3 edition of Optimal capital accumulation and external indebtedness in a two sector small economy model found in the catalog.
Optimal capital accumulation and external indebtedness in a two sector small economy model
Written in English
|Statement||by Luiz Paulo M. Nunes.|
|LC Classifications||Microfilm 85/425 (H)|
|The Physical Object|
|Pagination||iv, 85 leaves|
|Number of Pages||85|
|LC Control Number||85890422|
A Two Sector Model In a Small Open Economy Yan Zhao 31/03/ This paper aims at solving the consumption correlation anomaly in a small open economy using a two sector approach. By dividing the goods into tradable and nontradable both theoretically and . The fiscal theory says that the price level is determined by the ratio of nominal debt to the present value of real primary surpluses. I analyze long-term debt and optimal policy in the fiscal theory. I find that the maturity structure of the debt matters. For example, it determines whether news of.
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Capital accumulation, external indebtedness, and macroeconomic performance of emerging countries Article (PDF Available) in Journal of Post Keynesian Economics 35().
European Economic Review 8 () ~;~ North-Holland Publishing Company DEBT AND CAPITAL ACCUMULATION IN A TWO-SECTOR MODEL WITH NON-TRADED GOODS* Oded Optimal capital accumulation and external indebtedness in a two sector small economy model book University of Chicago, Chicago, ILU.S.A.
Assaf RA71N Tel-Aviv University, Ramat-Aviv, Israel Received Novemberrevised version received February The paper examines Cited by: 1. The main theoretical result of the model is the existence of two long-run equilibrium positions, one of them with a high level of external indebtedness (as a ratio of capital stock) and a low.
capital accumulation.2 Teigniery () examines structural change in a small-open economy with capital accumulation, but the author uses a two-sector model so that a hump-shaped pro–le of manufacturing cannot be discussed.
Mao and Yao () explore a three-sector open economyCited by: 3. The details of how capital accumulation affects an economy in a closed economy growth model, as opposed to an open economy model, are important. In closed economy growth models capital accumulation is accompanied by a decline in the rate of return to capital—there is an inverse relationship between the capital-labor ratio and the returnto.
Journal of Public Economics 53 () North-Holland Taxes, housing, and capital accumulation in a two-sector growing economy Stephen J. Turnovsky Department of Economics, Saaery Hall, University of Washington, Seattle, WAUSA National Bureau of Economic Research, Cambridge, MAUSA Toshiyuki Okuyama* Department of Economics, Savery Hall, University of Cited by: The circular flow model in the two-sector economy is a hypothetical concept which states that there are only two sectors in the economy, household sector and business sector (business firms).
The household sector is the source of factors of production who earn by providing factor services to the business sector. The business sector refers to. This paper analyzes the borrowing behavior of a small open economy of a developing country that relies heavily on imports for its capital formation and faces an upward-sloping supply function of foreign loans.
Decision makers face uncertainty about the longevity of external shocks. That uncertainty generates forecast errors that lead to substantial debt by: 2.
This paper considers the impact of endogenous human capital accumulation on optimal tax policy in a life cycle model.
Including endogenous human capital accumulation, either through learning-by-doing or learning-or-doing, is analytically shown to create a motive for the government to use age-dependent labor income the government cannot condition taxes on age, then it is optimal to use.
The well-known neoclassical two-sector model of economic growth first proposed by Uzawa [13, 14] is a simplified but elegant extension of disaggregate general equilibrium analysis in the sense that it describes the evolution of a disaggregate economy which is in equilibrium at each moment of time.
As such, however, it has a rather serious by: 5. Comparison with basic model 84 Public and private capital 85 Role of public capital: conclusions 5 Two-sector growth models Introduction The model Determination of macroeconomic equilibrium Structural changes Transitional dynamics Conclusions 6 Non-scale growth models Introduction Small open.
