Macroeconomic Modeling of the Relationship Between Price and Industry Proportions

2021 ◽  
pp. 10-26
Author(s):  
Valery G. Grebennikov ◽  
Keyword(s):  
Relative Price ◽  
Total Output ◽  
Social Technology ◽  
Price Ratio ◽  
Constant Ratio ◽  
Marginal Rate ◽  
Sector Model ◽  
Test Of Hypotheses ◽  
Existence And Stability ◽  
The Relationship

The article aims to examine one of the most interesting, in the authors’ opinion, applications of the two-sector model of social technology to identify the relationship between the trajectories of the relative price and the relative share of the product in the total output based on the concept of Pareto optimal, or “efficient”, trajectories of economic growth (i.e. trajectories, each point of which belongs to the surface of production opportunities). Within the framework of this concept, the ratio of prices of individual products corresponds to the marginal rates of these products’ substitution. The rates depend on the product (sectoral) structure of GDP, on the one hand, and on the available labor resources and production assets, on the other. The relationship between the investment component of the output and the growth of funds gives rise to a family of efficient trajectories, in the sense indicated above. Each of the trajectories is characterized by the joint dynamics of industry and price proportions; therefore, the main problem of the study is to examine the general properties of such trajectories. The main feature of the model under consideration is the nonlinear production functions of industries. Even the simplest Cobb–Douglas specification generates the dynamics of the main variables of the model described by a nonlinear differential equation of the second order, which cannot be integrated in general form. Therefore, the analysis of the properties of effective trajectories (at least when specific parameters of trajectories are of interest, and not just general criteria for existence and stability) required the development of a program of numerical experiments on a computer, designed for a fairly extensive test of hypotheses and the convenience of presenting and analyzing the results. To begin with, a variant of the twosector model was chosen, in the future it is planned to expand it to a significantly larger number of sectors. The properties of effective trajectories with constant parameters were analyzed: the marginal rate of product substitution (constant price ratio), constant marginal rate of resource substitution (constant ratio of factor payment rates), constant ratio of net output of industries, constant share of investments in GDP, etc. General conclusions are obtained about the conditions for the convergence of such “iso-trajectories” to trajectories with a constant GDP growth rate and about the characteristics of stationary trajectories. Of greatest interest, in the author’s opinion, is the conclusion that the existence and stability of stationary trajectories is determined by the intersectoral ratio of the elasticities of the output with respect to the funds of the sectors under consideration: for an industry producing investment products, this parameter should be of lesser importance. The derived equation, which can be interpreted as an expression of a trend that determines the form of the relationship between the proportions of industry outputs and prices in the economy, opens the way to a meaningful macroeconomic analysis of the relationships between these proportions, depending on the configuration of the parameters of social technology Ai, αi, aij, B and scenarios of their changes over time.

Intersectoral Terms of Trade for Pakistan's Economy: 1970-71 - 1981-82

1987 ◽  
Vol 26 (1) ◽  
pp. 81-105
Author(s):  
Shahnaz Kazi
Keyword(s):  
Terms Of Trade ◽  
Relative Price ◽  
Price Ratio ◽  
Sectoral Output ◽  
The Relationship

The paper estimates intersectoral terms of trade for the period from 1970-71 to 1981-82. On the basis of these results the study further analyses the relationship between terms of trade and aggregate farm output over the period. The findings indicate some improvement in agriculture's terms of trade over the Seventies. However, no conclusive support is provided to the hypothesis of high supply responsiveness of aggregate farm output to shifts in the relative price ratio of sectoral output.

scholarly journals EXPLORING CROSS-COUNTRY VARIATION IN GOVERNMENT SHARES: WHAT CAN WE LEARN FROM RELATIVE PRODUCTIVITIES?

2012 ◽  
Vol 17 (2) ◽  
pp. 356-372 ◽  
Author(s):  
Maksym Obrizan
Keyword(s):  
Relative Price ◽  
Total Output ◽  
Government Consumption ◽  
Strong Negative Correlation ◽  
Empirical Observation ◽  
Relative Prices ◽  
Neoclassical Growth Model ◽  
Poor Countries ◽  
Cross Country ◽  
Neoclassical Growth

Government shares in total output are characterized by significant variation across countries. I noticed a strong negative correlation between government consumption shares and the price of government services in terms of private consumption. Motivated by this empirical observation, I developed a neoclassical growth model with added government that is capable of matching the variation in government shares very closely using only relative prices. In addition, I provide empirical evidence showing that the relative price of government consumption increases with income, which is consistent with distortions prevailing in poor countries. These two observations combined imply that government shares tend to be higher in poorer countries.

