The very long run is a situation where technology and factors beyond the control of a firm can change significantly, e.g. In the very long run: New technology may make current working processes outdated, e.g. Rise of the internet and digital downloads have changed the face of the music industry, making it hard to make a profit from selling singles. Combining both long run growth variations and long run living standard variations, we find that a base Mincer human capital model can explain between 25% and 46% of long run development variation. Intergenerational human capital accumulation models with or without spillovers can explain at least half and as much as two thirds of long run.

1. Early Growthfinding What Will Work In The Long Run Distance
2. Early Growthfinding What Will Work In The Long Run Time

• The first derivative is the rate of growth itself and the second is the rate of change in your growth, so a positive second derivative suggests your current users are populating the world with more users through the natural course of their day. Measure Retention Across Cohorts and Compare to Relevant Benchmarks.
• A coach can help you devise which plan is best for you, aiming to achieve your best results. There should be at least a minute in between reps, and you should do them in sets of 3 to start with. When doing cardio workouts they should be started in the early morning to be the most effective. This gives your body some pep.
• Long‐Run Growth Solow’s “Neoclassical” Growth Model Andrew Rose, Global Macroeconomics 3 1.

The short run, long run and very long run are different time periods in economics.

Quick definition

• Very short run – where all factors of production are fixed. (e.g on one particular day, a firm cannot employ more workers or buy more products to sell)
• Short run – where one factor of production (e.g. capital) is fixed. This is a time period of fewer than four-six months.
• Long run – where all factors of production of a firm are variable (e.g. a firm can build a bigger factory) A time period of greater than four-six months/one year
• Very long run – Where all factors of production are variable, and additional factors outside the control of the firm can change, e.g. technology, government policy. A period of several years.

More detailed explanation

Very short run (immediate run)

• At a particular point in time a business may not be able to ask employers to work at short notice or they may not be able to order more stock.
• In the very short run, the firm can only do things like perhaps changing price, giving special offers or trying to manage exceptional demand by queing system.

Short run

• In the short run one factor of production is fixed, e.g. capital. This means that if a firm wants to increase output, it could employ more workers, but not increase capital in the short run (it takes time to expand.)
• Therefore in the short run, we can get diminishing marginal returns, and marginal costs may start to increase quickly.
• Also, in the short run, we can see prices and wages out of equilibrium, e.g. a sudden rise in demand, may lead to higher prices, but firms don’t have the capacity to respond and increase supply.

Long run

• The long run is a situation where all main factors of production are variable. The firm has time to build a bigger factory and respond to changes in demand. In the long run:
  • We have time to build a bigger factory.
  • Firms can enter or leave a market.
  • Prices have time to adjust. For example, we may get a temporary surge in prices, but in the long-run, supply will increase to meet it.
  • The long run may be a period greater than six months/year
  • Price elasticity of demand can vary – e.g. over time, people may become more sensitive to price changes, in short run, people keep buying a good they are used to.

Relationship between short-run costs and long-run costs

• SRAC = short run average costs
• LRAC = long run average costs

This shows how a firm’s long-run average costs are influenced by different short-run average costs (SRAC) curves.

The SRAC is u-shaped because of diminishing returns in the short run.

See cost curves

The very long run

• The very long run is a situation where technology and factors beyond the control of a firm can change significantly, e.g. in the very long run:
  • New technology may make current working processes outdated, e.g. rise of the internet and digital downloads have changed the face of the music industry, making it hard to make a profit from selling singles.
  • Government policy may change, e.g. reducing the power of trades unions has reformed the UK labour market.
  • Social change. For example, the First World War brought more women into the labour market and changed people’s expectations about the jobs women could do.

Short run long run in macroeconomics

We can also see the short run and long run in macroeconomics.

An increase in the money supply can lead to a short term increase in real output – as workers feel they have an increase in real income.

However, in the long-run, the increase in the money supply causes inflation and so workers realise real wages are the same and real output remains unchanged.

• For example, the difference between short-run aggregate supply and long-run aggregate supply.

Readers Question: what is the difference between short-run and short term?

