Analyzing the Role of the Permanent and Temporary Shocks in Peru Using the Co-Movements Approach

In this study, we use the co-movements approach to examine the role of permanent (common trend) and temporary (common cycle) shocks on per capita output, per capita consumption, and per capita investment in Peru, a small open commodity-based economy. Using quarterly data from 1993: Q1 to 2019: Q1, the effects of the temporary shocks are short-lived, and, on average, are a minor source of the variations of macro time series, over 10 quarters. This evidence suggests that the main source of per capita output and per capita consumption variations is the common trend shock which must be related to the 1990s reforms. Moreover, per capita output and per capita consumption are less responsive to unfavorable (favorable) common cycle shocks than per capita investment is. This outcome indicates that per capita investment has a much more volatile cycle than per capita private output and per capita consumption which is consistent with a previous empirical work.

Analyzing the Role of the Permanent and Temporary Shocks in Peru Using the Co-Movements Approach

In this study, we use the co-movements approach to examine the role of permanent (common trend) and temporary (common cycle) shocks on per capita output, per capita consumption, and per capita investment in Peru, a small open commodity-based economy. Using quarterly data from 1993: Q1 to 2019: Q1, the effects of the temporary shocks are short-lived, and, on average, are a minor source of the variations of macro time series, over 10 quarters. This evidence suggests that the main source of per capita output and per capita consumption variations is the common trend shock which must be related to the 1990s reforms. Moreover, per capita output and per capita consumption are less responsive to unfavorable (favorable) common cycle shocks than per capita investment is. This outcome indicates that per capita investment has a much more volatile cycle than per capita private output and per capita consumption which is consistent with a previous empirical work.

Increased inequalities of per capita CO2 emissions in China

Designing inter-regional and inter-provincial responsibility-sharing mechanisms for climate change mitigation requires the knowledge of carbon distributions. This study is the first to use a two-sector (i.e., productive and household sectors) inequality decomposition approach to examine the regional, provincial, and national inequalities of per capita CO2 emissions (CPC) in China, as well as their determinants. We show that the CPC inequality index in China increased from 1.1364 in 2000 to 2.3688 in 2017, with the productive sector accounting for 91.42% of this expansion and households responsible for the rest. The production-side per capita output level, energy efficiency, energy structure, and industrial structure explain 69.01%, 12.81%, 5.57%, and 4.03% of these inequalities, respectively. Further, the household per capita energy consumption and energy structure explain only 8.12% and 0.46%, respectively. Therefore, future responsibility-sharing mechanisms for climate mitigation need to be formulated taking mainly the productive sector into account.

The economic analysis of instrument variables estimation in dynamic optimal models with an application to the water consumption

This study examines one of the most important issues in water economic research, namely, the nexus between water consumption and economic growth. Water consumption is determined by the intersection of endogenous growth function and water consumption function, neither function can be consistently identified by comparing average quantities of water consumed at different values of observed real per capita output. The contribution of this study is an investigation of the endogenous nexus between economic output and water consumption. Water consumption function is derived using an optimal dynamic equilibrium model. Two instrument variable models are proposed with real per capita economic output specified as a function of institutional reform and urbanization, which are used to examine the nexus among water consumption, reform, urbanization, and economic growth in Guangzhou, China.

The effects of migration and pollution on cognitive skills in Caribbean economies: a theoretical analysis

This work examines the interaction between demographic features and environmental constraints in Caribbean small island developing states. Specifically, it aims to clarify human capital dynamics when migration and environmental quality matter. To do so, two main ingredients are introduced in an overlapping generations model: countries may benefit from migration through a brain gain or remittances, and production emits pollution that hinders the accumulation of human capital. Two cases emerge from the analysis. In the first case, an environmental policy is sufficient to correct the externality, and migration should stay at a relatively low level. In the second case, if pollution emissions are high relative to the effectiveness of environmental policy, migration leads to an increase in per capita output and human capital. This only happens if the emigration rate is already high, because it leads to a reduction in demographic pressure on the environment.

