scholarly journals Macroeconomic and distributional effects of demographic change in an open economy—the case of Belgium

2020 ◽  
Vol 86 (1) ◽  
pp. 87-124
Author(s):  
Willem Devriendt ◽  
Freddy Heylen
Keyword(s):  
Open Economy ◽  
Demographic Change ◽  
Capital Investment ◽  
Physical Capital ◽  
Investment Model ◽  
Overlapping Generations Model ◽  
Endogenous Variables ◽  
Working Age ◽  
Negative Effect ◽  
Per Capita

AbstractWe construct and parameterize an overlapping generations model for an open economy with individuals who differ in innate ability. Key endogenous variables are hours worked, investment in human and physical capital, and per capita growth. The model replicates important data in Belgium since 1960 remarkably well. Simulating it, we observe that behavioral adjustments by households and firms contribute to reverse the negative arithmetical effect of future demographic change on per capita growth. Individuals work and study more. However, with unchanged policies, there remains a net negative effect on annual per capita growth of almost 0.3%-points on average in the next 25 years. This is mainly due to adverse consequences of reduced fertility and a declining working-age population on (the return to) physical capital investment. Model projections also point to rising income inequality induced by demographic change. Differences in the capacity of individuals to respond to increasing life expectancy by investing in education, and by saving, are key.

Empirical Analysis on Sustainable Development of Xi'an

2011 ◽  
Vol 368-373 ◽  
pp. 2027-2030
Author(s):  
Xu Guang Wang ◽  
Tao Zhou ◽  
Shu Hua Gao
Keyword(s):  
Sustainable Development ◽  
Capital Investment ◽  
Statistical Data ◽  
Physical Capital ◽  
Capital Allocation ◽  
Contribution Rate ◽  
The Sustainable Development ◽  
Technological Advances ◽  
Result Show ◽  
Negative Effect

The sustainable development of Xi’an was analyzed based on statistical data from 1996—2008 using economic theory to find the principle factors influencing the development of Xi’an and to identify the formula of contribution rate to the growth of Xi’an by each factors. The regression analysis is used to obtain the value of contribute rate. The result show that the largest contribution is from accumulation of physical capital, and the contribution from technological advances is increasing year by year. The labor factor and human capital investment make little contribution to Xi’an growth. Capital allocation and scale economic do negative effect to economic growth.

scholarly journals ON THE (NONMONOTONIC) RELATION BETWEEN ECONOMIC GROWTH AND FINANCE

2018 ◽  
Vol 24 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Alberto Bucci ◽  
Simone Marsiglio ◽  
Catherine Prettner
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Capital Investment ◽  
Nonlinear Models ◽  
Physical Capital ◽  
Long Run ◽  
Financial Depth ◽  
Short Run ◽  
Per Capita

We analyze the simplest possible model of endogenous growth to account for the role of financial development. In our setting, financial development affects productivity and determines the amount of resources subtracted to capital investment. We show that under very general assumptions, the relation between economic growth and financial depth is nonmonotonic, and eventually bell-shaped. We empirically assess our results in a framework that allows to distinguish between long-run and short-run effects. We establish a cointegrating relation and derive the long-run elasticities of per capita gross domestic product (GDP) with respect to employment, the physical capital stock, and financial depth–relying on linear as well as nonlinear models for the finance-growth nexus. We employ the results of the first step estimation to specify an error–correction model and find that there is strong evidence for a nonlinear relationship between financial depth and per capita GDP, consistently with what was predicted by our theoretical model.

Solar Renewable Energy Credit Price Volatility and Investment Returns: Have Policies Stranded Capital Investment?

