Questions tagged [economic-growth]
An increase over time in the quantity of goods and services produced within an economy.
337
questions
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0answers
14 views
Calculating 2 year CAGR CTG (Contribution to Growth)
DATA
Year
Q
P
Sales
2018
100
5
500
2019
125
7
875
2020
130
10
1300
2021
132
11
1452
CTG 2020-2021
YoY 2020
48.6%
Q
-2.5%
P
-34.4%
YoY ...
1
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1answer
27 views
Why does HDI use log-transformed data for income index?
For calculation of HDI, the Income Index used is $\mathrm{I_{income} = \dfrac{ln(Income) - ln(min Income)}{ln(max Income) - ln(min Income)}}$. Why is the log transformed income used here? World Bank ...
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0answers
14 views
In the Solow growth model, assume all the standard assumptions hold, except now population is constant and depreciation rate of capital is zero [closed]
a. There are two steady states
b. Capital and capital per worker grow at the same rate
c. In the steady state, investment is equal to the depreciation rate
d. Aggregate savings are larger than ...
2
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2answers
189 views
Does investing in the stock market contribute to economic growth?
I am morally opposed to economic growth: I think that for the good of our planet we need to be shrinking human impact in pretty much every way, not increasing it.
If I invest in the stock market, I ...
-1
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1answer
102 views
Will economic discrepancy between democratic and authoritarian states decrease over time? [closed]
The most popular explanation for the economic discrepancy between different states is that in the authoritarian states the leaders need corrupt extractive institution to preserve their power. However, ...
0
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2answers
49 views
How should I regress income inequality on economic growth?
I would like to know which variables to use to regress income inequality on economic growth. For income inequality, I am thinking of using the Gini index, but don't know what measurement exactly.
For ...
7
votes
1answer
89 views
How to get this Production Function in Growth Rates
I'm struggling to understand how Khan & Reinhart (1990) go from the next production function.
$$y=A f(K,L,Z)$$
Where $y$ is the production of the economy, $A$ is a variable which contains the ...
2
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1answer
52 views
Human Capital Vs TFP
I'm interested in familiarizing myself with some of the intra-debates that have occurred over the years, having to do with Mankiw, Romer, Weil (1992) and Klenow, Rodriguez-Clare (1997). Some argue ...
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0answers
9 views
Help to find China Data
do you know where can I find data about the R&D expenditure of china from 1976 until 2020?
1
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1answer
29 views
Is GDP the market value of goods consumed or goods produced in a time period?
Definitions across various resources state that GDP is the market vaue of all goods 'produced' in a certain time period. But while calculating GDP by expenditure method, consumers' spending is one of ...
2
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1answer
51 views
Measuring growth rate when values are negative
I am studying nightlights data and trying to model cross-sectional convergence in nightlights in India. However data has some stray light corrections, which has made some of the measurements below ...
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0answers
68 views
Solow model - max steady state output per worker vs max steady state consumption per worker
$$Y=K^{1/3}G^{2/9}(AL)^{4/9}\\\frac{\dot{A}}{A}=\frac{\dot{L}}{L}=0.01\\\dot{G}=tY-0.03G\\\dot{K}=0.2(1-t)Y-0.03K$$
So far, we have a system that shows a basic Solow model with public and private ...
4
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0answers
60 views
Neoclassical Two-Sector Model of Endogenous Growth: Getting the consumption growth rate
I'm struggling to derive the growth of consumption from a two-sector model with the traditional Cobb-Douglas function. The model I am speaking about incorporates the fractions used by physical and ...
0
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1answer
34 views
Transitional Dynamics of consumption per capita in solow model
I can write the transitional dynamics of output per capita as follows
$$y=f(k)$$
Take its derivative with respect to time t
$$ \dot{y} =f’(k) \dot{k}$$
Divide it by $k/k$
$$ \dot{y} =f’(k) \frac{\dot{...
1
vote
1answer
154 views
Why is South Korea classified as an Emerging Market economy?
I have recently found out that South Korea is part of the MSCI Emerging Markets Index, and that the South Korean Won (KRW) currency trades as a non-deliverable currency. Furthermore, the South Korean ...
1
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1answer
28 views
Formalizing unorganized Sector
This is a fairly basic question. What are the real benefits of formalizing the unorganized sector? What does integrating these into the organized sector achieve other than maybe increased tax revenue ...
