Questions tagged [economic-growth]
An increase over time in the quantity of goods and services produced within an economy.
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What is the difference between Q4/Q4 and Y/Y GDP growth?
Per US media, the US economy grew 3.1% in 2018 Q4/Q4 and 2.9% in 2018 Y/Y. 2.9% seems the reference number in various databases (World Bank, Reuters, Bloomberg, etc) but what exactly does Q4/Q4 mean ...
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Is Botswana an industrialized country?
Is Botswana’s strong mining industry sufficient to consider the country as an industrialized economy?
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Country specific economic recession/financial crisis data?
Many financial crises are at the global level, yet some of them can be country-specific, especially the ones connected with political instability.
For example, the 1990 recession of Russia, the 1958 ...
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Who are the main proponents of the modernization theory of development?
I know that one of the first forms and defences of the *modernization theory of development" is Rostow's (1960) The stages of economic growth: A non-communist manifesto.
What are other main works ...
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37 views
How can we know how PPF of our country looks like?
PPF of our country is based on potential the most efficient use of our resources, NOT their actual use. The problem is, it's unclear for me how to estimate said potential. How to know where ...
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Is my reasoning about economic growth and environmental sustainability correct?
Below is my attempt to answer question "Can we have economic growth and environmental sustainability?".
Please correct me if I got something wrong in my reasoning.
Let's see what is counted as ...
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1answer
14 views
Attributing Labor Productivity Gains to Capital Deepening vs. Total Factor Productivity Growth
In a traditional Solow-Swan growth model, you can decompose growth in labor productivity (output/hour) into a component stemming from total factor productivity growth and another stemming from capital ...
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Possible “debt-to-…” ratio indicators for debt-to-economic growth relationship?
Suppose we are interested in the relationship between public or external debt and economic growth.
One can look at the debt-to-GDP ratio or debt-to-export ratio.
What may be other possible "debt-...
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23 views
How to calculate Real GDP from quarterly change
How do I calcualte a countries Real GDP from QoQ changes?
Example - Australia
2018 - Real GDP was 1432195178668.32 $Billion
2019 Q1 was 0.5%
2019 Q2 was 0.6%
2019 Q3 was 0.4%
How do I calculate ...
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22 views
Patterns for Gross national income (GDP) measurement, from deals within the borders of a state
I desire to learn patterns for Gross national income (GDP) measurement, from deals within the borders of a state.
I understand that only the following patterns are possible for GDP growth measurement ...
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1answer
40 views
What would happen if someones money would disappear when they die
So suppose that when anyone died all their net worth would be liquidized and the money would be removed from circulation.
how would this affect the economy? I know this question is a bit broad, but ...
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33 views
Modeling market growth, without compound interest or regression
I am working on predicting the growth of a certain market. Traditionally, this is done through a simple compound interest model:
$$ ThisYear'sMarket * (1 + g)^n $$
What would be a better way to ...
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68 views
Question on Central bank loss function interpretation
How do you interpret this central bank’s loss function:
$$L(\hat x, \pi)=\alpha \hat{x}^2+(\pi-\pi^T)^2$$
where $\alpha >0$ and $\hat x$ is output gap.
Phillips curve is $\pi = \theta \hat{x}+\...
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Are there any net benefits in reducing/increasing tourist-oriented retail business?
Hong Kong is currently experiencing a slump in foreign tourist-oriented retail sales. Shops selling jewellery, watches, infant formula or Chinese medicine experienced a 25-35% decline YoY in August.
...
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1answer
233 views
Does everyone prosper through development projects?
Why don't all investors focus their intentions on development projects in less developed countries? Wouldn't this benefit all parties since the recipient country would be more developed and the ...
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Neoclassical Economic Growth Model Shadow Price for Discrete vs Continuous Time
I recently learned about the neoclassical growth model in both discrete and continuous time. The intuitive meaning of the shadow price for both cases is that it represents the value of one additional ...
