Biased Technological Progress and Labor Force
... production parameters: namely, differences in the possibilities for factor substitution. 6. The decision to include capital has necessitated the omission of land. While we recognize that the quality and character of land in a low-income economy may have an important effect on production, economic th ...
... production parameters: namely, differences in the possibilities for factor substitution. 6. The decision to include capital has necessitated the omission of land. While we recognize that the quality and character of land in a low-income economy may have an important effect on production, economic th ...
Navigating Risk and Uncertainty in Afghanistan
... several years, due to lead-times for implementation and investment. • Growth will likely remain slow over coming years (around 0.5% for 2016, increasing gradually to 3.8% by 2019), reflecting weak demand and an increasing output gap. • Government does not have sufficient fiscal space for stimulus (e ...
... several years, due to lead-times for implementation and investment. • Growth will likely remain slow over coming years (around 0.5% for 2016, increasing gradually to 3.8% by 2019), reflecting weak demand and an increasing output gap. • Government does not have sufficient fiscal space for stimulus (e ...
A Perspective on the Growth Process in India and China
... productivity, necessarily increases the share of economic surplus in the economy. An increase in inequality in other words is built into the system. Moreover, since those subsisting on economic surplus tend to demand newer goods which are in vogue in the metropolis, and which entail the use of techn ...
... productivity, necessarily increases the share of economic surplus in the economy. An increase in inequality in other words is built into the system. Moreover, since those subsisting on economic surplus tend to demand newer goods which are in vogue in the metropolis, and which entail the use of techn ...
The Solow Growth Model and Economic Growth
... Economic Growth and The Solow Growth Model Looks at the overall economy in the longrun, i.e. Y* = YN. Focuses on a country’s standard of living, measured by real per-capita GDP (income per person). Model is commonly used to prescribe ways to maintain and improve a country’s longrun standard of li ...
... Economic Growth and The Solow Growth Model Looks at the overall economy in the longrun, i.e. Y* = YN. Focuses on a country’s standard of living, measured by real per-capita GDP (income per person). Model is commonly used to prescribe ways to maintain and improve a country’s longrun standard of li ...
Chapter 15 - FIU Faculty Websites
... Together GDP, income, spending, and production are all related and show similar patterns. ...
... Together GDP, income, spending, and production are all related and show similar patterns. ...
the canadian economy - Canadian Foundation for Economic
... to find work (even though we still have many people unemployed). Income levels are relatively high and the overall quality of life is pretty good. Most Canadians probably appreciate the benefits this country provides – even with its problems and shortcomings. Productivity is SO Important One reason ...
... to find work (even though we still have many people unemployed). Income levels are relatively high and the overall quality of life is pretty good. Most Canadians probably appreciate the benefits this country provides – even with its problems and shortcomings. Productivity is SO Important One reason ...
Technology and Economic Growth
... on N growth (= with K growth) which depends on population growth rate (which is given, exogenous) If saving rate rises – long-run Y growth rate does not increase (= growth rate of N) Add technology growth – growth rate of Y changes but it is still exogenous (determined outside of the model) slid ...
... on N growth (= with K growth) which depends on population growth rate (which is given, exogenous) If saving rate rises – long-run Y growth rate does not increase (= growth rate of N) Add technology growth – growth rate of Y changes but it is still exogenous (determined outside of the model) slid ...
Lecture 7: Macro: Growth of the National Economy
... • “We find little evidence that open trade policies–in the sense of lower tariff and non-tariff barriers to trade–are significantly associated with economic growth.” – Thomas Balogh and other pragmatic institutional economists observed long ago that international trade & investment can increase ineq ...
... • “We find little evidence that open trade policies–in the sense of lower tariff and non-tariff barriers to trade–are significantly associated with economic growth.” – Thomas Balogh and other pragmatic institutional economists observed long ago that international trade & investment can increase ineq ...
PDF
... developments are shaping up every minute, such a result should not be totally surprising. ...
... developments are shaping up every minute, such a result should not be totally surprising. ...
1.4 Aggregate Supply
... imperfect competition on the supply side of the economy, which leads to a level of ye (Nairu) which is below what ye would be if perfect competition were to be assumed (see VPC) • Let’s begin by compare the perfect competition and imperfect competition models • As we will see Rodrik’s advise that we ...
... imperfect competition on the supply side of the economy, which leads to a level of ye (Nairu) which is below what ye would be if perfect competition were to be assumed (see VPC) • Let’s begin by compare the perfect competition and imperfect competition models • As we will see Rodrik’s advise that we ...
Module 38: Productivity and Growth
... higher real GDP per capita than less fortunate countries. ◦ EX: Middle East’s oil deposits …But other things are often not equal; in the modern world, natural resources are a much less important determinant of productivity than human or physical capital for the great majority of countries. ◦ EX: Jap ...
... higher real GDP per capita than less fortunate countries. ◦ EX: Middle East’s oil deposits …But other things are often not equal; in the modern world, natural resources are a much less important determinant of productivity than human or physical capital for the great majority of countries. ◦ EX: Jap ...
Aggregate Demand Theories of the Business Cycle
... Eventually money wages fall so that the recession ends. The new classical theory asserts that only unanticipated changes in aggregate demand affect real wages; anticipated changes affect the nominal wage rate and have no effect on real wage rates. Anticipated changes in aggregate demand have no e ...
