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A Dynamic Model of the choice of technology in Economic Development

Frontiers of Economics in China-Selected Publications from Chinese Universities 2016年第3期11卷 498-518页

作者： Haiwen Zhou Ruhai Zhou Department of Economics Old Dominion University Norfolk VA 23529 USA Department of Mathematics and Statistics Old Dominion University Norfolk VA 23529USA

In this overlapping-generations model, there is unemployment in the manufacturing sector. Manufacturing firms engage in oligopolistic competition and choose technologies to maximize profits. With capital as a fixed cost of production, increasing returns in the manufacturing sector exist. In the unique steady state, first, when individuals become more patient, the savings rate increases while the level of an individual＇s income decreases. Second, an increase in population or percentage of income spent on manufactured goods does not change steady-state technology while the level of an individual＇s income decreases. Third, an increase in the wage rate leads manufacturing firms to choose more advanced technologies and the steady-state capital stock increases. Finally, an increase in the level of subsidies to technology adoption does not change steady-state technology.

关键词： choice of technology overlapping-generations model unemploy-ment economic development increasing returns

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The choice of technology and Equilibrium Wage Rigidity

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Frontiers of Economics in China-Selected Publications from Chinese Universities 2015年第2期10卷 252-271页

作者： Haiwen Zhou Department of Economics Old Dominion University Norfolk VA 23529 USA

In this general equilibrium model, firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Capital and labor are the two factors of production. The existence of efficiency wages leads to unemployment. The model is able to explain some interesting observations of the labor market. First, even though there is neither long-term labor contract nor costs of wage adjustment, wage rigidity is an equilibrium phenomenon： an increase in the exogenous job separation rate, the size of the population, the cost of exerting effort, and the probability that shirking is detected will not change the equilibrium wage rate. Second, the equilibrium wage rate increases with the level of capital stock. Third, a higher level of capital stock does not necessarily reduce the unemployment rate. That is, there is no monotonic relationship between capital accumulation and the unemployment rate.

关键词： unemployment efficiency wages wage rigidity choice of technology oligopolistic competition

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Intermediate Inputs and External Economies

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Frontiers of Economics in China-Selected Publications from Chinese Universities 2014年第2期9卷 216-239页

作者： Haiwen Zhou Department ofEconomics Old Dominion University Norfolk VA 23529 USA

Is the degree of external economies （at the industry level） higher than the degree of internal increasing returns （at the firm level）？ If so, what is the exact source of this difference？ In the general equilibrium model in which firms producing final goods choose the degree of specialization of their technologies, external economies arise from the usage of intermediate inputs and the existence of internal increasing returns. It is frequently assumed that increasing returns are absent at the firm level while present at the industry level. In this model, the existence of increasing returns at the form level is necessary for the existence of external economies at the industry level. We show that the degree of external economies increases with the level of linkage effects. However, a higher linkage effect does not always lead firms to choose more specialized technologies.

关键词： external economies internal increasing returns linkage effects choice of technology oligopolistic competition

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Unemployment and Economic Integration for Developing Countries

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Frontiers of Economics in China-Selected Publications from Chinese Universities 2015年第4期10卷 664-690页

作者： Haiwen Zhou Department of Economics Old Dominion University Norfolk VA 23529 USA

While financial or trade integration between countries may mcrease the size of the market and aid the adoption of more advanced technologies, will it also increase the level of urban unemployment for a developing country？ In this model, there is unemployment in the urban sector. Manufacturing firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Financial firms provide capital to manufacturing firms and they also engage in oligopolistic competition. We show that an increase in the wage rate in the manufacturing sector changes neither the level of technology nor the level of employment in the manufacturing sector. While financial or trade integration between developing countries leads manufacturing firms to adopt more advanced technologies, the level and rate of employment in the manufacturing sector will not deteriorate.

关键词： unemployment economic development financial integration,international trade choice of technology

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