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Link between recession and decline in investments
I recently followed MIT online lectures for economy and I found this - one of the reason for investments decline in recession is bad expectations about economy -----> leading to Higher capital output ...
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Investments during recession
During Recession, banks loans decrease which leads to financial constraints and ultimately Investment suffers and declines.
my question is - "Are loans lower because of demand or supply?"
My ...
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1answer
58 views
What is the upper limit of circulating money on earth?
I've come up with this question while discussing the topic of customer-perceived value with coworker.
Is there a theoretical upper limit to all circulating money in this world?
To avoid inflation ...
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31 views
what can be the proxy variable for measure of product innovation?
My objective is to prove that international trade leads human capital formation which leads to economic growth. I am regressing GDP on multiple variables among which Human capital is one. According to ...
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Why growth of national income in current prices during inflation not measured in poor sections and poverty alleviation programs?
Here 1) dwindles means reduce, smaller. Here is my doubt: If inflation fluctuates how can we use the word 'dwindles', what it means here? 2) Why the growth rate during inflation not measured in poor ...
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1answer
42 views
Can't we measure the growth in the income levels of poor?
Inflation has been a challenging aspect
of policymaking. In such situations growth in
the income levels of the population living below
the poverty level can never be measured
accurately (due to ...
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1answer
26 views
Derive the growth rate of an equation
I have the following equation:
$$\mu =\left [s_{\pi }-v(s_{\pi }-s_{W})+\zeta \right ]$$
And I have to derive its growth rate, which is:
$$\dot \mu =-\frac{v}{\mu } (s_{\pi }-s_{W})\dot v$$
Do ...
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1answer
23 views
Hep with total differentiation of an AD function [closed]
Is there anyone who can help me with a total differentiation exercize. I am starting with the following formula for AD:
$$x=\mu ^{-1}(g+i+e)$$
Where $\mu$ is the Keynesian multiplier.
And have to ...
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8 views
What are the factors on which value of all resources ( good, silver, cash land etc. ) found in world changes over time?
And followed by, Does it right to say that, if any country become rich then other must become poor and vice-versa. If no, then Is it possible that, in certain conditions, all Nation in the world can ...
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Which assets beat the injection of money and why?
Suppose a world in which every year $1.03 ^ Y$ liquidity is injected.
Which assets could perform better than 3% per year?
Growth forecasts for these?
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Yield curve inversion and recession
Yield curve inversion is often a sign of a looming recession, but is there an explanation of this phenomenon other than the fact that historically we have seen that the two phenomena were indeed ...
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1answer
60 views
Solow Model with a Capital Stock Externality
Suppose we have the following form of the Solow Model: $$ Y_t=K_t^{a+b} L_t^{1-a} $$ where a,b >0, and a+b<1.
Is it possible to determine the steady state growth rate of k (k=K/L), and the steady ...
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21 views
Is a proft tax not distorting unless we know the opportunity cost?
A Profit tax where we actually know the Entire Cost Function Including the Opportunity cost(Time, Incommodation, best alternative for the easily monetized resources etc) is not distorting.
But the ...
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The rationale for using a lagged variable to address endogeneity arising from simultaneous causation?
when there is simultaneous causation between dependent and independent variables often in papers we see a lagged variable being used in place of contemporaneous variable. For example, Clemens, ...
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If an endogenous explanatory variable is serially correlated does it mean that its lags are also endogenous?
in panel data when examining economic growth determinants lags are often used to account for endogeneity of explanatory variables. However if the explanatory variable is serially correlated, does it ...
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1answer
58 views
What is the interpration of results if adding or subtracting a control variable effects the significance of explanotary variables?
I am conducting some regressions on economic growth determinants and I am disillusioned. Essentially by choosing what groups of variable to regress I can get the desired significance. What does this ...
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What is the relationship between economic growth and equality?
Does economic growth create more or less equality?
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Is it reasonable, in panel data, to use past values of explanatory variables as instruments to deal with simultaneous causality?
I am trying to examine the determinants of economic growth, essentially regressing a number of variables upon economic growth. I face a problem that there is likely simultaneous causality between many ...
