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Private Investment and Economic growth
... contribution of private investment to economic growth is larger than that of public investment. This notion is based on the contention that the marginal productivity of the former is greater than that of the latter (Khan and Reinhart, 1990; Serven and Solimano, 1992), although some studies have show ...
... contribution of private investment to economic growth is larger than that of public investment. This notion is based on the contention that the marginal productivity of the former is greater than that of the latter (Khan and Reinhart, 1990; Serven and Solimano, 1992), although some studies have show ...
Chapter 9
... During the 1970s, the world economy was hit with unfavorable supply shocks that raised prices and lowered output, including spikes in oil prices. • Increases in oil prices shift the aggregate supply curve. However, they also have an adverse effect on aggregate demand. • Because the United States is ...
... During the 1970s, the world economy was hit with unfavorable supply shocks that raised prices and lowered output, including spikes in oil prices. • Increases in oil prices shift the aggregate supply curve. However, they also have an adverse effect on aggregate demand. • Because the United States is ...
Measuring National Output and National Income
... Calculating Real GDP • In order to accurately assess the real growth of the economy over time, we need to measure output with a constant set of prices. One year is chosen as the base year and then every year’s output is evaluated in terms of the prices in the base year. ...
... Calculating Real GDP • In order to accurately assess the real growth of the economy over time, we need to measure output with a constant set of prices. One year is chosen as the base year and then every year’s output is evaluated in terms of the prices in the base year. ...
IOSR Journal Of Humanities And Social Science (IOSR-JHSS)
... illegal, to be one of the major consequences of developing countries’ population growth. Though many factors cause migration, an excess of job seekers (caused by rapid population growth) over job opportunities in the LDC economy is surely one of them. However, unlike the first six consequences liste ...
... illegal, to be one of the major consequences of developing countries’ population growth. Though many factors cause migration, an excess of job seekers (caused by rapid population growth) over job opportunities in the LDC economy is surely one of them. However, unlike the first six consequences liste ...
Parkin-Bade Chapter 28
... When the inflation forecast is correct, the economy operates at full employment. If aggregate demand grows faster than expected, real GDP moves above potential GDP, the inflation rate exceeds its expected rate, and the economy behaves like it does in a demand-pull inflation. If aggregate demand grow ...
... When the inflation forecast is correct, the economy operates at full employment. If aggregate demand grows faster than expected, real GDP moves above potential GDP, the inflation rate exceeds its expected rate, and the economy behaves like it does in a demand-pull inflation. If aggregate demand grow ...
NBER WORKING PAPER SERIES CAPITAL DEEPENING AND NON-BALANCED ECONOMIC GROWTH Daron Acemoglu
... combination of differences in factor proportions and capital deepening. Capital deepening tends to increase the relative output of the sector with a greater capital share, but simultaneously induces a reallocation of capital and labor away from that sector. We first illustrate this force using a gen ...
... combination of differences in factor proportions and capital deepening. Capital deepening tends to increase the relative output of the sector with a greater capital share, but simultaneously induces a reallocation of capital and labor away from that sector. We first illustrate this force using a gen ...
Subtleties of the Supply and Demand Model: Price Floors, Price
... inflation as its subject matter. The chapter begins by considering the major macroeconomic changes of the past quarter century (1980-2005). These changes include the rapid economic growth of China and India, which is made more significant when compared to the dismal growth of many sub-Saharan Africa ...
... inflation as its subject matter. The chapter begins by considering the major macroeconomic changes of the past quarter century (1980-2005). These changes include the rapid economic growth of China and India, which is made more significant when compared to the dismal growth of many sub-Saharan Africa ...
US Economic Growth in the Gilded Age
... peak to peak, with each peak at or close to potential output, so as to control for the well known and often confounding influences of cyclical effects. The NBER dates a strong business cycle peak in May of 1907; Lebergott’s annual unemployment series, as well as Romer’s filtered series, bottom out i ...
... peak to peak, with each peak at or close to potential output, so as to control for the well known and often confounding influences of cyclical effects. The NBER dates a strong business cycle peak in May of 1907; Lebergott’s annual unemployment series, as well as Romer’s filtered series, bottom out i ...
