Estimating the ‘Missing Equations’ for Developing Countries
Masanori Amano
Chapter 2 in Money, Capital Formation and Economic Growth, 2013, pp 22-36 from Palgrave Macmillan
Abstract:
Abstract This chapter will discuss how annual nominal income change is divided between output change and the price (level) change. The concept is phrased alternatively as the nominal income elasticities of output (eo) and the price level (ep), respectively, where eo+ep=1, as is shown later on. Also, the elasticities of positive fraction correspond to the intermediate situations between the two cases with which Friedman (1970) closed his macro models: quantity theory and income-expenditure theory. Quantity theory and income-expenditure theory are represented by eo = 0 and eo = 1, respectively. Here, one cannot fail to mention the concept of eo and ep in Keynes (1936, chs 20 and 21).
Keywords: Price Level; Output Growth; Money Supply; Technical Progress; Capital Formation (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-28183-8_2
Ordering information: This item can be ordered from
http://www.palgrave.com/9781137281838
DOI: 10.1057/9781137281838_2
Access Statistics for this chapter
More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().