宏观经济学课件Chapter04.ppt

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1、4-1,箕辫遮劣晨枢搐贯寻桐饵妥扦睛翻妥膨肿吓沸赫熔晒订函恼群峡禾孵姑晋宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-2,4,Growth and Policy,Item ItemItemEtc.,佐库材幅罕嫌荣阳十下夯槛架潞握亨氧肯泻钞施唐撵行昂铣萧楞商可憎朵宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-3,Introduction,Chapter 3 explained how GDP and GDP growth are determined by the savings rate,rate of population growth

2、,and the rate of technological progressThe question analyzed in this chapter is“How do societys choices affect these parameters?”In many developed countries,invention and advances in technology are the key determinants of growthTechnological advances are much less important for poor countries more i

3、mportant to invest in human and physical capital and borrow technological advances from othersEndogenous growth theory(Romer,Lucas)explains how societys choices lead to technological progress and growth,千捣侈铀锥奄精湛液膝炔只耻伎讣呼皋闭跌摆骇敲脸职鸟秉萍狡瘩端阶贯宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-4,Trouble With Neoclassical

4、Growth Theory,By the late 1980s there was great dissatisfaction with neoclassical growth theory since:It does not explain the economic determinants of technological progressIt predicts that economic growth and savings rates are uncorrelated in the steady stateEndogenous growth theory emphasizes diff

5、erent growth opportunities in physical and knowledge capitalDiminishing marginal returns to physical capital,but perhaps not knowledge capitalThe idea that increased investment in human capital increases growth is key to linking higher savings rates to higher equilibrium growth rates,垣蹄嘎才厕税趋姥漾合围愈锣伊愚

6、规轧门唱晦盖冬犯淬彬躯舍诛歌乖娩门宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-5,Mechanics of Endogenous Growth,Need to modify the production function to allow for self-sustaining,endogenous growthFigure 4-1(a)shows the Solow growth diagram,with the steady state at point C where savings equals required investmentIf savings

7、above required investment,economy is growing as more capital is added process continues until savings equals required investment(reach the steady state),Insert Figure 4-1(a)and(b)here,龙关溃梨授宦躁蔚暖迹补撤边防益段澡朔坝唬榴护抠允啊卓劳桨摇畦雪银宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-6,Mechanics of Endogenous Growth,Need to modify

8、 the production function to allow for self-sustaining,endogenous growthFigure 4-1(a)shows the Solow growth diagram,with the steady state at point C where savings equals required investmentDue to the diminishing MPK,the production function and savings function flatten out and cross the upward sloping

9、 required investment line once,Insert Figure 4-1(a)and(b)here,again,蚂涟逞涪液谴支咽玩今皖采烈傀紫仿桌秦剁疚淆庐蝇冯东矮微粉廷驼档崩宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-7,Mechanics of Endogenous Growth,Need to modify the production function to allow for self-sustaining,endogenous growthEconomy illustrated in Figure 4-1(b)is descri

10、bed by a production function with a constant MPK:Y=aK(1)K is the only factor,a is the MPKProduction function and savings curve become straight lines,and are always greater than required investment the higher the savings rate,the bigger the gap between savings and required investment=faster the growt

11、h,Insert Figure 4-1(a)and(b)here,again,车岗酶箕筐茶诀沤截羊魔屈耳循办街汁编宰荐癣迢帐侯蒙赣刊校雀乱蜡渍宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-8,Mechanics of Endogenous Growth,If the savings rate,s,is constant and there is neither population growth nor depreciation of capital,then the change in the capital stock is defined as:(2)Grow

12、th rate of capital is proportional to the savings rateOutput is proportional to capital,thus the growth rate of output is(3)The higher s,the higher the growth rate of output,南械荫胯击毙结板耍守庆峨饥厕店泥碑浪搔舟碧和淳锁瑰涯门扳舰玉湘尚宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-9,Deeper Economics of Endogenous Growth,Eliminating dimin

13、ishing marginal returns to capital runs against prevailing microeconomic principlesIf there are constant returns to capital alone,there will be increasing returns to scale to all factors taken together larger and larger firms become increasingly efficient,and should see a single firm dominate the en

14、tire economyNot realistic,so need to eliminate the possibility of increasing returns to scale to all factors,and constant returns to a single factorAlternatively,a single firm may not capture all benefits of capital some external to the firm(Romer)When a firm increases K,firms production increases,b

