Cover Image

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...

Full description

Saved in:
Bibliographic Details
Main Author: Jirawat Jaroensathapornkul,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/15586/1/jeko_54%281%29-1.pdf
http://journalarticle.ukm.my/15586/
https://www.ukm.my/fep/jem/content/2020.html
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-ukm.journal.15586
record_format eprints
spelling my-ukm.journal.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
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
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.
format Article
author Jirawat Jaroensathapornkul,
spellingShingle Jirawat Jaroensathapornkul,
Impacts of technological shock on the agricultural business cycle
author_facet Jirawat Jaroensathapornkul,
author_sort Jirawat Jaroensathapornkul,
title Impacts of technological shock on the agricultural business cycle
title_short 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_sort impacts of technological shock on the agricultural business cycle
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2020
url http://journalarticle.ukm.my/15586/1/jeko_54%281%29-1.pdf
http://journalarticle.ukm.my/15586/
https://www.ukm.my/fep/jem/content/2020.html
_version_ 1683231764399521792
score 13.211869

Similar Items