Relationship of pyruvate and lactate during anaerobic metabolism. V: Coronary adequacy

1961 ◽  
Vol 200 (6) ◽  
pp. 1169-1176 ◽  
Author(s):  
William E. Huckabee
Keyword(s):  
Blood Flow ◽  
Coronary Flow ◽  
Cardiac Tissue ◽  
Anaerobic Metabolism ◽  
Constant Ratio ◽  
Blood Concentrations ◽  
Arterial Blood ◽  
Anesthetized Dogs ◽  
Relationship Of ◽  
The Relationship

Veno-arterial differences of pyruvate and lactate across the myocardium in chloralose-anesthetized dogs were very variable; in any one animal they changed continually with time despite constant blood flow and arterial blood concentrations. There was a systematic tendency of v-a lactate to vary with v-a pyruvate, as expressed in the calculated "Δ excess lactate," which remained nearly constant (or, if blood flow changed, bore a constant ratio to (a-v)O2). No change in Δ excess lactate from control values occurred in nonhypoxic experiments despite marked changes in v-a differences, arterial blood composition, and coronary flow. Cardiac Δ excess lactate became positive in most animals breathing 10% O2 in N2; output of excess lactate was also observed in all those in which moderate muscular exercise was induced. This anaerobic metabolism, or change in the relationship between pyruvate and lactate exchanges, was interpreted as an indication that O2 delivery response was not adequate to meet cardiac tissue requirements during such mild stresses when judged by the standards of adequacy of the basal state.

scholarly journals Examining Rural and Racial Disparities in the Relationship Between Loneliness and Social Technology Use Among Older Adults

2021 ◽  
Vol 9 ◽  
Author(s):  
Kaileigh A. Byrne ◽  
Reza Ghaiumy Anaraky ◽  
Cheryl Dye ◽  
Lesley A. Ross ◽  
Kapil Chalil Madathil ◽  
...  
Keyword(s):  
Older Adults ◽  
Racial Disparities ◽  
Technology Use ◽  
Social Engagement ◽  
Social Contact ◽  
Primary Study ◽  
Social Technology ◽  
Study Results ◽  
The Relationship ◽  
Rural Older Adults

Loneliness, the subjective negative experience derived from a lack of meaningful companionship, is associated with heightened vulnerability to adverse health outcomes among older adults. Social technology affords an opportunity to cultivate social connectedness and mitigate loneliness. However, research examining potential inequalities in loneliness is limited. This study investigates racial and rural-urban differences in the relationship between social technology use and loneliness in adults aged 50 and older using data from the 2016 wave of the Health and Retirement Study (N = 4,315). Social technology use was operationalized as the self-reported frequency of communication through Skype, Facebook, or other social media with family and friends. Loneliness was assessed using the UCLA Loneliness scale, and rural-urban differences were based on Beale rural-urban continuum codes. Examinations of race focused on differences between Black/African-American and White/Caucasian groups. A path model analysis was performed to assess whether race and rurality moderated the relationship between social technology use and loneliness, adjusting for living arrangements, age, general computer usage. Social engagement and frequency of social contact with family and friends were included as mediators. The primary study results demonstrated that the association between social technology use and loneliness differed by rurality, but not race. Rural older adults who use social technology less frequently experience greater loneliness than urban older adults. This relationship between social technology and loneliness was mediated by social engagement and frequency of social contact. Furthermore, racial and rural-urban differences in social technology use demonstrated that social technology use is less prevalent among rural older adults than urban and suburban-dwelling older adults; no such racial differences were observed. However, Black older adults report greater levels of perceived social negativity in their relationships compared to White older adults. Interventions seeking to address loneliness using social technology should consider rural and racial disparities.

Positive Interest Rate, Stationary Economy, and Inefficiency

2020 ◽  
pp. 1-17
Author(s):  
Amir Kia
Keyword(s):  
Interest Rate ◽  
Transition Period ◽  
Pareto Efficiency ◽  
Rate Of Return ◽  
Price Ratio ◽  
Marginal Rate ◽  
Positive Rate ◽  
Short Run ◽  
Pareto Efficient ◽  
The Interest Rate

This chapter analyses the direct impact of a positive rate of interest (usury) on the production possibility curve. Usury under a stationary state creates inefficiency in the sense that the marginal rate of transformation is not equal to the price ratio. Over the short run Pareto efficiency appears when a transition period is considered and the rate of return moving from one state to another is endogenous and equals the rate of investment. In a non-stationary economy, when a positive rate of return (interest) is equal to the growth rate of the economy, there will be a Pareto-efficient equilibrium. But if the interest rate is exogenous to the system, usury exists, and then Pareto efficiency cannot be achieved under any state, either stationary or non-stationary.

scholarly journals Does the Development of Bioenergy Exacerbate the Price Increase of Maize?

