Questions tagged [economic-growth]
An increase over time in the quantity of goods and services produced within an economy.
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questions
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Advanced Macroeconomics complete solution needed
I need complete solution to this problem please. it's really urgent.
0
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1answer
7 views
Endogenous Growth in the case of externalities (Learning by doing)
so for the Learning by doing model productivity is defined as $$A_t=BK_t$$.
Inserting this into the optimum conditions leads us to the following:$$r_t=\alpha BL^{1-\alpha}$$ and $$w_t=(1-\alpha)B^{1-\...
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0answers
16 views
Ramsey Model Market Clearing Condition
I have a problem understanding the market clearing condition for aggregated equilibrium in the Ramsey model.
Market clearing implies that all resources are used up, hence: $Y_t=C_t+I_t$ , where $Y_t$ ...
0
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1answer
18 views
Difference between Luxury/Premium/Value fashion segments? What does “value” mean here?
I was reading this article on Quartz: https://qz.com/1485141/just-20-fashion-companies-are-making-almost-all-of-the-industrys-profits/
I do not understand the following graph shown:
What does "value"...
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1answer
19 views
FDI - Foreign Direct Investment
If in the sector foreign direct investments (FDI) are not stable, for instance, increasing dramatically in one year, decreasing next year. fluctuation continues over ten years, what FDI can say about ...
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2answers
46 views
Does the US Bureau of Economic Analysis use the generic growth formula to calculate percent change of GDP?
My question is so basic, I'm embarrassed to ask it. (I study computational theory, not economics.) I'm looking at quarterly GDP numbers and growth rates. I've tried to arrive at the BEA's CPGDPAI ...
0
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1answer
16 views
How can autonomous private spending change budget surplus?
I was reading Keynesian economics in R.Dornbusch's book where he mentioned the defects of using budget surplus as a measure where he says it can be changed and effected by autonomous private spending ...
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0answers
23 views
Why economy has cycles? [closed]
If the economy growth, why it does it cyclically instead of linearly?
I am looking for an intuitive explanation because the web is full of technical ones.
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0answers
30 views
Which model gives a more accurate representation of growth?
Does the Solow model or the combined Romer - Solow model give a more accurate representation of growth?
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1answer
21 views
Interaction between productivity growth and interest rates
Isabel Schnabel, Member of the Executive Board of the European Central Bank point at the interview out "The real interest rate (...) emerges from the economy’s growth potential in the long run.“ https:...
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0answers
16 views
Equilibrium in currency devaluation?
In export oriented Economy, we often come across currency devaluation as means to boost exports. As per my understanding (please correct me if I am wrong), currency devaluation will immediately bring ...
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4answers
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Macroeconomics for Mathematicians
I'm coming from a math background (so my mind is set up for Definitions-Observation-Lemma-Proof frameworks) and looking for recommendations of a Macroeconomics textbook mainly devoted to growth models ...
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1answer
24 views
Understanding GDP vs Real GDP
I am totally new to Economics. I have issues understanding GDP and real GDP. I have listed 3 statements below, can someone tell me if those makes sense ?
GDP Gross Domestic Product is used to get an ...
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0answers
23 views
When does increasing government spending lead to economic growth and when does it lead to stagflation?
Obviously increasing government spending endlessly will lead to inflation. What I ask is: when can an increase in government spending, when the economy is in a recession, lead to economic growth ...
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0answers
20 views
Regarding global economic slow down
I heard in news that world is going through,the economic slow doing may be because of us China trade war or any other reason. and India is one of the country which affected by this slowdown, but ...
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1answer
25 views
Steady state growth of output
In the long run Solow steady state, the growth rate of output in a country is g + n. If there is some other country with exactly the same properties of the first country and the same initial ...
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1answer
43 views
Would a zero-growth economy with zero-growth population still have the same GDP?
If a country was to turn to a steady-state economy (or circular economy) where there is neither economic nor population growth with time, and there is no natural resources being added to the system ...
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1answer
48 views
In the long run, would a production-possibility curve expand outward if the country preferred more consumer goods than capital goods?
PPC will not expand outward if the country preferred more consumer
goods than capital goods.
The total amount of resources in an economy at any given point of time
is fixed. If a country ...
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2answers
57 views
What would happen to the world GDP if we run out of minerals to mine but not of sources of energy?
I was thinking about how the depletion of minerals (metals and all material we mine from the Earth) will affect the GDP of the world. I read somewhere that at the current extraction rate, we will run ...
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1answer
31 views
Does ownership determine efficiency in an economic system?
what determines efficiency in an economic system?
a) ownership
b) competition
c)both
d) none
I am confused between option (C) and option (B) because I am not sure about whether ownership can be said ...
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1answer
24 views
How would increase labor productivity lead to improved living standards of people in an economy?
I would like to know more about the mechanisms through which higher labor productivity would translate into higher living standards for a population in a given economy.
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0answers
19 views
Solow growth model on firms level
Probably a silly question, but I just have to make sure. I am wondering whether it is acceptable to use the solow / solow-swan growth model to model the growth of firm instead of growth of an economy?
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2answers
38 views
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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0answers
28 views
Is Botswana an industrialized country?
Is Botswana’s strong mining industry sufficient to consider the country as an industrialized economy?
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1answer
32 views
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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0answers
19 views
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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2answers
41 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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1answer
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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
18 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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1answer
22 views
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-...
0
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1answer
24 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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0answers
30 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 ...
0
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1answer
41 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 ...
0
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0answers
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 $$
What would be a better way to ...
0
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2answers
77 views
Question on Central bank loss function interpretation
How do you interpret this central bank’s loss function:
$$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}+\...
3
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0answers
15 views
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
234 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 ...
2
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0answers
51 views
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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0answers
22 views
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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0answers
18 views
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
69 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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2answers
33 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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0answers
16 views
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 ...
0
votes
1answer
29 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$$
Do ...
0
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1answer
24 views
Hep with total differentiation of an AD function [closed]
Is there anyone who can help me with a total differentiation exercize. I am starting with the following formula for AD:
$$x=\mu ^{-1}(g+i+e)$$
Where $\mu$ is the Keynesian multiplier.
And have to ...
0
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0answers
8 views
What are the factors on which value of all resources ( good, silver, cash land etc. ) found in world changes over time?
And followed by, Does it right to say that, if any country become rich then other must become poor and vice-versa. If no, then Is it possible that, in certain conditions, all Nation in the world can ...
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0answers
26 views
Which assets beat the injection of money and why?
Suppose a world in which every year $1.03 ^ Y$ liquidity is injected.
Which assets could perform better than 3% per year?
Growth forecasts for these?
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0answers
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Yield curve inversion and recession
Yield curve inversion is often a sign of a looming recession, but is there an explanation of this phenomenon other than the fact that historically we have seen that the two phenomena were indeed ...
2
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1answer
69 views
Solow Model with a Capital Stock Externality
Suppose we have the following form of the Solow Model: $$ 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 ...
