Economic growth and factor substitution with elastic labor supply

2018 ◽  
Vol 94 ◽  
pp. 49-57 ◽  
Author(s):  
Manuel A. Gómez
Keyword(s):  
Economic Growth ◽  
Labor Supply ◽  
Factor Substitution ◽  
Elastic Labor Supply

scholarly journals Net Economic Benefits from Shifting Consumption, Labor Elasticity, and Productivity Gains During an Accelerated Renewable Energy Transition in China

2020 ◽  
Author(s):  
Yidan Chen ◽  
Jiang Lin ◽  
David Roland-Holst ◽  
Can Wang
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Labor Supply ◽  
Energy Transition ◽  
Consumption Patterns ◽  
Energy Costs ◽  
Job Growth ◽  
Multiplier Effects ◽  
Elastic Labor Supply ◽  
Business As Usual

Abstract China is the world’s largest greenhouse gas (GHG) emitter, but declining wind and solar energy costs present opportunities to transform its electric power sector. In 2017, China launched a national emission trading scheme (ETS). Evidence to date suggests that the ETS mitigates CO2 emissions and promotes renewable energy deployment but constrains economic growth. These studies, however, do not account comprehensively for economic impacts. Ours is the first to account for three multiplier effects—shifting consumption patterns, job growth with elastic labor supply, and higher total factor productivity (TFP)—when modeling accelerated renewable electricity growth with the ETS in China. Results from a detailed economic forecasting model show low renewable energy costs interacting with the ETS to slash GHG emissions while directly stimulating incremental net positive economic growth by 2030, compared with a business-as-usual scenario that assumes slower renewable cost reductions and no ETS. Accounting for the multiplier effects reveals larger potential benefits, including up to 15.6% of additional GDP growth (over business as usual) by 2030 when shifting consumption patterns, job growth with elastic labor supply, and higher TFP are all considered. These results suggest that China should accelerate its clean energy transition, not only for the air-quality and climate benefits, but also for the broad and positive impact on innovation, employment, and economic growth.

Economic Growth with Heterogeneous Households, Gender Division of Labor, and Elastic Labor Supply

2013 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Labor Supply ◽  
Division Of Labor ◽  
Wealth Distribution ◽  
Group Model ◽  
Labor Participation ◽  
Female Labor ◽  
Gender Division Of Labor ◽  
Elastic Labor Supply ◽  
Income And Wealth Distribution

The purpose of this study is to propose a growth model with gender-heterogeneous households and an elastic labor supply. The dynamic model describes an interaction among economic growth, time, gender, income, and wealth distribution. Our investigation differs from traditional growth and distribution related studies, in that we propose an alternative approach to consumer behavior. We simulate the 3-group model to provide insights into the complexity of growth, income, and wealth distribution with a gender division of labor. Further, we are able to gain a better understanding of dynamic interactions among economic growth, income and wealth distribution, and female labor participation. For instance, our comparative dynamic analysis demonstrates that either a rise in female education or the propensity to work of any one group will increase the female labor participation within that group but that such a change has weak effects on the female labor participation within all other groups.

Implications of higher retirement age for the labor market

2017 ◽  
pp. 22-39 ◽  
Author(s):  
M. Ivanova ◽  
A. Balaev ◽  
E. Gurvich
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Labor Supply ◽  
Labor Force ◽  
Labor Demand ◽  
Retirement Age ◽  
Demographic Trends ◽  
Men And Women ◽  
Demographic Projections ◽  
The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

Methods

2017 ◽  
Author(s):  
Stefan Homburg
Keyword(s):  
Labor Supply ◽  
Money Demand ◽  
Rational Expectations ◽  
Overlapping Generations ◽  
Final Section ◽  
Price Setting ◽  
Reasonable Approximation ◽  
Planning Horizons ◽  
Elastic Labor Supply ◽  
Made In

Chapter 8 concludes the text with methodical remarks. It defends key assumptions made in the main text and compares them, to the extent they deviate, with more conventional premises. The chapter starts with a comparison of adaptive versus rational expectations. Thereafter, it contrasts infinite planning horizons, finite planning horizons, and overlapping generations models. The third section, which is devoted to modeling money, discusses money-in-the-utility, the transaction costs approach, and more recent theories that derive money demand from a microeconomic framework. The forth section shows that assuming a highly elastic labor supply is empirically unconvincing, whereas a constant labor supply simplifies the model greatly and appears as a reasonable approximation. The final section contrasts behavioral and choice theoretic approaches to price setting.

scholarly journals Endogenous Tradability, International Relative Prices, and the International Transmission of Business Cycles

2019 ◽  
Vol 11 (3) ◽  
pp. 111
Author(s):  
Soojae Moon
Keyword(s):  
Business Cycles ◽  
Labor Supply ◽  
Product Differentiation ◽  
Physical Capital ◽  
Dynamic Stochastic General Equilibrium ◽  
Relative Price ◽  
Relative Prices ◽  
Dynamic Stochastic ◽  
Elastic Labor Supply ◽  
Endogenous Tradability

This paper propose a two-country, dynamic, stochastic, general equilibrium (DSGE) model with endogenous tradability, product differentiation, variously determined physical capital, and an elastic labor supply to explore the propagation of business cycles across countries. The model successfully addresses international relative price dynamics (its appreciation with positive home productivity shock, called the ‘Harrod-Balassa-Samuelson Effect’) through the entry of producers and their cut-off productivities of exporting. The use of endogenous physical capital in the model induces a more realistic framework since the simulated model is compared to the U.S. investment data that covers spending on capital equipment, structures and inventories for producers’ entry and exit dynamics. Building the model with endogenous capital and elastic labor supply weakens the volatility of investment compared to conventional international real business cycle (IRBC) models. The model also accounts for several features of the data, such as the volatility of aggregate variables and their correlations with GDP.

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