Accumulation Regimes, Endogenous Desired
... over the relation between income distribution, effective degree of capacity utilisation and economic growth. In order to do so, we will suppose that desired rate of capacity utilisation is a decreasing function of the profit share. This change in the macroeconomic structure will produce a short run ...
... over the relation between income distribution, effective degree of capacity utilisation and economic growth. In order to do so, we will suppose that desired rate of capacity utilisation is a decreasing function of the profit share. This change in the macroeconomic structure will produce a short run ...
Investment Hangover and the Great Recession
... We present a model of investment hangover motivated by the Great Recession. Overbuilding of durable capital such as housing requires a reallocation of productive resources to other sectors, which is facilitated by a reduction in the interest rate. If monetary policy is constrained, overbuilding indu ...
... We present a model of investment hangover motivated by the Great Recession. Overbuilding of durable capital such as housing requires a reallocation of productive resources to other sectors, which is facilitated by a reduction in the interest rate. If monetary policy is constrained, overbuilding indu ...
A Retrospective Look at the US Productivity
... software at the time. Also, these studies looked at how investment in information technology contributed to productivity growth, but did not look at how improved productivity in the production of information technology might contribute to aggregate productivity growth. After productivity growth impr ...
... software at the time. Also, these studies looked at how investment in information technology contributed to productivity growth, but did not look at how improved productivity in the production of information technology might contribute to aggregate productivity growth. After productivity growth impr ...
Inflation dynamics, marginal cost, and the output gap:
... output-gap-based NKPCs; rather, it is evidence of difficulties in measuring the output gap. Under this interpretation, real marginal cost has a closer relationship to the true output gap than do traditional, trend- or filter-derived measures of the latter. Real shocks produce fluctuations in the nat ...
... output-gap-based NKPCs; rather, it is evidence of difficulties in measuring the output gap. Under this interpretation, real marginal cost has a closer relationship to the true output gap than do traditional, trend- or filter-derived measures of the latter. Real shocks produce fluctuations in the nat ...
SECOND GENERATION INNOVATION
... role of capital for growth is suppressed in Eq. (3) under the assumption that the economy is on its balanced growth path in which the K-Y ratio is constant. Capital deepening cannot act as an independent growth factor since it is driven entirely by technological progress along the balanced growth pa ...
... role of capital for growth is suppressed in Eq. (3) under the assumption that the economy is on its balanced growth path in which the K-Y ratio is constant. Capital deepening cannot act as an independent growth factor since it is driven entirely by technological progress along the balanced growth pa ...
Business Cycle Accounting
... Depression (1929–1939), and a downturn less severe and more like those seen since World War II, the 1982 recession. For the Great Depression period, we find that, in combination, the efficiency and labor wedges produce declines in output, labor, and investment from 1929 to 1933 only slightly more se ...
... Depression (1929–1939), and a downturn less severe and more like those seen since World War II, the 1982 recession. For the Great Depression period, we find that, in combination, the efficiency and labor wedges produce declines in output, labor, and investment from 1929 to 1933 only slightly more se ...
Labor market regimes and the effects of monetary policy
... game in which the central bank sets the money supply in order to minimize inflation and unemployment after unions set nominal wages so as to optimally trade off expected real wages and unemployment of their members. Although unions are Stackelberg leaders, the central bank’s objectives and optimal pol ...
... game in which the central bank sets the money supply in order to minimize inflation and unemployment after unions set nominal wages so as to optimally trade off expected real wages and unemployment of their members. Although unions are Stackelberg leaders, the central bank’s objectives and optimal pol ...
The spontaneous generation of excess and its capitalist capture
... resulting from the strategic planning of capitalist agents, whose point of view, in studying economic phenomena, economics takes. Marx, in a historicist move, argues that capitalism is but one political economy among many, where the facts assumed by economics, such as savings, are, far from given, a ...
... resulting from the strategic planning of capitalist agents, whose point of view, in studying economic phenomena, economics takes. Marx, in a historicist move, argues that capitalism is but one political economy among many, where the facts assumed by economics, such as savings, are, far from given, a ...
Chapter 7
... Rewriting C as an equation for a straight line: K = C/r - (w/r)L Slope of the isocost: K L w r ...
... Rewriting C as an equation for a straight line: K = C/r - (w/r)L Slope of the isocost: K L w r ...
File
... shift in aggregate demand to the initial shift in aggregate demand is known as the multiplier. The aggregate supply curve depicts the relationship between the price level and the level of output that firms supply in the economy. Output and prices are determined at the intersection of the aggregate ...
