59 results
Search Results
2. The spatial dimension of economic growth and convergence.
- Author
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Bode, Eckhardt and Rey, Sergio J.
- Subjects
REGIONAL economics ,ECONOMIC development ,ECONOMIC convergence ,SPACE in economics ,ECONOMIC models ,STATISTICAL hypothesis testing - Abstract
The article aims to explain regional economic development and economic convergence under the theme of spatial econometrics. The major idea behind the economic convergence is decreasing returns to capital accumulation. The economic convergence can be achieved by variety of theoretical and statistical models. There are so many advanced studies came out. They will facilitate convergence model specification and statistical testing for better efficiency.
- Published
- 2006
- Full Text
- View/download PDF
3. Endogenous Liquidity in Asset Markets.
- Author
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EISFELDT, ANDREA L.
- Subjects
LIQUIDITY (Economics) ,ASSETS (Accounting) ,ADVERSE selection (Commerce) ,ENDOGENOUS growth (Economics) ,INVESTMENTS ,RISK management in business ,BUSINESS cycles ,ECONOMIC models ,ECONOMIC statistics ,ECONOMIC development ,INFORMATION asymmetry ,MARKET failure - Abstract
This paper analyzes a model in which long-term risky assets are illiquid due to adverse selection. The degree of adverse selection and hence the liquidity of these assets is determined endogenously by the amount of trade for reasons other than private information. I find that higher productivity leads to increased liquidity. Moreover, liquidity magnifies the effects of changes in productivity on investment and volume. High productivity implies that investors initiate larger scale risky projects which increases the riskiness of their incomes. Riskier incomes induce more sales of claims to high-quality projects, causing liquidity to increase. [ABSTRACT FROM AUTHOR]
- Published
- 2004
- Full Text
- View/download PDF
4. Trade costs, wage difference, and endogenous growth.
- Author
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Tanaka, Akinori and Yamamoto, Kazuhiro
- Subjects
ECONOMIC development ,ECONOMIC models ,INTERNATIONAL trade ,ECONOMIC equilibrium ,WAGE differentials ,MANUFACTURING industries ,INNOVATIONS in business - Abstract
Copyright of Papers in Regional Science is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2013
- Full Text
- View/download PDF
5. Growing Regions through Smart Specialisation: A Methodology for Modelling the Economic Impact of a Food Processing Hub in Australia.
- Author
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Esposto, Alexis Sergio, Abbott, Malcolm, and Juliano, Pablo
- Subjects
ECONOMIC models ,ECONOMIC impact analysis ,FOOD industry ,ECONOMIC impact ,NETWORK hubs - Abstract
The purpose of this paper is to examine the positive impact that the creation of food processing hubs can have on "smart specialisation" on the economic development of regional Australia. The analysis looks at two existing developments in Australia, as well as providing an economic evaluation of another "regional hub" that is currently being proposed. Our paper provides an economic impact analysis of the proposed establishment of a food processing hub in Victoria. It presents an analysis on its impact both at a regional level (Gippsland), and more widely across Australia. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
6. Opportunities for developing the science of operations and supply-chain management
- Author
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Singhal, Kalyan and Singhal, Jaya
- Subjects
ECONOMIC development ,SUPPLY chain management ,TECHNOLOGICAL innovations ,ECONOMIC research ,ECONOMIC efficiency ,META-analysis ,ECONOMIC models - Abstract
Abstract: In a separate paper (), we identified two sets of opportunities for radical innovations in operations and supply-chain management (O&SCM): pursuing all phases of science and pursuing multiple perspectives. In this paper, we propose and analyze ways to accomplish this task. A network of research teams can be effective in obtaining multiple perspectives and discovering radical innovation if it conducts intensive research over an extended period. Outliers are a source of multiple perspectives and innovative ideas and can help in identifying and addressing risks. Similarly, meta-analyses and syntheses of published works can provide multiple perspectives and lead to radical innovations. [Copyright &y& Elsevier]
- Published
- 2012
- Full Text
- View/download PDF
7. Imperatives of the science of operations and supply-chain management
- Author
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Singhal, Kalyan and Singhal, Jaya
- Subjects
SUPPLY chain management ,TECHNOLOGICAL innovations ,QUALITATIVE research ,ECONOMIC development ,ECONOMIC models ,ECONOMIC research ,GENERALIZATION - Abstract
Abstract: Although knowledge in operations and supply-chain management (O&SCM) has advanced substantially during the last six decades, our community has not fully utilized the potential for radical innovations. We identify two sets of opportunities for pursuing radical innovations. First, there is an opportunity to pursue all phases of science, including exploratory and qualitative research, developing theories, causation and internal validity, and testing models and theories for external validity (the ability to generalize knowledge to other situations). This would broaden the domain covered by each research effort, minimize the bias resulting from the choice of research paradigm and research domain, to enhance external validity, and to minimize the gap between our research efforts and the real world our community seeks to reshape. Second, there is an opportunity to pursue multiple perspectives because a scientific conclusion valid for a narrow domain may prove to be partially true or even false if one obtains multiple perspectives. Multiple perspectives can be obtained by investigating different parts of the system, by employing different methods of analysis, by using different sources of data, or by using different subsets of the same data. Developing scientific knowledge requires pursuit of all phases of science and of multiple perspectives. In a separate paper, we propose and analyze ways to accomplish it. [Copyright &y& Elsevier]
