Capital Accumulation and Economic Growth in a Small Open by Stephen J. Turnovsky

By Stephen J. Turnovsky

Financial development is an argument of basic difficulty to coverage makers in either built and constructing economies. accordingly, progress thought has lengthy occupied a critical function in economics. during this booklet, popular progress theorist Stephen J. Turnovsky investigates the method of monetary development in a small open economic climate, exhibiting that it really is delicate to the efficient constitution of the financial system. The publication includes 3 elements, starting with types the place the one intertemporally workable equilibrium is one during which the financial system is usually on its balanced development direction. Empirical proof indicates really sluggish speeds of convergence so the second one a part of the publication seems at numerous other ways during which transitional dynamics should be brought. within the 3rd and ultimate half, the writer applies the expansion version to the problem of international relief, focusing particularly on even if relief could be untied or tied to the buildup of public capital.

Show description

Read Online or Download Capital Accumulation and Economic Growth in a Small Open Economy PDF

Best development & growth books

The Economics of Soviet Break-up (Routledge Studies of Societies in Transition, 1)

This ebook analyzes the consequences of the break-up of the Soviet Union into fifteen self reliant states. issues mentioned comprise: * prior and current fiscal kin among the republics, and forecasts for the longer term * dialogue of Customs Unions, financial Union or funds Union as attainable methods ahead for those states * financial integration conception * how the states of the Soviet Union functioned earlier than the dissolution.

Kerala's Economic Development

The well known 'Kerala version' of improvement has been the point of interest of dialogue for the previous a number of years and the 1st version of this booklet, released in 1999, was once an important contribution to that discuss. This revised variation focuses no longer rather a lot at the extra well-researched determinants of Kerala's good fortune yet at the hitherto missed monetary backwardness of the country, the industrial reforms applied because the early Nineteen Nineties, the wide fiscal adjustments throughout the Nineties, and the industrial difficulties and improvement matters dealing with Kerala this day.

Global Inequality: A New Approach for the Age of Globalization

One of many world’s major economists of inequality, Branko Milanovic provides a daring new account of the dynamics that force inequality on an international scale. Drawing on substantial information units and state-of-the-art study, he explains the benign and malign forces that make inequality upward push and fall inside of and between countries.

Extra resources for Capital Accumulation and Economic Growth in a Small Open Economy

Sample text

This component reflects the fact that an additional source of benefit from higher capital stock is the reduction of the installation costs (which depend upon I/K) associated with new investment. 1 ð2:4cÞ The government in this canonical economy plays a limited role. It levies income taxes on output and foreign interest income, it taxes consumption, and then rebates all tax revenues. 1d) leads to: B_ ¼ Y þ rB À C À I ½1 þ ðh=2ÞðI=K ފ ð2:6Þ which describes the country’s current account. It asserts that the rate at which the economy accumulates foreign bonds equals its trade balance, Y À C À I (1 þ (h/2)(I/K)), plus the interest it is earning on its capital account.

14) holds, so that a steady asymptotic growth path for capital does indeed exist. 13) would have more solutions and quite plausibly a multiplicity of feasible solutions. 1 Phase diagram q1 ¼ ½1 þ hrð1 À sb ފ À qffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi  Ãffi ½1 þ hrð1 À sb ފ2 À 1 þ 2hArð1 À sy Þ ð2:15aÞ q2 ¼ ½1 þ hrð1 À sb ފ þ qffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi  Ãffi ½1 þ hrð1 À sb ފ2 À 1 þ 2hArð1 À sy Þ ð2:15bÞ indicating the potential existence for two steady equilibrium growth rates for capital.

On the one hand, an increase in government expenditure raises the productivity of capital, while at the same time it absorbs some of the output.

Download PDF sample

Rated 5.00 of 5 – based on 30 votes