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Westfailure those with political authority are inherently unable to see that socio-economic polarisation is not in anyone’s long-term interest." Under these conditions, Strange warns that there is little accountability for environmental degradation and that the socioeconomic polarization of rich and poor countries has ... | https://en.wikipedia.org/wiki?curid=32496876 |
Westfailure She elaborates on this point, stating that: "The common factor in all the stricken economies was an influx of mobile short-term capital, too much of which went in ill-considered speculative loans or in unproductive real-estate investments." However, the author does not put all of the fault on the IMF and BI... | https://en.wikipedia.org/wiki?curid=32496876 |
Westfailure While financial failure is mentioned first, Strange argues that this aspect of her argument requires the most immediate attention from international relations scholars and political actors. Strange argues this is because, historically, market economies have been able to endure and 'bounce back' from several... | https://en.wikipedia.org/wiki?curid=32496876 |
Westfailure Essentially, the Westphalian system fragments the environment into territorial limits, but does not take into consideration how degradation within those territorial limits affect the global environment as a whole, similar to a domino effect. Strange argues that this is exasperated under capitalism, as state... | https://en.wikipedia.org/wiki?curid=32496876 |
Westfailure This can be readily explained by the balance of power in international relations theory. | https://en.wikipedia.org/wiki?curid=32496876 |
Journal of Economic Behavior and Organization The is an academic journal published by Elsevier. The journal is abstracted and indexed in the Social Sciences Citation Index. According to the "Journal Citation Reports", the journal has a 2014 impact factor of 1.297, ranking it 97th out of 333 journals in the category "Ec... | https://en.wikipedia.org/wiki?curid=32538601 |
Sliding wage scale The sliding wage scale consists in increasing the wages as the prices rise in order to maintain the purchasing power of the workers even if there is inflation. The sliding wage scale was introduced in France in July 1952 under the president Vincent Auriol (SFIO) in the administration Antoine Pinay (R... | https://en.wikipedia.org/wiki?curid=32547627 |
Breadth of market is an indicator used in security analysis. In its simplest form it is computed on a stock market by taking the ratio of the number of advancing stocks to declining stocks. | https://en.wikipedia.org/wiki?curid=32549954 |
Rational herding In economics and finance, rational herding is a situation in which market participants react to information about the behavior of other market agents or participants rather than the behavior of the market, and the fundamental transactions. An account cited that rational herding is an unintended consequ... | https://en.wikipedia.org/wiki?curid=32550745 |
European Economic Review The is a peer-reviewed academic journal that covers research in economics. The journal was established in 1969 and the five main editors are: Theo S. Eicher, (University of Washington); Ayse İmrohoroğlu, (University of Southern California); Eric M. Leeper, (Indiana University); Jörg Oechssler, ... | https://en.wikipedia.org/wiki?curid=32551839 |
Journal of Banking and Finance The is a peer-reviewed academic journal covering research on financial institutions, capital markets, and topics in investments and corporate finance. In 1989 the journal absorbed "Studies in Banking & Finance". A 2011 study ranked it among six elite finance journals. It publishes theoret... | https://en.wikipedia.org/wiki?curid=32552874 |
Journal of Macroeconomics The is a peer-reviewed academic journal established in 1979 that covers research on a broad range of issues in monetary economics and macroeconomics, including economic growth, fluctuations, fiscal policy, and macroeconomic forecasting. The current editors are William D. Lastrapes, professor o... | https://en.wikipedia.org/wiki?curid=32553187 |
Review of Economic Design The is a peer-reviewed academic journal that covers research on economic design. The journal covers topics that range from the application of normative economics to the strategic analysis of game theory, as well as novel ideas on the use of legal-economic instruments such as the assignments of... | https://en.wikipedia.org/wiki?curid=32553300 |
Money disorder Money disorders are the maladaptive patterns of financial beliefs and behaviors that lead to clinically significant distress, impairment in social or occupational functioning, due to financial strain or an inability to appropriately enjoy one's financial resources. With the exception of pathological gamb... | https://en.wikipedia.org/wiki?curid=32595633 |
