Two Algorithms for Computing the Von Neumann Balanced Growth Rate

Econometrica ◽  
1972 ◽  
Vol 40 (4) ◽  
pp. 767
Author(s):  
Roman L. Weil
Keyword(s):  
Growth Rate ◽  
Von Neumann ◽  
Balanced Growth

Balanced growth with von Neumann technology

2019 ◽  
pp. 53-69
Author(s):  
John.M Blatt
Keyword(s):  
Von Neumann ◽  
Balanced Growth

scholarly journals POLICY INTERACTION AND LEARNING EQUILIBRIA

2011 ◽  
Vol 17 (4) ◽  
pp. 920-935 ◽  
Author(s):  
Noritaka Kudoh
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Budget Deficit ◽  
Stable Equilibrium ◽  
Government Revenue ◽  
Balanced Growth ◽  
Policy Interactions ◽  
Endogenous Growth Model ◽  
Multiple Assets ◽  
Growth Equilibrium

This note studies fiscal–monetary policy interactions in an endogenous growth model with multiple assets. The “growth-rate Laffer curve” clarifies an important tension between economic growth and government revenue and reveals that higher economic growth does not always finance a larger budget deficit. There are two Pareto-ranked balanced-growth equilibria, which can both be E-stable. Although fiscal policy can eliminate the expectational indeterminacy, it rules out the equilibrium with a higher growth rate and higher welfare. Near the lower bound of the nominal interest rate, an arbitrarily small budget deficit will select the low-growth equilibrium to be the unique E-stable equilibrium.

Do Prudent Agents Play Lotteries? Von Neumann's Contribution to the Theory of Rational Behavior

2006 ◽  
Vol 28 (1) ◽  
pp. 95-109 ◽  
Author(s):  
Nicola Giocoli
Keyword(s):  
Game Theory ◽  
Set Theory ◽  
100Th Anniversary ◽  
Economic Behavior ◽  
Rational Behavior ◽  
John Von Neumann ◽  
Von Neumann ◽  
Balanced Growth ◽  
The Relationship ◽  
Fixed Point Techniques

The year 2003 marked the 100th anniversary of the birth of John von Neumann (1903–1957), one of greatest geniuses of the last century. Beyond contributing to fields as diverse as set theory, quantum mechanics, atomic energy, and automatic computing, von Neumann has also had a decisive influence upon modern economics. From the invention of game theory to the axiomatization of expected utility, from the introduction of convex analysis and fixed-point techniques to the development of the balanced growth model, the von Neumann heritage can be clearly traced in several areas of our discipline. The aim of this paper is to clarify the relationship between the two concepts of rationality he devised in his classic 1944 book Theory of Games and Economic Behavior, written with the collaboration of the Austrian economist Oskar Morgenstern (von Neumann and Morgenstern 1953).

Anthropogenic climate change in a descriptive growth model

2004 ◽  
Vol 9 (5) ◽  
pp. 645-662 ◽  
Author(s):  
ALFRED GREINER
Keyword(s):  
Growth Rate ◽  
Social Optimum ◽  
Transition Path ◽  
Descriptive Model ◽  
Tax Rate ◽  
Balanced Growth ◽  
Long Run ◽  
The Social ◽  
Global Surface ◽  
Emission Of Greenhouse Gases

This paper studies the effects of global warming in a descriptive model of endogenous growth. It is assumed that deviations from the pre-industrial global surface temperature negatively affect aggregate output. The paper studies the effects of varying the tax rate and of different abatement activities on the emission of greenhouse gases and on the growth rate. We study both effects for the long-run balanced growth rate and for the growth rate of GDP on the transition path. Using simulations, it is demonstrated that higher abatement activities may both reduce greenhouse gas emissions and lead to higher growth. Further, the second-best abatement share is computed and the corresponding growth rate as well as the social optimum.

scholarly journals Government Expenditure Financing, Growth, and Factor Intensity

2016 ◽  
Vol 11 (4) ◽  
pp. 178
Author(s):  
Kuo-hao Lee
Keyword(s):  
Growth Rate ◽  
Income Tax ◽  
Government Expenditure ◽  
Total Output ◽  
Consumption Tax ◽  
Factor Intensity ◽  
Balanced Growth ◽  
Sector Model ◽  
Lump Sum ◽  
Investment Goods

<span lang="EN-US">By shedding light on the factor intensity, this paper incorporates the Romer (1986)-type knowledge spillover technology into the Uzawa (1961, 1963) two-sector model of consumption and investment goods and studies the effect of the ratio of government expenditure to total output on the economic growth rate under three types of tax financing schemes: lump-sum tax financing, income tax financing, and consumption tax financing. We find that a rise in government expenditure with lump-sum tax financing has an ambiguous effect on the balanced growth rate depending on the factor intensity between the sectors. The balanced growth rate decreases (increases) with a rise in government spending if the consumption (investment) goods sector is capital-intensive. Moreover, the result of consumption tax financing is equivalent to lump-sum tax financing, while an increase in the government expenditure with income tax financing reduces the balanced growth rate. Our two-sector model with lump-sum tax or consumption tax financing seems to be able to provide a channel through which to explain the mixed empirical findings.</span>

