scholarly journals Fashion and Business Cycles with Snobs and Bandwagoners in a Multi-Sector Growth Model

2017 ◽  
Vol 2 (3) ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Business Cycles ◽  
Growth Model ◽  
Wealth Distribution ◽  
Growth Theory ◽  
Preference Change ◽  
Dynamic Growth ◽  
Income And Wealth Distribution ◽  
Independent Parameters ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

<p>This paper generalizes the dynamic growth model with interactions between fashion, economic growth and income and wealth distribution recently built by Zhang (2016). The modelling of fashion and preference change is inspirited by the economic model of fashion recently published by Giovinazzo and Naimzada (2015). This study introduces fashion into neoclassical growth theory. The original model is based on some ideas in the literature of economics of fashion. This study generalizes Zhang’s model by making all the time-independent parameters as time-dependent parameters. We simulate the motion of the economic system. We carry out comparative dynamic analysis with regard to periodic perturbations in some parameters. We show how exogenous period changes in these parameters lead to business cycles. </p>

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.

scholarly journals Land Value and Rent Dynamics in an Integrated Walrasian General Equilibrium and Neoclassical Growth Theory

2014 ◽  
Vol 61 (2) ◽  
pp. 235-258
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Human Capital ◽  
General Equilibrium ◽  
Dynamic Analysis ◽  
Growth Model ◽  
Growth Theory ◽  
Land Value ◽  
The Rich ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

Abstract This paper is concerned with relationship between growth and land value change. It builds a heterogeneous-households growth model with endogenous wealth accumulation and fixed nondepreciating asset (land) in an integrated Walrasian general equilibrium and neoclassical growth theory. The production side consists of one service sector and one industrial sector. We use an alternative utility function proposed by Zhang, which enable us to develop a dynamic growth model with genuine heterogeneity. The wealth and income inequality is due to household heterogeneity in preferences and human capital as well as the households’ initial wealth. This is different from the standard Ramsey-type heterogeneous-households growth models, for instance, by Turnovsky and Garcia-Penalosa (2008), where agents are heterogeneous only in their initial capital endowment, not in preference or/and human capital. We build a model for any number of types of household and provide a computational procedure for simulating model. For illustration we simulate the model for the economy with three types of households. We simulate the motion of the national economy and carry out comparative dynamic analysis. The comparative dynamic analysis provides some important insights. For instance, as the rich group increases its propensity to save, the GDP and land value are increased. In the long term the group accumulates more wealth, consumes more goods and services and accumulates more wealth. But in the long term the other two groups suffer from the rich households’ preference change as their lot sizes, consumption levels of services and goods, and wealth are all reduced.

scholarly journals ELEMENTS OF THE NEOCLASSICAL GROWTH THEORY

2014 ◽  
Author(s):  
Florina Popa
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
Technical Progress ◽  
Capital Accumulation ◽  
Growth Theory ◽  
Economic Science ◽  
Growth Phenomenon ◽  
New Guidelines ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

One of the relevant components of the contemporary economic science is the economic growth theory, the economic background of the time leading to new guidelines of the research. The neoclassical growth theory - the core of modern analysis - explains how the capital accumulation and technological changes affect the economy, significant for the analysis of the economic growth process being the Solow’s neoclassical growth model. The paper brief describes the elements of the economic growth model developed by Solow, both for the situation when it allows the explanation of extensive growth and that wherein the growth is of intensive nature, as a result of the intervention of exogenous technical progress – a determinant of factors productivity growth. It is highlighted the importance of the exogenous neoclassical model, proposed by Solow, who showed the determinant role of the technical progress in the economic growth phenomenon.

scholarly journals Econophysics and the Entropic Foundations of Economics

Entropy ◽  
2021 ◽  
Vol 23 (10) ◽  
pp. 1286
Author(s):  
J. Barkley Rosser
Keyword(s):  
Business Cycles ◽  
Financial Markets ◽  
Regional Economics ◽  
Wealth Distribution ◽  
Growth Theory ◽  
General Equilibrium Theory ◽  
Income Distributions ◽  
Income And Wealth Distribution ◽  
Power Law Distributions ◽  
Thermodynamic Processes

