Growth Theories Of Growth And Growth Models - 2256 Words

Growth Theories Under the growth theories some theories of growth and growth models will be reviewed; i) The Harrod-Domar Growth Model In economic literature, this model is called capital only model. Harrod and Domar (1948) took over from Rostow, because Rostow had some unanswered questions. The model stated that saving is a certain proportion of national income and net investment is defined as the change in capital stock (K). The model further assumes that there is some direct relationship between the size of the capital stock, (K), and total GNP, (Y). This follows that any addition to the capital stock in the form of new investment will bring about corresponding increase in the flow of national output, GNP. This relationship is known in economics as the capital-output ratio. If the capital-output ratio is defined as k and assume further that the national savings ratio, s, is a fixed proportion of national output (e.g. 6%) and that total new investment is determined by the level of total savings, we can construct the following simple model of economic growth Balami (2006). Savings (S) is some proportion, S, of national income (Y) such that we have the simple equation S = SY †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ (2.1) Net investment (I) is defined as the change in the capital stock, K, and can be represented by ΔK such that I = ΔK †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. (2.2) But because the total capital stock, K, bears a direct relationship to total national income or output, Y, asShow MoreRelatedTheories Of Growth And Growth Models2257 Words   |  10 Pages2.2.3 Growth Theories Under the growth theories some theories of growth and growth models will be reviewed; i) The Harrod-Domar Growth Model In economic literature, this model is called capital only model. Harrod and Domar (1948) took over from Rostow, because Rostow had some unanswered questions. The model stated that saving is a certain proportion of national income and net investment is defined as the change in capital stock (K). The model further assumes that there is some direct relationshipRead MoreDividend Theory And Growth Model1177 Words   |  5 Pagesvaluation of firm. Besides this, the market where long term investment like share bonds are traded is capital market. In the following paragraphs, i will put my emphasis on both issues the dividend relevance theory along with roles and importance of capital market. Dividend relevance theory and Growth model Overview of dividend policy The term â€Å"dividends† indicates to the distribution of earnings to shareholders, primarily in the form of cash and after a company has distributed dividends to preferred shareholdersRead MoreThe Theory Of Economic Growth Model2281 Words   |  10 Pagesnotice vast differences in average real incomes, countries’ growth records and in standards of living over times that affect living human welfare. Many model mechanisms have been used to study the worldwide growth and income differences across countries. A fundamental model that economist have used to study these issues is the Solow growth model. This essay concentrates on the analysis of this model. Firstly, the derivation of the model will be demonstrated including the needed assumptions. ThenRead MoreEconomic Growth Theories and Models, A section of a Research Paper1524 Words   |  6 PagesLiterature review Classical Theory of Economic Growth Harrod Domar Growth Model The Neoclassical growth Model Empirical literature 2.1 Theoretical Literature The long history of ideas on economic growth started from the classical economists like Adam Smith, Robert Malthus, Ricardo and Marx. For more than three decades the Neoclassical and the Endogenous Growth theories were arguing and forwarding economic reasons on trend of economic growth through investment as a general and private investmentRead MoreA Brief Note On The Growth Theory And The Dual Sector Model Of Economic Development Essay3646 Words   |  15 Pages ENDOGENOUS GROWTH THEORY BY MARTIN RIITHO MAINA KCA 14/02073 A Term Paper submitted to Prof. Joseph Ongeri in fulfilment Of the requirements for the course Advanced Macro-Economics, as credit towards the degree of Master of Science (Finance and Economics) KCA UNIVERSITY November, 2014 â€Æ' TABLE OF CONTENTS Page 1.0 Abstract.†¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦.†¦..3 1.1 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.........................................4 2.0 Literature review: Models†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreThe Long Run Causality Direction Between Financial Markets Development And Economic Growth1716 Words   |  7 PagesThis thesis investigates the long-run causality direction between financial markets development and economic growth in Croatia, Slovenia, Serbia and China for varying time periods using VAR models and Granger Causality methods. It also explores the interrelationships between variables using the Impulse Response Function. Financial industry consists of two main parts; debt and equity (Krugman and Obstfeld, 2009). These are also called debt and equity markets. Credit markets which are primarily consistedRead MoreThe Theory Of Economic Growth Theory1703 Words   |  7 Pagesand there are many models to explain economic growth. In the history of the development of economic growth theories, there are three important stages which a re the Classical Growth theory, the Neoclassical Growth theory and the Endogenous Growth theory. To start with, the Classical Growth theory is based on the Keynesian theory and the representative one is the Harrod–Domar model. It was put forward by Roy F. Harrod in 1939 and Domar in 1946. This is the first economic growth model, changing the researchRead MoreWhy Are Some Countries Rich While Others Poor?1502 Words   |  7 Pageswhile others poor. This is a question about economic growth. Take Korea for example. Korea had been divided into North and South Korea since 1948. These two countries share nearly the same geography, history and culture. However, the GDP per capita in the South Korea is only 3.22% of the South Korea. Another phenomenon is that the rapid growth had been observed in East Asian in recent years. This is another key economic issue: whether the growth rate of poor economics are higher than developed onesRead MoreNeo Classical Model1134 Words   |  5 Pag esNeo classical theory: An economic theory that outlines how a steady economic growth rate  will be accomplished with the proper amounts of the three driving forces: labor, capital and technology.  The theory states that by varying the amounts of labor and capital in the production function, an equilibrium state can be accomplished. When a new technology becomes available, the labor and capital need to be adjusted to maintain growth equilibrium. This theory emphasizes that technology changeRead MoreThe Neo-Malthusian Population theory assumes that poor nations will never be able to rise much above subsistence levels unless they engage in preventive population checks, if not positive checks.1445 Words   |  6 Pagesstated the Neo-Malthusian population theory claims that poor nations are stuck in a cycle of poverty which they cant get out of unless some sort of preventative measures of population checks are engaged. The Malthusian model was developed two centuries ago by a man named Thomas Malthus. Malthuss model is based upon a relationship between both population growth as well as economic development. Empirical studies now-a-days show that the population theory model is quite flawed because of many factors

