DO STATUS-SEEKING MOTIVES ENHANCE ECONOMIC GROWTH? A SMALL OPEN GROWTH MODEL

2016 ◽  
Vol 22 (2) ◽  
pp. 199-224 ◽  
Author(s):  
Juin-Jen Chang ◽  
Wei-Neng Wang ◽  
Ying-An Chen
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
Open Economy ◽  
Social Comparisons ◽  
Closed Economy ◽  
Growth Effects ◽  
Status Seeking ◽  
Endogenous Growth Model ◽  
Seeking Behavior ◽  
Open Growth

This paper explores the growth effects of both consumption- and wealth-induced social comparisons in a unified small open endogenous growth model. We analytically show that in an open economy not only do these two distinct status-seeking motives have very different growth effects, but these growth effects are also quite different from the conventional wisdom based on a closed economy. Status-seeking behavior need not favor economic growth. The asset portfolios of households and the imperfection of the international asset market both play an important role and jointly govern the growth effects of social status seeking. We also perform a quantitative experiment, showing that our analytical findings are robust and empirically plausible. Our analysis provides novel implications for social comparisons and new insights into the literature.

scholarly journals Education, Income, Wealth Inequality and Business Cycles in a General Equilibrium Growth Model

2020 ◽  
Vol 26 (4) ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Business Cycles ◽  
General Equilibrium ◽  
Growth Model ◽  
Open Economy ◽  
Wealth Inequality ◽  
Learning By Doing ◽  
Government Subsidy ◽  
Wealth Inequalities

The paper is concerned with the dynamic interactions between physical capital, human capital, income and wealth inequalities between different households with government subsidy to education. It generalizes the endogenous growth model of a small-open economy proposed by Zhang (2016). Zhang’s paper deals with income and wealth inequalities between heterogeneous households with government subsidy to education. The paper makes a contribution to the literature of economic growth with endogenous education by integrating Solow-Uzawa’s neoclassical growth theory, Uzawa-Lucas model, Arrow’s learning by doing, Zhang’s creative leisure, and Walrasian general equilibrium theory. The model treats endogenous capital and human capital accumulation as the main engines of economic growth. This study generalizes Zhang’s model by allowing constant coefficients to be time-dependent. We simulate the generalized model to demonstrate existence of business cycles due to various exogenous periodic shocks.

scholarly journals BUSINESS CYCLES, GROWTH, AND IMPORTED ENERGY IN A SMALL-OPEN GROWTH MODEL

2018 ◽  
Vol 3 (2) ◽  
pp. 7-21 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Business Cycles ◽  
Growth Model ◽  
Open Economy ◽  
Small Open Economy ◽  
Economic Growth Model ◽  
Constant Coefficients ◽  
Open Growth ◽  
Two Sectors ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

This paper generalizes an economic growth model proposed by Zhang (2017) by allowing all constant coefficients to be time-dependent. This paper shows existence of business cycles in the generalized model due to periodic shocks. Zhang’s original model is developed for a small open economy with imported energy and imported goods. The economy is composed of two sectors and all markets are perfectly competitive. The economy has fixed land and population. Production side is the same as in neoclassical growth theory, while demand side is modelling with Zhang’s utility and concept of disposable income. We generalize and simulate the model. We demonstrate existence of business cycles due to different exogenous periodic shocks.

Growth Effects of Bubbles in an Endogenous Growth Model

2000 ◽  
Vol 51 (2) ◽  
pp. 221-235 ◽  
Author(s):  
Koichi Futagami ◽  
Akihisa Shibata
Keyword(s):  
Endogenous Growth ◽  
Growth Model ◽  
Growth Effects ◽  
Endogenous Growth Model

scholarly journals A growth model with qualities, varieties, and human capital: stability and transitional dynamics

2014 ◽  
Vol 18 (5) ◽  
Author(s):  
Tiago Neves Sequeira ◽  
Alexandra Ferreira-Lopes ◽  
Orlando Gomes
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Steady State ◽  
Population Growth ◽  
Growth Model ◽  
Transitional Dynamics ◽  
Quality Ladders ◽  
Endogenous Growth Model ◽  
The Stability

AbstractThis article analyses the stability properties of the steady-state and the transitional dynamics of an endogenous growth model with human capital, increasing-varieties R&D, and quality-ladders R&D [Strulik, H. 2005. “The Role of Human Capital and Population Growth in R&D-Based Models of Economic Growth.”

scholarly journals A chaotic economic growth model and the agricultural share of an output

2005 ◽  
Vol 50 (2) ◽  
pp. 207-216 ◽  
Author(s):  
Vesna Jablanovic
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
Open Economy ◽  
Agricultural Production ◽  
Small Open Economy ◽  
Total Output ◽  
Economic Growth Model ◽  
Stable Equilibria ◽  
Set Up ◽  
Parameter Values

The agricultural share of a total output generally declines in the process of economic growth. The major reason for this is that consumer demand for food increases only slightly with rising incomes. However, a small, open economy can overcome this constraint to the growth of agricultural production by expanding its net exports. The basic aim of this paper is to set up a chaotic growth model of the gross domestic product that is capable of generating stable equilibria, cycles, or chaos depending on parameter values.

Sign in / Sign up

Export Citation Format

Share Document