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 753
- Downloads 74
PREDICTIVE ANALYTICS IN CAPITAL MARKETS
The paper is a practical application of the random walk model on stock price behaviour. The academic literature has moved beyond this random walk approach and the recent focus is now much more on how to improve the forec...
MUSLIM WOMEN ENTREPRENEURS’ MOTIVATION IN SMES: A QUANTITATIVE STUDY IN ASIA PACIFIC COUNTRIES
Women occupy nearly half of the working population. However, there are too many challenges for them to get engaged into a job as they have to sacrifice their time with their family. It is a norm and tradition for Asian P...
BARRİERS TO ENTRY AND TWO-SİDED MARKETS: A RESEARCH IN A SHOPPİNG MALL İN ISTANBUL
Two-sided markets are the new issues in economic theory and have been studied since the beginning of the 21th century. Barriers to entry are also important to provide a balanced full competition condition in markets. Gen...
A STUDY ON TAIWAN’S BOND MARKET INTEGRITY AND MARKET TIMING ABILITY - BASED ON THE ARMAX-GARCH MODEL
Due to the market’s integrity and lack of liquidity of Taiwan’s bond market, a bond manager finds it difficult to flexibly adjust portfolio allocation and systemic risk. No matter in the T-M model, T-M ARMAX-GARCH model,...
DOES INSTITUTIONAL QUALITY STRENGTHEN THE POSITIVE INFLUENCE OF OFFSHORE R&D STRATEGY ON THE FIRM PRODUCTIVITY?
The purpose of this study is to examine whether the host country?s institutional quality has a significant moderating effect on the relationship between the offshore R&D strategy in the local environment and firm product...