Monetary Policy and Aggregate Demand Curves
... A. The Federal Reserve and Monetary Policy 1. Fed’s primary policy tool is very short-term nominal interest rates, i. (controlled by adding and draining reserves from banking system). 2. Recall Fisher Equation r = i − πe The federal funds rate is a nominal interest rate i, but it is the real interes ...
... A. The Federal Reserve and Monetary Policy 1. Fed’s primary policy tool is very short-term nominal interest rates, i. (controlled by adding and draining reserves from banking system). 2. Recall Fisher Equation r = i − πe The federal funds rate is a nominal interest rate i, but it is the real interes ...
THE COMPLETENESS THEOREM: A GUIDED TOUR Theorem 1
... A of L and some s : V → |A| such that |=A Γ[s]. Recall also that the set Γ is consistent (sometimes called deductively consistent for clarity) if there is no formula β such that Γ ` β and Γ ` (¬β). Theorem 2 (Completeness of first order logic, second version). Let Γ is a set of formulas in a languag ...
... A of L and some s : V → |A| such that |=A Γ[s]. Recall also that the set Γ is consistent (sometimes called deductively consistent for clarity) if there is no formula β such that Γ ` β and Γ ` (¬β). Theorem 2 (Completeness of first order logic, second version). Let Γ is a set of formulas in a languag ...
The High Sensitivity of Economic Activity to Financial Frictions
... Kiyotaki and Moore (2008) consider friction arising from liquidity. A firm wishing to invest faces a bottleneck in the rate at which it can raise funds. Anticipating the bottleneck if a favorable investment opportunity arises randomly, the firm keeps money on hand, so that it can take advantage of t ...
... Kiyotaki and Moore (2008) consider friction arising from liquidity. A firm wishing to invest faces a bottleneck in the rate at which it can raise funds. Anticipating the bottleneck if a favorable investment opportunity arises randomly, the firm keeps money on hand, so that it can take advantage of t ...
Income distribution and the size of the financial sector
... 4.1 Piketty (2014, pp. 200; 215-216 and 231-232) fails to appreciate the content of the Symposium on capital theory in the Quarterly Journal of Economics and Samuelson’s Summing up. He considers decreasing marginal productivities, i.e. the assumptions on the mathematical properties relative to the d ...
... 4.1 Piketty (2014, pp. 200; 215-216 and 231-232) fails to appreciate the content of the Symposium on capital theory in the Quarterly Journal of Economics and Samuelson’s Summing up. He considers decreasing marginal productivities, i.e. the assumptions on the mathematical properties relative to the d ...
Fiat Value in the Theory of Value
... businesses is currently done in the United States. In our model world, there are no gains from having institutions that accept demand deposits and originate loans in order to make maturity transformation. There are no social gains from having fractional reserves. Further, there is no too‐big‐t ...
... businesses is currently done in the United States. In our model world, there are no gains from having institutions that accept demand deposits and originate loans in order to make maturity transformation. There are no social gains from having fractional reserves. Further, there is no too‐big‐t ...
Growth Theory in Historical Perspective
... earth. I know that it occurred to me very early, as a natural-born macroeconomist, that even if technology itself is not so very flexible for each single good at a given time, aggregate factor-intensity must be much more variable because the economy can choose to focus on capital-intensive or labor- ...
... earth. I know that it occurred to me very early, as a natural-born macroeconomist, that even if technology itself is not so very flexible for each single good at a given time, aggregate factor-intensity must be much more variable because the economy can choose to focus on capital-intensive or labor- ...
Investment Demand This lecture focuses on the demand for the
... 6. An increase (decrease) in taxes on rental income, (u), leads to a rise (fall) in RK, which causes IK to fall (rise). 7. A decrease (increases) in subsidies for investment, (z), leads to a rise (fall) in RK, which causes IK to fall (rise). 8. Example: Suppose the marginal tax rate of capital is 2 ...
... 6. An increase (decrease) in taxes on rental income, (u), leads to a rise (fall) in RK, which causes IK to fall (rise). 7. A decrease (increases) in subsidies for investment, (z), leads to a rise (fall) in RK, which causes IK to fall (rise). 8. Example: Suppose the marginal tax rate of capital is 2 ...
GOVERNMENT PURCHASES AND N. Gregory Mankiw
... increase. In this circumstance, it is inappropriate to attribute the change in private spending to the change in public spending. Both of these limitations suggest that the model may not be useful for examining the impact ...
