Found 1292 article(s) in category 'Economic Growth'

Twenty Years of Time Series Econometrics in Ten Pictures

Twenty Years of Time Series – Econometrics in Ten Pictures. James Stock, Spring 2017, Paper, “Twenty years ago, empirical macroeconomists shared some common understandings. One was that a dynamic causal effect—for example, the effect on output growth of the Federal Reserve increasing the federal funds rate—is properly conceived as the effect of a shock, that is, of an unanticipated autonomous change linked to a specific source. Following Sims (1980), the use of vector autoregressions to estimate the dynamic causal effect of shocks on economic variables was widespread.Link

Tags: , , , ,

Structural Transformation: A competitiveness-based view

Structural Transformation: A competitiveness-based view. Christian Ketels, 2017, “The research on competitiveness aims to enhance our understanding of the drivers of prosperity differences across locations, focusing especially on aspects that can inform policy to support higher levels of prosperity (Porter, 1990; Porter, 2000; Delgado et al., 2013). This chapter outlines key elements of the competitiveness framework, and discusses how it relates to the idea of structural transformation.Link

Tags: , , , , ,

Inconvenient Truths About the US Trade Deficit

Inconvenient Truths About the US Trade Deficit. Martin Feldstein, April, 25, 2017, Opinion, “The United States has a trade deficit of about $450 billion, or 2.5% of GDP. That means that Americans import $450 billion of goods and services more than they export to the rest of the world. What explains the enormous US deficit year after year, and what would happen to Americans’ standard of living if it were to decline?Link

Tags: , , , ,

How to Renegotiate NAFTA

How to Renegotiate NAFTA. Kenneth Rogoff, April 24, 2017, Opinion, “US President Donald Trump’s administration says that it is sticking with its campaign promise to renegotiate the North American Free Trade Agreement. Indeed, Trump has now reiterated his intention to invoke the procedures for renegotiating NAFTA soon (within “the next two weeks”), triggering a 90-day consultation period with the US Congress, before talks with Mexico and Canada commence. Assuming that happens – a very big if – it is worth asking how renegotiation could be done right.Link

Tags: , , ,

How Best to Tax Business

How Best to Tax Business. N. Gregory Mankiw, April 23, 2017, Opinion, “The details of the tax code may not make your heart sing, but they are enormously important and, at long last, they may be changing. In fact, the next 12 months are shaping up to be a critically important time.  Despite an uneven start, tax reform is on the agenda in Congress. And the ideas being considered, especially regarding business taxation, are not mere tweaks to our ossified system. They would profoundly alter how the government raises money and upend the incentives for private decision makers. This is fascinating to tax policy nerds like me. But it is important for everyone to understand.Link

Tags: , , , , , ,

Reforming land use regulations

Reforming land use regulations. Edward Glaeser, April 22, 2017, Opinion, “Arguably, land use controls have a more widespread impact on the lives of ordinary Americans than any other regulation. These controls, typically imposed by localities, make housing more expensive and restrict the growth of America’s most successful metropolitan areas. These regulations have accreted over time with virtually no cost-benefit analysis. Restricting growth is often locally popular. Promoting affordability is hardly a financially attractive aim for someone who owns a home. Yet the maze of local land use controls imposes costs on outsiders, and on the American economy as a whole.Link

Tags: , , ,

Why the U.S. Is Still Richer Than Every Other Large Country

Why the U.S. Is Still Richer Than Every Other Large Country. Martin Feldstein, April 20, 2017, Opinion, “Each year, the United States produces more per person than most other advanced economies. In 2015 real GDP per capita was $56,000 in the United States. The real GDP per capita in that same year was only $47,000 in Germany, $41,000 in France and the United Kingdom, and just $36,000 in Italy, adjusting for purchasing power. In short, the U.S. remains richer than its peers. But why?Link

Tags: , , ,

Household Matters: Revisiting the Returns to Capital among Female Micro-entrepreneurs

Household Matters: Revisiting the Returns to Capital among Female Micro-entrepreneurs. Rohini Pande, April 17, 2017, Paper, “Several field experiments find positive returns to grants for male and not female microentrepreneurs. But, these analyses largely overlook that male and female micro-entrepreneurs often belong to the same household. Using data from randomized trials in India, Sri Lanka and Ghana, we show that the gender gap in microenterprise performance is not due to a gap in aptitude. Instead, low average returns of female-run enterprises are observed because women’s capital is invested into their husbands’ enterprises rather than their own. When women are the sole household enterprise operator, capital shocks lead to large increases in profits. Household-level income gains are equivalent regardless of the grant or loan recipient’s gender.” Link

Tags: , , , , , , ,

Multinational Activity in Emerging Markets: How and When Does Foreign Direct Investment Promote Growth?

Multinational Activity in Emerging Markets: How and When Does Foreign Direct Investment Promote Growth? Laura Alfaro, 2017, Paper, “Among the prominent economic trends in recent decades is the exponential increase in flows of goods and capital driven by technological progress and falling of restrictions. A key driver of this phenomenon has been the cross-border production, foreign investment, and trade both final and intermediate goods by multinational corporations. Research has sought to understand how foreign direct investment (FDI) affects host economies. This paper reviews the main theories and empirical evidence of two streams of literature: the mechanisms by which multinational activity might create positive effects and externalities to countries and the role of complementary local conditions, also known as “absorptive capacities,” that allow a country to reap the benefits of FDI paying particular attention to the role of factor markets, reallocation effects, and the linkages generated between foreign and domestic firms.Link

Tags: , , ,

Uber Shows How Not to Apply Behavioral Economics

Uber Shows How Not to Apply Behavioral Economics. Francesca Gino, April 13, 2017, Case, “A recent New York Times article on how Uber is using various insights from behavioral economics to push, or nudge, its drivers to pick up more fares — sometimes with little benefit to them — has generated quite a bit of criticism of Uber. It’s just one of several stories of late that have cast the company in a poor light.Link

Tags: , ,