Money disorder The end result is that most of these people feel ashamed of their behaviors and hide them from others, hence making it difficult for them to get help as needed. Prince Charming Syndrome People who suffer prince charming syndrome have the need to wait on an outside source of financial income to come to sa... | https://en.wikipedia.org/wiki?curid=32595633 |
Money disorder , having persistent thoughts of reliving past gambling experiences, handicapping or planning the next venture, thinking of ways to get money with which to gamble),Often gambles when feeling distressed (e.g., helpless, guilty, anxious, depressed), After losing money gambling, often returns another day to ... | https://en.wikipedia.org/wiki?curid=32595633 |
Money disorder Cognitive-behavioral therapy This treatment can help the individual develop self-esteem independency from their possessions. Treatment involving CBT has been shown to be effective in reducing compulsive symptoms. Seeking a psychologist to treat these symptoms have been related to a subcategory of OCD, wh... | https://en.wikipedia.org/wiki?curid=32595633 |
List of Latin American economic crises There are Latin American economic crises: | https://en.wikipedia.org/wiki?curid=32665683 |
Aquila Capital is the alternative asset management division of the Aquila Group, an independent company that specializes in asset management and investment services for institutional and private investors. The company was founded by Roman Rosslenbroich and Dieter Rentsch in 2001. Aquila Group’s headquarters are in Hamb... | https://en.wikipedia.org/wiki?curid=32683473 |
Yaron Zelekha (, born July 20, 1970) is an Israeli economist. He was an Israeli Ministry of Finance accountant general during 2003–2007. He was a key witness, according to state comptroller's office, who testified against Ehud Olmert in his role of finance minister in a case of alleged bribery during the sale of the Ba... | https://en.wikipedia.org/wiki?curid=32684613 |
Robinson Crusoe economy A is a simple framework used to study some fundamental issues in economics. It assumes an economy with one consumer, one producer and two goods. The title "Robinson Crusoe" is a reference to the 1719 novel of the same name authored by Daniel Defoe. As a thought experiment in economics, many inte... | https://en.wikipedia.org/wiki?curid=32690625 |
Robinson Crusoe economy Although in the novel he plays the role of Crusoe's servant, in the he is considered as another actor with equal decision making abilities as Crusoe. Along with this, conditions of Pareto efficiency can be analysed by bringing in the concept of the Edgeworth box. Similar to the choices that hous... | https://en.wikipedia.org/wiki?curid=32690625 |
Robinson Crusoe economy The point at which Crusoe will reach an equilibrium between the number of hours he works and relaxes can be found out when the highest indifference curve is tangent to the production function. This will be Crusoe's most preferred point provided the technology constraint is given and cannot be ch... | https://en.wikipedia.org/wiki?curid=32690625 |
Robinson Crusoe economy As a worker of the firm, Crusoe will collect wages, as a shareholder, he will collect profits and as a consumer, he will decide how much of the firm's output to purchase according to his income and the prevailing market prices. Let's assume that a currency called "Dollars" has been created by Ro... | https://en.wikipedia.org/wiki?curid=32690625 |
Robinson Crusoe economy As a consumer, Crusoe will have to decide how much to work (or indulge in leisure) and hence consume. He can choose to not work at all, since he has an endowment of Π dollars from being a shareholder. Let us instead consider the more realistic case of him deciding to work for a few hours. His la... | https://en.wikipedia.org/wiki?curid=32690625 |
Robinson Crusoe economy In other words, using the market system has the same outcome as choosing the individual utility maximisation and cost minimisation plans. This is an important result when put into a macro level perspective because it implies that there exists a set of prices for inputs and outputs in the economy... | https://en.wikipedia.org/wiki?curid=32690625 |
Robinson Crusoe economy It is crucial to note that the shape of the PPF depends on the nature of the technology in use. Here, technology refers to the type of returns to scale prevalent. In figure 6, the underlying assumption is the usual decreasing returns to scale, due to which the PPF is concave to the origin. In ca... | https://en.wikipedia.org/wiki?curid=32690625 |
Robinson Crusoe economy The MRT is thus, Under this section, the possibility of trade is introduced by adding another person to the economy. Suppose that the new worker who is added to the has different skills in gathering coconuts and hunting fish. The second person is called "Friday". Friday can produce 8 pounds of f... | https://en.wikipedia.org/wiki?curid=32690625 |
Robinson Crusoe economy If fish production is to be increased beyond this point, Crusoe will have to start hunting fish. Here onward, the slope of the joint PPF is −2. If we want to produce only fish, then the economy will have 144 pounds of fish, 48 from Crusoe and 96 from Friday. Thus the joint PPF is kinked because ... | https://en.wikipedia.org/wiki?curid=32690625 |
