Specificity and the Macroeconomics of Restructuring

Released on by Ricardo J. Caballero
preview-18

  • Specificity and the Macroeconomics of Restructuring Book Detail

  • Author : Ricardo J. Caballero
  • Release Date : 2007
  • Publisher : MIT Press
  • Genre : Asset specificity
  • Pages : 349
  • ISBN 13 : 0262033623
  • File Size : 79,79 MB
DOWNLOAD BOOK

Specificity and the Macroeconomics of Restructuring by Ricardo J. Caballero PDF Summary

Book Description: A proposal that the notion of specificity -- the idea that factors of production are not interchangeable -- can provide a unified framework to analyze and understand a wide variety of macroeconomic phenomena stemming from the transactional environment and microeconomic restructuring. The core mechanism that drives economic growth in modern market economies is massive microeconomic restructuring and factor reallocation -- the Schumpeterian "creative destruction" by which new technologies replace the old. At the microeconomic level, restructuring is characterized by countless decisions to create and destroy production arrangements. The efficiency of these decisions depends in large part on the existence of sound institutions that provide a proper transactional environment. In this groundbreaking book, Ricardo Caballero proposes a unified framework to analyze and understand a wide variety of macroeconomic phenomena stemming from limitations, especially institutional, that hinder these adjustments. Caballero argues that macroeconomic models need to be made more "structural" in a precise sense and can not be maintained on the assumption that decisions are fully flexible. What is needed, he proposes, is the notion of specificity -- the idea that factors of production are not freely interchangeable. Many of the major macroeconomic developments of recent decades, he argues, fit naturally into this perspective, including the transition problems of Eastern Europe, the heavy weight of labor regulations in Western Europe, the emerging market crises of the 1990s, the prolonged expansion of the U.S. economy, and Japan's stagnation following the collapse of its real estate bubble. After describing the basic arguments of the book and developing models to illustrate two different kinds of specificity (relationship specificity and technological specificity), Caballero analyzes a variety of aspects of inefficient restructuring and revisits perennial business cycle patterns such as the cyclical behavior of unemployment, investment, and wages. Finally, he looks at the endogenous response of political institutions and technology to opportunistic exploitation of relationship specificity. Economists working on macroeconomics, development, growth, labor, and productivity issues will find Caballero's conceptual framework applicable to phenomena in their fields.

Disclaimer: www.yourbookbest.com does not own Specificity and the Macroeconomics of Restructuring books pdf, neither created or scanned. We just provide the link that is already available on the internet, public domain and in Google Drive. If any way it violates the law or has any issues, then kindly mail us via contact us page to request the removal of the link.

Law and Macroeconomics

Law and Macroeconomics

File Size : 17,17 MB
Total View : 4886 Views
DOWNLOAD

After 2008, private-sector spending took a decade to recover. Yair Listokin thinks we can respond more quickly to the next meltdown by reviving and refashioning

Marshall and Schumpeter on Evolution

Marshall and Schumpeter on Evolution

File Size : 19,19 MB
Total View : 8256 Views
DOWNLOAD

This collection of essays offers a fresh and challenging interpretation which departs from the received views of two giants among the greatest economists of all