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Growth Path (growth + path)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting82%

Kinds of Growth Path

  • balanced growth path
    		•

    Selected Abstracts

    EU Enlargement to Turkey?

    EUROCHOICES, Issue 1 2005
    Rural Areas: EU Erweiterung um die Türkei?, The Challenges Anead for Agriculture
    Summary EU Enlargement to Turkey? The Challenges Ahead for Agriculture and Rural Areas In December 2004 the European Council agreed that accession negotiations with Turkey could begin in October 2005. Although the Copenhagen political criteria have been decisive so far, the criteria relating to the functioning of markets and ability to implement EU legislation will weigh heavily in the negotiations. Despite recent policy reforms, Turkey's agriculture still enjoys levels of protection similar or higher than those of the EU, but its gross value added per worker is relatively very low. One third of Turkey's employment is in agriculture, where most farms are small. The animal health situation is far below the standard achieved in the EU. Food supply chains are fragmented and inefficient. To survive and compete within the single market of the EU, the agricultural and food sectors must undergo deep structural change, which will have far-reaching economic and social repercussions. Projections according to current policy trends show that Turkey could take over one-third of the total cohesion budget allocation. However, the scalingdown or delaying of budget transfers would be short-sighted. If the EU accepts Turkey as a member, it would be in the interest of the EU as a whole that Turkey's economy - and especially its backward rural economy - should embark on a sustainable growth path as soon as possible. Elargir l'UE à la Turquie ? Les défis en perspective pour l'agriculture et les zones rurales. En decembre 2004, le Conseil de l'Union europ6enne a decide douvrir des negociations d'adhesion avec la Turquie en octobre 2005. A la difference de ce qui s'est passe jusqu'ici, le fonctionnement des marches et la capacite a mettre en vigueur l'acquis communautaire seront les crittres principaux, a la place des crittres politiques de Copenhague. Malgrk des reformes politiques recentes, l'agriculture turque profite toujours d'un taw de protection extkrieure analogue a celui de I'UE ou plus Clevi Cependant, sa valeur ajoutee brute par actifest relativement trks basse. Le tiers des emplois en Turquie se trouve dans le secteur agricole, oi,la plupart des exploitations sont de peute taille. La situation sanitaire du cheptel se situe bien au-dessous du niveau de I'UE. Les filieres agro-alimentaires sont fragmentees et peu efficaces. Pour être en mesure de faire face a la concurrence du Marche unique europken, les secteurs agricoles et alimentaires en Turquie devront subir une restructuration profonde, laquelle aura des consequences economiques et sociales de grande envergure. Des projections basees sur les tendances politiques actuelles montrent que la Turquie pourrait bkneficier de plus du tiers des fonds de cohesion de I'UE. Ceci dit, une decision de diminuer ou de dfikrer les transferts budgetaires serait faire preuve d'un manque de prevoyance. Si I'UE accepte la Turquie comme membre, il serait dans I'intkr8t de l'ensemble de 1'Union que I'Cconomie turque - et surtout son economie rurale arrierke - s'engage aussitbt que possible sur un sentier de croissance rapide et durable. EU Erweiterung um die Tükei? Herausforderungen für die Landwirtschaft und ländliche Räume Im Dezember 2004 hat der Europasche Rat beschlossen, dass im Oktober 2005 die Beitnttsverhandlungen mit der Turkei beginnen konnen Auch wenn die Kopenhagener politischen Kriterien bisher entscheidend waren, werden die Kriterien hinsichtlich der Funktionsfhhigkeit der Markte und die Fahigkeit, die EU Gesetzgebung lmplementieren zu konnen, besonderes Gewicht haben. Trotz der letzten Politikreformen 1st die Agrarprotektion in der Turkei gleich hoch oder hoher als in der EU, aber die turkische Bruttowertschopfung le Arbeitskraft ist relativ sehr klein Ein Dnttel der turklschen Arbeitskrafte sind in der Landmrtschaft beschaftigt und die meisten Betriebe sind klein Die Gesundheit der Tiere 1st weit unter den Niveau der EU Die Nahrungsmittel-Zuheferungskette 1st klem struktunert und ineffizient Der Agrar- und Ernahrungssektor kann im Gemeinsamen Markt nur dann uberleben und wettbewerbsfahig sein, wenn em intensiver Strukturwandel mit weit reichenden okonomischen und sozialen Wirkungen einsetzt. Projektionen der gegenwartigen Politikentwicklungen zeigen, dass die Turkei uber ein Dnttel der Mittel des Kohasionsfonds erhalten wurde. Doch wurde die Kurzung oder Veaogerung der Finanzhilfen kurzsichtig sen Wenn dre EU die Turkei als Mitglied akzeptiert, 1st es im Interesse der EU insgesamt, dass die Turkei und insbesondere ihre ruckstandige Agramirtschaft so schnell wie moglich auf einen stabden Wachstumspfad kommt. [source]

