Habit Formation in an Interdependent World Economy

Habit Formation in an Interdependent World Economy
Author: Shinsuke Ikeda
Publisher:
Total Pages: 0
Release: 2008
Genre:
ISBN:

Economic interdependence of heterogeneous habit forming consumers is examined by using a two-country model. Due to endogenous interest rate adjustments, consumption-habit dynamics in one country are affected by the other country's habits and preferences. To characterize the interactive dynamics, we construct an aggregate world felicity function from individual countries' felicity functions and introduce a global aggregate habit capital, defined as the sum of individual countries' habit capitals. External indebtedness depends crucially on international differences in habit-adjusted disposable income less habitual living standard. The international average of, and difference in, the strength of habit formation play a key role in macroeconomic adjustment and the effects of fiscal policies. An increase in fiscal spending in one country can make that country better off, and the neighbor worse off, due to intertemporal terms-of-trade effects.

Global Habits, Habit Differentials, and International Macroeconomic Adjustment to Income Shocks

Global Habits, Habit Differentials, and International Macroeconomic Adjustment to Income Shocks
Author: Shinsuke Ikeda
Publisher:
Total Pages:
Release: 2010
Genre:
ISBN:

In a two-country model with habit formation, we focus on interdependent macroeconomic adjustments to global and country-specific income shocks. Global habits and habit differentials play key roles in the global equilibrium dynamics, possibly nonmonotonic, and in the determination of international asset distribution. A country's steady-state holdings of net external assets rely on (i) weighted income difference in excess of habit differentials and (ii) global income in excess of global habits. Local income shocks have greater effects on the international asset distribution than global income shocks. With habit formation, positive income shocks lower the world interest rate, thereby harming the creditor country and benefitting the debtor country due to the intertemporal terms-of-trade effect. In contrast to the case of trade theory, this intertemporal immiserizing growth effect is more likely to be caused by global income shocks than by country-specific income shocks. -- Global habits ; habit differentials ; immiserizing growth ; two country model ; global shock ; country-specific shock

International Trade and Economic Dynamics

International Trade and Economic Dynamics
Author: Takashi Kamihigashi
Publisher: Springer Science & Business Media
Total Pages: 532
Release: 2008-10-16
Genre: Business & Economics
ISBN: 3540786767

Renowned trade theorist Koji Shimomura passed away in February 2007 at the age of 54. He published nearly 100 articles in international academic journals. The loss of this extremely productive economist has been an enormous shock to the economic profession. This volume has emerged from the great desire on the part of the profession to honor his contributions to economic research. Contributors include authoritative figures in trade theory such as Murray Kemp, Ronald Jones, Henry Wan, and Wilfred Ethier, world-renowned macroeconomists such as Stephen Turnovski and Costas Azariadis, and leading Japanese economists such as Kazuo Nishimura, Makoto Yano, Ryuzo Sato, and Koichi Hamada. This broad range of contributors reflects Koji Shimomura’s many connections as well as the respect he earned in the economic profession. This volume offers the reader a rare opportunity to learn the views of so many renowned economists from different schools of thought.

Work Behavior of the World's Poor

Work Behavior of the World's Poor
Author: Mohammed Sharif
Publisher: Routledge
Total Pages: 202
Release: 2018-02-06
Genre: Social Science
ISBN: 1351759892

This title was first published in 2003. The working poor of the world are observed to engage in long hours in hard jobs and to work more if wages are further reduced. Mainstream economics brushes off this tendency to increase labour supply as wages fall as perverse because it does not fit the conventional wisdom and tries to explain it as a result of "subsistence mentality", "limited aspiration", or "target income" behaviour of the poor. This however ignores the observed fact that the poor work long hard hours but most of the time, fail to meet their minimum needs of subsistence and live impoverished lives in absolute poverty deficient of both food and physical rest. This book postulates that the observed behaviour is the result of economic distress the working poor suffer and analyses it as a rational behaviour using the conventional utility maximization framework and derives both theoretical and empirical results consistent with the observation. This book aims to correct a serious misconception persisting in the literature relating to the working-poor labour-supply behaviour that is almost universally observed. It also goes onto develop, using the supply function, a methodology to determine the standard of subsistence income and physical rest for the worker.

