Nicola Experimenting with Dynamic Macromodels

Growth and Cycles
2008
ISBN: 978-3-540-77397-9
Verlag: Springer Berlin Heidelberg
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, Band 608, 265 Seiten

Reihe: Lecture Notes in Economics and Mathematical Systems

This book presents a macroeconomic dynamic model à la Solow-Swan, including the market for labor, in a discrete time structure. The model is expanded to include expenditure on R&D and public expenditure on infrastructure. For each of the three models the results are shown in time series figures, which demonstrate that even small changes in the parameters produce responses in the time behavior of the main variables: from steady growth, to regular cycles, to chaotic-like time paths.

Autoren/Hrsg.

Nicola, Piercarlo

Inhaltsverzeichnis

1;Preface;7
2;Contents;11
3;Part I Basics;16
3.1;1 Foundations of Macroeconomic Dynamics;17
3.1.1;1.1 Introduction;17
3.1.2;1.2 Growth and Cycles;18
3.1.3;1.3 Solow’s Model: Continuous Time Version;20
3.1.4;1.4 Harrod–Domar’s Alternative;23
3.1.5;1.5 Discrete Time Formulation of Solow’s Model;24
3.1.6;1.6 Continuous Versus Discrete Time;26
3.1.7;1.7 Aggregation;26
3.2;2 Population Dynamics and the Labour Market;29
3.2.1;2.1 Laws of Population Dynamics;29
3.2.2;2.2 Labour Supply;32
3.2.3;2.3 Labour Demand;34
3.2.4;2.4 Market Equilibrium;35
3.3;3 Production Functions;37
3.3.1;3.1 Introduction;37
3.3.2;3.2 Cobb–Douglas Production Functions;38
3.3.3;3.3 CES Production Functions;39
3.3.4;3.4 Leontief Production Functions;41
3.3.5;3.5 Remainder;42
4;Part II Simple Dynamic Macromodels;43
4.1;4 A Model Without R&D and Public Expenditure;45
4.1.1;4.1 Introduction;45
4.1.2;4.2 The Macro Model;46
4.1.3;4.3 Choice of Functions to Implement the Model;49
4.2;5 Some Determinants of Endogenous Growth;53
4.2.1;5.1 Introduction;53
4.2.2;5.2 Expenditure on R&D;53
4.2.3;5.3 Endogenous Technical Progress;54
4.2.4;5.4 Choice of Functions for the Simulations;58
4.3;6 Public Expenditure and Taxes;59
4.3.1;6.1 Introduction;59
4.3.2;6.2 Modelling Taxes and Public Expenditure;59
4.3.3;6.3 The Production Sector of the Economy;60
4.3.4;6.4 A Macromodel with R&D and Public Expenditure;61
4.3.5;6.5 Choosing the Functions for the Simulations;63
5;Part III Computer Simulations;65
5.1;7 Stationary Population: Cobb – Douglas Simulations;69
5.1.1;7.1 Preliminary;69
5.1.2;7.2 No R&D Activity;70
5.1.3;7.3 Positive R&D Expenditure;90
5.2;8 Stationary Population: CES Simulations;105
5.2.1;8.1 Introduction;105
5.2.2;8.2 No R&D Activity;106
5.2.3;8.3 Positive R&D Expenditure;133
5.2.4;8.4 Afterthought;147
5.3;9 Stationary Population: Leontief Simulations;149
5.3.1;9.1 Introduction;149
5.3.2;9.2 No R&D Activity;149
5.3.3;9.3 Positive R&D Expenditure;165
5.4;10 Steady Growing Population;183
5.4.1;10.1 Introduction;183
5.4.2;10.2 No R&D Activity;183
5.4.3;10.3 Positive R&D Expenditure;187
5.5;11 Logistic Growing Population;203
5.5.1;11.1 Preliminary;203
5.5.2;11.2 No R&D Activity;205
5.5.3;11.3 Positive R&D Expenditure;218
5.5.4;11.4 Logistic Population Growth: A Caveat;227
5.6;12 Effects of Public Expenditure;229
5.6.1;12.1 Preliminary;229
5.6.2;12.2 Zero R&D Activity;229
5.6.3;12.3 Positive R&D Expenditure;241
5.6.4;12.4 Conclusion;261
5.7;13 Material Welfare Comparisons;263
5.7.1;13.1 Motivation;263
5.7.2;13.2 Material Welfare Results;264
6;Appendix: Representative Agent;267
6.1;1. Introduction;267
6.2;2. Utility Maximization;267
6.3;3. Demand Functions for S Shaped Labour Supply;268
6.4;4. Individual;270
6.5;Shaped Labour Supply Function;270
7;References;273
8;Index;277