Copyright 2015. Taylor and Francis. All rights reserved.
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Corporate personality
83
Ridley, Ann, and Chris Shepherd. Company Law, edited by Ann Ridley, and Chris Shepherd, Taylor and Francis, 2015.
ProQuest Ebook Central, .
Created from deakin on 2017-02-
Introduction to Modern Economic Growth
Much of the data used in this chapter comes from Summers-Hestons Penn World
tables (latest version, Summers, Heston and Aten, 2005). These tables are the result of a very careful study by Robert Summers and Alan Hest
Introduction to Modern Economic Growth
9.9. Taking Stock
9.10. References and Literature
9.11. Exercises
453
455
456
Chapter
10.1.
10.2.
10.3.
10.4.
10.5.
10.6.
10.7.
10.8.
10.9.
10.10.
10.11.
10. Human Capital and Economic Growth
463
A Simple Separation
Introduction to Modern Economic Growth
6.9. Taking Stock
6.10. References and Literature
6.11. Exercises
305
306
307
Chapter 7. Review of the Theory of Optimal Control
7.1. Variational Arguments
7.2. The Maximum Principle: A First Look
7.3. Infinite-Horiz
Introduction to Modern Economic Growth
13.5. Taking Stock
13.6. References and Literature
13.7. Exercises
598
600
601
Chapter
14.1.
14.2.
14.3.
14.4.
14.5.
14.6.
14. Models of Competitive Innovations
The Baseline Model of Competitive Innovations
A One-Sec
Introduction to Modern Economic Growth
Assumption 1. (Continuity, Dierentiability, Positive and Diminishing Marginal Products, and Constant Returns to Scale) The production
function F : R3+ R+ is twice continuously dierentiable in K and L, and satisfies
F
Introduction to Modern Economic Growth
18.1.
18.2.
18.3.
18.4.
18.5.
Part 6.
The Bewley-Aiyagari Model
Risk, Diversification and Growth
Taking Stock
References and Literature
Exercises
Technology Diusion, Trade and Interdependences
711
711
711
711
711
713
Preface
This book is intended to serve two purposes:
(1) First and foremost, this is a book about economic growth and long-run
economic development. The process of economic growth and the sources
of dierences in economic performance across nations are som
Introduction to Modern Economic Growth
22.2.
22.3.
22.4.
22.5.
22.6.
22.7.
Chapter
23.1.
23.2.
23.3.
23.4.
Human Capital Accumulation with Imperfect Capital Markets
Income Inequality and Economic Development
Financial Development and Economic Growth
Takin
Introduction to Modern Economic Growth
dierent trajectories which these nations have embarked upon. In other
words, in each case we need a combination of theoretical models and empirical work.
The traditional growth modelsin particular, the basic Solow a
Contents
Preface
Part 1.
xi
1
Introduction
Chapter 1. Economic Growth and Economic Development:
The Questions
1.1. Cross-Country Income Dierences
1.2. Income and Welfare
1.3. Economic Growth and Income Dierences
1.4. Origins of Todays Income Dierences and
Open Economy Macroeconomics, Chapter 2
69
To this end, consider the following parameterization of the model developed in the present chapter:
yt y = (yt1 y) + t ,
with = 0.9, y = 1, and t is distributed normally with mean 0 and standard deviation 0.03. No
Open Economy Macroeconomics1
Martn Uribe2
Stephanie Schmitt-Grohe3
July 13, 2016
1
In preparation for Princeton University Press.
Columbia University and NBER. E-mail: [email protected]
3
Columbia University, CEPR, and NBER. E-mail: stephanie.sch
Open Economy Macroeconomics, Chapter 1
9
Fact 4 (Procyclicality Of The Components of Aggregate Demand) On average consumption, investment, exports, and imports are all positively correlated with output.
By contrast, the trade balance, the trade-balance-to
Open Economy Macroeconomics, Chapter 1
19
when applying the HP filter is that under this filter the trend moves much more closely with the
raw series.
The value of plays an important role in determining the amplitude of the business cycle
implied by the H
Open Economy Macroeconomics, Chapter 1
29
are relatively shorter in emerging countries than in developed countries (16 versus 23.8 quarters).
At the same time, the amplitude of expansions is about the same in both groups of countries (about
20 percent of
79
Open Economy Macroeconomics, Chapter 2
1], where , d > 0 are parameters. Finally, assume that 1 + r = /
form (x) = [exp(x d)
and that (1 + rt1 )D1 /X1 = (1 + r )d.
1. State the households maximization problem.
2. Derive the optimality conditions assoc
59
Open Economy Macroeconomics, Chapter 2
equation (2.28) implies that the standard deviation of consumption changes is given by
c =
In turn, equation (2.25) implies that y
1+r
.
1+r
p
1 2 = . Then, we can write the ratio of the standard
deviation of con
Open Economy Macroeconomics, Chapter 2
49
the long-run the economy settles at a lower level of external debt, whose service requires a smaller
trade surplus. Thus, a positive endowment shock produces a short-run improvement but a long-run
deterioration in
Open Economy Macroeconomics, Chapter 2
39
dt equalized to zero. Combining these expressions to eliminate t yields the following optimality
condition often referred to as the Euler equation
U 0 (ct) = (1 + r)EtU 0 (ct+1 ).
(2.4)
The interpretation of this
Introduction to Modern Economic Growth
are formulated in continuous time and we will also provide a detailed exposition of
the continuous-time version of the Solow model and show that it is often more
tractable.
2.1.1. Households and Production. Consider
Introduction to Modern Economic Growth
a study of economic growth, and can only be answered by developing systematic models of the political economy of development and looking at the
historical process of economic growth to generate data that can shed lig
Introduction to Modern Economic Growth
go hand-in-hand with increasing unemployment (see Exercise 2.13 on this model).
The Solow model demonstrated why the Harrod-Domar model was not an attractive place to start. At the center of the Solow growth model, d
Introduction to Modern Economic Growth
The other key agents in the economy are firms. Firms, like consumers, are
highly heterogeneous in practice. Even within a narrowly-defined sector of an economy (such as sports shoes manufacturing), no two firms are i
Introduction to Modern Economic Growth
firms is to maximize profits. Since we have assumed the existence of an aggregate
production function, we only need to consider the problem of a representative firm.
Therefore, the (representative) firm maximization
Introduction to Modern Economic Growth
Another example of rapid economic growth with falling real wages is provided by
the experience of the Mexican economy in the early 20th century. See GomezGalvarriato (1998). There is also evidence that during this pe
Steel has never
been more
competitive
Fabricated base steel prices are now equivalent to 2007 levels and global
forecasts are for steel costs to remain stable, due to international overcapacity.
A. Steel is a globally traded commodity and prices are set b