|
| ||
|
|
||
Capital Accumulation (capital + accumulation)
Kinds of Capital Accumulation Selected AbstractsENDOGENOUS TECHNOLOGICAL INNOVATION, CAPITAL ACCUMULATION AND DISTRIBUTIONAL DYNAMICSMETROECONOMICA, Issue 4 2004Gilberto Tadeu Lima ABSTRACT This paper develops a post-Keynesian dynamic model of accumulation, growth and distribution in which endogenous technological innovation plays a significant role. Firms' rate of labour-saving technological innovation is made to depend non-linearly on the distributive (wage and profit) shares, with the latter determining both the incentives to innovate and the availability of funding to carry it out. As it turns out, the direction and the intensity of the effect of a change in distribution on the rates of accumulation and growth depend on the prevailing distribution, with a similar dependence applying,alongside the relative bargaining power of capitalists and workers,to the dynamic stability properties of the system. Hence, the model does not rely on full capacity utilization being reached for a change in the accumulation and growth regime to take place. [source] HUMAN CAPITAL ACCUMULATION, HOME PRODUCTION AND EQUILIBRIUM DYNAMICS*THE JAPANESE ECONOMIC REVIEW, Issue 3 2008YUNFANG 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] The Effects of a Baby Boom on Stock Prices and Capital Accumulation in the Presence of Social SecurityECONOMETRICA, Issue 2 2003Andrew B. Abel Is the stock market boom a result of the baby boom? This paper develops an overlapping generations model in which a baby boom is modeled as a high realization of a random birth rate, and the price of capital is determined endogenously by a convex cost of adjustment. A baby boom increases national saving and investment and thus causes an increase in the price of capital. The price of capital is mean,reverting so the initial increase in the price of capital is followed by a decrease. Social Security can potentially affect national saving and investment, though in the long run, it does not affect the price of capital. [source] Poverty Traps and Human Capital AccumulationECONOMICA, Issue 270 2001Carlotta Berti Ceroni In this paper I show that persistent inequality in the distribution of human capital and a negative relation between initial inequality and steady-state aggregate output may follow from the fact that the poor require relatively higher returns to increase expenditure on education. Moreover, I show that poverty traps emerging in models where individual transitions do not depend on aggregate dynamics, though not robust to the introduction of idiosyncratic uncertainty, may still be relevant observationally, if idiosyncratic shocks occur with low probability. In this context, I also analyse the implications of introducing a public education system. [source] The Quality of Education, Educational Institutions, and Cross-Country Differences in Human Capital AccumulationGROWTH AND CHANGE, Issue 3 2005SHAWN D. KNABB ABSTRACT Cross-country studies of education and economic prosperity often reach conflicting results when using growth rates as the measure of economic development. However, growth rates lack persistence over time and may not accurately measure long-term economic success over relatively short economic horizons. To overcome this potential specification problem, we estimate the relationship between key education variables and the capital to physical labor ratio. Using both cross-sectional and panel specifications, we find that both the primary-pupil,teacher ratio and decentralized education finance are associated with a larger capital to physical labor ratio. The relationship between human capital and expenditures, private education, and test scores are less robust. [source] Current and Future Problems of Capital Accumulation in the Chinese Pension SystemINTERNATIONAL SOCIAL SECURITY REVIEW, Issue 4 2000Zhang Jinchang The decree establishing a uniform system of basic pensions for employees in municipal and private enterprises, published by the State Council on 16 July 1997, reflects the Chinese Government's ultimate choice in favour of a partly private funded scheme to cover future pension needs. This article examines the reasons which led to this choice and asks how easy or otherwise it will be to find the capital to finance it. The authors believe that the partly private scheme is more advantageous than other methods and is right for China. Many issues, however, remain the focus of lively debate. In particular, a realistic coordination of individual and group accumulation is needed in order to avoid shortfalls in capital formation and the dangers of inadequate benefit provision. To safeguard the subsistence needs of former workers in state-owned enterprises, a system of equalization at national level is needed, and problems continue over how future pension insurance funds should best be managed. [source] The Interaction of Human and Physical Capital Accumulation: Evidence from Sub-Saharan Africa,KYKLOS INTERNATIONAL REVIEW OF SOCIAL SCIENCES, Issue 2 2005Robin Grier Summary In this paper, a simultaneous model of the evolution of human and physical capital in Sub-Saharan Africa is estimated. It can be shown that the two types of capital are jointly endogenous, in that increases in human capital significantly raise the per-worker physical capital stock, and increases in the physical capital significantly raise primary education levels. Unlike the implications of other recent papers, there is no evidence that tropical climates and ethnic diversity have a negative effect on the