The neoclassical model and the welfare costs of selection

IF 2.3 3区 经济学 Q2 ECONOMICS
Fabrice Collard , Omar Licandro
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引用次数: 0

Abstract

This paper embeds firm dynamics into the Neoclassical model in a framework with partially reversible capital and investment distortions, allowing for a simple characterization of the transitional dynamics of economies moving towards greater selection. At equilibrium, aggregate technology is Neoclassical, with the quality of capital and the depreciation rate depending on selection. As investment distortions are corrected, selection increases, and both output per capita and welfare rise at the steady state. However, selection destroys existing production capacities, leading to transitional welfare losses. When calibrated to the US, the model shows that developing countries reducing investment distortions to US levels would experience substantial steady-state welfare gains, though transitional costs could absorb 70% to 76% of these gains. While the associated welfare gains from selection at steady-state are significant, between 10% and 23%, transitional costs largely offset these additional welfare gains.
新古典模型与选择的福利成本
本文在资本和投资扭曲部分可逆的框架下,将企业动态嵌入到新古典主义模型中,从而可以简单地描述经济向更大选择过渡的动态。在均衡状态下,总技术是新古典主义的,资本的质量和折旧率取决于选择。随着投资扭曲得到纠正,选择增加,人均产出和福利都在稳定状态下上升。然而,选择破坏了现有的生产能力,导致过渡性福利损失。当将其调整到美国时,该模型显示,将投资扭曲程度降低到美国水平的发展中国家将获得可观的稳态福利收益,尽管过渡成本可能会吸收这些收益的70%至76%。虽然在稳定状态下选择的相关福利收益显著,在10%到23%之间,但过渡成本在很大程度上抵消了这些额外的福利收益。
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来源期刊
CiteScore
3.30
自引率
0.00%
发文量
69
期刊介绍: Review of Economic Dynamics publishes meritorious original contributions to dynamic economics. The scope of the journal is intended to be broad and to reflect the view of the Society for Economic Dynamics that the field of economics is unified by the scientific approach to economics. We will publish contributions in any area of economics provided they meet the highest standards of scientific research.
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