department of economics yale university
... expectations of recipients. If they have positive expectations about the future and if the risks are perceived as low, then they are likely to invest the remittances. However, it is also possible that recipients are overly dependent on remittances for consumption purposes. So, the higher income will ...
... expectations of recipients. If they have positive expectations about the future and if the risks are perceived as low, then they are likely to invest the remittances. However, it is also possible that recipients are overly dependent on remittances for consumption purposes. So, the higher income will ...
The Role of Foreign Direct Investment in the Context of Economic
... Notwithstanding the role of MNEs is seen as a means to actualise the process of technology transfer and FDI does represent the most efficient option to promote a process of industrial development (Narula and Dunning 2000), there are obvious limitations of FDI as a driver to technology and industrial ...
... Notwithstanding the role of MNEs is seen as a means to actualise the process of technology transfer and FDI does represent the most efficient option to promote a process of industrial development (Narula and Dunning 2000), there are obvious limitations of FDI as a driver to technology and industrial ...
Growth, Distribution and Effective Demand: the supermultiplier
... In the second equation above the term within the parentheses (i.e, + ℎ) can be interpreted as the economy’s marginal propensity to spend. If the marginal propensity to spend has a positive value lower than one, then an expansion (a reduction) in aggregate output resulting from the production decis ...
... In the second equation above the term within the parentheses (i.e, + ℎ) can be interpreted as the economy’s marginal propensity to spend. If the marginal propensity to spend has a positive value lower than one, then an expansion (a reduction) in aggregate output resulting from the production decis ...
- Munich Personal RePEc Archive
... be the most affected by financial market imperfections, such as information asymmetries, moral hazard problems, contract enforcement costs, and higher transactions costs”. There are other channels through which financial development may increase income inequality. For example, Dollar and Kraay (200 ...
... be the most affected by financial market imperfections, such as information asymmetries, moral hazard problems, contract enforcement costs, and higher transactions costs”. There are other channels through which financial development may increase income inequality. For example, Dollar and Kraay (200 ...
Progressive approaches to budget deficits Malcolm Sawyer
... firms (retained profits), If , Ih investment by firms and households respectively. An individual household may be both saving and dissaving at the same time (e.g. making contributions to pension funds but also taking out consumer credit). Further much savings is undertaken by corporations. A signifi ...
... firms (retained profits), If , Ih investment by firms and households respectively. An individual household may be both saving and dissaving at the same time (e.g. making contributions to pension funds but also taking out consumer credit). Further much savings is undertaken by corporations. A signifi ...
PERUVIAN ECONOMIC ASSOCIATION Spillovers, capital flows and prudential regulation in
... and non-tradable sectors of the economy. Entrepreneurs face borrowing constraints to finance both production and the acquisition of capital. Workers and entrepreneurs consume a basket of tradable and non-tradable goods. We introduce two types of durable goods, houses and capital and both serve as co ...
... and non-tradable sectors of the economy. Entrepreneurs face borrowing constraints to finance both production and the acquisition of capital. Workers and entrepreneurs consume a basket of tradable and non-tradable goods. We introduce two types of durable goods, houses and capital and both serve as co ...
Policy Trade-o¤s and International Spillover E¤ects at the Zero Bound Alex Haberis
... economy in response to global shocks? The …nancial crisis of 2007-2008 and the subsequent “Great Recession” led central banks around the world to lower nominal interest rates to close to zero. Given the international nature of the crisis this question concerning the role of openness and internationa ...
... economy in response to global shocks? The …nancial crisis of 2007-2008 and the subsequent “Great Recession” led central banks around the world to lower nominal interest rates to close to zero. Given the international nature of the crisis this question concerning the role of openness and internationa ...
Changing Income Inequality in the Second Half of the 20th Century
... coefficient of 0.43 for their sample of 13 developed countries around 1970, this average Gini decreases after transfers to 0.37 and further to 0.35 after transfers and taxes. This pattern itself is not very astonishing. But at the same time the differences in inequality between the 13 countries increas ...
... coefficient of 0.43 for their sample of 13 developed countries around 1970, this average Gini decreases after transfers to 0.37 and further to 0.35 after transfers and taxes. This pattern itself is not very astonishing. But at the same time the differences in inequality between the 13 countries increas ...
NBER WORKING PAPER SERIES STABILIZATION POLICIES IN OPEN ECONOMIES Richard C. Marston
... such an economy, which was the paradigm most common in the 1950's and earlier, international capital mobility is low or non—existent, money supplies are controlled by the national authorities and price linkages across countries are ...
... such an economy, which was the paradigm most common in the 1950's and earlier, international capital mobility is low or non—existent, money supplies are controlled by the national authorities and price linkages across countries are ...
Household, Private and Public Savings and
... considers the growth of private and gross domestic savings on economic growth; Mühleisen (1997) examines sectoral savings but not investment; Agrawal (2000) studies private and total savings and investment rates; Mahambare and Balasubramanyam (2000) analyse savings but not investment and economic g ...
