Autarkic Indeterminacy and Trade Determinacy

Most existing evidences for indeterminacy are obtained from analyzing models that do not consider trade. This paper considers an extension of Nishimura and Shimomura (Journal of Economic Theory, 2002) Heckscher-Ohlin framework by removing sector-specific externalities in one country while maintaining all other assumptions previously made by the authors. We show that even though indeterminacy arises under autarky, it can be eliminated when trade takes place with another country exhibiting saddle-path stability. Consequently, support for indeterminacy from calibrating an autarkic framework should be treated with some degree of caution.Indeterminacy, Trade, Two-Country, Heckscher-Ohlin

Indeterminacy and market instability

This note shows that indeterminacy arising from an economy exhibiting production with social constant returns to scale may be related to the instability of the consumption goods market equilibrium. Furthermore, trade does not contribute to indeterminacy indeterminacy arises becasue each country's equilibrium path is already indeterminate before trade.

The Role of Families in Shaping Youth Social Participation: Evidence from Singapore

Youth participation in social groups is important in developing skills and experience for successful transition to adulthood. What kinds of families do youth who are active in social groups and who take on leadership positions come from? Using data from the National Youth Survey 2005, this research studies the social participation of Singaporean youth aged 15 -18. Through probit regression analysis, it examines how youth participation in Singapore is associated with two types of family characteristics. First, it examines the role of maternal education. As a proxy for social class, maternal education represents the roles of cultural capital formation and concerted involvement by middle class parents. Second, it studies the role of family challenge and support. Maternal education is found to predict both high participation and leadership. While additional family challenge induces greater participation, family support increases participation only when the level of support is high.youth participation; family challenge; family support; social class

Growth Accounting for a Follower-Economy in a World of Ideas : The Example of Singapore

In this paper, we take another approach to accounting for the sources of Singapores economic growth by being explicit about the channels through which Singapore, as a technological follower, benefits from international R&D spillovers. Taking into account the channels through which technology developed in the G5 countries diffuses to technological followers, we show that 57.5 percent of Singapores real GDP per worker growth rate over the 1970-2002 period is due to multifactor productivity growth. In particular, about 52 percent of the growth is accounted for by an increase in the effectiveness of accessing ideas developed by the technology leaders through improvement in our educational quality and increase in machinery imports and foreign direct investment from the G5 countries. We also find that capital accumulation that takes the form of imports of machinery as well as foreign direct investment from the G5 countries enhances the effectiveness of technology transfer thus raising the rate of return to capital. Compared to the rate of return to capital inferred from the traditional Solow growth model with purely exogenous technological progress of 10.8 percent, taking into account the technology transfer channel raises the implied rate of return to 13 percent.technological diffusion, idea production function, multifactor productivity growth

Indeterminacy and Market Instability

This note shows that indeterminacy arising from an economy exhibiting production with social constant returns to scale may be related to the instability of the consumption goods market equilibrium. Furthermore, trade does not contribute to indeterminacy; indeterminacy arises becasue each country’s equilibrium path is already indeterminate before trade.Indeterminacy, Market Instability

Service Links and Wage Inequality

In our general equilibrium model, the variety of specialized service links affects international production fragmentation in manufacturing. Decreases in cost of education or fixed cost of service links raise the relative supply of skilled workers, increase service specialization, and decrease the price of aggregate services. Consequently, the market for service- and skill-intensive component manufacturing enlarges, raising relative demand for skilled workers. Empirically, endogenous change in international outsourcing rather than skill-biased technological progress is the main reason for a modest decline in wage gap despite the rapid rise in relative supply of skilled workers in Singapore from 1978 to 2000.Production Fragmentation; Service Links; Wage Inequality; Singapore; Technological Progress

Growth Accounting for a Follower-Economy in a World of Ideas: The Example of Singapore

In this paper, we take another approach to accounting for the sources of Singapore’s economic growth by being explicit about the channels through which Singapore, as a technological follower, benefits from international R&D spillovers. Taking into account the channels through which technology developed in the G5 countries diffuses to technological followers, we show that 57.5 percent of Singapore’s real GDP per worker growth rate over the 1970-2002 period is due to multifactor productivity growth. In particular, about 52 percent of the growth is accounted for by an increase in the effectiveness of accessing ideas developed by the technology leaders through improvement in our educational quality and increase in machinery imports and foreign direct investment from the G5 countries. We also find that capital accumulation that takes the form of imports of machinery as well as foreign direct investment from the G5 countries enhances the effectiveness of technology transfer thus raising the rate of return to capital. Compared to the rate of return to capital inferred from the traditional Solow growth model with purely exogenous technological progress of 10.8 percent, taking into account the technology transfer channel raises the implied rate of return to 13 percent.technological diffusion, idea production function, multifactor productivity growth

Growth Accounting for a Follower-Economy in a World of Ideas: The Example of Singapore

In this paper, we take another approach to accounting for the sources of Singapore’s economic growth by being explicit about the channels through which Singapore, as a technological follower, benefits from international R&D spillovers. Taking into account the channels through which technology developed in the G5 countries diffuses to technological followers, we show that 57.5 percent of Singapore’s real GDP per worker growth rate over the 1970-2002 period is due to multifactor productivity growth. In particular, about 52 percent of the growth is accounted for by an increase in the effectiveness of accessing ideas developed by the technology leaders through improvement in our educational quality and increase in machinery imports and foreign direct investment from the G5 countries. We also find that capital accumulation that takes the form of imports of machinery as well as foreign direct investment from the G5 countries enhances the effectiveness of technology transfer thus raising the rate of return to capital. Compared to the rate of return to capital inferred from the traditional Solow growth model with purely exogenous technological progress of 10.8 percent, taking into account the technology transfer channel raises the implied rate of return to 13 percent.technological diffusion, idea production function, multifactor productivity growth

Autarkic Indeterminacy and Trade Determinacy

We extend the model of Nishimura and Shimomura (2002) to consider a two-country framework where under autarky indeterminacy arises in one country but determinacy in the other, and show that indeterminacy could be eliminated when trade takes place between the two.Indeterminacy, Trade, Two-Country Framework.

Intergenerational Earnings Mobility in Singapore and the United States

This study compared intergenerational earnings mobility in Singapore and the United States by replicating the limitations in the Singapore National Youth Survey on the U.S. Panel Study of Income Dynamics. The mean estimated earnings elasticities are almost identical: 0.26 in Singapore and 0.27 in the United States. Transformed to 0.45 and 0.47 respectively to reflect permanent status, mobility in the two countries is moderately low compared internationally. The finding of similar mobility is not surprising given that the economic realities, welfare systems, education regimes, and labor structures in the two countries are similar. Policy makers face the daunting challenge of overcoming immobility and inequality while maintaining global competitiveness.Intergenerational earnings mobility; Singapore; United States