scholarly journals NONSEPARABLE PREFERENCES DO NOT RULE OUT AGGREGATE INSTABILITY UNDER BALANCED-BUDGET RULES: A NOTE

2016 ◽  
Vol 21 (1) ◽  
pp. 259-277 ◽  
Author(s):  
Nicolas Abad ◽  
Thomas Seegmuller ◽  
Alain Venditti
Keyword(s):  
Labor Income ◽  
Tax Rates ◽  
Neoclassical Growth Model ◽  
Elasticity Of Intertemporal Substitution ◽  
Nonseparable Utility ◽  
Nonseparable Preferences ◽  
Balanced Budget ◽  
Neoclassical Growth ◽  
Rule Out

We investigate the role of nonseparable preferences in the occurrence of macroeconomic instability under a balanced-budget rule where government spending is financed by a tax on labor income. Considering a one-sector neoclassical growth model with a large class of nonseparable utility functions, we find that expectations-driven fluctuations occur easily when consumption and labor are Edgeworth substitutes or weak Edgeworth complements. Under these assumptions, an intermediate range of tax rates and a sufficiently low elasticity of intertemporal substitution in consumption lead to instability.

Technical Progress and the Natural Rate in Models of the UK Economy

1998 ◽  
Vol 164 ◽  
pp. 80-89 ◽  
Author(s):  
Keith B. Church ◽  
Peter R. Mitchell ◽  
Joanne E. Sault ◽  
Kenneth F. Wallis
Keyword(s):  
Growth Rate ◽  
Technical Progress ◽  
Real Wages ◽  
Natural Rate ◽  
Simulation Experiments ◽  
Neoclassical Growth Model ◽  
Percentage Points ◽  
The Uk ◽  
Neoclassical Growth

This article analyses the role of technical progress in three models of the UK economy. In the standard neoclassical growth model, the growth of the economy is dictated by the growth rate of technical progress plus that of the population. Our two simulation experiments, increasing the level of technical progress by 1 per cent and the growth rate by 0.1 percentage points, suggest that technological progress plays the same role in these large macroeconometric models. In both cases the result is higher output and real wages. However adjustment following the shocks is protracted, giving substantial technological unemployment which in several instances is permanent.

scholarly journals The Role of Human Capital in Economic Growth: A Comparative Study of Pakistan and India

2000 ◽  
Vol 39 (4II) ◽  
pp. 451-473 ◽  
Author(s):  
Qaisar Abbas
Keyword(s):  
Economic Growth ◽  
Formal Model ◽  
Adam Smith ◽  
Division Of Labour ◽  
Neoclassical Growth Model ◽  
The Past ◽  
Per Capita ◽  
Intellectual Challenge ◽  
Neoclassical Growth

Economic Growth has posed an intellectual challenge ever since the beginning of systematic economic analysis. Adam Smith claimed that growth was related to division of labour, but he did not link them in a clear way. After that Thomas Malthus developed a formal model of a dynamic economic growth process in which each country converge toward stationary per capita income. According to this model, death rates fall and fertility rises when income exceed the equilibrium, and opposite occur when incomes are less than that level. Despite the influence of the Malthusian model in nineteenth century economists, fertility feel rather than rose as income grew during the past 150 years in the west and other parts of the world. The Neoclassical growth model of Solow (1956), which has been for the past thirty years the central framework to account for economic growth, focuses on exogenous technical population factors that determine output-input ratios, responded to the failure of Malthusian model.

scholarly journals Forces Shaping Hours Worked in the OECD, 1960–2004

2011 ◽  
Vol 3 (4) ◽  
pp. 27-52 ◽  
Author(s):  
Cara McDaniel
Keyword(s):  
United States ◽  
Productivity Growth ◽  
Income Tax ◽  
The United States ◽  
Labor Income ◽  
Tax Rates ◽  
Home Production ◽  
Catch Up ◽  
Key Features

The goal of this paper is to examine the role of taxes and productivity growth as forces influencing market hours. To achieve this goal, the paper considers a calibrated growth model extended to include home production and subsistence consumption, both of which are found to be key features influencing market hours. The model is simulated for 15 OECD countries. The primary force driving changes in market hours is found to be changing labor income tax rates. Productivity catch-up relative to the United States is found to be an important secondary force. (JEL E24, H24, H31, J22, J24)

scholarly journals The Role of Human Capital in Economic Growth in Coastal Provinces of Southern Central Vietnam