0
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0answers
38 views
How do I work with the growth accounting framework in a regression?
I am currently writing my master's thesis with the topic "The impact of digitalization on economic growth in China and Germany".
My idea is to take a technology such as Industry 4.0, IoT or ...
5
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1answer
161 views
Derivation of Surplus in Paul Romer's paper on “mathiness”
In this paper by P. Romer https://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.p20151066
I'm wondering the Surplus $S$ was derived.
By using the given condition I found that $$q_0=m^{-\tfrac{1}{a+b}}N^{-\...
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0answers
13 views
Regression based on the Solow Model
If we have the following regression based on the Solow model:
log(yi) = β0 + β1 * log(si) + β2 * log(ni + gi + δi ) + ei
And we know that based on:
y* = 〖(s/(n + δ + g))〗^(α/(1-α))
log(y*) = α/(1-α) * ...
0
votes
1answer
40 views
Is this a total derivative - if yes, why minus
This is the beginning of the derivation of equation of motion from the Solow model (Romer, 2019):
My question is: is this the total derivative (w.r.t. ultimate source of change "t")? If yes,...
1
vote
1answer
42 views
What was the cause of the decline in remittances sent to Pakistan between 1982 and 2000?
I am trying to find out what caused the 2-decade long decline in remittances as a % of GDP. I have spent an hour trying to search for explanations but haven't found anything. I know its a long shoot ...
1
vote
1answer
40 views
How can the GDP's growth rate be positive, when the GDP decreases?
I have question about following charts in Mozambique. Here is GDP of Mozambique in 2010-2016 - https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2019&locations=MZ&start=2008. You can ...
2
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1answer
24 views
Resolution - Ramsey growth model with per capita variables
Let's say that we have the sum of the utility of a social planner
$$\int_{0}^{\infty}U\left(C\right)e^{-\rho t}dt$$
where $C$ is the total consumption. If we want to write this by a per capita ...
2
votes
1answer
104 views
If protectionist policies hinder economic growth, why do we need border taxes at all?
I understand that free movement of labour and goods are a net positive for economic growth, and protectionist policies, which would make exports and imports harder would not be.
But if this is the ...
1
vote
1answer
65 views
What would happen in a modern economy if growth plateaus?
According to a Wikipedia article on a United Nations report,
The UN Population Division report of 2019 projects world population to continue growing, although at a steadily decreasing rate, and to ...
3
votes
1answer
119 views
Empirical justification for a constant-returns-to-scale production function in the Solow model
I am currently learning the Solow model of growth, where a constant returns to scale production function for the economy is assumed. I realise that the assumption makes further analysis much simpler, ...
0
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1answer
49 views
Why doesn't stock market help to boost the economic growth directly?
For example, during the recession, the central bank often goes to buy financial instruments that are riskier than government bonds (such as corporate bonds)- which is called "quantitative easing&...
7
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6answers
661 views
How can the stock market keep growing indefinitely?
It sounds like a dumb question, but there is only so much money in the world. Assets can grow, but money can only be printed. So if there is 400 trillion dollars worth of money in the world, and the ...
5
votes
2answers
2k views
Is investment in real estate a real investment?
In the book The Financial Crisis and the Free Market Cure in chapter 3 author said that investment in real estate is not really investment.
It is jobs that create ...
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0answers
8 views
Could you guys recommend lecture notes or papers that show the step by step of the uzawa-lucas growth model?
I have to study the differences between the model of uzawa-lucas, solow and harrod-domar, so if you guys could reccomend me something to study the uzawa-lucas model, with an easy lecture notes to ...
2
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1answer
46 views
Models with Learning by Doing and Knowledge Spillovers - Barro, Sala-i-Martin (2003)
Consider the model of endogenous growth with learning by doing and knowledge spillovers presented in Barro & Sala-i-Martin (2003), chapter 4, section 4.3, starting in page 212. In equilibrium, the ...
3
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3answers
58 views
Theoretical economy calculation of closed country
Is there any well-known theoretical solution to the problem as described below? I am considering an ideal very simplified case.
There is a closed country/community of N people. All people are working. ...
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0answers
28 views
When is the upward economic convergence in the EU estimated to happen?
Although the regional cohesion, i. e. the socio-economical convergence of the East and the West has been one of the EU's main goals, some economists seem to dispute there's any evidence for them being ...
