THE LAWS OF RETURNS IN NEOCLASSICAL THEORIES OF GROWTH:
... the capital stock. This process will continue until the rate of growth of capital, even with the new higher rate of savings, goes back to become equal to the growth rate of full employment output, which, if 'n' does not change, will only occur when the value of 'v' is reduced proportionally to the i ...
... the capital stock. This process will continue until the rate of growth of capital, even with the new higher rate of savings, goes back to become equal to the growth rate of full employment output, which, if 'n' does not change, will only occur when the value of 'v' is reduced proportionally to the i ...
Project Specific modelling
... country (or balancing zone* ) level country level country (or balancing zone* ) level country level country level country level EU level country (or balancing zone* ) level country (or balancing zone* ) level EU level EU level country (or balancing zone* ) level country level EU level ...
... country (or balancing zone* ) level country level country (or balancing zone* ) level country level country level country level EU level country (or balancing zone* ) level country (or balancing zone* ) level EU level EU level country (or balancing zone* ) level country level EU level ...
Fairly Good Plans
... from such policies will not be shared by everyone; but we think that most readers will be able to produce examples which in their view can produce gains of this size. On the other hand, there are many lines of research very actively pursued (perhaps rightly) that seem to offer gains of little greate ...
... from such policies will not be shared by everyone; but we think that most readers will be able to produce examples which in their view can produce gains of this size. On the other hand, there are many lines of research very actively pursued (perhaps rightly) that seem to offer gains of little greate ...
Supply and Demand
... Effect on the Market for Overnight Letter Delivery of a Decline in the Price of Internet Access ...
... Effect on the Market for Overnight Letter Delivery of a Decline in the Price of Internet Access ...
1 Unit 3. Elasticity Learning objectives To comprehend and apply
... Let’s go on with the examples of government fiscal policies in the unit 2 “Supply and demand”. Suppose at first that market demand and supply curves are given by the following expressions: Qd = 100 - P; Qs = 3P - 20. If the government imposes a tax equal to 8 dollars per unit sold by producers tota ...
... Let’s go on with the examples of government fiscal policies in the unit 2 “Supply and demand”. Suppose at first that market demand and supply curves are given by the following expressions: Qd = 100 - P; Qs = 3P - 20. If the government imposes a tax equal to 8 dollars per unit sold by producers tota ...
1 Hume`s specie-flow mechanism and the 16 century price
... This is an idealization, but when Adam Smith (1776), Book IV, chapter III, points out that what is relevant is not a wrong balance of trade, even if a nation imports more than it exports for half a century, and contracts increasing debts with other nations –as long as its wealth increases in greater ...
... This is an idealization, but when Adam Smith (1776), Book IV, chapter III, points out that what is relevant is not a wrong balance of trade, even if a nation imports more than it exports for half a century, and contracts increasing debts with other nations –as long as its wealth increases in greater ...
Does Saving Increase the Supply of Credit?
... But while Patinkin and Hicks are right in their analysis, the question is not whether stocks or flows of money or credit determine interest rates, but whether one sees saving as the limiting factor for the provision of loans. This issue has hardly been discussed, with a short interchange on the matte ...
... But while Patinkin and Hicks are right in their analysis, the question is not whether stocks or flows of money or credit determine interest rates, but whether one sees saving as the limiting factor for the provision of loans. This issue has hardly been discussed, with a short interchange on the matte ...
1 Monetary regimes and the co-ordination of wage setting by
... yi = g + α (m − p ) − η ( pi − p ) ...
... yi = g + α (m − p ) − η ( pi − p ) ...
Is the GDP Growth Rate in NIPA a Welfare Measure? - IAE-CSIC
... measure of growth in the model economy. Hence, the first contribution of this paper is to show that the Divisia index is the welfare-relevant measurement of growth. In turn, this means that National Accounts real growth rates are welfare-based measurements and, in particular, that the growth rate of ...
... measure of growth in the model economy. Hence, the first contribution of this paper is to show that the Divisia index is the welfare-relevant measurement of growth. In turn, this means that National Accounts real growth rates are welfare-based measurements and, in particular, that the growth rate of ...
risk and business cycles
... Instead of producing an inflationary surprise, central banks sometimes increase monetary volatility. In this case entrepreneurs will respond by shifting from riskier to less risky investments. The economy will experience an immediate downturn, and possibly also a high rate of price inflation. If the ...
... Instead of producing an inflationary surprise, central banks sometimes increase monetary volatility. In this case entrepreneurs will respond by shifting from riskier to less risky investments. The economy will experience an immediate downturn, and possibly also a high rate of price inflation. If the ...
Chapter 3
... • The preceding model adopted a very simplified view of economic growth over time in order to explain the relationships between per capita savings and capital per capita. • It ignored the role of technology in promoting economic growth. ...
... • The preceding model adopted a very simplified view of economic growth over time in order to explain the relationships between per capita savings and capital per capita. • It ignored the role of technology in promoting economic growth. ...
Market and Underground Activities in a Two
... underground activities, and robust across counties: although the figures are based on different data sets and different estimation methods, they all emphasize the countercyclical nature of underground production. Figure 1 This is an interesting and striking feature suggesting that standard models om ...
... underground activities, and robust across counties: although the figures are based on different data sets and different estimation methods, they all emphasize the countercyclical nature of underground production. Figure 1 This is an interesting and striking feature suggesting that standard models om ...
