Equilibrium dynamics in a model of growth and spatial agglomeration

2021 ◽  
pp. 1-26
Author(s):  
Shota Fujishima ◽  
Daisuke Oyama
Keyword(s):  
Economic Activity ◽  
Capital Accumulation ◽  
Time Preference ◽  
Stable Equilibrium ◽  
Spillover Effects ◽  
Spatial Equilibrium ◽  
Stable Equilibrium State ◽  
Macroeconomic Variables ◽  
Equilibrium Dynamics ◽  
Endogenous Growth Model

Abstract We present a multiregional endogenous growth model in which forward-looking agents choose their regions to live in, in addition to consumption and capital accumulation paths. The spatial distribution of economic activity is determined by the interplay between production spillover effects and urban congestion effects. We characterize the global stability of the spatial equilibrium states in terms of economic primitives such as agents’ time preference and intra- and interregional spillovers. We also study how macroeconomic variables at the stable equilibrium state behave according to the structure of the spillover network.

ANTICIPATED FUTURE CONSUMPTION IN AN ENDOGENOUS GROWTH MODEL

2020 ◽  
pp. 1-37
Author(s):  
Manuel A. Gómez ◽  
Goncalo Monteiro
Keyword(s):  
Theoretical Analysis ◽  
Endogenous Growth ◽  
Growth Model ◽  
Reference Point ◽  
Time Varying ◽  
Standard Specification ◽  
Equilibrium Dynamics ◽  
Current Consumption ◽  
Endogenous Growth Model ◽  
Future Consumption

We devise an endogenous growth model in which agents’ utility depends not only on current consumption but also on the pleasure of anticipated future consumption. We consider the case in which agents derive satisfaction from their own anticipatory feelings—inward-looking or internal anticipation—and the case in which agents derive utility from anticipation of other people’s future consumption—outward-looking or external anticipation. We characterize the effects of introducing a forward-looking consumption reference on the dynamics of the economy. Whereas the inward-looking economy features transitional dynamics, the outward-looking economy does not. The distortions caused by the externality in the economy with external habits can be corrected by subsidizing income at a time-varying rate or by means of a tax on consumption at a decreasing rate. We contrast the equilibrium dynamics of our specification to the more standard specification of the habit formation consumption reference point. Numerical simulations supplement the theoretical analysis.

Temporal Dynamics of the Blueberry Maggot Fly (Diptera: Tephritidae) and its Primary Parasitoid, Biosteres melleus (Hymenoptera: Braconidae), in the Maine Wild Blueberry System

2019 ◽  
Vol 113 (2) ◽  
pp. 720-730 ◽  
Author(s):  
Francis A Drummond ◽  
Judith A Collins
Keyword(s):  
Predictive Model ◽  
Stable Equilibrium ◽  
Temporal Dynamics ◽  
Equilibrium Dynamics ◽  
Rhagoletis Mendax ◽  
Parasitism Rates ◽  
Blueberry Maggot Fly ◽  
Rates Of Growth ◽  
Wild Blueberry ◽  
Insecticide Sprays

Abstract Between 1998 and 2017, we conducted studies in wild blueberry, Vaccinium angustifolium Aiton (Ericales: Ericaceae), to elucidate the temporal dynamics of the blueberry maggot fly, Rhagoletis mendax Curran, and its parasitoid, Biosteres melleus (Gahan). A predictive model for the emergence of R. mendax was validated at two sites over 3 yr. A second predictive model for the major parasitoid, B. melleus, of R. mendax was constructed and suggests that the delay in emergence of the parasitoid relative to its host provides a period or ‘biological window’ of 9 d where insecticide sprays can be applied to manage R. mendax with a limited impact on the parasitoid. A 20-yr study on the parasitoid/host dynamics showed parasitism rates ranging from 0.5 to 28.2%. It appears that R. mendax populations in Maine wild blueberry are characterized by stable equilibrium dynamics, significantly affected by stochastic processes. There was a weak, but significant relationship between B. melleus density and R. mendax intrinsic rates of growth. Our data suggest that R. mendax population dynamics in wild blueberry is characterized by an unstable equilibrium tipping point of 7.9 maggots per liter of blueberries or an average of 10 flies per trap.

