Scale effects in Schumpeterian models of economic growth
... competitive equilibria to diverge from optimal plans, fully-speci®ed competitive equilibria also preserve the prediction that growth rates increase with economy size4. Nonetheless, in the decade following Romer's ®rst contributions, theorists have been curiously ambivalent about the importance that ...
... competitive equilibria to diverge from optimal plans, fully-speci®ed competitive equilibria also preserve the prediction that growth rates increase with economy size4. Nonetheless, in the decade following Romer's ®rst contributions, theorists have been curiously ambivalent about the importance that ...
April 2017 World Economic Outlook, Chapter 1: Global
... short-term growth could indeed surprise on the upside. But these positive developments should not distract from binding structural impediments to a stronger recovery and a balance of risks that remains tilted to the downside, especially over the medium term. Structural problems—such as low productiv ...
... short-term growth could indeed surprise on the upside. But these positive developments should not distract from binding structural impediments to a stronger recovery and a balance of risks that remains tilted to the downside, especially over the medium term. Structural problems—such as low productiv ...
Market Failure
... Labor Unions in the United States 463 Why Are There Labor Unions? 464 Union Impact on Labor Supply and Wages 464 Wage Differences for Similarly Skilled Workers 464 Can Unions Lead to Increased Productivity? 465 16.5 The Markets for Land and Capital 466 The Supply of and Demand for Land 466 Supply an ...
... Labor Unions in the United States 463 Why Are There Labor Unions? 464 Union Impact on Labor Supply and Wages 464 Wage Differences for Similarly Skilled Workers 464 Can Unions Lead to Increased Productivity? 465 16.5 The Markets for Land and Capital 466 The Supply of and Demand for Land 466 Supply an ...
Eurozone: increasing uncertainty weighs on growth
... France: doubts remain about the sustainability of the recovery, but it may be moving at a relatively stable pace In 4Q15, activity grew at the steady rate of 0.3% QoQ (revised upwards by 0.1 pp), despite the negative impact of the terrorist attacks on private consumption and the negative effect of ...
... France: doubts remain about the sustainability of the recovery, but it may be moving at a relatively stable pace In 4Q15, activity grew at the steady rate of 0.3% QoQ (revised upwards by 0.1 pp), despite the negative impact of the terrorist attacks on private consumption and the negative effect of ...
Chapter 9 The IS-LM/AD
... (a) an increase in prices and an increase in real interest rates. (b) an increase in prices, an increase in nominal interest rates, but a decrease in real interest rates. (c) a decrease in prices and a decrease in real interest rates. (d) a decrease in prices, a decrease in nominal interest rates, b ...
... (a) an increase in prices and an increase in real interest rates. (b) an increase in prices, an increase in nominal interest rates, but a decrease in real interest rates. (c) a decrease in prices and a decrease in real interest rates. (d) a decrease in prices, a decrease in nominal interest rates, b ...
A theory of trade in a global production network
... Costinot (2011), and Rauch and Watson (2004). All these papers consider a separate intermediary sector that facilitates matching between producers and foreign buyers. In our setting, all countries add value to their exports. But, they are at the same time intermediaries of the foreign value added co ...
... Costinot (2011), and Rauch and Watson (2004). All these papers consider a separate intermediary sector that facilitates matching between producers and foreign buyers. In our setting, all countries add value to their exports. But, they are at the same time intermediaries of the foreign value added co ...
THE DETERMINANTS OF THE JAPANESE ECONOMIC GROWTH
... in most of the countries. Over the last hundred years, most countries have experienced significant economic growth in historical terms. A quick overview shows that the phenomenon of rapid economic growth began about two centuries. This growth is manifested by a continual increase in aggregate real i ...
... in most of the countries. Over the last hundred years, most countries have experienced significant economic growth in historical terms. A quick overview shows that the phenomenon of rapid economic growth began about two centuries. This growth is manifested by a continual increase in aggregate real i ...
Natural Capital, Sustainability and Productivity
... sewage treatment plants (reproduced capital) can substitute for the waste absorption capacity of rivers and lakes. The concepts of weak and strong sustainability reflect the essentialness of natural capital to the economy and the environment. Weak sustainability means that an aggregate stock of capi ...
... sewage treatment plants (reproduced capital) can substitute for the waste absorption capacity of rivers and lakes. The concepts of weak and strong sustainability reflect the essentialness of natural capital to the economy and the environment. Weak sustainability means that an aggregate stock of capi ...
text hrs
... productivity of domestic capital than other types of capital flows. (For a comparison among various estimation methods, see Appendix 1.) A distinct trait of FDI, analyzed in a model developed by Razin and Sadka (2002/1), is the capacity for actual control and hands-on management of the firm. In a la ...
... productivity of domestic capital than other types of capital flows. (For a comparison among various estimation methods, see Appendix 1.) A distinct trait of FDI, analyzed in a model developed by Razin and Sadka (2002/1), is the capacity for actual control and hands-on management of the firm. In a la ...
Unemployment File
... services. The aggregate curve shows the total demand for labour at a given wage rate. The aggregate demand curve slopes downwards, because at a lower wage level, producers are more willing to take on more labour (eg producers demand for workers increases.) The aggregate supply curve (ASL ) illustrat ...
