scholarly journals HABIT FORMATION, DYNASTIC ALTRUISM, AND POPULATION DYNAMICS

2010 ◽  
Vol 15 (3) ◽  
pp. 365-397 ◽  
Author(s):  
Andreas Schäfer ◽  
Simone Valente
Keyword(s):  
Overlapping Generations ◽  
Habit Formation ◽  
Growth Models ◽  
Endogenous Fertility ◽  
Neoclassical Model ◽  
Critical Interval ◽  
Developed Economies ◽  
Positive Growth ◽  
Per Capita ◽  
Second Period

We study the general equilibrium properties of two growth models with overlapping generations, habit formation, and endogenous fertility. In the neoclassical model, habits modify the economy's growth rate and generate transitional dynamics in fertility; stationary income per capita is associated with either increasing or decreasing population and output, depending on the strength of habits. In the AK specification, growing population and increasing consumption per capita require that the habit coefficient lie within definite boundaries; outside the critical interval, positive growth is associated with either declining consumption due to overcrowding, or extinction paths with declining population. In both frameworks, habits reduce fertility: the trade-off between second-period consumption and spending for bequests prompts agents to decrease fertility in order to make parental altruism less costly. This mechanism suggests that status-dependent preferences may explain part of the decline in fertility rates observed in most developed economies.

EXPLORING FAIR AND AMBITIOUS MITIGATION CONTRIBUTIONS OF ASIAN ECONOMIES FOR THE GLOBAL WARMING LIMIT UNDER THE PARIS AGREEMENT

2021 ◽  
Author(s):  
XINRU LI ◽  
XUEMEI JIANG ◽  
YAN XIA
Keyword(s):  
Developing Economies ◽  
Paris Agreement ◽  
Low Carbon ◽  
Developed Economies ◽  
Asian Economies ◽  
Zero Carbon ◽  
Nationally Determined Contributions ◽  
Emission Quotas ◽  
Per Capita ◽  
The Ideal

Focusing on the mitigation responsibilities and efforts, this paper provides a unified estimation of allowable emission quotas for a number of Asian economies to limit the global temperature rise well below 2°C based on a range of effort-sharing approaches. The study also explores the inconsistency between their planned emission pathways under the Nationally Determined Contributions (NDCs) and the allowable emissions to achieve the 2°C target. The results show that most of the Asian developing economies would be in favor of the Equal-Per-Capita and Grandfather criteria, for which they would obtain more allowable emissions quota. However, even with the most favorable criterion, official mitigation pledges represented by NDCs are far less enough for these developing Asian economies such as China, India, Vietnam, Thailand and Pakistan, as their emission pathways under NDCs significantly exceed the ideal pathways under all effort-sharing approaches. In contrast, most of the Asian developed economies have already planned reductions of annual CO2 emissions under NDCs, in line with their ideal pathways under the most favorable effort-sharing approach. However, their reductions of emissions require deep strengthening of deployment in low-carbon, zero-carbon and negative-carbon techniques, given the current growing trend of emissions for these economies.

scholarly journals The pattern, sources, and growth of remittances to Pakistan: The kinked exponential approach

2020 ◽  
Vol 2 (1) ◽  
pp. 1-6
Author(s):  
Syed Rashid Ali
Keyword(s):  
Saudi Arabia ◽  
Exponential Model ◽  
Phase Iii ◽  
Growth Phases ◽  
The Third ◽  
Gulf Countries ◽  
Positive Growth ◽  
The Uk ◽  
Second Period ◽  
Negative Growth

This paper examines the pattern, sources and growth of remittances to Pakistan. It analyses the growing trend of remittances and share of remittances to GDP over the period 1972-2014. We use the kinked exponential model (Boyce, 1986, 1987) to estimates the growing trend of remittances in Pakistan. The results show that remittances received by Pakistan have three distinct growth phases over the study period – Phase I (1973 – 1983), Phase II (1984 – 2000) and Phase III (2001 – 2014). The remittances received by Pakistan have positive growth during the first and the third period while the second period shows negative growth. Before globalization, the UK was the major source of remittances to Pakistan but after globalization, the sources of remittances to Pakistan have been cantered on Saudi Arabia, the UAE, and other Gulf countries.