- Published
- 2012
- Full Text
- View/download PDF
8. HEALTH IMPROVEMENTS AND THE TRANSITION OUT OF MALTHUSIAN STAGNATION.
- Author
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Currais, Luis, Rivera, Berta, and Rungo, Paolo
- Subjects
ECONOMIC models ,ECONOMIC development ,HUMAN capital ,MORTALITY ,ECONOMIC expansion ,MALTHUSIANISM ,STAGNATION (Economics) ,HEALTH ,DEVELOPED countries - Abstract
The central component of most economic models that analyse the transition from the Malthusian regime to self-sustaining developed economies is education. Improved health is normally envisaged as simply a by-product of economic growth. Whereas growth does, indeed, tend to improve health status, the reverse is also true, namely that health improvements are a dynamic force capable of driving economic expansion. This paper underlines the importance of health improvements in escaping from Malthusian stagnation. Further, and in contrast to existing literature, which emphasizes the effects of changes in mortality rates, this paper focuses on the relationship between health status and the efficiency of human capital technology. Through this channel, health improvements stimulate investments in child quality in terms of both nourishing and schooling and drive the economy towards the Modern Growth regime. [ABSTRACT FROM AUTHOR]
- Published
- 2009
- Full Text
- View/download PDF
9. Extending a SVAR Model of the Australian Economy.
- Author
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DUNGEY, MARDI and PAGAN, ADRIAN
- Subjects
MACROECONOMICS ,ECONOMIC trends ,STOCHASTIC approximation ,ECONOMIC models ,GROSS domestic product ,ECONOMIC policy ,EMPIRICAL research ,ECONOMIC development - Abstract
Dungey and Pagan (2000) present a SVAR model of the Australian economy which models macroeconomic outcomes as transitory deviations from a deterministic trend. In this paper we extend that model in two directions. First, we relate it to an emerging literature on Dynamic Stochastic General Equilibrium modelling of small open economies. Second, we allow for both transitory and permanent components in the series and show how this modification has an impact on the design of macroeconomic models. [ABSTRACT FROM AUTHOR]
- Published
- 2009
- Full Text
- View/download PDF
10. A Systemic View of Innovation Adoption in the Australian Beef Industry.
- Author
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Sun, Daowei, Hyland, Paul, and Bosch, Ockie
- Subjects
INNOVATION adoption ,ECONOMIC development ,BEEF industry ,CROPPING systems ,INNOVATIONS in business ,ECONOMIC models - Abstract
Significant investments in developing technological innovations have been made in the Australian beef industry but with low adoption rates. By modelling the key variables and their interactions in the innovation adoption process, this research seeks to demonstrate the complexity and dynamics of the process. This research uses causal loop modelling and develops a holistic model of the current innovation adoption system in the Australian beef industry to show the complexity of dynamic interactions among multiple variables. It is suggested that innovation adoption is such an extremely complex issue, and we need to shift our views on this issue from a paradigm of linear thinking to systems thinking. Innovation adoption is more likely to be enhanced based on a full understanding of the complexity and dynamics of the system as a whole. The paper demonstrates to practitioners and developers of innovation the multiple variables and interactions impacting innovation adoption. Copyright © 2014 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2015
- Full Text
- View/download PDF
11. Trade openness reduces growth volatility when countries are well diversified.
- Author
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Haddad, Mona, Lim, Jamus Jerome, Pancaro, Cosimo, and Saborowski, Christian
- Subjects
ECONOMIC development ,MARKET volatility ,PORTFOLIO diversification ,EXPORTS ,ECONOMIC models ,ECONOMIC research ,INTERNATIONAL trade - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2013
- Full Text
- View/download PDF
12. Imperfect financial integration and asymmetric information: competing explanations of the home bias puzzle?
- Author
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Mondria, Jordi and Wu, Thomas
- Subjects
INFORMATION asymmetry ,ECONOMIC competition ,ECONOMIC development ,ECONOMIC expectations ,ECONOMIC models ,EMPIRICAL research ,PRICES ,STOCK exchanges - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2013
- Full Text
- View/download PDF
13. MONTHLY GDP FORECASTING USING BRIDGE MODELS: APPLICATION FOR THE FRENCH ECONOMY.
- Author
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Barhoumi, Karim, Darné, Olivier, Ferrara, Laurent, and Pluyaud, Bertrand
- Subjects
GROSS domestic product ,ECONOMIC forecasting ,ECONOMIC models ,ECONOMIC development ,SUPPLY & demand - Abstract
ABSTRACT This paper presents a model to predict French gross domestic product (GDP) quarterly growth rate. The model is designed to be used on a monthly basis by integrating monthly economic information through bridge models, for both supply and demand sides, allowing thus economic interpretations. For each GDP component, bridge equations are specified by using a general-to-specific approach implemented in an automated way by Hoover and Perez and improved by Krolzig and Hendry. This approach allows to select explanatory variables among a large data set of hard and soft data. A rolling forecast study is carried out to assess the forecasting performance in the prediction of aggregated GDP, by taking publication lags into account in order to run pseudo real-time forecasts. It turns out that the model outperforms benchmark models. The results show that changing the set of equations over the quarter is superior to keeping the same equations over time. In addition, GDP growth seems to be more precisely predicted from a supply-side approach rather than a demand-side approach. [ABSTRACT FROM AUTHOR]