Economic capital is a measure of risk expressed in terms of capital. A bank may, for instance, wonder Optimal capital accumulation and external indebtedness in a two sector small economy model book level of capital is needed in order to Author: Fadi Zaher. Optimal Taxation in a Growth Model with Public Capital Stock and Adjustment Costs By Been-Lon Chen* Academia Sinica April Abstract This paper extends Turnovsky (a, b) into a dynamic AK growth model with public capital accumulation and adjustment costs, and studies the optimal tax structure between capital and consumption.
In the present paper we are interested in the growth process in a two-sector model of capital accumulation and show that balanced growth equilibria are globally,stable under the neoclassical hypotheses.
Buy this book on publisher's site; Personalised recommendations. Cite by: Simple Keynesian Model. National Income Determination Two-Sector National Income Optimal capital accumulation and external indebtedness in a two sector small economy model book 1.
Outline. Macroeconomics  Exogenous & Endogenous Variables  Linear Functions  Aggregate Demand & Supply  National Income Determination Model OR Simple Keynesian Model  2 Outline. National Income Identities . Economics Stack Exchange is a question and answer site for those who study, teach, research and apply economics and econometrics.
Multiplier in the two-sector Keynesian model. Ask Question Asked 4 years, 11 months ago. Active 2 years, 1 month ago. Deriving formulas from Gali's book on the New Keynesian model.
The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction.
The circular flow analysis is the basis of national accounts and hence of macroeconomics. On a Two-Sector Model oEconomiic Growth 1. In the present paper we are interested in the growth process in a two-sector model of capital accumulation and slhow that balanccd grox\th equilibria are globally stable under the neoclassical hypotheses.
The neoclassical model ol economic growth, as it has been developed by Solow . 4 | Willis Re Standard & Poor’s Economic Capital Model Review Promises Capital Rewards The review outcome: The M-factor The most visible outcome of the ECM review is the ‘M-factor’, which measures the level of credibility of an insurer’s ECM inFile Size: KB.
Back. Amano () "A Further Note on Professor Uzawa's Two-Sector Model of Economic Growth", Review of Economic Studies, Vol.
31, p E. Burmeister () "The Role of the Jacobian Determinant in the Two-Sector Model", International Economic Review, Vol. 9 (2), p E. Burmeister and A.R.
Dobell () Mathematical Theories of Economic Growth. the external debt issue in emerging and countries and countries with low income due to their dependency on foreign capital investment (see Krugman, ; Clements et al., ; Schclarek, ). The research addresses the issue of the latest accumulation of public debt and its direct impact on economic conditions in the short run within the Size: KB.
Downloadable. Sovereign debt crises are associated with large and persistent declines in economic activity, disproportionately so for nontradable sectors.
This paper documents this pattern using Spanish data and builds a two-sector dynamic quantitative model of sovereign default with capital accumulation. Recessions are very persistent in the model and more pronounced for nontraded sectors.
2 Thus, the model presented here is an extension of the aggregate models of Solow and Swan ( and ) to the two-sector economy. It is a slightly different version of Meade's two-product economy without technical progress (see , Appendix II, pp.
The structure of a similar two-sector growth model. The paper employs a quantitative two-sector model of a small open economy with financial frictions calibrated to Mexican and Turkish economies, two major recipients, whose remittance receipts feature opposite cyclical characteristics.
We find that remittances dampen the business cycles in Mexico, whereas they amplify the cycles in Turkey. stability are small for a small degree of price stickiness. In a two-sector version of our model, in which durable price movements can directly affect the ability of borrowing, the optimal volatility of (non-durable) inflation is more sizeable.
In our context, and relative to simple Taylor rules, the. Stochastic optimal growth involves the study of optimal intertemporal alloca-tion of capital and consumption in an economy where production is subject to random disturbances. The theory traces its roots to the seminal work on de-terministic optimal growth by.
Downloadable (with restrictions). Sovereign debt crises are associated with large and persistent declines in economic activity, disproportionately so for nontradable sectors. This paper documents this pattern using Spanish data and builds a two-sector, dynamic quantitative model of sovereign default with capital accumulation.
