Michio Morishima
- Published in print:
- 1969
- Published Online:
- November 2003
- ISBN:
- 9780198281641
- eISBN:
- 9780191596667
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198281641.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Discusses economic growth within the framework of the theory of equilibrium. Attempts on the one hand to resolve much of the controversy on growth that results from differences in assumptions made by ...
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Discusses economic growth within the framework of the theory of equilibrium. Attempts on the one hand to resolve much of the controversy on growth that results from differences in assumptions made by various authors and, on the other hand, to make a contribution to the theory of dynamic economics. Practical problems are not discussed, and the economy dealt with is isolated from foreign countries and is provided with a knowledge of industrial arts that does not change throughout the time horizon concerned. Factors such as public spending, foreign trade, technical improvement, and monetary policies are, therefore, ignored, even though they are usually important in determining the actual rate of economic growth. In the first half of the book, decisions regarding investment are made by private enterprises either in the neoclassical or Keynesian manner, while in the second half the planning authorities are responsible for directing firms so that they invest society's savings in such a way that the economy will progress along a path of efficient or optimal growth. The book is divided into four parts that discuss prototype models of economic growth, models resulting from the von Neumann model, models after the ‘von Neumann revolution’, and further model developments. An appendix is included on the von Neumann equilibrium, which aims at a clearer comprehension of Chs. 6 and 7.Less
Discusses economic growth within the framework of the theory of equilibrium. Attempts on the one hand to resolve much of the controversy on growth that results from differences in assumptions made by various authors and, on the other hand, to make a contribution to the theory of dynamic economics. Practical problems are not discussed, and the economy dealt with is isolated from foreign countries and is provided with a knowledge of industrial arts that does not change throughout the time horizon concerned. Factors such as public spending, foreign trade, technical improvement, and monetary policies are, therefore, ignored, even though they are usually important in determining the actual rate of economic growth. In the first half of the book, decisions regarding investment are made by private enterprises either in the neoclassical or Keynesian manner, while in the second half the planning authorities are responsible for directing firms so that they invest society's savings in such a way that the economy will progress along a path of efficient or optimal growth. The book is divided into four parts that discuss prototype models of economic growth, models resulting from the von Neumann model, models after the ‘von Neumann revolution’, and further model developments. An appendix is included on the von Neumann equilibrium, which aims at a clearer comprehension of Chs. 6 and 7.
Adrian C. Newton
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780198567448
- eISBN:
- 9780191717895
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198567448.003.0005
- Subject:
- Biology, Plant Sciences and Forestry
This chapter describes techniques for modeling forest dynamics. Topics covered include the equation of population flux, life tables, transition matrix models, population viability analysis, growth ...
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This chapter describes techniques for modeling forest dynamics. Topics covered include the equation of population flux, life tables, transition matrix models, population viability analysis, growth and yield models, and ecological models.Less
This chapter describes techniques for modeling forest dynamics. Topics covered include the equation of population flux, life tables, transition matrix models, population viability analysis, growth and yield models, and ecological models.
Raymond G. Batina and Toshihiro Ihori
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198297901
- eISBN:
- 9780191685361
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198297901.001.0001
- Subject:
- Economics and Finance, Financial Economics
The purpose of this book is to introduce the substantial literature on consumption tax policy and the taxation of capital income, the early literature on optimal tax theory in dynamic overlapping ...
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The purpose of this book is to introduce the substantial literature on consumption tax policy and the taxation of capital income, the early literature on optimal tax theory in dynamic overlapping generations' models, the more recent literature on optimal taxation in the Ramsey growth model and models of endogenous growth, and the literature on taxation in open economies. The book summarises the main arguments for and against consumption taxation, presents the main theoretical and empirical results of the technical literature, and, finally, extends the literature in a number of useful ways by complicating the models used to study tax issues. These extensions include bequeathing behaviour, the time consistency problem, the capital levy, charity and privately produced public goods, environmental externalities and renewable resources, durable goods and land, and money used in exchange and as an asset. Chapters are self-contained as far as possible, and each uses a variety of models rather than just one to study the issue at hand. Models and notation are explained each time they are used.Less
The purpose of this book is to introduce the substantial literature on consumption tax policy and the taxation of capital income, the early literature on optimal tax theory in dynamic overlapping generations' models, the more recent literature on optimal taxation in the Ramsey growth model and models of endogenous growth, and the literature on taxation in open economies. The book summarises the main arguments for and against consumption taxation, presents the main theoretical and empirical results of the technical literature, and, finally, extends the literature in a number of useful ways by complicating the models used to study tax issues. These extensions include bequeathing behaviour, the time consistency problem, the capital levy, charity and privately produced public goods, environmental externalities and renewable resources, durable goods and land, and money used in exchange and as an asset. Chapters are self-contained as far as possible, and each uses a variety of models rather than just one to study the issue at hand. Models and notation are explained each time they are used.