... considers the growth of private and gross domestic savings on economic growth; Mühleisen (1997) examines sectoral savings but not investment; Agrawal (2000) studies private and total savings and investment rates; Mahambare and Balasubramanyam (2000) analyse savings but not investment and economic g ...
NBER WORKING PAPER SERIES WAGES, RELATIVE PRICES AND CHOICE BETWEEN
... which Flood and Marion (1980) term an extended small country analysis, is preferable to a symmetric two country analysis for studying exchange rate policy for a single country. Not only is it easier to understand (because the analysis can proceed in two stages), but it accords better with the situat ...
... which Flood and Marion (1980) term an extended small country analysis, is preferable to a symmetric two country analysis for studying exchange rate policy for a single country. Not only is it easier to understand (because the analysis can proceed in two stages), but it accords better with the situat ...
chapter overview
... The multiplier concept can be demonstrated effectively by a role-playing exercise in which you have students pretend that one row (group) of students are construction workers who benefit from a $1 million increase in investment spending. (Some instructors use an oversized paper $1-million bill.) If ...
... The multiplier concept can be demonstrated effectively by a role-playing exercise in which you have students pretend that one row (group) of students are construction workers who benefit from a $1 million increase in investment spending. (Some instructors use an oversized paper $1-million bill.) If ...
Entrepreneurship, Innovation, and Economic
... definition of entrepreneurship is that it is about the ‘discovery and exploitation of opportunities’ (Shane and Ventakaraman 2000).2 Baumol (1990) recognized that not all opportunity exploitation will necessarily be in society’s best interest, and he defined entrepreneurs very broadly as ‘persons who ...
... definition of entrepreneurship is that it is about the ‘discovery and exploitation of opportunities’ (Shane and Ventakaraman 2000).2 Baumol (1990) recognized that not all opportunity exploitation will necessarily be in society’s best interest, and he defined entrepreneurs very broadly as ‘persons who ...
Sources Latin America
... employed is often not in accordance with the official classification. Moreover multiple jobholders are only counted once in the labour force survey according to their most important activity, while they may be active in more than one sector. However, the latter does not seem to be a disadvantage in ...
... employed is often not in accordance with the official classification. Moreover multiple jobholders are only counted once in the labour force survey according to their most important activity, while they may be active in more than one sector. However, the latter does not seem to be a disadvantage in ...
The evolution of economic convergence in the
... at the same rate over time. This condition is overly restrictive, and it fails to account for the cross-country income heterogeneity observed in the data. Several papers, including Parente and Prescott (1994), Barro and Sala-i-Martin (1997), Basu and Weil (1998), and Howitt and Mayer-Foulkes (2005) ...
... at the same rate over time. This condition is overly restrictive, and it fails to account for the cross-country income heterogeneity observed in the data. Several papers, including Parente and Prescott (1994), Barro and Sala-i-Martin (1997), Basu and Weil (1998), and Howitt and Mayer-Foulkes (2005) ...
Preliminary GDP report – Domestic demand stands out as Mexico`s
... primary activities increased 4.9% yoy, while the industrial sector fell 1% yoy, as a result of the deceleration in manufacturing output and the recession in the mining industry. Finally, services expanded 3.3% yoy, which suggests that domestic demand continues to be Mexico’s main growth driver. In s ...
... primary activities increased 4.9% yoy, while the industrial sector fell 1% yoy, as a result of the deceleration in manufacturing output and the recession in the mining industry. Finally, services expanded 3.3% yoy, which suggests that domestic demand continues to be Mexico’s main growth driver. In s ...
RQ_ANS
... The country of Nemedia does not trade with any other country. Its GDP is $20 billion. Its government collects $4 billion in taxes and pays out $3 billion to households in the form of transfer payments. Consumption equals $15 billion and investment equals $2 billion. What is public saving in Nemedia, ...
... The country of Nemedia does not trade with any other country. Its GDP is $20 billion. Its government collects $4 billion in taxes and pays out $3 billion to households in the form of transfer payments. Consumption equals $15 billion and investment equals $2 billion. What is public saving in Nemedia, ...
Real Unit Labour Costs in Eurozone Countries: Drivers and
... of the RULCs in the Eurozone. The main reason is that, although economies with different economic size and structure may appear to follow a similar development path, they may converge at different speeds and, therefore, may actually be at different stages of that same path. Moreover, although Phillips ...
... of the RULCs in the Eurozone. The main reason is that, although economies with different economic size and structure may appear to follow a similar development path, they may converge at different speeds and, therefore, may actually be at different stages of that same path. Moreover, although Phillips ...
On the Opportunity Cost of Corruption
... enforcement, although inveighing against corruption is one thing, while exerting the costly resources needed to combat it is another. For example in China corruption is often a capital offense, and while harsh prison sentences and even executions are fairly common, China is still thought to have a g ...
... enforcement, although inveighing against corruption is one thing, while exerting the costly resources needed to combat it is another. For example in China corruption is often a capital offense, and while harsh prison sentences and even executions are fairly common, China is still thought to have a g ...
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.