2019 ◽  
Vol 11 (18) ◽  
pp. 4845
Author(s):  
Zhengyi Dong
Keyword(s):  
Oil Prices ◽  
Food Prices ◽  
Biomass Energy ◽  
Price Increase ◽  
Oil Price ◽  
Price Ratio ◽  
Cost Channel ◽  
The Cost ◽  
The Relationship

The relationship between oil prices and food prices is complex, and maize is the most prominent example. Whether the development of bioenergy will exacerbate the price increase of maize caused by the increasing price of oil is a topic that is attracting great attention. This paper studies the relationship between oil prices and maize prices. First, the effects of the development of biomass energy on maize price in theory is analyzed by constructing a theoretical model that includes the effects of the cost channel and the demand channel, while setting the maize–oil price ratio as a trigger for the demand channel. Then, this paper empirically analyzes the price data. Both theoretical and empirical analyses show the effects of the demand channel in the long term; that is, the effect of the development of bioenergy on maize prices is weak, and maize prices did not increase sharply. The effect of the cost channel is the main cause of the increases in the price of maize and other foods.

GENETIC VARIATION IN DIURETIC RESPONSES TO WATER LOADS: DEFINITION OF SOME PARAMETERS OF DIURETIC RESPONSE AND INITIAL RESULTS OF SELECTION FOR THESE PARAMETERS

1965 ◽  
Vol 33 (3) ◽  
pp. 417-428 ◽  
Author(s):  
J. STEWART ◽  
S. G. SPICKETT
Keyword(s):  
Genetic Variation ◽  
Disruptive Selection ◽  
Total Output ◽  
Water Load ◽  
Diuretic Response ◽  
Set Up ◽  
Definition Of ◽  
Response To Water ◽  
The Relationship ◽  
Initial Results

SUMMARY Three parameters of the diuretic response to a water load are defined these are: diuretic lag, rate of diuresis and total output/input. A heterogeneous stock of mice was set up using the strains A/Cam, CBA/FaCam, SF/Cam and Peru. Directional selection was made from this stock for rate of diuresis, and total output/input. The initial generations of selection showed positive and significant parent-offspring regressions and hence demonstrated genetic variation in these parameters. Two positive disruptive selection experiments were set up to explore the relationship between diuretic lag at 4 and 8 weeks of age. These experiments show also that there is genetic variation in diuretic lag and that gene manifestation at 4 weeks and at 8 weeks is different. The genetic variation affecting diuretic response to water load is discussed with respect to concepts of 'normal' physiology.

scholarly journals La configuration des échanges dans un modèle à biens multiples : quelques paradoxes

2009 ◽  
Vol 54 (3) ◽  
pp. 376-383
Author(s):  
F. R. Casas
Keyword(s):  
Free Trade ◽  
Factor Model ◽  
Commodity Prices ◽  
Relative Price ◽  
Factor Endowment ◽  
Factor Intensity ◽  
Distributional Effects ◽  
Technological Characteristics ◽  
The Relationship ◽  
Rule Out

In the framework of a two-good, two-factor model it is evident that the pattern of trade can be inferred from the change in commodity prices resulting from the opening of trade. Thus, if trade increases the relative price of a commodity, we expect that commodity to be exported, while the good whose relative price decreases will be imported. Under certain circumstances however, it may be possible to observe a country importing a commodity even though its free trade relative price is higher than under autarky. The purpose of this paper is to point out that a similar paradox can be established even if we rule out distributional effects of changes in commodity prices on the demand for goods attributable to different tastes. In particular, we focus our attention on a simple three-good, two-factor model with fixed production coefficients. It is well known that when the number of goods exceeds the numbers of factors, a basic indeterminacy exists in the relationship between output levels and relative commodity prices. Our interest lies in establishing that one application of this indeterminacy is that technological characteristics—in particular, the factor intensity ranking of commodities and a country's factor endowment—may result in the reversal of the expected pattern of trade.

SEARCHING FOR THE OPTIMAL LEVEL: INFLATION AND PRICE VARIABILITY IN TURKEY

2019 ◽  
pp. 1-19
Author(s):  
HATICE KARAHAN ◽  
M. EGE YAZGAN
Keyword(s):  
Functional Form ◽  
Optimal Level ◽  
Parametric Estimation ◽  
Relative Price ◽  
Price Variability ◽  
Relative Price Variability ◽  
Price Data ◽  
Large Fluctuations ◽  
Main Item ◽  
The Relationship

This paper explores the relationship between inflation and relative price variability (RPV) in Turkey for the period 2004–2017 to shed further light on the issue with relatively recent data. For this purpose, we use monthly price data for 12 main item groups and 414 specific items thereof. Analyses show that RPV for the period of interest exhibits large fluctuations, being particularly salient in the categories of communications and food. Regarding the underlying functional form, semi-parametric estimation results indicate a U-shaped relationship between inflation and RPV, where the latter reaches its minimum at an inflation level close to 8%.

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