This paper examines relations between econophysics and the law of entropy as foundations of economic phenomena. Ontological entropy, where actual thermodynamic processes are involved in the flow of energy from the Sun through the biosphere and economy, is distinguished from metaphorical entropy, where similar mathematics used for modeling entropy is employed to model economic phenomena. Areas considered include general equilibrium theory, growth theory, business cycles, ecological economics, urban–regional economics, income and wealth distribution, and financial market dynamics. The power-law distributions studied by econophysicists can reflect anti-entropic forces is emphasized to show how entropic and anti-entropic forces can interact to drive economic dynamics, such as in the interaction between business cycles, financial markets, and income distributions.

scholarly journals Monopolies and perfect competition in Solow–Uzawa’s general equilibrium growth model

2020 ◽  
Vol 12 (4) ◽  
pp. 405-415
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
Perfect Competition ◽  
Growth Theory ◽  
Unique Contribution ◽  
Homogeneous Population ◽  
Market Structures ◽  
Neoclassical Growth Theory ◽  
Equilibrium Growth ◽  
Neoclassical Growth

The purpose of this study is to introduce monopolies to neoclassical growth theory. This unique contribution attempts to make neoclassical economic growth theory more realistic in modelling the complexity of economic growth and development with different types of market structures. This study is based on a few well-established economic theories in the literature of economics. We frame the model on basis of the Solow–Uzawa two-sector growth model. The modelling of monopoly is based on well-developed monopoly theory. We model behavior of the household with Zhang’s concept of disposable income and utility function. The model endogenously determines profits of monopolies which are equally distributed among the homogeneous population. We build the model and then identify the existence of an equilibrium point by simulation. We conduct comparative static analyses in some parameters.

Capital Accumulation, Technological Progress and Environmental Change in a Three-Sector Growth Model

2012 ◽  
Vol 3 (3) ◽  
pp. 1-18
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Environmental Change ◽  
Technological Change ◽  
Growth Model ◽  
Equilibrium Points ◽  
Perfect Competition ◽  
Environmental Taxes ◽  
Growth Theory ◽  
Wealth Accumulation ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

This paper builds a dynamic growth model with wealth accumulation, technological change, and environmental change on the basis of the neoclassical growth theory with an alternative approach to household behavior. The model synthesizes the economic growth mechanism in the neoclassical growth theory, Arrow’s learning-by-doing, and the environmental change in some traditional dynamic models of environmental economics. It describes a dynamic interdependence among wealth accumulation, technological change, and environmental change under perfect competition with environmental taxes. The author simulated the model to demonstrate existence of equilibrium points and motion of the dynamic system. In particular, the author demonstrated effects of changes in the government policy and preference upon both short-run and long-run economic behavior of the system.

scholarly journals Endogenous growth theory and regional development policy

Spatium ◽  
2015 ◽  
pp. 10-17
Author(s):  
Slobodan Cvetanovic ◽  
Milorad Filipovic ◽  
Miroljub Nikolic ◽  
Dusko Belovic
Keyword(s):  
Economic Growth ◽  
Regional Development ◽  
Endogenous Growth ◽  
Driving Forces ◽  
Growth Theory ◽  
Regional Competitiveness ◽  
Endogenous Growth Theory ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

The numerous versions of endogenous explanations of economic growth emphasize the importance of technological change driving forces, as well as the existence of appropriate institutional arrangements. Endogenous growth theory contributes to a better understanding of various experiences with long-term growth of countries and regions. It changes the key assumptions of the Neoclassical growth theory and participates in the modern regional development physiology explanation. Based on these conclusions, the paper: a) explicates the most important theoretical postulates of the theory, b) explains the most important factors of economic growth in the regions in light of the Endogenous growth theory messages and c) emphasizes the key determinants of regional competitiveness which in our view is conceptually between the phenomena of micro- and macro-competitiveness and represents their necessary and unique connection. First of all, micro-competitiveness is transformed into a regional competitiveness; then regional competitiveness is transformed into a macro-competitiveness. In turn, macro - influences the microeconomic competitiveness, and the circle is closed. After that, the process starts over again.

scholarly journals Costly Financial Intermediation in Neoclassical Growth Theory

2011 ◽  
Author(s):  
Rajnish Mehra ◽  
Facundo Piguillem ◽  
Edward C. Prescott
Keyword(s):  
Financial Intermediation ◽  
Growth Theory ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth
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