Spillover effects of financial development on the informal economic activity

2020 ◽  
Vol 13 (3) ◽  
pp. 471-482
Author(s):  
Salih Katircioglu ◽  
Hatice Imamoglu
Keyword(s):  
Interest Rates ◽  
Financial Development ◽  
Informal Economy ◽  
Economic Activity ◽  
Missing Values ◽  
Spillover Effects ◽  
Ordinary Least Squares ◽  
Annual Data ◽  
Content Type ◽  
Cointegration Tests

Purpose This study aims to investigate the role and spillover effects of the financial sector on the size of the informal economic activity in Turkey. Design/methodology/approach Time series analysis has been adopted for annual data of the 1970-2017 period. New approaches in unit root and cointegration tests have been used in this study. Estimations have been done via dynamic ordinary least squares and fully modified ordinary least square approaches. Findings Results confirm the existence of a long-run equilibrium relationship between the financial system and informal economic activities in Turkey. At the earlier stages of financial development (FD), informality tends to rise while in further stages, informality tends to decline over time. This study confirms the U-shaped relationship between FD and the informal economy in Turkey. Research limitations/implications This study has used logarithmic values of series in the econometric analysis except for real interest rates because of negative values in some periods. Thus, by using level forms of real interest, missing values would be avoided. Practical implications Increasing efficiency, control and institutional quality, as well as the quality of governance environment, would be useful tools in reducing the size of informality, as this study finds that spillover effects of financial services on the informal economic activity are adverse. Originality/value This study is the first of its kind to the best of the knowledge in the case of Turkey, which estimates the spillover effects of FD on informal economic activity.

scholarly journals Activity of the Regional Polish United Workers’ Party Apparatus in 1970–1989

2021 ◽  
Vol 8 (55) ◽  
pp. 79-94
Author(s):  
Dariusz Standerski
Keyword(s):  
Statistical Analysis ◽  
Correlation Coefficient ◽  
Communist Party ◽  
Economic Activity ◽  
Central Government ◽  
Capital City ◽  
State Archive ◽  
Macroeconomic Performance ◽  
Macroeconomic Variables ◽  
Archival Documents

Abstract The article aims to verify whether, in the 1980s, there was a significant decrease in the involvement of the regional communist party structures in charge of economic affairs in Poland. The analysis is made on the case of the Warsaw Committee (KW) of the Polish United Workers’ Party (PUWP). Archival documents gathered in the State Archive in Warsaw were used to perform the analysis. The protocols of the meetings of the Executive and Secretariat 1970–1989 were collected, described and analysed. Moreover, the analysis was supplemented by the Statistical Yearbooks of Warsaw (GUS, 1957–1974), the Statistical Yearbooks of the Capital City of Warsaw (GUS, 1976–1981) and the Journal of Laws of the People's Republic of Poland 1970–1989. A statistical analysis of economic activity of the KW of the PUWP in the context of macroeconomic variables and economic activity of central authorities was performed. The correlation coefficient between macroeconomic performance and Party activity indicates the convergence of both trends in the 1970s and the lack of correlation in the 1980s. The decline in engagement after 1978 was unprecedented. In this period, there was a discrepancy between the activities of the central government and the Party apparatus, which remained in place until the end of the system. Institutional mechanisms in the Principal–Agent relation weakened significantly in 1980s.

scholarly journals Policy Model for Muslim State Inflation Control

2021 ◽  
Vol 9 (1) ◽  
pp. 93-105
Author(s):  
Hamdan Firmansyah
Keyword(s):  
Economic Growth ◽  
Adverse Effects ◽  
Income Distribution ◽  
Economic Activity ◽  
Important Indicator ◽  
Macroeconomic Variables ◽  
Policy Model ◽  
External Balance

Inflation is a problem which is not simple and is classified as an economic disease. Inflation is one important indicator in analyzing a country's economy, especially with regard to its broad impact on macroeconomic variables: economic growth, external balance, competitiveness, and even income distribution. Inflation is characterized by high and continuous increases in prices not only causing some adverse effects on economic activity, but also on the prosperity of individuals and society. An increase in the price of one or two items alone cannot be called inflation, unless the increase extends to an increase in the majority of other goods.

scholarly journals Acemoglu Meets Lucas: Institutions, Human Capital and Economic Growth

2020 ◽  
Vol 11 (4) ◽  
pp. 98
Author(s):  
Suzana Quinet de Andrade Bastos ◽  
Fabio Gama ◽  
Tiana De Paula Assis
Keyword(s):  
Human Capital ◽  
Instrumental Variables ◽  
Political Institutions ◽  
Capital Accumulation ◽  
Ordinary Least Squares ◽  
Human Capital Accumulation ◽  
Institutional Performance ◽  
Accumulation Function ◽  
Endogenous Growth Model ◽  
Endogenous Process

This paper proposes a reinterpretation of Lucas endogenous growth model (1988), once we add an institutional component as one of its determinants. Firstly, the paper develops a theoretical model that links human capital and institutions. Our modelling strategy establishes the human capital accumulation function as being derived from an endogenous process in which the institutional performance is a booster for the economy’s growth. The essay uses a 40–country panel data of the years 2000, 2005 and 2010 and implements a Pooled Ordinary Least Squares (POLS) analysis – alongside instrumental variables (IV) – aiming to validate empirically the model proposed. We verify that Lucas’ model overestimates the human capital contribution as we evaluate the significant impact that economic and political institutions have on the capability of human capital foment growth. Additionally, our estimations also suggest that human capital is, effectively, institutionally driven and works as a channel for the institutions.

