Topic
Capital deepening
About: Capital deepening is a research topic. Over the lifetime, 5203 publications have been published within this topic receiving 230297 citations.
Papers published on a yearly basis
Papers
More filters
TL;DR: In this paper, the authors developed a simple model to examine the reasons behind capital inflows into selected Asian economies in the 1990s prior to the financial crisis of 1997-98.
Abstract: Received 12 December 2005; accepted 28 August 2006This paper develops a simple model to examine the reasons behind the capitalinflow surges into selected Asian economies in the 1990s prior to the financialcrisis of 1997–98. The analytical model shows that persistent uncovered interestdifferentials and consequent capital inflows may be a result of complete monetarysterilization, perfect capital mobility, sluggish response of interest rates to domesticmonetary disequilibrium, or some combination of all three. Using the model as anorganizing framework, the paper undertakes a series of related simple empiricaltests of the dynamic links between international capital flows, the extent to whichthey are sterilized and uncovered interest rate differentials in the five crisis-hiteconomies (Indonesia, Korea, Malaysia, the Philippines and Thailand) over theperiod 1990:1–1997:5.
38 citations
Posted Content•
TL;DR: In this paper, the authors propose a model for distinguishing development economics from transition economics, in which at a good equilibrium, a large number of children of well-educated parents take advantage of their family backgrounds and invest substantially in their own human capital.
Abstract: Transition economies have an initial condition of high human capital relative to GDP per capita, giving them high growth potential. In the model, at a good equilibrium a large number of children of well-educated parents take advantage of their family backgrounds and invest substantially in their own human capital. At a bad equilibrium, past educational achievements are wasted as children fail to build upon their parents' achievements. Policies affecting the education system and the returns to human capital can be decisive in determining the outcome. The model provides a basis for distinguishing development economics from transition economics.
38 citations
Posted Content•
37 citations
TL;DR: In this article, the authors show how capital movements conform surprisingly well to the predictions of a neoclassical model with credit constraints, and they find qualitative and quantitative evidence that supports these predictions.
37 citations
Posted Content•
TL;DR: In this paper, the authors analyzed the short and long run effects of demographic ageing on per-capita growth in the OECD and showed that tax and government spending components and the retirement age in a politico-economic equilibrium would increase in response to demographic ageing.
Abstract: We analyze the short and long run effects of demographic ageing—increased longevity and reduced fertility—on per-capita growth. The OLG model captures direct effects, working through adjustments in the savings rate, labor supply, and capital deepening, and indirect effects, working through changes of taxes, government spending components and the retirement age in politico-economic equilibrium. Growth is driven by capital accumulation and productivity increases fueled by public investment. The closed-form solutions of the model predict taxation and the retirement age in OECD economies to increase in response to demographic ageing and per-capita growth to accelerate. If the retirement age were held constant, the growth rate in politico-economic equilibrium would essentially remain unchanged, due to a surge of social security transfers and crowding out of public investment.
37 citations