Efficient Investment in Children
... denotes the expected lifetime utility that his child will realize upon growing up. The young adult attaches the weight h to his offspring’s expected lifetime utility and he discounts the future at rate b. 7 The analysis presumes that children cannot transact for themselves. Hence, there would be no ...
... denotes the expected lifetime utility that his child will realize upon growing up. The young adult attaches the weight h to his offspring’s expected lifetime utility and he discounts the future at rate b. 7 The analysis presumes that children cannot transact for themselves. Hence, there would be no ...
East Asia vs. Latin America: TFP and Human Capital Policies
... Chang and Hornstein (2007) and Papageorgiu and Perez-Sebastian (2005), reach the opposite conclusion: they claim that models that deviate from the standard neoclassical model are needed to explain the economic performance of East Asian countries. In the case of Latin America, DeGregorio (2006) pres ...
... Chang and Hornstein (2007) and Papageorgiu and Perez-Sebastian (2005), reach the opposite conclusion: they claim that models that deviate from the standard neoclassical model are needed to explain the economic performance of East Asian countries. In the case of Latin America, DeGregorio (2006) pres ...
The Marginal Use Value
... The Paradox of Value : Water-Diamond Paradox The water-diamond paradox refers to a paradox between the value of water versus that of diamond ; and the price of water versus that of diamond. Some people argued that water is so useful, yet its price is relatively lower than most goods. Whereas diamond ...
... The Paradox of Value : Water-Diamond Paradox The water-diamond paradox refers to a paradox between the value of water versus that of diamond ; and the price of water versus that of diamond. Some people argued that water is so useful, yet its price is relatively lower than most goods. Whereas diamond ...
Real and Nominal Interest Rates The nominal
... Interest represents a payment in the future for a transfer of money in the past. ...
... Interest represents a payment in the future for a transfer of money in the past. ...
The Firm`s Output Decision
... The Firm’s Output Decision Marginal Analysis and Supply Decision The firm can use marginal analysis to determine the profitmaximizing output. Because marginal revenue is constant and marginal cost eventually increases as output increases, profit is maximized by producing the output at which margina ...
... The Firm’s Output Decision Marginal Analysis and Supply Decision The firm can use marginal analysis to determine the profitmaximizing output. Because marginal revenue is constant and marginal cost eventually increases as output increases, profit is maximized by producing the output at which margina ...
NBER WORXING PAPER SERIES RUN GROWTH LONG RUN POLICY ANALYSIS AND Sergio Rebelo
... through a simple mechanism: an increase in the Income tax rate decreases the rate of return to the investment activities of the private sector and leads to a permonent decline in the rate of capital accumulation and in the rate of growth. The class of economies that we propose in this paper shares w ...
... through a simple mechanism: an increase in the Income tax rate decreases the rate of return to the investment activities of the private sector and leads to a permonent decline in the rate of capital accumulation and in the rate of growth. The class of economies that we propose in this paper shares w ...
CHAPTER 6 ECONOMETRIC RESULTS OF COST FUNCTIONS
... all the types of costs and outputs are given in Appendix ...
... all the types of costs and outputs are given in Appendix ...
Chapter 6
... Output = f(labor | capital, land, and management) Start with one variable input Page 112 ...
... Output = f(labor | capital, land, and management) Start with one variable input Page 112 ...
Bursting Bubbles: Consequences and Cures March 3, 2009 Narayana R. Kocherlakota
... Earlier, I stated that I assumed that land pays no dividend. I make this assumption to deal with an issue emphasized by Santos and Woodford (1997). They point out that there is a fundamental difficulty with generating bubbles in economies with immortal agents. To rule out finite-period arbitrages, bub ...
... Earlier, I stated that I assumed that land pays no dividend. I make this assumption to deal with an issue emphasized by Santos and Woodford (1997). They point out that there is a fundamental difficulty with generating bubbles in economies with immortal agents. To rule out finite-period arbitrages, bub ...
Slide 1
... – This shifts the demand curve to the left – If a fall income occurs, the demand curve shifts to the ...
... – This shifts the demand curve to the left – If a fall income occurs, the demand curve shifts to the ...
Models of Military Expenditure and Growth: A Critical
... references, but here we will briefly list them to indicate the range of possibilities, rather than provide references or evaluation. They can be broadly grouped into demand effects, supply effects and security effects. Demand effects operate through the level and composition of expenditure. The most ...
... references, but here we will briefly list them to indicate the range of possibilities, rather than provide references or evaluation. They can be broadly grouped into demand effects, supply effects and security effects. Demand effects operate through the level and composition of expenditure. The most ...
Why Do Economists Still Disagree over Government Spending
... available (from investment decisions made in the past). Attention then must be turned to the third factor, effective labor. Effective labor is hours of work adjusted to account for differences in skill across the labor force (engineer hours are weighted more heavily than baristas’). Unlike the other ...
... available (from investment decisions made in the past). Attention then must be turned to the third factor, effective labor. Effective labor is hours of work adjusted to account for differences in skill across the labor force (engineer hours are weighted more heavily than baristas’). Unlike the other ...
Macroeconomics
Macroeconomics (from the Greek prefix makro- meaning ""large"" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. With microeconomics, macroeconomics is one of the two most general fields in economics.Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price index, and the interrelations among the different sectors of the economy, to better understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific marketsWhile macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of economic policy.