- Published
- 2012
- Full Text
- View/download PDF
14. Monetary transmission mechanisms in a small open economy: a Bayesian structural VAR approach.
- Author
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Bhuiyan, Rokon
- Subjects
TRANSMISSION mechanism (Monetary policy) ,SMALL business ,BAYESIAN analysis ,VALUE at risk ,ECONOMIC development ,ECONOMIC models - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2012
- Full Text
- View/download PDF
15. Globalization, product differentiation, and wage inequality.
- Author
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Bastos, Paulo and Straume, Odd Rune
- Subjects
GLOBALIZATION ,PRODUCT differentiation ,INCOME inequality ,ECONOMIC development ,ECONOMIC models ,ECONOMIC equilibrium ,INNOVATIONS in business ,MONOPOLIES - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2012
- Full Text
- View/download PDF
16. Comovements and heterogeneity in the euro area analyzed in a non-stationary dynamic factor model.
- Author
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Eickmeier, Sandra
- Subjects
ECONOMIC development ,ECONOMIC models ,MACROECONOMICS ,ECOLOGICAL heterogeneity ,EUROPEAN currency unit - Abstract
This paper establishes stylized facts on comovements and heterogeneity of individual euro area countries' output and price developments in the past two decades. For this purpose, a non-stationary structural dynamic factor model is fitted to a large dataset of euro area macroeconomic variables. The main results are as follows. Both common factors and idiosyncratic components are important in explaining individual countries' output and price developments in the euro area and are also both very persistent. Idiosyncratic shocks and adjustments to these shocks are mainly responsible for cross-country heterogeneity. The asymmetric transmission of common shocks plays a minor role. Finally, there is no strong evidence that some common shocks lead to greater heterogeneity than others. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2009
- Full Text
- View/download PDF
17. Ideas and Growth.
- Author
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LUCAS, ROBERT E.
- Subjects
ENDOGENOUS growth (Economics) ,TECHNOLOGICAL innovations ,ECONOMIC models ,ECONOMIC development ,PROBLEM solving ,BUSINESS enterprises - Abstract
This paper introduces and partially develops a new model of endogenous technological change, viewed as the product of a class of problem-solving producers. The model, based on earlier work by Eaton and Kortum, is built up from the premise that all knowledge resides in the head of some individual person and the knowledge of a firm, or economy, or any group of people is simply the knowledge of the individuals that comprise it. The model is applied to an economy with a cohort structure. A calibration of the model using cross-section earnings data, in addition to aggregate GDP growth, is considered. [ABSTRACT FROM AUTHOR]
- Published
- 2009
- Full Text
- View/download PDF
18. Innis Lecture: Explorations in medium-run macroeconomics.
- Author
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Beaudry, Paul
- Subjects
MACROECONOMICS ,WAGES ,INCOME inequality ,ECONOMIC development ,PRICES ,ECONOMIC models - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2005
- Full Text
- View/download PDF
19. Climate Change and Uneven Development.
- Author
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Bretschger, Lucas and Valente, Simone
- Subjects
CLIMATE change ,ECONOMIC development ,DEPRECIATION ,SOCIAL adjustment ,ECONOMIC models ,DEVELOPING countries - Abstract
In this paper, using a theoretical model with endogenous capital depreciation, we study the effects of climate change and adaptation on long-run development. We show that climate change affects economic growth depending on climate exposure and adaptation efficiency, which are asymmetric between different countries. Poor countries are likely to be hurt more, because of the negative effects of climate change on the rate of depreciation of the assets that represent the engine of growth. These asymmetries generally induce growth deficits and unsustainability traps in less-developed economies. [ABSTRACT FROM AUTHOR]
- Published
- 2011
- Full Text
- View/download PDF
20. Financial Investment Opportunities and the Macroeconomy.
- Author
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Nai-Fu Chen
- Subjects
MACROECONOMICS ,ECONOMIC development ,ECONOMIC forecasting ,RATE of return ,GROWTH rate ,ECONOMIC equilibrium ,CONSUMPTION (Economics) ,PRODUCTION (Economic theory) ,ECONOMIC models ,FINANCIAL ratios - Abstract
This paper studies the relation between changes in financial investment opportunities and changes in the macroeconomy. States variables such as the lagged production growth rate, the default premium, the term premium, the short-term interest rate and the market dividend-price ratio are shown to be indicators of recent and future economic growth. Further, the market excess return is negatively correlated with recent economic growth and positively correlated with expected future economic growth. These results offer straightforward interpretations of recent evidence on the forecasts of the market excess return by state variable via their forecasts on the macroeconomy. [ABSTRACT FROM AUTHOR]