Phillippe Aghion and Abhijit Banerjee
- Published in print:
- 2005
- Published Online:
- January 2007
- ISBN:
- 9780199248612
- eISBN:
- 9780191714719
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199248612.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter shows how volatility can emerge endogenously, in a world where credit constraints sometimes bind. An elementary theoretical framework is developed, which generates endogenous and ...
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This chapter shows how volatility can emerge endogenously, in a world where credit constraints sometimes bind. An elementary theoretical framework is developed, which generates endogenous and persistent volatility in a growing economy with credit constraints. The basic mechanisms are the interaction of credit constraints and endogenous changes in market prices. It is argued that the model can account for a number of observed facts about lending booms and crises in emerging market economies. It also provides additional arguments in favour of countercyclical budgetary policies in less financially developed economies.Less
This chapter shows how volatility can emerge endogenously, in a world where credit constraints sometimes bind. An elementary theoretical framework is developed, which generates endogenous and persistent volatility in a growing economy with credit constraints. The basic mechanisms are the interaction of credit constraints and endogenous changes in market prices. It is argued that the model can account for a number of observed facts about lending booms and crises in emerging market economies. It also provides additional arguments in favour of countercyclical budgetary policies in less financially developed economies.
Yujiro Hayami and Yoshihisa Godo
- Published in print:
- 2005
- Published Online:
- October 2005
- ISBN:
- 9780199272709
- eISBN:
- 9780191602870
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199272700.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Reviews theoretical justifications and economic consequences of a development strategy adopted, commonly by newly independent developing countries in a few decades after the Second World War, which ...
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Reviews theoretical justifications and economic consequences of a development strategy adopted, commonly by newly independent developing countries in a few decades after the Second World War, which advocated maximizing capital accumulation in the industrial sector by means of government planning and command. The general failure of this strategy, which had become evident by the 1980s, produced a conviction that accumulated capital cannot be an effective basis for economic development unless it is combined with appropriate technology and manpower under appropriate institutions.Less
Reviews theoretical justifications and economic consequences of a development strategy adopted, commonly by newly independent developing countries in a few decades after the Second World War, which advocated maximizing capital accumulation in the industrial sector by means of government planning and command. The general failure of this strategy, which had become evident by the 1980s, produced a conviction that accumulated capital cannot be an effective basis for economic development unless it is combined with appropriate technology and manpower under appropriate institutions.
Michael J. North and Charles M. Macal
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780195172119
- eISBN:
- 9780199789894
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195172119.003.0007
- Subject:
- Business and Management, Strategy
This chapter provides an overview of ways to create agent-based models, including agent-based modeling and simulation architectures and implementation tools. It also discusses model growth paths for ...
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This chapter provides an overview of ways to create agent-based models, including agent-based modeling and simulation architectures and implementation tools. It also discusses model growth paths for enhancing systems and related issues.Less
This chapter provides an overview of ways to create agent-based models, including agent-based modeling and simulation architectures and implementation tools. It also discusses model growth paths for enhancing systems and related issues.
John Knight
- Published in print:
- 2012
- Published Online:
- May 2012
- ISBN:
- 9780199698691
- eISBN:
- 9780191739118
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199698691.003.0002
- Subject:
- Economics and Finance, South and East Asia, Financial Economics
This chapter provides a framework for understanding the chapters to come. It covers models of economic growth, empirical approaches to economic growth, the relationships between the literatures on ...