... Eventually money wages fall so that the recession ends. The new classical theory asserts that only unanticipated changes in aggregate demand affect real wages; anticipated changes affect the nominal wage rate and have no effect on real wage rates. Anticipated changes in aggregate demand have no e ...
forChapter5
... If the multiplier itself increases because of a fall in the tax rate, t1 , the IS relation shifts to the right and becomes flatter. Any change in the interest rate would then have a larger effect on aggregate demand because the basic multiplier is larger. 4. The first three equations are identical. ...
... If the multiplier itself increases because of a fall in the tax rate, t1 , the IS relation shifts to the right and becomes flatter. Any change in the interest rate would then have a larger effect on aggregate demand because the basic multiplier is larger. 4. The first three equations are identical. ...
Navigating Risk and Uncertainty in Afghanistan
... demand and an increasing output gap. • Government does not have sufficient fiscal space for stimulus (e.g. increased social transfers) to boost short-term growth. ...
... demand and an increasing output gap. • Government does not have sufficient fiscal space for stimulus (e.g. increased social transfers) to boost short-term growth. ...
industrial development in nigeria in the context of globalization
... nations’ markets are essentially complementary to a large extent and less competitive. It should be noted that the manufacturing sectors of economies from the south have vanished with United States of America and European’s market penetration in the current round of Globalization. Thus, developing c ...
... nations’ markets are essentially complementary to a large extent and less competitive. It should be noted that the manufacturing sectors of economies from the south have vanished with United States of America and European’s market penetration in the current round of Globalization. Thus, developing c ...
Growth in the Economic System (cont`d)
... Prices are set exclusively by supply and demand and accepted by both sellers and buyers. ...
... Prices are set exclusively by supply and demand and accepted by both sellers and buyers. ...
Slide 1
... The Demand Curve • The demand schedule is a table that shows how much of a good or service consumers will want to buy at different prices • As price rises, quantity demanded falls – the actual amount consumers are willing to buy at a some specific price ...
... The Demand Curve • The demand schedule is a table that shows how much of a good or service consumers will want to buy at different prices • As price rises, quantity demanded falls – the actual amount consumers are willing to buy at a some specific price ...
Population, Resources, and Energy in the Global
... periods, for example the mid-1970s and the late 1980’s, when price spikes led to some speculation that the long-term declining trend was over, but these previous price increases proved temporary. This may yet be the case with the current price spikes for many minerals, but there are indications that ...
... periods, for example the mid-1970s and the late 1980’s, when price spikes led to some speculation that the long-term declining trend was over, but these previous price increases proved temporary. This may yet be the case with the current price spikes for many minerals, but there are indications that ...
negative externalities as the engine of growth in an evolutionary
... Important resources for welfare like the social climate, the quality of human relationships, sociability and solidarity, and also to some extent social discipline, the capacity for collective cooperation and action, the social virtues of “truth, trust, obligation” (Hirsch (1976)), seem negatively co ...
... Important resources for welfare like the social climate, the quality of human relationships, sociability and solidarity, and also to some extent social discipline, the capacity for collective cooperation and action, the social virtues of “truth, trust, obligation” (Hirsch (1976)), seem negatively co ...
Making Europe Great Again?
... were an important stimulus to investment, which allowed new technology to be installed, and growth (Gilmore, 2009). This can be seen as an enhancement of ‘social capability’ under Golden-Age conditions. In other countries, for example, Italy, growth was promoted by industrialization based on elastic ...
... were an important stimulus to investment, which allowed new technology to be installed, and growth (Gilmore, 2009). This can be seen as an enhancement of ‘social capability’ under Golden-Age conditions. In other countries, for example, Italy, growth was promoted by industrialization based on elastic ...
Unit 5 Test …may the force be with you…….
... 2. There are three factors that help explain that slope of the aggregate demand curve. Which two are less important? Why are they less important? ANS: The wealth effect and the exchange-rate effect are less important than the interest-rate effect in the United States. The wealth effect is not very i ...
... 2. There are three factors that help explain that slope of the aggregate demand curve. Which two are less important? Why are they less important? ANS: The wealth effect and the exchange-rate effect are less important than the interest-rate effect in the United States. The wealth effect is not very i ...
Ragnar Nurkse's balanced growth theory
The balanced growth theory is an economic theory pioneered by the economist Ragnar Nurkse (1907–1959). The theory hypothesises that the government of any underdeveloped country needs to make large investments in a number of industries simultaneously. This will enlarge the market size, increase productivity, and provide an incentive for the private sector to invest.Nurkse was in favour of attaining balanced growth in both the industrial and agricultural sectors of the economy. He recognised that the expansion and inter-sectoral balance between agriculture and manufacturing is necessary so that each of these sectors provides a market for the products of the other and in turn, supplies the necessary raw materials for the development and growth of the other.Nurkse and Paul Rosenstein-Rodan were the pioneers of balanced growth theory and much of how it is understood today dates back to their work.Nurkse's theory discusses how the poor size of the market in underdeveloped countries perpetuates its underdeveloped state. Nurkse has also clarified the various determinants of the market size and puts primary focus on productivity. According to him, if the productivity levels rise in a less developed country, its market size will expand and thus it can eventually become a developed economy. Apart from this, Nurkse has been nicknamed an export pessimist, as he feels that the finances to make investments in underdeveloped countries must arise from their own domestic territory. No importance should be given to promoting exports.