Uzawa(1961) s Steady-State Theorem in Malthusian Model
|
|
- Junior Cox
- 5 years ago
- Views:
Transcription
1 MPRA Munich Personal RePEc Archive Uzawa(1961) s Seady-Sae Theorem in Malhusian Model Defu Li and Jiuli Huang April 214 Online a hp://mpra.ub.uni-muenchen.de/55329/ MPRA Paper No , posed 16. April 214 4:4 UTC
2 Uzawa(1961) s Seady-Sae Theorem in Malhusian Model Defu Li School of Economics and managemen, Tongji Universiy Jiuli Huang TEDA College, Nankai Universiy April 214 Absrac: This paper proves ha here is a similar Uzawa (1961) seady-sae growh heorem in a Malhusian model: If ha model possesses seady-sae growh, hen echnical change mus be purely land-augmening and canno include labor augmenaion. Keywords: Malhusian Model, Neoclassical Growh Model, Uzawa s Seady-Sae Theorem JEL Classificaions: O33;O41 Corresponding Auhor: Defu Li jldf@ongji.edu.cn, Tel: , Fax: Posal Address: School of Economics and Managemen, Tongji Universiy, 1239 Siping Road, Shanghai 292, China. 1
3 Uzawa(1961) s Seady-Sae Theorem in Malhusian Model 1. Inroducion Uzawa s heorem (1961) says ha for a neoclassical growh model o exhibi seady-sae growh, he echnological progress mus be Harrod-neural (purely labor-augmening). This resul raises he quesion as o why echnological progress canno be, say, Hicks neural or Solow neural. Many have explicily asked his quesion (see Fellner, 1961; Kennedy, 1964; Samuelson, 1965; Drandakis and Phelps, 1966; Acemoglu, 23, 29; Barro and Sala-i-Marin, 24; Jones, 25; Jones and Scrimgeour, 28) wihou achieving a clear answer, leaving he issue o be a puzzle for he growh heory. However, he above lieraure only discussed he requiremens for he neoclassical growh model concerning he direcion of echnical change. Does a Malhusian model (Malhus, 1798; Ricardo, 1817) also require limiing he direcion of echnical change along a seady-sae growh pah? While here seems o be no lieraure abou his quesion, i is imporan no only for an in-deph undersanding of he Malhusian model iself, bu also for solving he quesion as o why he neoclassical growh model mus limi he echnical change o be Harrod-neural along a seady-sae growh pah. Specifically, by comparing he wo ypes of environmens we can find ou wheher he resricion on he direcion of echnical change in seady-sae growh is special o he neoclassical growh model, or is required in oher models oo. Kremer (1993) consrucs and empirically ess a model of long-run world populaion growh combining he idea ha high populaion spurs echnological change, as implied by many endogenous growh models, wih he Malhusian assumpion ha echnology limis populaion. Lucas (22) resaed he Malhusian model in a neoclassical framework and proved ha even wih echnological progress and capial accumulaion, susained growh of per-capia income canno be achieved in ha environmen. While hese papers discussed he effecs of echnological progress in a Malhusian world, hey did no ask wheher a Malhusian model requires limiing he direcion of echnical change o generae seady-sae growh. Irmen (24) poined ou he srucural similariies beween he Malhusian and he Solow (Solow, 1956) models, bu did no address he aforemenioned quesion eiher. Differen from he above lieraure, his paper focuses precisely on ha quesion. To his end, by using he same mehod as Schlich (26), his paper proves ha for a Malhusian model o exhibi seady-sae growh, echnical change mus be purely 2
4 land-augmening and canno include labor augmenaion. 2. The Malhusian Model Consider an economy wih a neoclassical producion funcion F. In paricular, his funcion relaes, a any poin in ime, he quaniy produced, Y(), o labor inpu L() and land inpu T() and is characerized by consan reurns o scale in hese inpus. Due o echnological progress, i shifs over ime, and we wrie: Y( ) F[ T( ), L( ), ] (1) wih F( T, L, ) F( T, L, ),for all 4 (, L,, ) R T (2) Land inpu, T, grows exponenially a rae : T( ) e T, (3) If =, hen he land is invarian. Bu even hough >, he key resul of Malhusian model will sill be valid. The labor inpu, L, change over ime according o he Malhusian assumpion ha populaion growh depends on he level of income per capia. The higher ha level is, he higher is he birh rae and he lower he moraliy rae, implying a higher rae of populaion growh. Le n () denoe he oal populaion growh rae, and b () and d () he birh and moraliy rae, respecively. Le per-capia income be given by ) Y( ) / L( ). Then he populaion growh funcion is defined as n( ) b[ )] d[ )], b ( )/ ), d( )/ ) (4) From equaion (4), i is obvious ha n( ) b[ )] d[ )] ) ) ) (5) 3 Seady-sae Theorem in he Malhusian Model: If he sysem (1)-(4) possesses a soluion where Y() and L() are all nonnegaive and grow a consan raes, g and n, respecively, hen ( ) F[ T( ), L( ), ] G[ e g T( ), L( )] (6) According o his heorem, exponenial growh requires echnological progress o be purely land-augmening, wih a rae of progress of g-τ. 3
