Econ_4730_F2008_Take_Home_Prelim_Pt._A_Exam

Econ_4730_F2008_Take_Home_Prelim_Pt._A_Exam - the former is...

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Econ 4730 F 2008 (10/6/2008) Take Home Part A Econ 4730 F2008 Take Home Prelim (Part A) (Answer SUCCINCTLY ; instruction for submission pending ) I. Explain (1) (10%) how did Alwyn Young (also Kim and Lau) use the ‘Solow residuals’ to question both: (a) the success in growth by Korea, Taiwan, Hong Kong and Singapore, and (b) the benefit of trade to economic development?. (2) (20%) how can one disagree with the evaluation of development by ‘Solow residuals’, even though the growth of Korea, Taiwan, Hong Kong and Singapore in 1980s was, (a) not sustainable forever in principle, and (b) soon came under the impact of the Crisis 1997-8? Specifically, i. both explain how (a) and (b), each obtains, independent of ‘Solow residuals’, ii. and show the use of ‘Solow residuals’ in the catching up process would under-estimate productivity gain in industry-launching mis-identify star-performers in economic development. (3) (10%) how is it that between the use of ‘Solow residuals’ and the benchmark model,
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Unformatted text preview: the former is adequate to explain the economy of the Soviet Union and the latter is necessary to describe the economy of Japan, between 1950 when both had high saving and investment, and 1990 as the Soviet economy imploded and the Japanese growth decelerated. [Keeping in mind that one case maybe characterized as isolated growth under the terminal impact of creative destruction , while the other has to be described under interdependent development, with an exhaustible technology backlog ] (4) (10%) how over the period of 1950-1990 does an inward-looking, open economy compare against (a) Japan, an outward-looking open economy , and (b) Soviet Union, a closed economy , judging from enjoying technology spill-over, or facing the threat of creative destruction (like accumulating equipment in obsolete technology, for goods of outmoded designs). Econ 4730 F 2008 (10/6/2008) Take Home Part A...
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Econ_4730_F2008_Take_Home_Prelim_Pt._A_Exam - the former is...

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