Metroeconomica最新文献

This study presents a trade model with (1) intermediate inputs, (2) link commodities, and (3) Keynesian unemployment. The model has linear input coefficients, stable commodity prices, and short-run adjustment of the quantity supplied on the occasion of demand changes, making it compatible with international input–output tables and analysis. Given production techniques, labor endowments, upper limits of unemployment rates, markup rates, and final demand in each country, this model specifies feasible trade patterns and determines commodity prices, wage rates, gross outputs, employment/unemployment rates, national income, income distribution, and trade volumes/values for each pattern. Starting with a two-country, three-commodity case, this model expands to a multi-country, multi-commodity case.

By promoting economic growth, human capital may contribute to the rise in CO2 emissions, but it may also stimulate emission-reducing technologies. Starting from a Green Solow model augmented with human capital, we show that the former effect dominates the latter when human capital is below a critical value, while the opposite is true when human capital becomes sufficiently high. We also find that this result may delay the observability of an EKC and that human capital is more important than savings and depreciation rates in predicting CO2 growth. This evidence has relevant policy implications regarding which factors should be considered to mitigate carbon emissions.

This study explores the interaction between private and public physical capital accumulation within a Lewis development framework, in which public infrastructure is subject to congestion. The model shows that when both levels of capital are relatively low, a crowding-out of private investment creates the necessary conditions for the emergence of a development trap, from which a surplus labor economy, if left to the free play of its structural forces, may never escape. Once caught in such a trap, the economy can potentially be released through a big push of public or private capital or a sufficiently balanced combination of both.

In finance, the economic evaluation of an intertemporal flow of investments may lead to opposite conclusions according as the present value criterion or the internal rate of return (IRR) criterion is retained. However, when the lifetime of the project results from an economic choice, the criteria are reconciled for the competitive sequence. When the flows are expressed in physical terms, a generalization of the notion of IRR allows us to show that multisector fixed-capital models with a given real wage behave like single-product systems. The competitive rate of return has a maximality property. The paper revises the logical and chronological relationships between neo-Austrian and Sraffian fixed-capital models.

Using an ARDL-ECM model, we estimate the aggregate and sectoral elasticities for Argentina. We confirm that the income elasticities of exports are lower than those of imports. When we control by real labor costs, exchange rate volatility, the black-market exchange rate and domestic absorption, the difference between income elasticities is reduced but remains statistically significant. In the sectoral breakdown, the higher the technological intensity in the industry, the higher the income elasticities. Agro-based, textile, automotive, process, and engineering products have price elasticities two or three times the magnitude of aggregate elasticity.

Taking a cue from some passages of The Wealth of Nations, this paper defines notions of maximum willingness to pay and of individual surplus expressed in hours of labour for a two-good pre-capitalist economy. From the individual surplus, a consistent objective theory of individual choice is constructed, and a demand schedule free from subjective elements is derived.

In this paper, we argue that studying recession events through the shapes observed in sequences of GDP data can help to avoid methodological complications and offer new insights to traditional inquiries. With a set of 147 recession events from 77 countries, we analyze whether the shape of the output dynamic might be affected by the application of countercyclical policies. Firstly, we apply a machine learning technique to discover and cluster the shapes (or ‘shapelets’) that prevail in empirical spells. Secondly, we use a multinomial model to study fiscal and monetary interventions, in which we specify the categorical variable with a set of statistically different shapelets. Not only do we find strong empirical evidence that it is possible to overcome a recession through countercyclical policies, but also that there are non-linear effects that make it more likely when the strength of these policies crosses certain thresholds.

This paper builds and explores in detail a post-Keynesian–Sraffian one-country model of effective demand, which, on the one hand, extends the Kurz multiplier model to open–with state-economies of single production and, on the other hand, is applicable to data from the National Input–Output Tables of the World Input–Output Database. Thus, it estimates the net output, import and employment matrix demand multipliers for the world's 10 largest economies. The overall findings provide general support for and new insights into Sraffian theoretical and policy arguments: (i) the multiplier effects depend heavily on the physical composition of autonomous demand; (ii) the incremental share of wages in net national income can move in either direction with an increase in the savings ratios out of wages and profits and/or the corresponding direct tax rates; (iii) there is, in general, no one-to-one correspondence between alternative tax–transfer policies and their multiplier effects; and (iv) there is not necessarily an inverse relationship between the overall level of the profit rate and the multiplier effects or the wage share.