5 Proof : By assumpion we have g Y( ) Ye (7) From equaion (4) and (8), we can obain Taking ime derivaives yields n L( ) Le (8) n b( y) d( y) b[ ye ] d[ ye ] (9) by e dy e (1) which implies ( b d )( g n) (11) According o he Malhusian assumpion: b, d so ha b d. Therefore, we mus have Define g n (12) G( T, L) G( T, L,) (13) As Y G L, ), Y ( T g n Y e, L L e, T T e, and G is linear homogeneous, we can wrie Y Y e g G[ T e ( g ), L e ] (14) As g=n, his proves he heorem. 4 Conclusion This paper proves ha here is a seady-sae growh heorem in a Malhusian model which is analogous o Uzawa s in a neoclassical environmen. In paricular, for a Malhusian model o exhibi seady-sae growh, echnical change mus be purely land-augmening and canno include labor-augmenaion. The resul shows ha he resricion on he direcion of echnical change in seady-sae growh is required no only for he neoclassical growh model bu also for oher models. References: 1. Acemoglu, Daron, 23, Labor- and Capial-Augmening Technical Change, Journal of European Economic Associaion, Vol.1 (1), pp
6 2. Acemoglu, Daron, 29, Inroducion o Modern Economic Growh, Princeon Universiy Press. 3. Barro, Rober and Xavier Sala-i-Marin, 24, Economic Growh. MIT Press, Cambridge, MA. 4. Drandakis, E. M., and Edmund S. Phelps, 1966, A Model of Induced Invenion, Growh, and Disribuion, Economic Journal, Vol. 76 (34), pp Fellner, William, 1961, Two Proposiions in he Theory of Induced Innovaions, Economic Journal, Vol. 71(282), pp Irmen, Andreas, 24, Malhus and Solow a noe on closed form soluions. Economics Bullein, Vol.1, No. 6pp Jones, Charles I., 25, The Shape of Producion Funcions and he Direcion of Technical Change. Quarerly Journal of Economics 2: Jones, Charles I., and Dean Scrimgeour, 28, A New Proof of Uzawa s Seady-Sae Growh Theorem, Review of Economics and Saisics, Vol. 9(1), pp Kennedy, Charles M., 1964, Induced Bias in Innovaion and he Theory of Disribuion, Economic Journal, Vol. 74 (295), pp Kremer, Michael,1993, Populaion Growh and Technological Change: One Million b.c. o 199. Quarerly Journal of Economics 18: Lucas, Rober E., 22, The Indusrial Revoluion: Pas and Fuure. In Lecures in Economic Growh. Cambridge, Mass.: Harvard Universiy Press. 12. Malhus, Thomas R.,1798, An Essay on he Principle of Populaion. London: W. Pickering. 13. Ricardo, David,1817, On he Principles of Poliical Economy and Taxaion. Cambridge: Cambridge Universiy Press, Samuelson, Paul A., 1965, A Theory of Induced Innovaion along Kennedy-Weisäcker Lines, Review of Economics and Saisics, Vol. 47(4), pp Schlich, Ekkehar, 26, A Varian of Uzawa s Theorem, Economics Bullein, Vol. 5 (6), pp Solow, Rober M.,1956, A Conribuion o he Theory of Economic Growh, Quarerly Journal of Economics, Vol. 7, February, pp Uzawa, Hirofumi, 1961, Neural Invenions and he Sabiliy of Growh Equilibrium, Review of Economic Sudies, Vol. 28, February, pp
UCLA Department of Economics Fall PhD. Qualifying Exam in Macroeconomic Theory
UCLA Deparmen of Economics Fall 2016 PhD. Qualifying Exam in Macroeconomic Theory Insrucions: This exam consiss of hree pars, and you are o complee each par. Answer each par in a separae bluebook. All
More informationTechnological progress breakthrough inventions. Dr hab. Joanna Siwińska-Gorzelak
Technological progress breakhrough invenions Dr hab. Joanna Siwińska-Gorzelak Inroducion Afer The Economis : Solow has shown, ha accumulaion of capial alone canno yield lasing progress. Wha can? Anyhing
More informationIJRSS Volume 2, Issue 2 ISSN:
A LOGITIC BROWNIAN MOTION WITH A PRICE OF DIVIDEND YIELDING AET D. B. ODUOR ilas N. Onyango _ Absrac: In his paper, we have used he idea of Onyango (2003) he used o develop a logisic equaion used in naural
More informationSan Francisco State University ECON 560 Summer 2018 Problem set 3 Due Monday, July 23
San Francisco Sae Universiy Michael Bar ECON 56 Summer 28 Problem se 3 Due Monday, July 23 Name Assignmen Rules. Homework assignmens mus be yped. For insrucions on how o ype equaions and mah objecs please
More informationEconomic Growth Continued: From Solow to Ramsey
Economic Growh Coninued: From Solow o Ramsey J. Bradford DeLong May 2008 Choosing a Naional Savings Rae Wha can we say abou economic policy and long-run growh? To keep maers simple, le us assume ha he
More informationOPTIMUM FISCAL AND MONETARY POLICY USING THE MONETARY OVERLAPPING GENERATION MODELS
Kuwai Chaper of Arabian Journal of Business and Managemen Review Vol. 3, No.6; Feb. 2014 OPTIMUM FISCAL AND MONETARY POLICY USING THE MONETARY OVERLAPPING GENERATION MODELS Ayoub Faramarzi 1, Dr.Rahim
More informationProcess of convergence dr Joanna Wolszczak-Derlacz. Lecture 4 and 5 Solow growth model (a)
Process of convergence dr Joanna Wolszczak-Derlacz ecure 4 and 5 Solow growh model a Solow growh model Rober Solow "A Conribuion o he Theory of Economic Growh." Quarerly Journal of Economics 70 February
More informationMacroeconomics. Part 3 Macroeconomics of Financial Markets. Lecture 8 Investment: basic concepts
Macroeconomics Par 3 Macroeconomics of Financial Markes Lecure 8 Invesmen: basic conceps Moivaion General equilibrium Ramsey and OLG models have very simple assumpions ha invesmen ino producion capial
More informationCENTRO DE ESTUDIOS MONETARIOS Y FINANCIEROS T. J. KEHOE MACROECONOMICS I WINTER 2011 PROBLEM SET #6
CENTRO DE ESTUDIOS MONETARIOS Y FINANCIEROS T J KEHOE MACROECONOMICS I WINTER PROBLEM SET #6 This quesion requires you o apply he Hodrick-Presco filer o he ime series for macroeconomic variables for he
More informationEconomics 301 Fall Name. Answer all questions. Each sub-question is worth 7 points (except 4d).