Robinson Crusoe economy Thus, there is a way to make Friday better off by rearranging the production pattern. Thus for Pareto efficiency, This can be achieved in a competitive market by decentralising production and consumption decisions, i.e. Crusoe and Friday will both solve their own problems of how much to consume ... | https://en.wikipedia.org/wiki?curid=32690625 |
ClearCheckbook.com is a freemium, web-based personal money management tool created by Brandon O'Brien. ClearCheckbook was originally conceived as a way to reconcile bank account transactions with "actual" spending (a process called "jiving" in ClearCheckbook lingo). Since its launch in May 2006, the application has und... | https://en.wikipedia.org/wiki?curid=32717006 |
Phased implementation is a method of System Changeover from an existing system to a new one that takes place in stages. As an example, think of a supermarket. In this supermarket the checkout system is being upgraded to a newer version. Imagine that only the checkout counters of the vegetable section are changed over t... | https://en.wikipedia.org/wiki?curid=32730583 |
Breakup fee A breakup fee (sometimes called a termination fee) is a penalty set in takeover agreements, to be paid if the target backs out of a deal (usually because it has decided instead to accept a more attractive offer). The breakup fee is ostensibly to compensate the original acquirer for the cost of the time and ... | https://en.wikipedia.org/wiki?curid=32764168 |
Facilitation board (economics) A facilitation board is a proposed economic institution conceived by economists Michael Albert and Robin Hahnel which act in systems of economic democracy as agencies that facilitate information exchange and processing for collective consumption proposals and for large-scale investment pr... | https://en.wikipedia.org/wiki?curid=32811139 |
Facilitation board (economics) Democratic participatory planning is an economic practice used to determine the production, consumption, and allocation of resources, goods, and services in a given economy and recommended as a solution to the problems seen in both statist central planning within state-socialism and priva... | https://en.wikipedia.org/wiki?curid=32811139 |
Facilitation board (economics) During an event known as a planning procedure, which could be an annual, bi-annual or quarterly event, facilitation boards first announce a set of indicative prices which workers and consumers use, individually and through their councils at each level, when deciding on their production an... | https://en.wikipedia.org/wiki?curid=32811139 |
Facilitation board (economics) At the same time, worker's councils and producers councils would respond with production proposals outlining the outputs they propose to produce and the inputs they believe are required to produce them. Individual workers would indicate their proposed hours of work, and workers will be ab... | https://en.wikipedia.org/wiki?curid=32811139 |
Facilitation board (economics) During the planning procedure, not only do the prices reflect proposed supply and demand, but also the social and ecological cost of producing the good. For instance a product that produces pollution in its manufacture, or is especially dangerous for workers to produce, would have its pri... | https://en.wikipedia.org/wiki?curid=32811139 |
Facilitation board (economics) It has been debated whether systems using only participatory planning would be able to change prices as demand changes and other factors modify the results of the participatory planning procedure. Albert and Hahnel have argued that this would be done efficiently. Facilitation boards could... | https://en.wikipedia.org/wiki?curid=32811139 |
Ragnar Nurkse's balanced growth theory The balanced growth theory is an economic theory pioneered by the economist Ragnar Nurkse (1907–1959). The theory hypothesises that the government of any underdeveloped country needs to make large investments in a number of industries simultaneously. This will enlarge the market s... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory No importance should be given to promoting exports. The size of a market assumes primary importance in the study of what induces investment in a country. Ragnar Nurkse referenced the work of Allyn A. Young to assert that inducement to invest is limited by the size of the market. T... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory He would prefer to invest in a developed country, where though the population is lesser than in underdeveloped countries, the people are prosperous and there is a definite demand. Private entrepreneurs sometimes resort to heavy advertising as a means of attracting buyers for their... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory On the other hand, developed countries have smaller populations than underdeveloped countries but by virtue of high levels of productivity, their per capita real incomes are higher and thus they create a large market for goods and services. Nurkse also refuted the claim that if a ... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory The logic was that once customs duties are removed, transport costs will fall. Consequently, prices will fall and thus the demand will rise. However, Nurkse, as an export pessimist, did not agree with this view. Export pessimism is a trade theory which is governed by the idea of "... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory This points to the need to increase output per unit input and "output per head". This can be done if the government provides irrigation facilities, high-yielding variety seeds, pesticides, fertilisers, tractors etc. The positive outcome of this is that farmers earn more income and... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory He stated that financing through increased trade or foreign investments was a strategy used in the past - the 19th century - and its success was limited to the case of the United States of America. In reality, the so-called "new countries" of the United States of America (which se... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory Another reason exports cannot be promoted is because in all likelihood, an underdeveloped country may only be skilled enough to promote the export of primary goods, say agricultural goods. However, since such commodities face inelastic demand, the extent to which they will sell in... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory However, most economists who favoured the balanced growth hypothesis believed that only the state has the capacity to take on the kind of heavy investments the theory propagates. Further, the gestation period of such lumpy investments is usually long and private sector entrepreneu... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory The various economic agents are temporarily unemployed and once the inducement to invest starts operating, the slump will be overcome. However, for an underdeveloped economy, where such resources are absent, this principle doesn't fit. Another contention was Nurkse's approval of S... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory However, both Nurkse and Rosenstein-Rodan only took into consideration the situation of industries that produce complementary goods. There are substitute goods too, which are in competition with each other. Thus if the state pumps in large investments into the car industry, for ex... | https://en.wikipedia.org/wiki?curid=32817141 |
Ragnar Nurkse's balanced growth theory However, the balanced growth theory involves the creation of a brand new, self-sufficient modern industrial economy being laid over a stagnant, self-sufficient traditional economy. Thus, there is no transformation. In reality, a dual economy will come into existence, where two sep... | https://en.wikipedia.org/wiki?curid=32817141 |
Banco Banespa "(Banco do Estado de São Paulo)" was a Brazilian regional bank, founded in 1909 by the state government of São Paulo. The bank was privatized in November 2000 by the government of former president Fernando Henrique Cardoso and sold to Spanish bank Santander. | https://en.wikipedia.org/wiki?curid=32820442 |
Sociedade Anónima Desportiva ("Public limited sports company") is a special type of public limited company (SA) in Portugal. The new legal status was introduced in the early 1990s to improve financial management and transparency in sports clubs. Many Portuguese football and basketball clubs add the suffix S.A.D. to the... | https://en.wikipedia.org/wiki?curid=32840753 |
Frictionless market In economic theory a frictionless market is a financial market without transaction costs. Friction is a type of market incompleteness. Every complete market is frictionless, but the converse does not hold. In a frictionless market the solvency cone is the halfspace normal to the unique price vector.... | https://en.wikipedia.org/wiki?curid=32880906 |
Porto Seguro S.A. Porto Seguro is the third largest Brazilian insurance company in Brazil, was founded in 1945 and has more than 13,000 employees. The company operates through its subsidiaries in Brazil and in Uruguay. It is headquartered in São Paulo. The company offers car insurance, residential, health, life, busine... | https://en.wikipedia.org/wiki?curid=32938155 |
African Tax Administration Forum The (ATAF) is an international organisation which provides a platform for cooperation among African tax authorities. First conceived during a meeting of 30 African tax commissioners with representatives of the Organisation for Economic Co-operation and Development in August 2008, it was... | https://en.wikipedia.org/wiki?curid=32943639 |
African Tax Administration Forum It also offers short courses on taxation and development in partnership with the International Centre for Tax and Development. In 2015, ATAF launched the African Tax Research Network (ATRN), which will hold an annual congress for researchers to share their work. In collaboration with th... | https://en.wikipedia.org/wiki?curid=32943639 |