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This chapter provides a framework for understanding the chapters to come. It covers models of economic growth, empirical approaches to economic growth, the relationships between the literatures on economic growth and on economic development, and the relationships between economic growth and economic inequality.Less
This chapter provides a framework for understanding the chapters to come. It covers models of economic growth, empirical approaches to economic growth, the relationships between the literatures on economic growth and on economic development, and the relationships between economic growth and economic inequality.
Kevin S. McCann
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691134178
- eISBN:
- 9781400840687
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691134178.003.0004
- Subject:
- Biology, Ecology
This chapter examines the dynamics of basic population models, with a particular focus on the general biological conditions under which population dynamics are stabilized, or destabilized, by ...
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This chapter examines the dynamics of basic population models, with a particular focus on the general biological conditions under which population dynamics are stabilized, or destabilized, by increased population growth rates. Three classes of population models are discussed in relation to excitable and nonexcitable interactions: continuous logistic growth models, discrete equations, and continuous models with stage-structured lags. The chapter shows how increasing per capita growth rates tend to stabilize population models as a result of excitable interactions; that is, when dynamic trajectories monotonically approach an equilibrium after a localized perturbation. However, lags in population models tend to give rise to dynamics with oscillatory decays to equilibrium or sustained oscillations around the carrying capacity. Such oscillatory decays or sustained oscillations are only further destabilized by increased growth or production rates. The chapter concludes with a review of empirical evidence for excitable dynamics.Less
This chapter examines the dynamics of basic population models, with a particular focus on the general biological conditions under which population dynamics are stabilized, or destabilized, by increased population growth rates. Three classes of population models are discussed in relation to excitable and nonexcitable interactions: continuous logistic growth models, discrete equations, and continuous models with stage-structured lags. The chapter shows how increasing per capita growth rates tend to stabilize population models as a result of excitable interactions; that is, when dynamic trajectories monotonically approach an equilibrium after a localized perturbation. However, lags in population models tend to give rise to dynamics with oscillatory decays to equilibrium or sustained oscillations around the carrying capacity. Such oscillatory decays or sustained oscillations are only further destabilized by increased growth or production rates. The chapter concludes with a review of empirical evidence for excitable dynamics.
Pontus Braunerhjelm
- Published in print:
- 2012
- Published Online:
- January 2013
- ISBN:
- 9780199646685
- eISBN:
- 9780191748998
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199646685.003.0013
- Subject:
- Economics and Finance, Financial Economics
Innovation is increasingly viewed as the key to elevate prosperity and secure sustainable long-run growth. The last decades have witnessed a refinement of previous growth models to include also ...
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Innovation is increasingly viewed as the key to elevate prosperity and secure sustainable long-run growth. The last decades have witnessed a refinement of previous growth models to include also investments in education by individuals and R&D by firms. Better educated individuals and increased expenditure on R&D is then shown to result in innovations and accelerated growth. The issues discussed in this chapter refer to how innovative opportunities arise and are exploited, whether the normative conclusions of contemporary growth models are derived from a realistic micro-economic setting, and suggestions as to how these models can be improved in order to provide appropriate guidance for policy-makers. More precisely, there seems to be a missing link between the production of knowledge and its conversion to societal economic value. Whereas the neoclassical growth model attributed knowledge production to an exogenous ‘technical residual’, current knowledge based growth models assume the diffusion of to take place exogenously or can be attributed an ‘entrepreneurial residual’.Less
Innovation is increasingly viewed as the key to elevate prosperity and secure sustainable long-run growth. The last decades have witnessed a refinement of previous growth models to include also investments in education by individuals and R&D by firms. Better educated individuals and increased expenditure on R&D is then shown to result in innovations and accelerated growth. The issues discussed in this chapter refer to how innovative opportunities arise and are exploited, whether the normative conclusions of contemporary growth models are derived from a realistic micro-economic setting, and suggestions as to how these models can be improved in order to provide appropriate guidance for policy-makers. More precisely, there seems to be a missing link between the production of knowledge and its conversion to societal economic value. Whereas the neoclassical growth model attributed knowledge production to an exogenous ‘technical residual’, current knowledge based growth models assume the diffusion of to take place exogenously or can be attributed an ‘entrepreneurial residual’.