Effect of a Finite Boundary Junction Mobility on the Growth Rate of Two and Three Dimensional Grains

2012 ◽  
Vol 715-716 ◽  
pp. 574-578 ◽  
Author(s):  
Luis A. Barrales Mora
Keyword(s):  
Growth Rate ◽  
Three Dimensional ◽  
Granular System ◽  
Present Contribution ◽  
Von Neumann ◽  
Model Simulations ◽  
Theoretical Approaches ◽  
Dimensional Network ◽  
Zero Growth ◽  
Good Agreement

t has been shown by computer simulations that the MacPherson-Srolovitz relation predicts accurately the growth rate of a grain undergoing ideal grain growth. However, since a finite mobility of the boundary junctions (triple lines and quadruple junctions) affects the evolution of a granular system, it is necessary to modify this equation in order to take into account their effect. In the present contribution, an equation which allows considering these factors is presented and used to modify the von Neumann-Mullins and MacPherson-Srolovitz equations. In order to corroborate these equations two and three dimensional network model simulations were performed. The results showed a very good agreement with the theoretical approaches for both dimensions and all topological classes except those near the classes of zero growth rate in 3D. The reason is that the proposed function is very sensitive to small changes of the finite mobility of the junctions.

MONETARY RULES AND ENDOGENOUS GROWTH IN AN OPEN ECONOMY

2012 ◽  
Vol 17 (2) ◽  
pp. 431-463 ◽  
Author(s):  
Ching-Chong Lai ◽  
Chi-Ting Chin
Keyword(s):  
Growth Rate ◽  
Endogenous Growth ◽  
Open Economy ◽  
Inflation Rate ◽  
Salient Feature ◽  
Income Growth ◽  
Money Growth ◽  
Balanced Growth ◽  
Nominal Income ◽  
Inflation Rate Targeting

This paper develops a monetary endogenous growth model for an open economy. The salient feature of the model is that it is able to deal with various monetary policy rules, including money growth rate targeting, inflation rate targeting, and nominal income growth rate targeting. It is found that a rise in the pegged rate may either increase or decrease the balanced-growth rate under regimes of both money growth rate targeting and nominal income growth targeting. However, a rise in the pegged rate is sure to depress the balanced-growth rate under the regime of inflation rate targeting. It is also found that money growth rate targeting is fundamentally equivalent to nominal income growth rate targeting if a specific restriction is imposed, and inflation rate targeting is not qualitatively equivalent to either money growth rate targeting or nominal income growth rate targeting.

RELATIVE WEALTH, GROWTH, AND TRANSITIONAL DYNAMICS: THE SMALL OPEN ECONOMY CASE

2010 ◽  
Vol 14 (S2) ◽  
pp. 224-242 ◽  
Author(s):  
Walter H. Fisher
Keyword(s):  
Growth Rate ◽  
Open Economy ◽  
Capital Accumulation ◽  
Small Open Economy ◽  
Temporary Increase ◽  
Financial Assets ◽  
Consumption Tax ◽  
Balanced Growth ◽  
Relative Wealth ◽  
Domestic Capital

In this paper we investigate the growth implications of relative wealth preferences in a small open economy model. Domestic capital accumulation, subject to installation costs, is the engine of economic growth in this framework. Crucial in deriving the balanced growth rate is the effective rate of return that arises from agents' status preferences. This results not only in a common balanced growth rate for consumption, the domestic capital stock, and net international financial assets, but also saddle-path dynamics in response to structural shifts. We investigate the short- and long-run dynamics of the model by considering the following standard fiscal shocks: (i) government expenditure, (ii) capital tax, (iii) tax on international financial assets, (iv) consumption tax. Among our results, we find that a permanent fiscal expansion leads to a temporary increase in growth and that a rise in the consumption tax results in a temporary decrease in growth.

ON THE DYNAMIC EFFICIENCY OF BALANCED GROWTH PATHS IN AN ENDOGENOUS GROWTH SETTING

2016 ◽  
Vol 21 (8) ◽  
pp. 1837-1856 ◽  
Author(s):  
Elena Del Rey ◽  
Miguel-Angel Lopez-Garcia
Keyword(s):  
Growth Rate ◽  
Endogenous Growth ◽  
Overlapping Generations ◽  
Physical Capital ◽  
Marginal Product ◽  
Dynamic Efficiency ◽  
Growth Path ◽  
Balanced Growth ◽  
Balanced Growth Path ◽  
Laissez Faire

In overlapping-generations economies with life-cycle saving and exogenous growth, the laissez-faire equilibrium balanced growth path fails in general to achieve optimality, but is dynamically efficient if the marginal product of physical capital is greater than the growth rate of the economy. In this paper, we accommodate the concept of dynamic (in)efficiency in an overlapping-generations economy with endogenous growth due to human capital accumulation. We show that the condition that the marginal product of physical capital is larger than the growth rate of the economy is necessary but no longer sufficient for the dynamic efficiency of the laissez-faire equilibrium balanced growth path.

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