accumulation of capital in the region. [source] Why the Tigers Roared: Capital Accumulation and the East Asian MiraclePACIFIC ECONOMIC REVIEW, Issue 2 2002Peter E. Robertson Recent growth accounting studies of Hong Kong, Singapore, Taiwan and South Korea have found that the Solow residuals in these economies were relatively small. Given the high capital contributions, these results are often interpreted as evidence that factor accumulation, savings and investment were the principal cause of the East Asian miracle. This paper develops an alternative method of analysing these data, combining growth accounting methods with the linearized neoclassical growth model of Mankiw et al. (1992). The method explicitly quantifies the extent to which increases in productivity, as measured by the Solow residual, induced capital accumulation in these economies. It shows that in Hong Kong, Taiwan and South Korea, productivity growth contributed between half and two-thirds of the growth in GDP per worker over a 20-year period. [source] Taxation, Human Capital Accumulation and Economic GrowthTHE JAPANESE ECONOMIC REVIEW, Issue 2 2001Shuanglin Lin Previous studies have shown that tax rates and the growth rate of output are negatively related under the assumption that government wastes tax revenues. This paper shows that, if tax revenues are used for human capital accumulation, tax rates and the growth rate can be positively related. An increase in the human capital tax rate will increase (decrease) the growth rate when the initial tax rate is small (large). An increase in the physical capital tax rate will increase the growth rate when savings are completely interest-inelastic. The effects of income taxes and lump-sum taxes on growth are also analysed. JEL Classification Numbers: E6, H2, O4. [source] From Concrete and Clay to Planning in the Service of Capital Accumulation: Reworking Matthew Gandy's Conceptualization of Urban Form and Resistance in New York CityANTIPODE, Issue 5 2003Michael K Heiman First page of article [source] The Experience of Conditional Cash Transfers in Latin America and the CaribbeanDEVELOPMENT POLICY REVIEW, Issue 5 2006Sudhanshu Handa This article discusses the experience of six conditional cash transfer programmes in Latin America, a model of social safety-nets which has grown to dominate the social protection sector in the region during the past decade. While they have been generally successful in terms of achieving their core objective, it is still not clear whether these programmes constitute the most cost-efficient or sustainable solution to the development bottleneck they seek to address. Furthermore, the almost exclusive focus on the human capital accumulation of children leads to missed opportunties in terms of impact on household welfare and the broader rural development context. [source] WELFARE IMPACT OF A BAN ON CHILD LABORECONOMIC INQUIRY, Issue 4 2010JORGE SOARES This article presents a new rationale for imposing restrictions on child labor. In a standard overlapping generation model where parental altruism results in transfers that children allocate to consumption and education, the Nash-Cournot equilibrium results in suboptimal levels of parental transfers and does not maximize the average level of utility of currently living agents. A ban on child labor decreases children's income and generates an increase in parental transfers bringing their levels closer to the optimum, raising children's welfare as well as average welfare in the short run and in the long run. Moreover, the inability to work allows children to allocate more time to education, and it leads to an increase in human capital. Besides, to increase transfers, parents decrease savings and hence physical capital accumulation. When prices are flexible, these effects diminish the positive welfare impact of the ban on child labor. (JEL D91, E21) [source] Information Technology and Productivity Changes in the Banking IndustryECONOMIC NOTES, Issue 1 2007Luca Casolaro This paper analyses the effects of investment in information technologies (IT) in the financial sector using micro-data from a panel of 600 Italian banks over the period 1989,2000. Stochastic cost and profit functions are estimated allowing for individual banks' displacements from the best practice frontier and for non-neutral technological change. The results show that both cost and profit frontier shifts are strongly correlated with IT capital accumulation. Banks adopting IT capital-intensive techniques are also more efficient. On the whole, over the past decade IT capital-deepening contribution to total factor productivity growth of the Italian banking industry can be estimated in a range between 1.3 and 1.8 per cent per year. [source] Optimal Monetary Policy with Price and Wage RigiditiesECONOMIC NOTES, Issue 1 2006Massimiliano Marzo In this paper, I search for an optimal configuration of parameters for variants of the Taylor rule by using an accurate second-order welfare-based method within a fully microfounded dynamic stochastic model, with price and wage rigidities, without capital accumulation. A version of the model with distortionary taxation is also explicitly tested. The model is solved up to second-order solution. Optimal rules are obtained by maximizing a conditional welfare measure, differently from what has been done in the current literature. Optimal monetary policy functions turn out to be characterized by inflation targeting parameter lower than in empirical studies. In general, the optimal values for monetary policy parameters depend on