Future Career Perspectives in Applied Behavioral Science Essay

Essays on Future Career Perspectives in Applied Behavioral Science Essay The paper "Future Career Perspectives in Applied Behavioral Science" is a great example of an essay on psychology. I am an Applied Behavioral Science Major student and plan to venture into private practice after graduation. The move will give a chance to help save marriages by becoming a marriage counselor. The practice will give me a chance to apply the skills taught to me and help my community. Applied psychology is the practice use of methods and findings in psychology to evaluate and solve practical behavioral problems in the life of humans and animals. Applied psychology work in sync with evidence-based practice. The evidence-based practice utilizes three main arms that are essential to my future practice. They include clinical expertise, patient value preference, and best research evidence. The Clinical expertise part I am getting in class and field attachments. Patient value and preference are unique to each case that I will be handled in private practice. The best research evidence is necessary for the practice and this is from reading medical publications, books, and journals to update me on newly proven techniques that work based on the evidence. It is necessary to ensure the techniques that I apply to work and save marriages from divorces. Statistics ion the United States of America reveals a high rate of cases of divorce in the country. Tori DeAngelis research in a periodical â€Å"The Couple Doctor† Reveal more of the evidence-based practice saves marriages. Her study compeers the sharing of methods that have been proved to work and working in solitude results (DeAngelis, 2011). In conclusion, for a successful career, it is important to be always updated on the most effective and research-proven methods that work to achieve perfect results.

