Essays In Macroeconomics And Production Networks

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Essays in Macroeconomics and Production Networks

Author :
Publisher :
ISBN 13 :
Total Pages : 168 pages
Book Rating : 4.:/5 (941 download)

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Download or read book Essays in Macroeconomics and Production Networks written by and published by . This book was released on 2015 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: Chapter 1 provides a theory of financial frictions as a mechanism for uncertainty shocks to drive aggregate total factor productivity (TFP) fluctuations, and shows how input-output linkages amplify the impact of financial frictions on aggregate economy. Financial frictions distort the allocation of capital and induce capital wedges. These wedges differ across sectors due to different sectoral technology nature and financing demands. Sectors that have more financing needs are disproportionately vulnerable to financial frictions. This variation in distortion across sectors generates inefficiency in capital allocation and reduces aggregate measured TFP. Intermediate input shares amplify the effect of this inefficiency and generate larger TFP fluctuations. Chapter 2 estimates and calibrates the theoretical model in Chapter 1 into US data at 14 sectors, and quantifies the amplification magnitude from input-output linkages. Financial frictions can drive aggregate TFP fluctuations and play a crucial role when uncertainty shocks hit the economy. Adding input-output linkages can further amplify the effects of both TFP and uncertainty shocks. In particular, aggregate output drops an additional 84% under TFP shocks and an additional 40% under uncertainty shocks with input-output linkages. The amplification from input-output linkages is the key for capital misallocation to contributing significantly in generating TFP fluctuations. Furthermore, there are dramatic differences in sectors' sensitivities to a tightening of borrowing constraint. Compared to other sectors, an increase in the dispersion of the return to capital in the Finance sector has the largest impact on aggregate output. Chapter 3 settles the debate between Eeckhout (2004, 2009) and Levy (2009) and offers a simple but neglected explanation for the heavy tail observed in the city size distribution. Using the same data set and statistics reported in Eeckhout (2004), I show that U.S. city sizes are not lognormally distributed and that the upper tail indeed follows a power law. I then show that the aggregate city size distribution is a mixture of lognormal distributions, and that this mixture generates the heavy tail. Finally, I relax the independence assumption and show that city sizes are positively dependent in the data, and that the power law distribution is robust under this positive dependence.

Essays in Macroeconomics

Author : Thomas Walsh
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (138 download)

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Download or read book Essays in Macroeconomics written by Thomas Walsh and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis comprises three independent essays in applied macroeconomics. The three papers examine unemployment insurance policy, monetary policy transmission to real economic activity, and how government spending passes through production networks. Job Search and the Threat of Unemployment Benefit Sanctions examines the impact of the threat to cut jobseekers' unemployment benefits in order to spur search effort and accelerate the return to work. Faster exit from unemployment is often associated with worse reentry characteristics associated with a substitution of social insurance transfer payments towards "market insurance". Sectoral Volatility and the Investment Channel of Monetary Policy investigates how the dispersion of individual-level fluctuations in firms' productivity affects their investment responsiveness to monetary policy operations, with consequences for when monetary policy is more or less powerful over the business cycle. Goverment Spending in Production Networks: Size versus Centrality examines how government spending propagates through the production network. We ask what are the consequences for fiscal spending multipliers when we account for both the networked structure of production and the heterogeneity of firms which occupy important nodes simultaneously. Specifically, we examine whether there is a race between centrality (implying large network effects) and firm size (dampening responsiveness due to slacker constraints).

Essays on Economics of Networks

Author : Soomin Jung
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (127 download)