    Development of the extended parametric meshless Galerkin method to predict the crack propagation path in two-dimensional damaged structures

    FATIGUE & FRACTURE OF ENGINEERING MATERIALS AND STRUCTURES, Issue 7 2009
    M. MUSIVAND-ARZANFUDI
    ABSTRACT The parametric meshless Galerkin method (PMGM) enhances the promising features of the meshless methods by utilizing the parametric spaces and parametric mapping, and improves their efficiency from the practical viewpoints. The computation of meshless shape functions has been usually a time-consuming and complicated task in the meshless methods. In the PMGM, the meshless shape functions are mapped from the parametric space to the physical space, and therefore, the necessary computational time to generate the meshless shape functions is saved. The extended parametric meshless Galerkin method (X-PMGM) even improves the parametric property of the PMGM by incorporating the partition of unity concepts. In this paper, the development of the X-PMGM is extended by incorporating a crack-tip formulation in X-PMGM for fracture analysis and prediction of crack propagation path in the damaged structures. In this formulation, meshless shape functions are enriched by discontinuous enrichment function as well as crack-tip enrichment functions. The obtained results show that the predicted crack growth path is in good agreement with the experimental results. [source]

    On the Dynamics of Basic Growth Models: Ratio Stability vs.

    GERMAN ECONOMIC REVIEW, Issue 4 2009
    Convergence, Divergence in State Space
    Balanced growth; convergence; divergence; state space dynamics; ratio stability Abstract. We show for a class of basic growth models that convergence in ratios does not imply the pathwise convergence to the corresponding balanced growth path in the state space. We derive conditions on parameters and on the elasticity of the savings function for convergence or divergence and apply our results to the Solow model, an augmented Solow model as well as to an optimal growth model. An implication for the convergence debate is that two economies that differ only in the initial capital stock and converge in per capita terms might diverge to infinity in absolute terms. [source]

    Effectiveness versus Efficiency: Growth-Accelerating Policies in a Model of Growth without Scale Effects

    GERMAN ECONOMIC REVIEW, Issue 3 2006
    Bettina Büttner
    Endogenous growth; scale effects; welfare Abstract. Recent R&D growth models without strong scale effects imply that long-run growth rates depend only on parameters that are usually taken to be exogenous. However, integrating human capital accumulation into models of this type, Arnold (2002) demonstrates that subsidizing education accelerates growth. The present paper addresses welfare issues in Arnold's model. The main theoretical finding of the paper is that a system of subsidies that implements the optimal balanced growth path as a decentralized equilibrium includes zero subsidies to education, while R&D activity should be either subsidized or taxed. To shed further light on the latter result, the model is calibrated and it turns out that along the balanced growth path, the decentralized economy underinvests in R&D, i.e. R&D activities should be subsidized. [source]

    An incremental formulation for the prediction of two-dimensional fatigue crack growth with curved paths

    INTERNATIONAL JOURNAL FOR NUMERICAL METHODS IN ENGINEERING, Issue 6 2007
    Ki-Seok Kim
    Abstract This paper presents a new incremental formulation for predicting the curved growth paths of two-dimensional fatigue cracks. The displacement and traction boundary integral equations (BIEs) are employed to calculate responses of a linear elastic cracked body. The Paris law and the principle of local symmetry are adopted for defining the growth rate and direction of a fatigue crack, respectively. The three governing equations, i.e. the BIEs, the Paris law and the local symmetry condition, are non-linear with respect to the crack growth path and unknowns on the boundary. Iterative forms of three governing equations are derived to solve problems of the fatigue crack growth by the Newton,Raphson method. The incremental crack path is modelled as a parabola defined by the crack-tip position, and the trapezoidal rule is employed to integrate the Paris law. The validity of the proposed method is demonstrated by two numerical examples of plates with an edge crack. Copyright © 2007 John Wiley & Sons, Ltd. [source]

    Boom and Bust Cycle of the Stock Market, and Economic Growth in a Vintage Capital Model

    INTERNATIONAL JOURNAL OF ECONOMIC THEORY, Issue 3 2008
    Takeshi Kobayashi
    E13; E32; O33; O47 We construct a growth model of overlapping generations with vintage capital. There exists an equilibrium that converges to the balanced growth path through endogenous fluctuations of investment, consumption, and output in terms of the growth rate. When the technological change arrives and a rise in productivity is embodied only in newly invested capital, the economy converges to a new balanced growth path with a higher growth rate of output, but when we interpret the price of existing old capital as the stock market capitalization, the rise in productivity is accompanied by an initial decline in the stock market. Oscillatory equilibria are supported as perfect-foresight equilibria in the present framework with finitely lived agents and capital. Any oscillatory equilibrium is associated with the regime switch from an economy with both young and old capital in use into one with only old capital in use. [source]