Name Answer all quesions. Each sub-quesion is worh 7 poins (excep 4d). 1. (42 ps) The informaion below describes he curren sae of a growing closed economy. Producion funcion: α 1 Y = K ( Q N ) α Producion
More informationThe steady-state growth conditions of neoclassical growth model and Uzawa theorem revisited
MPRA Munich Personal RePEc Archive The steady-state growth conditions of neoclassical growth model and Uzawa theorem revisited Defu Li and Jiuli Huang School of Economics and Management, Tongji University,
More informationLIDSTONE IN THE CONTINUOUS CASE by. Ragnar Norberg
LIDSTONE IN THE CONTINUOUS CASE by Ragnar Norberg Absrac A generalized version of he classical Lidsone heorem, which deals wih he dependency of reserves on echnical basis and conrac erms, is proved in
More informationOn the Impact of Inflation and Exchange Rate on Conditional Stock Market Volatility: A Re-Assessment
MPRA Munich Personal RePEc Archive On he Impac of Inflaion and Exchange Rae on Condiional Sock Marke Volailiy: A Re-Assessmen OlaOluwa S Yaya and Olanrewaju I Shiu Deparmen of Saisics, Universiy of Ibadan,
More informationECONOMIC GROWTH. Student Assessment. Macroeconomics II. Class 1
Suden Assessmen You will be graded on he basis of In-class aciviies (quizzes worh 30 poins) which can be replaced wih he number of marks from he regular uorial IF i is >=30 (capped a 30, i.e. marks from
More informationExam 1. Econ520. Spring 2017
Exam 1. Econ520. Spring 2017 Professor Luz Hendricks UNC Insrucions: Answer all quesions. Clearly number your answers. Wrie legibly. Do no wrie your answers on he quesion shees. Explain your answers do
More informationIntergenerational economics
Inergeneraional economics Rober Fenge Srucure of he course 1. Public Deb 1.1 Inroducion 12OLG 1.2 model 1.3 Neoclassical Theory of Public Deb 1.4 Ricardian Neuraliy 1.5 Tax Smoohing Theory 1.6 Poliical
More informationMoney in a Real Business Cycle Model
Money in a Real Business Cycle Model Graduae Macro II, Spring 200 The Universiy of Nore Dame Professor Sims This documen describes how o include money ino an oherwise sandard real business cycle model.
More informationMarket and Information Economics
Marke and Informaion Economics Preliminary Examinaion Deparmen of Agriculural Economics Texas A&M Universiy May 2015 Insrucions: This examinaion consiss of six quesions. You mus answer he firs quesion
More informationUnemployment and Phillips curve
Unemploymen and Phillips curve 2 of The Naural Rae of Unemploymen and he Phillips Curve Figure 1 Inflaion versus Unemploymen in he Unied Saes, 1900 o 1960 During he period 1900 o 1960 in he Unied Saes,
More informationReconciling Gross Output TFP Growth with Value Added TFP Growth
Reconciling Gross Oupu TP Growh wih Value Added TP Growh Erwin Diewer Universiy of Briish Columbia and Universiy of New Souh Wales ABSTRACT This aricle obains relaively simple exac expressions ha relae
More informationProblem Set 1 Answers. a. The computer is a final good produced and sold in Hence, 2006 GDP increases by $2,000.