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Download or read book Essays on Economics of Networks written by Soomin Jung and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is on economics of networks. The first two chapters study what network sellers and buyers create when there exist gains of trade. The last chapter studies information diffusion on a given network. In the first two chapters, I study sellers and buyers who trade via bargaining. Agents can often increase their bargaining power by increasing the value of their outside options. They may seek to invest in costly relationships with potential trade partners. That is, they form an endogenous trade network and then bargain with their trade partners. I study a two-stage model in which sellers and buyers trade non-cooperatively on an endogenous trade network. In Chapter 1, sellers are assumed to have no capacity constraints. The main result of this chapter is that even though agents can increase their bargaining power by forming relationships with multiple trading partners, there exists an efficient subgame perfect equilibrium--that is, all the gains from trade are realized with the minimum costs and without a delay. Chapter 2 assumes that sellers are endowed with one unit of a good for a trade following the tradition of the bargaining literature. The capacity constraint increases the seller's bargaining power if there are many buyers who want to buy a good from each seller. This may give incentives to sellers to invest in superfluous links. Chapter 2 shows that the market can achieve efficiency even if sellers have the capacity constraint. In specific, a bilateral trading network is supported as an equilibrium network. Chapter 3 studies information diffusion on a fixed network through word-of-mouth. Word-of-mouth is an effective tool that a firm leverages to advertise the quality of its products to uninformed consumers. Such viral marketing, however, may fail if the consumers' "words" are not credible. Suppose that consumers are located on a given network and a firm "buys" one consumer and employs her as an implant to make recommendations of a product to her neighbors regardless of the actual quality of the good. I show that the viral marketing fails if the consumer network has a node with an excessively high degree of connection--for instance, a star network or a complete network--which undermines the credibility of the recommendation from an implant employed by a firm to promote a bad quality product. Also, if the viral marketing works, a good quality product is spread out over the network while a bad quality is driven out.

Macroeconomics and Beyond

Author : Guido Erreygers
Publisher : Maklu
ISBN 13 : 9044128558
Total Pages : 314 pages
Book Rating : 4.0/5 (441 download)

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Book Synopsis Macroeconomics and Beyond by : Guido Erreygers

Download or read book Macroeconomics and Beyond written by Guido Erreygers and published by Maklu. This book was released on 2012 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book contains 20 essays on macroecomics.

Essays in Network Economics

Author : Pablo Daniel Azar
Publisher :
ISBN 13 :
Total Pages : 215 pages
Book Rating : 4.:/5 (114 download)

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Book Synopsis Essays in Network Economics by : Pablo Daniel Azar

Download or read book Essays in Network Economics written by Pablo Daniel Azar and published by . This book was released on 2019 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis is a collection of three chapters, each representing an individual paper. The first chapter studies how the formation of supply chains affects economic growth. It provides a new tractable model for supply chain formation. The main innovation in this model is that, firms can choose suppliers to maximize profits. Individual firms' actions determine the equilibrium input-output network, and affect macroeconomic variables such as GDP. We then apply this model to understand the effect of changing supply chains on American productivity during the 1987-2007 period. The second chapter studies how a monopolist may sell multiple goods to strategic bidders. The monopolist may face a series of combinatorial constraints. For example, it may be forced to allocate at most one good to each bidder, and it may have additional constraints on which bidders can be allocated which goods. Furthermore, the monopolist does not know bidders' demand distributions. Rather, it only knows one sample from the demand distribution corresponding to each bidder. Nevertheless, by developing new online optimization algorithms, we show how simple mechanisms can approximate the monopolist's optimal revenue. Finally, the third chapter, develops a new model of firm optimization to understand how shrinking electronics have contributed to increased productivity and welfare in the United States, during the 2002-2017 period. In this model, firms face constraints on the size of the products they can build. As intermediate inputs, such as electronics, shrink, the firms' production possibilities frontier expands, and GDP increases.

New Frontiers in the Economics of Innovation and New Technology

Author : Cristiano Antonelli
Publisher : Edward Elgar Publishing
ISBN 13 : 1845427920
Total Pages : 495 pages
Book Rating : 4.8/5 (454 download)

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Book Synopsis New Frontiers in the Economics of Innovation and New Technology by : Cristiano Antonelli

Download or read book New Frontiers in the Economics of Innovation and New Technology written by Cristiano Antonelli and published by Edward Elgar Publishing. This book was released on 2006-01-01 with total page 495 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Festschrift explores the truly exceptional breadth and depth of Paul David s work, focusing upon his contributions to the topics of path dependence, the economics of knowledge, and the diffusion of technology. The book consists of 15 papers plus an introduction by the editors and an entertaining postscript by Dominique Foray. . . For economic historians, the papers on path dependence assembled in this book, and particularly the conceptual paper by Antonelli, should be essential reading. Nikolaus Wolf, Economic History Review Recent research on the economics of innovation has acknowledged the importance of path dependence and networks in the evolution of economies and the diffusion of new techniques, products, and processes. These are topics pioneered by Paul A. David, one of the world s leading scholars in the economics of innovation. This outstanding collection provides a fitting tribute to the diversity and depth of Paul David s contributions. The papers included range from simulation models of the evolution of market structure in the presence of innovation, through historical investigations of knowledge networks and empirical analysis of contemporary networks, to the analysis of the diffusion of innovations using simulation and analytic models and of the diffusion of knowledge using patent data. With an emphasis on simulation models, data analysis, and historical evidence, this book will be required reading for researchers in innovation economics and regional development as well as economists, sociologists, and historians of innovation and intellectual property.

