scholarly journals Uncertainty shocks and the relative price of investment goods

2018 ◽  
Vol 30 ◽  
pp. 163-178 ◽  
Author(s):  
Munechika Katayama ◽  
Kwang Hwan Kim
Keyword(s):  
Relative Price ◽  
Uncertainty Shocks ◽  
Investment Goods

scholarly journals Relative Prices and Relative Prosperity

2007 ◽  
Vol 97 (3) ◽  
pp. 562-585 ◽  
Author(s):  
Chang-Tai Hsieh ◽  
Peter J Klenow
Keyword(s):  
Real Income ◽  
Relative Price ◽  
Relative Prices ◽  
Income Levels ◽  
Poor Countries ◽  
Investment Rates ◽  
Tariff Rates ◽  
Low Efficiency ◽  
Investment Goods ◽  
Real Investment

The positive correlation between real investment rates and real income levels across countries is driven largely by differences in the price of investment relative to output. The high relative price of investment in poor countries is due to the low price of consumption goods in those countries. Investment prices are no higher in poor countries. Thus, the low real investment rates in poor countries are not driven by high tax or tariff rates on investment. Poor countries, instead, appear to be plagued by low efficiency in producing investment goods and in producing consumer goods to trade for them. (JEL E22, E23, O16, O47)

scholarly journals Secular Stagnation: The Long View

2015 ◽  
Vol 105 (5) ◽  
pp. 66-70 ◽  
Author(s):  
Barry Eichengreen
Keyword(s):  
Population Growth ◽  
Productivity Growth ◽  
Economic History ◽  
Relative Price ◽  
Secular Stagnation ◽  
Investment Goods

Four explanations for secular stagnation are distinguished: a rise in global saving, slow population growth that makes investment less attractive, adverse trends in technology and productivity growth, and a decline in the relative price of investment goods. A long view from economic history is most supportive of the last of these four views.

scholarly journals Investment Demand and Structural Change

Econometrica ◽  
2021 ◽  
Vol 89 (6) ◽  
pp. 2751-2785 ◽  
Author(s):  
Manuel García-Santana ◽  
Josep Pijoan-Mas ◽  
Lucciano Villacorta
Keyword(s):  
Capital Accumulation ◽  
Developing Economies ◽  
Value Added ◽  
Relative Price ◽  
Investment Rate ◽  
Investment Demand ◽  
Consumption Goods ◽  
Sectoral Composition ◽  
The One ◽  
Investment Goods

We study the joint evolution of the sectoral composition and the investment rate of developing economies. Using panel data for several countries in different stages of development, we document three novel facts: (a) the share of industry and the investment rate are strongly correlated and follow a hump‐shaped profile with development, (b) investment goods contain more domestic value added from industry and less from services than consumption goods do, and (c) the evolution of the sectoral composition of investment and consumption goods differs from the one of GDP. We build a multi‐sector growth model to fit these patterns and provide two important results. First, the hump‐shaped evolution of investment demand explains half of the hump in industry with development. Second, asymmetric sectoral productivity growth helps explain the decline in the relative price of investment goods along the development path, which in turn increases capital accumulation and promotes growth.

Watersheds and Turning Points: Conjectures on the Long-Term Impact of Civil War Financing

1974 ◽  
Vol 34 (3) ◽  
pp. 636-661 ◽  
Author(s):  
Jeffrey G. Williamson
Keyword(s):  
Civil War ◽  
Price Change ◽  
Turning Points ◽  
Capital Formation ◽  
Relative Price ◽  
Capital Goods ◽  
Saving Rates ◽  
Long Term Impact ◽  
Investment Goods

What accounts for the “epochal” changes in capital formation shares and capital goods' prices during the 1860's? The pages following document an epochal rise in American gross saving rates centered on the Civil War decade. They also establish a symmetrical episodic shift in the relative price of manufactured durable investment goods. Not only did the American investment share in GNP rise dramatically (and permanently) between the 1850's and 1870's, but the relative price of capital goods declined sharply over the same period. This relative price change was pronounced and it was never again repeated in a subsequent century of development.

scholarly journals A Different Perspective of Pakistan's Economy: The Structure of Expenditures and Prices, 1975-81

1983 ◽  
Vol 22 (3) ◽  
pp. 163-177
Author(s):  
Alan Heston
Keyword(s):  
Developing Countries ◽  
International Comparison ◽  
Price Level ◽  
Relative Price ◽  
Purchasing Power ◽  
Price Structure ◽  
Inflation Rates ◽  
Investment Goods

This paper presents comparisons of the purchasing power of the Pakistani rupee in 1975 with those of the currency units of 33 other countries in the same year, based on the UN International Comparison Project and examines relative price structure in Pakistan compared to those in other countries. Pakistan's price level and structure are similar to those of many developing countries, although the prices of investment goods were unusually high. The paper also updates the results to 1982 and finds that the decline in the purchasing power of the rupee is fairly consistent with relative inflation rates.

scholarly journals The Global Decline of the Labor Share*

2013 ◽  
Vol 129 (1) ◽  
pp. 61-103 ◽  
Author(s):  
Loukas Karabarbounis ◽  
Brent Neiman
Keyword(s):  
Influencing Factor ◽  
Relative Price ◽  
Macroeconomic Dynamics ◽  
Labor Share ◽  
Macroeconomic Models ◽  
Skill Composition ◽  
The Stability ◽  
Investment Goods ◽  
Factor Shares ◽  
Technology Growth

Abstract The stability of the labor share of income is a key foundation in macroeconomic models. We document, however, that the global labor share has significantly declined since the early 1980s, with the decline occurring within the large majority of countries and industries. We show that the decrease in the relative price of investment goods, often attributed to advances in information technology and the computer age, induced firms to shift away from labor and toward capital. The lower price of investment goods explains roughly half of the observed decline in the labor share, even when we allow for other mechanisms influencing factor shares, such as increasing profits, capital-augmenting technology growth, and the changing skill composition of the labor force. We highlight the implications of this explanation for welfare and macroeconomic dynamics.

Sign in / Sign up

Export Citation Format

Share Document