Global Effects of US “New Economy” Shocks: the Role of Capital-Skill Complementarity
Rodney Tyers and
Yongzheng Yang
No 125983, 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia from Australian Agricultural and Resource Economics Society
Abstract:
We characterise “new economy” shocks as capital or skill augmentation, associated with the increasing prominence of computers in the capital stock particularly in the US, and an increase in US investment at least partially financed from abroad. A short-run comparative static analysis of these shocks using a global comparative static multi-product macroeconomic model confirms that the US technology shocks alone expand the US and global economies. The investment shock, however, is associated with a flood of foreign savings into the US economy the effects of which are more "zero sum” in nature. In the US the technology shocks alone advantage agriculture and mining by more with capital-skill complementarity but they are disadvantaged, however, by the real exchange rate effects of the investment shock. The combined US shocks contract the Canadian and Australasian economies though the net effects on their agricultures are small and mining gains.
Keywords: Research; and; Development/Tech; Change/Emerging; Technologies (search for similar items in EconPapers)
Pages: 27
Date: 2001-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
https://ageconsearch.umn.edu/record/125983/files/Tyers.pdf (application/pdf)
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:ags:aare01:125983
DOI: 10.22004/ag.econ.125983
Access Statistics for this paper
More papers in 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().