Lecture Notes - Wiwi Uni
... This area of study is called growth theory and we will discuss the neoclassical growth model. As a sneak preview, the economy grows over time because: 1 The data have quarterly frequency, i.e. there one observation for real GDP for each quarter. The …rst observation is the GDP for the …rst three mon ...
... This area of study is called growth theory and we will discuss the neoclassical growth model. As a sneak preview, the economy grows over time because: 1 The data have quarterly frequency, i.e. there one observation for real GDP for each quarter. The …rst observation is the GDP for the …rst three mon ...
Animal Spirits and the International Transmission of Business Cycles
... y t2 = a1 Et y t2+1 + (1 − a1 ) y t2−1 + a 2 ( rt − Etπ t2+1 ) + ( X t2 − M t2 ) + ε t2 (1.2) ...
... y t2 = a1 Et y t2+1 + (1 − a1 ) y t2−1 + a 2 ( rt − Etπ t2+1 ) + ( X t2 − M t2 ) + ε t2 (1.2) ...
chapter 4 aggregate demand and aggregate supply
... willing to offer higher prices to employ them. The higher prices paid for these resources raises the prices of goods produced with them. Another way of explaining the upward-sloping segment is to suppose that the price level increases from 100 to 110. As the price level increases, so does the spread ...
... willing to offer higher prices to employ them. The higher prices paid for these resources raises the prices of goods produced with them. Another way of explaining the upward-sloping segment is to suppose that the price level increases from 100 to 110. As the price level increases, so does the spread ...
Document
... as a function of the price surprise. A more complicated expression of the Lucas supply curve adds expectations to the model. Aggregate supply is a function of the natural level of output(Y_) and the difference between actual prices (P_t) and the expected price level given past information \Omega_ ti ...
... as a function of the price surprise. A more complicated expression of the Lucas supply curve adds expectations to the model. Aggregate supply is a function of the natural level of output(Y_) and the difference between actual prices (P_t) and the expected price level given past information \Omega_ ti ...
research paper series Research Paper 2005/41
... panel of developing countries. Focusing on five East Asian countries, Velde and Morrissey (2002) reach similar conclusions. Wu (2001) distinguishes FDI characterized by relatively skill-biased technology, from FDI with relatively labor based technology, and, using Chinese data, shows that the former ...
... panel of developing countries. Focusing on five East Asian countries, Velde and Morrissey (2002) reach similar conclusions. Wu (2001) distinguishes FDI characterized by relatively skill-biased technology, from FDI with relatively labor based technology, and, using Chinese data, shows that the former ...
The Economic Contribution of Singapore Copyright Activities
... The value added of copyright-based industries grew in real terms at 8.9% per annum between 1986 and 2001.6 On an annual basis, this was 1.3% points higher than the 7.6% GDP growth witnessed by the Singapore economy over the same period (Chart 3). High growth was predominant between 1986 and 1990 wit ...
... The value added of copyright-based industries grew in real terms at 8.9% per annum between 1986 and 2001.6 On an annual basis, this was 1.3% points higher than the 7.6% GDP growth witnessed by the Singapore economy over the same period (Chart 3). High growth was predominant between 1986 and 1990 wit ...
Technology Diffusion and Postwar Growth
... to their prewar growth paths. The second is that, contrary to the U.S., both Germany and Japan did not converge to this prewar path but instead busted through it and converged to a growth path that was substantially higher than that in the prewar period. Just like for the declines during WWII, the p ...
... to their prewar growth paths. The second is that, contrary to the U.S., both Germany and Japan did not converge to this prewar path but instead busted through it and converged to a growth path that was substantially higher than that in the prewar period. Just like for the declines during WWII, the p ...
Postwar Macroeconomics: The Evolution of Events and Ideas
... ideas. For example, in some cases the evolution of the economic aggregates helped to decide a debate between schools of thought. In other cases events occurred that could not be understood within the context of existing paradigms and required the invention of new explanations. The most useful framew ...
... ideas. For example, in some cases the evolution of the economic aggregates helped to decide a debate between schools of thought. In other cases events occurred that could not be understood within the context of existing paradigms and required the invention of new explanations. The most useful framew ...
When Fast Growing Economies Slow Down
... where yt is per capita gross domestic product (GDP) in constant 2005 international (purchasing power parity [PPP]) prices, and gt, t + n and gt, t – n are the average growth rate between year t and t + n and the average growth rate between t – n and t, respectively. Following Hausmann, Pritchett, an ...
... where yt is per capita gross domestic product (GDP) in constant 2005 international (purchasing power parity [PPP]) prices, and gt, t + n and gt, t – n are the average growth rate between year t and t + n and the average growth rate between t – n and t, respectively. Following Hausmann, Pritchett, an ...
$doc.title
... South African economy as the key component of the supply-side model. The production function is used to derive a measure for capacity utilisation in the model, a property which a cost function does not exhibit. The resulting production function identifies the technology and properties of the South A ...
