The Art and Science of Economics
... Suppose we return to the situation where the price level is assumed to be constant What we want to do now is trace through the effects of a shift in any of the components of spending on aggregate demand, while assuming that the price level does not change, e.g., we want to look at the multiplier a ...
... Suppose we return to the situation where the price level is assumed to be constant What we want to do now is trace through the effects of a shift in any of the components of spending on aggregate demand, while assuming that the price level does not change, e.g., we want to look at the multiplier a ...
2. Computable General Equilibrium Models: Macroeconomics and
... history necessarily enters into any serious discussion of macro causality”. ...
... history necessarily enters into any serious discussion of macro causality”. ...
Government Consumption Expenditures and the Current Account
... bonds, insurance against country-specific shocks is incomplete. This implies that these shocks, even when temporary, produce permanent changes in the distribution of wealth across countries and in the levels of the other endogenous variables, thereby modifying the long-run equilibrium of the model e ...
... bonds, insurance against country-specific shocks is incomplete. This implies that these shocks, even when temporary, produce permanent changes in the distribution of wealth across countries and in the levels of the other endogenous variables, thereby modifying the long-run equilibrium of the model e ...
A Post-Keynesian model of the business cycle Pedro Leão ISEG
... their capital stock, and thereby try to reduce utilization towards the desired rate. In the opposite case, entrepreneurs will carry out negative net investment to reduce their capital stock and in that way try to raise utilization to the desired rate. Second, changes in utilization over the cycle ar ...
... their capital stock, and thereby try to reduce utilization towards the desired rate. In the opposite case, entrepreneurs will carry out negative net investment to reduce their capital stock and in that way try to raise utilization to the desired rate. Second, changes in utilization over the cycle ar ...
research paper series Fiscal Incentives, European Integration and
... still appear to matter. Some countries have been noticeably more successful than others in attracting inward investment. Developments in national economies need to be viewed in the context of ongoing integration in Europe. Location choice involves an assessment of the competing characteristics of a ...
... still appear to matter. Some countries have been noticeably more successful than others in attracting inward investment. Developments in national economies need to be viewed in the context of ongoing integration in Europe. Location choice involves an assessment of the competing characteristics of a ...
NBER WORKING PAPER SERIES IS-LM AND MONETARISM Michael D. Bordo Anna J. Schwartz
... (1969, 1970) offered the most critical appraisal. He did so not on grounds that its substance was flawed, but for three incidental shortcomings. One, it was an improper representation of the traditional quantity theory. Two, it was a misinterpretation of doctrinal history, of the shift from the tran ...
... (1969, 1970) offered the most critical appraisal. He did so not on grounds that its substance was flawed, but for three incidental shortcomings. One, it was an improper representation of the traditional quantity theory. Two, it was a misinterpretation of doctrinal history, of the shift from the tran ...
Growth isn’t working The unbalanced distribution of benefits and 1
... Box 1: What does ‘$1-a-day’ really mean? Although we are used to referring to ’the poor‘ as people living below the $1-a-day poverty line, this is not really $1-aday as we normally understand it. It actually refers to consumption of $1.08 per person per day at 1993 prices, at a notional purchasing p ...
... Box 1: What does ‘$1-a-day’ really mean? Although we are used to referring to ’the poor‘ as people living below the $1-a-day poverty line, this is not really $1-aday as we normally understand it. It actually refers to consumption of $1.08 per person per day at 1993 prices, at a notional purchasing p ...
PPT chapter 12 - McGraw Hill Higher Education
... long-run rate of growth? 8. What role does total factor productivity play in promoting longrun growth? 9. What is the Solow paradox? Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Principles of Macroeconomics 3e by Bernanke, Olekalns and Frank ...
... long-run rate of growth? 8. What role does total factor productivity play in promoting longrun growth? 9. What is the Solow paradox? Copyright 2011 McGraw-Hill Australia Pty Ltd PowerPoint slides to accompany Principles of Macroeconomics 3e by Bernanke, Olekalns and Frank ...
Chapter 29
... A change in the money prices of other resources changes aggregate supply because it changes firms’ costs. The higher the money prices of other resources, the higher are firms’ costs and the smaller is the quantity that firms are willing to supply at each price level. So an increase in the money pric ...
... A change in the money prices of other resources changes aggregate supply because it changes firms’ costs. The higher the money prices of other resources, the higher are firms’ costs and the smaller is the quantity that firms are willing to supply at each price level. So an increase in the money pric ...
Saving, Investment, and the Financial System
... • Mutual funds allow people with small amounts of money to easily diversify. ...
... • Mutual funds allow people with small amounts of money to easily diversify. ...
Inflation, deflation and purchasing power
... resources more efficiently; reducing inflation risk premia in interest rates - this reduces real interest rates and increases incentives to invest; avoiding unproductive activities to hedge against the negative impact of inflation or deflation; preventing an arbitrary redistribution of wealth ...
... resources more efficiently; reducing inflation risk premia in interest rates - this reduces real interest rates and increases incentives to invest; avoiding unproductive activities to hedge against the negative impact of inflation or deflation; preventing an arbitrary redistribution of wealth ...
IS-LM and Monetarism
... For Modigliani the key difference between Keynes and the classics was wage rigidity, which leads to a less-than-full-employment equilibrium. He viewed absolute liquidity preference as a curiosity and not the true hallmark of the Keynesian model. The Hicks-Modigliani model was then popularized by Alv ...