2014 ◽  
Vol 221 ◽  
pp. 02-19
Author(s):  
DAO HẠ THỊ THIỀU ◽  
Khoa Nguyễn Đăng
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Fixed Effect Model ◽  
Balance Sheets ◽  
Neoclassical Growth Model ◽  
Effect Model ◽  
Central Vietnam ◽  
Southern Central ◽  
Neoclassical Growth

To examine the role of human capital in economic growth in coastal provinces of Southern Central Vietnam (SCV), the research employs data from balance sheets of eight provinces in this region and a neoclassical growth model with an extended Cobb-Douglas production function including the following variables: output, capital, labor, human capital and other macroeconomic variables that have effects on economic development. The estimation results based on the fixed effect model show that the economic growth is affected by capital, labor, human capital, FDI, public expenditure, and agricultural production. Of this variable, the human capital is represented by average schooling year of laborers with an estimated effect of nearly 0.43% per a one-percent increase in the average schooling year.

Home Equity and Labor Income: The Role of Constrained Mobility

2020 ◽  
Author(s):  
Radhakrishnan Gopalan ◽  
Barton Hamilton ◽  
Ankit Kalda ◽  
David Sovich
Keyword(s):  
Law Enforcement ◽  
Labor Income ◽  
Detailed Data ◽  
Job Tenure ◽  
Home Equity ◽  
Employment Opportunities ◽  
Nonlinear Relation ◽  
Local Employment

Abstract Using detailed data for U.S. homeowners, we document a negative, nonlinear relation between the loan-to-value ratio (LTV) of homeowners' primary residence and their labor income. Consistent with high LTV individuals experiencing constrained mobility, we find stronger effects among subprime, liquidity-constrained individuals and those living in regions with limited alternative local employment opportunities and strict noncompete law enforcement. Though high LTV individuals are less likely to move across MSAs, they are more likely to change jobs without changing their residence. We find no effects among similar neighboring renters employed at the same firm and with a similar job tenure.

scholarly journals Effects of Rifaximin on Luminal and Wall-Adhered Gut Commensal Microbiota in Mice

2021 ◽  
Vol 22 (2) ◽  
pp. 500
Author(s):  
Marina Ferrer ◽  
Mònica Aguilera ◽  
Vicente Martinez
Keyword(s):  
Fluorescent In Situ Hybridization ◽  
Fragment Length Polymorphism ◽  
Functional Gastrointestinal Disorders ◽  
Antibacterial Properties ◽  
Broad Spectrum Antibiotic ◽  
Commensal Microbiota ◽  
Bacterial Biodiversity ◽  
Rule Out

Rifaximin is a broad-spectrum antibiotic that ameliorates symptomatology in inflammatory/functional gastrointestinal disorders. We assessed changes in gut commensal microbiota (GCM) and Toll-like receptors (TLRs) associated to rifaximin treatment in mice. Adult C57BL/6NCrl mice were treated (7/14 days) with rifaximin (50/150 mg/mouse/day, PO). Luminal and wall-adhered ceco-colonic GCM were characterized by fluorescent in situ hybridization (FISH) and microbial profiles determined by terminal restriction fragment length polymorphism (T-RFLP). Colonic expression of TLR2/3/4/5/7 and immune-related markers was assessed (RT-qPCR). Regardless the period of treatment or the dose, rifaximin did not alter total bacterial counts or bacterial biodiversity. Only a modest increase in Bacteroides spp. (150 mg/1-week treatment) was detected. In control conditions, only Clostridium spp. and Bifidobacterium spp. were found attached to the colonic epithelium. Rifaximin showed a tendency to favour their adherence after a 1-week, but not 2-week, treatment period. Minor up-regulation in TLRs expression was observed. Only the 50 mg dose for 1-week led to a significant increase (by 3-fold) in TLR-4 expression. No changes in the expression of immune-related markers were observed. Rifaximin, although its antibacterial properties, induces minor changes in luminal and wall-adhered GCM in healthy mice. Moreover, no modulation of TLRs or local immune systems was observed. These findings, in normal conditions, do not rule out a modulatory role of rifaximin in inflammatory and or dysbiotic states of the gut.

Sign in / Sign up

Export Citation Format

Share Document