    Inequality, Growth, and the Dynamics of Social Segmentation

    JOURNAL OF PUBLIC ECONOMIC THEORY, Issue 4 2009
    HUBERT KEMPF
    In this paper, we investigate the link between the dynamics of society segmentation into communities and the growth process, based on a simple human capital growth model. Using coalition theory, we study the socioeconomic dynamics of an economy over time, characterize it and prove that the economy converges to a steady state partition that may be segmented. Eventually the whole economy tends to a balanced growth path, exhibiting persistent inequality in the case of segmentation. We then provide sufficient conditions on initial inequality and the technology parameters generating local and global externalities for obtaining a segmented society in the long run. On the whole, the relationship between inequality and growth cannot be assessed without taking into consideration the stratification phenomena at work in society over time. [source]

    Optimal Monetary Policy, Taxes, and Public Debt in an Intertemporal Equilibrium

    JOURNAL OF PUBLIC ECONOMIC THEORY, Issue 3 2002
    Bertrand Crettez
    This article is devoted to a study of the optimal monetary and fiscal policies within the framework of an overlapping generations model with cash-in-advance constraints. We first characterize the intertemporal equilibrium. Then we show how to decentralize the optimal growth path using available policy instruments (i.e., labor income and capital taxes, public debt, money supply). Between the four instruments: wages and capital taxes, debt and monetary policy, one is redundant among the three last which implies that the Friedman Rule is only a special case. [source]

    Federalism in an endogenous growth model with tax base sharing and heterogeneous education services,

    PAPERS IN REGIONAL SCIENCE, Issue 1 2005
    Thierry Madiès
    Federal system; provision of education; tax base sharing; endogenous growth and human capital; "predative" governments Abstract., We examine the effects of tax base sharing on the growth path of an economy in which central and regional governments provide heterogeneous educational services (general and specific training) which increase capital productivity. Our focus is the non co-operative game between two overlapping governments , central and regional , whose objective is to maximise their net tax revenues of educational spending (Leviathan hypothesis). We will show that the dispute between centralisation and decentralisation depends on two effects; the first is a tax effect, which supports centralisation in that tax base sharing leads to overtax the common tax base, and so has a negative effect on the growth path. Second is a public good effect, which defends decentralisation because the very diversity of central and regional educational services has a beneficial effect on the growth path (educational services are imperfect substitutes and "specific assets" of each level of government). We discuss the virtue of tax base sharing in a federation, as an incentive scheme within government's grasp. [source]

    The Australian Growth Experience, 1960,2000: Human Capital, R&D or Steady-State Growth?

    THE AUSTRALIAN ECONOMIC REVIEW, Issue 4 2003
    Yuan K. Chou
    This article examines the sources of economic growth in Australia from 1960 to 2000 by adapting a framework developed in Jones (2002), whereby long-run growth is driven by the global discovery of new ideas, which in turn is tied to world population growth. We find that, contrary to the conventional view as suggested by sustained growth rates and a stable capital,output ratio over the last several decades, Australia is clearly not on its steady,state balanced growth path. Australia has benefited from increases in educational attainment and research intensity: 42 per cent of Australian growth between 1960 and 2000 is attributable to the rise in educational attainment, about 20 to 40 per cent is attributable to increasing research intensity, while only 10 to 30 per cent is due to long-run population growth in the idea-producing countries. [source]

    LAND PRICE, COLLATERAL AND ECONOMIC GROWTH,

    THE JAPANESE ECONOMIC REVIEW, Issue 4 2009
    MASAYA SAKURAGAWA
    This paper extends Kiyotaki and Moore's (1997) to an endogenous growth model and investigates the dynamic properties of a growing economy with binding credit constraint when land is used not only as an input of production but also as collateral. There exists a balanced growth path in an economy with binding credit constraint. In response to a once and for all productivity shock, the developed model shows the propagation mechanism among output, capital, bank credit and the land price in terms of the growth rate. The model's tractability allows us to derive interesting qualitative and quantitative findings on business cycles. [source]

    HUMAN CAPITAL ACCUMULATION, HOME PRODUCTION AND EQUILIBRIUM DYNAMICS*

    THE JAPANESE ECONOMIC REVIEW, Issue 3 2008
    YUNFANG HU
    In this paper, we construct a three-sector endogenous growth model in which long-run growth is propelled by human capital accumulation. We show that although the addition of a home sector to the standard two-sector endogenous growth model preserves the well-behaved balanced growth equilibrium properties, it generates new transitional dynamics around the balanced growth path. It is shown that, when there is a positive shock to physical capital, our model is more likely to exhibit paradoxical growth than are standard multisector endogenous growth models that exclude home production. Our analysis adds new results to those from the related literature on leisure. [source]