- Published
- 1991
- Full Text
- View/download PDF
21. Economic transition and growth.
- Author
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Phillips, Peter C. B. and Donggyu Sul
- Subjects
ECONOMIC development ,ECONOMIC convergence ,CREATIVE ability in technology ,ECONOMETRICS ,ECONOMIC models ,MATHEMATICAL models - Abstract
Some extensions of neoclassical growth models are discussed that allow for cross-section heterogeneity among economies and evolution in rates of technological progress over time. The models offer a spectrum of transitional behavior among economies that includes convergence to a common steady-state path as well as various forms of transitional divergence and convergence. Mechanisms for modeling such transitions, measuring them econometrically, assessing group behavior and selecting subgroups are developed in the paper. Some econometric issues with the commonly used augmented Solow regressions are pointed out, including problems of endogeneity and omitted variable bias which arise under conditions of transitional heterogeneity. Alternative regression methods for analyzing economic transition are given which lead to a new test of the convergence hypothesis and a new procedure for detecting club convergence clusters. Transition curves for individual economies and subgroups of economies are estimated in a series of empirical applications of the methods to regional US data, OECD data and Penn World Table data. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]
- Published
- 2009
- Full Text
- View/download PDF
22. Growth and residential distribution with economic structure and amenity: A synthesis of Solow-Uzawa's growth, Alonso's urban, and Muth's housing models.
- Author
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Wei-Bin Zhang
- Subjects
ECONOMIC development ,DISTRIBUTION (Economic theory) ,ECONOMIC models ,HOUSING ,HOUSEHOLDS ,BEHAVIOR ,ECONOMIC geography - Abstract
This study develops an economic growth model with residential distribution. The model synthesises the main ideas in the Solow-Uzawa growth model, the Alonso urban model, and the Muth housing model with perfect competition in all the markets, by proposing an alternative approach to household behaviour. We show that economic growth with the economic geography is governed by a single differential equation and analyse dynamic behaviour of the model. For explanation, we simulate the model over time and space. Resumen. Este estudio desarrolla un modelo de crecimiento económico con distribución residencial. El modelo sintetiza las ideas principales del modelo de crecimiento de Solow-Uzawa, el modelo urbano de Alonso, y el modelo de vivienda de Muth con una competencia perfecta en todos los mercados, por medio de proponer un enfoque alternativo al comportamiento de hogares. Mostramos que el crecimiento económico con la geografía económica está gobernado por una única ecuación diferencial y analizamos el comportamiento dinámico del modelo. A modo de explicación, realizamos una simulación del modelo en el tiempo y en el espacio. [ABSTRACT FROM AUTHOR]
- Published
- 2008
- Full Text
- View/download PDF
23. An institutional convergence perspective on China’s recent growth experience: A research note.
- Author
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Ying, Long Gen
- Subjects
ECONOMIC development ,ECONOMIC convergence ,MATHEMATICAL models of economic development ,ECONOMIC models ,INVESTORS ,COMMUNITY development ,ECONOMICS - Abstract
This research note reconsiders China’s recent growth experience from an institutional convergence perspective. Based on the neoclassical production function of growth, a stochastic growth model incorporating an institutional variable is specified and estimated using cross-province socioeconomic data for 1984–2001. While three explanatory variables all contribute to growth, the most significant and important effect comes from the variable of institutional progress. This suggests that China’s good economic performance since 1978 can be attributed to the convergence of China’s economic institutions with the economic institutions of modern capitalist economies, particularly the East Asian capitalist economies. If this suggestion is accepted, then China’s newly emerging regionalism can be better understood as resulting from an uneven institutional convergence process in a spatial context. These results are different from those of conventional Chinese regional development studies. They are important because they represent the first detailed evidence on the role of institutional effects in a Chinese regional economic study. [ABSTRACT FROM AUTHOR]
- Published
- 2006
- Full Text
- View/download PDF
24. The versatile role of sustainable market entrepreneurs in market transformation: An intervention framework for institutional change.
- Author
-
Argyrou, Aikaterini, Chevrollier, Nicolas, and Nijhof, Andre
- Subjects
BUSINESSPEOPLE ,MARKET design & structure (Economics) ,ECONOMIC development ,PHASE transitions ,ECONOMIC models - Abstract
This article investigates in which way sustainable entrepreneurship can generate institutional change that transforms markets towards sustainability. A transformation of models of economic organization and market structures through sustainable entrepreneurship fosters the path towards sustainability. Institutional change involves sustainable market entrepreneurs as institutional entrepreneurs that operate in an effectual manner in different market transformation phases. Sustainable market entrepreneurs while seeking entrepreneurial opportunities simultaneously shape existing market structures and market conditions in different sustainable market transformation phases thereby creating new opportunities. Accordingly, a framework that explains institutional change prompted by sustainable market entrepreneurs in market transformation phases is developed. In this framework, various interventions which encourage sustainable market entrepreneurs to co‐create with the stakeholders of their choice are strategized. The provided framework enhances the understanding of the versatile role of sustainable market entrepreneurs and potentially the leverage of their actions towards institutional impact over time. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF
25. Conservative Central Banks and Nominal Growth, Exchange Rate and Inflation Targets.
- Author
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BAE, SANG-KUN and RATTI, RONALD A.