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42 views
Israel as an Asian Tiger
The Asian Tigers are Asian countries who underwent rapid industrialization and maintained exceptionally high growth rates in the second half of XX century.
The question is: are there any objective ...
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1answer
38 views
Maximizing units under a budget constraint and increasing costs
Consider two columns.
Column A has total cost per day, Column B has units bought that day. The marginal cost of each unit is increasing because of limited supply.
My goal is to estimate total ...
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1answer
43 views
Do patents foster innovation?
I'm looking for a good meta analysis which answers the question if patents are generally beneficial to economy or not. Some papers I've read claim they are indispensable, other say it depends on the ...
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1answer
26 views
Has there been an applications of search and matching theory in the Neoclassical Growth Model?
Specifically, I am looking for the standard neoclassical growth model, but the labour decision is based on either search or matching theory instead of a Walrasian labour mechanism.
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53 views
What is low unemployment and low gdp growth symptomatic of?
Obviously there are caveats with GDP, if you build a bridge to nowhere it counts as GDP, but if you mow your own lawn or volunteer to pick up garbage it doesn't count, and so forth and so on. However, ...
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Typical Growth Model Social Planner Problem
Consider the following social planner's problem, hand-waving the usual assumptions on the preference, technology, endowment, and inelastic supply of labor:
$V(k_o^*)= max_{\{c_t,k_{t+1}\}_{t=0}^{\...
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Growth Model Choices
In a typical macro growth model, a set-up usually concerns with the following trade-offs or choices to be made in each $t$:
(1) $c_t$ v. $c_{t+1}$, consumption today versus tomorrow.
(2) $c_t$ v. $1-...
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Beta convergence: data uncertainties
Maybe these questions are silly for many of you but I’m trying to conduct a beta convergence analysis using data from the Penn World Table, and I have run into some uncertainties.
For the dependent ...
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1answer
440 views
If every company in the economy earns zero economic profit, can they contribute to real economic growth?
I understand that zero economic profit does not equal to zero accounting profit. It means that every resource that goes into the production is perfectly utilized considering alternative uses in the ...
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1answer
54 views
Is there any mainstream criticism of the Benes-Kumhof conclusion that the Chicago Plan would improve the US economy nowadays?
A 2012 IMF Working paper by Benes and Kumhof "The Chicago Plan Revisited
" has this abstract, finding in favor of the Chicago Plan an all counts basically:
At the height of the Great Depression a ...
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5answers
329 views
The economics of a “no deal” Brexit
A "no deal" Brexit is presented in negative terms.
In such a scenario the UK would set tariff schedules in line with trade strategy and protect domestic industry/agriculture with tariff rate quotas.
...
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Are there any studies, academic papers or articles that defy “common” knowledge", i.e that patents give an incentive for R&D to private business?
In Economic Growth and particularly dynamic optimization. My professor taught us that an intertemporal allocation is a dynamic optimum(Pareto Optimum) only if(necessary condition) at any given ...
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Are there economic models that predict (only) a medium/long-term negative effect of protectionism?
Going by some ECB models/estimates from last year, protectionism would result in negative consequences pretty fast, e.g.
For illustration, I will use the results of simulations carried out by ECB ...
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Does migration exacerbate (albeit delay) the problem of aging, economically-inactive populations in Western societies?
As a layman, I've always understood that there is a general consensus amongst economists that "immigration is economically beneficial" to rich Western countries (like Britain) who have aging ...
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How long did it take before the Hawley–Smoot Tariffs reached their peak effect on US growth?
I understand that this may still be a contentious issue, but are there some estimates how long it took before the Hawley–Smoot Tariffs impacted US growth significantly and/or how long it took for them ...
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What is the difference between a growth shock and a productivity shock
In a RBC context, what I mean by growth shock is a total factor productivity shock that follows a stochastic trend $ln(a_t) = ln(a_{t−1}) + \gamma + \epsilon^a_t$.
I.e. the technology $a_t$, has a ...