Social Analysis 10 Spring 2006 Problem Se 1 Answers Quesion 1 a. The compuer is a final good produced and sold in 2006. Hence, 2006 GDP increases by $2,000. b. The bread is a final good sold in 2006. 2006
More informationUniversity College Dublin, MA Macroeconomics Notes, 2014 (Karl Whelan) Page 1
Universiy College Dublin, MA Macroeconomics Noes, 2014 (Karl Whelan) Page 1 Growh Accouning The final par of his course will focus on wha is known as growh heory. Unlike mos of macroeconomics, which concerns
More informationEmpirical analysis on China money multiplier
Aug. 2009, Volume 8, No.8 (Serial No.74) Chinese Business Review, ISSN 1537-1506, USA Empirical analysis on China money muliplier SHANG Hua-juan (Financial School, Shanghai Universiy of Finance and Economics,
More informationLecture: Autonomous Financing and Financing Based on Market Values I
Lecure: Auonomous Financing and Financing Based on Marke Values I Luz Kruschwiz & Andreas Löffler Discouned Cash Flow, Secion 2.3, 2.4.1 2.4.3, Ouline 2.3 Auonomous financing 2.4 Financing based on marke
More informationCOOPERATION WITH TIME-INCONSISTENCY. Extended Abstract for LMSC09
COOPERATION WITH TIME-INCONSISTENCY Exended Absrac for LMSC09 By Nicola Dimiri Professor of Economics Faculy of Economics Universiy of Siena Piazza S. Francesco 7 53100 Siena Ialy Dynamic games have proven
More informationEndogenous Growth: An Alternative Measuring Device? I. Introduction
Endogenous Growh: An Alernaive Measuring Device? I. Inroducion Facs are essenial in economics as hey allow us o es heory. However, hey are also useful in he calibraion procedure for he purpose of choosing
More informationMonetary policy and multiple equilibria in a cash-in-advance economy
Economics Leers 74 (2002) 65 70 www.elsevier.com/ locae/ econbase Moneary policy and muliple equilibria in a cash-in-advance economy Qinglai Meng* The Chinese Universiy of Hong Kong, Deparmen of Economics,
More informationSTATIONERY REQUIREMENTS SPECIAL REQUIREMENTS 20 Page booklet List of statistical formulae New Cambridge Elementary Statistical Tables
ECONOMICS RIPOS Par I Friday 7 June 005 9 Paper Quaniaive Mehods in Economics his exam comprises four secions. Secions A and B are on Mahemaics; Secions C and D are on Saisics. You should do he appropriae
More informationInventory Investment. Investment Decision and Expected Profit. Lecture 5
Invenory Invesmen. Invesmen Decision and Expeced Profi Lecure 5 Invenory Accumulaion 1. Invenory socks 1) Changes in invenory holdings represen an imporan and highly volaile ype of invesmen spending. 2)
More informationPricing formula for power quanto options with each type of payoffs at maturity
Global Journal of Pure and Applied Mahemaics. ISSN 0973-1768 Volume 13, Number 9 (017, pp. 6695 670 Research India Publicaions hp://www.ripublicaion.com/gjpam.hm Pricing formula for power uano opions wih
More informationMA Advanced Macro, 2016 (Karl Whelan) 1
MA Advanced Macro, 2016 (Karl Whelan) 1 The Calvo Model of Price Rigidiy The form of price rigidiy faced by he Calvo firm is as follows. Each period, only a random fracion (1 ) of firms are able o rese
More informationOptimal Growth Taxation
www.sciedu.ca/rwe Research in World Economy Vol., No. ; March 0 Opimal Growh axaion Marcus Davidsson Nygaan 7 55 6 Jonkoping, Sweden E-mail: davidsson_marcus@homail.com Received: December, 0 Acceped: January
More informationA Note on Missing Data Effects on the Hausman (1978) Simultaneity Test:
A Noe on Missing Daa Effecs on he Hausman (978) Simulaneiy Tes: Some Mone Carlo Resuls. Dikaios Tserkezos and Konsaninos P. Tsagarakis Deparmen of Economics, Universiy of Cree, Universiy Campus, 7400,
More informationEconomic Growth and the Role of Taxation-Theory
Please cie his paper as: Myles, G. (2009), Economic Growh and he Role of Taxaion-Theory, OECD Economics Deparmen Working Papers, No. 713, OECD Publishing, Paris. hp://dx.doi.org/10.1787/222800633678 OECD
More informationECO 301 MACROECONOMIC THEORY UNIVERSITY OF MIAMI DEPARTMENT OF ECONOMICS PRACTICE FINAL EXAM Instructor: Dr. S. Nuray Akin
ECO 301 MACROECONOMIC THEORY UNIVERSITY OF MIAMI DEPARTMENT OF ECONOMICS PRACTICE FINAL EXAM Insrucor: Dr. S. Nuray Akin Name: ID: Insrucions: This exam consiss of 12 pages; please check your examinaion
More informationA Theory of Tax Effects on Economic Damages. Scott Gilbert Southern Illinois University Carbondale. Comments? Please send to
A Theory of Tax Effecs on Economic Damages Sco Gilber Souhern Illinois Universiy Carbondale Commens? Please send o gilbers@siu.edu ovember 29, 2012 Absrac This noe provides a heoreical saemen abou he effec
More information1. To express the production function in terms of output per worker and capital per worker, divide by N: K f N
THE LOG RU Exercise 8 The Solow Model Suppose an economy is characerized by he aggregae producion funcion / /, where is aggregae oupu, is capial and is employmen. Suppose furher ha aggregae saving is proporional
More informationEcon 546 Lecture 4. The Basic New Keynesian Model Michael Devereux January 2011
Econ 546 Lecure 4 The Basic New Keynesian Model Michael Devereux January 20 Road map for his lecure We are evenually going o ge 3 equaions, fully describing he NK model The firs wo are jus he same as before:
More informationPricing FX Target Redemption Forward under. Regime Switching Model
In. J. Conemp. Mah. Sciences, Vol. 8, 2013, no. 20, 987-991 HIKARI Ld, www.m-hikari.com hp://dx.doi.org/10.12988/ijcms.2013.311123 Pricing FX Targe Redempion Forward under Regime Swiching Model Ho-Seok
More informationThe macroeconomic effects of fiscal policy in Greece
The macroeconomic effecs of fiscal policy in Greece Dimiris Papageorgiou Economic Research Deparmen, Bank of Greece Naional and Kapodisrian Universiy of Ahens May 22, 23 Email: dpapag@aueb.gr, and DPapageorgiou@bankofgreece.gr.
