The difference between actual production costs and retail price is the economic surplus. Savings generates investment opportunities : Neoclassicals think that a high-interest rate encourages saves, which in turn results in increased investment. (2019) modeled the data market under the condition of platform sharing, proving that the data price is depressed due to their externalities in equilibrium, and further indicating that closing the data market improved (utilitarian) welfare conditions. Cite this article. volume1, Articlenumber:5 (2023) Therefore, the extant literature either adopts their own methods to measure or synthesize, or adopt existing exploratory methods for measurement. From the above equilibrium results, we get proposition 4. Proposition 7 Developing countries need to choose appropriate economic growth paths according to their own endowment structure (See Table 1 for details). According to this theory, they will have all the relevant information on the decision that they are about to take. Neoclassical Economics: What It Is and Why It's Important - Investopedia The impact of these two factors on the economic growth rate is also positive. 'Classical' vs. 'Neoclassical' Theories of Value and Distribution and Among them, Dt represents the input amount of data elements, bt represents the price of data. This makes it difficult to estimate the capital stock and scale of data elements and calibrate them according to real data. The forces of supply and demand create market equilibrium. Based on the general equilibrium analysis framework of new structural economics, developing countries will choose to improve the rate of technological progress and promote the change of capital production structure. (2022) established a general equilibrium analysis framework incorporating data elements based on the generalized value theory. Diamond, P. 1965. Compare and contrast Keynesian economics and supply-side economics. Both theories pay significant attention to money supply and demand for money as essential factors that influence the rate of interest within the economy. Neoclassical economists argue that the consumer's perception of a product's value is the driving factor in its price. Neoclassical Economics - Overview, Assumptions, Key Concepts Combined with the above conclusions and the model setting in this paper, we can refer to Fig. IvyPanda. Despite the classical theory, ignoring the fact that saving is a function of income by regarding it as a function of interests rate, the approach acknowledges that people do save for future consumption. These matters are explored within this study. The. (2021, September 16). Proposition 3 When there is no data element, the increase of technological progress rate or the change of capital production structure will lead to the increase of the output growth rate. Neoclassical economics emphasizes the choices (demand) of consumers. A business that understands neoclassical economics, for