Essays on the Economics of Networks

Author : Alexander Graupner
Publisher :
ISBN 13 :
Total Pages : 110 pages
Book Rating : 4.:/5 (116 download)

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Book Synopsis Essays on the Economics of Networks by : Alexander Graupner

Download or read book Essays on the Economics of Networks written by Alexander Graupner and published by . This book was released on 2020 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contains three chapters on how economic networks affect various market situations. Broadly, they cover contracting and monopoly pricing in the presence of economic networks. The first chapter considers a principal, many agents contracting problem. Agents sit on a network of complementarities. That is, the effort of one agent affects the value of effort for those with whom he connects. Given this structure on effort, I characterize the first best contract. This contract induces efforts that reflect the agents Bonacich centrality in the symmetrized network. I then consider a variety of bilateral contracts, and compare their values for the principal. First, I consider bilateral forcing contracts. These contracts induce less effort per agent than the first best contract. Agents' effort distortions depends on their bibliographic coupling. I show that it is this novel measure that drives effort down for certain agents. Networks with high total bibliographic coupling have a large profit gap from first to second best forcing contracts. I compare these contracts to bilateral linear contracts, and show that linear contracts outperform the forcing contracts. Finally, I show that base and bonus contracts are profit maximizing for the principal, and implement first best. The second chapter considers a monopolist who introduces a new durable good to a base of consumers who are connected on a network of communication. Consumers are initially unaware of the product, and must learn about its existence through their neighbors. Each consumer who purchases informs a group of neighbors, and the information flows through consumers as a branching process. The monopolist commits to a dynamic price path on the infinite horizon. I find that though consumers are fully strategic, the monopolist finds it optimal to serve the entire consumer base infinitely often, which implies a sales structure. I then derive the optimal price path for a simplified model of two agents, and derive comparative statics. The third chapter considers a monopolist who sells to a consumer base that is largely unaware of the product. The monopolist spreads the information of the product to consumers by the past purchasers. I assume that the monopolist knows the exact network structure on which consumers live, and sets prices based off of consumers positions and the aware set of consumers. I consider three different pricing strategies. First, I consider a setting where the monopolist can price discriminate based on the consumers' network position. In this case I am able to find which consumers are important to the information flow. Consumers who are aware early get a discount, along with agents who are critical to the information flow. If there are consumers who can only be reached through one consumer purchasing, this consumer is offered a discounted price. I see that these ideas follow through to the single priced monopolist case, where prices fluctuate if many critical agents exist. Finally, I consider the optimal mechanism, where the monopolist can price discriminate based off of network position and price. In this case the monopolist can find the optimal flow of information and implement it.

Essays in Macro and Development Economics

Author : Siyuan Ernest Liu
Publisher :
ISBN 13 :
Total Pages : 246 pages
Book Rating : 4.:/5 (12 download)

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Book Synopsis Essays in Macro and Development Economics by : Siyuan Ernest Liu