Commonwealth ◽  
2017 ◽  
Vol 19 (1) ◽  
Author(s):  
Somayeh Youssefi ◽  
Patrick L. Gurian
Keyword(s):  
Solar Energy ◽  
Capital Investment ◽  
Supply And Demand ◽  
Price Volatility ◽  
The United States ◽  
Investment Model ◽  
Capital Investments ◽  
Demand Model ◽  
Market Prices ◽  
Investment Returns

Pennsylvania is one of a number of U.S. states that provide incentives for the generation of electricity by solar energy through Solar Renewal Energy Credits (SRECs). This article develops a return on investment model for solar energy generation in the PJM (mid-­Atlantic) region of the United States. Model results indicate that SREC values of roughly $150 are needed for residential scale systems to break even over a 25-­year project period at 3% interest. Market prices for SRECs in Pennsylvania have been well below this range from late 2011 through the first half of 2016, indicating that previous capital investments in solar generation have been stranded as a result of steep declines in the value of SRECs. A simple conceptual supply and demand model is developed to explain the sharp decline in market prices for SRECs. Also discussed is a possible policy remedy that would add unsold SRECs in a given year to the SREC quota for the subsequent year.

A Dynamic Investment Model with Profit-Sharing in an Interest-Free Economy

1991 ◽  
Vol 8 (1) ◽  
pp. 109-127
Author(s):  
Zaidi Sattar
Keyword(s):  
Optimal Investment ◽  
Integrated Approach ◽  
Building Blocks ◽  
Profit Sharing ◽  
Comparative Statics ◽  
Investment Model ◽  
Financial Contracts ◽  
Endogenous Variables ◽  
Rate Of Profit ◽  
Component Models

The present paper is a contribution to the building blocks of an investmentmodel within the framework of an integrated macroeconomic model of anIslamic economy. Investment behavior in the model is guided by an Islamicethicalvalue system and profit-sharing financial contracts. The typical firm’sinvestment decision is believed to emerge from a dynamic inter-temporalmaximization exercise within an infinite time horizon. The method of Calculusof Variations is applied to arrive at the optimal investment and employmentcriteria for the firm. The result is then incorporated into a macroeconomicmodel to study the behavior of key endogenous variables like national incomeand the rate of profit-share. Comparative statics exercised within a generalequilibrium framework reveal the potency of monetary policy but the neutralityof fiscal policy with respect to output and employment.IntroductionThe past decade has witnessed a tremendous outpouring of interest aswell as effort in the formalization of economic models based on profit-sharingfinancial arrangements as an Islamic alternative to the conventional interestbasedeconomic system. Several macroeconomic models for interest-freeeconomies have been proposed (Anwar 1987; Habibi 1987; Metwally 1981& 1983). The rigor of an integrated approach to such macroeconomic modelhgdepends on the rigor of the component models, namely, the consumption,investment, monetary, and fiscal relationships. Economists have writtenextensively on different aspects of consumer behavior in Islamic societies.Kahf (1978) and Khan (1984), among others, have contributed to the conceptualand analytical formulation of the consumption function under ...

The Quantification of Structural Reforms in OECD Countries

2018 ◽  
Author(s):  
Balázs Égert ◽  
Peter Gal
Keyword(s):  
Product Market ◽  
Physical Capital ◽  
Oecd Countries ◽  
Market Regulation ◽  
Structural Reforms ◽  
Long Term Effects ◽  
Per Capita ◽  
Product Market Regulation ◽  
The Impact

This chapter describes and discusses a new supply-side framework that quantifies the impact of structural reforms on per capita income in OECD countries. It presents the overall macroeconomic impacts of reforms by aggregating over the effects on physical capital, employment, and productivity through a production function. On the basis of reforms defined as observed changes in policies, the chapter finds that product market regulation has the largest overall single policy impact five years after the reforms. But the combined impact of all labour market policies is considerably larger than that of product market regulation. The paper also shows that policy impacts can differ at different horizons. The overall long-term effects on GDP per capita of policies transiting through capital deepening can be considerably larger than the five- to ten-year impacts. By contrast, the long-term impact of policies coming only via the employment rate channel materializes at a shorter horizon.

scholarly journals How Earmarking Government Revenue Affects Efficiency of Road Construction and Maintenance