AUTOMATION, STAGNATION, AND THE IMPLICATIONS OF A ROBOT TAX

We assess the long-run growth effects of automation in the overlapping generations framework. Although automation implies constant returns to capital and, thus, an AK production side of the economy, positive long-run growth does not emerge. The reason is that automation suppresses wage income, which is the only source of investment in the overlapping generations model. Our result stands in sharp contrast to the representative agent setting with automation, where sustained long-run growth is possible even without technological progress. Our analysis therefore provides a cautionary tale that the underlying modeling structure of saving/investment decisions matters for the derived economic impact of automation. In addition, we show that a robot tax has the potential to raise per capita output and welfare at the steady state. However, it cannot induce a takeoff toward positive long-run growth.

A sector-level analysis of output club convergence in case of a global economy

PurposeThis paper investigates the per-capita output club convergence in case of 120 countries for the period 1995–2015. Further, we disaggregate per-capita output into three broad sectors such as agriculture, industry, and service and investigate the convergence hypothesis.Design/methodology/approachThe paper tests this hypothesis using the Phillips and Sul panel club convergence technique.FindingsOur findings are as follows: (1) our results indicate the evidence of output divergence for the full sample; (2) when countries are divided into different clubs, the results exhibit the sign of per capita output club convergence both for aggregate and three major sectors. Further, this study confirms that industry's per capita output is the main driver for aggregate per-capita output club convergence in case of club 1. For club 2, agriculture's per capita output is a primary source for aggregate per capita output club convergence. Likewise, in the case of clubs 3 and 4, we find the service sector's per capita output is the main component for aggregate per-capita output club convergence; (3) both the service and industry sectors are major drivers for aggregate per-capita output club convergence.Practical implicationsThis study suggests to the policymaker that sector-specific policies need to be adopted to boost the per-capita output growth by improving the performance of each of the sectors across the countries.Originality/valueNotwithstanding, there are many studies that examine the output convergence using a notion of beta and sigma convergence, but studies regarding per capita output club convergence both at the aggregate and sectoral level are scanty.

Spatial Heterogeneity of the Impact Factors on Gray Water Footprint Intensity in China

The gray water footprint intensity represents the amount of freshwater resources that need dilution of pollutants per unit of economic output, which indicates the relationship among water pollution, water resources and economy. In this paper, the gray water footprint of 31 provinces (autonomous regions) in China was estimated based on different water bodies. The spatial pattern and spatial agglomeration characteristics of gray water footprint in China from 2000 to 2014 were explored from the perspective of spatial autocorrelation. By extending the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model, the impact of the total population, urbanization rate, per capita output value, the proportion of the tertiary industry, environmental pollution control intensity and R&D investment intensity on the degree of gray water footprint intensity are explored, with ridge regression analysis to solve the problem of collinearity affecting factors. Meanwhile, the Geographically Weighted Regression (GWR) model is used to detect the spatial heterogeneity and spatio-temporal variation characteristics of the factors influencing gray water footprint intensity among regions. The study found that from 2000 to 2014, the gray water footprint of 31 provinces and cities in China was unstable; the domestic gray water footprint accounted for the largest proportion; the agricultural gray water footprint was mainly derived from nitrogen fertilizer, and the industrial and domestic gray water footprint was mainly derived from ammonia nitrogen. Water pollution varies from east to west. The total intensity of gray water footprint shows a downward trend, which is related to economic development and improvement of technological level. There is a positive correlation between the urbanization rate and the intensity of the gray water footprint. The total population, the per capita output value, the proportion of the tertiary industry, the intensity of environmental pollution control, the intensity of R&D input and the intensity of the gray water footprint are negatively correlated, and the influencing factors boast obvious spatial heterogeneity. The purpose is to reveal the key factors influencing gray water footprint intensity to ensure the sustainable development of economy, resources and environment through the formulation of regional differences in regulation and control policies.

Measuring Economic Growth and Development

Economic development is thus a multivariate concept; hence there is no single satisfactory definition of it. Development is conventionally measured as economic growth with level of development in the process of size of economy. A country's economic health can usually be measured by looking at that country's economic growth and development. Most of the economists clamored for dethronement of GNP and define development in terms of removal of poverty, illiteracy, disease and changes in the composition of input and output, increase in per capita output of material goods.