- Subjects
MONETARY policy ,PRICE inflation ,FOREIGN exchange rates ,ECONOMIC development ,CENTRAL banking industry ,ECONOMIC models - Abstract
A framework is developed in which inflation biases with different target variables are compared. A nominal growth target measured in consumer prices may yield less stabilization bias than a nominal income growth target. Exchange rate and inflation targets result in less stabilization bias than an income growth target the more important the terms-of-trade stabilization. Persistence in output causes excessive stabilization of productivity shocks and of shocks to the terms of trade under discretion. An inflation-weight conservative central bank is more likely under an inflation target than under an exchange rate target, and less likely under a nominal income growth target. [ABSTRACT FROM AUTHOR]
- Published
- 2008
- Full Text
- View/download PDF
26. Two-level CES Production Technology in the Solow and Diamond Growth Models.
- Author
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Papageorgiou, Chris and Saam, Marianne
- Subjects
ECONOMIC models ,ECONOMIC policy ,ECONOMICS ,MONEY supply ,ECONOMIC systems ,MACROECONOMICS ,INVESTMENT policy ,ECONOMIC indicators ,ECONOMIC development ,INDUSTRIAL productivity - Abstract
The two-level CES aggregate production function—that nests a CES into another CES function—has recently been used extensively in theoretical and empirical applications of macroeconomics. We examine the theoretical properties of this production technology and establish existence and stability conditions of steady states under the Solow and Diamond growth models. It is shown that in the Solow model the sufficient condition for a steady state is fulfilled for a wide range of substitution parameter values. This is in sharp contrast with the two-factor Solow model, where only an elasticity of substitution equal to one is sufficient to guarantee the existence of a steady state. In the Diamond model, multiple equilibria can occur when the aggregate elasticity of substitution is lower than the capital share. Moreover, it is shown that for high initial levels of capital and factor substitutability, the effect of a further increase in a substitution parameter on the steady state depends on capital–skill complementarity. [ABSTRACT FROM AUTHOR]
- Published
- 2008
- Full Text
- View/download PDF
27. Choosing the Joneses: Endogenous Goals and Reference Standards.
- Author
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Falk, Armin and Knell, Markus
- Subjects
ENDOGENOUS growth (Economics) ,ECONOMIC development ,SAVINGS ,CONSUMPTION (Economics) ,SOCIAL psychology ,ECONOMIC models - Abstract
A growing economic literature stresses the importance of relative comparisons, e.g., for savings and consumption or happiness. In this literature it is usually assumed that reference standards against which people compare themselves are exogenously given. In contrast, findings from social psychology suggest that people play an active role in determining their reference standards. We introduce a social comparison model where people choose their reference standards to serve motives of self-improvement and self-enhancement. The model predicts that reference standards increase in individuals’ abilities and that people thus tend to compare themselves to similar others. The results of a questionnaire study confirm the prediction of the model. [ABSTRACT FROM AUTHOR]
- Published
- 2004
- Full Text
- View/download PDF
28. THE STABILITY OF STEADY STATES IN PERFECT FORESIGHT MODELS.
- Author
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Laitner, John P.
- Subjects
ECONOMETRIC models ,ECONOMETRICS ,MATHEMATICAL models ,ECONOMIC models ,ECONOMIC development ,LINEAR programming ,MATHEMATICAL programming ,ECONOMIC forecasting ,BUSINESS forecasting - Abstract
This paper analyzes nonlinear growth models in which agents' expectations have a role in determining present behavior. Assuming agents have perfect foresight, we develop sufficiency conditions for the local stability of a given steady state. We then briefly discuss several examples in which stability prevails. [ABSTRACT FROM AUTHOR]
- Published
- 1981
- Full Text
- View/download PDF
29. NON-STEADY-STATE ECONOMIC GROWTH IN A TWO-SECTOR WORLD.
- Author
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Lapan, Harvey E.
- Subjects
MATHEMATICAL models of economic development ,ECONOMIC models ,ECONOMIC development ,STAGNATION (Economics) ,ASYMPTOTIC expansions ,ASYMPTOTES ,GROWTH rate ,ECONOMIC indicators ,INVESTMENTS - Abstract
This paper discusses the asymptotic behavior of the neoclassical two-sector growth model when the steady-state conditions are not fulfilled, and derives the asymptotic growth rates for cases in which Hicks neutral technical progress occurs in the investment sector, or Harrod neutral technical progress occurs at different rates in the two sectors. The last section compares the asymptotic properties of this model with the standard steady-state properties of the two-sector growth model. [ABSTRACT FROM AUTHOR]
- Published
- 1975
- Full Text
- View/download PDF
30. DEMAND-PULL AND TECHNOLOGICAL INVENTION: SCHMOOKLER REVISTED.
- Author
-
Scherer, F. M.
- Subjects
INDUSTRIAL organization (Economic theory) ,TECHNOLOGICAL innovations ,ECONOMIC demand ,ECONOMIC development ,INDUSTRIAL equipment ,ECONOMIC models - Abstract
The article focuses on the demand-pull hypothesis of industrial economics proposed by researcher Jacob Schmookler in the 1960s. During the 1950s and 1960s, quantitative research on the economics of invention was spurred by awareness that technical change was a primary source of the rapid economic growth achieved by industrialized nations. Schmookler's main contention, contrary to the prevailing emphasis on changes in scientific and technological knowledge, was that demand played a leading role in determining both the direction and magnitude of inventive activity. His prime focus was on capital goods inventions, measured by the number of U.S. patents linked by Patent Office sub-class codes to particular industrial end uses. The more investment there was in a using industry, Schmookler claimed, the more patented capital goods inventions directed toward that industry's needs one should observe. The source of those inventions could be the using industry, other industries that specialize in supplying capital goods, or independent inventors.