2021 ◽  
Vol 49 (1) ◽  
pp. 136-163
Author(s):  
Ramon Christen ◽  
Nils C. Soguel
Keyword(s):  
Public Choice ◽  
Public Administration ◽  
Stochastic Frontier ◽  
Road Construction ◽  
Transport Infrastructure ◽  
Government Revenue ◽  
Stochastic Frontier Model ◽  
Public Resources ◽  
Negative Effect ◽  
Per Capita

It is common practice to assign revenue to accomplish specific governmental tasks in general and to provide transport infrastructure in particular. However, neither the literature in public administration nor in public choice has reached a consensus about the effects that earmarking has on efficiency. Building on earlier public choice models, we argue that this mechanism prevents budget debates from occurring and reduces the incentives for ministers to monitor the colleagues whose budgets are financed by earmarked revenues. These latter tend to overuse public resources, thus increasing inefficiency. A stochastic frontier model fed with data from Swiss cantonal ministries of transport from 2000 to 2016 tests this hypothesis. The results reveal a negative effect of earmarking on efficiency. For every 1,000 additional Swiss francs per capita financed out of an earmarked fund, the input requirement increases by 5.4 percent on average.

scholarly journals FAKTOR INTERNAL YANG BERPENGARUH TERHADAP KINERJA REKSADANA SYARIAH DI INDONESIA PERIODE 2014-20171)

2020 ◽  
Vol 6 (1) ◽  
pp. 114
Author(s):  
Farah Faadilah ◽  
Puji Sucia Sukmaningrum
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Coefficient Of Determination ◽  
Expense Ratio ◽  
Turnover Ratio ◽  
Equity Funds ◽  
Endogenous Variables ◽  
Negative Effect ◽  
Fund Size ◽  
Positive Effect

This study aims to determine the effect of fund size, expense ratio and turnover ratio. The data used in this research is the net asset value data and shariah mutual fund prospectus of 4 shariah equity funds for the period 2014-2017. This study describes using multiple linear regression test to prove the relationship between exogenous and endogenous variables. The result of the test shows that partially fund size and positive effect is not significant on the performance of Islamic stock mutual funds, the expense ratio has no significant negative effect on the performance of Islamic equity mutual funds, while the turnover ratio has a significant positive effect on the performance of sharia mutual funds. While simultaneously fund size, expense ratio and turnover ratio have a significant influence with the coefficient of determination of 25,06%% while the remaining 74,94%  influenced by other variables not included in this study.Keywords: Sharia Mutual Funds Performance, Turnover Ratio, Cash Flow, Expense Ratio

scholarly journals LOCAL TAXES IN THE FUNCTION OF LOCAL ECONOMIC DEVELOPMENT - MUNICIPALITY OF PRIZREN

2019 ◽  
Vol 31 (5) ◽  
pp. 1397-1401
Author(s):  
Qëndrim Susuri
Keyword(s):  
Economic Development ◽  
Local Government ◽  
Capital Investment ◽  
Local Economic Development ◽  
Tourism Development ◽  
Business Environment ◽  
Local Taxes ◽  
Negative Feature ◽  
Negative Effect ◽  
Business Tax

Taxes have a role in the implementation of economic and social objectives by local government to create a favorable business environment . The Municipality of Prizren has about 5,200 open businesses that carry out their activity within the territory of the municipality and with their taxes fill the budget budget of the municipality. Revenues that the municipality generates through businesses places them in function of local economic development indirectly by helping businesses to create an environment suitable for local businesses. One negative feature that has been noted during this research is that businesses registered in Prizren municipality are plagued by large businesses who are registered in other cities of Kosovo because they do not pay the business tax in the municipality of Prizren and this at the same time has a negative effect on local businesses as they are subject to tax on the firm while businesses registered from other cities do not pay this tax when the revenues from the firms' taxes in the municipality of Prizren are quite high. Municipality of Prizren is not helping businesses to develop the economy through tourism. During 2018 it has allocated subsidies to businesses that promote and influence tourism development only 5,000.00 Euros. While the expenditures allocated to the Capital Investment category in the Directorate of Tourism are realized only 13% of the allocated revenues.

