Saturday, 27 March 2010: 11:35
This paper clarifies policy-oriented characteristics of twenty-eight countries in Europe, mature and developing, using nine endogenous parameters measured at the data-sets of KEWT (Kamiryo Endogenous World Table) 4.10-1, 1990-2008, by country and by sector (government and private). Twenty-eight countries in the data-sets are divided into three sub-areas; twelve Euro currency countries out of sixteen members, five developed countries, and eleven developing countries including Russia and Turkish. The author pays attention to policy-oriented classification that divides these countries into mature and developing, aiming at a balanced growth and stop-inequality.
KEWT is policy-oriented data-sets while the data-sets of IMF, OECD, and EUROSTAT are statistics-oriented. Statistics has its own purpose and cannot directly express policy-oriented data-sets. Policy-oriented data-set by country, sector, and year measures, in equilibrium, nine endogenous parameters (determinants useful to plan-do-see by year), using the endogenous Cobb-Douglas production function. Endogenous equilibrium is measured instead of the price equilibrium in the literature. The author endogenously found nine parameters hidden in the Harrod-Domar (1947, 1948) model and Solow (1956) model. In particular, beta, delta, and lambda present a base for the mechanism of endogenous equilibrium. The mechanism of endogenous equilibrium reveals not only the level of economic stages but also priority policies towards a balanced growth and stop-inequality by country. Furthermore, endogenous parameters are derived in the real assets but, are tightly related to currency money supply, the inflation/deflation rates (endogenous and external), and the exchange rate so that fiscal and financial policies are integrated with the real assets in the endogenous model.
First of all, an economy becomes sustainable by aiming at an optimum range of equilibrium by sector, using the speed of convergence, 1/lambda. An endogenous rate of technological progress is measured by the product of the ratio of net investment to output/income and the qualitative share of net investment, 1−beta. Improvement of inequality by country is measured by the endogenous relative share of labor, alpha, which is related tightly with the coefficient of diminishing returns, delta. The value of delta controls the capital-output ratio and the qualitative share of net investment. The author proposes specific policies by country, using the results of these nine endogenous parameters and making alive national culture and preferences, and also proposes joint common policies between developed and developing countries. The EU has already attained the first stage of great experiments at the EMU. The EU is now able to use a new endogenous methodology to integrate policies between developed and developing countries
KEWT is policy-oriented data-sets while the data-sets of IMF, OECD, and EUROSTAT are statistics-oriented. Statistics has its own purpose and cannot directly express policy-oriented data-sets. Policy-oriented data-set by country, sector, and year measures, in equilibrium, nine endogenous parameters (determinants useful to plan-do-see by year), using the endogenous Cobb-Douglas production function. Endogenous equilibrium is measured instead of the price equilibrium in the literature. The author endogenously found nine parameters hidden in the Harrod-Domar (1947, 1948) model and Solow (1956) model. In particular, beta, delta, and lambda present a base for the mechanism of endogenous equilibrium. The mechanism of endogenous equilibrium reveals not only the level of economic stages but also priority policies towards a balanced growth and stop-inequality by country. Furthermore, endogenous parameters are derived in the real assets but, are tightly related to currency money supply, the inflation/deflation rates (endogenous and external), and the exchange rate so that fiscal and financial policies are integrated with the real assets in the endogenous model.
First of all, an economy becomes sustainable by aiming at an optimum range of equilibrium by sector, using the speed of convergence, 1/lambda. An endogenous rate of technological progress is measured by the product of the ratio of net investment to output/income and the qualitative share of net investment, 1−beta. Improvement of inequality by country is measured by the endogenous relative share of labor, alpha, which is related tightly with the coefficient of diminishing returns, delta. The value of delta controls the capital-output ratio and the qualitative share of net investment. The author proposes specific policies by country, using the results of these nine endogenous parameters and making alive national culture and preferences, and also proposes joint common policies between developed and developing countries. The EU has already attained the first stage of great experiments at the EMU. The EU is now able to use a new endogenous methodology to integrate policies between developed and developing countries