More informationOnline Appendix to: Implementing Supply Routing Optimization in a Make-To-Order Manufacturing Network
Online Appendix o: Implemening Supply Rouing Opimizaion in a Make-To-Order Manufacuring Nework A.1. Forecas Accuracy Sudy. July 29, 2008 Assuming a single locaion and par for now, his sudy can be described
More informationIntroduction. Enterprises and background. chapter
NACE: High-Growh Inroducion Enerprises and background 18 chaper High-Growh Enerprises 8 8.1 Definiion A variey of approaches can be considered as providing he basis for defining high-growh enerprises.
More information4452 Mathematical Modeling Lecture 17: Modeling of Data: Linear Regression
Mah Modeling Lecure 17: Modeling of Daa: Linear Regression Page 1 5 Mahemaical Modeling Lecure 17: Modeling of Daa: Linear Regression Inroducion In modeling of daa, we are given a se of daa poins, and
More informationDual Valuation and Hedging of Bermudan Options
SIAM J. FINANCIAL MAH. Vol. 1, pp. 604 608 c 2010 Sociey for Indusrial and Applied Mahemaics Dual Valuaion and Hedging of Bermudan Opions L. C. G. Rogers Absrac. Some years ago, a differen characerizaion
More informationFINAL EXAM EC26102: MONEY, BANKING AND FINANCIAL MARKETS MAY 11, 2004
FINAL EXAM EC26102: MONEY, BANKING AND FINANCIAL MARKETS MAY 11, 2004 This exam has 50 quesions on 14 pages. Before you begin, please check o make sure ha your copy has all 50 quesions and all 14 pages.
More informationThe Simple Analytics of Price Determination
Econ. 511b Spring 1997 C. Sims The Simple Analyics of rice Deerminaion The logic of price deerminaion hrough fiscal policy may be bes appreciaed in an exremely lean model. We include no sochasic elemens,
More informationECON Lecture 5 (OB), Sept. 21, 2010
1 ECON4925 2010 Lecure 5 (OB), Sep. 21, 2010 axaion of exhausible resources Perman e al. (2003), Ch. 15.7. INODUCION he axaion of nonrenewable resources in general and of oil in paricular has generaed
More informationVolatility and Hedging Errors
Volailiy and Hedging Errors Jim Gaheral Sepember, 5 1999 Background Derivaive porfolio bookrunners ofen complain ha hedging a marke-implied volailiies is sub-opimal relaive o hedging a heir bes guess of
More informationProblem 1 / 25 Problem 2 / 25 Problem 3 / 11 Problem 4 / 15 Problem 5 / 24 TOTAL / 100
Deparmen of Economics Universiy of Maryland Economics 35 Inermediae Macroeconomic Analysis Miderm Exam Suggesed Soluions Professor Sanjay Chugh Fall 008 NAME: The Exam has a oal of five (5) problems and
More informationCALIBRATING THE (RBC + SOLOW) MODEL JANUARY 31, 2013
CALIBRATING THE (RBC + SOLOW) MODEL JANUARY 3, 203 Inroducion STEADY STATE Deerminisic seady sae he naural poin of approximaion Shu down all shocks and se exogenous variables a heir means The idea: le
More informationASSIGNMENT BOOKLET. M.Sc. (Mathematics with Applications in Computer Science) Mathematical Modelling (January 2014 November 2014)
ASSIGNMENT BOOKLET MMT-009 M.Sc. (Mahemaics wih Applicaions in Compuer Science) Mahemaical Modelling (January 014 November 014) School of Sciences Indira Gandhi Naional Open Universiy Maidan Garhi New
More informationStylized fact: high cyclical correlation of monetary aggregates and output
SIMPLE DSGE MODELS OF MONEY PART II SEPTEMBER 27, 2011 Inroducion BUSINESS CYCLE IMPLICATIONS OF MONEY Sylized fac: high cyclical correlaion of moneary aggregaes and oupu Convenional Keynesian view: nominal
More informationFinal Exam Answers Exchange Rate Economics
Kiel Insiu für Welwirhschaf Advanced Sudies in Inernaional Economic Policy Research Spring 2005 Menzie D. Chinn Final Exam Answers Exchange Rae Economics This exam is 1 ½ hours long. Answer all quesions.
More informationSMALL MENU COSTS AND LARGE BUSINESS CYCLES: AN EXTENSION OF THE MANKIW MODEL
SMALL MENU COSTS AND LARGE BUSINESS CYCLES: AN EXTENSION OF THE MANKIW MODEL 2 Hiranya K. Nah, Sam Houson Sae Universiy Rober Srecher, Sam Houson Sae Universiy ABSTRACT Using a muli-period general equilibrium
More informationYou should turn in (at least) FOUR bluebooks, one (or more, if needed) bluebook(s) for each question.
