Employment and Business Effects of Minimum Wage Increases
... reduce employment. Two of these leading individual studies are: • “Minimum Wage Effects Across State Borders,” in which economists Arindrajit Dube, T. William Lester and Michael Reich (2010) apply innovative new research methods to examine the real-world impact of state minimum wage increases on em ...
... reduce employment. Two of these leading individual studies are: • “Minimum Wage Effects Across State Borders,” in which economists Arindrajit Dube, T. William Lester and Michael Reich (2010) apply innovative new research methods to examine the real-world impact of state minimum wage increases on em ...
Essays on Capital Market Imperfections, Intergenerational Mobility and Economic Development
... that they are particularly inef cient in their production activities. Our ndings, therefore, formalize the evidence that poor countries are characterized by low TFP.8 In our model CMI cause that low productivity technologies, even when they are not socially ef cient, are used in equilibrium and that ...
... that they are particularly inef cient in their production activities. Our ndings, therefore, formalize the evidence that poor countries are characterized by low TFP.8 In our model CMI cause that low productivity technologies, even when they are not socially ef cient, are used in equilibrium and that ...
Slides 2
... public good at a lower cost, the switch allows the government to make efficiency savings. Second, the effect of this switch on per capita output and welfare (i.e. on aggregate efficiency) depends crucially on the way the government uses its efficiency savings. When the efficiency savings achieved ...
... public good at a lower cost, the switch allows the government to make efficiency savings. Second, the effect of this switch on per capita output and welfare (i.e. on aggregate efficiency) depends crucially on the way the government uses its efficiency savings. When the efficiency savings achieved ...
Monetary Theory I
... The Long-Run Aggregate Supply (LRAS) Curve Long-run aggregate supply (LRAS) curve A curve that shows the relationship in the long run between the price level and the quantity of aggregate output, or real GDP, supplied by firms. The long-run aggregate supply (LRAS) curve is vertical at YP. In the ne ...
... The Long-Run Aggregate Supply (LRAS) Curve Long-run aggregate supply (LRAS) curve A curve that shows the relationship in the long run between the price level and the quantity of aggregate output, or real GDP, supplied by firms. The long-run aggregate supply (LRAS) curve is vertical at YP. In the ne ...
The Great Moderation and "Falling Off a Cliff": neo
... (Published as The Great Moderation and “Falling Off a Cliff”: Neo-Kaldorian Dynamics in Journal of Economic Behavior & Organization, 78(3), May 2011: 366-373. A rough draft is available at: http://myweb.lmu.edu/jdevine/JD-2010-neoKaldorianModel.pdf with ...
... (Published as The Great Moderation and “Falling Off a Cliff”: Neo-Kaldorian Dynamics in Journal of Economic Behavior & Organization, 78(3), May 2011: 366-373. A rough draft is available at: http://myweb.lmu.edu/jdevine/JD-2010-neoKaldorianModel.pdf with ...
REAL AND TERMS INDEXATION RULES FOR AN OPEN ECONOMY
... changes in the terms of trade call for changes in both real wages. That will pose problems in an economy with contract lags and Indexation if indexation holds one or the other real wages constant. ...
... changes in the terms of trade call for changes in both real wages. That will pose problems in an economy with contract lags and Indexation if indexation holds one or the other real wages constant. ...
the keynesian aggregate expenditure model
... along the 45-degree line that they believe purchasers will buy. Producers, though, will supply a level of output only if they believe planned expenditures will be large enough to purchase it. Depending on the level of aggregate expenditures, each point along the 45-degree line is a potential equilib ...
... along the 45-degree line that they believe purchasers will buy. Producers, though, will supply a level of output only if they believe planned expenditures will be large enough to purchase it. Depending on the level of aggregate expenditures, each point along the 45-degree line is a potential equilib ...
Factors that shift the Aggregate Demand Curve
... GDP, and macroeconomic equilibrium. Distinguish between the aggregate demand curve and the aggregate supply curve. Identify and describe the reasons for downward slope of the aggregate demand curve. Identify and describe the factors that shift the aggregate demand curve. Explain and illustra ...
... GDP, and macroeconomic equilibrium. Distinguish between the aggregate demand curve and the aggregate supply curve. Identify and describe the reasons for downward slope of the aggregate demand curve. Identify and describe the factors that shift the aggregate demand curve. Explain and illustra ...