... increase. In this circumstance, it is inappropriate to attribute the change in private spending to the change in public spending. Both of these limitations suggest that the model may not be useful for examining the impact ...
Econ 231 / 232 Examples Using MAPLE
... the producer problem of cost minimization. The last example demonstrates how MAPLE can be used to solve a Keynesian macroeconomic system. While students may grasp the concept of an indifference curve, they often have difficulty envisioning a single indifference curve as part of an indifference map. ...
... the producer problem of cost minimization. The last example demonstrates how MAPLE can be used to solve a Keynesian macroeconomic system. While students may grasp the concept of an indifference curve, they often have difficulty envisioning a single indifference curve as part of an indifference map. ...
No Slide Title
... • We can discuss the case that the excess nominal wage inflation is non-zero. • Figure 17.5 graphs the new-Keynesian dynamic aggregate supply curve (SRAS) and its position depends on excess nominal wage inflation, w / w g (the intercept). The purple line is the long run (classical) ...
... • We can discuss the case that the excess nominal wage inflation is non-zero. • Figure 17.5 graphs the new-Keynesian dynamic aggregate supply curve (SRAS) and its position depends on excess nominal wage inflation, w / w g (the intercept). The purple line is the long run (classical) ...
Macroeconomics of Keynesian and Marxian inspirations: Toward a
... - Configuration [4], proportions in the long term, defines the Classical-Marxian field of the formation of production prices within competition. Considering the average values of the variables, one can also define a Classical-Marxian long term macro configuration, as in [3], evocative of the postKey ...
... - Configuration [4], proportions in the long term, defines the Classical-Marxian field of the formation of production prices within competition. Considering the average values of the variables, one can also define a Classical-Marxian long term macro configuration, as in [3], evocative of the postKey ...
Basics of Marxist Economics, by Roger McCain of Drexel University
... determine the rate at which they could be exchanged for one another, though he mentioned some exceptions. If the supply of goods could not be increased by labor, then their value would be determined by their scarcity, and not by the labor embodied in them. Old master paintings would be a case in ...
... determine the rate at which they could be exchanged for one another, though he mentioned some exceptions. If the supply of goods could not be increased by labor, then their value would be determined by their scarcity, and not by the labor embodied in them. Old master paintings would be a case in ...
The Emperor Has New Clothes: Empirical Tests of Mainstream
... 2. The theoretical model and its testable implications. We start with the model of Weitzman (1976). He studies an economy which produces a single consumption good (or multiple consumption goods representable by an index number) using multiple types of capital over infinite time, with a constant disc ...
... 2. The theoretical model and its testable implications. We start with the model of Weitzman (1976). He studies an economy which produces a single consumption good (or multiple consumption goods representable by an index number) using multiple types of capital over infinite time, with a constant disc ...
Nicholas
... This research has been supported in part by a grant from the National Science Foundation. We wish to thank Matthew Canzoneri, Ray Fair, Brian Horrigan, David Papell, and Edmund Phelps for useful comments and assistance. The computations reported in the paper were performed at the Federal Reserve Ban ...
... This research has been supported in part by a grant from the National Science Foundation. We wish to thank Matthew Canzoneri, Ray Fair, Brian Horrigan, David Papell, and Edmund Phelps for useful comments and assistance. The computations reported in the paper were performed at the Federal Reserve Ban ...
Youth Unemployment Rate Remain High
... year, the lowest since 2010. Persistent low global commodities prices impacted our economy to decelerate which saw investment and exports of goods and services expanded at modest pace by 2.7% and 0.1% respectively in 2016. The slowdown in economic activities is one of the major factors that drive up ...
... year, the lowest since 2010. Persistent low global commodities prices impacted our economy to decelerate which saw investment and exports of goods and services expanded at modest pace by 2.7% and 0.1% respectively in 2016. The slowdown in economic activities is one of the major factors that drive up ...
Kuliah 1_Investasi
... When the demand for housing shifts, the equilibrium price of housing changes, and this change in turn affects residential investment. An increase in housing demand, perhaps due to a fall in the interest rate, raises housing prices and residential investment. ...
... When the demand for housing shifts, the equilibrium price of housing changes, and this change in turn affects residential investment. An increase in housing demand, perhaps due to a fall in the interest rate, raises housing prices and residential investment. ...