UCLA Deparmen of Economics Spring 05 PhD. Qualifying Exam in Macroeconomic Theory Insrucions: This exam consiss of hree pars, and each par is worh 0 poins. Pars and have one quesion each, and Par 3 has
More informationSystemic Risk Illustrated
Sysemic Risk Illusraed Jean-Pierre Fouque Li-Hsien Sun March 2, 22 Absrac We sudy he behavior of diffusions coupled hrough heir drifs in a way ha each componen mean-revers o he mean of he ensemble. In
More informationAid, Policies, and Growth
Aid, Policies, and Growh By Craig Burnside and David Dollar APPENDIX ON THE NEOCLASSICAL MODEL Here we use a simple neoclassical growh model o moivae he form of our empirical growh equaion. Our inenion
More informationPUBLIC DEBT AND ECONOMIC GROWTH IN UZAWA S TWO-SECTOR MODEL WITH PUBLIC GOODS
Inernaional Journal of Economic Sciences DOI: 1.2472/ES.216.5.4.4 PUBLIC DEBT AND ECONOMIC GROWTH IN UZAWA S TWO-SECTOR MODEL WITH PUBLIC GOODS WEI-BIN ZHANG Absrac: This paper sudies public deb dynamics
More informationMacroeconomics II A dynamic approach to short run economic fluctuations. The DAD/DAS model.
Macroeconomics II A dynamic approach o shor run economic flucuaions. The DAD/DAS model. Par 2. The demand side of he model he dynamic aggregae demand (DAD) Inflaion and dynamics in he shor run So far,
More informationCHAPTER CHAPTER18. Openness in Goods. and Financial Markets. Openness in Goods, and Financial Markets. Openness in Goods,
Openness in Goods and Financial Markes CHAPTER CHAPTER18 Openness in Goods, and Openness has hree disinc dimensions: 1. Openness in goods markes. Free rade resricions include ariffs and quoas. 2. Openness
More informationErratic Price, Smooth Dividend. Variance Bounds. Present Value. Ex Post Rational Price. Standard and Poor s Composite Stock-Price Index
Erraic Price, Smooh Dividend Shiller [1] argues ha he sock marke is inefficien: sock prices flucuae oo much. According o economic heory, he sock price should equal he presen value of expeced dividends.
More informationModels of Default Risk
Models of Defaul Risk Models of Defaul Risk 1/29 Inroducion We consider wo general approaches o modelling defaul risk, a risk characerizing almos all xed-income securiies. The srucural approach was developed
More informationAn inventory model for Gompertz deteriorating items with time-varying holding cost and price dependent demand
Inernaional Journal of Mahemaics rends and echnology (IJM) Volume 49 Number 3 Sepember 7 An invenory model for Gomperz deerioraing iems wih ime-varying holding cos and price dependen demand Absrac Nurul
More informationA NOTE ON BUSINESS CYCLE NON-LINEARITY IN U.S. CONSUMPTION 247
Journal of Applied Economics, Vol. VI, No. 2 (Nov 2003), 247-253 A NOTE ON BUSINESS CYCLE NON-LINEARITY IN U.S. CONSUMPTION 247 A NOTE ON BUSINESS CYCLE NON-LINEARITY IN U.S. CONSUMPTION STEVEN COOK *
More informationAppendix B: DETAILS ABOUT THE SIMULATION MODEL. contained in lookup tables that are all calculated on an auxiliary spreadsheet.
Appendix B: DETAILS ABOUT THE SIMULATION MODEL The simulaion model is carried ou on one spreadshee and has five modules, four of which are conained in lookup ables ha are all calculaed on an auxiliary
More informationMultiple Choice Questions Solutions are provided directly when you do the online tests.
