POVERTY TRAPS AND INFERIOR GOODS IN A DYNAMIC HECKSCHER–OHLIN MODEL

2012 ◽  
Vol 17 (6) ◽  
pp. 1227-1251 ◽  
Author(s):  
Eric W. Bond ◽  
Kazumichi Iwasa ◽  
Kazuo Nishimura
Keyword(s):  
Economic Theory ◽  
Steady State ◽  
World Economy ◽  
Steady States ◽  
The Other ◽  
Poverty Traps ◽  
Poverty Trap ◽  
Multiple Steady States ◽  
The World ◽  
State Capital

We extend the dynamic Heckscher–Ohlin model in Bond et al. [Economic Theory(48, 171–204, 2011)] and show that if the labor-intensive good is inferior, then there may exist multiple steady states in autarky and poverty traps can arise. Poverty traps for the world economy, in the form of Pareto-dominated steady states, are also shown to exist. We show that the opening of trade can have the effect of pulling the initially poorer country out of a poverty trap, with both countries having steady state capital stocks exceeding the autarky level. However, trade can also pull an initially richer country into a poverty trap. These possibilities are a sharp contrast with dynamic Heckscher–Ohlin models with normality in consumption, where the country with the larger (smaller) capital stock than the other will reach a steady state where the level of welfare is higher (lower) than in the autarkic steady state.

scholarly journals Impact of Covid-19 on Business Industry and Management: Pandemic Challenges and Responses

2021 ◽  
Vol 9 (2) ◽  
Keyword(s):  
Problem Solving ◽  
Impact Assessment ◽  
Business Process ◽  
World Economy ◽  
Business Management ◽  
The Other ◽  
Problem Structure ◽  
Global Business ◽  
The World ◽  
The One

Covid-19 pandemic has created unprecedented interruption for the global business industry management. The world economy already facing a turbulent phase experienced the worst scenario in the view of this pandemic. Business management strategists and policymakers have been making an impact assessment to understand the problem structure of this worst possible pandemic situation. The present article tries to develop a viewpoint on Covid-19 impact on business industries and management. Further authors attempt to develop a problem-solving structure by discussing the best possible solutions to mitigate the fact on the one hand and facilitating the business process in various sectors such as business Industry, Marketing, finance, and health industries on the other.

Chapter II. The World Economy

1974 ◽  
Vol 70 ◽  
pp. 23-37
Keyword(s):  
United States ◽  
World Economy ◽  
Developed Countries ◽  
The United States ◽  
Oecd Countries ◽  
The Other ◽  
Industrial Countries ◽  
The World ◽  
World Economic ◽  
Economic Position

The world economic position and prospects have worsened further in the last three months. In the United States and Japan, in particular, recessionary conditions are proving to be more marked and more prolonged than we had expected, and it looks as though by the end of the year all the major industrial countries, with the possible exception of France, will have experienced at least one quarter in which output has fallen or at best shown no appreciable rise. The other developed countries have fared better, but we no longer expect there to be any growth of output in the OECD area either in the second half of the year or in the year as a whole. In 1975 the position should be rather better, at least by the second half. We expect OECD countries' aggregate GNP to grow by about 2 per cent year-on-year and nearly 3 per cent between the fourth quarters of 1974 and 1975.

scholarly journals The Implications of Soaring Gas and Coal Prices on Europe’s Energy Poverty Trap

2021 ◽  
Author(s):  
Fateh Belaid
Keyword(s):  
Natural Gas ◽  
Energy Demand ◽  
World Economy ◽  
Energy System ◽  
Poverty Trap ◽  
Energy Poverty ◽  
Ongoing Process ◽  
The World

With the recovery of the world economy following the easing of restrictions designed to contain COVID-19, energy demand has surged even as natural gas stocks were dangerously low. This triggered one of the first significant energy shocks of the green era and exposed the fragilities of the ongoing process to green the energy system.

Do studies in economics keep up with the economic practice?

2017 ◽  
Vol 45 (4) ◽  
pp. 4-5
Author(s):  
Roman Sobiecki
Keyword(s):  
Economic Theory ◽  
Economic Policy ◽  
World Economy ◽  
Business Management ◽  
The Real ◽  
Economic Practice ◽  
New Directions ◽  
The World

Repeated crises reveal the shortcomings not only of methods of business management and economic policy, but also the non-compliance of economic theory with the real processes that take place in the world economy, and the requirements of the growth of general pros-perity. The essay deals with reflections concerning the causes of the weaknesses of economic sciences and new directions of their development.

