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Dynamic Efficiency
In economics, dynamic efficiency is achieved when an economy invests less than the return to capital; conversely, dynamic inefficiency exists when an economy invests more than the return to capital. In dynamic efficiency, it is impossible to make one generation better off without making any other generation worse off. It is closely related to the notion of "golden rule of saving". In relation to markets, in industrial economics, a common argument is that business concentrations or monopolies may be able to promote dynamic efficiency. Are modern economies dynamically efficient? Abel, Mankiw, Summers, and Zeckhauser (1989) develop a criterion for addressing dynamic efficiency and apply this model to the United States and other OECD countries, suggesting that these countries are indeed dynamically efficient. In the Solow growth model An economy in the Solow growth model is dynamically inefficient if the savings rate exceeds the Golden Rule savings rate. If the savings rate i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Capital (economics)
In economics, capital goods or capital are "those durable produced goods that are in turn used as productive inputs for further production" of goods and services. A typical example is the machinery used in a factory. At the macroeconomic level, "the nation's capital stock includes buildings, equipment, software, and inventories during a given year." The means of production is as a "... series of heterogeneous commodities, each having specific technical characteristics ..." "capital goods", are one of the three types of intermediate goods used in the production process, the other two being land and labour. The three are also known collectively as "primary factors of production". This classification originated during the classical economics period and has remained the dominant method for classification. Capital can be increased by the use of a production process (see production function and factors of production). Outputs of the production process are normally classif ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Industrial Economics
In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. It analyzes determinants of firm and market organization and behavior on a continuum between competition and monopoly, including from government actions. There are different approaches to the subject. One approach is descriptive in providing an overview of industrial organization, such as measures of competition and the size-concentration of firms in an industry. A second approach uses microeconomic models to explain internal firm organization and market strategy, which includes internal research and development along with issues of internal reorganization and renewal. A ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monopolies
A monopoly (from Greek and ) is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic competition to produce a particular thing, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb ''monopolise'' or ''monopolize'' refers to the ''process'' by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices, which is associated with unfair price raises. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market). A monopoly may also have monopsony control of a sector of a market. A mono ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
OECD
The Organisation for Economic Co-operation and Development (OECD; , OCDE) is an international organization, intergovernmental organization with 38 member countries, founded in 1961 to stimulate economic progress and international trade, world trade. It is a forum (legal), forum whose member countries describe themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices, and coordinate domestic and international policies of its members. The majority of OECD members are generally regarded as developed country, developed countries, with High-income economy, high-income economies, and a very high Human Development Index. their collective population is 1.38 billion people with an average life expectancy of 80 years and a median age of 40, against a global average of 30. , OECD Member countries collectively comprised 62.2% of list of countries by GDP (nominal), global nom ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Solow Growth Model
Solow is a surname. Notable people with the surname include: * Alan Solow, American lawyer and Jewish leader * Herbert Solow (journalist) (1903–1964), American journalist * Herbert Franklin Solow (1931–2020), American producer, director, studio executive, talent agent, and writer * Jeffrey Solow (born 1949), American cello virtuoso * Jennifer Solow, American novelist * Robert Solow (1924–2023), American economist, winner of the Nobel Prize in Economics * Sheldon Solow (1928–2020), American real estate mogul and billionaire See also * Solow (horse), a Thoroughbred racehorse * The Solow Building, a Manhattan skyscraper * SoLow Solow is a surname. Notable people with the surname include: * Alan Solow, American lawyer and Jewish leader * Herbert Solow (journalist) (1903–1964), American journalist * Herbert Franklin Solow (1931–2020), American producer, director, studio ..., Dutch retailer {{surname Slavic-language surnames Surnames of Jewish origin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Golden Rule Savings Rate
In economics, the Golden Rule savings rate is the rate of savings which maximizes steady state level of the growth of consumption, as for example in the Solow–Swan model. Although the concept can be found earlier in the work of John von Neumann and Maurice Allais, the term is generally attributed to Edmund Phelps who wrote in 1961 that the golden rule "do unto others as you would have them do unto you" could be applied inter-generationally inside the model to arrive at some form of "optimum", or put simply "do unto future generations as we hope previous generations did unto us."Origin of the term described at newschool.edu In the Solow growth model, a steady state savings rate of 100% implies that all income is going to investment |
Overlapping Generations Model
The overlapping generations (OLG) model is one of the dominating frameworks of analysis in the study of macroeconomic dynamics and economic growth. In contrast to the Ramsey–Cass–Koopmans model, Ramsey–Cass–Koopmans neoclassical growth model in which individuals are infinitely-lived, in the OLG model individuals live a finite length of time, long enough to overlap with at least one period of another agent's life. The OLG model is the natural framework for the study of: (a) the life-cycle behavior (investment in human capital, work and Retirement plan, saving for retirement), (b) the implications of the resource allocation, allocation of resources across the generations, such as Social security, Social Security, on the income per capita in the long-run, (c) the determinants of economic growth in the course of human history, and (d) the factors that triggered the Demographic transition, fertility transition. History The construction of the OLG model was inspired by Irvin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Theory Of Fructification
In economics, the theory of fructification is a theory of the interest rate which was proposed by French economist and finance minister Anne Robert Jacques Turgot. The term ''theory of fructification'' is due to Eugen von Böhm-Bawerk who considered Turgot as the first economist who tried to develop a scientific explanation of the interest rate. According to Turgot, a capitalist can either lend his money, or employ it in the purchase of a plot of land. Because fruitful land yields an annual rent forever, its price is given by the formula of a perpetual annuity: If ''A'' denotes the land's annual rent and ''r'' denotes the interest rate, the land price is simply ''A''/''r''. From this formula, Turgot concluded that "the lower the interest rate, the more valuable is the land." Specifically, if the interest rate approached zero, the land price would become infinite. Because land prices must be finite, it follows that the interest rate is strictly positive. Turgot argued also that th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stefan Homburg
Stefan Homburg (born March 10, 1961) is a German retired professor of economics. He was the director of the Institute of Public Finance at the University of Hannover, Lower Saxony, Germany until his early retirement in 2021. Outside academia he is best known for his controversial statements regarding the COVID-19 pandemic. Homburg studied economics, philosophy, and mathematics at the Cologne University, where he graduated with a degree in economics in 1985, followed by a doctoral degree in 1987. Subsequently, he was Professor of Economics at University of Bonn and University of Magdeburg, before he moved to Hanover. Homburg's research focused on macroeconomics and public finance. He has co-authored a textbook in macroeconomics. Other publications address topics in monetary policy, social security, tax law, and business taxation. Homburg served as a member of several policy committees, including the Advisory Council at the Federal Ministry of Finance, the Federal Constitutional Co ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