the degree of nominal rigidities and on the role of fiscal policy. When nominal rigidities are higher, optimal monetary policy becomes more aggressive to inflation. With a tighter fiscal policy, optimal monetary policy turns out to be less aggressive to inflation. Impulse-response functions based on second-order model solution show a non-affine pattern when the economy is hit by shocks of different magnitude. [source] Public Investment, the Stability Pact and the ,Golden Rule'FISCAL STUDIES, Issue 2 2000Fabrizio Balassone Abstract The fiscal rules set in the Treaty of Maastricht and in the Stability and Growth Pact have sometimes been criticised as an excessively binding constraint for appropriate counter-cyclical action. The risk that the rules may permanently reduce the public sector's contribution to capital accumulation has also been pointed out. In this framework, the adoption of a ,golden rule' has been suggested. Starting from the recent debate, this paper tackles two questions: (a) the implications of the Pact for public investment and (b) the pros and cons of introducing a golden rule in EMU's fiscal framework, given the objectives of low public debts and adequate margins for a stabilising budgetary policy. The analysis suggests that the rules set in the Treaty and in the Pact may negatively influence public investment spending. However, the golden rule, although intuitively appealing, does not seem to be an appropriate solution to the problem. [source] Optimal Factor Taxation under Wage Bargaining: A Dynamic PerspectiveGERMAN ECONOMIC REVIEW, Issue 2 2008Erkki Koskela Optimal taxation; imperfectly competitive labour markets; capital accumulation Abstract. We consider the issue of steady-state optimal factor taxation in a Ramsey-type dynamic general equilibrium setting with two distinct distortions: (i) taxes on capital and labour are the only available tax instruments for raising revenues and (ii) labour markets are subject to an inefficiency resulting from wage bargaining. If considered in isolation, the two distortions create conflicting demands on the wage tax, while calling for a zero capital tax. By combining the two distortions, we arrive at the conclusion that both instruments should be used, implying that the zero capital tax result in general is no longer valid under imperfectly competitive labour markets. [source] Effectiveness versus Efficiency: Growth-Accelerating Policies in a Model of Growth without Scale EffectsGERMAN ECONOMIC REVIEW, Issue 3 2006Bettina 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] Innovation and Regional Growth in the Enlarged Europe: The Role of Local Innovative Capabilities, Peripherality, and EducationGROWTH AND CHANGE, Issue 4 2005RICCARDO CRESCENZI ABSTRACT In this paper, a formal model for the relationship between innovation and growth in European Union regions is developed drawing upon the theoretical contribution of the systems of innovation approach. The model combines the analytical approach of the regional growth models with the insights of the systemic approach. The cross-sectional analysis, covering all the Enlarged Europe (EU-25) regions (for which data are available), shows that regional innovative activities (for which a specific measure is developed) play a significant role in determining differential regional growth patterns. Furthermore, the model sheds light on how geographical accessibility and human capital accumulation, by shaping the regional system of innovation, interact (in a statistically significant way) with local innovative activities, thus allowing them to be more (or less) effectively translated into economic growth. The paper shows that an increase in innovative effort is not necessarily likely to produce the same effect in all EU-25 regions. Indeed, the empirical analysis suggests that in order to allow innovative efforts in peripheral regions to be as productive as in core areas, they need to be complemented by huge investments in human capital. [source] ON THE DISTRIBUTIONAL CONSEQUENCES OF CHILD LABOR LEGISLATION*INTERNATIONAL ECONOMIC REVIEW, Issue 3 2005Dirk Krueger This article studies the effects of child labor legislation on human capital accumulation and the distribution of wealth and welfare. We calibrate our model to U.S. data circa 1880 and find that the consequences of restricting child labor or providing tax-financed education depend on the main source of individual household income. Households with significant financial assets unambiguously lose from government intervention, whereas high-wage workers benefit most from a child labor ban, and low-wage workers benefit most from free education. Introducing free education results in substantial welfare gains, whereas a child labor ban induces small welfare losses. [source] On the stabilizing virtues of imperfect competitionINTERNATIONAL JOURNAL OF ECONOMIC THEORY, Issue 4 2005Thomas Seegmuller D43; E32 We analyze the stabilizing role of imperfect competition on fluctuations as a result of indeterminacy and endogenous cycles. In this paper, imperfect competition is a source of monopoly profits, because of producer market power. Considering an overlapping generations model with capital accumulation and elastic labor supply, we show that under imperfect competition, the emergence of endogenous fluctuations requires a weaker substitution between production factors than under perfect competition. In this sense, imperfect competition stabilizes fluctuations. However, we find an opposite conclusion concerning the elasticity of labor supply. Indeed, endogenous