SOLUTIONS Muliple Choice Quesions Soluions are provided direcly when you do he online ess. Numerical Quesions 1. Nominal and Real GDP Suppose han an economy consiss of only 2 ypes of producs: compuers
More informationRobustness of Memory-Type Charts to Skew Processes
Inernaional Journal of Applied Physics and Mahemaics Robusness of Memory-Type Chars o Skew Processes Saowani Sukparungsee* Deparmen of Applied Saisics, Faculy of Applied Science, King Mongku s Universiy
More informationComments on Marrying Monetary Policy with Macroprudential Regulation: Exploring the Issues by Nakornthab and Rungcharoenkitkul
Commens on Marrying Moneary Policy wih Macroprudenial Regulaion: Exploring he Issues by Nakornhab and Rungcharoenkikul By Andrew Filardo, BIS Prepared for he Bank of Thailand Inernaional Symposium 2010
More informationAsymmetry and Leverage in Stochastic Volatility Models: An Exposition
Asymmery and Leverage in Sochasic Volailiy Models: An xposiion Asai, M. a and M. McAleer b a Faculy of conomics, Soka Universiy, Japan b School of conomics and Commerce, Universiy of Wesern Ausralia Keywords:
More informationSolow and the States: A Panel Data Approach *
Solow and he Saes: A Panel Daa Approach * (JEL Caegory: O47, C32, R11) (Keywords: Growh Empirics, Panel Daa, Regional Growh) Ocober, 2000 Seven Yamarik Deparmen of Economics, The Universiy of Akron, Olin
More informationEconomics 2450A: Public Economics Section 9: Linear Capital Taxation
Economics 2450A: Public Economics Secion 9: Linear Capial Taxaion Maeo Paradisi November 7, 206 In his secion we inroduce a framework o sudy opimal linear capial axaion. We firs focus on a wo-period model,
More informationEquivalent Martingale Measure in Asian Geometric Average Option Pricing
Journal of Mahemaical Finance, 4, 4, 34-38 ublished Online Augus 4 in SciRes hp://wwwscirporg/journal/jmf hp://dxdoiorg/436/jmf4447 Equivalen Maringale Measure in Asian Geomeric Average Opion ricing Yonggang
More informationSpring 2011 Social Sciences 7418 University of Wisconsin-Madison
Economics 32, Sec. 1 Menzie D. Chinn Spring 211 Social Sciences 7418 Universiy of Wisconsin-Madison Noes for Econ 32-1 FALL 21 Miderm 1 Exam The Fall 21 Econ 32-1 course used Hall and Papell, Macroeconomics
More informationTHAI BUSINESS CYCLE FROM MACROECONOMIC MODEL USING BVAR AND MS-BVAR METHODS
PEOPLE: Inernaional Journal of Social Sciences Disorn Siriphirunphong e al. Special Issue Vol.1 Issue 1 pp. 452-466 THAI BUSINESS CYCLE FROM MACROECONOMIC MODEL USING BVAR AND MS-BVAR METHODS Disorn Siriphirunphong
More informationMathematical methods for finance (preparatory course) Simple numerical examples on bond basics
Mahemaical mehods for finance (preparaory course) Simple numerical examples on bond basics . Yield o mauriy for a zero coupon bond = 99.45 = 92 days (=0.252 yrs) Face value = 00 r 365 00 00 92 99.45 2.22%
More informationSupplement to Models for Quantifying Risk, 5 th Edition Cunningham, Herzog, and London
Supplemen o Models for Quanifying Risk, 5 h Ediion Cunningham, Herzog, and London We have received inpu ha our ex is no always clear abou he disincion beween a full gross premium and an expense augmened
More informationWeibull Deterioration, Quadratic Demand Under Inflation
IOS Journal of Mahemaics IOS-JM e-issn: 78-78, p-issn: 9 7X. Volume 0, Issue Ver. V May-Jun. 0, PP 09-7 Weibull Deerioraion, Quadraic Demand Under Inflaion. Mohan *,.Venkaeswarlu Dep of Mahemaics, F-ivil,
More informationAn enduring question in macroeconomics: does monetary policy have any important effects on the real (i.e, real GDP, consumption, etc) economy?
ONETARY OLICY IN THE INFINITE-ERIOD ECONOY: SHORT-RUN EFFECTS NOVEBER 6, 20 oneary olicy Analysis: Shor-Run Effecs IS ONETARY OLICY NEUTRAL? An enduring quesion in macroeconomics: does moneary policy have
More informationAsset Prices, Nominal Rigidities, and Monetary Policy: Role of Price Indexation
Theoreical Economics Leers, 203, 3, 82-87 hp://dxdoiorg/04236/el20333030 Published Online June 203 (hp://wwwscirporg/journal/el) Asse Prices, Nominal Rigidiies, and Moneary Policy: Role of Price Indexaion
More informationWeb Usage Patterns Using Association Rules and Markov Chains
Web Usage Paerns Using Associaion Rules and Markov hains handrakasem Rajabha Universiy, Thailand amnas.cru@gmail.com Absrac - The objecive of his research is o illusrae he probabiliy of web page using
More informationAn Innovative Thinking on the Concepts of Ex-Ante Value, Ex-Post Value and the Realized Value (Price)
RISUS - Journal on Innovaion and Susainabiliy Volume 6, número 1 2015 ISSN: 2179-3565 Edior Cienífico: Arnoldo José de Hoyos Guevara Ediora Assisene: Leícia Sueli de Almeida Avaliação: Melhores práicas
More informationDo cognitive skills Impact Growth or Levels of GDP per Capita?
