PUBLIC GOODS Theories, Rules and Institutions for the Central Policy Challenge in the 21St Century
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Macroeconomic Theory and Policy Lecture 2: National Income Accounting
ECO 209Y Macroeconomic Theory and Policy Lecture 2: National Income Accounting © Gustavo Indart Slide1 Gross Domestic Product Gross Domestic Product (GDP) is the value of all final goods and services produced in Canada during a given period of time That is, GDP is a flow of new products during a period of time, usually one year We can use three different approaches to measure GDP: Production approach Expenditure approach Income approach © Gustavo Indart Slide 2 Measuring GDP Production Approach –We can measure GDP by measuring the value added in the production of goods and services in the different industries (e.g., agriculture, mining, manufacturing, commerce, etc.) Expenditure Approach –We can measure GDP by measuring the total expenditure on final goods and services by different groups (households, businesses, government, and foreigners) Income Approach –We can measure GDP by measuring the total income earned by those producing goods and services (wages, rents, profits, etc.) © Gustavo Indart Slide 3 Flow of Expenditure and Income Labour, land FACTORS Labour, land & capital MARKETS & capital Wages, rent & interest HOUSEHOLDS FIRMS Expenditures on goods & services Goods & services GOODS Goods & MARKETS services © Gustavo Indart Slide 4 Measuring GDP Current Output –GDP includes only the value of output currently produced. For instance, GDP includes the value of currently produced cars and houses but not the sales of used cars and old houses Market Prices –GDP values goods at market prices, and the market price of a good includes -
Demand Composition and the Strength of Recoveries†
Demand Composition and the Strength of Recoveriesy Martin Beraja Christian K. Wolf MIT & NBER MIT & NBER September 17, 2021 Abstract: We argue that recoveries from demand-driven recessions with ex- penditure cuts concentrated in services or non-durables will tend to be weaker than recoveries from recessions more biased towards durables. Intuitively, the smaller the bias towards more durable goods, the less the recovery is buffeted by pent-up demand. We show that, in a standard multi-sector business-cycle model, this prediction holds if and only if, following an aggregate demand shock to all categories of spending (e.g., a monetary shock), expenditure on more durable goods reverts back faster. This testable condition receives ample support in U.S. data. We then use (i) a semi-structural shift-share and (ii) a structural model to quantify this effect of varying demand composition on recovery dynamics, and find it to be large. We also discuss implications for optimal stabilization policy. Keywords: durables, services, demand recessions, pent-up demand, shift-share design, recov- ery dynamics, COVID-19. JEL codes: E32, E52 yEmail: [email protected] and [email protected]. We received helpful comments from George-Marios Angeletos, Gadi Barlevy, Florin Bilbiie, Ricardo Caballero, Lawrence Christiano, Martin Eichenbaum, Fran¸coisGourio, Basile Grassi, Erik Hurst, Greg Kaplan, Andrea Lanteri, Jennifer La'O, Alisdair McKay, Simon Mongey, Ernesto Pasten, Matt Rognlie, Alp Simsek, Ludwig Straub, Silvana Tenreyro, Nicholas Tra- chter, Gianluca Violante, Iv´anWerning, Johannes Wieland (our discussant), Tom Winberry, Nathan Zorzi and seminar participants at various venues, and we thank Isabel Di Tella for outstanding research assistance. -
3. the Distortion in Consumer Goods This Section Calculates the Welfare Cost of Distortions in the Allocation of Consumer Goods
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Bjertnæs, Geir H. Working Paper The Welfare Cost of Market Power. Accounting for Intermediate Good Firms Discussion Papers, No. 502 Provided in Cooperation with: Research Department, Statistics Norway, Oslo Suggested Citation: Bjertnæs, Geir H. (2007) : The Welfare Cost of Market Power. Accounting for Intermediate Good Firms, Discussion Papers, No. 502, Statistics Norway, Research Department, Oslo This Version is available at: http://hdl.handle.net/10419/192484 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Discussion Papers No. 502, April 2007 Statistics Norway, Research Department Geir H. Bjertnæs The Welfare Cost of Market Power Accounting for Intermediate Good Firms Abstract: The market power of firms in intermediate good markets is found to generate a substantial welfare cost. -
1 Non-Rival Productive Inputs
