Two sector economy

We introduce a hypothetical two-sector economy from Miller and Blair (2009) to illustrate the concepts in the previous section. In addition, the corresponding LINGO code for the example is given in Appendix A. The shaded region in Table 8.3 represents the transactions (Z) matrix. The third column represents the monetary value of final goods consumed or the final demand vector (c). The fourth column represents the total output of each sector (x). The third row represents the amount of value added for each sector. The fourth row represents the total inputs required by each sector. It can be noted that the total inputs of each sector is equal to the total outputs of each sector. This ensures that we have a balanced economy. 

Figure 8.2 Flow of goods in a hypothetical two-sector economy (in USD)...

Hartwig, J. (2004) Keynes s multiplier in a two-sectoral framework , Review of Political Economy, 16(3) 309-34. 

Marx conceived of the economy as divided into two or three sectors. The best-known model involves a capital goods sector and a consumption goods sector, while another splits the latter into one sector producing necessities for the workers and one producing luxury goods for the capitalists. Modem treatments use the more general n-sector approach, and 1 shall mostly use the same procedure, except when a two-sector model is better suited for illustrative purposes. To describe the sectors and their interrelations, we must know the productive technology and the real... 

Prom an economic point of view, the competitive distortions caused by asymmetric carbon prices appear to affect only few sectors, which account for a relatively small share of GDP (e.g. Reinaud, 2005 McKinsey and Ecofys, 2006 Hourcade et al., 2007 Morgenstern et al., 2007) the reason being that carbon is only one among several factors of production for which prices differ. Thus, a significant impact on investment decisions across two capped economies appears unlikely - in particular if the permit prices of the cap-and-trade systems are not too different. 

Identification of categories in which to divide the total economy into two sectors, namely (i) a set of industrial sectors, and (ii) a list of corrosion control methods. 

The demise of growth expectations in telecommunication and cable not only led to numerous bankruptcies and restructurings, but also resulted in a material slowdown in issuance in the two sectors in 2001 and 2002. In Europe, the two industries dominated new issuance in 1999 and 2000, representing approximately two-thirds of newly minted bonds, but issuance in the two sectors made up just 15% of new bond sales in 2001 and 2002. Overall, lacking a major driver and in the face of a sluggish economy, new issuance fell substantially in Europe in 2001 and 2002 to less than half 1999 and 2000 levels. Nonetheless the high-... 

The words health and wealth are used by many socially oriented organizations both to introduce basic ideas about social justice in the world and to find the fundamental criteria for NSS development. To a great extent, these two notions are used to discover the strategy of an individual s behavior (Andrews, 2004) and to a lesser extent, at the social level. Clearly, the state of public health depends directly on the state of the economy. In developed countries, 5% 10% of GDP is spent on medical services and other measures to maintain public health—an impossibility for many developing countries. Therefore, a globalization priority should be the equalizing of economic potentials for use in sectors directly related to public health maintenance. And this equalization should be realized at the level of the UN. 

Petroleum and natural gas supply over 75 percent of the total energy consumed in the United States and these two fossil fuels are expected to play a continuing role as major sources of energy for many years to come. Oil, which currently supplies 46 percent of our total energy has become an essential part of our industrial and transportation and electric power sectors and without sufficient supplies of oil our economy would first falter and then collapse. Because of restrictive laws and Federal government actions, the production of petroleum in the U.S. has peaked and has been declining since 1970 when it reached 11.3 million barrels per day. 

A whopping two-thirds of U.S. oil consumption is in the transportation sector, the only sector of the U.S. economy wholly reliant on oil. The energy price shocks of the 1970s helped spur growth in use of natural gas for home heating and drove the electric utility sector and the industrial sector to reduce their dependence on petroleum. But roughly 97 percent of all energy consumed by our cars, sport utility vehicles, vans, trucks, and airplanes is still petroleum-based. 

Federal and state governments have had limited and relatively unsuccessful experiences in trying to accelerate market adoption of alternative fuel vehicles. The private sector has fared no better because the path is difficult and many barriers reveal themselves only after technologies begin to be deployed. Because the transition to a hydrogen economy is so potentially important, a number of partnerships have already been created to launch hydrogen pilot projects around the world. This chapter focuses on two those in Iceland and California. 

Over time, the fuels sector has undergone two kinds of transition. The first is a general trend toward greater efficiency in the use of energy to produce the goods and services desired by the world s economy, coupled with structural... 

In words, the rate of profit equals the rate of exploitation divided by the organic composition of capital increased by 1. The two central theories of Marxist economics may both be discussed in terms of this relationship. The labour theory of value deals with the problems that arise when the fundamental equation is disaggregated, so that we compare the rates of profit of different sectors of the economy. The theory of the falling rate of profit looks at the dynamic aspect of the equation by studying the trends in the rate of exploitation and the organic composition of capital, and their implication for the rate of profit. 

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