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Saturday, May 16, 2020 | History

4 edition of theory of aggregate investment and output dynamics in open economic systems found in the catalog.

theory of aggregate investment and output dynamics in open economic systems

by K. K. Dompere

  • 176 Want to read
  • 26 Currently reading

Published by Greenwood Press in Westport, Conn .
Written in English

    Subjects:
  • Saving and investment.

  • Edition Notes

    Includes bibliographical references (p. 147-185) and index.

    StatementKofi Kissi Dompere.
    SeriesContributions in economics and economic history,, no. 204
    Classifications
    LC ClassificationsHB843 .D658 1999
    The Physical Object
    Paginationxi, 191 p. :
    Number of Pages191
    ID Numbers
    Open LibraryOL361532M
    ISBN 100313307946
    LC Control Number98021666

    Investment can be transformed into future consumption with an increasing and concave production function. The price, which corresponds to the gross return to savings, determines investment and this model behaves exactly as the basic model. In Section4, we add a labor market to the basic model of Section3to provide a richer mode of aggregate supply. concepts of savings, investment and economic growth first. Concepts of Savings, Investment and Econ omic Growth In a narrow sense, saving generally means putting money aside, for example.

    Economic Instability and Aggregate Investment Robert S. Pindyck, Andres Solimano. NBER Working Paper No. Issued in June NBER Program(s):Economic Fluctuations and Growth A recent literature suggests that because investment expenditures are irreversible and can be delayed, they may be highly sensitive to uncertainty. Increases in aggregate supply conversely give rise to high economic growth and low inflation Recession a period during which real GDP decreases (i.e., negative growth) for at least two successive quarters, or a period of significant decline in total output, income, employment, and sales usually lasting from 6 months to a year.

    An economic system, or economic order, is a system of production, resource allocation and distribution of goods and services within a society or a given geographic includes the combination of the various institutions, agencies, entities, decision-making processes and patterns of consumption that comprise the economic structure of a given community. RBC Methodology and the Development of Aggregate Economic Theory. Edward C. Prescott. Summary. This essay reviews the development of neoclassical growth theory, a unified theory of aggregate economic phenomena that was first used to study business cycles and aggregate labor by: 1.


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Theory of aggregate investment and output dynamics in open economic systems by K. K. Dompere Download PDF EPUB FB2

The Theory of Aggregate Investment and Output Dynamics in Open Economic Systems. by Kofi Kissi Dompere. Develops a theory of aggregate investment, optimal capital, and output dynamics for open economic systems under neo-Keynesian conditions.

Building on his companion volume on closed economic systems, Dompere develops a theory of aggregate investment, optimal capital, and output dynamics for open economic systems under neo-Keynesian Read more.

The aim of this book is to teach topics in economic dynamics such as simulation, sta-bility theory, and dynamic programming. The focus is primarily on stochastic systems in discrete time. Most of the models we meet will be nonlinear, and the emphasis is on getting to grips with nonlinear systems in their original form, rather than usingFile Size: 2MB.

In macroeconomics, aggregate demand (AD) or domestic final demand (DFD) is the total demand for final goods and services in an economy at a given time. It is often called effective demand, though at other times this term is is the demand for the gross domestic product of a country.

It specifies the amount of goods and services that will be purchased at all possible price levels. I first read Blatt's Dynamic Economic Systems when doing my Masters degree at the University of New South Wales in the late s. I regarded it then, and still regard it today, as the best and clearest explanation of dynamics in economics ever written.

It was out of print for decades, during which time I kept a scanned copy of it on my website.5/5(1). The level of output is determined by both the aggregate supply and aggregate demand within an economy. National output is what makes a country rich, not large amounts of money.

For this reason, understanding the fluctuations in economic output is critical for long term growth. The aggregate demand of an open economy is given by the after-tax domestic consumption C, the investment I (which depends on the interest rate r), the government spending G and net exports X − M: c ₀ is autonomous consumption, c ₁ is the marginal propensity to consume, and m is the marginal propensity to import.

