Long-Run Effects of Monetary Expansion in a Two-Sector Model of Endogenous Growth

1997 ◽  
Vol 19 (4) ◽  
pp. 635-655 ◽  
Author(s):  
Kazuo Mino
Keyword(s):  
Endogenous Growth ◽  
Monetary Expansion ◽  
Sector Model ◽  
Long Run

Open Door System and Endogenous Growth in Indian Economy: An Empirical Analysis on the Role of Human Capital and R&D in Explaining Industrial Productivity

2021 ◽  
Vol 46 (1) ◽  
pp. 24-37
Author(s):  
Arjun K. ◽  
Sanjay Kumar ◽  
A. Sankaran ◽  
Mousumi Das
Keyword(s):  
Human Capital ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Endogenous Growth ◽  
Value Added ◽  
Capital Formation ◽  
Knowledge Capital ◽  
Test Technique ◽  
Long Run ◽  
The Impact

The present study investigates the impact of human capital, knowledge capital which is a function of human capital, and real exchange rate scenario in explaining long-run industrial total factor productivity (TFP) from 1980 to 2015 on the theoretical basis of the open endogenous growth model. The variables employed in the contemporary study include manufacturing value added (MNVA) as industrial output measure, gross fixed capital formation (GFCF) as a measure of capital and labour input which is measured using employment data. Gross enrolment ratio (GER) is taken as a measure for human capital formation, expenditure on research and development (R&D) as a proxy for knowledge capital, and real exchange rate indicates global economic shocks. The study involves estimating TFP for Industrial Sector during the post-liberalization period by employing Cobb-Douglas production function. The ARDL bounds test technique for cointegration revealed long-run relation among the varying factors studied. The Toda-Yamamoto causality test concluded bi-directional causality running between, R&D expenditure and Industrial TFP which sends a strong signal to the policymakers for a well-framed long-term integrated approach for human & knowledge capital formation which will act as a strong impetus for manufacturing firms to come up in terms of augmenting production and productivity and expanding foreign market horizon. JEL Classification: D24, E2, J24

A NOTE ON INFLATION, ECONOMIC GROWTH, AND INCOME INEQUALITY

2009 ◽  
Vol 13 (1) ◽  
pp. 138-147 ◽  
Author(s):  
Yi Jin
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Income Inequality ◽  
Endogenous Growth ◽  
Money Growth ◽  
Relative Importance ◽  
Long Run ◽  
Endogenous Growth Model ◽  
The Relationship ◽  
Negative Growth

This paper develops a monetary endogenous growth model with capital and skill heterogeneity to analyze the relationship among inflation, growth, and income inequality. In the model inflation, growth, and inequality are jointly determined. We show that an increase in the long-run money growth rate raises inflation and reduces growth, but its effect on income inequality depends on the relative importance of the two types of heterogeneity. Inequality shrinks with the rise of inflation when capital heterogeneity dominates and enlarges when skill heterogeneity dominates. Therefore, our model supports a negative (positive) inflation–inequality relationship and a positive (negative) growth–inequality relationship when capital (skill) heterogeneity dominates. In any event, inflation and growth are negatively related.

scholarly journals The Long-Run Superneutrality of Money Revised: the Extended European Evidence

2016 ◽  
Vol 16 (3) ◽  
pp. 187-203 ◽  
Author(s):  
Oleg Deev ◽  
Martin Hodula
Keyword(s):  
Endogenous Growth ◽  
Output Growth ◽  
Real Output ◽  
Vector Autoregressive ◽  
Additional Hypothesis ◽  
Long Run ◽  
Large Panel ◽  
European Economies ◽  
Structural Vector

Abstract This article investigates the validity of the money superneutrality concept for the large panel of European economies. While focusing exclusively on endogenous growth theories including the Mundell-Tobin effect, we examine the long-run response of real output to a permanent inflation shock in every studied country using a structural vector autoregressive framework. For the majority of countries in our sample, the longrun superneutrality concept is confirmed since the original increase/decrease in output growth fades in time. We also test the additional hypothesis of whether the group of countries with smaller in-sample inflation mean forms the exception to the long-run money superneutrality. As the result, modern economies might be better described from the viewpoint of Sidrauski.