1 Non-rival productive inputs. Consider a general production technology: Y = Y (A ; K ; L ) t t t t (1) K L A We conventionally label t as “capital”, t as labor and t as an index of technical knowledge. I will now try to be more fundamental, and single out a classi…cation of the productive inputs which is not based on some statistical aggregate, but, rather, on some economic properties which are relevant for the problems which we study in the theory of growth. Let us recall some basic notions of public economics. Private good RIVAL + EXCLUDABLE ² ´ Public (collective) good NON-RIVAL + NON-EXCLUDABLE ² ´ EXCLUDABILITY - problem of property rights. A good is perfectly ² excludable when the holder can withhold the bene…ts associated with the commodity from others without incurring signi…cant costs (an ex- ample of non excludable good is …sh in a certain segment of the ocean). RIVALROUSNESS - A good is rival in nature when the use of that ² good by one agent preclude the simultaneous use of the same good by other agents. An example of non-rival good is radio broadcast. Let me add a notion which is relevant in growth theory. REPRODUCIBILITY - An input is reproducible in nature if it can ² be accumulated in time by (directly or indirectly) foregoing present consumption. The stock of land is the most obvious example of non- reproducible factor. However, also goods which are accumulated ac- cording to some exogenous (e.g. demographic) dynamics enter this group. 1 K L In general, t is a reproducible, private input, while t is a non-reproducible private input. -
Plant Fibers in Comparison with Other Fining Agents for the Reduction of Pesticide Residues and the Effect on the Volatile Profi
applied sciences Article Plant Fibers in Comparison with Other Fining Agents for the Reduction of Pesticide Residues and the Effect on the Volatile Profile of Austrian White and Red Wines Christian Philipp * , Phillip Eder, Moritz Hartmann, Elsa Patzl-Fischerleitner and Reinhard Eder Höhere Bundeslehranstalt und Bundesamt für Wein- und Obstbau, Wienerstraße 74, 3400 Klosterneuburg, Austria; [email protected] (P.E.); [email protected] (M.H.); elsa.patzl-fi[email protected] (E.P.-F.); [email protected] (R.E.) * Correspondence: [email protected]; Tel.: +43-2243-37910-280 Abstract: Pesticide residues in Austrian wines have so far been poorly documented. In 250 wines, 33 grape musts and 45 musts in fermentation, no limit values were exceeded, but in some cases high levels (>0.100 mg/L) of single residues were found, meaning that a reduction of these levels before bottling could make sense. In the course of this study, a white and a red wine were spiked with a mix of 23 pesticide residues from the group of fungicides (including botryticides), herbicides and insecticides. The influence of the following treatments on residue concentrations and volatile profiles were investigated: two activated charcoal products, a bentonite clay, two commercial mixed fining agents made of bentonite and charcoal, two yeast cell wall products, and a plant fiber-based novel filter additive. The results of this study show that all the agents tested reduced both residues and volatile compounds in wine, with activated charcoal having the strongest effect and bentonite the Citation: Philipp, C.; Eder, P.; weakest. The mixed agents and yeast wall products showed less aroma losses than charcoal products, Hartmann, M.; Patzl-Fischerleitner, E.; but also lower residue reduction. -
GDP and Beyond
GDP and beyond Adolfo Morrone Italian National Institute of Statistics (Istat) Head of Measures of well-being unit (Bes/Urbes) [email protected] Module content 1. Quick introduction on GDP 2. Shortcomings of GDP as indicator of well-being 3. Alternative approaches a. Historical background b. Recent perspectives 4. The Stiglitz-Sen-Fitoussi report a. Classical Gdp issues b. Quality of life 5. International experiences Definition of GDP 1. Quick introduction on GDP GDP (Gross Domestic Product) is the market value of all final goods and services produced in a country in a given time period. This definition has four parts: – Market value – Final goods and services – Produced within a country – In a given time period Definition of GDP 1. Quick introduction on GDP Market value GDP is a market value—goods and services are valued at their market prices. To add apples and oranges, computers and popcorn, we add the market values so we have a total value of output in euro/dollars. Definition of GDP 1. Quick introduction on GDP Final goods and services GDP is the value of the final goods and services produced. A final good (or service) is an item bought by its final user during a specified time period. A final good contrasts with an intermediate good, which is an item that is produced by one firm, bought by another firm, and used as a component of a final good or service. Excluding intermediate goods and services avoids double counting. Definition of GDP 1. Quick introduction on GDP Produced within a country GDP measures production within a country. -
