COMPLEMENTARITY, SUBSTITUTABILITY AND STRATEGIC ACCUMULATION OF CAPITAL

2002 ◽  
Vol 04 (04) ◽  
pp. 371-390 ◽  
Author(s):  
CHARLES FIGUIERES
Keyword(s):  
Differential Games ◽  
Capital Accumulation ◽  
Dynamic Properties ◽  
Initial Condition ◽  
Long Run

The preemptive role of capital is analyzed in a class of differential games of capital accumulation with reversible investment for two symmetric players. Two dynamic concepts of interaction are defined: feedback substitutability and feedback complementarity. These concepts are useful for exploring the dynamic properties of the stocks. In particular it is proved that if the equilibrium of the game is characterized by feedback substitutability, the firm with the higher initial condition overshoots his long-run level of capital.

Capital accumulation and growth in Hungary, 1924–2006

2011 ◽  
Vol 61 (2) ◽  
pp. 143-164 ◽  
Author(s):  
B. Leeuwen ◽  
P. Földvári
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Physical Capital ◽  
Volume Index ◽  
Growth Accounting ◽  
Simple Method ◽  
Long Run ◽  
Over Time

The objective of this paper is to analyse the role of both human and physical capital in economic growth in Hungary during the 20th century by extending the already available data on physical and human capital. Besides the standard measure for the volume of human capital, we develop a simple method to estimate the value of the human capital stock in Hungary between 1924 and 2006. While the volume index slowly grows over time, the value of human capital shows a decline during the late socialist period. Applying the value of human capital in a growth accounting analysis, we find that the Solow residual has no long-run effect on economic growth anymore.

Capital, Income Growth, in American Economic History

2018 ◽  
pp. 374-400
Author(s):  
Paul W. Rhode
Keyword(s):  
Economic History ◽  
Capital Accumulation ◽  
Income Growth ◽  
Standard View ◽  
Long Run ◽  
Great Debate ◽  
Return On Capital ◽  
Output Ratio ◽  
The Interest Rate

The role of capital accumulation in the process of long-run income growth has been the subject of great debate. The classical and early neoclassical economists viewed capital accumulation as the fundamental driver of growth. Economists informed by the Solow growth model (and its successors) and by twentieth-century growth accounting exercises assign capital accumulation a much more marginal role. This now standard view takes certain constancies for granted: the rate of capital formation (i.e., the saving rate), the capital-output ratio, capital’s share of income, and the rate of return on capital (i.e., the interest rate). This chapter documents the historical evolution of capital in the American economy and challenges the conventional thinking. It shows that the role of capital accumulation in economic growth is dynamic and has changed dramatically over the past three centuries.

scholarly journals Determinants of Household Savings in India: An Empirical Analysis Using ARDL Approach

2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
Amaresh Samantaraya ◽  
Suresh Kumar Patra
Keyword(s):  
Capital Accumulation ◽  
Critical Role ◽  
Policy Implications ◽  
Household Savings ◽  
Global Integration ◽  
Long Run ◽  
Ardl Approach ◽  
Domestic Savings ◽  
Short Run

Indian economy witnessed significant transformations in the postreform period both in terms of change in policy paradigm adopting greater market orientation and overall macroeconomic performance with development of a broad-based financial market and increasing global integration. Guided by the fact that domestic savings play a critical role in augmenting capital accumulation and contributing to achieve and sustain high economic growth, an attempt to review and reassess the role of various factors influencing domestic savings under the changed environment is quite relevant for sustaining the growth momentum. In this backdrop, the present study empirically analyzed the role of various determinants of household savings in India with the latest available data. It employed ARDL approach for this purpose due to its suitability for estimating an equation with a mix of stationary and nonstationary variables of order I(1) and address potential endogeneity problems. The estimated results revealed that GDP, dependency ratio, interest rate, and inflation have statistically significant influence on household savings in India, both in the long run and short run. As regards policy implications, we suggest that ensuring price stability and avoiding any disruption to the growth process will be useful for augmenting savings and sustaining the savings-growth spiral in India.