Fowkes hypothesis The (after F. M. Fowkes) is a first order approximation for surface energy. It states the surface energy is the sum of each component's forces: γ=γ+γ+γ+... where γ is the dispersion component, γ is the polar, γ is the dipole and so on. The goes further making the approximation that the interface betwe... | https://en.wikipedia.org/wiki?curid=32974036 |
Low-level equilibrium trap The low-level equilibrium trap is a concept in economics developed by Richard R. Nelson, in which at low levels of per capita income people are too poor to save and invest much, and this low level of investment results in low rate of growth in national income. As per capita income rises above... | https://en.wikipedia.org/wiki?curid=32980445 |
Low-level equilibrium trap Second, net investment consists of saving-created capital plus additions to the amount of land under cultivation. Third, there is the population growth equation according to which in areas with low per-capita incomes short-run changes in the rate of population growth are caused by changes in ... | https://en.wikipedia.org/wiki?curid=32980445 |
Low-level equilibrium trap people live on past capital. However, when per capita income rises then savings also rises from zero level which leads to rise in the investment level in the economy. As there is continuous increase in the per capita income there is a rising proportion of total income saved and invested. When... | https://en.wikipedia.org/wiki?curid=32980445 |
Low-level equilibrium trap The phrases 'low level equilibrium trap' and 'vicious circle of poverty' have become popular in economic literature and so have the perceptions of getting out of these states like Big Push, Critical Minimum effort etc.. Most of the economists agree with Leibenstein that if the underdeveloped ... | https://en.wikipedia.org/wiki?curid=32980445 |
Low-level equilibrium trap The relation between investment and the resultant output is also not given by stable capital-output ratio, but depends on how far the productive organization of the country can be improved and how far land- savings innovations can be adopted to overcome the tendency to diminishing returns on ... | https://en.wikipedia.org/wiki?curid=32980445 |
Summer Palace Dialogue The (SPD) is an economic forum which brings together economists from both China and the United States to discuss economic cooperation between the two largest economies in the world. SPD is co-hosted by Chinese Economists 50 Forum and the Columbia Global Centers East Asia, and was formerly co-host... | https://en.wikipedia.org/wiki?curid=32985189 |
Summer Palace Dialogue economy, thus harming economic output and employment. Part of global rebalancing, participants said, was pushing the United States to greater export dependence, in line with President Obama's 2010 initiative to double U.S. net exports in five years. SPD economists and policymakers also assessed C... | https://en.wikipedia.org/wiki?curid=32985189 |
Summer Palace Dialogue In 2009 the economists at the discussed possible economic incentives which could slow down and stop climate change, especially in regards to the actions and policies of the United States and China. | https://en.wikipedia.org/wiki?curid=32985189 |
PEGNet was founded in 2005 as a joint initiative of the Kiel Institute for the World Economy, Germany's (Federal Ministry for Economic Cooperation and Development), its implementing agencies Deutsche Gesellschaft für Internationale Zusammenarbeit and KfW Entwicklungsbank as well as the universities of Göttingen and Fra... | https://en.wikipedia.org/wiki?curid=32997204 |
Universal Market Integrity Rules (UMIR) are the set of rules governing financial market integrity in Canada that are defined by the Investment Industry Regulatory Organization of Canada (IIROC). | https://en.wikipedia.org/wiki?curid=33005074 |
Joan Robinson's growth model Joan Robinson, in her book The Accumulation of Capital published in 1956, propagated a simple growth model, which reflects the working of a pure capitalist economy, also known as "Joan Robinson's Growth Model". However, the Accumulation of Capital was a terse book and in one of her other bo... | https://en.wikipedia.org/wiki?curid=33023836 |
Kaldor's growth model Nicholas Kaldor in his essay titled A Model of Economic Growth, originally published in Economic Journal in 1957, postulates a growth model, which follows the Harrodian dynamic approach and the Keynesian techniques of analysis. In his growth model, Kaldor attempts "to provide a framework for relat... | https://en.wikipedia.org/wiki?curid=33035523 |
Wheat Price Guarantee Act The was a 1919 bill passed by Congress that gave the government the power to regulate the price of wheat. At the start of the first World War, the US government passed the Lever [Food] Act (1917). This was done to conserve the food supply and increase its production in order to aid the efforts... | https://en.wikipedia.org/wiki?curid=33069700 |