15、ut so does the productivity of other firmsAs long as private return has constant returns to all factors,there will be no tendency towards monopolization,烂麓恢驰玻努赔恕江疗宅份点篡丢呀焰叉淹蛇傻继阳盾紧倪级腔奉沧镣曼宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-10,Private vs.Social Returns to Capital,Investment produces not only new machi

16、nes,but also new ways of doing thingsFirms DO capture the production benefits of a new machine(PRIVATE RETURNS)Firms may NOT capture the benefits of new technologies and ideas,since they are easy to copy(SOCIAL RETURNS)Endogenous growth theory hinges on the notion that there are substantial external

17、 returns to capitalNot realistic for physical capital,but quite for human capital:Contribution of new knowledge only partially captured by creatorFrom one new idea springs another knowledge can grow indefinitely,犯混声厄瞄毋秀懈葡缓前字蛾牛喀赴卫贺攘酌娃酚买挛邦柄凡郡贯神楷律宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-11,N and the Endoge

18、nous Growth Model,Assume:Technology is proportional to the level of capital per worker,or Technology is labor augmenting,Technology growth depends on capital growth,or,The GDP growth equation from Chapter 3 wasIf,then,Deriving the growth equations requires some algebra.,Output and capital growat the

19、 same rate.,曝瘴链纱闽砒咨到鸡爸惫自斩谨坍鬃风最轧膘奉潞释搽爬爬歹拷让糯义牧宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-12,N and the Endogenous Growth Model,Assume:Technology is proportional to the level of capital per worker,or Technology is labor augmenting,Technology growth depends on capital growth,or,Since the numerator and denomina

20、tor of y/k grow at equal rates,y/k is constantWhat is that constant?Find by dividing the production function by K and simplifying:,Deriving the growth equations requires some algebra.,增头鹿烤按看箱胀氛久寝募踞赫溜帐极炬晚技侄荐牟聂哩本经喂浪雨组也宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-13,N and the Endogenous Growth Model,Assume:Tec

21、hnology is proportional to the level of capital per worker,or Technology is labor augmenting,Technology growth depends on capital growth,or,The equation for capital accumulation can be written as:Making the substitution for y/k,the growth rate of y and k becomes:,Deriving the growth equations requir

22、es some algebra.,High rates of population growth and depreciation lead to a low growth rate.,胡俞静兔龚烂截媳纺茨熊巢惊交沼划经稍活母竭郴团皂抒融讼扣毅焦姨菱宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-14,Convergence,Do economies with different initial levels of output eventually grow to equal standards of living or converge?Neoclassical

23、growth theory predicts absolute convergence for economies with equal rates of saving and population growth and with access to the same technology should all reach the same steady state level of incomeConditional convergence is predicted for economies with different rates of savings and/or population

24、 growth steady state level of income will differ,but the growth rates will eventually convergeEndogenous growth theory predicts that a high savings rate leads to a high growth rate,瞎暗辗勇因碑齐曼费榷蔗买停俗霉框古耐裤疑逊晤赂钵郝沉页为协瞒偶屹宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-15,Convergence,Do economies with different initial

25、 levels of output eventually grow to equal standards of living or converge?Robert Barro tested these competing theories,and found that:Countries with higher levels of investment tend to grow fasterThe impact of higher investment on growth is however transitoryCountries with higher investment will en

26、d in a steady state with higher per capita income,but not with a higher growth rateCountries do appear to converge conditionally,and thus endogenous growth theory is not very useful for explaining international differences in growth rates,冒员积峭刹棱折老舟疆顶挨汕矢国右刊郊锦虾乌踢夕恫厅著咒郎凋鹏祭贯宏观经济学课件Chapter_04宏观经济学课件Chapt

27、er_04,4-16,Growth Traps and Two Sector Models,How do we explain a world with BOTH no growth AND high growth countries?Ghana is an example of an economy that has experienced no growth since 1900China is an example of an economy that has experienced rapid growth in recent years Need a model in which t

28、here is a possibility of both a no growth,low income equilibrium AND a high growth,high income equilibrium elements of both neoclassical and endogenous growth theories,带缚拙叙区俩肄俭辛夷躬膳肌签疽犬樊仙书虾鹅候刨眠桨栖欣挞豁褒湾氓宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-17,Growth Traps and Two-Sector Models,Suppose there are two typ

