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Economic Resilience and the Dynamics of Capital Stock

Author

Listed:
  • F. J. Escribá-Pérez

    (Universitat de València (Spain))

  • M. J. Murgui-García

    (Universitat de València (Spain))

  • J. R. Ruiz-Tamarit

    (Universitat de València (Spain) and IRES (UCLouvain))

Abstract

The role of capital stock in measuring resilience is investigated. Based on the current and potential growth paths we propose new indexes to better measure the characteristics associated with resilience: adaptability and resistance to shocks. The dynamics of capital instead of employment is used as a proxy for economic welfare, considered ideal to represent the evolution of economic systems. The two series of capital stock for the US and Spanish economies, associated with the short-run and the long-run trajectories, allows us to empirically compute the indexes and draw conclusions about their ability to resist shocks and absorb their effects.

Suggested Citation

  • F. J. Escribá-Pérez & M. J. Murgui-García & J. R. Ruiz-Tamarit, 2018. "Economic Resilience and the Dynamics of Capital Stock," LIDAM Discussion Papers IRES 2018017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2018017
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    References listed on IDEAS

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    1. Escribá-Pérez, F.J. & Murgui-García, M.J. & Ruiz-Tamarit, J.R., 2018. "Economic and statistical measurement of physical capital: From theory to practice," Economic Modelling, Elsevier, vol. 75(C), pages 246-255.
    2. Andy Pike & Stuart Dawley & John Tomaney, 2010. "Resilience, adaptation and adaptability," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 3(1), pages 59-70.
    3. Ron Martin & Peter Sunley, 2015. "On the notion of regional economic resilience: conceptualization and explanation," Journal of Economic Geography, Oxford University Press, vol. 15(1), pages 1-42.
    4. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    5. Lino Briguglio & Gordon Cordina & Nadia Farrugia & Stephanie Vella, 2009. "Economic Vulnerability and Resilience: Concepts and Measurements," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 229-247.
    6. Bernard Fingleton & Harry Garretsen & Ron Martin, 2012. "Recessionary Shocks And Regional Employment: Evidence On The Resilience Of U.K. Regions," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 109-133, February.
    7. Aida Caldera Sánchez & Alain de Serres & Filippo Gori & Mikkel Hermansen & Oliver Röhn, 2017. "Strengthening economic resilience: Insights from the post-1970 record of severe recessions and financial crises," OECD Economic Policy Papers 20, OECD Publishing.
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    More about this item

    Keywords

    Adaptability; Capital; Growth; Resilience; Resistance;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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