The Theory of Aggregate Investment in Closed Economic Systems (Contributions in Economics and Economic History) [Kofi Kissi Dompere] on *FREE* shipping on qualifying offers.

The Theory of Aggregate Investment in Closed Economic Systems (Contributions in Economics and Economic History)Author: Kofi Kissi Dompere. Economic Instability and Aggregate Investment. are indeed doomed to fail. This would make it important to understand how investment depends on risk factors at least partly under govern- ment control, e.g., price, wage, and exchange rate stability, the threat of price controls or expropriation, and changes in trade regimes.

Economic Instability and Aggregate Investment - are indeed doomed to fail. This would make it important to understand how investment depends on risk factors at least partly under govern-ment control, e.g., price, wage, and exchange rate stability, the threat of price controls or expropriation, and changes in trade regimes.

The theory of economic development is a branch of economic dynamics. Any discussion of the theory must involve dynamics even though not all dynamic problems are necessarily related to economic development. The theory's primary locus is upon the nice paths of economic variables. Stationary states, which have been the main concern of modem Format: Paperback.

1 Introduction. Recent theoretical analyses of investment under uncertainty have highlighted the effects of irreversibility in generating “real options” ( and Pindyck, ).In these models, uncertainty increases the separation between the marginal product of capital which justifies investment and the marginal product of capital which justifies by: A theory of aggregate economic fluctuations called real business cycle theory holds that Real business cycle theory This theory views shocks to tastes (workers" willingness to work, for example) and technology (productivity) as the major driving forces behind short-run fluctuations in the business cycle because these shocks lead to substantial.

Downloadable. In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms facing stochastic fixed adjustment costs.

Instead of the standard sharp (S,s) bands, firms' adjustment policies take the form of a probability of adjustment (adjustment hazard) that responds smoothly to changes in firms' capacity gap.

If aggregate supply is vertical, then aggregate demand does not affect the quantity of output. Instead, aggregate demand can only cause inflationary changes in the price level.

A vertical aggregate supply curve, where the quantity of output is consistent with many different price levels, also implies a. The Theory of Aggregate Investment and Output Dynamics in Open Economic Systems (Hardback) Kofi Kissi Dompere £ Hardback.

We develop a Keynesian model of aggregate consumption. Our theory emphasizes the importance of the relative income hypothesis and debt finance for understanding household consumption behavior.

It is shown that particular importance attaches to how net debtor households service their debts, and that the treatment of debt-servicing commitments as a substitute for savings by these Cited by: Input-Output Analysis: Features, Static and Dynamic Model.

Input-output is a novel technique invented by Professor Wassily W. Leontief in It is used to analyse inter-industry relationship in order to understand the inter-dependencies and complexities of the economy and thus the conditions for maintaining equilibrium between supply and demand.

Downloadable. We study aggregate fluctuations in an economy where firms have persistent differences in total factor productivity, capital and debt or financial assets. Investment is funded by retained earnings and non-contingent debt. Firms may default upon loans, and this risk leads to a unit cost of borrowing that rises with the level of debt and falls with the value of collateral.

His teaching areas include Economic Theory, International Economics, and Mathematical Economics. His current research focus is on Macroeconomics of Development Process, Economic Dynamics, Mathematics, and Epistemics on fuzzy phenomena and their applications in economic decisions and decision analysis in general.

the main motivation behind this dissertation, that consists of four essays on the theory and empirics of aggregate business investment.

While the investigation of the determinants of aggregate investment is the trait d’union linking these essays, the thesis also intersects two other strands of literature.History. John Maynard Keynes in The General Theory of Employment, Interest and Money argued during the Great Depression that the loss of output by the private sector as a result of a systemic shock (the Wall Street Crash of ) ought to be filled by government spending.

First, he argued that with a lower ‘effective aggregate demand’, or the total amount of spending in the economy.The main challenges for macroeconomic theory are to explain the long-term economic growth and the short-term business fluctuations observed in the real world.

This book offers an Aggregate Demand and Aggregate Supply in the Open Economy | The Case Centre, for educators.