Tobin, J. (1965). Money and economic growth. Econometrica 33: 671-684.Tobin, James. 1965. "Money and Economic Growth." Econometrica, 33(4): 671-684.Tobin, J. (1965). Money and economic growth. Econometrica, 33(October), 671-684....
It is shown that an increase in longevity raises the balanced growth rate and lowers the inflation rate, offsetting the Tobin effect, if spillovers from accumulated capital to labor productivity sufficiently raise wage income and real savings, and, if not, it may retard economic growth and ...
Johnson, Tobin et al.). This holds that in equilibrium growth M ‘=dt .fi = SY + (5 - 1) (iii - P) p These are not uncommon conflicts of expression amongst economists. The term ‘neoclassical’ appears to have no single generally accepted definition in the profession and this is ...
Empirical results often seem to contradict the prediction of economies of scale in money holdings of the Baumol-Tobin model. The difference between theory and results might, however, be caused by an under-estimation of transactions by the usual proxy GNP. An illustration is given by estimates of...
Part Two: Overviews of the Textbook Chapters and Teaching Tips 29 Chapter 5 The Behavior of Interest Rates As is clear in the Preface to the textbook, I believe that money and banking is taught effectively by emphasizing a few economic principles and then applying them over and over again to...
Reserves and cash are just overnight government debt. Cochrane is correct, as James Tobin explained over 60 years ago, that inside money supplied by banks is not inherently inflationary. But what is true of bank liabilities, which are redeemable on demand for government issued outside money, ...
Even if we could imagine that humanity inherited “manna from heaven” (Friedman said we can just assume money is dropped into the economy by helicopters) to get the monetary economy going—say, an initial endowment of a million dollars—how do we explain profits, interest, and growth? If ...
* In the Baumol-Tobin model, we assume that the consumer’s wealth is divided between cash on hand and savings account deposits. The savings account pays interest rate i, while cash pays no nominal interest. Alternatively, we can think of “money” in the Baumol-Tobin model as representing...