PDF
... the requirement in the intermediate good sector to produce one unit of …nal good is exogenous and identical for all …rms. Hence, a …rm can be more e¢ cient, and use a less labor-intensive technology to produce its variety. In addition, it appears that the ratio of intermediate consumption to labor c ...
... the requirement in the intermediate good sector to produce one unit of …nal good is exogenous and identical for all …rms. Hence, a …rm can be more e¢ cient, and use a less labor-intensive technology to produce its variety. In addition, it appears that the ratio of intermediate consumption to labor c ...
Thomas Robert Malthus and His 1798 Theory of Oscillations*
... omitted in the system because Malthus himself dealt exclusively with the case of a closed economy in his account of oscillations. From these assumptions, we solely take into consideration the production function for food. Let us now build a mathematical model to analyse the Malthusian theory of osci ...
... omitted in the system because Malthus himself dealt exclusively with the case of a closed economy in his account of oscillations. From these assumptions, we solely take into consideration the production function for food. Let us now build a mathematical model to analyse the Malthusian theory of osci ...
NBER WORKING PAPER SERIES OPTIMAL OPERATIONAL MONETARY POLICY IN THE CHRISTIANO-EICHENBAUM-EVANS MODEL
... the research program of generating monetary policy evaluation that is of relevance for the actual practice of central banking. In our quest for the optimal monetary policy scheme we restrict attention to what we call operational interest rate rules. By an operational interest-rate rule we mean an in ...
... the research program of generating monetary policy evaluation that is of relevance for the actual practice of central banking. In our quest for the optimal monetary policy scheme we restrict attention to what we call operational interest rate rules. By an operational interest-rate rule we mean an in ...
mehr...
... resulting from labor market frictions, credit constraints or any other friction that induces increasing marginal costs of production. While many empirical studies have emphasized the importance of capacity constraints in determining the export behavior of firms, almost no study has convincingly iden ...
... resulting from labor market frictions, credit constraints or any other friction that induces increasing marginal costs of production. While many empirical studies have emphasized the importance of capacity constraints in determining the export behavior of firms, almost no study has convincingly iden ...
Microeconomics excercises
... b) For a firm in a perfectly competitive market, the total revenue curve, TR, is unusually easy to draw. What will it look like? Draw TR in your figure. Remember that if you sell nothing, your revenue is zero. The price of the good is 2.20. c) Below the graph, construct another graph with the same ...
... b) For a firm in a perfectly competitive market, the total revenue curve, TR, is unusually easy to draw. What will it look like? Draw TR in your figure. Remember that if you sell nothing, your revenue is zero. The price of the good is 2.20. c) Below the graph, construct another graph with the same ...
Measuring the equilibrium real interest rate
... of intermediate goods. Each household is the sole supplier of a specialized type of labor that it sells to the employment agencies in exchange for wages. Rather than taking wages as given—as under the neoclassical assumption of perfect competition—each household has some market power and can post it ...
... of intermediate goods. Each household is the sole supplier of a specialized type of labor that it sells to the employment agencies in exchange for wages. Rather than taking wages as given—as under the neoclassical assumption of perfect competition—each household has some market power and can post it ...
Questions
... herd instinct (animal spirits) are the major factor changing aggregate demand. 23. b Classical economists assert that the money age rate adjusts so that real GDP always equals potential GDP. 24. c Monetarists trace recessions to abrupt slowdowns in the growth rate of the quantity of money. Answers ...
... herd instinct (animal spirits) are the major factor changing aggregate demand. 23. b Classical economists assert that the money age rate adjusts so that real GDP always equals potential GDP. 24. c Monetarists trace recessions to abrupt slowdowns in the growth rate of the quantity of money. Answers ...
Technology Adoption and Diffusion
... reduces credit (interest) income more than raising crop income. Newbury: If contracts are interlinked, then LL will alter interest rate Credit constraints affect pure tenants more than landowners who are also tenants Have to be clear about who is making input use decisions (tenant or owner) G. ...
... reduces credit (interest) income more than raising crop income. Newbury: If contracts are interlinked, then LL will alter interest rate Credit constraints affect pure tenants more than landowners who are also tenants Have to be clear about who is making input use decisions (tenant or owner) G. ...
Abstract - Brad DeLong
... features different varieties of capital (including computer hardware, software and communication equipment as types of ICT capital) whose growth contributions are weighted by their shares in income, and in which TFP growth is decomposed into TFP growth in making ICT capital and in other activities w ...