Download or read book Essays in Macro and Development Economics written by Siyuan Ernest Liu and published by . This book was released on 2017 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essays in this thesis study the implications of weak financial institutions for economic growth, allocation of resources, and economic development. Methodologically, the essays draw on a broad range of theoretical and empirical tools from both macro and microeconomics. Many currently and previously developing countries have adopted industrial policies that push resources towards certain "strategic" sectors, and the economic reasoning behind such polices is not well understood. In Chapter 1, I construct a model of a production network where firms purchase intermediate goods from each other in the presence of credit constraints. These credit constraints distort input choices, thereby reducing equilibrium demand for upstream goods and creating a wedge between the potential sales ("influence") and actual sales by upstream sectors. I analyze policy interventions and show that, under weak functional form restrictions, the ratio between a sector's influence and sales is a sufficient statistic that guides the choice of production and credit subsidies. Using firm-level production data from China, I estimate my sufficient statistic for each sector and show that it correlates with proxy measures of government interventions into the sector. Using a panel of cross-country input-output tables and sectoral production tax rates, I show that the tax rates for developing countries in Asia also correlate with the model-implied intervention measure. In joint work with Benjamin Roth, Chapter 2 offers a new explanation for why microcredit and other forms of informal finance have so far failed to catalyze business growth among small scale entrepreneurs in the developing world, despite their high return to capital. We present a theory of informal lending that highlights two features of informal credit markets that cause them to operate inefficiently. First, borrowers and lenders bargain not only over division of surplus but also over contractual flexibility (the ease with which the borrower can invest to grow her business). Second, when the borrower's business becomes sufficiently large she exits the informal lending relationship and enters the formal sector-an undesirable event for her informal lender. We show that in Stationary Markov Perfect Equilibrium these two features lead to a poverty trap and study its properties. The theory facilitates reinterpretation of a number of empirical facts about microcredit: business growth resulting from microfinance is low on average but high for businesses that are already relatively large, and microlenders have experienced low demand for credit. The theory features nuanced comparative statics which provide a testable prediction and for which we establish novel empirical support. Using the Townsend Thai data and plausibly exogenous variation to the level of competition Thai money lenders face, we show that as predicted by our theory, money lenders in high competition environments impose fewer contractual restrictions on their borrowers. We discuss robustness and policy implications. Motivated by the explosive growth of microfinance in India and the eventual collapse of the industry following the default crisis in 2010, my joint work with Daniel Green in Chapter 3 provides a theory that explains how institutional weakness in credit markets can fail to stimulate development even when there is ample credit supply. We show that when borrowers lack credible mechanisms to commit not to borrow further from other lenders in the future, not only does the increasing availability of lenders raise the interest rate on loans and reduce the amount of funds that entrepreneurs can borrow, but perversely it is those entrepreneurs with more profitable investment opportunities that will end up raising fewer investments precisely because they have stronger desires to seek out additional lenders in the future. This effect further discourages entrepreneurs from initiating the most efficient and productive endeavors, generating persistent underdevelopment.

Essays in Macroeconomics and Macroeconometrics

Author : Francesca Loria
Publisher :
ISBN 13 :
Total Pages : 120 pages
Book Rating : 4.:/5 (15 download)

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Book Synopsis Essays in Macroeconomics and Macroeconometrics by : Francesca Loria

Download or read book Essays in Macroeconomics and Macroeconometrics written by Francesca Loria and published by . This book was released on 2018 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates topics in macroeconomics and macroeconometrics. Chapter 1, joint with Knut Are Aastveit and Francesco Furlanetto, uses a structural VAR model with time-varying parameters and stochastic volatility to investigatewhether the Federal Reserve has responded systematically to asset prices and whether this response has changed over time. To recover the systematic component of monetary policy, the interest rate equation in the VAR is interpreted as an extended monetary policy rule responding to inflation, the output gap, house prices and stock prices. Some time variation is found in the coeffcients for house prices and stock prices but fairly stable coefficients over time for inflation and the output gap. We find that the systematic component of monetary policy in the U.S. i) attached a positive weight to real house price growth but lowered it prior to the crisis and eventually raised it again and ii) only episodically took real stock price growth into account. Chapter 2, joint with Nicolás Castro Cienfuegos, constructs a New Keynesian model with production linkages to study how monopolistic competition, sticky prices and production networks influence aggregate productivity, measured as the Solow residual. We show that, in the presence of production networks, measured TFP is a function not only of pure technology shocks, but also of sectoral markups and of the production network itself. In this case, monetary shocks and cost-push shocks can have a negative short-run impact on TFP through their effect on individual markups, which is stronger the greater the price stickiness. Chapter 3 studies how large and small oil price shocks affect investments in the U.S., an oil producing country. I estimate a Bayesian Markov-switching VAR and compute regime dependent impulse responses. Small surprise increases in the oil price make investment decline while large oil price shocks have an ambiguous effect on total investment because non-oil investment falls while oil investment increases. A 25% oil price increase generates a 3% increase in aggregate investment and a 0.4% increase in GDP. A Markov-switching DSGE model is built to explain the empirical evidence I discover. If the ability to cover oil firms’ fixed costs depends on the size of the oil price shock, the model reproduces well the impulse responses present in the data. I show that agents’ expectations about switching oil price shock regime are crucial to deliver the outcome.

