Using the Ramsey-Cass-Koopmans Model, what policy would best improve the economic development of a country? 1) to encourage its citizens to save 2) to gift/aid the country with items that support its production capacity (machineries, harbours, ..) 3) to encourage/transfer know-how and productivity on how to extract outputs from inputs (R&D, patents, institutions, ..) What does the Ramsey model suggest about this question? Explain in detail, supporting your answer with graphs, being explicit about the dynamics of the model and about how you interpret the policy within the model?

Using the Ramsey-Cass-Koopmans Model, what policy would best improve the economic development of a country? 1) to encourage its citizens to save 2) to gift/aid the country with items that support its production capacity (machineries, harbours, ..) 3) to encourage/transfer know-how and productivity on how to extract outputs from inputs (R&D, patents, institutions, ..) What does the Ramsey model suggest about this question? Explain in detail, supporting your answer with graphs, being explicit about the dynamics of the model and about how you interpret the policy within the model?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section: Chapter Questions

Problem 7SQP

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Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland. What recommendations would you give?
Ricardo’s economic growth model can be recognized as an endogenous model. True or False
In the Solow model in which y=Akα (where y is GDP per worker and k is capital per worker), compare the poverty trap model to the incentives model. Discuss whether the following statements are true or false in each model, using graphs and equations to explain and prove your conclusions:a. There exists some level of aid sufficient to get any poor country out of povertyb. There exists some threshold above which aid can be discontinued.c. A country’s long-run per capita income depends on where its per capita income is now.d. When the country is open to capital flows in or out, the main determinant of development is government policies and institutions e. Two pieces of evidence support the existence of poverty traps: (1) Growth of poor countries is slower than that of richer countries, and (2) Growth accelerates when a poor country exits poverty (explain why the poverty trap model predicts (1) and (2) and whether these predictions are confirmed by the data).
Why is the Malthusian model no longer regarded as an explanation for modern economies? What are the main differences between the Malthusian and the Solow models?
29)Which of the following statements is true about the Solow model in the long run? (choose one) - The standards of living of a country depend on the savings rate but not on the population growth - The standards of living of a country depend on population growth but not on the savings rate. - The standards of living of a country depend on neither population growth nor the savings rate. - The standards of living of a country depend on the savings rate and population growth. 30) Assume the two-sided search model. In the Nash bargaining solution: (choose one) -Wage is decreasing in UI benefits. -Wage is increasing in UI benefits. -UI benefits have an ambiguous effect on wages -Wage is not affected by UI benefits.
Which statements are TRUE? 11. Regardless of the process of development that a nation follows, complementarity of inputs is required. 12. In some poor countries, underdevelopment tends to perpetuate itself over time despite the onslaught of modern technology. 13. Urbanization, when centralized, leads to migration to and congestion of centers of development. 14. Underdevelopment is a point of equilibrium just as development is. 15. Pareto improvement is possible in situations where better Gini coefficient already exists. 16. In the process of development, pecuniary externalities can be totally avoided. 17. Technological externalities from advanced countries help in increasing the productivity of firms in developing countries. 18. Improving hard and soft infrastructure increase investments and trade of a nation. 19. The development of a nation is necessarily the function of governments but not necessarily of the individuals or the private sector. 20. O- Ring Model posits that there…
For each of the following scenarios, use the graphical depiction of the Malthusian model to illustrate what happens to a country’s population size and per-capita income in the short run and in the long run. a. Scientists discover a new strain of wheat that can produce twice as much grain per acre.   b. A war kills half of the population.   c. A volcanic eruption kills half the people and  destroys half the land.
Suppose Congress cuts spending for the military, and then unemployment rises in the Philippine defense industry. Is there causation in this situation, or are we observing an association between events?
According the Harrod-Domar and Solow models, what should countries do if they want to grow?
Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland. please conclude your findings
The table attached reports per capita GDP and capital per person in the year 2017 for 10 countries. Your task is to fill in the missing columns of the table.(a) Given the values in columns 1 and 2, fill in columns 3 and 4. That is, compute per capita GDP and capital per person relative to the U.S. values.(b) In column 5, use the production model (with a capital exponent of 1/3) to compute predicted per capita GDP for each country relative to the United States, assuming there are no TFP differences.(c) In column 6, compute the level of TFP for each country that is needed to match up the model and the data.(d) Comment on the general results you find.
If one of the two representatives at an international development conference defines ‘development’ as having high-rise buildings and modern architecture while the other defines ‘development’ as having high family values and strong moral standards, what kind of disagreement do you think they are engaged in and why do you think so? As a member of the organizing team seeking to bring development to all participating nations at the conference, do you think a stipulative definition is helpful? Justify your answer referencing our discussions in the course so far