KNIFE-EDGE CONDITIONS AND THE MACRODYNAMICS OF SMALL OPEN ECONOMIES

2002 ◽  
Vol 6 (2) ◽  
pp. 307-335 ◽  
Author(s):  
Stephen J. Turnovsky
Keyword(s):  
Growth Model ◽  
Open Economies ◽  
Small Open Economies ◽  
Knife Edge ◽  
Generic Structure ◽  
Equilibrium Dynamics ◽  
Trade Offs ◽  
Special Cases ◽  
Edge Conditions ◽  
Endogenous Growth Model

Macrodynamic models of small open economies are inevitably characterized by “knife-edge conditions,” meaning that certain parameters are constrained for a viable equilibrium to exist. This paper examines the macrodynamic structure of such an economy and considers the role played by various standard knife-edge conditions. The dynamic model presented is sufficiently general so as to provide a unifying framework within which alternative models can be embedded. We identify three important models as special cases of this generic structure: (i) The traditional stationary Ramsey model, (ii) the endogenous growth model, and (iii) the nonscale growth model. We consider three margins along which knife-edge conditions are imposed. These include (i) preference parameters, (ii) production and employment characteristics, and (iii) openness of international financial markets. These restrictions are shown to play key roles in determining the equilibrium dynamics, and how the economy responds to various shocks. The existence of trade-offs between these knife-edge conditions is discussed.

scholarly journals POLICY INTERACTION AND LEARNING EQUILIBRIA

2011 ◽  
Vol 17 (4) ◽  
pp. 920-935 ◽  
Author(s):  
Noritaka Kudoh
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Budget Deficit ◽  
Stable Equilibrium ◽  
Government Revenue ◽  
Balanced Growth ◽  
Policy Interactions ◽  
Endogenous Growth Model ◽  
Multiple Assets ◽  
Growth Equilibrium

This note studies fiscal–monetary policy interactions in an endogenous growth model with multiple assets. The “growth-rate Laffer curve” clarifies an important tension between economic growth and government revenue and reveals that higher economic growth does not always finance a larger budget deficit. There are two Pareto-ranked balanced-growth equilibria, which can both be E-stable. Although fiscal policy can eliminate the expectational indeterminacy, it rules out the equilibrium with a higher growth rate and higher welfare. Near the lower bound of the nominal interest rate, an arbitrarily small budget deficit will select the low-growth equilibrium to be the unique E-stable equilibrium.

scholarly journals Entropy Generation Rate in a Chemically Reacting System

1993 ◽  
Vol 115 (3) ◽  
pp. 208-212 ◽  
Author(s):  
E. P. Gyftopoulos ◽  
G. P. Beretta
Keyword(s):  
Equilibrium State ◽  
Entropy Generation ◽  
Chemical Potential ◽  
Stable Equilibrium ◽  
Entropy Generation Rate ◽  
Stable Equilibrium State ◽  
Microscopic Reversibility ◽  
Chemical Reaction Mechanisms ◽  
Chemically Reacting ◽  
Surrogate System

For a nonchemical-equilibrium state of an isolated system A that has r constituents with initial amounts na = {n1a, n2a, …, nra}, and that is subject to τ chemical reaction mechanisms, temperature, pressure, and chemical potentials cannot be defined. As time evolves, the values of the amounts of constitutents vary according to the stoichiometric relations ni(t) = nia + Σj=1τ νi(j) εj(t), where νi(j) is the stoichiometric coefficient of the ith constituent in the j-reaction mechanism and εj(t) the reaction coordinate of the jth reaction at time t. For such a state, we approximate the values of all the properties at time t with the corresponding properties of the stable equilibrium state of a surrogate system B consisting of the same constituents as A with amounts equal to ni(t) for i = 1, 2, …, r, but experiencing no chemical reactions. Under this approximation, the rate of entropy generation is given by the expression S˙irr = ε˙ · Y, where ε˙ is the row vector of the τ rates of change of the reaction coordinates, ε˙ = { ε˙1, …, ε˙τ }, Y the column vector of the τ ratios aj/Toff for j = 1, 2, …, τ, aj = −Σi=1r νi(j) μi,off, that is, the jth affinity of the stable equilibrium state of the surrogate system B, and μi,off, and Toff are the chemical potential of the ith constituent and the temperature of the stable equilibrium state of the surrogate system. Under the same approximation, by further assuming that ε˙ can be represented as a function of Y only that is, ε˙(Y), with ε˙(0) = 0 for chemical equilibrium, we show that ε˙ = L·Y + (higher order terms in Y), where L is a τ × τ matrix that must be non-negative definite and symmetric, that is, such that the matrix elements Lij satisfy the Onsager reciprocal relations, Lij = Lji. It is noteworthy that, for the first time, the Onsager relations are proven without reference to microscopic reversibility. In our view, if a process is irreversible, microscopic reversibility does not exist.

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