Essays in Labor Economics and Networks

Author : Carl Marc Nadler
Publisher :
ISBN 13 :
Total Pages : 79 pages
Book Rating : 4.:/5 (957 download)

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Book Synopsis Essays in Labor Economics and Networks by : Carl Marc Nadler

Download or read book Essays in Labor Economics and Networks written by Carl Marc Nadler and published by . This book was released on 2016 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: Network-based connections are pervasive in hiring and mobility patterns. While the theoretical impacts of network connections on the inequality of labor market outcomes are well known (Calvo-Armengol and Jackson, 2004), the empirical magnitude of actual network effects is less certain. A key issue is the difficulty of disentangling the causal effect of network connections from differences in the characteristics of workers in better and worse networks. In the first chapter of my dissertation, I study this question using data on freelance workers in Hollywood, who, like many workers in the "freelance economy," are hired for short-term jobs through an informal process that relies in part on previous connections. In such a labor market, the fortunes of an individual worker are closely linked to the careers of key agents who make the hiring decisions for jobs. In Hollywood, workers who know position supervisors who manage more jobs will have more job opportunities. To measure the size of the network effects, I follow cohorts of freelance grips and lighting technicians who first work on a major movie production between 1988 and 2002. I develop two alternative models for the probability that workers are hired on subsequent productions--based on random effects and fixed effects specifications--that incorporate network effects, experience effects, and unobserved heterogeneity. Both models yield large estimates of the effect of experience-based connections on hiring outcomes. I then use the random effects model to develop simulation-based estimates of the fraction of overall inequality in job outcomes for workers in a given cohort that is attributable to inequality in the career success of the key supervisors they met during their initial year of work. I find that about half of the wide dispersion of career outcomes in Hollywood is generated by differences in the career trajectories of these initial key supervisors. In the second chapter, I study the asymptotic properties of the fixed effects estimator I employ in the first chapter. The estimator is robust to unobserved heterogeneity across workers and movies. It is based on subgraphs of worker-movie dyads that I call pairs. Inference is non-standard, because pairs within a sample are only independent when they do not share any workers or movies in common. The underlying criterion is a two-sample U-process. I show that the U-statistic derived from the estimator's first order condition is asymptotically equivalent to a certain projection which involves summation over all the worker-movie dyads in the sample. I use this result to derive a consistent estimator of the variance of the estimator.

Essays in Macroeconomics

Author : Michele Fornino
Publisher :
ISBN 13 :
Total Pages : 222 pages
Book Rating : 4.:/5 (133 download)

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Book Synopsis Essays in Macroeconomics by : Michele Fornino

Download or read book Essays in Macroeconomics written by Michele Fornino and published by . This book was released on 2021 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the second chapter, Elia Sartori and I present a wage posting model with search frictions where idiosyncratic shocks to optimal firm size generate different returns to adjusting the workforce. Our approach takes the firms as the only decision makers, and it assumes a simple employment contract: firms pay a wage and may only change an employment relationship by paying exogenously specified costs. Labor market outcomes are modeled as a mean field game equilibrium in which aggregate statistics impacting firms' policies, which play the role of prices, are the hiring and poaching flow rates. Consistency of aggregate choices with prices builds on a reduced form matching function which subsumes the entire functioning of the labor market outside of firms. Leveraging and extending recently developed numerical methods, we can solve for the equilibrium. The model delivers nontrivial policy functions and aggregates, which can be used to quantify features of the endogenous reshuffling of workers both in the size ladder and in the wage ladder, including net poaching along these two margins, as presented in, e.g., Haltiwanger et al. (2017). A calibrated version of the model is able to generate an inverted net poaching schedule which is consistent with their finding that smaller firms poach workers from larger ones.

Economy in Society

Author : Michael J. Piore
Publisher : MIT Press
ISBN 13 : 0262018241
Total Pages : 175 pages
Book Rating : 4.2/5 (62 download)

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Book Synopsis Economy in Society by : Michael J. Piore

Download or read book Economy in Society written by Michael J. Piore and published by MIT Press. This book was released on 2013 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prominent economists discuss internal labor markets, the dynamics of immigration, labor market regulation, and other key topics in the work of Michael J. Piore. In Economy in Society, five prominent social scientists honor Michael J. Piore in original essays that explore key topics in Piore's work and make significant independent contributions in their own right. Piore is distinctive for his original research that explores the interaction of social, political, and economic considerations in the labor market and in the economic development of nations and regions. The essays in this volume reflect this rigorous interdisciplinary approach to important social and economic questions. M. Diane Burton's essay extends our understanding of internal labor markets by considering the influence of surrounding firms; Natasha Iskander builds on Piore's theory of immigration with a study of Mexican construction workers in two cities; Suzanne Berger highlights insights from Piore's work on technology and industrial development; Andrew Schrank takes up the theme of regulatory discretion; and Charles Sabel discusses theories of public bureaucracy.