scholarly journals From Stagnation to Sustained Growth: The Role of Female Empowerment

2013 ◽  
Vol 103 (3) ◽  
pp. 545-549 ◽  
Author(s):  
Claude Diebolt ◽  
Faustine Perrin
Keyword(s):  
Gender Equality ◽  
Low Income ◽  
Capital Accumulation ◽  
Technological Progress ◽  
Economic Transition ◽  
Low Fertility ◽  
Female Empowerment ◽  
Demographic Development ◽  
Long Run

This paper explores the role of gender equality over a long-run economic and demographic development path of industrialized countries. Our unified cliometric growth model of female empowerment suggests that changes in gender relations are a key ingredient of economic development. The economy evolves from a Malthusian regime--with slow technological progress, low income and low fertility--to a Modern Growth regime, with high living standards and low fertility. The rise in technological progress, together with improvements in gender equality, generates a positive feedback loop that engages the process of human capital accumulation (economic transition) and triggers the demographic transition.

scholarly journals Role of human capital in the promotion of technological progress, economic growth and development in Africa: A case study of Kenya

2018 ◽  
Vol 6 (1) ◽  
Author(s):  
Jimmy Alani
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Growth And Development ◽  
Capital Accumulation ◽  
Technological Progress ◽  
Positive Influence ◽  
Economic Growth And Development ◽  
Long Run ◽  
Human Capital Index

Background: This article evaluates the role of human capital in the promotion of technological progress, economic growth and development in Africa by focusing on the case of Kenya.Objectives: The overall objective of this article was to evaluate the effects of human capital on technological progress, economic growth and development in Kenya over the period between 1971 and 2014.Method: In this article, human capital was measured by human capital index defined as the ratio of current level of human capital in the national economy to the level of human capital 2 years ago. In particular, human capital in the broad sense was estimated by computing the ratio between 2 years of the hypotenuse of capital and labour vectors, and this measure outperformed all the other measures of human capital by yielding very good regression results by way of the generalised least squares technique.Results: Based on the econometric and statistical analyses, human capital in Kenya was found to have had a positive influence on economic growth in the long run. Human capital was also found to have had a positive influence on labour in the long run.Conclusion: Both human capital formation and technological progress should be given priority in the promotion of economic growth and development in Kenya rather than merely increasing the productivity of either capital or labour. Capital accumulation and labour generation should also be encouraged because increase in the two variables always under normal circumstances results in economic growth and development.

The Problem of Identifying and Modeling the Relationship between Monetary Factor and Inflation in the Russian Economy

2008 ◽  
pp. 61-76
Author(s):  
A. Porshakov ◽  
A. Ponomarenko
Keyword(s):  
Money Supply ◽  
Money Demand ◽  
Russian Economy ◽  
Long Run ◽  
Complex Approach ◽  
Wide Range ◽  
Long Time ◽  
The Relationship ◽  
Supply Side Factors

The role of monetary factor in generating inflationary processes in Russia has stimulated various debates in social and scientific circles for a relatively long time. The authors show that identification of the specificity of relationship between money and inflation requires a complex approach based on statistical modeling and involving a wide range of indicators relevant for the price changes in the economy. As a result a model of inflation for Russia implying the decomposition of inflation dynamics into demand-side and supply-side factors is suggested. The main conclusion drawn is that during the recent years the volume of inflationary pressures in the Russian economy has been determined by the deviation of money supply from money demand, rather than by money supply alone. At the same time, monetary factor has a long-run spread over time impact on inflation.

The Role of Technological Change in the Long-run Global Economy Forecasting

2013 ◽  
pp. 97-116 ◽  
Author(s):  
A. Apokin
Keyword(s):  
Technological Change ◽  
Data Quality ◽  
Long Range ◽  
Global Economy ◽  
World Economy ◽  
Qualitative Approaches ◽  
Long Run ◽  
The World ◽  
National Economies

The author compares several quantitative and qualitative approaches to forecasting to find appropriate methods to incorporate technological change in long-range forecasts of the world economy. A?number of long-run forecasts (with horizons over 10 years) for the world economy and national economies is reviewed to outline advantages and drawbacks for different ways to account for technological change. Various approaches based on their sensitivity to data quality and robustness to model misspecifications are compared and recommendations are offered on the choice of appropriate technique in long-run forecasts of the world economy in the presence of technological change.