0
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1answer
84 views
Why, theoretically, is economic growth exponential? [closed]
Despite the experimentally well-observed exponential nature of GDP growth, I've never actually seen a theoretical reason or "prediction" why it should be so.
(Even if the answer is "...
1
vote
1answer
25 views
Are business cycle fluctuations usually studied in a (New Keynesian) DSGE model, or can they also be studied in a growth model?
I wonder if business cycle fluctuations are usually studied in a (New Keynesian) DSGE model, or can they also be studied in a growth model?
0
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1answer
42 views
How to determine a corner solution? Growth Model
I'm working on a paper called "Fertility clubs and economic growth" of Ahituv and MOav (linked below) and arrived at this point:
The paper shows three optimal conditions respect to ...
2
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1answer
41 views
AR(1) in Discrete Version of Stochastic Growth Model
If I assume a stochastic growth model in discrete time and the production function is defined as $F(K_{t}(s^{t-1}), L_{t}(z^{t}))$ where $z^{t}$ is history of the technological shock up to time $t$. A ...
0
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1answer
27 views
Calculating Per Capita
This is in reference to https://fred.stlouisfed.org/series/M2
My question is how can i calculate the M2 value on per capita basis? Do i just divide it with the population by year?
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0answers
22 views
Is there contradiction between ''job creation“ and ”growth" as implemented by automation?
Joint goals of job creation and sustainable growth are the main goals of majority of EU funding schemes. E.g. European Innovation Institute explicitly states in its mission https://eit.europa.eu/who-...
3
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1answer
93 views
Neutral technical progress
Recently I learnt that Cobb-Douglas production function has elasticity of substitution equal to 1, therefore it has neutral technical progress. Then Leontief production function has zero elasticity of ...
1
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1answer
23 views
Theory behind financial flows not going to the most developing nations even though they have the highest growth rates
I remember reading a bunch of articles on this a few years ago, but I can't find any of the references any more.
It has been a while since I looked at this, so here is a rough paraphrase of the ...
1
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1answer
45 views
Does Direct Benefit Transfers make an economy poorer?
Printing money and giving to the poor causes inflation.
Increases demand and hikes prices. This is basically certain.
But on the contrary, a paper titled Debunking the Stereotype of the Lazy Welfare ...
36
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10answers
9k views
Why do we need to “get the economy moving again”?
Sorry I have no background in economics but as a computer programmer, I specialise in building models out of simple math and logic, so I hope we can speak the same language without having to get into ...
2
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4answers
237 views
How can people save in a equilibrium economy?
Two people on a desert island:
John produces 100kg potatoes and sells them to Paul for \$100. Paul catches 100kg fish and sells it to John for \$100. GDP is \$200\$, right?
Next year, they improve ...
3
votes
2answers
70 views
“If markets are competitive, the rate of return on capital equals its marginal product, $f'(k)$ minus depreciation $\delta$”?
Consider Solow model with $Y=(AL)^{1-a}K^a$. Then output per effective labor is $y=k^a$ where $k=\frac{K}{AL}$.
"If markets are competitive, the rate of return on capital equals its marginal product,...
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2answers
58 views
Is there any fundamental reason that output elasticity of capital $<1$ in general?
In Solow growth model, if one perturb the saving, there is convergence of old equilibrium capital to new equilibrium capital as investment breaking point capital is attractor.
However, in derivation ...
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0answers
23 views
In Solow growth model, increasing consumption drops production which should measure GDP?
Consider Solow growth model $Y=F(K,AL)$ where $A$ measures knowledge progress, $K$ is capital and $L$ is label. I have suppressed temporal dependence. I am going to assume $L$, $A$ grow exponentially ...
1
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1answer
98 views
What is the relationship between population growth and economic growth?
Population Growth is only one of several factors of influence on economic growth but it is not strictly necessary for the economy to grow. I have also heard of the term called the population bonus - ...
3
votes
3answers
77 views
Proving a result In Jones (1999) “Growth: With or Without Scale Effects”
Jones (1999) builds his semi-endogenous growth model where output is produced with only one input, labour, in the following "research" function:
$$ Y = A^\alpha L_Y $$
Labour is augmented with ...
2
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1answer
83 views
Research question formation
I am in the process of starting a research paper (for those in the IB Board, this is the Extended Essay) and I had previously formed my research question like this:
To what extent will factor x ...