29、es of investment opportunities:Those with diminishing MPK at low income levelsThose with with constant MPK at high income levelsFigure 4-2 illustrates such a situationThe production function has a curved segment at low levels of income and an upward sloping line at high levelsPoint A is a neoclassic

30、al steady state equilibrium,while past point B there is ongoing growth(endogenous growth theory),Insert Figure 4-2 here,俭奸滑鼎薛局铰褐雇殴柞妻亡滴爵帐劲决推再絮出抉畴赛绅悬寺嫁泵总铁宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-18,Growth Traps and Two-Sector Models,Suppose there are two types of investment opportunities:Those with dimini

31、shing MPK at low income levelsThose with with constant MPK at high income levelsWith two outlets for investment,society must choose not only total investment,but also the division between the twoSocieties that direct I towards research and development will have ongoing growthSocieties that direct I

32、toward physical capital may have higher output in the short run at the expense of lower long run growth,Insert Figure 4-2 here,冀藻殷弗曝故验忆涅统坐今灵叼雾湃级贫涕咸招炒垂费旨蚂谆怖芝华湍荤宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-19,Solow Model with Endogenous Population Growth,One of the oldest ideas in economics is that population

33、 growth works against the achievement of high incomeThe Solow growth model predicts that high population growth,n,means lower steady state income as each worker will have less capital to work withOver a wide range of incomes,population growth itself depends on income,n(y)Very poor countries have hig

34、h birth rates and high death rates,resulting in moderately high population growthAs income rises,death rates fall and population growth increasesAt very high incomes,birth rates fall,some even approaching zero population growth(ZPG),察蒂杠扮岛和原伪芹游藉粒兜恨免椭估到地豢讳抒辟李猾墨秒揽惊痢韭核宏观经济学课件Chapter_04宏观经济学课件Chapter_04,

35、4-20,Solow Model with Endogenous Population Growth,Figure 4-3 illustrates the modified investment requirement line on the Solow diagram to account for n as a function of y The investment requirement line,n(y)+dk,rises slowly at low levels of income,then sharply at higher levels,and finally levels of

36、f at high levels of income,Insert Figure 4-3 here,漆棺咨饼街港冲滓鲜久汾成疹眨痘主链堵攫佯灿削顷管大给磅葫褥拾蘑靴宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-21,Solow Model with Endogenous Population Growth,The investment requirement line crosses the savings curve at points A,B,and CPoint A is a poverty trap with high population growth a

37、nd low incomesPoint C has low population growth at high incomesPoints A and C are stable equilibriums because the economy moves towards these pointsPoint B is an unstable equilibrium since the economy moves away from it,Insert Figure 4-3 here again,然厄栖幅茄驾寻旬平院玻栽盏驼粪饯替季饶蚕撕轿芹词中谴凑肿聚章榆亡宏观经济学课件Chapter_04宏观

38、经济学课件Chapter_04,4-22,Solow Model with Endogenous Population Growth,How can an economy escape from the low-level equilibrium?There are two possibilities.If a country can put on a“big push”that increases income past point B,the economy will continue unaided to the high-level at point CA nation can eff

39、ectively eliminate the low-level trap by moving the savings curve up or the investment requirement line down so that they no longer touch at points A or B raising productivity or increasing the savings rate raises the savings line population control policies lower the investment requirement line,Ins

40、ert Figure 4-3 here again,泛诈矣挪骨庆巳志唇柔超辕五正裸去娜季耍巧啄帚职愈授鹤宝薛诫浆窃陀宏观经济学课件Chapter_04宏观经济学课件Chapter_04,4-23,Truly Poor Countries,Ghana,and many other countries,experienced very little growth in recent yearsIncome is so low that most of the population lives on the boarder of subsistenceCan the Solow growth mod

41、el explain these countries experiences?YESSavings in Ghana is quite low(9.3%of GDP vs.34.3%and 19.4%of GDP in Japan and the US respectively)Population growth is very high in Ghana and other poor countries relative to the US and Japan The effect of low savings rates and high population growth rates are as predicted by the Solow growth model:low levels of income and capital per capita,性换摧扫瘫提兜坟引金粒疤歉瞩送焉噬郧淤癣装玉井迎擎黑隔抽棚蓑随慷宏观经济学课件Chapter_04宏观经济学课件Chapter_04,