scholarly journals On The Relation Between Regulation And Economic Growth

2012 ◽  
Vol 11 (2) ◽  
pp. 147
Author(s):  
Atul A. Dar ◽  
Sal AmirKhalkhali
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Developed Economies ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
The World Bank ◽  
Quality Scale ◽  
Positive Growth ◽  
Accounting Model

This paper examines the relation between regulation and economic performance in the context of 23 developed economies. We apply a generalisation of the growth accounting model popularized by Solow to data over the 2002-2008 period. In the model, we assume that regulatory quality impacts on growth via its impact on total factor productivity growth. We look at three measures of regulatory quality, all of which are based on the set of governance indicators developed by the World Bank. The model is estimated using a fixed effects as well as a random effects estimation strategy. Our findings do lend support for the view that the better the quality of regulation, the higher rate of economic growth, but find no support for the view that the strength of the positive growth impact is stronger for countries that rank relatively lower on the regulatory quality scale.

scholarly journals Involuntary Unemployment in a Neoclassical Model

2020 ◽  
Vol 65 (2) ◽  
pp. 12-28
Author(s):  
Yasuhito Tanaka
Keyword(s):  
Wage Rate ◽  
Utility Maximization ◽  
Overlapping Generations ◽  
Monopolistic Competition ◽  
Returns To Scale ◽  
Profit Maximization ◽  
Nominal Wage ◽  
Olg Model ◽  
Neoclassical Model ◽  
Involuntary Unemployment

AbstractWe show the existence of involuntary unemployment without assuming wage rigidity using a neoclassical model of consumption and production. We consider a case of indivisible labor supply and increasing returns to scale under monopolistic competition. We derive involuntary unemployment by considering utility maximization of consumers and profit maximization of firms in an overlapping generations (OLG) model with two or three generations. In a two-periods OLG model it is possible that a reduction of the nominal wage rate reduces unemployment. However, if we consider a three-periods OLG model including a childhood period, a reduction of the nominal wage rate does not necessarily reduce unemployment.

scholarly journals A continuum of biological adaptations to environmental fluctuation

2019 ◽  
Vol 286 (1912) ◽  
pp. 20191623 ◽  
Author(s):  
Ming Liu ◽  
Dustin R. Rubenstein ◽  
Wei-Chung Liu ◽  
Sheng-Feng Shen
Keyword(s):  
Overlapping Generations ◽  
Bet Hedging ◽  
Environmental Fluctuation ◽  
Infinite Population ◽  
Biological Adaptation ◽  
Hedging Strategies ◽  
Wide Range ◽  
Population Sizes ◽  
Environmental Unpredictability ◽  
Per Capita

Bet-hedging—a strategy that reduces fitness variance at the expense of lower mean fitness among different generations—is thought to evolve as a biological adaptation to environmental unpredictability. Despite widespread use of the bet-hedging concept, most theoretical treatments have largely made unrealistic demographic assumptions, such as non-overlapping generations and fixed or infinite population sizes. Here, we extend the concept to consider overlapping generations by defining bet-hedging as a strategy with lower variance and mean per capita growth rate across different environments. We also define an opposing strategy—the rising-tide—that has higher mean but also higher variance in per capita growth. These alternative strategies lie along a continuum of biological adaptions to environmental fluctuation. Using stochastic Lotka–Volterra models to explore the evolution of the rising-tide versus bet-hedging strategies, we show that both the mean environmental conditions and the temporal scales of their fluctuations, as well as whether population dynamics are discrete or continuous, are crucial in shaping the type of strategy that evolves in fluctuating environments. Our model demonstrates that there are likely to be a wide range of ways that organisms with overlapping generations respond to environmental unpredictability beyond the classic bet-hedging concept.