Defensive Innovations
IZA DP No. 454 Defensive Innovations Winfried Koeniger DISCUSSION PAPER SERIES DISCUSSION PAPER March 2002 Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor Defensive Innovations Winfried Koeniger IZA, Bonn Discussion Paper No. 454 March 2002 IZA P.O. Box 7240 D-53072 Bonn Germany Tel.: +49-228-3894-0 Fax: +49-228-3894-210 Email: [email protected] This Discussion Paper is issued within the framework of IZA’s research area The Future of Labor. Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent, nonprofit limited liability company (Gesellschaft mit beschränkter Haftung) supported by the Deutsche Post AG. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. The current research program deals with (1) mobility and flexibility of labor, (2) internationalization of labor markets, (3) the welfare state and labor markets, (4) labor markets in transition countries, (5) the future of labor, (6) evaluation of labor market policies and projects and (7) general labor economics. -
Market Structure and Entry: Evidence from the Intermediate Goods Market
DPRIETI Discussion Paper Series 15-E-081 Market Structure and Entry: Evidence from the intermediate goods market NISHITATENO Shuhei RIETI The Research Institute of Economy, Trade and Industry http://www.rieti.go.jp/en/ RIETI Discussion Paper Series 15-E-081 July 2015 Market Structure and Entry: * Evidence from the intermediate goods market NISHITATENO Shuhei Kwansei Gakuin University/RIETI Consulting Fellow Abstract The question of whether incumbent firms could deter new entrants in a more concentrated market has been a major concern by both antitrust authorities and industrial economists. This study is the first attempt to analyze the relationship between the market structure and entry in the intermediate goods market, utilizing unique data on auto parts transactions between automakers and auto parts suppliers in Japan during the period 1990-2010. The results suggest that there exists a U-shaped relationship between market concentration and entry, which sees entry decreasing and then increasing as markets concentrate. This result could emanate from a significant role of multi-product and multi-customer firms. Keywords: Entry, Market structure, Multi-product firms, Multi-customer firms, Automobiles JEL classification: L22, L25, L60 RIETI Discussion Papers Series aims at widely disseminating research results in the form of professional papers, thereby stimulating lively discussion. The views expressed in the papers are solely those of the author(s), and neither represent those of the organization to which the author(s) belong(s) nor the Research Institute of Economy, Trade and Industry. * This study is conducted as a part of the Project “Competitiveness of Japanese Firms: Causes and Effects of the Productivity Dynamics” undertaken at Research Institute of Economy, Trade and Industry (RIETI). -
A RIJM Fol·'""""""' PUBLICATION
(REG. TRADE JIARK) A RIJM fol·'""""""' PUBLICATION . ENEMY WITHIN G. BORSKY, a Czechoslovakian, born In Moravia, student of Prague and Vienna University. He is a specialist on the German Minorities as _a weapon Minority Problem and published, besides others, pamphlets on South Tyrol and of German Pohcy DanziJ. He is now in. London. DR. MIHO KREK, Former Vice Premier and Minister of Public Works and Buildings in the Royal Yugoslav by • Government. Born at Leskovici, 1897. ANDRAS MATRAI Doctor of Law. Leader of the Slovenian G. BORSKY B. M. NICULESCU People's Party. Former Editor of the PROFESSOR A. PRAGIER leading Slovene Newspaper Slovenec. DR. MIRO KREK ANDRAS MATRAI, a Hungarian Socialist writer of distinction, with a wide knowledge of the Balkan problems and a staunch defender of democratic With an I ntroductiun rights in those regions. by PROFESSOR ADAM PRAGIER, Economist and Lawyer. Since the 1905 PROFESSOR A. PRAGIER Revolution Farticipated in the Polish Socialist Movement, was a member of Parliament, and was, with other opposi tion leaders, imprisoned by Pilsudski in the Fortress of Brzesc. He is now a Translations meniber of the Polish National Council in London. B. M. NICULESCU, a student of Economics and Engineering, joined the Free Roumanian Movement in 1940 and is a ·strong advocate of "Younger Rouminia". He stands for democratic principles and G°c)vernment and friend ship with' the democratic nations. "FIGHT FOR FREEDOM " Editorial Board LUIS ARAQUISTAIN CAMILLE HUYSMANS JOSEF BELINA PROFESSOR A. PRAGIER JOHN BROWN M. SLUYSER (Publishers) LTD· CURT GEYER RENNIE SMITH HUTCHINSON & CO. W. W. HENDERSON MARY E. -
Demokratie Und Volksbildung Bei Ludo Moritz Hartmann (1865-1924) Ein Beitrag Zur Pädagogischen Spurensicherung Einer Demokratischen Bildungsidee