Essays on Macroeconomics

Author : Jaeyoung Jang
Publisher :
ISBN 13 :
Total Pages : 92 pages
Book Rating : 4.:/5 (116 download)

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Book Synopsis Essays on Macroeconomics by : Jaeyoung Jang

Download or read book Essays on Macroeconomics written by Jaeyoung Jang and published by . This book was released on 2020 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: These essays contribute to the literature on Macroeconomics. Chapter 1 provides an endogenous growth model to explain the impact of financial reform on a nation's growth rate both in the short run and the long run. The current literature focuses only on the transition period right after the reform and therefore, cannot match the long-run growth rate that is higher than the pre-reform growth rate. The model primarily operates through a borrowing constraint on firms that prevents them from optimally allocating resources between capital investment and innovation. Through this mechanism, it can explain all three phases of a country's growth around a financial reform: A very low growth period before the reform, rapid growth immediately following the reform, and finally a convergence to a moderate growth rate in the long run. Chapter 2 develops a monopolistic competition model with multi-sector network linkages. In the presence of monopolistic competition, information of firm size is not sufficient information to measure an individual firm's impact on the economy. Therefore, the interaction between firms should be considered to measure the impact properly. Chapter 3 inspects the impact of input-output linkages on gains from trade. I extend the model from Chapter 2 to an open economy. The conventional issue in the current literature is that the welfare gain from trade is too small. The model is different from existing models with input-output linkages in that it cannot only compare welfare gains with standard models but also enables a counter-factual analysis to examine the importance of network linkages by shutting down the relationship across sectors within the country. In the model, opening trade delivers newly introduced goods to a firm in the country. These newly traded goods will be used to produce other goods in a more efficient way. Through this channel, measured gains from trade are bigger than in the standard literature. The input-output linkages initiate a positive chain reaction through the economy and produce an additional channel for welfare gain that is absent in standard models, thereby increasing measured welfare gain.

Economy

Author : Ron Martin
Publisher : Routledge
ISBN 13 : 1351159186
Total Pages : 723 pages
Book Rating : 4.3/5 (511 download)

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Book Synopsis Economy by : Ron Martin

Download or read book Economy written by Ron Martin and published by Routledge. This book was released on 2017-11-30 with total page 723 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic geographers have always argued that space is key to understanding the economy, that the processes of economic growth and development do not occur uniformly across geographic space, but rather differ in degree and form as between different nations, regions, cities and localities, with major implications for the geographies of wealth and welfare. This was true in the industrial phase of global capitalism, and is no less true in the contemporary era of post-industrial, knowledge-driven global capitalism. Indeed, the marked changes occurring in the structure and operation of the economy, in the sources of wealth creation, in the organisation of the firm, in the nature of work, in the boundaries between market and state, and in the regulation of the socio-economy, have stimulated an unprecedented wave of theoretical, conceptual and empirical enquiry by economic geographers. Even economists, who traditionally have viewed the economy in non-spatial terms, as existing on the head of the proverbial pin, are increasingly recognising the importance of space, place and location to understanding economic growth, technological innovation, competitiveness and globalisation. This collection of previously published work, though containing but a fraction of the huge explosion in research and publication that has occurred over the past two decades, seeks to convey a sense of this exciting phase in the intellectual development of the discipline and its importance in grasping the spatialities of contemporary economic life.

Essays in International Macroeconomics

Author : Alessandro Ferrari
Publisher :
ISBN 13 :
Total Pages : 230 pages
Book Rating : 4.:/5 (115 download)

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Book Synopsis Essays in International Macroeconomics by : Alessandro Ferrari