Recessions are very persistent in the model and more pronounced for Cited by: 2. economy in which interest rates are kept artificially low, when governments borrow domestically, they use up domestic private saving which have been available for private sector, hence the cost of private credit will be high reducing private investment demand, ensuing capital accumulation and growth to deteriorate.
The Accumulation of Capital, probably the best book produced by a Marxist and socialist thinker since Karl Marx’s opus magnum, emerged from her sudden revelation. Until January Rosa Luxemburg was an ortho-dox follower of Marx, believing that political economy had found its ‘crowning achievement’ in Das Kapital and may be perfected by his.
Unpaid Work, the Millennium Development Goals, and Capital Accumulation Notes for a presentation Diane Elson Levy Economics Institute Introduction The MDGs themselves do not include any mention of work, neither paid or unpaid.
There are, however, two MDG indicators that refer to paid work: 1. A small open economy with perfect capital mobility is characterized by all of the following except that: A. its domestic interest rate always exceeds the world interest rate.
it engages in international trade. its net capital outflows always equal the trade balance. its government does not impede international borrowing or lending.
If the firm must issue new stock, what is its cost of new external equity. Suppose Firm A plans to retain $ million of earnings for the year. It wants to finance its capital budget using a target capital structure of 46% debt, 3% preferred, and 51% common equity. 7 c. Miller model (with corporate and personal taxes) – MM3 () T c: the corporate tax rate T s: personal tax rate on income from stocks (div.
and capital gain) T d: personal tax rate on income from debt Ex: If T c =40%, T s =20%, and T d =30%, then (1) If T c =T s =T d =0 original MM model (without taxes) (2) If T s =T d =0 MM model with.
The two-sector Keynesian model is the simplest representation of the key principles of Keynesian economics. It is commonly termed the basic or private sector Keynesian model because it (1) captures the basic essence of Keynesian economics and (2) includes only the two private sectors--household and business.
This variation is typically used in. equivalence of these two sides of the Model I economy in the table below. The left hand column shows that total expenditures in the economy are equal to National Product; the right hand column shows that the incomes of the two factors of production add up to National Income.
Comparing the two totals, we see that National Product equals National. For a wide class of infinitely lived agent models, Chamley has shown that the optimal capital income tax rate is zero in the long run.
Lucas has argued that for the U.S. economy, there is a significant welfare gain from switching to this policy. This paper shows that for the Bewley class of models with incomplete insurance markets and borrowing constraints, the optimal tax rate on capital Cited by: tivity.
In our model economy, optimal capital reallocation is distorted by two frictions. First, collateralized borrowing constraints limit the investment undertaken by small –rms with relatively high productivity. Second, speci–city in –rm-level capital implies partial investment irreversibil-ities Cited by: The Size Distribution of Firms in an Economy with Fixed and Entry Costs separate technology determines capital accumulation.
The production function for new capital depends on labor and existing capital that is not in use for the production of Þnal goods. It exhibits constant returns to scale and must be su ﬃciently productive. Title: Souces of Debt Accumulation in a Small Open Economy - WP/97/ Created Date: 11/11/ PM.
With η exogenous, moving to a lower steady-state capital-labour ratio would enable a higher steady-state consumption per head.3 In this sense, i Cited by:. Answer: The Soviet model of development achieved pdf growth through capital accumulation, structural change, and increased literacy, to However, this rapid growth came at the expense of stagnant consumption, slow food production growth, and the deaths of about 5 million people during forcible collectivization.Optimal capital income taxation with download pdf markets, borrowing constraints, and constant discounting.
S. Aiyagari. NoWorking Papers from Federal Reserve Bank of Minneapolis. Abstract: For a wide class of dynamic models, Chamley () has shown that the optimal capital income tax rate is zero in the long run.
Lucas () has argued Cited by: ebook This paper describes and ebook two processes for assessing and assigning cost of capital in the public sector: that for Departments under the Capital Charge process and that recommended for SOEs.
The processes are similar in the sense of using private sector type technology, and in particular the Capital Asset Pricing : Martin Lally.