The Determination of Multiple Steady States in Two Families of Biological Systems

2004 ◽  
Vol 59 (3) ◽  
pp. 136-146
Author(s):  
Guo-Syong Chuang ◽  
Pang-Yen Ho ◽  
Hsing-Ya Li
Keyword(s):  
Steady State ◽  
Transport Model ◽  
Biological Systems ◽  
Linear Equations ◽  
Steady States ◽  
Metabolic Energy ◽  
Mass Action ◽  
Multiple Steady States ◽  
Mass Action Kinetics ◽  
Subnetwork Analysis

The capacity of computational multiple steady states in two biological systems are determined by the Deficiency One Algorithm and the Subnetwork Analysis. One is a bacterial glycolysis model involving the generation of ATP, and the other one is an active membrane transport model, which is performed by pump proteins coupled to a source of metabolic energy. Mass action kinetics, is assumed and both models consist of eight coupled non-linear equations. A set of rate constants and two corresponding steady states are computed. The phenomena of bistability and hysteresis are discussed. The bifurcation of multiple steady states is also displayed. A signature of multiplicity is derived, which can be applied to mechanism identifications if steady state concentrations for some species are measured. The capacity of steady state multiplicity is extended to their families of reaction networks.

scholarly journals KORUPSI, PERTUMBUHAN EKONOMI DAN KEMISKINAN DI INDONESIA

2018 ◽  
Vol 3 (1) ◽  
pp. 71-79
Author(s):  
Junaidi I Ketut Patra
Keyword(s):  
World Economy ◽  
The Other ◽  
Future Research ◽  
Literature Study ◽  
Financial Report ◽  
The People ◽  
Global Issue ◽  
Developing Region ◽  
The World ◽  
Conducting Research

Some countries have been faced to corruption stage. Especially developing region, corruption has became a disaster humankind and occur a global issue, because it is very disturbing cycle of the world economy. In many cases corruption related to financial report manipulation. One of the factor fraud rate is accounting have leave religion aspect in their report. A revolution of solution must be born in the globe. to reduces and combating the level of corruption, but on the other hand accounting makes corruption becomes more fertile. This research uses the literature approach and is expected to be one of the concepts for future research in conducting research on the prevention of corruption for accounting sector. Based on literature study we found that the approach to culture and religiosity in Indonesia will be more effective in preventing corruption. This is caused by the people of Indonesia, which consists of many tribes, cultures, beliefs and religions.

scholarly journals Cross-Border Labor Organizing in the Garment and Automobile Industries: The Phillips Van-Heusen and Ford Cuautitlan Cases

1998 ◽  
pp. 20-51 ◽  
Author(s):  
Ralph Armbruster
Keyword(s):  
Case Studies ◽  
Automobile Industry ◽  
World Economy ◽  
Labor Relations ◽  
The Other ◽  
Guatemala City ◽  
Labor Organizing ◽  
Cross Border ◽  
The World ◽  
Corporatist State

The globalization of the world economy has created new opportunities for cross-border labor organizing. In this paper I examine two case studies of cross -border labor organizing. One case involves Phillips Van-Hernen (PVH) workers in Guatemala City, and the other Ford automobile workers in Cuautitlan, Mexico. The PVH case illustrates the potential for cross-border labor organizing in the highly mobile garment industry. The PVH workers' union and their cross-border allies adopted a "strategic cross-border organizing model" that included consumer and trade pressure, an active international trade secretariat, and several other strategies, to achieve an amazing victory. However, the Ford Cuautitlan case demonstrates that corporatist state-labor relations and internal union conflicts have limited cross-border organizing in the automobile industry. These two case studies and their different outcomes have many important lessons for academics and activists interested in cross-border labor organizing.

scholarly journals Multiple Steady States in Ice-Water-Till Systems

1990 ◽  
Vol 14 ◽  
pp. 1-5 ◽  
Author(s):  
Richard B. Alley
Keyword(s):  
Steady State ◽  
Ice Sheet ◽  
Steady States ◽  
The Other ◽  
Surface Slope ◽  
Dimensional Model ◽  
Climatic Forcing ◽  
Fixed Boundary ◽  
One Dimensional ◽  
Ice Water

An ice sheet with fixed boundary conditions may have two steady configurations, as shown by a new one-dimensional model including the physics and continuity of ice, water, and deforming subglacial till. In one steady state, a steep surface slope causes rapid internal ice shearing but forces basal water through subglacial aquifers, suppressing basal velocity; in the other steady state, a gentle surface slope causes only slow ice shearing but allows water to lubricate the ice-bed interface and cause rapid basal velocities. Small climatic forcing may cause large ice-sheet response during a switch between steady states.

UNANCHORED EXPECTATIONS: SELF-REINFORCING LIQUIDITY TRAPS AND MULTIPLE STEADY STATES

2019 ◽  
pp. 1-29 ◽  
Author(s):  
Joep Lustenhouwer
Keyword(s):  
Steady State ◽  
Discrete Choice ◽  
Steady States ◽  
New Keynesian ◽  
Multiple Steady States ◽  
New Keynesian Model ◽  
Expectation Values ◽  
Inflation Target ◽  
Liquidity Trap ◽  
Keynesian Model

We study a New Keynesian model with bounded rationality, where agents choose their expectations heterogeneously from a discrete choice set. The range of their set of possible expectation values can be interpreted as the anchoring of expectations. In the model, multiple locally stable steady states can arise that reflect coordination on particular expectation values. Moreover, bad shocks to the economy can trigger a self-reinforcing wave of pessimism, where the zero lower bound on the nominal interest rate becomes binding, and agents coordinate on a locally stable liquidity trap steady state. When we let the anchoring of expectations evolve endogenously, it turns out that the anchoring of expectations at the time the bad shocks hit the economy is crucial in determining whether the economy can recover from the liquidity trap. Finally, we find that a higher inflation target makes it less likely that self-reinforcing liquidity traps arise.

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