Download or read book Essays in International Macroeconomics written by Alessandro Ferrari and published by . This book was released on 2020 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first chapter I investigate the role of position in global value chains in the transmission of final demand shocks and the cyclicality and volatility of trade. Relying on a production network model with propagation via procyclical inventory adjustment, I show how shocks can magnify or dissipate upstream. I test the theoretical results empirically using input-output data. I find that industries far from consumers respond to final demand shocks up to twice as much as final goods producers. I also document the critical role of the position in the global value chain for countries' cyclical macroeconomic response: i) controlling for bilateral similarity in global value chain position eliminates the standard correlation between similarity in industrial structure and bilateral output comovement; ii) two indicators, measuring the number of steps of production embedded in the trade balance and the degree of mismatch between exports and imports, explain between 10% and 50% of the volatility and the cyclicality of net exports. In the second chapter we develop a multi-industry growth model with oligopolistic competition and variable markups. Our model features a complementarity between capital accumulation and competition, which can give rise to multiple competitive regimes - regimes characterized by a large capital stock and strong competition and regimes featuring low capital and weak competition (low competition traps). Negative transitory shocks can trigger a transition from a high to a low competition regime. We also show that, as the firm size/markup distribution becomes more dispersed, the economy is increasingly likely to enter a low competition trap. In a calibrated version of our model, a transition from a high to a low competition regime rationalizes important features of the US great recession and its aftermath, such as the persistent drop in output and aggregate TFP, the decline of the labor share, the increase in the profit share, and the decline in the number of firms. In the third chapter we study how countries which share a common currency potentially have strong incentives to share macroeconomic risks through a system of transfers to compensate for the loss of national monetary policy. However, the option to leave the currency union and regain national monetary policy can place severe limits on the size and persistence of transfers which are feasible inside the union. In this paper, we derive the optimal transfer policy for a currency union as a dynamic contract subject to enforcement constraints, whereby each country has the option to unpeg from the common currency and default completely on any payment obligations. Our analysis confirms that the lack of independent monetary policy is an important obstacle to risk sharing within a currency union; however, under certain conditions, it is still possible to support substantial macroeconomic stabilization through state contingent international transfers within the union.

Essays on Macroeconomics

Author : Ting Ji
Publisher :
ISBN 13 :
Total Pages : 89 pages
Book Rating : 4.:/5 (919 download)

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Book Synopsis Essays on Macroeconomics by : Ting Ji

Download or read book Essays on Macroeconomics written by Ting Ji and published by . This book was released on 2015 with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt: In these essays, I examine the role of allocating human capital and labor in an economy. The first chapter documents occupational inheritance-interpreted as children inheriting their parents' occupations-in China, India, and the US. I argue that the prevalence of occupational inheritance in China and India is largely due to two categories of impediments: (1) labor market frictions, e.g., parents' social networks and household registration, which ties rural families to agriculture in China, and the caste system, which restricts young workers' occupational choices in India, and (2) barriers to acquiring human capital, i.e., it is much easier for the young in the US to accumulate human capital from sources other than senior family members compared with the young in China and India. Based on a new tractable occupational choice model using techniques from Eaton and Kortum (2002), this chapter quantitatively evaluates the aggregate implications of occupational inheritance. Counterfactual experiments suggest that if the impediments mentioned above could be reduced to the US level, labor productivity would grow 57 to 73% in China and over fourfold in India. In addition, China has realized 60 to 74% of this growth potential from the 1980s to 2009. The second chapter builds on three empirical facts in the US labor market: from 1980 to 2005, there was (1) about 30% growth in low-skill service jobs, (2) about 9% increase in female labor force participation, and (3) almost constant average home production hours conditional on employment status and gender. I propose a hypothesis that the increase in female labor force participation decreases home production and leads households to purchase substitutable goods from the market. A simple accounting framework produces a benchmark quantitative exercise showing that this theory can explain about 50% of the increase in low-skill service jobs. In the third chapter, I develop a theory of efficient innovation. Individuals are heterogeneous in innovation ability, and the allocation of innovative agents into process innovation and product innovation determines the level of innovation efficiency and output growth rate. I identify several sources of inefficiency of the competitive economy, notably the frictions in the innovator market.

Macroeconomics and the History of Economic Thought

Author : H.M. Krämer
Publisher : Routledge
ISBN 13 : 1136329129
Total Pages : 558 pages
Book Rating : 4.1/5 (363 download)

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Book Synopsis Macroeconomics and the History of Economic Thought by : H.M. Krämer

Download or read book Macroeconomics and the History of Economic Thought written by H.M. Krämer and published by Routledge. This book was released on 2012-03-29 with total page 558 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essays in this Festschrift have been chosen to honour Harald Hagemann and his scientific work. They reflect his main contributions to economic research and his major fields of interest. The essays in the first part deal with various aspects within the history of economic thought. The second part is about the current state of macroeconomics. The essays in the third part of the book cover topics on economic growth and structural dynamics.