    AN ENDOGENOUS GROWTH MODEL WITH PUBLIC CAPITAL AND SUSTAINABLE GOVERNMENT DEBT,

    THE JAPANESE ECONOMIC REVIEW, Issue 3 2007
    ALFRED GREINER
    This paper presents and analyses an endogenous growth model with public capital and public debt. It is assumed that the ratio of the primary surplus to gross domestic income is a positive linear function of the debt income ratio which assures that public debt is sustainable. The paper then derives necessary conditions for the existence of a sustainable balanced growth path for the analytical model. Further, simulations are undertaken in order to gain insight into stability properties of the model and in order to analyse growth effects of deficit financed increases in public investment. The latter is done for the model on the sustainable balanced growth path as well as for the model along the transition path. [source]

    Altruism and Determinacy of Equilibria in Overlapping Generations Models with Externalities

    THE JAPANESE ECONOMIC REVIEW, Issue 2 2003
    Alain Venditti
    This paper deals with an OLG model with production and a single commodity, in which agents are assumed altruistic and the aggregate production function contains external effects. I prove that, if the technology satisfies a minor assumption, which encompasses positive and negative externalities, some curvature conditions on the utility function ensure local determinacy of stationary and period 2 equilibria. I prove that non-separable, strictly concave preferences are a fundamental ingredient for the occurrence of indeterminate equilibria. Finally, considering the case of unbounded growth, I establish that for any utility and production functions a unique balanced growth path is globally determinate. JEL Classification Numbers: C62, E32 [source]

    The Evolution of the Financial Contract in Economic Development

    THE MANCHESTER SCHOOL, Issue 2 2004
    Niloy Bose
    This paper presents an analysis of the joint determination of real and financial development. The analysis is based on a simple endogenous growth model in which a borrower's risk type is private information. Our innovation is to determine jointly the equilibrium loan contract and the economy's growth path. We show that at a low level of development an economy is likely to experience a large incidence of credit rationing. As capital accumulates, credit rationing may fall as a result of the emergence of a new contract regime in which agents mitigate information friction by making use of available information. This change in behaviour results in a higher capital accumulation path and a higher steady-state capital stock. [source]

    Debt, Growth and Budgetary Regimes

    BULLETIN OF ECONOMIC RESEARCH, Issue 3 2004
    Sugata Ghosh
    E62; H41; O40 Abstract Within the Barro (1990) model of productive public services, but with the inclusion of public debt, we derive and characterize on the balanced growth path, a set of welfare-maximizing fiscal rules under two budgetary regimes , one with only the standard dynamic government budget constraint, and the other involving the golden rule of public finance. We demonstrate analytically that the optimal fiscal policy differs in the two budgetary regimes considered. We also analyse two cases within the second regime: one, where the ratio of current spending to tax revenues is parametrically given, and another, where this ratio is optimally chosen by the government. [source]

    From rent seeking to human capital: a model where resource shocks cause transitions from stagnation to growth

    CANADIAN JOURNAL OF ECONOMICS, Issue 3 2008
    Nils-Petter Lagerlöf
    The latter is interpreted as trade or manufacturing. Rent seeking exerts negative externalities on the productivity of human capital. Adding shocks, in the form of fluctuations in the size of the contested resource, the model can replicate a long phase with stagnant incomes and high levels of rent seeking, interrupted by small, failed growth spurts, eventually followed by a permanent transition to a sustained growth path where rent seeking vanishes in the limit. The model also generates a rise and fall of the so-called natural resource curse: before the takeoff, an increase in the size of the contested resource has a positive effect on incomes; shortly after the takeoff, the effect is negative; and on the balanced growth path the growth rate of per capita income is independent of resource shocks. Les auteurs présentent un modèle de croissance où les agents divisent leur temps entre la chasse aux rentes (sous la forme de concurrence pour la ressource existante) et le travail productif dans le secteur du capital humain. Cette dernière activité peut se faire dans le commerce ou le secteur manufacturier. La chasse aux rentes a des effets externes négatifs sur la productivité du capital humain. Si l'on injecte des chocs prenant la forme de fluctuations dans la taille de la ressource contestée, le modèle peut générer une longue période durant laquelle les revenus stagnent et le niveau de chasse aux rentes est élevé, période interrompue par des petits sursauts de croissance qui tournent court, et suivie éventuellement par une transition permanente à un sentier de croissance soutenue où, à la limite, les activités de chasse aux rentes disparaissent. Le modèle génère aussi l'apparition et la disparition de la malédiction des ressources naturelles: avant que la croissance prenne son envol, un accroissement de la taille de la ressource contestée a un effet positif sur les revenus; peu après le décollage, l'effet est négatif; et sur le sentier de croissance équilibrée, le taux de croissance des revenus per capita est indépendant des chocs sur la ressource. [source]