Growth and multiple equilibria: A unique local dynamics

Hosoya, Kei

doi:10.1016/j.econmod.2012.05.020

Cited by 7 publications

(2 citation statements)

References 15 publications

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“…Studies Education capital directly affects economic growth Barro [14]; Aghion et al [15]; Hosoya [16]; Rahman [17]; Khattak [18]; Ohwofasa et al [19]; Islam [20] Education capital adversely affects economic growth Nurudeen and Usman [21] and Gungor [22] Health capital directly affects economic growth Beraldo et al [23]; Peykarjou et al [24]; Ozturk and Topcu [25] Health capital adversely affects economic growth Aka and Dumant [26] Physical capital adversely affects economic growth Abbas and Foreman [27] 2. Material and Methods…”

Section: Variables and Relationshipmentioning

confidence: 99%

Bayesian versus Classical Econometric Inference to Revisit the Role of Human Capital in Economic Growth

Akbar

Alshamari

Tariq

et al. 2022

Mathematical Problems in Engineering

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Application of Bayesian inference to analyze real economic phenomena is rare in the literature on applied economics. This study contributes in two ways. Firstly, it contributes to methodological advancement in the literature on applied economic modeling by estimating a structural model using the classical econometric framework as well as the Bayesian two-stage econometric framework. The performance of the two approaches is compared due to the small sample size and the best model is selected. Secondly, the study is used to get fresh evidence about the impact of human capital upon economic growth in the form of Bayes mean estimates along with their Highest Posterior Density Intervals (HPDIs) which give certain ranges of estimates within which the parameters are likely to lie. Annual data on the Pakistan economy ranging from 1965 to 2019 is used for the estimation of the model. Classical estimates are obtained using the efficient GMM method. Bayes mean estimates are simulated using a Bayesian two-stage procedure assuming multivariate normal-Wishart informative priors. Results show that the Bayesian econometric framework gives more precise parameters’ estimates as compared to the classical econometric framework, and hence, the Bayesian inference may be preferred over classical inference, especially in the case of a small sample size. The Bayes estimates show that a 1% increase in education capital and health capital causes raising economic growth by 0.0091% and 0.1778%, respectively, with a 0.95 probability that the estimates are likely to lie within the intervals 0.0085%–0.0097% and 0.1606%–0.1952%, respectively. Hence, human capital might be considered a vital factor to achieve economic growth in Pakistan. Moreover, health capital shows strong effects as compared to education capital in the process of economic growth.

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Section: Variables and Relationshipmentioning

confidence: 99%

Bayesian versus Classical Econometric Inference to Revisit the Role of Human Capital in Economic Growth

Akbar

Alshamari

Tariq

et al. 2022

Mathematical Problems in Engineering

View full text Add to dashboard Cite

show abstract

“…Trying to understand which of the expected equilibria is preferred is an interesting study to be made, and it remains fundamental to understanding how public expenditure can affect economic growth and the equilibrium properties, thus leading to multiple steady states (see Agenor, ; Gupta & Barman, ; Hosoya, ; Raurich, ). In particular, Chen & Lee () have proposed a study where a congestion effect in the way to finance public goods can lead to the emergence of local indeterminacy problems.…”

Section: Introductionmentioning

confidence: 99%

Multiple equilibria and global indeterminacy in an endogenous growth model with congestible public goods

Bella

Mattana

2018

J Public Economic Theory

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This paper extends the findings in Chen and Lee (2007) to show that the use of congestible public goods can produce both local and global indeterminacy in a two-sector endogenous growth model with productive public services financed by income taxation. Basically, we observe the effects on growth rates by changing parameters, and compare the case of a single steady-state with the emergence of dual steady-states, identifying the feasible ways to avoid a possible low-growth poverty trap. The novelty of our analysis is to detect the presence of global indeterminacy by making use of the Bogdanov-Takens bifurcation theorem. Some examples are also provided to achieve concrete policy implications.

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Introduction

Liu¹,

Jiang²

2018

The Synergy Theory on Economic Growth: Comparative Study Between China and Developed Countries

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Growth and multiple equilibria: A unique local dynamics

Cited by 7 publications

References 15 publications

Bayesian versus Classical Econometric Inference to Revisit the Role of Human Capital in Economic Growth

Bayesian versus Classical Econometric Inference to Revisit the Role of Human Capital in Economic Growth

Multiple equilibria and global indeterminacy in an endogenous growth model with congestible public goods

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