... services. The aggregate curve shows the total demand for labour at a given wage rate. The aggregate demand curve slopes downwards, because at a lower wage level, producers are more willing to take on more labour (eg producers demand for workers increases.) The aggregate supply curve (ASL ) illustrat ...
Structural Change, the Real Exchange Rate, and the Balance of
... enough for the Kaldorian mechanism of export-led cumulative causation to operate. As discussed by Blecker (2013), this mechanism assumes feedbacks from export growth to output growth to productivity growth, which in turn affect the RER by making domestic goods more (or less) price-competitive. In th ...
... enough for the Kaldorian mechanism of export-led cumulative causation to operate. As discussed by Blecker (2013), this mechanism assumes feedbacks from export growth to output growth to productivity growth, which in turn affect the RER by making domestic goods more (or less) price-competitive. In th ...
A Neoclassical Growth Model for the Insiders – Outsiders Society
... Abstract: In a representative panel of developed economies, the public sector wage premium, as measured by the ratio of the average wage rate in the public relative to the private sector, varies considerably across countries, as well as over large periods of time. Moreover, it correlates negatively ...
... Abstract: In a representative panel of developed economies, the public sector wage premium, as measured by the ratio of the average wage rate in the public relative to the private sector, varies considerably across countries, as well as over large periods of time. Moreover, it correlates negatively ...
the strategic roadmap for the production of consumer goods in
... Interpretation of the long term-vision Further improvement of favorable business environment, increased access to funding and international markets and introduction of innovative mind-set in all related areas will create favorable conditions for the SMEs in Azerbaijan. This way, Azerbaijani SMEs wil ...
... Interpretation of the long term-vision Further improvement of favorable business environment, increased access to funding and international markets and introduction of innovative mind-set in all related areas will create favorable conditions for the SMEs in Azerbaijan. This way, Azerbaijani SMEs wil ...
Untitled - Cengage
... goods and services. Taxes impair the operation of the economy by inducing individuals to make choices based not only on the benefits and costs of their actions but also on the tax advantages or disadvantages of their decisions. The distortion in resource use and loss in output that results from the ...
... goods and services. Taxes impair the operation of the economy by inducing individuals to make choices based not only on the benefits and costs of their actions but also on the tax advantages or disadvantages of their decisions. The distortion in resource use and loss in output that results from the ...
Aggregate Expenditure and Equilibrium Output
... Household Consumption and Saving • The fraction of a change in income that is saved is called the marginal propensity to save (MPS). ...
... Household Consumption and Saving • The fraction of a change in income that is saved is called the marginal propensity to save (MPS). ...
2014-15 Budget medium-term economic projections
... projections. While the former take into account cyclical movements in the economy, the latter has been largely underpinned by assumptions that the economy is at its long-run equilibrium. The economy can diverge far from equilibrium, often for sustained periods of time, with two key external shocks — ...
... projections. While the former take into account cyclical movements in the economy, the latter has been largely underpinned by assumptions that the economy is at its long-run equilibrium. The economy can diverge far from equilibrium, often for sustained periods of time, with two key external shocks — ...
24729 33 c33 p737-776
... When real GDP grows rapidly, business is good. During such periods of economic expansion, most firms find that customers are plentiful and that profits are growing. When real GDP falls during recessions, businesses have trouble. During such periods of economic contraction, most firms experience decl ...
... When real GDP grows rapidly, business is good. During such periods of economic expansion, most firms find that customers are plentiful and that profits are growing. When real GDP falls during recessions, businesses have trouble. During such periods of economic contraction, most firms experience decl ...
Lecture notes on the Cambridge equation and the neo
... capacity savings forthcoming from the larger installed capacity. So in the long run expected aggregate demand leads economic growth by determining an adjustment of output capacity. If, on the other hand, expected demand slows down, there will slowly be a downsizing of output capacity. Labour populat ...
... capacity savings forthcoming from the larger installed capacity. So in the long run expected aggregate demand leads economic growth by determining an adjustment of output capacity. If, on the other hand, expected demand slows down, there will slowly be a downsizing of output capacity. Labour populat ...
Lecture 13 - UCSB Economics
... a. Discuss two major reasons why Malthus’ prediction did not come true for modern developed economies. b. Does Malthusian thinking have any relevance in today’s world? Are there countries that come closer to fitting the Malthusian model? Could the world as a whole face a Malthusian problem in the fu ...
... a. Discuss two major reasons why Malthus’ prediction did not come true for modern developed economies. b. Does Malthusian thinking have any relevance in today’s world? Are there countries that come closer to fitting the Malthusian model? Could the world as a whole face a Malthusian problem in the fu ...
norface08 Alho 8162004 en
... nominal convergence in relative wages and prices, i.e. real appreciation. The inflationary development in the new member countries is also vital, e.g., from the point of view of ECB monetary policy and the entrance of the new member countries into the Economic and Monetary Union. See Figures 1 and 2 ...
... nominal convergence in relative wages and prices, i.e. real appreciation. The inflationary development in the new member countries is also vital, e.g., from the point of view of ECB monetary policy and the entrance of the new member countries into the Economic and Monetary Union. See Figures 1 and 2 ...
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.