scholarly journals Export Contribution of Micro, Small and Medium Enterprises to GDP Per capita in Indonesia

2021 ◽  
Vol 4 (3) ◽  
pp. p11
Author(s):  
Deddy Tri Harjanto ◽  
Cicih Ratnasih ◽  
Yolanda Yolanda
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Research Method ◽  
Inverse Relationship ◽  
Small And Medium Enterprises ◽  
Gdp Per Capita ◽  
Negative Effect ◽  
Per Capita ◽  
The Exchange Rate ◽  
Medium Enterprises

This study will determine how much the influence of the exchange rate, the number of MSMEs, investment, credit, and inflation on MSME exports nationally, and how they contribute to GDP per capita. The research method uses multiple regression with data transformation ln. The results of the study consist of model 1, the exchange rate factor, the number of MSMEs, investment, credit, and inflation are variables that influence increasing the number of product exports produced from the MSME sector. In the second model, the contribution of MSME exports to GDP per capita. The results showed that of all significant positive variables and one significant negative variable. The investment required in Indonesia, whose number continues to increase yearly, affects the high number of products exports from the MSME sector. For this reason, investment factors must continue to be considered to increase MSME exports. In contrast, the contribution of the inflation variable has a significant negative effect, which is an inverse relationship to MSME exports. It is predicted that if inflation is low, MSME exports will increase, and vice versa if inflation is high, MSME exports will decline. Furthermore, model 2 shows that MSME exports significantly contribute to gross domestic product per capita. In this case, the ups and downs of Micro, Small, and Medium Enterprises' exports need special attention.

Step Change Transformation of Legacy Rigs to Autonomous Drilling Rigs

2021 ◽  
Author(s):  
Sergey Ziatdinov ◽  
Titto Thomas Philip
Keyword(s):  
Capital Investment ◽  
Business Performance ◽  
High Performance ◽  
Human Error ◽  
Oil And Gas ◽  
Business Environment ◽  
The Past ◽  
Automation Systems ◽  
Negative Effect ◽  
Drilling Rigs

Abstract During the past decade, drilling automation systems have been an attractive target for a lot of operating and drilling companies. Despite progress in automation in various industries, like mining and downstream, the drilling industry has lagged far behind in the real application of autonomous technologies implementation. This can be attributed to harsh environment, high level of uncertainty in input data, and that majority of stock is legacy drilling rigs, resulting in capital intensive implementations. In the past years there have been several attempts to create fully automated rigs, that includes surface automation and drilling automation. Such solutions are very attractive, because they allow people to move out of hazardous zones and, at the same time, improve performance. However, the main deficiency of such an approach is the very high capital investment required for development of highly bespoke rigs (Slagmulder 2016). And in the current business environment, with high volatility in oil and gas prices, plus the huge negative effect of the Covid-19 crisis on the world's economic situation, it would be hard to imagine that there are a lot of companies willing to make such a risky investment. In addition to this, due to the lack of demand, the market is full of relatively new, high-performance rigs. Taking all these into account, the obvious question is whether it makes sense to invest money and time into the development of drilling automation. The answer should be yes, for three substantial reasons:Automation improves personal safety, by moving people out of danger zones;Automation improves process safety, by transferring execution from person to machine, which reduces the risk of human error;Automation improves efficiency by bringing consistency to drilling and through the use of self-learning algorithms, which allow machines to drill each successive well better than the previous. This paper will not look into surface automation, such as pipe-handling, chemical and mud handling on site. The paper is focused on the subsurface, namely on the drilling automation process, the challenges that need to be overcome to deploy a vendor agnostic system on a majority of existing rigs. A vendor agnostic system is a modification of an operator's autonomous drilling system (Rassenfoss 2011), designed to use existing rigs, BHAs, and have minimum footprint on the rigs for operational use. A vendor agnostic system will increase adoption of automated technologies and further drive improvements in operational and business performance

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