Alfonso Novales, Emilio Domínguez, Javier J. Pérez, and Jesús Ruiz
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199248278
- eISBN:
- 9780191596605
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199248273.003.0004
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Discusses the main issues involved in practical applications of solution methods that have been proposed for rational expectations models, based on eigenvalue–eigenvector decompositions. It starts by ...
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Discusses the main issues involved in practical applications of solution methods that have been proposed for rational expectations models, based on eigenvalue–eigenvector decompositions. It starts by reviewing how a numerical solution can be derived for the standard deterministic Cass–Koopmans–Brock–Mirman economy, pointing out the relevance of stability conditions. Next the general structure used to solve linear rational expectations models, and its extension to nonlinear models, is summarized. The solution method is then applied to Hansen's (1985) model of indivisible labour, and comparisons with other solution approaches are discussed. It is then shown how the eigenvalue–eigenvector decomposition can help to separately identify variables of a similar nature (as is the case when physical capital and inventories are inputs in an aggregate production technology), and how the solution method can be adapted to deal with endogenous growth models.Less
Discusses the main issues involved in practical applications of solution methods that have been proposed for rational expectations models, based on eigenvalue–eigenvector decompositions. It starts by reviewing how a numerical solution can be derived for the standard deterministic Cass–Koopmans–Brock–Mirman economy, pointing out the relevance of stability conditions. Next the general structure used to solve linear rational expectations models, and its extension to nonlinear models, is summarized. The solution method is then applied to Hansen's (1985) model of indivisible labour, and comparisons with other solution approaches are discussed. It is then shown how the eigenvalue–eigenvector decomposition can help to separately identify variables of a similar nature (as is the case when physical capital and inventories are inputs in an aggregate production technology), and how the solution method can be adapted to deal with endogenous growth models.
SERGIO REBELO
- Published in print:
- 2001
- Published Online:
- October 2011
- ISBN:
- 9780199243983
- eISBN:
- 9780191697319
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199243983.003.0002
- Subject:
- Economics and Finance, Development, Growth, and Environmental
One of the most active fields of research in economics over the last fifteen years includes the determination of the forces which affect the economic growth rate. While researchers have already been ...
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One of the most active fields of research in economics over the last fifteen years includes the determination of the forces which affect the economic growth rate. While researchers have already been able to come up with several different models of gaining sustained growth even without the exogenous growth in productivity, research is still ongoing for variables that may be correlated with growth performance in the different versions of the Summers and Heston data set or simply the business cycles. It was found that a certain agent would be willing to sacrifice a portion of his consumption in exchange for living in an economy that experiences a faster growth rate. This chapter looks into the evolution of various growth models, specifically the neoclassical growth model, and examine how human capital and the state of technology should be incorporated in models of endogenous technological progress.Less
One of the most active fields of research in economics over the last fifteen years includes the determination of the forces which affect the economic growth rate. While researchers have already been able to come up with several different models of gaining sustained growth even without the exogenous growth in productivity, research is still ongoing for variables that may be correlated with growth performance in the different versions of the Summers and Heston data set or simply the business cycles. It was found that a certain agent would be willing to sacrifice a portion of his consumption in exchange for living in an economy that experiences a faster growth rate. This chapter looks into the evolution of various growth models, specifically the neoclassical growth model, and examine how human capital and the state of technology should be incorporated in models of endogenous technological progress.
Raymond G. Batina and Toshihiro Ihori
- Published in print:
- 2000
- Published Online:
- October 2011
- ISBN:
- 9780198297901
- eISBN:
- 9780191685361
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198297901.003.0004
- Subject:
- Economics and Finance, Financial Economics
This chapter discusses literature concerning optimal taxation, based on versions of the Ramsey growth model. Several economists showed that it is sub-optimal to tax capital income in the long run. ...
