International Journal of Economics, Finance and Management Sciences
Volume 1, Issue 1, February 2013, Pages: 25-37
Received: Feb. 6, 2013;
Published: Feb. 20, 2013
Views 2881 Downloads 116
Feng Dai, Department of Management Science, Zhengzhou Information Engineering University, Zhengzhou, China
Songtao Wu, Department of Management Science, Zhengzhou Information Engineering University, Zhengzhou, China
Ling Liang, Department of Management Science, Zhengzhou Information Engineering University, Zhengzhou, China
Stating from the intrinsic characteristics of macroeconomic development, this paper puts forward the concept of development power and its theoretical frame. The development power is the potential and invisible dynamics to promote economic growth. By means of the development power theory, we can explain some important problems in macro-economy. We discuss the basic properties of development power and obtain some results, such as, the effects of economic policy depends on the development power, the imbalance of economic development is caused by the different levels in development power. The method is given to evaluate development power, and then we may analyze the mutual effects among development powers. Finally, we illustrate that the development power movements exist widely in the economic development.
Development Power: The Potential Dynamics in Economic Process, International Journal of Economics, Finance and Management Sciences.
Vol. 1, No. 1,
2013, pp. 25-37.
R. E. Lucas, "Understanding business cycles," Studies in Business Cycle Theory, MIT Press, Cambridge, Mass., 1981, pp. 215-239.
R. E. Lucas, "Models of Business Cycles," Basil Blackwell, New York. 1987.
F. Kydland and E. Prescott, "Time to Build and Aggregate Fluctuations," Econometrica, vol. 50, pp. 1345-1370, 1982.
P. M. Romer, "Increasing Returns and Long-run Growth," Journal of Political Economy, vol. 94, pp. 1002-1037, 1986.
P. M. Romer, "Cake Eating, Chattering, and Jumps: Existence Results for Variational Problems," Econometrica, vol. 54, pp. 897-908, 1986.
P. M. Romer, "Endogenous technological change," Journal of Political Economy, vol. 98, pp. 71-102, 1990.
D. Kahneman, and A.Tversky, "Prospect Theory: An Analysis of Decision under Risk," Econometrica, vol. 47, pp. 263-291, 1979.
R. E. Lucas, "On the mechanics of economic development," Journal of Monetary Economics, vol. 22, pp. 3-42, 1988.
J. Long and C. Plosser, "Real Business Cycles," Journal of Political Economy, vol. 91, pp. 39-69, 1983.
C. Plosser, "Understanding Real Business Cycles," Journal of Economic Perspectives, vol. 3, pp. 51-77, 1989.
R. King, C. Plosser, and S. Rebelo, "Growth and Business Cycles: I &II," Journal of Monetary Economics, vol. 21, pp. 195-232, 309-341, 1988.
R. E. Lucas, "Econometric Policy Evaluation: A Critique," Carnegie-Rochester Conference Series on Public Policy, vol. 1, pp. 19-46, 1976.
H. A. Simon, "Rational choice and the structure of the envi-ronment," Psychological Review, vol. 63, pp. 120-138, 1954.
D. Kahneman, J. L. Knetsch, and R H. Thaler, "Fairness and the Assumptions of Economics," Journal of Business, vol. 59, pp. 285-300, 1986.
A. Tversky, P. Slovic, and D. Kahneman, "The Causes of Preference Reversal," American Economic Review, vol. 80, pp. 204-217, 1990.
F. Dai, S. T. Wu, and Z. F. Qin, "The Latent Dynamics for Industry Progress: Development Power in Management and Its Derivative process Models," Chinese Journal of Man gement and Its Derivative process Models," Chinese Journal of Management Science, vol. 12, pp. 551-554, 2004.agement Science, vol. 12, pp. 551-554, 2004.
F. Dai and Z. F. Qin, "DF Structure Models for Options Pricing," ICFAI Journal of Applied Economics, vol. 4, pp. 61-77, 2005.
F. Dai, "DF Structure Models for Options Pricing on the Dividend-Paying and Capital-Splitting," ICFAI Journal of Applied Economics, vol. 6, pp. 17-30, 2007.
F. Dai and J. P. Du, "Economic Growth and Control Strategies under the Environmental Pressure: Economic Advance-Retreat Course Analysis II," International Journal of Management Science and Engineering Management, vol. 3, pp. 33-53, 2008.
F. Dai, J. X. Liu, and H. Liu, "Balance conditions and control strategies for economic growth: Economic Advance-Retreat course analysis Ⅲ," International Journal of Management Science and Engineering Management, vol. 4, pp. 20-38, 2009.
F. Dai, J. P. Qi, and L. Liang, "Socio-Economic Development Model Based on Stochastic Advance-Retreat Course: An Analysis on U. S. Economy in Recent 70 Years," International Journal of Social Economics, vol. 38, pp. 416-437, 2011.
F. Dai, L. Liang, X. B. Li, and J. T. Feng, "The Dynamic Advance-Retreat Course Model for Economic Growth and the Empirical Research," Chinese Journal of Management Science, vol. 20, pp. 400-403, 2012.