Topic
Capital deepening
About: Capital deepening is a research topic. Over the lifetime, 5203 publications have been published within this topic receiving 230297 citations.
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TL;DR: Two sources of geographic unevenness are spatial differentiation and capital mobility: spatial differentiation produces a spatial mosaic in which the pieces are neither equal, autonomous, nor properly considered "underdeveloped".
118 citations
TL;DR: Using the stochastic frontier analysis method based on the translog production function and the panel data of 32 industrial sub-sectors in Shanghai over 1994-2011, Wang et al. as discussed by the authors investigated the degree of technological change biased to the environmental factor.
117 citations
TL;DR: In this article, the effects of taxation in a two-sector model of endogenous growth, based on the joint accumulation of physical and human capital, are examined, and the response to wage taxes, capital taxes, and consumption taxes is explored.
Abstract: This paper examines the effects of taxation in a two-sector model of endogenous growth, based on the joint accumulation of physical and human capital. Both transitional dynamics and balanced growth paths are computed, and the response to wage taxes, capital taxes, and consumption taxes is explored. Welfare costs of alternative tax regimes are computed. The capital tax is by far the least efficient method of generating revenue. The differences between taxes with respect to their effects on long-run growth rates are relatively unimportant. The key difference between the capital tax and wage or consumption taxes lies in their different level effects on the permanent paths of output, consumption, and labour supply.
117 citations
TL;DR: In this paper, the authors developed a structural, dynamic model of a banking firm to analyze how banks adjust their loan portfolios over time, and the optimal bank response to changes in capital requirements, shocks to bank capital, and changes to bank loan demand is simulated.
Abstract: This paper develops a structural, dynamic model of a banking firm to analyze how banks adjust their loan portfolios over time. In the model, banks experience capital shocks, face uncertain future loan demand, and incur costs based on their proximity to regulatory minimum capital requirements. Non-linear relationships between bank capital levels and lending are derived from the model, and key parameters are estimated using panel data on large US commercial banks operating continuously between December 1989 and December 1997. Using the estimated model, the optimal bank response to changes in capital requirements, shocks to bank capital, and changes to bank loan demand is simulated. The simulations predict that increases in risk-based and leverage capital requirements, negative capital shocks, or a decline in loan demand cause a reduction in loan growth. Nevertheless, by calculating the optimal portfolio response to these various changes, it is shown that changes in capital regulation are a necessary ingredient to explain the decline in loan growth and the rise in bank capital ratios witnessed nearly a decade ago. Thus, this study suggests that the current effort to redesign bank capital requirements should work under the assumption that banks will optimally respond to the economic incentives found in the regulation.
117 citations
TL;DR: In this paper, the authors examined the effect of capital subsidies on four dimensions of the financial performance of firms, that is efficiency, profitability, capital structure, and growth, and provided evidence that capital subsidization affects solely firm growth.
Abstract: Capital subsidization is a widespread instrument of regional and industrial policy in Europe. A number of recent works have examined the influence of capital subsidization on the total factor productivity of recipient sectors and firms, and have provided strong evidence of neutral or even negative effects. The present study examines the effect of capital subsidization on four dimensions of the financial performance of firms, that is efficiency, profitability, capital structure, and growth, and provides evidence that capital subsidization affects solely firm growth.
117 citations