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Equilibrium Rate (equilibrium + rate)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

An Estimate of the Range of Equilibrium Rates of Unemployment for Australia

THE ECONOMIC RECORD, Issue 236 2001
J. N. Lye
This paper estimates the range of equilibrium rates of unemployment for Australia. The estimation technique nests a unique equilibrium rate of unemployment as a special case. It is found for the period 1965,97 that a range of equilibria of at least 6.6 percentage points of unemployment exists in Australia. The lower limit of this range, which is the minimum rate of unemployment consistent with non-increasing inflation, was 2,3 per cent in the 1960s, jumped in the early 1970s and was about 5.6 per cent during the 1990s. [source]

Research and Development, Regional Spillovers and the Location of Economic Activities

THE MANCHESTER SCHOOL, Issue 4 2004
Alberto Franco Pozzolo
I present an endogenous growth model that studies the effects of local inter-industry and intra-industry knowledge spillovers in R&D on the allocation of economic activities between two regions. The equilibrium is the result of a tension between a centripetal force, the cost of transporting goods from one region to the other, and a centrifugal force, the cost increase associated with life in a more crowded area. The presence of local knowledge spillovers, which determines the concentration of the R&D activities within one region, also introduces a further centripetal force that makes a symmetric allocation of the economic activities impossible. The concentration of R&D fosters the equilibrium rate of growth of the economy with respect to the case of no-integration, by increasing the positive effect of local knowledge spillovers. Contrary to the findings of the majority of models in the new economic geography literature, within this framework a reduction in transport costs may be associated with a more even geographical distribution of economic activities. [source]

Housing Markets And Regional Unemployment Flows In Great Britain

THE MANCHESTER SCHOOL, Issue 2 2003
Martin T. Robson
Over the past 20 years, there has been a great deal of interest from academic economists and policymakers in the UK in the contribution of the housing market to regional disparities in unemployment. However, despite a considerable body of research, there remains a great deal of uncertainty concerning the role played by different features of the housing market in shaping the regional pattern of unemployment. In this study, we aim to gain a deeper understanding of this issue by examining the relationship between housing market variables and the flows into and out of regional unemployment. Our findings indicate that both the level of regional house prices and the housing tenure mix have significant effects on the rate of flows into and out of regional unemployment and hence upon the equilibrium rate of unemployment in a region. In particular, we find that regions with a relatively high level of house prices and/or a low proportion of social rented housing will tend to have a relatively low equilibrium rate of unemployment, other things equal. [source]

Non-Linear Dynamics of Inflation in High Inflation Economies

THE MANCHESTER SCHOOL, Issue 2000
J. D. Byers
Attempts by governments to finance a substantial proportion of expenditure by seigniorage can lead to multiple inflationary equilibria. Theoretical models suggest that, in these circumstances, inflation follows a non-linear process with up to three steady states and that the stability characteristics of these depend on the process by which expectations are formed. In this paper we show that the exponential smooth transition autoregression (ESTAR) model is capable of exhibiting the required characteristics and so provides a suitable vehicle for analysing inflation in high inflation economies. We estimate ESTAR models for three well-known inflationary episodes,the German hyperinflation of the early 1920s and post-Second World War inflations in Argentina and Brazil. Our results imply that, during the periods in question, each of these economies possessed a stable low-level equilibrium rate of inflation but that the variances of inflation shocks were large enough to drive each economy into a high inflation state. For Brazil, this high inflation state is stable around a particular value but in the cases of Argentina and Germany the high inflation state is characterized by inflation cycles. [source]

The Equilibrium Yen,Dollar Rate: 1976,91

ASIAN ECONOMIC JOURNAL, Issue 1 2002
Anthony De Carvalho
This paper presents a definition of the equilibrium exchange rate that is based on a modified version of purchasing power parity (PPP) for traded goods. Employing constant elasticity of substitution (CES) production functions and data from 28 three-digit international standard industrial classification (ISIC) manufacturing industries, the equilibrium Yen-Dollar rate is calculated for the period between 1976 and 1991 (a time in which the Yen appreciated markedly against the Dollar) showing that the actual Yen-Dollar rate closely tracked the equilibrium rate over that time. The results suggest that strong growth in Japanese labor productivity, coupled with Japan's relatively low capital-labor elasticity of sub-stitution, were the main contributors to the Yen's long-run appreciation. [source]

A Monetary Approach to Exchange Market Disequilibrium in Australia: 1975,97

AUSTRALIAN ECONOMIC PAPERS, Issue 2 2003
M. A. Taslim
Under a managed float, the central bank may respond to an exchange market disequilibrium by changing either the international reserves or the exchange rate or both such that neither the reserve changes nor the exchange rate movements convey an unambiguous indication of the nature or extent of the disequilibrium. Girton and Roper (1977) suggested an index, namely the exchange market pressure, to capture the disequilibrium. This paper utilises a similar framework to study the exchange market pressure in Australia during 1975,1997 and reserve transactions. It is found that there were substantial reserve transactions in the face of exchange market pressure even after the switch to the floating rate system and the deregulation of the financial system. As a result of these transactions, sharp fluctuations in the exchange rate were moderated and the actual exchange rate appeared to broadly follow the market equilibrium rate. [source]

Regimes of Interest Rates, Income Shares, Savings and Investment: A Kaleckian Model and Empirical Estimations for some Advanced OECD Economies

METROECONOMICA, Issue 4 2003
Eckhard Hein
ABSTRACT The first part of the paper deals with the effects of an exogenous variation in the monetary interest rate on the real equilibrium position of the economic system in a Kaleckian effective demand model. Different regimes of accumulation are derived and it is shown that a negative relation between the interest rate and the equilibrium rates of capacity utilization, accumulation and profit usually expected in post-Keynesian theory only exists under special conditions. In the second part the model is applied to the data of some major OECD countries, the relevant coefficients are estimated and the relevance for an explanation of the course of GDP and capital stock growth since the early 1960s is discussed. [source]

An Estimate of the Range of Equilibrium Rates of Unemployment for Australia

THE ECONOMIC RECORD, Issue 236 2001
J. N. Lye
This paper estimates the range of equilibrium rates of unemployment for Australia. The estimation technique nests a unique equilibrium rate of unemployment as a special case. It is found for the period 1965,97 that a range of equilibria of at least 6.6 percentage points of unemployment exists in Australia. The lower limit of this range, which is the minimum rate of unemployment consistent with non-increasing inflation, was 2,3 per cent in the 1960s, jumped in the early 1970s and was about 5.6 per cent during the 1990s. [source]

The Effectiveness of Incomes Policies, in Australia Bargaining and Inflation Targetting Enterprise

AUSTRALIAN ECONOMIC PAPERS, Issue 1 2004
Jenny N. Lye
This paper updates earlier estimates that show the existence of a range of equilibrium rates of unemployment in Australia. Within the range of equilibria framework, the paper goes on to test the effectiveness of incomes policies, enterprise bargaining and inflation-target based monetary policy for influencing the rate of inflation in Australia in the period 1965 to 2001. Incomes policies, especially the Accord, and enterprise bargaining are shown to have caused permanent reductions in the rate of inflation. The inflation-target based monetary policy is shown to be associated with, but is not shown to have caused, a reduced impact on inflation of changes in the level of activity. [source]