MB0026- Unit 1- Meaning And Importance Of Managerial Economics
... Thorstein Veblen, a noted American Economist contends that there are certain commodities which are purchased by rich people not for their direct satisfaction, but for their ’snob – appeal’ or ‘ostentation’.Veblen’s effect states that demand for status symbol goods would go up with a arise in price a ...
... Thorstein Veblen, a noted American Economist contends that there are certain commodities which are purchased by rich people not for their direct satisfaction, but for their ’snob – appeal’ or ‘ostentation’.Veblen’s effect states that demand for status symbol goods would go up with a arise in price a ...
A Post-Keynesian Behavioral Critique of Neoclassical Economics
... most other sciences try to understand and explain various aspects of life and the world we live in, economics limits itself to only understand a world simpler than our own. Plenty of economists s ...
... most other sciences try to understand and explain various aspects of life and the world we live in, economics limits itself to only understand a world simpler than our own. Plenty of economists s ...
Credit and Business Cycles
... propagation mechanism. In particular, when the credit limits are endogenously determined, I wish to examine how relatively small and temporary shocks on technology or wealth distribution may generate large, persistent ¯uctuations in aggregate productivity, output and asset prices. For this purpose, ...
... propagation mechanism. In particular, when the credit limits are endogenously determined, I wish to examine how relatively small and temporary shocks on technology or wealth distribution may generate large, persistent ¯uctuations in aggregate productivity, output and asset prices. For this purpose, ...
Investment Hangover and the Great Recession
... are used in the production of overbuilt capital. Thus, other types of investment can also decline, in line with the acceleration principle of investment (see, for instance, Samuelson (1939)), despite the low cost of capital implied by the low interest rate. As the economy decumulates the overbuilt c ...
... are used in the production of overbuilt capital. Thus, other types of investment can also decline, in line with the acceleration principle of investment (see, for instance, Samuelson (1939)), despite the low cost of capital implied by the low interest rate. As the economy decumulates the overbuilt c ...
Leather Footwear in Brazil The Rio Grande do Sul’s Cluster
... boom in commodity exports could lead to the so-called “Dutch disease,” or an appreciation of nominal and real exchange rates to the point where commodities displace manufactured exports and hurt industries outside of the natural resources sectors. Today, Brazil it leveraging its abundant natural res ...
... boom in commodity exports could lead to the so-called “Dutch disease,” or an appreciation of nominal and real exchange rates to the point where commodities displace manufactured exports and hurt industries outside of the natural resources sectors. Today, Brazil it leveraging its abundant natural res ...
Principles of Economic Growth
... When the saving rate rises from 10% of GDP to 40% ... … annual output growth rises by 9 to 15 percentage points, depending on efficiency An increase in efficiency from 0.3 to 0.5 ... ... increases annual growth by 2 to 8 percentage points, depending on the saving rate ...
... When the saving rate rises from 10% of GDP to 40% ... … annual output growth rises by 9 to 15 percentage points, depending on efficiency An increase in efficiency from 0.3 to 0.5 ... ... increases annual growth by 2 to 8 percentage points, depending on the saving rate ...
Economics Principles and Practices Reading Essentials
... Table of Contents Chapter 1: What is Economics? Section 1: Scarcity and the Science of Economics ...........................................1 Section 2: Basic Economic Concepts ................................................................4 Section 3: Economic Choices and Decision Making ........ ...
... Table of Contents Chapter 1: What is Economics? Section 1: Scarcity and the Science of Economics ...........................................1 Section 2: Basic Economic Concepts ................................................................4 Section 3: Economic Choices and Decision Making ........ ...
A Dynamic Model of Aggregate Demand and Aggregate Supply
... period of time and then returns to zero. The DAS curve will shift to the left in period t by exactly the amount of the shock. The DAD curve will remain unchanged. Inflation rises and output falls in period t. These effects reflect in part the response of the central bank through its policy rule that ...
... period of time and then returns to zero. The DAS curve will shift to the left in period t by exactly the amount of the shock. The DAD curve will remain unchanged. Inflation rises and output falls in period t. These effects reflect in part the response of the central bank through its policy rule that ...
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.