scholarly journals AUTOMATION, STAGNATION, AND THE IMPLICATIONS OF A ROBOT TAX

2020 ◽  
pp. 1-32 ◽  
Author(s):  
Emanuel Gasteiger ◽  
Klaus Prettner
Keyword(s):  
Steady State ◽  
Economic Impact ◽  
Technological Progress ◽  
Overlapping Generations ◽  
Investment Decisions ◽  
Cautionary Tale ◽  
Overlapping Generations Model ◽  
Long Run ◽  
Per Capita ◽  
Capita Output

We assess the long-run growth effects of automation in the overlapping generations framework. Although automation implies constant returns to capital and, thus, an AK production side of the economy, positive long-run growth does not emerge. The reason is that automation suppresses wage income, which is the only source of investment in the overlapping generations model. Our result stands in sharp contrast to the representative agent setting with automation, where sustained long-run growth is possible even without technological progress. Our analysis therefore provides a cautionary tale that the underlying modeling structure of saving/investment decisions matters for the derived economic impact of automation. In addition, we show that a robot tax has the potential to raise per capita output and welfare at the steady state. However, it cannot induce a takeoff toward positive long-run growth.

Introduction: Enterprise and State in the Italian “Economic Miracle”

2000 ◽  
Vol 1 (2) ◽  
pp. 241-248 ◽  
Author(s):  
Steven W. Tolliday
Keyword(s):  
Gross Domestic Product ◽  
Public Debt ◽  
Gross National Product ◽  
Historical Perspective ◽  
Gdp Per Capita ◽  
Italian Economy ◽  
Economic Miracle ◽  
Developed Economies ◽  
Per Capita ◽  
Better Than

The first two articles in this issue of Enterprise & Society shed new light on the performance of the postwar Italian economy, an intriguing paradox for economic and business historians. Italy has been notorious for its political instability, inflation, massive public debt, and clientelism. Its political and economic institutions are often derided and labeled dysfunctional. Yet, in historical perspective, the country has frequently performed better than its more stable and “efficient” European neighbors and other developed economies. Between 1950 and 1973, for example, Italy’s Gross National Product grew at 6.8 percent per annum and its Gross Domestic Product (GDP) per capita at a rate of 4.8 percent (matching Germany and second only to Japan). Even more remarkably, since 1973 its GDP, manufacturing output, exports, and productivity have all grown faster than that of any other major European economy.

Kondratieff Cycles in Developed Economies

2015 ◽  
Vol 3 (5) ◽  
pp. 9-13 ◽  
Author(s):  
Басовский ◽  
Leonid Basovskiy
Keyword(s):  
Time Series ◽  
Spectral Analysis ◽  
Total Power ◽  
Economic Dynamics ◽  
Per Capita Gdp ◽  
Economic Cycles ◽  
Developed Economies ◽  
Kondratieff Cycles ◽  
Per Capita ◽  
The 19Th Century

The objective of this paper is to identify Kondratieff cycles in the developed economies. Time series spectral analysis of real per capita GDP of the developed countries and Brazil is performed. Also studied are time series for the period from the 19th century to 2008. As a result Kondratieff cycles (waves) are found out in the economic dynamics of all the countries surveyed, except for Finland. The power of Kondratieff cycles in the economic dynamics is estimated to fall in the range of 23 to 61% of the total power of all economic cycles with the periods of 2 to 100 years. The Kondratieff cycles can be found in a number of economies in the period of 19th — 20th centuries. It allows to distinguish the three moderntime Kondratieff waves in the said countries and to evaluate productivity of the fourth, the fifth and the sixth technological modes in their economies. However in a number of countries the Kondratieff cycles show up only in the 20th century. So for these countries only one or two modern Kondratieff waves can be clearly identified, making it possible to evaluate productivity of only the fifth and the sixth technological modes in their economies.

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