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Lessons from the Dutch Disease:
Lessons from the Dutch Disease:

... destructive consequences and the possibility of such an event may prompt the domestic authorities to spend vast resources on national defense. Large military expenditures tend to inhibit growth through their adverse effects on capital formation and resource allocation (Knight, Loayza, and Villaneuva ...
CHAPTER 12 - Economics
CHAPTER 12 - Economics

... slide 10 ...
PDF
PDF

... took off (e.g., Japan’s modern growth started relatively earlier, while China’s rapid growth is a much more recent phenomenon), their growth rates were typically higher than the U.S. after the second half of the 20th century. As long as this trend continues, the per capita income of successful countr ...
Aalborg Universitet Coping with Reality Madsen, Poul Thøis
Aalborg Universitet Coping with Reality Madsen, Poul Thøis

... esoteric but it is a key issue in economics as some economists like the present author would argue that large chunks of economic theory is to quote ‘simply made…up’ (Bergman, 2005, p. 56) - that is developed on a deductive basis with an unclear or non-existing relation to economic behaviour in real ...
FRBSF E L
FRBSF E L

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PDF

... transactions in different ways, but all (at least in theory) adding to the same total. Two of the most common aggregations are that focused on expenditures (based on the standard national income accounting identity of C + I + G + X - M) and that based on revenues, or incomes. The two methods should, ...
The Delusions to Science of Mainstream
The Delusions to Science of Mainstream

... outside their own scope of activity, Darwin showed that it was now possible ...
Economic Standards - Krannert School of Management
Economic Standards - Krannert School of Management

... ∗ trade barriers: things that hinder trade, such as tariffs, quotas, or embargos ∗ economic systems: ways that people allocate economic resources, goods, and services ∗ traditional economy: resources are allocated based on custom and tradition ∗ command economy: resources are allocated by the govern ...
Capitalism and democracy in the 21st Century: from the managed to
Capitalism and democracy in the 21st Century: from the managed to

... investment was generally con®ned to Europe and North America, and later a few of the Asian countries, principally Japan and the Asian Tigers. The comparative advantage was generally attained through large-scale production, which facilitated low-cost production through exploiting scale economies. Lar ...
Double-Dip Recession: Previous Experience and Current Prospect
Double-Dip Recession: Previous Experience and Current Prospect

... of 1979, Paul Volcker, recently appointed to the Fed chairmanship, initiated a policy of disinflation—a reduction of the rate of inflation. Applying an aggressive contractionary monetary policy, the Fed progressively increased the federal funds rate from about 11% in the summer of 1979 to nearly 18% ...
Stage 1 – Desired Results
Stage 1 – Desired Results

... and factory operations along its banks. Yet canal businesses had to deal with such problems as inconsistent water flow, market ups and downs, and labor force unrest. Have the students imagine that they are 19th century entrepreneurs with the productive resources necessary to start a business on the ...
Implications-of-diff..
Implications-of-diff..

... First, if we limit ourselves to compare long-term equilibria according to what would have been called later “comparative statics” we can ignore money. This convenient property justifying a powerful simplification of the analysis, typical of the classical tradition (including the neoclassical and new ...
Chapter 1
Chapter 1

... B. The Contribution of Technical Change: The New Economy? 1. Changes in labor productivity growth caused by fluctuations in technical change limited our prosperity from the 1970s through early 1990s and may have enhanced it since then. 2. Technical change is more than scientific and engineering adva ...
Can the Sir Stafford Sands Model of the Bahamian Economy, Survive
Can the Sir Stafford Sands Model of the Bahamian Economy, Survive

... The credit crisis of the late nineteen eighties was perhaps the most pronounced example of how this cycle when disturbed, could have seriously adverse repercussions. At the time, and over a short period, the rate of increase in both consumption and investment spending had grown appreciably, to the d ...
Ch3 - Economic Activity in a Changing World
Ch3 - Economic Activity in a Changing World

... Gross Domestic Product - The total value of the G&S produced in a country in a given year • Economists compute the sum of G&S • Doesn’t include the G&S that aren’t reported to the government • standard of living is the amount of G&S the average citizen can buy Chapter 3 - Economic Activity in a Chan ...
Chapter 6
Chapter 6

... United States was a continent-sized state whose territorial size dwarfed the typical European nation-states. As the capitalist world-economy expanded in width and depth, the traditional city-states and nation-states have become too “small” to be a player in the hegemonic competition (Arrighi, Hui, R ...
Challenges Facing the Russian Economy after the Crisis
Challenges Facing the Russian Economy after the Crisis

... Even inequality had not increased. Using the same RLMS dataset, economists Yuriy Gorodnichenko, Dmitriy Stolyarov, and Klara Sabirianova-Peter show that inequality might have even slightly decreased (from the Gini coefficient of 0.42 in 1999 to 0.38 in 2005).5 The official data on Gini coefficients ...
Using indicators to monitor real convergence
Using indicators to monitor real convergence

The Changing Cyclical Variability of the American Economy
The Changing Cyclical Variability of the American Economy

... economy is difficult for many reasons. First among them is our lack of knowledge about how stable (or unstable) the economy has in fact been. To evaluate the effects of policies, we need to know about changes in stability—about the changing magnitudes of the business-cycle fluctuations of production ...
Positive Versus Normative Analysis in Economics
Positive Versus Normative Analysis in Economics

... Discuss whether each statement is purely positive statement or also contains normative element and or value judgement a)an increase in the personal income tax slow the growth rate of the economy. b)the goal of any country's economic policy should be to increase the well-being of its poorest vulnerab ...
The Macroeconomist as Scientist and Engineer
The Macroeconomist as Scientist and Engineer

... The third wave of new classical economics was the real business cycle theories of Kydland and Prescott (1982) and Long and Plosser (1983). Like the theories of Friedman and Lucas, these were built on the assumption that prices adjust instantly to clear markets— a radical difference from Keynesian t ...
Productivity
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... labor market as inexperienced and not very productive. A small part of the problem, because the timing of when productivity fell and when boomers entered the labor market doesn’t mesh. ...
Economics 190
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Economic Growth under Embargoes in North Cyprus: An Input
Economic Growth under Embargoes in North Cyprus: An Input

... 1983.1 So far, Turkey has been the only country that recognises the sovereignty of the Turkish North Cyprus, and has established close political and economic ties with it. In particular, economic isolation from the world economy has eradicated the capability of the Turkish Cypriot economy to genera ...
Chapter 2: The Economizing Problem
Chapter 2: The Economizing Problem

... 1. Allocative efficiency means that resources are used for producing the combination of goods and services most wanted by society. 2. Productive efficiency means that least costly production techniques are used to produce any particular mix of goods and services. Allocative efficiency requires that ...
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Steady-state economy

A steady-state economy is an economy of relatively stable size. A zero growth economy features stable population and stable consumption that remain at or below carrying capacity. The term typically refers to a national economy, but it can also be applied to the economic system of a city, a region, or the entire planet. Note that Robert Solow and Trevor Swan applied the term steady state a bit differently in their economic growth model. Their steady state occurs when investment equals depreciation, and the economy reaches equilibrium, which may occur during a period of growth.
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