Endogenous Growth Model, Distance to Frontier, and Labour Market Institutions
| Thesis title in Czech: | Endogenní model růstu, vzdálenost k technologické hranici a instituce na trhu práce |
|---|---|
| Thesis title in English: | Endogenous Growth Model, Distance to Frontier, and Labour Market Institutions |
| Key words: | Pojištění v nezaměstnanosti, Vzdálenost k hranici, Endogenní model růstu, Technologický růst, Ekonomický růst |
| English key words: | Unemployment Insurance, Distance to Frontier, Endogenous Growth Model, Technology Growth, Economic Growth |
| Academic year of topic announcement: | 2014/2015 |
| Thesis type: | diploma thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | PhDr. Jaromír Baxa, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 24.04.2015 |
| Date of assignment: | 24.04.2015 |
| Date and time of defence: | 22.06.2016 11:00 |
| Venue of defence: | IES |
| Date of electronic submission: | 11.05.2016 |
| Date of proceeded defence: | 22.06.2016 |
| Opponents: | Mgr. Vědunka Kopečná, Ph.D. |
| URKUND check: | |
| Guidelines |
| This thesis will introduce its own discrete economy based on EGM. The original EGM model will be extended by a process of accepting a job offer – search model. All economic agents involved in the economy will solve their problems as dynamic programming problems and the whole economy will be studied under the assumption of balanced growth.
The contribution of the thesis is to extend existing EGM by introducing labour market institutions. To the best of my knowledge, there has been no literature studying the optimal labour market institutions (e.g., unemployment benefits, minimum wage, and mobility) under different distances to the technology frontier. This thesis is expected to reveal the relationship between the optimal level of unemployment benefits and distance to the technology frontier. |
| References |
| Acemoglu, D., Aghion, P., & Zilibotti, F. (2006). Distance to Frontier, Selection, and Economic Growth. Journal of the European Economic association, 4(1), 37-74.
Aghion, P. (2002). Schumpeterian Growth Theory and the Dynamics of Income Inequality. Econometrica, 70(3), 855-882. Aghion, P., Akcigit, U., & Howitt, P. (2013). What Do We Learn from Schumpeterian Growth Theory? (No. w18824). National Bureau of Economic Research. Aghion, P., & Howitt, P. (1992). A Model of Growth through Creative Destruction. Econometrica, 60(2), 323-351. Lingens, J. (2003). The Impact of a Unionised Labour Market in a Schumpeterian Growth Model. Labour Economics, 10(1), 91-104. Lin, J.Y., (2015, Jan 29). [Blog] How Fast Will China Grow? http://www.project-syndicate.org/commentary/china-2015-five-year-plan-by-justin-yifu-lin-2015-01#uZW10mTDqMOXXRfB.99 Nickell, S., & Layard, R. (1999). Labor Market Institutions and Economic Performance. Handbook of labor economics, 3, 3029-3084. Rogerson, R., Shimer, R., & Wright, R. (2004). Search-theoretic models of the labor market-a survey (No. w10655). National Bureau of Economic Research. Vandenbussche, J., Aghion, P., & Meghir, C. (2004). Growth, Distance to Frontier and Composition of Human Capital. Journal of economic growth, 11(2), 97-127. Zhang, J., (2014, Jan 20). [Blog] Making Sense of China’s Growth Model. http://www.project-syndicate.org/commentary/jun-zhang-argues-that-the-dichotomy-of-extensive-and-intensive-growth-is-a-red-herring-when-it-comes-to-china-and-other-asian-economies#p2v7OKFHQYDXlO3o.99 |
| Preliminary scope of work |
| The structure of the thesis will be as follows.
(i) Introduction shall motivate why developing counties that approach the technology frontier should consider implementing new institutions. (ii) Literature review will consist of two parts; firstly the literature related to EGM and, secondly, Search models literature will be reviewed. (iii) The model shall be introduced and solved. (iv) Case study: The theoretical results from the model will be showed in light of the case of China. (v) Conclusion shall summarize both the theoretical model and the case study. |
| Preliminary scope of work in English |
| Hypotheses:
Appropriate labour market institutions are contingent on the distance to the technology frontier: (i) Higher unemployment benefits in developing countries slow down economic growth. (ii) Higher unemployment benefits in developed countries increase the rate of innovation. (iii) Overall effect of unemployment benefits on economic growth in developed countries is ambiguous. |