Endogenous Disasters

2018 ◽  
Vol 108 (8) ◽  
pp. 2212-2245 ◽  
Author(s):  
Nicolas Petrosky-Nadeau ◽  
Lu Zhang ◽  
Lars-Alexander Kuehn
Keyword(s):  
Capital Accumulation ◽  
Job Creation ◽  
Search Model ◽  
Recursive Utility ◽  
Home Production ◽  
Equilibrium Unemployment ◽  
Marginal Costs ◽  
Matching Process ◽  
Rare Disasters ◽  
Hiring Costs

Market economies are intrinsically unstable. The standard search model of equilibrium unemployment, once solved accurately with a globally nonlinear algorithm, gives rise endogenously to rare disasters. Intuitively, in the presence of cumulatively large negative shocks, inertial wages remain relatively high, and reduce profits. The marginal costs of hiring run into downward rigidity, which stems from the trading externality of the matching process, and fail to decline relative to profits. Inertial wages and rigid hiring costs combine to stifle job creation flows, depressing the economy into disasters. The disaster dynamics are robust to extensions to home production, capital accumulation, and recursive utility. (JEL E22, E23, E24, E32, J41, J63, N12)

The Agrarian Question in Contemporary Zimbabwe

2019 ◽  
Vol 49 (1) ◽  
Author(s):  
Toendepi Shonhe
Keyword(s):  
Capital Accumulation ◽  
Crop Production ◽  
Job Creation ◽  
Food Crop ◽  
Contract Farming ◽  
Agrarian Question ◽  
Food Crop Production ◽  
The Government ◽  
Agrarian Transition ◽  
Depth Interviews

The reinvestment of rural agrarian surplus is driving capital accumulation in Zimbabwe's countryside, providing a scope to foster national (re-) industrialisation and job creation. Contrary to Bernstein's view, the Agrarian Question on capital remains unresolved in Southern Africa. Even though export finance, accessed through contract farming, provides an impetus for export cash crop production, and the government-mediated command agriculture supports food crop production, the reinvestment of proceeds from the sale of agricultural commodities is now driving capital accumulation. Drawing from empirical data, gathered through surveys and in-depth interviews from Hwedza district and Mvurwi farming area in Mazowe district in Zimbabwe, the findings of this study revealed the pre-eminence of the Agrarian Question, linked to an ongoing agrarian transition in Zimbabwe. This agrarian capital elaborates rural-urban interconnections and economic development, following two decades of de-industrialisation in Zimbabwe. 

Recursive utility and optimal capital accumulation. I. Existence

1989 ◽  
Vol 47 (1) ◽  
pp. 76-100 ◽  
Author(s):  
Robert A Becker ◽  
John H Boyd ◽  
Bom Yong Sung
Keyword(s):  
Capital Accumulation ◽  
Recursive Utility ◽  
Optimal Capital

The Labor Market Impact of Immigration: Job Creation versus Job Competition

2021 ◽  
Vol 13 (1) ◽  
pp. 35-78
Author(s):  
Christoph Albert
Keyword(s):  
Labor Market ◽  
Unemployment Rate ◽  
Job Creation ◽  
Undocumented Immigration ◽  
Search Model ◽  
Dominant Effect ◽  
Market Effects ◽  
Legal Immigration ◽  
Job Finding ◽  
Job Competition

This paper studies the labor market effects of both documented and undocumented immigration in a search model featuring nonrandom hiring. As immigrants accept lower wages, they are preferably chosen by firms and therefore have higher job finding rates than natives, consistent with evidence found in US data. Immigration leads to the creation of additional jobs but also raises competition for natives. The dominant effect depends on the fall in wage costs, which is larger for undocumented immigration than it is for legal immigration. The model predicts a dominating job creation effect for the former, reducing natives’ unemployment rate, but not for the latter. (JEL E24, J15, J23, J31, J61, M51)

AN ASSESSMENT OF ENTREPRENEURIAL DISPOSITION AND CULTURE IN SUB-SAHARAN AFRICA: SOME LESSONS FROM GHANA

2018 ◽  
Vol 23 (01) ◽  
pp. 1850001 ◽  
Author(s):  
KWAME ADOM ◽  
NEWMAN CHIRI ◽  
DANIEL QUAYE ◽  
KWASI AWUAH-WEREKOH
Keyword(s):  
Capital Accumulation ◽  
Job Creation ◽  
Sub Saharan Africa ◽  
Youth Employment ◽  
Job Seekers ◽  
Negative Effects ◽  
Job Seeking ◽  
Youth Entrepreneurship ◽  
Sub Saharan ◽  
The Impact