fluctuations are compatible with a less elastic labor supply under imperfect competition. [source] Financial Markets, Development and Economic Growth: Tales of Informational AsymmetriesJOURNAL OF ECONOMIC SURVEYS, Issue 3 2004Salvatore Capasso Abstract., The development of financial systems is very often characterised by the development of innovative financial contracts which allow a more efficient allocation of resources and a higher level of capital productivity and economic growth. By exploiting the microeconomic theory of the optimal financial contract under asymmetric information, economists have recently managed to shed new light on the well studied issue of the relationship between financial market development and economic growth. This paper reviews the most recent progress of this literature which shows that the amount of information asymmetry in the credit market and the degree of heterogeneity between borrowers (typically firms) and lenders (typically workers or savers) determine the nature of the financial system. Differences in endowments and in the level of information distribution can give rise to very different financial contracts which affect, and in turn are affected, by capital accumulation and growth. [source] Gender, social capital and information exchange in rural UgandaJOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 1 2008Enid Katungi Abstract Changing agricultural research and extension systems mean that informal mechanisms of information diffusion are often the primary source of information about improved seed and practices for farmers in sub-Saharan Africa. This paper investigates the interactions between gender, social capital and information exchange in rural Uganda. Within the framework of farmer-to-farmer models, we conceptualise the informal information diffusion process to comprise social capital accumulation and information exchange. We assume that each agent participates in information exchange with a fixed (predetermined) level of social capital and examine how endowments of social capital influence information exchange, paying close attention to gender differences. A multinomial logit model is used to analyse multiple participation choices of information exchange facing the farmer. Findings demonstrate that social capital is an important factor in information exchange, with men generally having better access to social capital than women. We also find strong evidence in support of group-based technology dissemination systems. Copyright © 2008 John Wiley & Sons, Ltd. [source] The distributive consequences of machismo: a simulation analysis of intra-household discrimination,JOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 8 2006José Cuesta Abstract Empirical evidence questions the unitary allocation model of the household that underpins the standard measurement of monetary poverty and inequality. Intra-household gender discrimination has been widely shown to shape expenditure decisions, nutrition status, and human capital accumulation of household members. However, conventional poverty and inequality analyses are conducted for the household as a whole, which might lead to different conclusions compared with studies based on individuals. Using recent developments in intra-household bargaining modelling, this paper constructs non-cooperative allocation rules dominated by gender discrimination among household members. Estimates for Chile show a substantial worsening of poverty and inequality under such allocation rules. This suggests that intra-household discrimination deserves some of the attention typically directed to extra-household discrimination in labour markets, access to public services or political participation. Copyright © 2006 John Wiley & Sons, Ltd. [source] International Asset Trade, Capital Income Taxation, and Specialization PatternsJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 5 2008KOICHI FUTAGAMI This paper constructs a small economy version of dynamic Heckscher-Ohlin models with overlapping generations and analyzes effects of capital income taxation on the specialization pattern of the country. It is shown that once international asset trade is allowed, in the presence of international technological asymmetries, a small country eventually leads to perfect specialization in our overlapping generations model. It is also shown that the residence-based tax has no effect on the specialization pattern while the source-based tax has a negative effect on capital accumulation and thereby it can affect the specialization pattern of the small country. [source] Intergenerational Allocation of Government Expenditures: Externalities and Optimal TaxationJOURNAL OF PUBLIC ECONOMIC THEORY, Issue 1 2008KAZI IQBAL This paper studies optimal capital and labor income taxes when the benefits of public goods are age-dependent. Provided the government can impose a consumption tax, it can attain the first-best resource allocation. This involves the uniform taxation of the cohorts' labor income and a zero capital income tax. With no consumption tax and optimally chosen government spending, labor income should be taxed nonuniformly across cohorts and the capital income tax should be nonzero. Deviations of the public goods from their respective optima create distortions. These affect the labor supply decisions of both cohorts and capital accumulation, providing a further reason to tax (or subsidize) capital income. [source] AN OBTRUSIVE REMARK ON CAPITAL AND COMPARATIVE STATICSMETROECONOMICA, Issue 1 2009Gaetano Bloise ABSTRACT We present a simple comparative