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 699
- Downloads 74
A STUDY OF CORPORATE WEB-BASED REPORTING IN HOTEL INDUSTRY
This study investigates the web-based reporting of Indian hotel industry and analyzes the pattern and determinants influencing the web-based reporting. Content analysis has been carried out for exploring dissemination of...
AN ANALYSIS FOR CREDIT RATING AND MOMENTUM STRATEGY
In recent years, investors are increasingly concerned about whether the credit risk will affect the return on investment. This paper discusses the credit rating and momentum investment strategy relationship. The research...
DETERMINANTS OF SAVINGS AND CAPITAL FORMATION AMONG RURAL FARMERS IN ISOKO NORTH LOCAL GOVERNMENT AREA OF DELTA STATE, NIGERIA
This study examined the determinants of savings and capital accumulation in Isoko north local government area of Delta state, Nigeria. It specifically sought to identify the socioeconomic/demographic variables of the rur...
THE STUDY OF STAFF SATISFACTION IN CONSULTING CENTER SYSTEM—A CASE STUDY OF JOB CONSULTING CENTERS IN HO CHI MINH CITY, VIETNAM
The topic of job satisfaction has been investigated over the years. However, the environmental impact of the work of job consulting centre?s employee satisfaction is beginning to attract the attention of the researcher....
FOREIGN DIRECT INVESTMENT DECISIONS INTO CHINA AND INDIA
We investigate the foreign direct investment projects of the multinational companies into the two major BRIC countries: India and China. Our results indicate that wage levels and country population and GDP growth are the...