... shift in aggregate demand to the initial shift in aggregate demand is known as the multiplier. The aggregate supply curve depicts the relationship between the price level and the level of output that firms supply in the economy. Output and prices are determined at the intersection of the aggregate ...
CHAPTER 7: Long-Run and Short
... The two features immediately clear when you examine the trend in productivity in the United States over the past fifty years are: a. An upward trend and fairly sizable fluctuations around that trend. b. An upward trend and relatively small fluctuations around that trend. c. A downward trend and fair ...
... The two features immediately clear when you examine the trend in productivity in the United States over the past fifty years are: a. An upward trend and fairly sizable fluctuations around that trend. b. An upward trend and relatively small fluctuations around that trend. c. A downward trend and fair ...
CHAPTER 6 CONSUMPTION AND THE COST OF LIVING I. Socially
... prices, remains fixed, what one would find is that at very low income levels all of the consumer's income would go toward the purchase of necessities. But as income increases the fraction allocated toward the purchase of necessities decreases, while the fraction allocated toward luxuries increases. ...
... prices, remains fixed, what one would find is that at very low income levels all of the consumer's income would go toward the purchase of necessities. But as income increases the fraction allocated toward the purchase of necessities decreases, while the fraction allocated toward luxuries increases. ...
NBER WORKING PAPER SERIES TRENDS IN HOURS, BALANCED GROWTH,
... Next I examine the comovements of hours and the consumption share for the G7 countries, in order to assess the extent to which the evidence in the previous subsection is speci…c to the U.S. or carries over to other countries. In doing so I use the data set on hours worked (normalized by population a ...
... Next I examine the comovements of hours and the consumption share for the G7 countries, in order to assess the extent to which the evidence in the previous subsection is speci…c to the U.S. or carries over to other countries. In doing so I use the data set on hours worked (normalized by population a ...
Chapter 12 - lenses is not covered
... technological constraint faced by producers, and with isoprofit curves depicting their “tastes” for profit. We also demonstrated an alternative “indirect” approach to profit maximization – one in which producers first investigate the cost side of their operations before bringing revenues into the an ...
... technological constraint faced by producers, and with isoprofit curves depicting their “tastes” for profit. We also demonstrated an alternative “indirect” approach to profit maximization – one in which producers first investigate the cost side of their operations before bringing revenues into the an ...
1 Principles of Macroeconomics, 9e
... A) can increase output, even if it is not accompanied by an increase in the labor force. B) provides valuable services directly, but not indirectly. C) can increase output, but only if it is accompanied by an increase in the labor force. D) cannot increase output, even if it is accompanied by an inc ...
... A) can increase output, even if it is not accompanied by an increase in the labor force. B) provides valuable services directly, but not indirectly. C) can increase output, but only if it is accompanied by an increase in the labor force. D) cannot increase output, even if it is accompanied by an inc ...
chapter overview
... 1. In many ways this chapter completes a circle of reasoning that was started in the early class meetings. It affords many opportunities to reinforce, and give examples of, principles that were introduced earlier in the semester. 2. Use a circular flow diagram to explain derived demand and illustrat ...
... 1. In many ways this chapter completes a circle of reasoning that was started in the early class meetings. It affords many opportunities to reinforce, and give examples of, principles that were introduced earlier in the semester. 2. Use a circular flow diagram to explain derived demand and illustrat ...
CHAPTER 25
... for bananas) at the price for which the quantity demanded is equal to the quantity supplied. • In macroeconomics, we define equilibrium in the goods market as that point at which planned aggregate expenditure is equal to aggregate output. ...
... for bananas) at the price for which the quantity demanded is equal to the quantity supplied. • In macroeconomics, we define equilibrium in the goods market as that point at which planned aggregate expenditure is equal to aggregate output. ...
Aggregate Demand and Aggregate Supply
... shift in aggregate demand to the initial shift in aggregate demand is known as the multiplier. • The aggregate supply curve depicts the relationship between the price level and the level of output that firms supply in the economy. Output and prices are determined at the intersection of the aggregate ...
... shift in aggregate demand to the initial shift in aggregate demand is known as the multiplier. • The aggregate supply curve depicts the relationship between the price level and the level of output that firms supply in the economy. Output and prices are determined at the intersection of the aggregate ...
Aggregate Demand/Supply
... aggregate price level since 1949. What happened to the deflation? The basic answer is that since World War II economic fluctuations have taken place around a long-run inflationary trend. Before the war, it was common for prices to fall during recessions, but since then negative demand shocks have be ...
... aggregate price level since 1949. What happened to the deflation? The basic answer is that since World War II economic fluctuations have taken place around a long-run inflationary trend. Before the war, it was common for prices to fall during recessions, but since then negative demand shocks have be ...
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.