Leisure Externalities: Implications for Growth and Welfare

This paper develops a neoclassical growth model with leisure externalities. Ignoring positive (negative) leisure externalities leads to equilibrium consumption, labor and capital that are too high (low) and leisure that is too low (high). The government should tax (subsidize) labor income according to whether the leisure externality is positive or negative. The level of this tax (subsidy) depends on the elasticity of individual and average leisure and the consumption tax. Equilibrium dynamics are characterized, and two shocks to the economy are analyzed – an increase in the growth rate of labor productivity, and an increase in the tax on labor income – by simulating a calibrated economy. Adjustment processes of key variables in a competitive and centrally planned economy with and without leisure externalities are also compared.externalities, transitional dynamics, economic growth

Fiscal Policy in a Two-Sector Economy with Public Capital and Congestion

This paper focuses on the role of government capital as a critical productive input when the level of services that the agent derives from it is subject to congestion. I develop a two-sector “nonscale” production model in which there are two types of firms, conventional profit-maximizing private firms, and “public firms”, whose objective is to produce a specified quantity of government investment goods – determined by government policy – at minimum cost. Furthermore, the production functions of the two sectors need not in general coincide. Using this two-sector production set-up I assume that the positive externality of the public capital is associated with two types of congestion, proportional and aggregate. A variety of fiscal disturbances are analyzed. Because of the complexity of the model the analysis is carried out using simulations of a calibrated economy. The effects of tax policies are remarkably robust with respect to the relative capital intensities of the two productive sectors. In contrast, the effects of government investment are much more sensitive to this aspect. The introduction of congestion decreases the steady state growth rate of the economy. The relative congestion has stronger effects when the variation in the government investment is analyzed, whereas the absolute congestion is more relevant in the analysis of the change in the tax on capital income. The papers highlight the intertemporal dimensions of fiscal policy and the tradeoffs these involve for economic performance, especially growth and welfare.endogenous growth, fiscal policy, public capital, congestion

Sensitive Ants for Denial Jamming Attack on Wireless Sensor Network

A new defence mechanism for different jamming attack on Wireless Sensor Network (WSN) based on ant system it is introduced. The artificial sensitive ants react on network attacks in particular based on their sensitivity level. The information is re-directed from the attacked node to its appropriate destination node. It is analyzed how are detected and isolated the jamming attacks with mobile agents in general and in particular with the newly ant-based sensitive approach.Comment: - 4 pages - accepted pape

Female Labor Force Participation and Welfare if Status Conscious with Multiple Reference Groups

I develop a model with status concerns to analyze how different economic factors affect female participation, average household income and wage, as well as the welfare of both stay-at-home and working wives. Reductions in the price of domestic goods and increases in female wages have positive effects on female participation. Increases in male wages have different effects on female participation depending on whether they affect female wages or not. Events that lead to increases in female participation are usually associated with decreases in the welfare of stay-at-home wives, but are not necessarily associated with increases in welfare of working wivesfemale labor force participation; relative income

A Unifying Survey of Reinforced, Sensitive and Stigmergic Agent-Based Approaches for E-GTSP

The Generalized Traveling Salesman Problem (GTSP) is one of the NP-hard combinatorial optimization problems. A variant of GTSP is E-GTSP where E, meaning equality, has the constraint: exactly one node from a cluster of a graph partition is visited. The main objective of the E-GTSP is to find a minimum cost tour passing through exactly one node from each cluster of an undirected graph. Agent-based approaches involving are successfully used nowadays for solving real life complex problems. The aim of the current paper is to illustrate some variants of agent-based algorithms including ant-based models with specific properties for solving E-GTSP.Comment: 9 pages, 2 figure

The global financial crisis and its implications on the Romanian banking systems

The current financial crisis seems to be more painful than those occurring in recent decades. This crisis caused a massive decline in the market confidence of both businesses and consumers. The crisis has affected a multitude of economic and financial activities such as financial markets that have registered genuine reductions, serious problems of liquidity and depreciation of national currencies. Worldwide banking systems are one of the major areas that were affected by the crisis, with considerable bankruptcies landslide. This study investigates the effects of financial crisis on the banking system from Romania while highlighting the challenges brought by the crisis.financial crisis, banking system, financial markets, liquidity, bankruptcies

Technological Complexity and Economic Growth

The last fifty years have witnessed large secular increases in educational attainment and R&D intensity. The fact that these trends have not stimulated more rapid income growth has been a persistent puzzle for growth theorists. We construct a model of endogenous economic growth in which income growth, R&D intensity, and educational attainment depend on the complexity of new technologies. An increase in complexity that makes passive learning more difficult, induces increases in R&D and education, alongside a decline in income growth. Our explanation also predicts a concurrent rise in the skill premium.Endogenous growth, learning, R&D, educational attainment, wage inequality, technological complexity