Global Interdependence

Global Interdependence
Author: Akira Iriye
Publisher: Harvard University Press
Total Pages: 1004
Release: 2014-01-14
Genre: History
ISBN: 0674045726

Global Interdependence provides a new account of world history from the end of World War II to the present, an era when transnational communities began to challenge the long domination of the nation-state. In this single-volume survey, leading scholars elucidate the political, economic, cultural, and environmental forces that have shaped the planet in the past sixty years. Offering fresh insight into international politics since 1945, Wilfried Loth examines how miscalculations by both the United States and the Soviet Union brought about a Cold War conflict that was not necessarily inevitable. Thomas Zeiler explains how American free-market principles spurred the creation of an entirely new economic order--a global system in which goods and money flowed across national borders at an unprecedented rate, fueling growth for some nations while also creating inequalities in large parts of the Middle East, Latin America, and Africa. From an environmental viewpoint, J. R. McNeill and Peter Engelke contend that humanity has entered a new epoch, the Anthropocene era, in which massive industrialization and population growth have become the most powerful influences upon global ecology. Petra Goedde analyzes how globalization has impacted indigenous cultures and questions the extent to which a generic culture has erased distinctiveness and authenticity. She shows how, paradoxically, the more cultures blended, the more diversified they became as well. Combining these different perspectives, volume editor Akira Iriye presents a model of transnational historiography in which individuals and groups enter history not primarily as citizens of a country but as migrants, tourists, artists, and missionaries--actors who create networks that transcend traditional geopolitical boundaries.

The Future of the World Economy

The Future of the World Economy
Author: Wilhelm Krelle
Publisher: Springer Science & Business Media
Total Pages: 680
Release: 2013-03-09
Genre: Business & Economics
ISBN: 3662025868

Economic growth and structural change - the future of the world economy - is analysed in this book. Conditional forecasts are given for the economic development of the most important world market countries till the year 2000. The driving forces of economic growth are identified and forecasted, in connection with collaborating scholars in most of these countries and with international organizations. This information is used in solving a coherent world model. The model consists of linked growth models for each country (or groups of countries). The solutions show that the inequality in international income distribution will further increase and that the CMEA and OECD countries will approximately keep their relative positions, with some changes within these groups. Structural change is also analysed. Additionally separate forecasts prepared by each collaborating country group are given and may be compared with the forecasts by the world model. The book closes with chapters on special features of the future economic development: on the international debt problem, on long waves, on structural change in the world trade, on the emergence of service economics and on the comparison of GDP and NMP national accounting.

Leadership In An Interdependent World

Leadership In An Interdependent World
Author: Ghita Ionescu
Publisher: Routledge
Total Pages: 278
Release: 2019-03-04
Genre: Political Science
ISBN: 0429719426

This book is an inquiry into modern statesmanship or, as the title indicates, into statesmanship in the age of interdependence. In form, it consists of an examination of the statesmanship of five people, namely Konrad Adenauer, Charles de Gaulle, Mrs Margaret Thatcher, Ronald Reagan and Mikhail Gorbachev, with special reference to the way in which

The Handbook of Behavior Change

The Handbook of Behavior Change
Author: Martin S. Hagger
Publisher: Cambridge University Press
Total Pages: 730
Release: 2020-07-15
Genre: Psychology
ISBN: 1108750117

Social problems in many domains, including health, education, social relationships, and the workplace, have their origins in human behavior. The documented links between behavior and social problems have compelled governments and organizations to prioritize and mobilize efforts to develop effective, evidence-based means to promote adaptive behavior change. In recognition of this impetus, The Handbook of Behavior Change provides comprehensive coverage of contemporary theory, research, and practice on behavior change. It summarizes current evidence-based approaches to behavior change in chapters authored by leading theorists, researchers, and practitioners from multiple disciplines, including psychology, sociology, behavioral science, economics, philosophy, and implementation science. It is the go-to resource for researchers, students, practitioners, and policy makers looking for current knowledge on behavior change and guidance on how to develop effective interventions to change behavior.

Economic Policy in a Demographically Divided World

Economic Policy in a Demographically Divided World
Author: Hendrik P. van Dalen
Publisher: Springer Science & Business Media
Total Pages: 364
Release: 2012-12-06
Genre: Political Science
ISBN: 3642770371

Economic Policy in a Demographically Divided World contains the economic analysis of the consequences of demographic change and the diverging population developments in an interdependent world economy in particular. The global divergence in demographic developments gives rise to a myriadof economic and ethical problems. This topic is treated with the help of themathematical apparatus of neoclassical optimal growth models. The author tries to disentangle the basic policy issues of a demographically divided world, such as a selective immigration policy, sustainable patterns of international lending and borrowing, development aid, and dynamic optimal taxation. The most important feature of the book is that it brings together information and theories of fairly recent date to analyse a practical policy problem, viz. issues related to a world economy that is characterised by a demographic division. This stylised fact is hardly given some attention in current economic theory and the book contains with respect to this stylised fact some new results. Customers might benefit from the book by gaining intuition concerning principles of economic policy in a world characterised by demographic change.