example, won't just look at the cost of making a product when setting a price. Political economy is a branch of the social sciences that focuses on the interrelationships among individuals, governments, and public policy. Based on the general equilibrium analysis framework of new structural economics, developing countries will choose to improve the rate of technological progress and the rate of accumulation of data elements, and promote the change of capital and data production structure. 7 Differences between Classical and Neoclassical Economics By influencing customer perception of their brand, the business will be able to charge more for their products. The classical economics school of thought flourished in the late 18th and early-to-mid 19th centuries, especially in Britain. First, there is a difference between classical music and Classical music. When introducing data, it can be seen from Eqs. Under the general equilibrium analysis framework of new structural economics, before the introduction of data elements, the level of economic growth rate is related to the rate of technological progress and the structure of capital production. Compare the classical and Keynesian views on monetary neutrali. Jones and Tonetti (2020), Farboodi and Veldkamp (2021), Xu and Zhao (2020), Cong et al. Explain the similarities and differences between microeconomics and macroeconomics. Digitalization and economic growth in the new classical and new structural economics perspectives, Digital Economy and Sustainable Development, $$\mathop {{\text{max}}}\limits_{{c_{t} }} U_{t} = \int_{0}^{\infty } {e^{(n - \rho )t} } u(c_{t} )dt$$, $${\dot{k}}_{t}=\left({r}_{t}-n-{\delta }_{t}\right){k}_{t}+{w}_{t}-{c}_{t}\,\mathrm{and}\,{k}_{t+1}={i}_{t}+\left(1-{\delta }_{t}-n\right){k}_{t}$$, $${\text{max}}\pi_{t} = pY_{t} - r_{t} K_{t} - w_{t} L_{t}$$, $$A_{t} K_{t}^{\alpha } L_{t}^{1 - \alpha } \le Y_{t}$$, $$\dot{g}_{c} = 0\;{\text{and}}\;\dot{g}_{k} = 0$$, $$\min C_{t} = r_{t} K_{t} + w_{t} L_{t}$$, $$A_{t} K_{t}^{{\alpha_{t} }} L_{t}^{{1 - \alpha_{t} }} \ge Y_{t}$$, $$\dot{g}_{c} = 0\;{\text{and}}\;\dot{g}_{k} = 0,\;\dot{\alpha }_{t} = 0$$, $$\dot{k}_{t} = \left( {r_{t} - n - \delta_{t} } \right)k_{t} + w_{t} + b_{t} d_{t} - c_{t} \;{\text{and}}\;k_{t + 1} = i_{t} + \left( {1 - \delta_{t} - n} \right)k_{t}$$, \(r_{t} K_{t} + w_{t} L_{t} \le r_{t} K_{t} + w_{t} L_{t} + b_{t} D_{t}\), $$\max \pi_{t} = pY_{t} - r_{t} K_{t} - w_{t} L_{t} - b_{t} D_{t}$$, $${A}_{t}{K}_{t}^{\alpha }{L}_{t}^{1-\alpha -\beta }{D}_{t}^{\beta }\le {Y}_{t}$$, $$\min C_{t} = r_{t} K_{t} + w_{t} L_{t} + b_{t} D_{t}$$, $$A_{t} K_{t}^{{\alpha_{t} }} L_{t}^{{1 - \alpha_{t} - \beta_{t} }} D_{t}^{{\beta_{t} }} \ge Y_{t}$$, $$g_{c} = \frac{{\dot{c}_{t} }}{{c_{t} }} = \frac{{\alpha A_{t} k_{t}^{\alpha - 1} - \delta_{t} - \rho }}{\sigma }$$, \({K}_{t}^{D}=\left({Y}_{t}/{A}_{t}\right){\left\{\left[{r}_{t}\left(1-\alpha \right)\right]/{w}_{t}\alpha \right\}}^{\left(\alpha -1\right)}\), \({L}_{t}^{D}=\left({Y}_{t}/{A}_{t}\right){\left\{\left[{r}_{t}\left(1-\alpha \right)\right]/{w}_{t}\alpha \right\}}^{\alpha }\), \(g_{w} = \dot{w}_{t} /w_{t} = g_{A} + \alpha g_{k}\), \(g_{r} = \dot{r}/r = g_{A} - (1 - \alpha )g_{k}\), $${g}_{k}=\frac{{\dot{k}}_{t}}{{k}_{t}}={A}_{t}{k}_{t}^{\alpha -1}-n-{\delta }_{t}-\frac{{c}_{t}}{{k}_{t}}$$, $${g}_{y}^{*}={g}_{c}^{*}={g}_{k}^{*}=\frac{{g}_{A}}{\text{1} - {\alpha }^{*}}$$, \(\partial {g}_{y}^{*}/\partial {g}_{A}=1/(\text{1} - {\alpha }^{*})>0\), \(\partial {g}_{y}^{*}/\partial {\alpha }^{*}={g}_{A}/{(\text{1} - {\alpha }^{*})}^{2}>0\), $$g_{c} = \frac{{\dot{c}_{t} }}{{c_{t} }} = \frac{{\alpha A_{t} k_{t}^{\alpha - 1} d_{t}^{\beta } - \delta_{t} - \rho }}{\sigma }$$, \(K_{t}^{D} = (Y_{t} /A_{t} )(r_{t} /\alpha )^{\alpha - 1} (b_{t} /\beta )^{\beta } [(1 - \alpha - \beta )/w_{t} ]^{\alpha + \beta - 1}\), \(L_{t}^{D} = (Y_{t} /A_{t} )(r_{t} /\alpha )^{\alpha } (b_{t} /\beta )^{\beta } [(1 - \alpha - \beta )/w_{t} ]^{\alpha + \beta }\), \(D_{t}^{D} = (Y_{t} /A_{t} )(r_{t} /\alpha )^{\alpha } (b_{t} /\beta )^{\beta - 1} [(1 - \alpha - \beta )/w_{t} ]^{\alpha + \beta - 1}\), \(g_{w} = \dot{w}_{t} /w_{t} = g_{A} + \alpha g_{k} + \beta g_{d}\), \(g_{r} = \dot{r}/r = g_{A} - (1 - \alpha )g_{k} + \beta g_{d}\), \(g_{b} = \dot{b}_{t} /b_{t} = g_{A} + \alpha g_{k} - (1 - \beta )g_{d}\), $$g_{k} = \frac{{\dot{k}_{t} }}{{k_{t} }} = A_{t} k_{t}^{\alpha - 1} d_{t}^{\beta } - n - \delta {}_{t} - \frac{{c_{t} }}{{k_{t} }}$$, $$g_{y}^{ * } = g_{c}^{ * } = g_{k}^{ * } = \frac{{g_{A} + \beta^{ * } g_{d} }}{{{1 - }\alpha^{ * } }}$$, \(\partial {g}_{y}^{*}/\partial {g}_{d}={\beta }^{*}/(\text{1} - {\alpha }^{*})>0\), \(\partial {g}_{y}^{*}/\partial {\beta }^{*}={g}_{d}/(\text{1} - {\alpha }^{*})>0\), $$g_{c} = \frac{{\dot{c}_{t} }}{{c_{t} }} = \frac{{\alpha_{t} A_{t} k_{t}^{{\alpha_{t} - 1}} - \delta_{t} - \rho }}{\sigma }$$, \(K_{t}^{D} = (Y_{t} /A_{t} )\left\{ {[r_{t} (1 - \alpha_{t} )]/w_{t} \alpha_{t} } \right\}^{{(\alpha_{t} - 1)}}\), \({L}_{t}^{D}=({Y}_{t}/{A}_{t}){\left\{[{r}_{t}(1-{\alpha }_{t})]/{w}_{t}{\alpha }_{t}\right\}}^{{\alpha }_{t}}\), \(\begin{gathered} g_{w} = \dot{w}_{t} /w_{t} = g_{A} + \alpha_{t} g_{k} + \left[ {1 + \alpha_{t} \ln k_{t} - 1/\left( {1 - \alpha_{t} } \right)} \right]g_{\alpha } ,\; \hfill \\ g_{r} = \dot{r}/r = g_{A} - \left( {1 - \alpha_{t} } \right)g_{k} + \left( {1 + \alpha_{t} \ln k_{t} } \right)g_{\alpha } , \hfill \\ \end{gathered}\), $$g_{k} = \frac{{\dot{k}_{t} }}{{k_{t} }} = A_{t} k_{t}^{{\alpha_{t} - 1}} - n - \delta_{t} - \frac{{c_{t} }}{{k_{t} }}$$, \(\dot{\alpha }_{t} = \left( {g_{k} - g_{A} - g_{k} \alpha_{t} } \right)\;\alpha_{t} /\left( {1 + \alpha_{t} \ln k_{t} } \right)\), $${g}_{y}^{*}={g}_{c}^{*}={g}_{k}^{*}=\frac{{g}_{A}}{1-{\alpha }_{t}^{*}}\,\mathrm{and}\,{\alpha }_{t}^{*}=1-\frac{{g}_{A}}{{g}_{k}^{*}}$$, \(\partial g_{y}^{ * } /\partial g_{A} = 1/({1 - }\alpha_{t}^{ * } ) > 0\), \(\partial g_{y}^{ * } /\partial \alpha_{t}^{ * } = g_{A} /{(1 - }\alpha_{t}^{ * } )^{2} > 0\), $${g}_{c}=\frac{{\dot{c}}_{t}}{{c}_{t}}=\frac{{\alpha }_{t}{A}_{t}{k}_{t}^{{\alpha }_{t}-1}{d}_{t}^{{\beta }_{t}}-{\delta }_{t}-\rho }{\sigma }$$, \(K_{t}^{D} = (Y_{t} /A_{t} )(r_{t} /\alpha_{t} )^{{\alpha_{t} - 1}} (b_{t} /\beta_{t} )^{{\beta_{t} }} [(1 - \alpha_{t} - \beta_{t} )/w_{t} ]^{{\alpha_{t} + \beta_{t} - 1}}\), \(L_{t}^{D} = (Y_{t} /A_{t} )(r_{t} /\alpha_{t} )^{{\alpha_{t} }} (b_{t} /\beta_{t} )^{{\beta_{t} }} [(1 - \alpha_{t} - \beta_{t} )/w_{t} ]^{{\alpha_{t} + \beta_{t} }}\), \(D_{t}^{D} = (Y_{t} /A_{t} )(r_{t} /\alpha_{t} )^{{\alpha_{t} }} (b_{t} /\beta_{t} )^{{\beta_{t} - 1}} [(1 - \alpha_{t} - \beta_{t} )/w_{t} ]^{{\alpha_{t} + \beta_{t} - 1}}\), $$\begin{gathered} g_{w} = \dot{w}_{t} /w_{t} = g_{A} + \alpha_{t} g_{k} + \left[ {1 + \alpha_{t} \ln k_{t} - \left( {1 - \beta_{t} } \right)/\left( {1 - \alpha_{t} - \beta_{t} } \right)} \right]g_{\alpha } + \alpha_{t} g_{k} + \left[ {1 + \beta_{t} \ln d_{t} - \left( {1 - \alpha_{t} } \right)/\left( {1 - \alpha_{t} - \beta_{t} } \right)} \right]g_{\beta } ,\; \hfill \\ g_{r} = \dot{r}/r = g_{A} - \left( {1 - \alpha_{t} } \right)g_{k} + \left( {1 + \alpha_{t} \ln k_{t} } \right)g_{\alpha } + \beta_{t} g_{d} + \beta_{t} \ln d_{t} g_{\beta } , \hfill \\ g_{b} = \dot{b}_{t} /b_{t} = g_{A} + \alpha_{t} g_{k} + \alpha_{t} \ln k_{t} g_{\alpha } - \left( {1 - \beta_{t} } \right)g_{d} + \left( {1 + \beta_{t} \ln d_{t} } \right)g_{\beta } , \hfill \\ \end{gathered}$$, $$g_{k} = \frac{{\dot{k}_{t} }}{{k_{t} }} = A_{t} k_{t}^{{\alpha_{t} - 1}} d_{t}^{{\beta_{t} }} - n - \frac{{c_{t} }}{{k_{t} }}$$, \(\dot{\alpha }_{t} = \left\{ {_{{}} [g_{k} - g_{A} - g_{\beta } (\eta_{b\beta } - 1) - \beta_{t} g_{d} ]\alpha_{t} - g_{k} \alpha_{t}^{2} } \right\}/(1 - \alpha_{t} )\), $$g_{y}^{*} = g_{c}^{*} = g_{k}^{*} = \frac{{g_{A} + \beta_{t}^{*} g_{d} }}{{1 - \alpha_{t}^{*} }}\;{\text{and}}\;\alpha_{t}^{*} = \frac{{g_{k} - g_{A} - \beta_{t}^{*} g_{d} }}{{g_{k} }}$$, \(\partial {g}_{y}^{*}/\partial {g}_{A}=1/(\text{1} - {\alpha }_{t}^{*})>0\), \(\partial {g}_{y}^{*}/\partial {\alpha }_{t}^{*}={g}_{A}/{\text{(1-}{\alpha }_{t}^{*})}^{2}>0\), \(\partial {g}_{y}^{*}/\partial {g}_{d}={\beta }_{t}^{*}/(\text{1} - {\alpha }_{t}^{*})>0\), \(\partial {g}_{y}^{*}/\partial {\beta }_{t}^{*}={g}_{d}/(\text{1} - {\alpha }_{t}^{*})>0\), \({g}_{y}^{\text{NEGEYES}}>{g}_{y}^{\text{NEGENO}}\), \(g_{y}^{{{\text{NEGEYES}}}} > g_{y}^{{{\text{NEGENO}}}}\), https://doi.org/10.1007/s44265-023-00007-0, A systemic perspective on socioeconomic transformation in the digital age, On the Choice of Mathematical Models for Describing the Dynamics of Digital Economy, Rethinking Russian Digital Economy Development Under Sunctions, The Quality of Growth and Digitalization in the Eurasian Integration Countries: An Econometric Analysis, Do digital governments foster economic growth in the developing world?

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