Obama’s Health Care Reform Free Essays

Obama’s Health Care Reform Building the universal health care system is one of the campaign promises of the Obama administration. Health care occupies a special place on public finance; it’s different with other goods markets in the daily life. It’s one of the important issues for the government, which associated with people’s life and death. We will write a custom essay sample on Obama’s Health Care Reform or any similar topic only for you Order Now People have high quality health care is a right of all people and should provide as a public service. People got their health insurance from the working companies, the government, or the insurance companies. The health care reform is the large part in Barack Obama’s presidency. On March. 23rd, 2010, finally the Patient Protection and Affordable Care Act became law. Obama wants to use health care reform to stimulates the economy in the short run, but also reduce the deficit problem in the long run. This health care reform is the most important transition for the US. As we known US is the only developed countries which doesn’t have universal health coverage, it has more than 40 millions who don’t have health care insurance, also some family can’t afford the high health insurance cost. Also the public funds for the health care are also high; the US has the high cost health care but inefficient operation system. Now the aging problem become more serious, it has more retirees, the elders need more health care, and this increases the pressure of the health care insurance, increase the cost of the health care; also some technique widely used caused the expenditure increase†¦ The Obama’s health care plan quickly increase the number of people who have health care insurance by spending money upfront. The Act includes the health insurance providers are mandated to accept person, charging them the same rate as individuals without conditions; extend the coverage, provides more subsidies to the poor people to get the insurance, provide affordable health coverage for all Americans, no matter that are rich or poor; people have choice to select their insurance and doctors, it aims to eliminate some worst practices of the insurance company; reduce the cost and make health insurance more effective. The US would keep the employee-based health insurance to cover most Americans, also create a public insurance system for people who do not have insurance. The employers have to pay into the system for the employees or provide health care insurance as good as the federal system. Also individuals would pay into the public system, the government would give subsidy to lower the cost and make them affordable for the low-level class. As a family, 38% think that the life would be better off, 43% think that there’s no change; As the whole country, we find that 59% think the country will do better after health care reform, 19% think that there would be no change after reform, 12% think their life would be worse off. So to the whole country, most of people support the reform. Actually, this reform brings the US many changes. To the whole US citizen, it extends coverage through mandated. The health care plan will provide affordable and efficient health insurance coverage for most Americans. So people who in the middle-level class or low-level class have ability to join into this health care plan. They all have right to get high quality health care. US expand the Medicaid range, give subsidy insurance premium to someone were poverty; creating a â€Å"national health insurance exchange†, it’s control by the government and sell insurance to people who don’t have health insurance; As shown in the graph, using the health care plan, the share of the population with health insurance coverage would increase to 93. 3% in 2019, spend about 20. 9% GDP on health care, means that government care more about people’s health. Change the US health care system to lower cost but high quality system. Obama put forward that â€Å"antitrust laws to prevent insurers from overcharging physicians for malpractice insurance. † This not only reforms the medical malpractice system, regulate the insurance company, but also improve the efficiency of the whole system, improve patient safety. The most important part of Obama’s policy is make investment in health information technology, this strategy nor only improve the health care quality, also reduce the cost in long run society. He provides a competitive insurance market to promote more efficient and more competition. Promoting prevention and strengthening public health. In previous health care plan, less than one in twenty five goes for prevention. Obama’s notion of the health care plan is â€Å"to create the conditions and opportunities that allow and encourage Americans to adopt healthy lifestyles. † Prevention is the national priority, providing opportunities to have healthy lifestyle and keep disease away. .. For example, have more primary care provider and disease prevention program, established National Prevention, Health Promotion†¦ these federal agencies would help to build good promotion and prevention for the country. The government provides special funds for promotion and prevention; this would improve the quality of health care, improve the public health strategy and develop the new technology; provide new prevention technology information and regular screening for people†¦government provide such services to prevent disease by healthy lifestyle. The reform not only affects the health care, but also the economy. The most important impact on industry is the insurance industry. As the demand and for insurance increase because the regulation on employers, also the supply decrease the price is low due to the regulation, this would decrease the cost of health insurance. Recent years, insurance industry is overhead, by this health care reform, it reduces the overhead status and reduces the competition in this industry. Obama’s plan regulate the insurance industry by providing new purchasing pools, standards the health care package, reducing expenses, promoting competition†¦without the reform, government spending on Medicare and Medicaid is unsustainable, also raising during years, by this, the family save a lot. The reform has regulation on employers should provide health insurance to the employees. Also to some small business, the government provide special subsidy fund to help them build the health care plan†¦ Obama’s plan tries to overhaul the previous health care system. He stands as the patient, the health care provider, employers, employees, government†¦ attempt to change aspect from different person’s opinion. This reform changes the current health care system and affects the economy, to build a universal health care system. It has variety advantages, but also it has some problems. Like government require employees to provide employers health insurance if they don’t have. To employers, this is not good news, basically, this increase their cost of hiring employers, and means that they should hire less people by the same amount spending. Also American is a democratic state; people have their own right to choose what they want. Obama’s opinion is build the universal health care system, but realization way is force all people to buy health insurance, people lost their right; at the same time, they should provide personal information to the insurance company, including their habits. The most important is government power expansion to the health insurance; Americans lost their own medical decision, the decision power transfers to the government. Also there’s problem whether the cost containment strategies going to support this universal health cares system in long run†¦ Now it’s hard to say the future of this health care reform, weather is good to public, or have some problem, time would tell us the truth. According to the short term, the reform is good for Americans and the economics also good for the people who cannot afford the insurance. It has positive impact on the society, become one of a big jump in the history. Citation: 1. http://www. calpoly. edu/~efisher/Econ%20464/NicoleWallen%20Senior%20Project. pdf 2. http://en. wikipedia. org/wiki/Health_care_reform_in_the_United_States 3. http://healthpolicyandmarket. blogspot. com/2008/03/detailed-analysis-of-barack-obamas. html 4. http://www. bing. com/images/search? q=health+care+obama+planFORM=BIFD How to cite Obama’s Health Care Reform, Papers