- Published
- 1982
- Full Text
- View/download PDF
31. Cyclical Uncertainty, Precautionary Saving and Economic Growth.
- Author
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Smith, R. Todd
- Subjects
ECONOMIC development ,ECONOMIC models ,ECONOMIC indicators ,STOCHASTIC analysis ,SAVINGS ,BUSINESS cycles - Abstract
This paper studies the interaction between cyclical uncertainty, precautionary saving and economic growth in a stochastic endogenous growth model. The analysis provides insight into the potential connection between technological uncertainty of the sort popularized in teal business cycle models and the determinants of economic growth in a stochastic version of a popular model of endogenously determined economic growth. The magnitude of the link between cyclical uncertainty and growth is quantified and found to be small in terms of its effect on the growth rate, but possibly large in terms of its effect on levels of macroeconomic variables. Moreover, the welfare costs of reduced cyclical uncertainty can be substantial, owing to the lower historical rate of capital accumulation induced by a decrease in precautionary saving. The chief implications of the model are found to he roughly consistent with the post-war experience of several countries, although the predictions of the model with regard to growth rates are too small to explain much of the variation in growth rates across time or across countries.
- Published
- 1996
- Full Text
- View/download PDF
32. On the Harris-Todaro Model with Intersectoral Capital Mobility.
- Author
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NEARY, J. PETER
- Subjects
ECONOMIC equilibrium ,ECONOMIC development ,WAGE increases ,ECONOMIC models ,MACROECONOMICS - Published
- 1981
- Full Text
- View/download PDF
33. CAPITAL-LABOUR SUBSTITUTION AND SLOWDOWN IN SOVIET ECONOMIC GROWTH: A RE-EXAMINATION.
- Author
-
Bairam, Erkin
- Subjects
ECONOMIC development ,PRODUCTION functions (Economic theory) ,ELASTICITY (Economics) ,PRODUCTION (Economic theory) ,SUBSTITUTION (Economics) ,SAVINGS ,ECONOMIC conditions in Russia, 1991- ,ECONOMIC models - Abstract
This paper tests aggregate Variable Elasticity of Substitution production functions for the Soviet economy. The estimated equations show that the elasticity of substitution is less than unity and is decreasing quite rapidly. [ABSTRACT FROM AUTHOR]
- Published
- 1990
- Full Text
- View/download PDF
34. A foundation for probabilistic beliefs with or without atoms.
- Author
-
Mackenzie, Andrew
- Subjects
ECONOMIC models ,PROBABILITY theory ,BELIEF & doubt ,ECONOMIC development ,PROBLEM solving - Abstract
We propose two novel axioms for qualitative probability spaces: (i) unlikely atoms, which requires that there is an event containing no atoms that is at least as likely as its complement; and (ii) third‐order atom‐swarming, which requires that for each atom, there is a countable pairwise‐disjoint collection of less‐likely events that can be partitioned into three groups, each with union at least as likely as the given atom. We prove that under monotone continuity, each of these axioms is sufficient to guarantee a unique countably‐additive probability measure representation, generalizing work by Villegas to allow atoms. Unlike previous contributions that allow atoms, we impose no cancellation or solvability axiom. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
35. A more powerful subvector Anderson Rubin test in linear instrumental variables regression.
- Author
-
Guggenberger, Patrik, Kleibergen, Frank, and Mavroeidis, Sophocles
- Subjects
ECONOMIC development ,ECONOMIC models ,INSTRUMENTAL variables (Statistics) ,REGRESSION analysis ,LINEAR systems - Abstract
We study subvector inference in the linear instrumental variables model assuming homoskedasticity but allowing for weak instruments. The subvector Anderson and Rubin (1949) test that uses chi square critical values with degrees of freedom reduced by the number of parameters not under test, proposed by Guggenberger, Kleibergen, Mavroeidis, and Chen (2012), controls size but is generally conservative. We propose a conditional subvector Anderson and Rubin test that uses data‐dependent critical values that adapt to the strength of identification of the parameters not under test. This test has correct size and strictly higher power than the subvector Anderson and Rubin test by Guggenberger et al. (2012). We provide tables with conditional critical values so that the new test is quick and easy to use. Application of our method to a model of risk preferences in development economics shows that it can strengthen empirical conclusions in practice. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
36. Where Is the Chinese Economy Going? A Forum on Contemporary Policy and Performance.
- Author
-
Garnaut, Ross, Johnston, Lauren, and Song, Ligang
- Subjects
ECONOMIC development ,ECONOMIC policy ,ECONOMIC models ,ECONOMIC structure ,ECONOMIC reform ,CONSUMPTION (Economics) ,ECONOMIC demand ,HUMAN capital - Abstract
China adopted a new model of growth from 2011, requiring substantial structural change. This introductory article presents statistical evidence on progress so far. Change generally is in the required direction, but slow. There has been early but slow progress on re-orienting domestic demand towards consumption; substantial re-orientation from reliance on exports towards domestic demand; and rapid change at the margin in the energy mix towards low-emissions sources. Investment in human capital is proceeding rapidly along lines required by the new model. So far, productivity growth has been slow, raising questions about future progress. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