Wheat Price Guarantee Act Similar to the Lever Act, the passage of this act allowed the US Government (specifically the president) to monitor wheat prices in order to guarantee farmers profits based on what they had expected them to be if the war had continued. The minimum price per bushel was set to $2.26, which is kn... | https://en.wikipedia.org/wiki?curid=33069700 |
Green microfinance is a financial service which tries to improve the environmental conditions by creating incentives for the poor. It provides the poor with microfinance that encourages them to use more sustainable environmental-friendly practices. | https://en.wikipedia.org/wiki?curid=33125610 |
Social preferences are a type of preferences studied in behavioral and experimental economics and social psychology. A person exhibits social preferences if he/she not only cares about his/her own material payoff, but also the reference group's payoff or/and the intention that leads to the payoff. Types of social prefe... | https://en.wikipedia.org/wiki?curid=33126028 |
Social preferences Hence, behavior that appears altruistic can align with the theory of the selfish gene. Kin selection can explain altruistic behavior towards close relatives even at the cost of their own's survival, as long as one's sacrifice can help preserve a greater amount of the same genes in close relatives. Fo... | https://en.wikipedia.org/wiki?curid=33126028 |
Social preferences For example, some researchers found a positive relation between the parent's use of induction and children's pro-social behavior, and others found no correlation between parent's adoption of punitive techniques and children's pro-social behavior. Regarding other sources of social learning, recent fie... | https://en.wikipedia.org/wiki?curid=33126028 |
Social preferences Ultimatum game is one of the first experiments that shows self-interest hypothesis fails to predict people's behavior. In this game, the first mover proposes a split of a fixed amount, and the second mover decides to accept or reject the offer. If the second mover accepts the offer, the final payoff ... | https://en.wikipedia.org/wiki?curid=33126028 |
Social preferences This amount is multiplied by a factor of "k" when it reaches the second mover, and then the second mover decides how much of this amount "(kb)" is returned to the first mover. While self-interest model predicts no transfer and no return, experimenters found that first mover typically transfers roughl... | https://en.wikipedia.org/wiki?curid=33126028 |
Social preferences For example, economists Uri Gneezy and John List conducted field experiments where subjects were hired for a typing job and for door-to-door fundraising and found subjects exerted larger effort level in group with a higher wage. However, this positive reciprocity was short lived. Researchers have als... | https://en.wikipedia.org/wiki?curid=33126028 |
Social preferences Pure altruism in economic models represents an agent's concern on other's well-being. A person exhibits altruistic preference if this person's utility increases with other's payoff. A related economic model is impure altruism, or warm-glow, where individuals feel good (i.e. gain a "warm-glow" utility... | https://en.wikipedia.org/wiki?curid=33126028 |
Social preferences Economists Gary Charness and Matthew Rabin found that in some cases, agents prefer more efficient outcomes (i.e. outcome with larger social welfare) than more equal outcomes and they developed a model where agents' utility is a convex combination of own's material payoff and the social welfare. Moreo... | https://en.wikipedia.org/wiki?curid=33126028 |
Social preferences However, this type of reciprocity models usually has multiple equilibria and suffers from model complexity, which makes it hard to empirically test for the model. Researchers have argued that the failure of recognizing social preference will lead to a biased understanding of much important economic b... | https://en.wikipedia.org/wiki?curid=33126028 |
Tradable sector The tradable sector of a country's economy is made up of the industry sectors whose output in terms of goods and services are traded internationally, or could be traded internationally given a plausible variation in relative prices. Most commonly, the tradable sector consists largely of sectors of the m... | https://en.wikipedia.org/wiki?curid=33136411 |
Fei–Ranis model of economic growth The is a dualism model in developmental economics or welfare economics that has been developed by John C. H. Fei and Gustav Ranis and can be understood as an extension of the Lewis model. It is also known as the Surplus Labor model. It recognizes the presence of a dual economy compris... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth One of the biggest drawbacks of the Lewis model was the undermining of the role of agriculture in boosting the growth of the industrial sector. In addition to that, he did not acknowledge that the increase in productivity of labor should take place prior to the labor shift between the... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth AP of agricultural labor is shown by BYZ and we see that this curve falls downward after AD. This fall in AP can be attributed to the fact that as agricultural laborers shift to the industrial sector, the real wage of industrial laborers decreases due to shortage of food supply, since... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth However, the cost of shifting labor in terms of both private and social cost may be high, for example transportation cost or the cost of carrying out construction of buildings. In addition to that, per capita agricultural consumption can increase, or there can exist a wide gap between... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth They took the example of Japan's dualistic economy in the 19th century and said that connectivity between the two sectors of Japan was heightened due the presence of a decentralized rural industry which was often linked to urban production. According to them, economic progress is achi... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth This led Fei and Ranis to develop the concept of Labor Utilization Ratio, which they define as the units of labor that can be productively employed (without redundancy) per unit of land. In the left-side figure, labor utilization ratio which is graphically equal to the inverted slope ... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth However, the main factors of production are capital and labor. In the graph (A) right hand side, the production functions have been plotted taking labor on the horizontal axis and capital on the vertical axis. The expansion path of the industrial sector is given by the line OAAA. As c... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth λ is the equilibrium profit and is represented by the shaded area qPP. Since the laborers have extremely low income-levels, they barely save from that income and hence industrial profits (π) become the prime source of investment funds in the industrial sector. Here, "K" gives the tota... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth If a section of the redundant agricultural labor force (PQ) is removed from the total agricultural labor force (OP) and absorbed into the industrial sector, then the labor force remaining in the industrial sector is represented by the point Y. Now, the output produced by the remaining... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth The point of commercialization as explained before (See Section on Basics of the model) is observed at point R, where the tangent to the line ORX runs parallel to OX. Before a section of the redundant labor force is absorbed into the industrial sector, the entire labor OA is present i... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth Hence, agriculture successfully provides not only the manpower for production activities elsewhere, but also the wage fund required for the process. The Lewis model is criticised on the grounds that it neglects agriculture. Fei–Ranis model goes a step beyond and states that agricultur... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth More the rate of reallocation, faster is the growth of that economy. The economic rationale behind this idea of labor reallocation is that of faster economic development. The essence of labor reallocation lies in Engel's Law, which states that the proportion of income being spent on f... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth However, Fei and Ranis were quick to mention that the necessity of labor reallocation must be linked more to the need to produce more capital investment goods as opposed to the thought of industrial consumer goods following the discourse of Engel's Law. This is because the assumption ... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth In the Fei-Ranis model, it is possible that as technological progress takes place and there is a shift to labor-saving production techniques, growth of the economy takes place with increase in profits but no economic development takes place. This can be explained well with the help of... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth This makes for a good example of a process of growth without development, since growth takes place with increase in profits but development is at a standstill since employment and wages of laborers remain the same. has been criticized on multiple grounds, although if the model is acce... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth In that case, the land left behind would be divided between the remaining laborers and as a result, the transformation curve would shift from SAG to RTG. Like at point A, MPL at point T would be 0 and APL would continue to be the same as that at A (assuming constant returns to scale).... | https://en.wikipedia.org/wiki?curid=33183306 |
Fei–Ranis model of economic growth Now if MPL>0 then leisure satiation option becomes invalid, and if MPL=0 then the option of food and leisure as perfect substitutes becomes invalid. Therefore, the only remaining viable option is leisure as an inferior good. | https://en.wikipedia.org/wiki?curid=33183306 |
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