Neoclassical Growth, Factor Productivity and Elasticity of Substitution

2012 ◽  
Author(s):  
Ramamohan Rao
Keyword(s):  
Growth Factor ◽  
Elasticity Of Substitution ◽  
Factor Productivity ◽  
Neoclassical Growth

scholarly journals The Greek Great Depression from a neoclassical perspective

2021 ◽  
Author(s):  
Dimitris Papageorgiou ◽  
Stylianos Tsiaras
Keyword(s):  
Great Depression ◽  
Growth Model ◽  
Economic Activity ◽  
Growth Accounting ◽  
Factor Productivity ◽  
Slow Recovery ◽  
Neoclassical Growth Model ◽  
The Great Depression ◽  
Subsequent Period ◽  
Neoclassical Growth

This paper follows the great depression methodology of Kehoe and Prescott (2002, 2007) to study the importance of total factor productivity (TFP) in the Greek economic crisis over the period 2008-2017. Using growth accounting and the neo- classical growth model, the paper shows that exogenous changes in TFP are crucial for the Greek depression. The theoretical model reproduces quite well the decline in economic activity over 2008-2013 and the subsequent period of slow recovery found in the data. Nevertheless, it is less successful in predicting the magnitude of the decline in output and the labour factor. In addition, including financial frictions and risk shocks into the neoclassical growth model, does not significantly improve the model’s performance.

scholarly journals The Sources of Long-Run Growth in Spain, 1850-2000

2009 ◽  
Vol 69 (4) ◽  
pp. 1063-1091 ◽  
Author(s):  
Leandro Prados de la Escosura ◽  
Joan R. Rosés
Keyword(s):  
Growth Factor ◽  
Total Factor Productivity ◽  
Labor Productivity ◽  
Capital Accumulation ◽  
Real Output ◽  
Factor Productivity ◽  
Long Run ◽  
The Impact ◽  
First Time

Between 1850 and 2000 Spain's real output and labor productivity grew at average rates of 2.5 and 2.1 percent. The sources of this long-run growth are investigated here for the first time. Broad capital accumulation and efficiency gains appear as complementary in Spain's long-term growth. Factor accumulation dominated long-run growth up to 1950, while total factor productivity (TFP) led thereafter and, especially, during periods of growth acceleration. The main spurts in TFP and capital coincide with the impact of the railroads (1850s-1880), the electrification (the 1920s and 1950s), and to the adoption of new vintage technology during the Golden Age.

scholarly journals Productivity Growth and Public Sector Employment

1998 ◽  
Vol 42 (2) ◽  
pp. 73-79
Author(s):  
Kong Weng Ho ◽  
Hian Teck Hoon
Keyword(s):  
Public Sector ◽  
Growth Model ◽  
Productivity Growth ◽  
Elasticity Of Substitution ◽  
Neoclassical Growth Model ◽  
High Productivity ◽  
The Public ◽  
Public Sector Employment ◽  
Neoclassical Growth ◽  
Public Share

Our model endogenizes the share of public sector employment in a neoclassical growth model. Under the assumptions that public sector production is labor intensive and the elasticity of substitution between capital and labor is less than one, the public share of employment is shown to decline with a rise in capital per effective worker. Our theory predicts that periods of high productivity growth are associated with a rising trend of the public share of employment. This prediction conforms well with U.S. experience from 1950–1995.

Variable elasticity of substitution and economic growth in the neoclassical model

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Manuel A. Gómez
Keyword(s):  
Steady State ◽  
Elasticity Of Substitution ◽  
Neoclassical Model ◽  
Constant Elasticity ◽  
Neoclassical Growth Model ◽  
Constant Elasticity Of Substitution ◽  
State Income ◽  
Per Capita ◽  
Model Versus ◽  
Neoclassical Growth

AbstractWe study the effect of factor substitutability in the neoclassical growth model with variable elasticity of substitution. We consider two otherwise identical economies differing uniquely in their initial factor substitutability with Variable-Elasticity-of-Substitution (VES), Sobelow or Sigmoidal technologies. If the initial capital per capita is below its steady-state value, the economy with the higher initial elasticity of substitution will feature a higher steady-state income and capital per capita irrespective of whether the production technology is VES, Sobelow or Sigmoidal. Numerical results are provided to compare the effect of a higher elasticity of substitution in the Constant-Elasticity-of-Substitution (CES) model versus the models with variable-elasticity-of-substitution technology.

DYNAMICS OF THE SAVING RATE IN THE NEOCLASSICAL GROWTH MODEL WITH CES PRODUCTION

2008 ◽  
Vol 12 (2) ◽  
pp. 195-210 ◽  
Author(s):  
MANUEL A. GÓMEZ
Keyword(s):  
Phase Diagram ◽  
Growth Model ◽  
Elasticity Of Substitution ◽  
Global Dynamics ◽  
Saving Rate ◽  
Neoclassical Growth Model ◽  
Qualitative Phase ◽  
Diagram Analysis ◽  
Neoclassical Growth ◽  
Nonmonotonic Behavior

This paper characterizes the global dynamics of the saving rate in the neoclassical growth model with CES production. The study is based on qualitative phase-diagram analysis. The analytical conditions characterizing the cases that may arise theoretically depending on the parameters' configuration are obtained. It is well known that the saving rate behaves monotonically if technology is Cobb-Douglas. However, when the elasticity of substitution is nonunitary, the saving rate path may exhibit nonmonotonic behavior.