37. China's Macroeconomic Balancing Act: Shifting to New Drivers of Growth and Sustaining Financial Stability.
- Author
-
Huang, Yiping, Shen, Yan, and Fu, Qiuzi
- Subjects
ECONOMIC development ,ECONOMIC equilibrium ,MACROECONOMICS ,ECONOMIC reform ,ECONOMIC models ,ECONOMIC policy - Abstract
In the lead-up to China's five-yearly National Party Congress late in 2017, attempts to resolve conflicts between short-term growth and structural reform have tended to favour immediate growth. The new model of growth requires new economy sectors to grow much more rapidly than traditional (post-1978) sectors. For a while, this was proceeding well, but in late 2016 and during 2017 there have been signs of priority for growth and therefore traditional sectors over the new economy. Favouring growth over reform introduces risk into longer-term growth prospects. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
38. Effects of Patent Protection on Optimal Corporate Income and Consumption Taxes in an R&D-Based Growth Model.
- Author
-
Iwaisako, Tatsuro
- Subjects
CORPORATE taxes ,CONSUMPTION (Economics) ,ECONOMIC development ,TAX rates ,RESEARCH & development ,TECHNOLOGICAL innovations ,ECONOMIC models - Abstract
Does reducing the corporate income tax accompanied by an increase in the consumption tax to meet the government's budget constraint improve welfare? To respond, we examine the welfare-maximizing corporate income tax and consumption tax rates in an R&D-based growth model under the constraint that the government's budget is balanced at each point of time. Further, we consider how welfare-maximizing tax rates change as patent protection becomes stronger, as seen in many countries. The results show that as patent protection becomes stronger, the corporate income tax rate should be higher and the consumption tax rate should be lower. This implies that under stronger patent protection, recovering production at the expense of innovation by raising corporate income tax and reducing consumption tax improves welfare. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
39. Why Doesn't Technology Flow From Rich to Poor Countries?
- Author
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Cole, Harold L., Greenwood, Jeremy, and Sanchez, Juan M.
- Subjects
TECHNOLOGICAL innovations & economics ,FINANCIAL services industry ,CASH management ,EFFECT of technological innovations on industrial productivity ,ECONOMIC models ,ECONOMIC development - Abstract
What is the role of a country's financial system in determining technology adoption? To examine this, a dynamic contract model is embedded into a general equilibrium setting with competitive intermediation. The terms of finance are dictated by an intermediary's ability to monitor and control a firm's cash flow, in conjunction with the structure of the technology that the firm adopts. It is not always profitable to finance promising technologies. A quantitative illustration is presented where financial frictions induce entrepreneurs in India and Mexico to adopt less-promising ventures than in the United States, despite lower input prices. [ABSTRACT FROM AUTHOR]
- Published
- 2016
- Full Text
- View/download PDF
40. Models of spatial competition: A critical review.
- Author
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Biscaia, Ricardo and Mota, Isabel
- Subjects
- *
ECONOMIC competition , *ECONOMIC models , *ECONOMIC development , *BUSINESS enterprises , *STRATEGIC planning , *INDUSTRIAL costs , *ECONOMIC equilibrium - Abstract
This critical review focuses on the development of spatial competition models à la Hotelling in which the location choice of firms plays a major role. We start by quantifying the research in this field by using bibliometric tools. Thereafter, this study identifies the main research paths within spatial competition modelling. Specifically, the type of strategy (Bertrand vs. Cournot competition), the assumptions that are made in respect to the market (linear vs. circular), production costs, transportation costs, the number of firms and the type of information (complete vs. incomplete) and their effects on the location equilibria are also discussed. [ABSTRACT FROM AUTHOR]
- Published
- 2013
- Full Text
- View/download PDF
41. THE ROLE OF MONITORING OF CORRUPTION IN A SIMPLE ENDOGENOUS GROWTH MODEL.
- Author
-
COPPIER, RAFFAELLA, COSTANTINI, MAURO, and PIGA, GUSTAVO
- Subjects
ENDOGENOUS growth (Economics) ,CORRUPTION ,ECONOMIC development ,ECONOMIC models ,BRIBERY ,ECONOMICS - Abstract
This article analyzes the relationship between economic growth and the monitoring of corruption. In our theoretical model, we derive a nonlinear relationship between the level of monitoring and economic growth, as well as between corruption and economic growth. At low monitoring levels, the economy experiences widespread corruption and medium growth rates, whereas no corruption occurs at intermediate monitoring levels, but low growth rates are recorded. At high monitoring levels, no corruption takes place and high growth rates are observed. The model is estimated using a dynamic panel data approach for Italy. Empirical results support the theoretical model. (JEL C33, D73, K42 ) [ABSTRACT FROM AUTHOR]
- Published
- 2013
- Full Text
- View/download PDF
42. FINANCIAL DEVELOPMENT AND THE SOURCES OF GROWTH AND CONVERGENCE* FINANCIAL DEVELOPMENT AND THE SOURCES OF GROWTH AND CONVERGENCE.
