How does labor mobility affect income convergence?

Article Abstract:

The effect of labor mobility on income convergence is investigated by using a neoclassical growth model. Despite labor mobilityEs positive contribution to income convergence, numerical results from the model shows that the disincentive effect of labor mobility wherein the exit of labor from poorer economies lowers the return to capital there and thus slows gross capital formation can be large.

Labor mobility, Labour mobility

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Second--, third--, and higher-order consumption functions: a precautionary tale

Article Abstract:

Shocks, methods used to derive apt solutions are represented. It is observed that, their exists no analytical solutions for a person who face uninsurable income shocks, though perturbation methods. It is possible to extend a well-known second-order consumption function to a third-order function.

Consumption (Economics), Savings, Functions (Mathematics), Functional equations, Functions

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Heterogeneous borrowers, liquidity, and the search for credit

Article Abstract:

Establishment of an equilibrium model helps, lenders search for matches, and borrowers to satisfy equilibrium in entry conditions. A liquidity shock depends upon the source. Only few borrowers will be able to be a part of credit market, due to less market liquidity and a hike in quality.

Credit, Liquidity (Finance)

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