„Freiheit, Gleichheit, Brüderlichkeit“ Demokratie und Volksbildung bei Ludo Moritz Hartmann (1865-1924) Ein Beitrag zur pädagogischen Spurensicherung einer demokratischen Bildungsidee D I P L O M A R B E I T zur Erlangung des akademischen Grades Magister philosophiae (Mag.phil.) Magister der Philosophie an der Fakultät für Philosophie und Bildungswissenschaft der Universität Wien eingereicht von: Gerold Franz Unterhumer Wien, Oktober 2005 „Wenn alle Menschen einmal lesen und schreiben können werden, dann wird das Reich der Vernunft und der Demokratie auf Erden anbrechen.“ (John Stuart Mill) „Das Beste, was wir von der Geschichte haben, ist der Enthusiasmus, den sie erregt.“ (J.W. von Goethe) - I - Vorwort Den Anlass für die Themenwahl gab ein Gespräch mit meinem Betreuer Mag. Dr. Kurt Finger, der mich auf einen Text von Ludo Moritz Hartmann mit dem Titel „Demokratie und Volksbildung“ (1921) aufmerksam machte. Die darin angesprochene Verbindung von demokratischen Implikationen für die Erwachsenenbildung in ihren Anfängen um die Jahrhundertwende vom 19. zum 20. Jahrhundert weckte mein Interesse, und veranlasste mich, mich auf eine pädagogische Spurensuche und -sicherung zu begeben. Die Relevanz dieses historischen Themas ankerte in der Frage, ob und inwieweit die Hartmannsche Bildungsidee für die gegenwärtige Erwachsenbildung einerseits ein Korrektiv darstellen könne und andererseits das Potenzial innehat, diese neu zu inspirieren. Ich bedanke mich bei Mag. Dr. Kurt Finger für die anregenden und inspirierenden Diskussionen sowie die ausgezeichnete, geduldige Betreuung. Besonderer Dank gilt Herrn Direktor Mag. Christian H. Stifter und seinen Mitarbeiter vom Österreichischen Volkshochschularchiv in Wien für die hervorragende und hilfreiche Unterstützung bei der Recherche für die vorliegende Arbeit. Nicht zuletzt bedanke ich mich bei meiner Frau Sylvia und meinem Freund Richard für die stets aufmunternden und motivierenden Worte während der Erarbeitung. -
Intermediate Goods, Weak Links, and Superstars: a Theory of Economic Development
Intermediate Goods, Weak Links, and Superstars: A Theory of Economic Development Charles I. Jones* Department of Economics, U.C. Berkeley and NBER E-mail: [email protected] http://www.econ.berkeley.edu/˜chad December 11, 2007– Version 1.9 Per capita income in the richest countries of the world exceeds that in the poorest countries by more than a factor of 50. What explains these enormous differences? This paper returns to several old ideas in development economics and proposes that linkages, complementarity, and superstar effects are at the heart of the explanation. First, linkages between firms through intermediate goods de- liver a multiplier similar to the one associated with capital accumulation in a neoclassical growth model. Because the intermediate goods’ share of revenue is about 1/2, this multiplier is substantial. Second, just as a chain is only as strong as its weakest link, problems at any point in a production chain can reduce output substantially if inputs enter production in a complementary fashion. Finally, the high elasticity of substitution associated with final consumption delivers a super- star effect: GDP depends disproportionately on the highest levels of productivity in the economy. This paper builds a model with links across sectors, complemen- tary inputs, and highly substitutable consumption, and shows that it can easily generate 50-fold aggregate income differences. * I would like to thank Daron Acemoglu, Andy Atkeson, Pol Antras, Sustanto Basu, Paul Beaudry, Roland Benabou, Olivier Blanchard, Bill Easterly, Xavier Gabaix, Luis Garicano, Pierre- Olivier Gourinchas, Chang Hsieh, Pete Klenow, Guido Lorenzoni, Kiminori Matsuyama, Ed Prescott, Dani Rodrik, Richard Rogerson, David Romer, Michele Tertilt, Alwyn Young and seminar participants at Berkeley, Brown, Chicago, the Chicago GSB, the NBER growth meeting, Northwestern, Penn, Princeton, the San Francisco Fed, Stanford, Toulouse, UCLA, USC, and the World Bank for helpful comments. -
The Role of Prices on Excludable Public Goods
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Blomquist, Sören; Christiansen, Vidar Working Paper The Role of Prices on Excludable Public Goods Working Paper, No. 2001:14 Provided in Cooperation with: Department of Economics, Uppsala University Suggested Citation: Blomquist, Sören; Christiansen, Vidar (2001) : The Role of Prices on Excludable Public Goods, Working Paper, No. 2001:14, Uppsala University, Department of Economics, Uppsala This Version is available at: http://hdl.handle.net/10419/82897 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu The Role of Prices on Excludable Public Goods by Sören Blomquist*1 and Vidar Christiansen* 2 Abstract When a public good is excludable it is possible to charge individuals for using the good.