This paper assesses the impact of Ghanaian culture on the entrepreneurial disposition of Higher National Diploma (HND) graduates of Accra Polytechnic from 2007 to 2012. Since the turn of the millennium, there has been more attention given to job creation than job seeking, especially among the youth, to address unemployment in developing countries. This is because of governments' inability to match the growing number of job seekers to job creation across the globe. One way to address this deficit in Ghana is the introduction of courses in entrepreneurship in almost all tertiary institutions, coupled with the setting up of institutions such as Ghana Youth Employment and Entrepreneurship Development Agency (GYEEDA), National Youth Employment Program (NYEP), Youth Entrepreneurship Agency (YEA), Youth Entrepreneurship Support (YES), among others. Reporting on 2015 data from Accra, the main finding was that collectivistic culture has negative effects on capital accumulation, human resource management and the urgency the unemployed graduates attached to self-employment. Therefore, this paper calls for some ways to address the issue of graduates' inability to be enterprising.

scholarly journals Tenure, Experience, Human Capital, and Wages: A Tractable Equilibrium Search Model of Wage Dynamics

2014 ◽  
Vol 104 (6) ◽  
pp. 1551-1596 ◽  
Author(s):  
Jesper Bagger ◽  
François Fontaine ◽  
Fabien Postel-Vinay ◽  
Jean-Marc Robin
Keyword(s):  
Human Capital ◽  
Job Search ◽  
Capital Accumulation ◽  
Wage Growth ◽  
Search Model ◽  
Human Capital Accumulation ◽  
Wage Dynamics ◽  
Equilibrium Search ◽  
Individual Level ◽  
Wage Increases

We develop and estimate an equilibrium job search model of worker careers, allowing for human capital accumulation, employer heterogeneity, and individual-level shocks. Wage growth is decomposed into contributions of human capital and job search, within and between jobs. Human capital accumulation is largest for highly educated workers. The contribution from job search to wage growth, both within and between jobs, declines over the first ten years of a career—the “job-shopping” phase of a working life—after which workers settle into high-quality jobs using outside offers to generate gradual wage increases, thus reaping the benefits from competition between employers. (JEL J24, J31, J63, J64)

Federal Estate and Gift Taxes: Are They Worth the Cost?

1996 ◽  
Vol 9 (3) ◽  
pp. 295-302 ◽  
Author(s):  
Pat Soldano
Keyword(s):  
Income Tax ◽  
Capital Accumulation ◽  
Job Creation ◽  
Business Growth ◽  
Estate Tax ◽  
Estate Taxes ◽  
Federal Income Tax ◽  
Family Harmony ◽  
The Cost ◽  
The Impact

Everyone is aware of the federal income tax. What many do not realize is that federal estate tax may have a bigger impact than the income tax. While the income tax decreases take-home pay, the estate tax threatens job creation, business growth, and family harmony. This article examines the impact of the federal estate taxes and reviews several studies which indicate that the estate tax has a deleterious impact on capital accumulation, business growth, job creation, and federal tax revenues.

The Determinants of Equilibrium Unemployment

2000 ◽  
Vol 90 (5) ◽  
pp. 1297-1322 ◽  
Author(s):  
Eran Yashiv
Keyword(s):  
Labor Market ◽  
Empirical Investigation ◽  
Simulation Analysis ◽  
Equilibrium Unemployment ◽  
Empirical Validity ◽  
Optimal Behavior ◽  
Matching Process ◽  
Key Variables ◽  
Search And Matching Model

The paper takes the search and matching model of the aggregate labor market to the data. It tests the model's empirical validity and employs structural estimation to generate a characterization of the optimal behavior of firms and workers. The model is applied to Israeli data that are uniquely suited for this kind of empirical investigation. The structural estimates are used to quantify the frictions embodied in the model, including the costs of search, the congestion and trading externality effects, and the matching process. A calibration-simulation analysis then studies the effect of several key variables on equilibrium unemployment. (JEL E24, E32, J63, J64)

Sign in / Sign up

Export Citation Format

Share Document