Impacts of technological shock on the agricultural business cycle
The real business cycles in ASEAN-5 countries namely Indonesia, Malaysia, the Philippines, Thailand, and Vietnam over 1971-2015 fluctuated more than their agricultural business cycles. This research utilized the two-sector real business cycle model developed by Da-Rocha and Restuccia (2002) to sti...
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/15586/1/jeko_54%281%29-1.pdf |
| _version_ | 1796932281217056768 |
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| author | Jirawat Jaroensathapornkul, |
| author_facet | Jirawat Jaroensathapornkul, |
| author_sort | Jirawat Jaroensathapornkul, |
| collection | UKM |
| description | The real business cycles in ASEAN-5 countries namely Indonesia, Malaysia, the Philippines, Thailand, and Vietnam
over 1971-2015 fluctuated more than their agricultural business cycles. This research utilized the two-sector real
business cycle model developed by Da-Rocha and Restuccia (2002) to stimulate such a stylized fact. The model
assumes that a social planner makes a decision in an initial period to choose the consumption, capital stock, and
working hours in the agricultural and non-agricultural sectors. This will enable a representative agent to attain
optimum utility for the entire life under certain economic restrictions and subject to technology shocks occurring in
both sectors. The mathematical methods applied to solve this decision-making problem for the social planner includes
linear quadratic approximations and stochastic dynamic programming methods. The simulation results suggest that
the applied model could reasonably well replicate the fluctuations of the real business cycle, agricultural business
cycle, and the non-agricultural business cycle. This reflects the situation where technology shocks in the agricultural
and non-agricultural sectors are related to each other and influence the volatility of these two economies.This suggest
that the governments should encourage research and development activities in both agricultural and non-agricultural
sectors to develop new technology that can generate technology shock to promote greater economic strength. |
| first_indexed | 2024-03-06T04:30:28Z |
| format | Article |
| id | ukm.eprints-15586 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:30:28Z |
| publishDate | 2020 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-155862020-11-06T12:31:04Z http://journalarticle.ukm.my/15586/ Impacts of technological shock on the agricultural business cycle Jirawat Jaroensathapornkul, The real business cycles in ASEAN-5 countries namely Indonesia, Malaysia, the Philippines, Thailand, and Vietnam over 1971-2015 fluctuated more than their agricultural business cycles. This research utilized the two-sector real business cycle model developed by Da-Rocha and Restuccia (2002) to stimulate such a stylized fact. The model assumes that a social planner makes a decision in an initial period to choose the consumption, capital stock, and working hours in the agricultural and non-agricultural sectors. This will enable a representative agent to attain optimum utility for the entire life under certain economic restrictions and subject to technology shocks occurring in both sectors. The mathematical methods applied to solve this decision-making problem for the social planner includes linear quadratic approximations and stochastic dynamic programming methods. The simulation results suggest that the applied model could reasonably well replicate the fluctuations of the real business cycle, agricultural business cycle, and the non-agricultural business cycle. This reflects the situation where technology shocks in the agricultural and non-agricultural sectors are related to each other and influence the volatility of these two economies.This suggest that the governments should encourage research and development activities in both agricultural and non-agricultural sectors to develop new technology that can generate technology shock to promote greater economic strength. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/15586/1/jeko_54%281%29-1.pdf Jirawat Jaroensathapornkul, (2020) Impacts of technological shock on the agricultural business cycle. Jurnal Ekonomi Malaysia, 54 (1). pp. 1-17. ISSN 0127-1962 https://www.ukm.my/fep/jem/content/2020.html |
| spellingShingle | Jirawat Jaroensathapornkul, Impacts of technological shock on the agricultural business cycle |
| title | Impacts of technological shock on the agricultural business cycle |
| title_full | Impacts of technological shock on the agricultural business cycle |
| title_fullStr | Impacts of technological shock on the agricultural business cycle |
| title_full_unstemmed | Impacts of technological shock on the agricultural business cycle |
| title_short | Impacts of technological shock on the agricultural business cycle |
| title_sort | impacts of technological shock on the agricultural business cycle |
| url | http://journalarticle.ukm.my/15586/1/jeko_54%281%29-1.pdf |
| work_keys_str_mv | AT jirawatjaroensathapornkul impactsoftechnologicalshockontheagriculturalbusinesscycle |