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This chapter discusses literature concerning optimal taxation, based on versions of the Ramsey growth model. Several economists showed that it is sub-optimal to tax capital income in the long run. This is true in the endogenous growth model studied by Lucas because a tax on income will permanently lower the growth rate of the economy and consequently welfare. However, there are several limitations to this result. These limitations are: government spending is proportional to output; precautionary saving from incomplete insurance markets exists; productive public spending that enhances private investment is present; there are liquidity constraints; and negative externalities associated with production exist. Voters in a democratic country, as discussed by Krusell, Quadrini, and Rios-Rull (1996), prefer a general income tax system over consumption tax since it tends to reduce the level of redistributive taxation.Less
This chapter discusses literature concerning optimal taxation, based on versions of the Ramsey growth model. Several economists showed that it is sub-optimal to tax capital income in the long run. This is true in the endogenous growth model studied by Lucas because a tax on income will permanently lower the growth rate of the economy and consequently welfare. However, there are several limitations to this result. These limitations are: government spending is proportional to output; precautionary saving from incomplete insurance markets exists; productive public spending that enhances private investment is present; there are liquidity constraints; and negative externalities associated with production exist. Voters in a democratic country, as discussed by Krusell, Quadrini, and Rios-Rull (1996), prefer a general income tax system over consumption tax since it tends to reduce the level of redistributive taxation.
Yung Chul Park
- Published in print:
- 2005
- Published Online:
- February 2006
- ISBN:
- 9780199276776
- eISBN:
- 9780191603051
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199276773.001.0001
- Subject:
- Economics and Finance, South and East Asia
This book examines East Asia’s economic development and integration following the Asian crisis of 1997-1998. The book is divided into six parts. Part 1 describes the development experiences of East ...
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This book examines East Asia’s economic development and integration following the Asian crisis of 1997-1998. The book is divided into six parts. Part 1 describes the development experiences of East Asia’s emerging economies, their characteristics and accomplishments, and then provides an overview of some of the critical failures of the East Asian development model. Part 2 examines the causes and consequences of the Asian crisis, together with a reassessment of the IMF reform program. Part 3 covers the topics of corporate and institutional sector reform, the role of government, and the need for improved social welfare and industrial relations policies. Part 4 assesses the progress in three key areas for the region: reform of the financial sector, the pros and cons of a floating exchange rate regime, and the degree and effect of capital account liberalization. Part 5 reviews the key sectors of trade and financial integration in East Asia, the prospects for continued economic cooperation and integration, and the need for policy coordination with regard to the record foreign currency reserves held by East Asian economies, which resulted in a Transpacific trade imbalance. Part 6 considers the road ahead for East Asia and outlines the characteristics of a new paradigm for development. It is argued that merely adopting liberal economic reform measures will not ensure successful development. This new and evolving development paradigm — distinct from the old system yet not an Anglo-American system — is the key to ensuring success in the region.Less
This book examines East Asia’s economic development and integration following the Asian crisis of 1997-1998. The book is divided into six parts. Part 1 describes the development experiences of East Asia’s emerging economies, their characteristics and accomplishments, and then provides an overview of some of the critical failures of the East Asian development model. Part 2 examines the causes and consequences of the Asian crisis, together with a reassessment of the IMF reform program. Part 3 covers the topics of corporate and institutional sector reform, the role of government, and the need for improved social welfare and industrial relations policies. Part 4 assesses the progress in three key areas for the region: reform of the financial sector, the pros and cons of a floating exchange rate regime, and the degree and effect of capital account liberalization. Part 5 reviews the key sectors of trade and financial integration in East Asia, the prospects for continued economic cooperation and integration, and the need for policy coordination with regard to the record foreign currency reserves held by East Asian economies, which resulted in a Transpacific trade imbalance. Part 6 considers the road ahead for East Asia and outlines the characteristics of a new paradigm for development. It is argued that merely adopting liberal economic reform measures will not ensure successful development. This new and evolving development paradigm — distinct from the old system yet not an Anglo-American system — is the key to ensuring success in the region.
KiDeuk Kim
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780195310313
- eISBN:
- 9780199871384
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195310313.003.0015
- Subject:
- Psychology, Social Psychology
Punishment has long been seen as a social institution which is first and last a matter of morality and social solidarity (Garland, 1990). In exploring how an individual develops criminality over ...