- Author
-
BadunENko, Oleg and Romero ‐ Ávila, Diego
- Subjects
ECONOMIC convergence ,ECONOMIC development ,SAVINGS ,LABOR productivity ,ECONOMIC efficiency ,ECONOMIC models - Abstract
We extend the deterministic, nonparametric production frontier framework by incorporating financial development. Our analysis convincingly shows that (1) failure to account for financial development overstates the role of physical capital accumulation in labor productivity growth, (2) most of this overstated contribution stems from the efficiency-enhancing role of well-functioning financial institutions, (3) international polarization is solely driven by efficiency changes, and (4) increased distributional dispersion of productivity is primarily driven by technological change. Model's extensions to account for the growth effect of changes in the institutional environment only add to the argument about the overstated role of physical capital. [ABSTRACT FROM AUTHOR]
- Published
- 2013
- Full Text
- View/download PDF
43. Maximizing human development.
- Author
-
Engineer, Merwan and King, Ian
- Subjects
WELL-being ,ECONOMIC development ,ECONOMIC models ,CONSUMPTION (Economics) ,MEDICAL economics ,CAPITAL - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2013
- Full Text
- View/download PDF
44. DERIVATIVE IDEAS AND THE VALUE OF INTANGIBLE ASSETS* DERIVATIVE IDEAS AND THE VALUE OF INTANGIBLE ASSETS.
- Author
-
Laitner, John and Stolyarov, Dmitriy
- Subjects
VALUATION of intangible property ,ECONOMIC equilibrium ,ECONOMIC models ,ECONOMIC development ,MICROECONOMICS ,PRODUCTION (Economic theory) - Abstract
We build a general equilibrium model where growth is driven by two invention types: fundamental ideas that cause creative destruction, and derivative ideas that enhance the value of existing inventions. The model provides a new mapping from microeconomic, patent data to aggregate total factor productivity growth and the aggregate value of privately owned knowledge. We show how to measure the frequency of derivative ideas and the rate of creative destruction. We estimate that derivative ideas account for 70-80% of all patents and their presence more than doubles the value of knowledge capital relative to what the measured innovation rate might otherwise imply. [ABSTRACT FROM AUTHOR]
- Published
- 2013
- Full Text
- View/download PDF
45. Intellectual property rights as development determinants.
- Author
-
Eicher, Theo S. and Newiak, Monique
- Subjects
INTELLECTUAL property ,PROPERTY rights ,ECONOMIC development ,ECONOMIC models ,INCOME ,LEAST squares ,BAYESIAN analysis - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2013
- Full Text
- View/download PDF
46. Greasing the wheels of international commerce: how services facilitate firms' international sourcing.
- Author
-
Debaere, Peter, Görg, Holger, and Raff, Horst
- Subjects
INTERNATIONAL business enterprises ,DATA analysis ,INDUSTRIAL procurement ,ORGANIZATIONAL change ,SALES ,ECONOMIC development ,ECONOMIC models ,DECISION making - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2013
- Full Text
- View/download PDF
47. Should countries block foreign takeovers of R&D champions and promote greenfield entry?
- Author
-
Bertrand, Olivier, Hakkala, Katariina Nilsson, Norbäck, Pehr-Johan, and Persson, Lars
- Subjects
RESEARCH & development ,FOREIGN investments ,BUSINESS enterprises ,ECONOMIC development ,ECONOMIC models ,STRATEGIC planning ,BUSINESS expansion - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2012
- Full Text
- View/download PDF
48. Heterogeneous firms, trade liberalization and agglomeration.
- Author
-
Saito, Hisamitsu, Gopinath, Munisamy, and Wu, JunJie
- Subjects
FREE trade ,INDUSTRIAL clusters ,BUSINESS enterprises ,ECONOMIC models ,INDUSTRIAL productivity ,ECONOMIC development ,WELFARE economics - Abstract
Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2011
- Full Text
- View/download PDF
49. WHY CHINA INDUSTRIALIZED AFTER ENGLAND.
- Author
-
KAHN, BARRY S.
- Subjects
INDUSTRIALIZATION ,NEOCLASSICAL school of economics ,MATHEMATICAL models of economic development ,COMPARATIVE studies ,ECONOMIC development ,ECONOMIC models ,TECHNOLOGY transfer - Abstract
Although industrialization first occurred in England, it is thought that China, not England, may have been the world leader in technology at the time. Yet, China did not industrialize until 150 yr after England and nearly a century after less advanced European countries. This represents a puzzle because two-sector neoclassical growth models, such as Hansen and Prescott (2002) , that accurately match industrialization, require that more technologically advanced countries industrialize at an earlier date. I find that a model that accounts for cross-country heterogeneities in population density accurately predicts the timing of industrialization in China. ( JEL F43, N10, N30, O11, O14, O41) [ABSTRACT FROM AUTHOR]
- Published
- 2010
- Full Text
- View/download PDF
50. Entrepreneurial Culture and Economic Growth: Revisiting McClelland's Thesis.
- Author
-
Beugelsdijk, Sjoerd and Smeets, Roger
- Subjects
ENTREPRENEURSHIP ,CULTURE ,ECONOMIC development ,ACHIEVEMENT ,TEXTBOOKS ,ECONOMIC models - Abstract
We reestimate McClelland's (1961) thesis on entrepreneurial culture and economic development. McClelland found a strong positive correlation between measures of need for achievement ( N achievement) imagery in school textbooks and the subsequent rate of economic growth. Benchmarking our findings against generally accepted empirical growth models, we find no support for his thesis. This leads us to rethink the relationship between entrepreneurial culture and economic growth. [ABSTRACT FROM AUTHOR]
- Published
- 2008
- Full Text
- View/download PDF
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