Metroeconomica最新文献

We investigate a supply chain comprising a manufacturer engaged in advertising and two retailers who compete with differentiated products. We examine the endogenous choice between competing on quantity or price for the retailers. Our analysis reveals that, depending on the level of product substitutability, the range of possible outcomes is varied and includes Cournot, Bertrand, and Cournot-Bertrand under informative advertising. This result contradicts the established understanding that firms tend to engage in Cournot competition as their dominant strategy. Furthermore, we find that under persuasive advertising, Cournot or Bertrand outcomes may be optimal, but Cournot-Bertrand never arises as an equilibrium.

A significant portion of the work published on firm investment adapts models that operate on an “average firm” assumption, which is different from the investment behavior of a modal firm. This study employs a Bayesian quantile regression model to explore the investment rates in the United States and finds, first, that the firms with higher investment rates have a higher responsiveness to the valuation ratio and lower responsiveness to the profit rate, and, second, that there is a decline in the responsiveness of firm investment to these factors in recent years. The paper also emphasizes the role of autonomous investments in determining firm-level investment rates, based on differing sectoral factors.

In impunity bargaining with concession, opportunistic proposers would not offer anything nor concede. Opportunistic responders should not accept first offers since second offers could be more generous, for example, due to random trembles. On the contrary, our experimental data, elicited via the strategy vector method, show that participants moderate initial claims and concede, albeit by small amounts. The considerable heterogeneity in behavior suggests that disagreement is unpleasant: participants avoid it by yielding (demanding firstly less than what can be shared) and conceding (lowering first demand). Overall agreement dominates interpersonally (one plays against another) and intrapersonally (as if one plays against oneself).

This paper uses a blended methodology—conventional tests of ‘Thirlwall's law’ combined with an in-depth growth narrative approach and unit root tests—to identify the dominant balance-of-payments adjustment mechanism in the Zambian economy over the period 1956–2017. Consistent with Thirlwall's growth law, the main results identify income changes as the dominant balance-of-payments adjustment mechanism, rather than relative price changes. The three-regime export demand function further reflects the vulnerability of the Zambian economy to unexpected busts in the world copper market, and highlights the need for effective industrial policies to create a more diversified economy into higher value-added manufactures. The analysis also demonstrates that the results are robust to some of the main criticisms that have been levelled against Thirlwall's original growth law.

This article extends previous disability models in a different and more detailed framework that contemplates both temporary and permanent disability. By introducing different degrees of disability, the paper contributes to the recent debate among empirical scholars on the growth of disability insurance programmes in several OECD countries. This approach allows us to analyse, and consequently compare, the consumption paths of able, temporarily disabled, and permanently disabled workers. Furthermore, in a numerical simulation, the analysis demonstrates that the system of dynamic incentives should adapt the disability benefits to the different disability statuses.

This article aims at stimulating a discussion on “the nine building blocks presented by Pasinetti to define the main methodological characteristic features of the classical-Keynesian school” and chosen as the guidelines of a recent collective volume. The discussion notes are tripartite. Part I presents a list of short annotations at the margin of the nine blocks for possible debate. Part II starts the discussion by focusing on “an appropriate analytical framework for dealing with technical change and economic growth” and, in particular, on the theoretical approach in terms of vertically integrated sectors. Part III deals briefly with the blocks on normal states, causality and macroeconomics versus microeconomics.

Bank regulations affect the behaviour of credit and money creation; hence, they are essential for economic growth and stability. This paper develops an analytical model of the monetary circuit to show the macroeconomic effects of money creation under bank regulations. It describes the equilibrium in which banks create money in accordance with capital adequacy ratios or net stable funding ratios. This study reveals the equilibrium economic growth rate and debt level. In addition, this paper demonstrates how bank regulations influence firm capital structures, and the conditions for firms using debt and filing for bankruptcy. Results show that bank regulations can transfer risk from banks to firms. In fact, this study identifies a channel through which banks actively influence the macroeconomy through their money creation.

We analyze a network-based macroeconomic framework with the objective to analyze the effects that endogenous migration choices may have on the mutual relation between population dynamics and capital accumulation. In our economy population size determines the labor input which, together with the available capital stock, shapes total output. Production takes place with a convex-concave technology allowing for a poverty trap. Migration depends on the origin-destination income differential and affects the fertility rate. Thus population growth ultimately turns out to be endogenously dependent upon economic conditions. Such feedback effects between population and capital dynamics give rise to possible heterogeneity in the patterns of economic development, allowing to explain the large variability in the level of development between regions we generally observe at world level. We show that a higher degree of economic interaction improves economic outcomes at global level by allowing poor economies to escape their poverty trap, suggesting thus that promoting the formation of tight relations between countries may be an important policy option to favor economic development.

This paper incorporates a task-based approach into the Solow growth model to analyze the effects of automation on economic growth. We find that if task producers smoothly adopt automation technology along the capital accumulation path, sustained growth is possible even without technological progress. This result is brought about by the fact that task automation makes the aggregate production function linear. In addition, we demonstrate that both the rental price of capital and the wage are constant on the growth path. In sum, while the interaction between task automation and capital accumulation can be a pathway for sustained growth in output, it leads to the cease of wage growth in the long run.

This study introduces the partial identification of the structural vector autoregressive model to estimate the effect of income distribution on output. For this purpose, this study follows the Post-Keynesian growth models and identifies the demand regimes in Latin American countries for the period 1960–2014. The main results reveal that Bolivia, Colombia, Honduras, and Panama have profit-led regimes. In addition, Costa Rica, Nicaragua, Peru, and Uruguay have wage-led regimes. The regimes of Brazil, Chile, Ecuador, and Mexico could not be determined.