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Punishment has long been seen as a social institution which is first and last a matter of morality and social solidarity (Garland, 1990). In exploring how an individual develops criminality over time, it is therefore useful to consider to what extent punishment alters an offending trajectory over time. Most developmental studies on crime center on how criminality is formed or how criminality is depressed by a prosocial process (e.g., adaptation to employment or marriage). There has been little attention given to how criminality is suppressed by punishment. Hence, drawing from research that has accumulated much knowledge about how legal sanctions exert a deterrent effect on would-be offenders, this chapter proposes a longitudinal approach to modeling the effect of punishment. Of particular interest is to develop an analytic framework to examine change in sanction risk perceptions or offending behavior in response to punishment experiences. The chapter explores different growth modeling techniques to detect the deterrent effect of punishment and discusses theoretical considerations involved in the analysis of deterrence based on longitudinal data from a panel design.Less
Punishment has long been seen as a social institution which is first and last a matter of morality and social solidarity (Garland, 1990). In exploring how an individual develops criminality over time, it is therefore useful to consider to what extent punishment alters an offending trajectory over time. Most developmental studies on crime center on how criminality is formed or how criminality is depressed by a prosocial process (e.g., adaptation to employment or marriage). There has been little attention given to how criminality is suppressed by punishment. Hence, drawing from research that has accumulated much knowledge about how legal sanctions exert a deterrent effect on would-be offenders, this chapter proposes a longitudinal approach to modeling the effect of punishment. Of particular interest is to develop an analytic framework to examine change in sanction risk perceptions or offending behavior in response to punishment experiences. The chapter explores different growth modeling techniques to detect the deterrent effect of punishment and discusses theoretical considerations involved in the analysis of deterrence based on longitudinal data from a panel design.
Judith D. Singer and John B. Willett
- Published in print:
- 2003
- Published Online:
- September 2009
- ISBN:
- 9780195152968
- eISBN:
- 9780199864980
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195152968.003.0008
- Subject:
- Public Health and Epidemiology, Public Health, Epidemiology
This chapter describes how to conceptualize, postulate, fit, and interpret a latent growth model. Section 8.1 begins by reviewing the general covariance structure model. Section 8.2 maps the ...
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This chapter describes how to conceptualize, postulate, fit, and interpret a latent growth model. Section 8.1 begins by reviewing the general covariance structure model. Section 8.2 maps the multilevel model for change onto the general covariance structure model. Section 8.3 illustrates an invaluable extension of this approach that allows you to investigate whether change in one construct is related to change in another. Section 8.4 concludes by listing additional extensions of the basic approach briefly.Less
This chapter describes how to conceptualize, postulate, fit, and interpret a latent growth model. Section 8.1 begins by reviewing the general covariance structure model. Section 8.2 maps the multilevel model for change onto the general covariance structure model. Section 8.3 illustrates an invaluable extension of this approach that allows you to investigate whether change in one construct is related to change in another. Section 8.4 concludes by listing additional extensions of the basic approach briefly.
Joseph E. Stiglitz
- Published in print:
- 2006
- Published Online:
- January 2009
- ISBN:
- 9780199298839
- eISBN:
- 9780191711480
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199298839.003.0017
- Subject:
- Economics and Finance, History of Economic Thought
This chapter takes account of a simple model Samuelson enunciated over forty years ago on the liberalization of the capital markets. It appraises the capital liberating model first from the ...
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This chapter takes account of a simple model Samuelson enunciated over forty years ago on the liberalization of the capital markets. It appraises the capital liberating model first from the traditional equilibrium points of view, and then from his new paradigm of disequilibria or market imperfection points of view. In the equilibrium version, some ambiguity exists as to how technological progress would augment capital or labor. Kaldor's stylized facts approach had assumed away the problem. The standard Harrod–Domar model did not include the effect of technological change, and when added, the disequilibria between exogenous labor, and adjusted warranted growth rate became clear. Solow's modification did improve the analysis by making capital and effective labor grow at the same rate, but at the price of diminishing the concept of a job.Less
This chapter takes account of a simple model Samuelson enunciated over forty years ago on the liberalization of the capital markets. It appraises the capital liberating model first from the traditional equilibrium points of view, and then from his new paradigm of disequilibria or market imperfection points of view. In the equilibrium version, some ambiguity exists as to how technological progress would augment capital or labor. Kaldor's stylized facts approach had assumed away the problem. The standard Harrod–Domar model did not include the effect of technological change, and when added, the disequilibria between exogenous labor, and adjusted warranted growth rate became clear. Solow's modification did improve the analysis by making capital and effective labor grow at the same rate, but at the price of diminishing the concept of a job.