Do cogniive skills Impac Growh or Levels of GDP per Capia? Zvi Ecksein, Assaf Sarid,andYuli(Yael)Tamir June 1, 2016 Absrac Incredible policy aenion has been given o he claim ha an increase in he qualiy
More informationGLOBAL ECONOMIC GROWTH, ELASTIC LABOR SUPPLY, KNOWLEDGE UTILIZATION AND CREATION WITH LEARNING-BY-DOING
GLOBAL ECOOMIC GROWH ELASIC LABOR SUPPLY OWLEDGE UILIAIO AD CREAIO WIH LEARIG-BY-DOIG Wei-Bin HAG Risumeian Asia Pacific Universiy Oia-en apan wbz@apu.ac.p Absrac his paper sudies issues relaed o global
More informationThe Relationship between Money Demand and Interest Rates: An Empirical Investigation in Sri Lanka
The Relaionship beween Money Demand and Ineres Raes: An Empirical Invesigaion in Sri Lanka R. C. P. Padmasiri 1 and O. G. Dayarana Banda 2 1 Economic Research Uni, Deparmen of Expor Agriculure 2 Deparmen
More informationA Method for Estimating the Change in Terminal Value Required to Increase IRR
A Mehod for Esimaing he Change in Terminal Value Required o Increase IRR Ausin M. Long, III, MPA, CPA, JD * Alignmen Capial Group 11940 Jollyville Road Suie 330-N Ausin, TX 78759 512-506-8299 (Phone) 512-996-0970
More informationAvailable online at ScienceDirect
Available online a www.sciencedirec.com ScienceDirec Procedia Economics and Finance 8 ( 04 658 663 s Inernaional Conference 'Economic Scienific Research - Theoreical, Empirical and Pracical Approaches',
More informationMONETARY POLICY AND LONG TERM INTEREST RATES IN GERMANY *
MONETARY POLICY AND LONG TERM INTEREST RATES IN GERMANY * Ger Peersman Bank of England Ghen Universiy Absrac In his paper, we provide new empirical evidence on he relaionship beween shor and long run ineres
More informationEstimating Earnings Trend Using Unobserved Components Framework
Esimaing Earnings Trend Using Unobserved Componens Framework Arabinda Basisha and Alexander Kurov College of Business and Economics, Wes Virginia Universiy December 008 Absrac Regressions using valuaion
More informationMonetary Instrument Problem Revisited: The Role of Fiscal Policy. Abstract. Soyoung Kim University of Illinois at Urbana Champaign
Moneary Insrumen Problem Revisied: The Role of Fiscal Policy Soyoung Kim Universiy of Illinois a Urbana Champaign Absrac The moneary insrumen problem is examined in an endowmen economy model wih various
More informationCubic and Quartic Models
Cubic and Quaric Models 52 For noncommercial use Frank C. Wilson USAA Producs (Cubic) Source: The Legacy of Membership: USAA 2006 Repor o Members s (since 1999) x USAA producs (millions) p 1999 0 14.7
More informationPortfolio Risk of Chinese Stock Market Measured by VaR Method
Vol.53 (ICM 014), pp.6166 hp://dx.doi.org/10.1457/asl.014.53.54 Porfolio Risk of Chinese Sock Marke Measured by VaR Mehod Wu Yudong School of Basic Science,Harbin Universiy of Commerce,Harbin Email:wuyudong@aliyun.com
More informationEffect of Probabilistic Backorder on an Inventory System with Selling Price Demand Under Volume Flexible Strategy
Inernaional Transacions in Mahemaical Sciences and compuers July-December 0, Volume 5, No., pp. 97-04 ISSN-(Prining) 0974-5068, (Online) 0975-75 AACS. (www.aacsjournals.com) All righ reserved. Effec of
More informationAn Incentive-Based, Multi-Period Decision Model for Hierarchical Systems
Wernz C. and Deshmukh A. An Incenive-Based Muli-Period Decision Model for Hierarchical Sysems Proceedings of he 3 rd Inernaional Conference on Global Inerdependence and Decision Sciences (ICGIDS) pp. 84-88
More informationThe Death of the Phillips Curve?
The Deah of he Phillips Curve? Anhony Murphy Federal Reserve Bank of Dallas Research Deparmen Working Paper 1801 hps://doi.org/10.19/wp1801 The Deah of he Phillips Curve? 1 Anhony Murphy, Federal Reserve
More informationHEDGING SYSTEMATIC MORTALITY RISK WITH MORTALITY DERIVATIVES
HEDGING SYSTEMATIC MORTALITY RISK WITH MORTALITY DERIVATIVES Workshop on moraliy and longeviy, Hannover, April 20, 2012 Thomas Møller, Chief Analys, Acuarial Innovaion OUTLINE Inroducion Moraliy risk managemen
More informationSIMPLE DSGE MODELS OF MONEY DEMAND: PART I OCTOBER 14, 2014
SIMPLE DSGE MODELS OF MONEY DEMAND: PART I OCTOBER 4, 204 Inroducion BASIC ISSUES Money/moneary policy issues an enduring fascinaion in macroeconomics How can/should cenral bank conrol he economy? Should
More informationCore issue: there are limits or restrictions that each policy-setting authority places on the actions of the other
FISCAL AND MONETARY INTERACTIONS: PRESENT-VALUE ANALYSIS NOVEMBER 20, 2014 Inroducion CONSOLIDATED GOVERNMENT BUDGET Core issue: here are limis or resricions ha each policy-seing auhoriy places on he acions
More informationA pricing model for the Guaranteed Lifelong Withdrawal Benefit Option
A pricing model for he Guaraneed Lifelong Wihdrawal Benefi Opion Gabriella Piscopo Universià degli sudi di Napoli Federico II Diparimeno di Maemaica e Saisica Index Main References Survey of he Variable
More informationIntroduction to Black-Scholes Model
4 azuhisa Masuda All righs reserved. Inroducion o Black-choles Model Absrac azuhisa Masuda Deparmen of Economics he Graduae Cener, he Ciy Universiy of New York, 365 Fifh Avenue, New York, NY 6-439 Email:
More informationEstimating Rates of Return on Capital
Esimaing Raes of Reurn on Capial Gallina Vincelee and Frizi oehler (PRMED) Augus 27, 2009 The World Bank ~ yiv, Ukraine 1 Rae of Reurn on Capial (RoR ) provides a basis for assessing he conribuion of capial
More information