... South African economy as the key component of the supply-side model. The production function is used to derive a measure for capacity utilisation in the model, a property which a cost function does not exhibit. The resulting production function identifies the technology and properties of the South A ...
Global Export Forecast - Spring 2016
... Why is it not more obvious? GDP numbers don’t reflect this story for two key reasons. First, the energy sector, where shale oil and gas plays had attracted billions in investment in recent years, is collapsing. Low world prices have more than decimated the sector, which needs much higher prices to b ...
... Why is it not more obvious? GDP numbers don’t reflect this story for two key reasons. First, the energy sector, where shale oil and gas plays had attracted billions in investment in recent years, is collapsing. Low world prices have more than decimated the sector, which needs much higher prices to b ...
oecd development centre
... For forty years between 1965 and 2004, the G7 economies accounted for an average of 65 per cent of global GDP measured at market exchange rates. Despite major events in the global economy—the collapse of the Bretton Woods fixed exchange rate arrangement in 1971, oil price spikes in 1973 and 1979, st ...
... For forty years between 1965 and 2004, the G7 economies accounted for an average of 65 per cent of global GDP measured at market exchange rates. Despite major events in the global economy—the collapse of the Bretton Woods fixed exchange rate arrangement in 1971, oil price spikes in 1973 and 1979, st ...
Green Agrowth as a Third Option: Removing the GDP
... The debate on growth versus the environment has a long history. It is usually summarized as occurring mainly between optimists believing in limitless growth and pessimists seeing environmental and natural resource limits to growth. Although a more subtle classification of viewpoints is possible 1, t ...
... The debate on growth versus the environment has a long history. It is usually summarized as occurring mainly between optimists believing in limitless growth and pessimists seeing environmental and natural resource limits to growth. Although a more subtle classification of viewpoints is possible 1, t ...
"Specialization, Economic Development and Aggregate Productivity Differences"
... adoption could explain as much as 25% of the agriculture productivity gap between the richest and poorest countries. Gollin, Parente and Rogerson (2004) argue that barriers of a different sort, namely to capital accumulation, could be at the heart of low measured agricultural productivity in poor co ...
... adoption could explain as much as 25% of the agriculture productivity gap between the richest and poorest countries. Gollin, Parente and Rogerson (2004) argue that barriers of a different sort, namely to capital accumulation, could be at the heart of low measured agricultural productivity in poor co ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Output Measurement in the Service Sectors
... Services, as distinct from commodities, have been the focus of great interest in recent years. In large part this interest is the result of the apparent growing importance of services in the economic life of nations. This, in turn, could be either because the demand for services is income elastic an ...
... Services, as distinct from commodities, have been the focus of great interest in recent years. In large part this interest is the result of the apparent growing importance of services in the economic life of nations. This, in turn, could be either because the demand for services is income elastic an ...
Prospect of FDI-Led Industrialization in Ethiopia
... developing countries like Ethiopia to focus on the manufacturing subsector in their endeavor to transform their traditional economy into a modern one. However, there is no single model for industrialization that all developed economies employed. Tracing back the history of industrialization reve ...
... developing countries like Ethiopia to focus on the manufacturing subsector in their endeavor to transform their traditional economy into a modern one. However, there is no single model for industrialization that all developed economies employed. Tracing back the history of industrialization reve ...
State of the Economy and Prospects
... of the irreconcilability of rate of f ixed investment of around 30 per cent of GDP and sub-5 per cent growth, given India’s demand conditions and long-term incremental capital-output ratio. Application of time series techniques that attempt to decompose the slowdown into structural and cyclical comp ...
... of the irreconcilability of rate of f ixed investment of around 30 per cent of GDP and sub-5 per cent growth, given India’s demand conditions and long-term incremental capital-output ratio. Application of time series techniques that attempt to decompose the slowdown into structural and cyclical comp ...
Accumulation Regimes, Endogenous Desired
... utilization as an exogenous variable of the model (cf. Amadeo, 1986) so that a change in profit share cannot produce a change in planned degree of capacity utilization. Thus, the objective of the present article is to introduce the desired degree of capacity utilization as an endogenous variable in ...
... utilization as an exogenous variable of the model (cf. Amadeo, 1986) so that a change in profit share cannot produce a change in planned degree of capacity utilization. Thus, the objective of the present article is to introduce the desired degree of capacity utilization as an endogenous variable in ...
What is the weakest link for entrepreneurial activity in Burundi? ∗†
... 2 See Hausmann, Rodriguez and Wagner (2008) for an analysis of growth collapses in the world 3 The estimates of population shown in the World Development Indicators are slightly away from the recent census results (WDI population estimates from United Nations roughly overestimated by roughly half a ...
... 2 See Hausmann, Rodriguez and Wagner (2008) for an analysis of growth collapses in the world 3 The estimates of population shown in the World Development Indicators are slightly away from the recent census results (WDI population estimates from United Nations roughly overestimated by roughly half a ...
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.