scholarly journals Endogenous Education and Long-Run Factor Shares

2021 ◽  
Vol 3 (2) ◽  
pp. 215-232
Author(s):  
Gene M. Grossman ◽  
Elhanan Helpman ◽  
Ezra Oberfield ◽  
Thomas Sampson
Keyword(s):  
Technological Progress ◽  
Overlapping Generations ◽  
National Income ◽  
Elasticity Of Substitution ◽  
Growth Path ◽  
Balanced Growth ◽  
Long Run ◽  
Balanced Growth Path ◽  
Factor Shares ◽  
Neoclassical Growth

We study the determinants of factor shares in a neoclassical environment with capital-skill complementarity and endogenous education. In this environment estimates of the elasticity of substitution between capital and labor that fail to account for human capital levels will be biased upward. We develop a model with overlapping generations, technology-driven neoclassical growth, and ongoing increases in educational attainment. For a class of production functions featuring capital-skill complementarity, a balanced growth path exists and is characterized by an inverse relationship between the rates of capital-and labor-augmenting technological progress and the capital share in national income. (JEL D33, E25, J24, O33)

Quantitative Microscopic Comparison of the Organization of the Lung in Transgenic Mice Expressing Transforming Growth Factor-α (TGF-α)

1996 ◽  
Vol 54 ◽  
pp. 14-15
Author(s):  
C. G. Plopper ◽  
C. Helton ◽  
A. J. Weir ◽  
J. A. Whitsett ◽  
T. R. Korfhagen
Keyword(s):  
Growth Factor ◽  
Pulmonary Fibrosis ◽  
Transgenic Mice ◽  
Blood Vessels ◽  
Lung Parenchyma ◽  
Lung Maturation ◽  
Alveolar Air ◽  
Parenchymal Tissue ◽  
Air Space ◽  
Conducting Airways

A wide variety of growth factors are thought to be involved in the regulation of pre- and postnatal lung maturation, including factors which bind to the epidermal growth factor receptor. Marked pulmonary fibrosis and enlarged alveolar air spaces have been observed in lungs of transgenic mice expressing human TGF-α under control of the 3.7 KB human SP-C promoter. To test whether TGF-α alters lung morphogenesis and cellular differentiation, we examined morphometrically the lungs of adult (6-10 months) mice derived from line 28, which expresses the highest level of human TGF-α transcripts among transgenic lines. Total volume of lungs (LV) fixed by airway infusion at standard pressure was similar in transgenics and aged-matched non-transgenic mice (Fig. 1). Intrapulmonary bronchi and bronchioles made up a smaller percentage of LV in transgenics than in non-transgenics (Fig. 2). Pulmonary arteries and pulmonary veins were a smaller percentage of LV in transgenic mice than in non-transgenics (Fig. 3). Lung parenchyma (lung tissue free of large vessels and conducting airways) occupied a larger percentage of LV in transgenics than in non-transgenics (Fig. 4). The number of generations of branching in conducting airways was significantly reduced in transgenics as compared to non-transgenic mice. Alveolar air space size, as measured by mean linear intercept, was almost twice as large in transgenic mice as in non-transgenics, especially when different zones within the lung were compared (Fig. 5). Alveolar air space occupied a larger percentage of the lung parenchyma in transgenic mice than in non-transgenic mice (Fig. 6). Collagen abundance was estimated in histological sections as picro-Sirius red positive material by previously-published methods. In intrapulmonary conducting airways, collagen was 4.8% of the wall in transgenics and 4.5% of the wall in non-transgenic mice. Since airways represented a smaller percentage of the lung in transgenics, the volume of interstitial collagen associated with airway wall was significantly less. In intrapulmonary blood vessels, collagen was 8.9% of the wall in transgenics and 0.7% of the wall in non-transgenics. Since blood vessels were a smaller percentage of the lungs in transgenics, the volume of collagen associated with the walls of blood vessels was five times greater. In the lung parenchyma, collagen was 51.5% of the tissue volume in transgenics and 21.2% in non-transgenics. Since parenchyma was a larger percentage of lung volume in transgenics, but the parenchymal tissue was a smaller percent of the volume, the volume of collagen associated with parenchymal tissue was only slightly greater. We conclude that overexpression of TGF-α during lung maturation alters many aspects of lung development, including branching morphogenesis of the airways and vessels and alveolarization in the parenchyma. Further, the increases in visible collagen previously associated with pulmonary fibrosis due to the overexpression of TGF-α are a result of actual increases in amounts of collagen and in a redistribution of collagen within compartments which results from morphogenetic changes. These morphogenetic changes vary by lung compartment. Supported by HL20748, ES06700 and the Cystic Fibrosis Foundation.

A role for the actin cytoskeleton in the hormonal and growth-factor-mediated activation of protein kinase B

2001 ◽  
Vol 353 (3) ◽  
pp. 735
Author(s):  
K. PEYROLLIER ◽  
E. HAJDUCH ◽  
A. GRAY ◽  
G. J. LITHERLAND ◽  
A. R. PRESCOTT ◽  
...  
Keyword(s):  
Growth Factor ◽  
Protein Kinase ◽  
Actin Cytoskeleton ◽  
Protein Kinase B
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