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Full-Text Articles in Social and Behavioral Sciences
Sustained Investment Surges, Emiliano Libman, Juan Antonio Montecino, Arslan Razmi
Sustained Investment Surges, Emiliano Libman, Juan Antonio Montecino, Arslan Razmi
Economics Department Working Paper Series
Existing empirical studies have focused on determinants of investment. We focus instead on episodes of accelerated capital stock growth that last eight years or longer. We find that episodes are relatively common, even in low growth regions, but more so in middle income and Asian countries. After identifying 175 such episodes between 1950-2014, we employ probit analysis to explore their characteristics. Turning points in investment tend to be preceded by undervalued real exchange rates, macroeconomic stability (low inflation), and net capital outflows (especially portfolio outflows). We also find strong evidence for a negative correlation with the capital to output ratio …
The Dynamics Of Exploitation And Class In Accumulation Economies, Jonathan F. Cogliano, Roberto Veneziani, Naoki Yoshihara
The Dynamics Of Exploitation And Class In Accumulation Economies, Jonathan F. Cogliano, Roberto Veneziani, Naoki Yoshihara
Economics Department Working Paper Series
This paper analyses the equilibrium dynamics of exploitation and class in general accumulation economies with population growth, technical change, and bargaining by adopting a novel computational approach. First, the determinants of the emergence and persistence of exploitation and class are investigated, and the role of labour-saving technical change and, even more importantly, power is highlighted. Second, it is shown that the concept of exploitation provides the foundations for a logically coherent and empirically relevant analysis of inequalities and class relations in advanced capitalist economies. An index that identifies the exploitation level, or intensity of each individual can be defined and …
Correctly Analyzing The Balance Of Payments Constraint On Growth, Arslan Razmi
Correctly Analyzing The Balance Of Payments Constraint On Growth, Arslan Razmi
Economics Department Working Paper Series
The BPCG model provides an interesting hypothesis regarding economic growth. The main implication is that world demand places a constraint on individual country performance. I discuss this implication and argue that tests of the BPCG model have essentially been tests of the hypothesis that trade is balanced over the long run; a plausible hypothesis but one that need not hold mainly due to demand-side constraints. I then discuss the role of relative prices and investment, point out logical inadequacies in the traditional BPCG framework, and suggest an alternative theoretical framework to investigate its robustness. Our theoretical and empirical explorations contribute …
Steindlian Models Of Growth And Stagnation, Peter Flaschel, Peter Skott
Steindlian Models Of Growth And Stagnation, Peter Flaschel, Peter Skott
Economics Department Working Paper Series
Following an analysis of the relation between a standard Steindlian model of stagnation and Steindl’s own analysis, we modify the standard model by introducing endogenous changes in the markup and a reformulation of the investment function. These extensions, which address significant weaknesses of the standard model, find support in Steindl’s writing and leave intact some of Steindl’s key results. In a further extension, we add a labour market and analyse the stabilizing influence of a Marxian reserve-army mechanism. The implications of the extended model for the effects of increased oligopolization are largely in line with Steindl’s predictions.