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that an increase in savings lowers economic growth, as reduced consumption negatively affects investment. A number of … studies also argue that due to the adjustment costs and frictions in labor and goods markets, a reduction in consumption … negatively affects economic growth. The paper argues that a significant reduction in consumption causes a recession, but a slight …
Persistent link: https://www.econbiz.de/10014345974
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Persistent link: https://www.econbiz.de/10013431636
Using firm-level data covering 709 cities in 128 countries, we examine the role of a comprehensive list of business and institutional environment variables at the sub-national level in explaining firm employment and productivity growth. We find basic protection (with corruption as an element),...
Persistent link: https://www.econbiz.de/10013163637
China has achieved impressive growth over the last three decades. However, there has been debate over the sources of the growth, and the role of the intensive versus extensive margin. Growth accounting exercises at the aggregate level (Rawski and Perkins, 2008; Bosworth and Collins, 2008) suggest an...
Persistent link: https://www.econbiz.de/10003940472
This paper deals with some structural indicators and their evolution, in China and regions, over the period 1981-2010. We first produce estimates of the optimal productivities of incremental capital and the optimal incremental income elasticity of capital by means of a linear programming...
Persistent link: https://www.econbiz.de/10009732274
China's growth potential has become a hotly debated topic as the economy has reached an income level susceptible to the 'middle-income trap' and financial vulnerabilities are mounting after years of rapid credit expansion. However, the existing literature has largely focused on macro level...
Persistent link: https://www.econbiz.de/10012843511
In the last few decades, real GDP growth and investment in advanced countries have declined in tandem. This slowdown was not the result of weak demand (there has been no shift along the Okun curve), but of a decline in potential output growth (which has shifted the Okun curve to the left). We...
Persistent link: https://www.econbiz.de/10012859859
price of consumption. We use observed prices to solve for optimal investment decisions, and understand the underlying …
Persistent link: https://www.econbiz.de/10011777748