CONNECTIVITY AND ECONOMIC GROWTH

2016 ◽  
Vol 20 (8) ◽  
pp. 2148-2172
Author(s):  
Adriaan van Zon ◽  
Evans Mupela
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Theoretical Model ◽  
Scale Effect ◽  
Production Costs ◽  
Communication Costs ◽  
Central Planner ◽  
Simple Theoretical Model ◽  
State Growth ◽  
Connected Communities

We present a simple theoretical model that illustrates the benefits of regional connectivity and specialization for growth. Starting with one community, we show how welfare measured by utility per head increases as the number of connected communities increases. We assume a common connectivity infrastructure through which a central planner is able to add new communities to the pool of already connected communities, a costly but rewarding activity that is funded by levying a tax on those already connected. We find that increasing production costs lead to faster transitions toward the steady state, whereas increasing transportation and communication costs tend to lengthen the transition. The results point to reductions in transportation and communication costs, in particular, as a suitable vehicle for speeding up growth and underline the existence of a positive scale effect that induces integration and reinforces both transitional and steady state growth.

Why The Already Difficult Task of Identifying Sources of Growth Has Become Even More Challenging?

2010 ◽  
pp. 1-7 ◽  
Author(s):  
Rup Singh
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Steady State ◽  
Growth Theory ◽  
Empirical Knowledge ◽  
Policy Makers ◽  
Steady State Growth ◽  
State Growth ◽  
Made In

This chapter is a brief account of what we now observe in the growth literature in light of the developments in the voluminous empirical works on economic growth. It is argued that while the empirical knowledge has advanced adequately, little progress has been made in the growth theory since the classic works of Solow. Therefore it can be said that growth economist and policy makers are still confused on how to raise the steady state growth rate of output and some of these confusions are due to our own experiments.

MINIMUM CONSUMPTION REQUIREMENTS: THEORETICAL AND QUANTITATIVE IMPLICATIONS FOR GROWTH AND DISTRIBUTION

1999 ◽  
Vol 3 (4) ◽  
pp. 482-505 ◽  
Author(s):  
Satyajit Chatterjee ◽  
B. Ravikumar
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Steady State ◽  
Wealth Distribution ◽  
Household Wealth ◽  
Elasticity Of Substitution ◽  
Positive Dependence ◽  
Per Capita ◽  
State Growth ◽  
The Impact

We study the impact of a minimum consumption requirement on the rate of economic growth and the evolution of wealth distribution. The requirement introduces a positive dependence between the intertemporal elasticity of substitution and household wealth. This dependence implies a transition phase during which the growth rate of per-capita quantities rise toward their steady-state values and the distributions of wealth, consumption, and permanent income become more unequal. We calibrate the minimum consumption requirement to match estimates available for a sample of Indian villagers and find that these transitional effects are quantitatively significant and depend importantly on the economy's steady-state growth rate.

scholarly journals Endogenous growth effects of environmental policies

2015 ◽  
Vol 62 (5) ◽  
pp. 607-629
Author(s):  
Oscar Afonso ◽  
Ana Afonso
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Endogenous Growth ◽  
Environmental Policies ◽  
Technological Knowledge ◽  
Stable Steady State ◽  
Scale Invariant ◽  
Endogenous Growth Model ◽  
State Growth ◽  
The Impact

To analyse the impact of the environmental policies, we start by reviewing the literature on the environment, technological knowledge and economic growth. Then, we build a general equilibrium endogenous growth model where final goods are produced either in the skilled-labour intensive Clean sector or in the unskilled-labour intensive Unclean sector. By solving numerically transitional dynamics towards the unique and stable steady state, we observe that environmental policies encourage scale-invariant technological knowledge bias. This, in turn, promotes environmental quality, the skill premium and economic growth. Moreover, the impact of population growth on the steady-state growth rate is higher under strong households? environmental conscientiousness with future generations.

Contract institutions in the Russian economy: The sphere of state, municipal, and regulated procurement

2017 ◽  
pp. 93-110 ◽  
Author(s):  
O. Anchishkina
Keyword(s):  
Economic Growth ◽  
Theoretical Model ◽  
Market Structure ◽  
Market Equilibrium ◽  
Statistical Evidence ◽  
Market Model ◽  
Market Behavior ◽  
Database Analysis ◽  
Russian Economy ◽  
Contracting Model

The article synthesizes information on database analysis of state, municipal, and regulated procurement through which Russian contract institutions and the market model are investigated. The inherent uncertainty of quantity indicators on contracting activities and process is identified and explained. The article provides statistical evidence for heterogeneous market structure in state and municipal procurement, and big player’s dominance. A theoretical model for market behavior, noncooperative competition and collusion is proposed, through which the major trends are explained. The intrinsic flaws and failure of the current contracting model are revealed and described. This ineffectiveness is regarded to be not a limitation, but a challenge to be met. If responded to, drivers for economic growth and market equilibrium will be switched on.

scholarly journals Incumbent and Entrant Bidding in Scoring Rule Auctions: A Study on Italian Canteen Services

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Riccardo Camboni ◽  
Paola Valbonesi
Keyword(s):  
Theoretical Model ◽  
Production Cost ◽  
Specific Information ◽  
Scoring Rule ◽  
The Public ◽  
Simple Theoretical Model ◽  
Original Dataset

AbstractWe empirically investigate incumbents’ and entrants’ bids on an original dataset of 192 scoring rule auctions for canteen services in Italy. Our findings show that winning rebates are lower (i.e., prices paid by the public buyer are higher) when the contract is awarded to the incumbent supplier. This result is not explained by the observable characteristics of the auction or the service awarded. We develop a simple theoretical model showing that the result is consistent with a setting in which the buyer exploits specific information on the incumbent supplier’s production cost.

scholarly journals Market Choices Driven by Reference Groups: A Comparison of Analytical and Simulation Results on Random Networks

Entropy ◽  
2021 ◽  
Vol 23 (8) ◽  
pp. 1007
Author(s):  
Michał Ramsza
Keyword(s):  
Theoretical Model ◽  
Reference Group ◽  
Third Party ◽  
Qualitative Behavior ◽  
Reference Groups ◽  
Group Influence ◽  
Simple Theoretical Model ◽  
High Connectivity ◽  
Simulation Results ◽  
Two Equilibria

The present paper reports simulation results for a simple model of reference group influence on market choices, e.g., brand selection. The model was simulated on three types of random graphs, Erdos–Renyi, Barabasi–Albert, and Watts–Strogatz. The estimates of equilibria based on the simulation results were compared to the equilibria of the theoretical model. It was verified that the simulations exhibited the same qualitative behavior as the theoretical model, and for graphs with high connectivity and low clustering, the quantitative predictions offered a viable approximation. These results allowed extending the results from the simple theoretical model to networks. Thus, by increasing the positive response towards the reference group, the third party may create a bistable situation with two equilibria at which respective brands dominate the market. This task is easier for large reference groups.

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