Nuclear power generation, renewable resources and endogenous growth

2012 ◽  
pp. 65-93
Author(s):  
Riccardo Costantini
Keyword(s):  
Radioactive Waste ◽  
Endogenous Growth ◽  
Nuclear Power ◽  
Power Plants ◽  
Preference Relation ◽  
Learning By Doing ◽  
Environmental Literature ◽  
Long Run ◽  
Simplifying Assumptions ◽  
The Impact

The author develops an endogenous growth framework in which energy production is based on a learning by doing technology exploiting renewable reproducible capital and nuclear power plants. Consumption activities generates radioactive waste according to an exogenous factor reflecting the economy energy mix, while an abatement technology, reducing the impact of solid waste accumulation on welfare, is explicitly taken into account. Differently from traditional growth and environmental literature, the author includes an explicit preference for the technology mix by postulating a non separable utility in consumption, radioactive waste and stock of renewable capital. Within this framework the author derives conditions on preferences under which sustained growth is attainable without imposing, ex ante, neither compensation nor a distaste effect characterizing utility. Finally, introducing simplifying assumptions on the preference relation, an investigation of the dynamic property of the equilibrium is provided. The results obtained suggest a high complementarity of renewable capital and nuclear technology exploitation in determining potential long run growth.

scholarly journals Global Economic Meltdown: Greenspan�s Legacy

2009 ◽  
Vol 34 (3) ◽  
pp. 9-14 ◽  
Author(s):  
Samir K Barua ◽  
Mahendra R Gujarathi
Keyword(s):  
Risk Taking ◽  
World Economy ◽  
Fair Value ◽  
Fair Value Accounting ◽  
Cautionary Note ◽  
Monetary Expansion ◽  
The Great Depression ◽  
Long Run ◽  
The World ◽  
Insight Into

In the event of statedly the deepest global crisis ever since the Great Depression, with the world economy mired in a severe economic meltdown, Samir K Barua and Mahendra R Gujarathi identify the factors and the players that incubated and nurtured the meltdown. The policies of deregulation, monetary expansion, and fair value accounting are specifically addressed in a historical perspective. The authors offer an insight into how sequentially the lawmakers first created the potent environment for risk-taking through unrestrained deregulation, the Federal Reserve then set the stage for the crisis with a policy of unbridled monetary expansion, and the accounting standardsetter finally relaxed norms to provide support for hiding the losses incurred� thus together fuelling the crisis. Although several trillions of dollars have been pumped into the market to maintain the credit flow, it is yet uncertain as to how the crisis will impact in the long run, the authors conclude on a cautionary note.

scholarly journals A two-sector model of endogenous growth with leisure externalities

2013 ◽  
Vol 148 (2) ◽  
pp. 843-857 ◽  
Author(s):  
Costas Azariadis ◽  
Been-Lon Chen ◽  
Chia-Hui Lu ◽  
Yin-Chi Wang
Keyword(s):  
Endogenous Growth ◽  
Sector Model

EQUILIBRIUM DYNAMICS IN AN ENDOGENOUS GROWTH MODEL WITH HABIT FORMATION AND ELASTIC LABOR SUPPLY

2013 ◽  
Vol 19 (3) ◽  
pp. 618-642 ◽  
Author(s):  
Manuel A. Gómez
Keyword(s):  
Phase Diagram ◽  
Labor Supply ◽  
Endogenous Growth ◽  
Growth Model ◽  
Habit Formation ◽  
Global Dynamics ◽  
Long Run ◽  
Endogenous Growth Model ◽  
Elastic Labor Supply ◽  
Diagram Analysis

This paper analyzes the dynamics of an endogenous growth model with external habit formation and elastic labor supply. We first derive the conditions for the existence, uniqueness, and saddlepath stability of a feasible steady state with positive long-run growth. The global dynamics of the economy are characterized by phase-diagram analysis. Then we characterize the comparative static effects of shocks in preferences and production parameters analytically. The comparative dynamic effects of the shocks are characterized by phase-diagram analysis.

Sign in / Sign up

Export Citation Format

Share Document