Endogenous Time Preference and Strategic Growth PDF Download
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Author: Carmen Camacho
Publisher:
ISBN:
Category :
Languages : en
Pages : 19
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Book Description
Author: Carmen Camacho
Publisher:
ISBN:
Category :
Languages : en
Pages : 19
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Book Description
Author: Mr.Howell H. Zee
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 34
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Book Description
The present paper develops a one-sector aggregate endogenous growth model with intertemporal preference dependence. The resultant model possesses the fundamental property of growth convergence, in the sense that countries with identical parameters regarding technology, preference, and government policy will converge to a steady state with the same (positive) growth rate. A notable tax policy implication of the model is that, even in the absence of externalities, the growth effects of an income tax are shown to be a priori ambiguous and dependent on the relative magnitudes of the tax rate and the tax elasticity of the savings rate.
Author: Pertti Haaparanta
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We introduce endogenous time preference via investment in patience (farsightedness) in an overlapping generations growth model to study development traps. There is no investment in patience, if the economy is very poor, while if it is wealthy enough there is always such investment. We explore the conditions for the existence of the development trap, and study in detail a robust example of an economy with traps. It does not exist, if the economy's total factor productivity is large enough. Our results illustrate the complementarity between physical investment and investment in farsightedness. Our model may also explain why economic growth is affected by initial conditions. In addition we show that increased international capital mobility does not necessarily help economies to escape from development traps.
Author: Sailesh K. Jha
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 9
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Author: Evangelos Rouskas
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We propose a dynamic framework for durable-goods with consumers who have different valuations and an arbitrary number of firms which compete in quantities in each period. Consumers' ability to behave strategically about the timing of consumption differs in the three environments that we analyze. Under perfect rationality, consumers are exogenously strategic. Under extreme bounded rationality, consumers are exogenously myopic. Under explicit bounded rationality, consumers start the game myopic and can become strategic by incurring a cost after they observe the first-period price. We explore the effects of entry, mergers, and an increase in the cognition cost on profits and consumer surplus.Entry: We prove that no exogenously strategic consumers become worse off after entry. In contrast to this, for certain parameter constellations, some exogenously myopic consumers pay higher prices after entry when entry leads them to change the timing of consumption; either all of these consumers or a segment of these become worse off after entry. When a positive mass of consumers become endogenously strategic both before and after entry, we find that consumers who may experience harmful entry include those who remain myopic before entry and become strategic--without changing the timing of consumption--after entry.Mergers: Under perfect rationality, it is well-established in the existing literature on durable-goods markets with Cournot competition that the merger paradox weakens within two-period settings. We show that this may not hold under extreme and explicit bounded rationality. The paradox may even be exacerbated. Even if participants represent more than 80% of the industry, the merger may not be profitable.Increase in the cognition cost: Conventional wisdom dictates that an increase in the transparency of the market benefits consumers and hurts firms. In our oligopolistic framework, the cognition cost is the obstacle to market transparency. Previous research based on comparable assumptions yields the result according to which an increase in the cognition cost always increases monopolistic profits. This result cannot generalize to oligopoly. When the cognition cost tends to zero, then a small increase in the cost leads to a decrease in per firm profits provided that the discount factor is high.
Author: Marianna A. Klochko
Publisher: Edward Elgar Publishing
ISBN: 9781781958001
Category : Business & Economics
Languages : en
Pages : 296
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Book Description
'Peter Ordeshook is an outstanding scholar and is addressing a very important question. As he points out on the first page of Chapter 1, social norms do exist and are adhered to, constitutions survive, people cooperate with others in some settings, but not in others. The topic of this book is very exciting and important - this is a real winner.' - Elinor Ostrom, Indiana University, US Marianna Klochko and Peter Ordeshook address an under-studied issue from rational choice theory - the common assumption that individual time preferences are exogenous and fixed. They then present empirical evidence to suggest that this is not the case, exploring a computer simulation model that allows for the evolutionary change of time preferences. This is done, moreover, in the context of social networks that are themselves endogenously determined.
Author: Wolfram Elsner
Publisher: Academic Press
ISBN: 0124115993
Category : Business & Economics
Languages : en
Pages : 599
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Book Description
The Microeconomics of Complex Economies uses game theory, modeling approaches, formal techniques, and computer simulations to teach useful, accessible approaches to real modern economies. It covers topics of information and innovation, including national and regional systems of innovation; clustered and networked firms; and open-source/open-innovation production and use. Its final chapter on policy perspectives and decisions confirms the value of the toolset. Written so chapters can be used independently, the book includes an introduction to computer simulation and pedagogical supplements. Its formal, accessible treatment of complexity goes beyond the scopes of neoclassical and mainstream economics. The highly interdependent economy of the 21st century demands a reconsideration of economic theories. - Describes the usefulness of complex heterodox economics - Emphasizes divergences and convergences with neoclassical economic theories and perspectives - Fits easily into courses on intermediate microeconomics, industrial organization, and games through self-contained chapters
Author: Jeffrey Furman
Publisher: Emerald Group Publishing
ISBN: 1787430790
Category : Business & Economics
Languages : en
Pages : 405
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Book Description
Despite recent advances in our understanding of how innovation and entrepreneurship impact the creation and appropriation of value, numerous questions remain unanswered. This volume draws together scholars working at the forefront of entrepreneurship-, strategy-, and innovation-related domains to explore these questions.
Author: Orlando Gomes
Publisher: Springer Nature
ISBN: 3031096002
Category : Business & Economics
Languages : en
Pages : 258
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Book Description
This textbook introduces readers to essential tools, techniques and methods for intertemporal and strategic modeling in economics. It presents a variety of analytical models covering both dynamic processes and strategic interaction. Students will learn the basic mechanisms associated with the intertemporal approach, on the one hand, and game theory, i.e., the strategic approach, on the other. In addition, a wide range of applications are explored, including growth models, labor markets, international trade, and individual decision-making. Intended for upper undergraduate and graduate students in economics and related fields with a background in mathematics and calculus, this textbook provides a comprehensive introduction to economic modeling and its applications. By avoiding excessive formalism and exploring straightforward examples and applications, it is optimally suited for graduate courses in economics and finance.
Author: Cristiano Antonelli
Publisher: Edward Elgar Publishing
ISBN: 178254514X
Category : Business & Economics
Languages : en
Pages : 304
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Book Description
This ground-breaking new book builds upon the Schumpeterian creative response. The author shows that firms, in out-of-equilibrium conditions, try and react by means of introducing innovations. The success of their reaction is contingent upon their access conditions to knowledge, which are shaped by the system in which they operate. The emergence of new innovations can, in turn, knock firms further out-of-equilibrium and cause changes in the system properties that govern their access to external knowledge. This path dependent loop of interactions between the system properties and the individual actions of firms, accounts for endogenous innovation and the dynamics of the system.