Physical capital stock, technological upgrading and modernisation in Hungary

2005 ◽  
Vol 55 (2) ◽  
pp. 201-221 ◽  
Author(s):  
Andrea Szalavetz
Keyword(s):  
Capital Accumulation ◽  
Physical Capital ◽  
Developed Countries ◽  
Point Of View ◽  
Technology Generation ◽  
Development Policies ◽  
Specific Factors ◽  
Physical Capital Accumulation

This paper discusses the relation between the quality and quantity indicators of physical capital and modernisation. While international academic literature emphasises the role of intangible factors enabling technology generation and absorption rather than that of physical capital accumulation, this paper argues that the quantity and quality of physical capital are important modernisation factors, particularly in the case of small, undercapitalised countries that recently integrated into the world economy. The paper shows that in Hungary, as opposed to developed countries, the technological upgrading of capital assets was not necessarily accompanied by the upgrading of human capital i.e. the thesis of capital skill complementarity did not apply to the first decade of transformation and capital accumulation in Hungary. Finally, the paper shows that there are large differences between the average technological levels of individual industries. The dualism of the Hungarian economy, which is also manifest in terms of differences in the size of individual industries' technological gaps, is a disadvantage from the point of view of competitiveness. The increasing differences in the size of the technological gaps can be explained not only with industry-specific factors, but also with the weakness of technology and regional development policies, as well as with institutional deficiencies.

Literalism and Moral Status

2018 ◽  
Author(s):  
Carrie Figdor
Keyword(s):  
Moral Status ◽  
Moral Standing ◽  
Short Term ◽  
Long Run ◽  
Moral Boundaries ◽  
Psychological Capacities

Chapter 9 presents the idea that Literalism undermines current social and moral boundaries for moral status. Possession of psychological capacities, moral standing, and respectful treatment are a standard package deal. So either many more beings enjoy moral status than we now think, or the relative superiority of human moral status over other beings is diminished. It introduces the role of psychological ascriptions in drawing social and moral boundaries by examining dehumanization and anthropomorphism. It argues that in the short term Literalism does not motivate us to do more than make minor adjustments to current moral boundaries. We can distinguish the kinds of psychological capacities that matter for moral status from the kinds that best divide nature at its joints. In the long run, however, Literalism prompts us to reconsider the anthropocentric standards that govern current moral boundaries.

scholarly journals Why do informal markets remain informal: the role of tacit knowledge in an Indian footwear cluster

2021 ◽  
Author(s):  
Yugank Goyal ◽  
Klaus Heine
Keyword(s):  
Tacit Knowledge ◽  
Informal Markets ◽  
Market Institutions ◽  
Market Structures ◽  
Long Run ◽  
External Pressures ◽  
Propositional Form ◽  
The City

AbstractWhy do informal markets resist formalizing, even when the gains of doing so outweigh its costs in the long run? While a number of responses to this question have been advanced, we discover that part of the reason could be located in the tacit knowledge (attributed to Polanyi, Hayek) embedded in the marketplace, on which market institutions run. This factor is not fully explored yet. Tacit (idiosyncratic, inarticulate, nonconscious) knowledge is acquired personally through experience and cannot be transferred or conveyed to anyone. This is the knowledge we use to act without knowing it in a propositional form. We present the case of one of India’s largest informal footwear cluster, located in the city of Agra. We show that informal markets, hinged on tacit knowledge, cannot evolve easily and therefore may remain locked-in, despite external pressures or incentives to formalize. The study shows that efforts to overcome informality and reaping the benefits of formalized market structures cannot be done without taking cognizance of the sticky intangible knowledge on which these markets rest.

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