statics analysis of steady-state equilibria in overlapping generations economies with capital accumulation. We regard comparative statics as paradoxical whenever an exogenous increase in saving propensity induces a decrease (an increase) in consumption at the steady state when interest rate is positive (negative). It is shown that there is an exact relation between paradoxical comparative statics and a perverse intersection of properly identified curves of demand for and supply of capital in value. The demand curve for capital in value coincides with that of neo-Ricardian analysis. We relate our conclusions to some old and recent issues in capital theory. [source] MICRO EMPIRICAL RESULTS OF A KALECKIAN-TYPE CAPITAL ACCUMULATION MODEL COMPARED WITH MACRO RESULTS FOR SOME EUROPEAN ECONOMIESMETROECONOMICA, Issue 2 2008James P. Gander ABSTRACT A micro economic model of the rate of capital accumulation that corresponds to a macro Kaleckian-type post-Keynesian investment function is hypothesized. Firm-level accounting data on industrial and commercial firms over the time period 1994,2000 for three European economies and the USA are used to test the consistency of the micro model with the macro model of Hein and Ochsen (2003, Metroeconomica, 54, pp. 404,33). The micro empirical results were very consistent with the macro results, suggesting a strong micro foundation to the macro investment function. In addition country differences and industry differences were included in the analysis. [source] With Friends Like These: Endogenous Labor Market Segregation with Homogeneous, Nonprejudiced AgentsAMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, Issue 3 2009Article first published online: 3 JUN 200, Tavis Barr In the economics literature, labor market segregation is typically assumed to arise either from prejudice (Becker 1971) or from group differences in human capital accumulation (Benabou 1993; Durlauf 2006; Fryer 2006). Many sociological studies, by contrast, consider social network structure as an embodiment of various forms of social capital, including the creation of obligations, information channels, and enforceable trust (Coleman 1988; Portes and Sensenbrenner 1993). When firms hire by referral, social network segregation can lead to labor market segregation (Tilly 1998). Various social network structures may arise from the actions of self-interested individuals (Watts and Strogatz 1998; Jackson 2006); by incorporating concepts of social capital into an economic framework of profit-maximizing firms, this article develops a model of labor markets in which segregation arises endogenously even though agents are homogeneous and have no dislike for each other. Firms hire through referrals, and can enforce discipline by bribing a referrer to prevent a hiree from getting any outside job offers from other friends if he or she shirks. This is possible only if social networks are reasonably closed, so that the referee knows a majority of his or her friends' friends. By segregating into small communities, workers can more effectively create closed social networks. Social networks with different reservation wages will receive different wages; firms can induce such segregation and wage discrimination in the interest of profit. Workers may not benefit from such segregation, except as a best response to being in a society where it already exists; the "friends" in these social networks act as a worker discipline device, and in this way treat each other inimically. [source] Technological Change and Transition: Relative Contributions to Worldwide Growth During the 1990s,OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 4 2008Oleg Badunenko Abstract In this paper we use the Kumar and Russell [American Economic Review (2002) Vol. 92, pp. 527,548] growth-accounting procedure to examine cross-country growth during the 1990s. Using a data set comprising developed, newly industrialized, developing and transitional economies, we decompose the growth of output per worker into components attributable to technological catch-up, technological change and capital accumulation. In contrast to the study by Kumar and Russell, which concludes that capital deepening is the major force of growth and change in the world income per worker distribution over the 1965,90 period, our analysis shows that, during the 1990s, the major force in the further divergence of the rich and the poor is due to technological change, whereas capital accumulation plays a lesser and opposite role. Finally, although on average we find that transitional economies perform similar to the rest of the world, the procedure is able to discover some interesting patterns within the set of transitional countries. [source] Investment and Uncertainty: A Theory-based Empirical Approach,OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 5 2007Mikael Carlsson Abstract This paper provides empirical evidence on the dynamic effects of uncertainty on firm-level capital accumulation. A novelty in this paper is that the firm-level uncertainty indicator is motivated and derived from a theoretical model, the neoclassical investment model with time to build. This model also serves as the base for the empirical work, where an error-correction approach is employed. I find a negative effect of uncertainty on capital accumulation, both in the short run and the long run. This outcome cannot be explained by the model alone. Instead, the results suggest that the predominant mechanism at work stems from irreversibility constraints. [source] | |||||||||||||||||||||||||||||||