Not much. If there is a difference, the distinction doesn’t matter at A level. When talking about production, we often refer to the short run and long run. For example:

• Diminishing returns occurs in the short run. In the short run, we assume capital is fixed. In the long run, the amount of capital is variable.

We may mention short term factors affecting exchange rates or short term factors affecting the economy.

• For example, an increase in the money supply may cause a short-term increase in real output. However, in the long-term, an increase in the money supply may cause inflation and therefore diminish the increase in real output.

This brief is part of a series that summarizes essential scientific findings from Center publications.

By creating and implementing effective early childhood programs and policies, society can ensure that children have a solid foundation for a productive future. Four decades of evaluation research have identified programs that can improve a wide range of outcomes with continued impact into the adult years. Effective interventions are grounded in neuroscience and child development research and guided by evidence regarding what works for what purpose. With careful attention to quality and continuous improvement, such programs can be cost-effective and produce positive outcomes for children.

Early Growthfinding What Will Work In The Long Run Distance

1. Effective services build supportive relationships and stimulating environments.

   To develop strong brain architecture, babies and toddlers require dependable interaction with nurturing adults and safe environments to explore. Toxic stress (see InBrief: The Impact of Early Adversity on Child Development) can damage that architecture, but programs in a variety of settings—the home, early care and education, foster care, and other environments—can protect children from the effects of toxic stress by providing stable relationships with responsive caregivers. Within the context of these relationships, programs must support emotional, social, and cognitive development because they are inextricably intertwined in the brain. We can’t do one without the other.

2. Effective interventions address specific developmental challenges.

   Decades of brain science and developmental research suggest a three-tiered approach to ensure the health and well-being of young children:

   • Tier 1 covers the basics—the health services, stable and responsible caregiving, and safe environments that all children need to help them build and sustain strong brains and bodies.
   • Tier 2 includes broadly targeted interventions for children and families in poverty. Programs that combine effective center-based care and education for children with services for parents, such as education or income supports, can have positive effects on families and increase the likelihood that children will be prepared to succeed in school.
   • Tier 3 provides specialized services for children and families who are most likely to experience toxic stress. Specific, effective treatments, such as interventions and services for child maltreatment, mental health, or substance abuse, can show positive outcomes for children and parents and benefits to society that exceed program costs.

3. Effectiveness factors distinguish programs that work from those that don’t.

   Evaluation science helps identify the characteristics of successful programs, known as effectiveness factors. In early care and education, for example, the effectiveness factors that have been shown by multiple studies to improve outcomes for children include:

   • Qualified and appropriately compensated personnel
   • Small group sizes and high adult-child ratios
   • Language-rich environment
   • Developmentally appropriate “curriculum”
   • Safe physical setting
   • Warm and responsive adult-child interactions

4. Effective early childhood programs generate benefits to society that far exceed program costs.

   Responsible investments focus on effective programs that are staffed appropriately, implemented well, and improved continuously. Extensive analysis by economists has shown that education and development investments in the earliest years of life produce the greatest returns. Most of those returns, which can range from $4 to $9 per dollar invested, benefit the community through reduced crime, welfare, and educational remediation, as well as increased tax revenues on higher incomes for the participants of early childhood programs when they reach adulthood.

5. Policy Implications

   • The development and retention of a skilled early childhood workforce is critical for success. Across all agencies and programs, a workforce that is appropriately skilled, trained, and compensated is a major contributor to achieving the best possible child and family outcomes. Ongoing investment in workforce skills and professional development is essential for program improvement.
   • Quality of implementation is key. Model programs can lose their impact if not brought to scale correctly. Rigorous program standards, ongoing training and technical assistance, and continual quality assessment and improvement are critical to ensuring the ongoing effectiveness of large-scale programs.
   • A multi-strategy approach will best enable states to ensure healthy futures for children. No single program can meet the diverse developmental needs of all children. A more promising approach targets a range of needs with a continuum of services that have documented effectiveness.

   Suggested citation: Center on the Developing Child (2007). Early Childhood Program Effectiveness (InBrief). Retrieved from www.developingchild.harvard.edu.

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