... features different varieties of capital (including computer hardware, software and communication equipment as types of ICT capital) whose growth contributions are weighted by their shares in income, and in which TFP growth is decomposed into TFP growth in making ICT capital and in other activities w ...
Urbanization with and without Industrialization
... Many theories of development view urbanization and industrialization as essentially synonymous. In fact, the connection between the two is so strong that urbanization rates are often used as a proxy for income per capita (Acemoglu, Johnson & Robinson, 2002, 2005). Standard views reflect a stylized t ...
... Many theories of development view urbanization and industrialization as essentially synonymous. In fact, the connection between the two is so strong that urbanization rates are often used as a proxy for income per capita (Acemoglu, Johnson & Robinson, 2002, 2005). Standard views reflect a stylized t ...
NBER WORKING PAPER SERIES REAL EXCHANGE RATES AND PRODUCTIVITY GROWTH IN THE
... industries within manufacturing, with Japanese productivity growth exceeding U.S. growth by widely differing margins depending on the industry, the ...
... industries within manufacturing, with Japanese productivity growth exceeding U.S. growth by widely differing margins depending on the industry, the ...
Productivity Growth and the New Economy
... accompanied by relatively slow productivity growth (services being a generic example and live performances of Mozart string quartette being a much-cited specific example). This conjunction leads to Baumol’s “cost disease.” ...
... accompanied by relatively slow productivity growth (services being a generic example and live performances of Mozart string quartette being a much-cited specific example). This conjunction leads to Baumol’s “cost disease.” ...
In Search of Higher Growth - Inter
... The flipside of SAM´s domestic demand-led growth is a tendency toward current account deficits, which started to emerge, following modest surpluses, already in 2008, despite the continued commodity export bonanza. A close look at the structure of SAM’s external transactions reveals a systematic dyn ...
... The flipside of SAM´s domestic demand-led growth is a tendency toward current account deficits, which started to emerge, following modest surpluses, already in 2008, despite the continued commodity export bonanza. A close look at the structure of SAM’s external transactions reveals a systematic dyn ...
Urbanization with and without Industrialization
... Many theories of development view urbanization and industrialization as essentially synonymous. In fact, the connection between the two is so strong that urbanization rates are often used as a proxy for income per capita (Acemoglu, Johnson & Robinson, 2002, 2005). Standard views reflect a stylized t ...
... Many theories of development view urbanization and industrialization as essentially synonymous. In fact, the connection between the two is so strong that urbanization rates are often used as a proxy for income per capita (Acemoglu, Johnson & Robinson, 2002, 2005). Standard views reflect a stylized t ...
Aggregate Demand and Aggregate Supply
... attempts to increase aggregate output result in an increase in both output and the price level. – When the demand for goods and services rises, firms increase their demand for inputs. • When all firms demand more inputs and the market supply of inputs is upward sloping, firms’ costs rise. Firms resp ...
... attempts to increase aggregate output result in an increase in both output and the price level. – When the demand for goods and services rises, firms increase their demand for inputs. • When all firms demand more inputs and the market supply of inputs is upward sloping, firms’ costs rise. Firms resp ...
Fei–Ranis model of economic growth
The Fei–Ranis model of economic growth is a dualism model in developmental economics or welfare economics that has been developed by John C. H. Fei and Gustav Ranis and can be understood as an extension of the Lewis model. It is also known as the Surplus Labor model. It recognizes the presence of a dual economy comprising both the modern and the primitive sector and takes the economic situation of unemployment and underemployment of resources into account, unlike many other growth models that consider underdeveloped countries to be homogenous in nature. According to this theory, the primitive sector consists of the existing agricultural sector in the economy, and the modern sector is the rapidly emerging but small industrial sector. Both the sectors co-exist in the economy, wherein lies the crux of the development problem. Development can be brought about only by a complete shift in the focal point of progress from the agricultural to the industrial economy, such that there is augmentation of industrial output. This is done by transfer of labor from the agricultural sector to the industrial one, showing that underdeveloped countries do not suffer from constraints of labor supply. At the same time, growth in the agricultural sector must not be negligible and its output should be sufficient to support the whole economy with food and raw materials. Like in the Harrod–Domar model, saving and investment become the driving forces when it comes to economic development of underdeveloped countries.