The Application of the Economic Leakage Model (ELM) in Japan from 1964 to 2014
Posted: 9 Jan 2015
Date Written: January 7, 2015
This paper is interested to apply the Economic Leakage Model (ELM) to Japan from 1964 to 2014 (50 years). The central objective of this paper is to set forth a model – the Economic Leakage Model (Ŀ) – to evaluate the impact of 20 different leaking that can affect directly or indirectly on the GNP growth performance. The model is based on five basic indicators – (i) maximum potential economic growth rate (Þ); (ii) the post-leaking economic growth rate (Ŀ); (iii) the economic desgrowth rate (-δ); (iv) the marginal economic Desgrowth rate (-δ’); (v) and the economic mass (μ). In addition, we apply the Economic Leakage Model (ELM) on the Japanese economy.
Keywords: Economic Desgrowth, Economic Modeling, Japan
JEL Classification: Q54, O40
Suggested Citation: Suggested Citation