scholarly journals Education, Income, Wealth Inequality and Business Cycles in a General Equilibrium Growth Model

2020 ◽  
Vol 26 (4) ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Business Cycles ◽  
General Equilibrium ◽  
Growth Model ◽  
Open Economy ◽  
Wealth Inequality ◽  
Learning By Doing ◽  
Government Subsidy ◽  
Wealth Inequalities

The paper is concerned with the dynamic interactions between physical capital, human capital, income and wealth inequalities between different households with government subsidy to education. It generalizes the endogenous growth model of a small-open economy proposed by Zhang (2016). Zhang’s paper deals with income and wealth inequalities between heterogeneous households with government subsidy to education. The paper makes a contribution to the literature of economic growth with endogenous education by integrating Solow-Uzawa’s neoclassical growth theory, Uzawa-Lucas model, Arrow’s learning by doing, Zhang’s creative leisure, and Walrasian general equilibrium theory. The model treats endogenous capital and human capital accumulation as the main engines of economic growth. This study generalizes Zhang’s model by allowing constant coefficients to be time-dependent. We simulate the generalized model to demonstrate existence of business cycles due to various exogenous periodic shocks.

scholarly journals A Discrete Heterogeneous-Group Economic Growth Model with Endogenous Leisure Time

2009 ◽  
Vol 2009 ◽  
pp. 1-17
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Income Distribution ◽  
Growth Model ◽  
Time Allocation ◽  
Capital Accumulation ◽  
Economic Growth Model ◽  
National Economic ◽  
The Rich ◽  
Main Engine

This paper proposes a one-sector multigroup growth model with endogenous labor supply in discrete time. Proposing an alternative approach to behavior of households, we examine the dynamics of wealth and income distribution in a competitive economy with capital accumulation as the main engine of economic growth. We show how human capital levels, preferences, and labor force of heterogeneous households determine the national economic growth, wealth, and income distribution and time allocation of the groups. By simulation we demonstrate, for instance, that in the three-group economy when the rich group's human capital is improved, all the groups will economically benefit, and the leisure times of all the groups are reduced but when any other group's human capital is improved, the group will economically benefit, the other two groups economically lose, and the leisure times of all the groups are increased.

scholarly journals Network effects in a human capital based economic growth model

2009 ◽  
Vol 388 (11) ◽  
pp. 2207-2214 ◽  
Author(s):  
Teresa Vaz Martins ◽  
Tanya Araújo ◽  
Maria Augusta Santos ◽  
Miguel St Aubyn
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Growth Model ◽  
Network Effects ◽  
Economic Growth Model

scholarly journals Economic Growth and Inequality with Tourism in an Integrated Walrasian-General Equilibrium and Neoclassical-Growth Theory

2018 ◽  
Vol 21 (1) ◽  
pp. 17-36
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
General Equilibrium ◽  
Open Economy ◽  
Nonlinear Differential Equations ◽  
Small Open Economy ◽  
Growth Theory ◽  
Traded Goods ◽  
The Rich ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

Abstract This paper studies dynamic interdependence between economic growth, tourism, and inequalities in income and wealth in a small open economy. We build the dynamic model in an integrated Walrasian-general equilibrium and neoclassical-growth theory for a small open economy with multiple sectors and heterogeneous households in a perfectly competitive economy. The economy consists of one service sector which supplies non-traded services and one industrial sector which produces traded goods. We treat wealth accumulation and land distribution between housing and supply of services as endogenous variables. We show that the motion of the economy with J types of households is given by J nonlinear differential equations. We simulate the motion of the system with three groups of households. We also conduct comparative dynamic analysis with regards to the rate of interest, the price elasticity of tourism, the global economic condition, and the rich class’ human capital, and the rich class’ propensity to consume housing.

scholarly journals BUSINESS CYCLES, GROWTH, AND IMPORTED ENERGY IN A SMALL-OPEN GROWTH MODEL

2018 ◽  
Vol 3 (2) ◽  
pp. 7-21 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Business Cycles ◽  
Growth Model ◽  
Open Economy ◽  
Small Open Economy ◽  
Economic Growth Model ◽  
Constant Coefficients ◽  
Open Growth ◽  
Two Sectors ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

This paper generalizes an economic growth model proposed by Zhang (2017) by allowing all constant coefficients to be time-dependent. This paper shows existence of business cycles in the generalized model due to periodic shocks. Zhang’s original model is developed for a small open economy with imported energy and imported goods. The economy is composed of two sectors and all markets are perfectly competitive. The economy has fixed land and population. Production side is the same as in neoclassical growth theory, while demand side is modelling with Zhang’s utility and concept of disposable income. We generalize and simulate the model. We demonstrate existence of business cycles due to different exogenous periodic shocks.

Dampak Investasi Sumberdaya Manusia Terhadap Pertumbuhan Ekonomi dan Kemiskinan di Provinsi Papua Barat: Pendekatan Model Computable General Equilibrium

Agrotek ◽  
2018 ◽  
Vol 2 (4) ◽  
Author(s):  
Supri Hadi
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
General Equilibrium ◽  
Urban Area ◽  
Rural Area ◽  
Computable General Equilibrium ◽  
Capital Investment ◽  
Government Expenditure ◽  
Human Capital Investment ◽  
Severity Index

The research objectives are to analyze impact of human capital investment on economic growth and poverty incidence in West Papua. Analysis is using a combination of Computable General Equilibrium (CGE) Model and Foster�Greer-Thorbecke Method. The human capital investment is represented by government expenditure for education and health. The simulation results show that human capital investment is able to increase economic growth and household income. Head count index, poverty gap index and poverty severity index also decrease except for non-labor household group in the urban area. Human capital investment for education gives more benefit to household in rural area than those in urban area, especially for farm-laborer and agriculture entrepreneur household groups in the rural area, while investment for health gives more benefit to non-agricultural high income household group in urban area.

scholarly journals STATUS PREFERENCE AND THE EFFECTS OF PATENT PROTECTION: THEORY AND EVIDENCE

2016 ◽  
Vol 22 (4) ◽  
pp. 837-863 ◽  
Author(s):  
Shiyuan Pan ◽  
Mengbo Zhang ◽  
Heng-Fu Zou
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Regression Analysis ◽  
Social Welfare ◽  
Cross Section ◽  
Growth Model ◽  
Patent Protection ◽  
Wealth Inequality ◽  
Protection Theory

We construct a growth model with status preference to explore the effects of patents on innovation and social welfare. We find a nonmonotonic effect of patent protection on innovation. Additionally, the growth-rate-maximizing degree of patent protection decreases when the strength of status preference is larger. The effect of patent protection on social welfare is ambiguous, depending on the strength of status preference. Moreover, wealth inequality widens as patent protection is reinforced. Finally, by using cross-section regression analysis, we document that a nonmonotonic relationship between patent protection and economic growth is statistically significant and that the growth-rate-maximizing degree of patent protection decreases with the strength of status preference.

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