Showing 1 - 10 of 562
This paper considers an overlapping generations model of a household economy in an agrarian set up to examine the short run as well as long run effects of increase in size of land holding on child labour, human capital formation and growth. It is assumed that each household consists of one adult...
Persistent link: https://www.econbiz.de/10011039048
We present results from quantitative exercises using the Lucas and Romer endogenous growth models, from which we calculate welfare losses from the distortions presented in the Romer model. Moreover, comparing the models to data, we show that an economy governed by the Romer model would attain a...
Persistent link: https://www.econbiz.de/10008490316
Using a panel dataset of 86 countries from 1960-2005, this paper empirically assesses the effect of several democracy proxies (by means of the Polity IV database), together with a set of control variables, such as human capital and the initial level of GDP per capita, on the rate of economic...
Persistent link: https://www.econbiz.de/10008577391
Cummins et al. (2006) construct a new measure of fundamentals, and show that the positive cash flow effects typically found in investment-Q models disappear when traditional Q is replaced with their new measure. Their results are not robust to small changes in their specification or in the...
Persistent link: https://www.econbiz.de/10005416975
The purpose of this paper is to present improved estimates of the intertemporal elasticity of substitution (IES) for Japan assuming a constant relative risk aversion (CRRA) utility function. The estimates of the IES we obtain range from 0.2 to 0.5 when we use quarterly consumption data and the...
Persistent link: https://www.econbiz.de/10010835723
We develop a simple analytical framework where the longevity of profit-maximizing firms requires costly resources. We show that a firm's longevity and value are positively related to the firm''s pricing power, cash reserves, honesty, and ratio of equity to debt financing.
Persistent link: https://www.econbiz.de/10010835750
This paper analyzes growth and wealth distribution in a simple AK model in which households are heterogeneous not only in time-preference but in intertemporal substitution. Contrary to the result without long-run growth, the most patient household does not always own the entire capital in an...
Persistent link: https://www.econbiz.de/10010836137
Using regression discontinuity design we study a change in household consumption-related expenditures in Russia and compare it to the change in subjective measure of income adequacy at retirement. We find that both measures decline in response to retirement.
Persistent link: https://www.econbiz.de/10010836175
If the consumer's risk aversion behavior varies intertemporally and if the risk aversion coefficient on future consumption becomes very large, the consumer tends to aim at a fixed future consumption target. A by-product is a reinterpretation of subsistence theories of consumption.
Persistent link: https://www.econbiz.de/10005094767
We develop a simple analytical framework where the longevity of profit-maximizing firms requires costly resources. We show that a firm's longevity and value are positively related to the firm''s pricing power, cash reserves, honesty, and ratio of equity to debt financing.
Persistent link: https://www.econbiz.de/10005196461