BUSINESS CYCLES WITH PERIODIC SHOCKS IN A MULTI-COUNTRY AND MULTI-REGIONAL NEOCLASSICAL GROWTH MODEL
Journal Title: Asian Economic and Financial Review - Year 2017, Vol 7, Issue 7
Abstract
This paper generalizes the global economic growth model with any number of countries and each country with any number of regions recently proposed by Zhang (2016). Zhang?s model extends Uzawa?s two-sector growth model to a global economy for examining dynamic interactions between international trade, national and global growth, interregional migration, wealth accumulation and regional amenities. This study generalizes Zhang?s model by allowing all the time-independent parameters to be time-dependent. The generalization makes it possible to examine effects of any types of exogenous time-dependent shocks on the dynamic system cross regions and countries over time. We simulate the model with three countries and each country with two regions. We demonstrate the existence of equilibrium point and confirm (local) stability of the equilibrium point when all the parameters are time-independent. We conduct comparative dynamic analysis with regard to exogenous periodic shocks in the total factor productivity of regions? capital good sectors, the total factor productivities of the service sectors, the propensity to save, the amenity parameters, and the propensity to consume housing. Our comparative analysis shows how business cycles are generated by periodic exogenous shocks.
Authors and Affiliations
Wei-Bin Zhang| Ritsumeikan Asia Pacific University, Japan
Keywords
Related Articles
- EP ID EP2404
- DOI -
- Views 698
- Downloads 74
INTERDEPENDENCE OF SOUTH ASIAN & DEVELOPED STOCK MARKETS AND THEIR IMPACT ON KSE (PAKISTAN)
The objective of this study was to investigate the interdependence among the South Asian and developed markets and their impact on Karachi Stock Exchange. The data were collected from eight worldly stock exchanges, four...
DEPENDENCE OF REAL ESTATE AND EQUITY MARKETS IN CHINA WITH THE APPLICATION OF COPULA
This paper examines the dynamic dependence and extreme co-movements between real estate and equity markets in China. We illustrate these ideas in simple empirical settings, implementing the relatively techniques from cop...
THE ESTIMATION OF THE SHARE OF TECHNOLOGICAL SPILLOVER IN SECTORIAL-REGIONAL GROWTH (CASE STUDY: 29 PRODUCTION SECTORS OF 30 IRAN PROVINCES)
The main goal of this Research is the estimation of the share of technological spillover in sectorial-regional Growth. At first, a brief literature about growth and technological spillover are presented, and then the pro...
Effect of Workers’ Remittances on Private Savings Behavior in Pakistan
The study empirically examined the macroeconomic impact of remittances onprivate savings in Pakistan by applying the ARDL Bounds Testing Approach of cointegration by using annual time series data for 1973-2007.It also an...
HOW NEWSPAPER-ARTICLE-EVENTS, OTHER STOCK MARKET INDICES, AND THE FOREIGN CURRENCY RATE AFFECT THE PHILIPPINE STOCK MARKET
Eugene Fama in his “Efficient Market Hypothesis” introduced the term newspaper-article-event. The aim of this paper is to find out if newspaper-article-events which are presented and discussed in newspaper articles and w...