... For Modigliani the key difference between Keynes and the classics was wage rigidity, which leads to a less-than-full-employment equilibrium. He viewed absolute liquidity preference as a curiosity and not the true hallmark of the Keynesian model. The Hicks-Modigliani model was then popularized by Alv ...
NBER WORKING PAPER SERIES Peter N. Ireland Working Paper 16681
... For more than two centuries, the United States and Europe have been linked economically, through international trade in goods and services and two-way flows of technical and scientific knowledge. Now, following European monetary unification, the US and Euro Area stand among the world’s largest econo ...
... For more than two centuries, the United States and Europe have been linked economically, through international trade in goods and services and two-way flows of technical and scientific knowledge. Now, following European monetary unification, the US and Euro Area stand among the world’s largest econo ...
Real wages, inflation and labour productivity in Australia
... There are a number of reasons why associations may exist between real wages, inflation and productivity, as hypothesised by Bardsen et al. (2007, p. 145). It is almost standard in the theoretical literature to envisage that inflation and productivity growth are negatively related as workers purchasi ...
... There are a number of reasons why associations may exist between real wages, inflation and productivity, as hypothesised by Bardsen et al. (2007, p. 145). It is almost standard in the theoretical literature to envisage that inflation and productivity growth are negatively related as workers purchasi ...
readme
... (b) The valuation of countries' Net Foreign Balance (NFB) in international prices: In all previous versions of the Penn World Table (PWT 1 through PWT 5), a country's NFB was converted into dollars using the country's market exchange rate. In PWT 5.6. the conversion is made using the country's overa ...
... (b) The valuation of countries' Net Foreign Balance (NFB) in international prices: In all previous versions of the Penn World Table (PWT 1 through PWT 5), a country's NFB was converted into dollars using the country's market exchange rate. In PWT 5.6. the conversion is made using the country's overa ...
Fiscal Policy Cyclicality and Growth within the US States
... Firms forecast that their credit constraint tightens during recessions, reducing their likelihood of being able to pay the shock Implication: …rms reduce investment in technology, GDP growth slows ...
... Firms forecast that their credit constraint tightens during recessions, reducing their likelihood of being able to pay the shock Implication: …rms reduce investment in technology, GDP growth slows ...
The Failure of Export-Led Growth in Brazil and Mexico - SAS
... In order to understand the process of economic development in these countries and some of its current problems, an analysis of the causes of such a failure is clearly important. Yet the existing literature on the topic is deficient in several respects. In the first place, there is a dearth of thorou ...
... In order to understand the process of economic development in these countries and some of its current problems, an analysis of the causes of such a failure is clearly important. Yet the existing literature on the topic is deficient in several respects. In the first place, there is a dearth of thorou ...
NBER WORKING PAPER SERIES OPENNESS CAN BE GOOD FOR GROWTH: Roberto Chang
... across countries and depends on a variety of conditions related to the structure of the economy and its institutions. A simple exercise may serve to convey this point. Figure 1 plots changes in growth rates of per capita GDP between the 1990s and 1980s versus changes in the volume of trade (as a rat ...
... across countries and depends on a variety of conditions related to the structure of the economy and its institutions. A simple exercise may serve to convey this point. Figure 1 plots changes in growth rates of per capita GDP between the 1990s and 1980s versus changes in the volume of trade (as a rat ...
Long-Run and Short-Run Concerns: Growth, Productivity
... • Part of the reason for the upward trend in productivity is an increase in the amount of capital per worker. With more capital per worker, more output can be produced per year. • The other reason productivity has increased is that the quality of labor and capital has been increasing. ...
... • Part of the reason for the upward trend in productivity is an increase in the amount of capital per worker. With more capital per worker, more output can be produced per year. • The other reason productivity has increased is that the quality of labor and capital has been increasing. ...
The impact of Brexit on foreign investment in the UK Swati Dhingra
... Bilateral FDI flows between any pair of countries depend on their respective market size (measured by GDP), the geographical distance between them and other factors such as GDP per capita. The model addresses the question of how much more FDI would flow between two countries if the sender or the re ...
... Bilateral FDI flows between any pair of countries depend on their respective market size (measured by GDP), the geographical distance between them and other factors such as GDP per capita. The model addresses the question of how much more FDI would flow between two countries if the sender or the re ...
Lecture Notes on Macroeconomic Principles
... Real and Nominal GDP If GDP rises from one year to the next, then either: 1. The economy is producing more goods and services, or 2. Goods and services are selling at higher prices. Since what people really care about is the total volume of available goods and services, and not so much the pric ...
... Real and Nominal GDP If GDP rises from one year to the next, then either: 1. The economy is producing more goods and services, or 2. Goods and services are selling at higher prices. Since what people really care about is the total volume of available goods and services, and not so much the pric ...
Chapter 16: Equilibrium in a Macroeconomic Model
... monthly, quarterly or annually. To simplify our discussion, we will focus on annual measures of income and output. GDP, then, is the market value of final goods and services produced by the economy in one year's time. ...
... monthly, quarterly or annually. To simplify our discussion, we will focus on annual measures of income and output. GDP, then, is the market value of final goods and services produced by the economy in one year's time. ...
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.