Michio Morishima
- Published in print:
- 1969
- Published Online:
- November 2003
- ISBN:
- 9780198281641
- eISBN:
- 9780191596667
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198281641.003.0006
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The neoclassical model so far examined in the book assumes, among other things: (a) that firms can be classified into two or several industries, each producing a single output; (b) that capital goods ...
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The neoclassical model so far examined in the book assumes, among other things: (a) that firms can be classified into two or several industries, each producing a single output; (b) that capital goods do not suffer wear and tear, or they depreciate by evaporation; (c) that the stock of capital goods can be transferred freely from one firm to another; and (d) that the neoclassical price mechanism works so as to establish automatically the full employment of capital stocks and the labour force; however, all these assumptions are unrealistic and crucially affect the model's capacity to analyse the capital structure of the economy. According to the neoclassical evaporation treatment of depreciation, capital goods that were produced several years ago and have been subject to wear and tear are considered to be physically equivalent to some smaller amounts of new capital goods of the same kind; this is a useful assumption, but an oversimplification of the age structure of the available endowments, and does not deal well with the mortality of the capital goods. In contrast, von Neumann suggested that used capital goods appearing simultaneously with products at the end of the production period could be treated as by‐products of the manufacturing process; this treatment of capital goods requires the discarding of assumptions (a) and (c). Another task assigned to the theory of capital is to find out when a capital good ceases to be used and is replaced by a new one; in growth theory, this problem is especially important, and the von Neumann device of regarding capital goods at different ages as different goods allows the endogenous determination of their economic lifetime simultaneously with other economic unknowns (in fact, capital goods die economically and become free goods when they become unprofitable). The different sections of the chapter look at technological aspects of the von Neumann revolution, his specification and symbolization of production processes, two interpretations of the original von Neumann model (genuine and bastard), the introduction of consumer choice, equilibrium within a period, the working of the system over time (the temporary equilibrium approach versus balanced growth approach), a ‘Pasinetti’ or ‘anti‐Pasinetti’ solution, and the generalized Leontief model (revisited).Less
The neoclassical model so far examined in the book assumes, among other things: (a) that firms can be classified into two or several industries, each producing a single output; (b) that capital goods do not suffer wear and tear, or they depreciate by evaporation; (c) that the stock of capital goods can be transferred freely from one firm to another; and (d) that the neoclassical price mechanism works so as to establish automatically the full employment of capital stocks and the labour force; however, all these assumptions are unrealistic and crucially affect the model's capacity to analyse the capital structure of the economy. According to the neoclassical evaporation treatment of depreciation, capital goods that were produced several years ago and have been subject to wear and tear are considered to be physically equivalent to some smaller amounts of new capital goods of the same kind; this is a useful assumption, but an oversimplification of the age structure of the available endowments, and does not deal well with the mortality of the capital goods. In contrast, von Neumann suggested that used capital goods appearing simultaneously with products at the end of the production period could be treated as by‐products of the manufacturing process; this treatment of capital goods requires the discarding of assumptions (a) and (c). Another task assigned to the theory of capital is to find out when a capital good ceases to be used and is replaced by a new one; in growth theory, this problem is especially important, and the von Neumann device of regarding capital goods at different ages as different goods allows the endogenous determination of their economic lifetime simultaneously with other economic unknowns (in fact, capital goods die economically and become free goods when they become unprofitable). The different sections of the chapter look at technological aspects of the von Neumann revolution, his specification and symbolization of production processes, two interpretations of the original von Neumann model (genuine and bastard), the introduction of consumer choice, equilibrium within a period, the working of the system over time (the temporary equilibrium approach versus balanced growth approach), a ‘Pasinetti’ or ‘anti‐Pasinetti’ solution, and the generalized Leontief model (revisited).
Makoto Yano, Kenji Sato, and Yuichi Furukawa
- Published in print:
- 2011
- Published Online:
- September 2012
- ISBN:
- 9780198073970
- eISBN:
- 9780199081615
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198073970.003.0006
- Subject:
- Economics and Finance, Microeconomics
The interaction between innovation and capital accumulation may give rise to a cyclical equilibrium path in an endogenous growth model. This presents a new mechanism through which two productive ...
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The interaction between innovation and capital accumulation may give rise to a cyclical equilibrium path in an endogenous growth model. This presents a new mechanism through which two productive sectors interact with one another to create nonlinear equilibrium dynamics. However, no study has fully examined the extent of nonlinearity. This chapter focuses on the observability of chaotic economic dynamics in the Matsuyama model of endogenous growth with innovation and capital accumulation. It shows that the Matsuyama system can be an ergodic chaos for a wide range of parameter values; in an ergodic chaos chaotic behaviour is observable for almost every initial state but not in a topological chaos. This result extends the earlier work of Anjan Mukherji and Tapan Mitra, who used bifurcation diagrams to demonstrate the possibility of a topological chaos as well as the observability of a chaos.Less
The interaction between innovation and capital accumulation may give rise to a cyclical equilibrium path in an endogenous growth model. This presents a new mechanism through which two productive sectors interact with one another to create nonlinear equilibrium dynamics. However, no study has fully examined the extent of nonlinearity. This chapter focuses on the observability of chaotic economic dynamics in the Matsuyama model of endogenous growth with innovation and capital accumulation. It shows that the Matsuyama system can be an ergodic chaos for a wide range of parameter values; in an ergodic chaos chaotic behaviour is observable for almost every initial state but not in a topological chaos. This result extends the earlier work of Anjan Mukherji and Tapan Mitra, who used bifurcation diagrams to demonstrate the possibility of a topological chaos as well as the observability of a chaos.
Albert Marcet and Guido Lorenzoni
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199248278
- eISBN:
- 9780191596605
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199248273.003.0007
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Some practical issues are discussed that relate to the use of the parameterized expectations approach (PEA) for solving nonlinear stochastic dynamic models with rational expectations. This approach ...
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Some practical issues are discussed that relate to the use of the parameterized expectations approach (PEA) for solving nonlinear stochastic dynamic models with rational expectations. This approach has been applied widely as it turns out to be a convenient algorithm, especially when there are large numbers of state variables and stochastic shocks in key conditional expectations terms. The first main section of the chapter provides a detailed discussion of some practical issues associated with the algorithm, and of its application. This is done using a set of examples—the Lucas asset pricing model, the simple stochastic growth model, and four variations of the latter, each selected to demonstrate a different issue. The next section describes a FORTRAN program used for implementing the algorithm, and the following one shows how it is applied to and adapted for each example previously presented.Less
Some practical issues are discussed that relate to the use of the parameterized expectations approach (PEA) for solving nonlinear stochastic dynamic models with rational expectations. This approach has been applied widely as it turns out to be a convenient algorithm, especially when there are large numbers of state variables and stochastic shocks in key conditional expectations terms. The first main section of the chapter provides a detailed discussion of some practical issues associated with the algorithm, and of its application. This is done using a set of examples—the Lucas asset pricing model, the simple stochastic growth model, and four variations of the latter, each selected to demonstrate a different issue. The next section describes a FORTRAN program used for implementing the algorithm, and the following one shows how it is applied to and adapted for each example previously presented.
Alfred Greiner and Willi Semmler
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195328233
- eISBN:
- 9780199869985
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195328233.003.0015
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter focuses on dynamic models with exhaustible resources. It discusses protype growth models that incorporate and study the consequences of finitely available exhaustible resources. Some of ...
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This chapter focuses on dynamic models with exhaustible resources. It discusses protype growth models that incorporate and study the consequences of finitely available exhaustible resources. Some of the problems studied here will also arise in the case of renewable resources, for example, the problem of intergenerational justice. The remainder of this chapter is organized as follows. Section 14.2 surveys growth models with natural resource constraints. Section 14.3 discusses the problem of intergenerational justice. Sections 14.4 and 14.5 present stylized facts of exhaustible resources. Section 14.6 presents the estimation of our growth model.Less
This chapter focuses on dynamic models with exhaustible resources. It discusses protype growth models that incorporate and study the consequences of finitely available exhaustible resources. Some of the problems studied here will also arise in the case of renewable resources, for example, the problem of intergenerational justice. The remainder of this chapter is organized as follows. Section 14.2 surveys growth models with natural resource constraints. Section 14.3 discusses the problem of intergenerational justice. Sections 14.4 and 14.5 present stylized facts of exhaustible resources. Section 14.6 presents the estimation of our growth model.
