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Articles 1 - 20 of 20
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Profitability Or Industrial Relations: What Explains Manufacturing Performance Across Indian States?, Anirban Karak, Deepankar Basu
Profitability Or Industrial Relations: What Explains Manufacturing Performance Across Indian States?, Anirban Karak, Deepankar Basu
Economics Department Working Paper Series
We use a state-level panel data set for the period 1969-2005 to analyze the relative importance of profitability (rate of profit) and industrial disputes (man-days lost to all industrial disputes per worker) in explaining cross-state variations of manufacturing sector performance in India. Using three different measures of manufacturing performance – net value added, investment and employment – we find that profitability is more significant than industrial disputes in explaining the variation of manufacturing sector performance across Indian states.
Old And New Formulations Of The Neoclassical Theory Of Aggregate Investment: A Critical Review, Daniele Girardi
Old And New Formulations Of The Neoclassical Theory Of Aggregate Investment: A Critical Review, Daniele Girardi
Economics Department Working Paper Series
This paper surveys the neoclassical theory of aggregate investment and its criticisms. We distinguish four main formulations of this theory: the traditional ‘Wicksellian’ investment function; the Fisherian ‘array-of-opportunities’ approach (as Witte Jr. called it); the Jorgensonian model; the now prevailing adjustment-costs models. With respect to other papers criticizing the neoclassical theory of investment, we do not appeal to market imperfections. We instead argue that all four formulations present serious theoretical difficulties, even conceding free competition.
Migration In Kenya: Beyond Harris-Todaro, Cem Oyvat, Mwangi Wa Githinji
Migration In Kenya: Beyond Harris-Todaro, Cem Oyvat, Mwangi Wa Githinji
Economics Department Working Paper Series
This paper examines the impact of agrarian structures on the migration behavior and destination of rural household heads and individuals in Kenya. To explore the complexity of migration we extend the standard Harris-Todaro framework to account for land inequality and size. In addition, we disaggregate urban destination into different types of urban centers and also consider rural-to-rural migration. Using logistic regressions, we show that Kenyan household heads born in districts with higher land inequality, smaller per capita land and lower per capita rural income are more likely to migrate. Hence, poverty and inequality in Kenyan rural districts are transmitted to …
The Theory Of Exploitation As The Unequal Exchange Of Labour, Roberto Veneziani, Naoki Yoshihara
The Theory Of Exploitation As The Unequal Exchange Of Labour, Roberto Veneziani, Naoki Yoshihara
Economics Department Working Paper Series
This paper analyses the normative and positive foundations of the theory of exploitation as the unequal exchange of labour (UEL). The key intuitions behind all of the main approaches to UEL exploitation are explicitly analysed as a series of formal claims in a general economic environment. It is then argued that these intuitions can be captured by one fundamental axiom - called Labour Exploitation - which defines the basic domain of all UEL exploitation forms and identifies the formal and theoretical framework for the analysis of the appropriate definition of exploitation.
Treading A Fine Line: (Im)Possibilities For Nash Implementation With Partially-Honest Individuals, Michele Lombardi, Naoki Yoshihara
Treading A Fine Line: (Im)Possibilities For Nash Implementation With Partially-Honest Individuals, Michele Lombardi, Naoki Yoshihara
Economics Department Working Paper Series
No abstract provided.
Sustained Investment Surges, Emiliano Libman, Juan Antonio Montecino, Arslan Razmi
Sustained Investment Surges, Emiliano Libman, Juan Antonio Montecino, Arslan Razmi
Economics Department Working Paper Series
Existing empirical studies have focused on determinants of investment. We focus instead on episodes of accelerated capital stock growth that last eight years or longer. We find that episodes are relatively common, even in low growth regions, but more so in middle income and Asian countries. After identifying 175 such episodes between 1950-2014, we employ probit analysis to explore their characteristics. Turning points in investment tend to be preceded by undervalued real exchange rates, macroeconomic stability (low inflation), and net capital outflows (especially portfolio outflows). We also find strong evidence for a negative correlation with the capital to output ratio …
Is Planet Earth As A Whole Likely To Be Wage-Led?, Arslan Razmi
Is Planet Earth As A Whole Likely To Be Wage-Led?, Arslan Razmi
Economics Department Working Paper Series
Evidence regarding the relationship between distribution, demand, and growth in the short run has been mixed. Open economy models that create the possibility of beggar-thy-neighbor growth offer one theoretical explanation for why this may be expected. Several authors have argued recently, however, that even if demand and growth are profit-led in many individual countries, the global economy is likely to be wage-led since the planet as a whole runs balanced trade. This paper finds that this argument, although intuitively appealing, does not hold up to careful examination. Although the world economy as a whole is a closed system, it is …
Credit Constraints And Economic Growth In A Dual Economy, Peter Skott, Leopoldo Gómez-Ramírez
Credit Constraints And Economic Growth In A Dual Economy, Peter Skott, Leopoldo Gómez-Ramírez
Economics Department Working Paper Series
Pervasive credit constraints have been seen as major sources of slow growth in developing economies. This paper clarifies a mechanism through which an inefficient financial system can reduce productivity growth. Using a two-sector model, second, we examine the implications for employment and the distribution of income. Both classical and Keynesian versions of the model are considered; saving decisions are central in the classical version while firms’ investment and pricing decisions take center stage in the Keynesian version. We find that, although boosting the asymptotic rate of growth, a relaxation of credit constraints may reduce the share of the formal sector, …
Production And Distribution In Political-Economic Systems: A Non-Atomic Game, Alex Coram
Production And Distribution In Political-Economic Systems: A Non-Atomic Game, Alex Coram
Economics Department Working Paper Series
Societies are often compared in terms of the relative shares of the domestic product controlled by government but we don’t have much by way of analytical tools to allow us to think about the ways in which changes in these shares affect the characteristics of production and distribution. This paper treats production and distribution as a cooperative game with a continuum of players. Outcomes depend on politics and economics. It has a number of unexpected results. Among these are that relative shares do not depend on the majority rule the production function and that the characteristics of inegalitarian and egalitarian …
Partially-Honest Nash Implementation: A Full Characterization, Michele Lombardi, Naoki Yoshihara
Partially-Honest Nash Implementation: A Full Characterization, Michele Lombardi, Naoki Yoshihara
Economics Department Working Paper Series
A partially-honest individual is a person who follows the maxim, "Do not lie if you do not have to" to serve your material interest. By assuming that the mechanism designer knows that there is at least one partially-honest individual in a society of n ≥ 3 individuals, a social choice rule (SCR) that can be Nash implemented is termed partially-honestly Nash implementable. The paper offers a complete characterization of the n-person SCRs that are partially-honestly Nash implementable. It establishes a condition which is both necessary and sufficient for the partially-honest Nash implementation. If all individuals are partially-honest, then all SCRs …
The Political Economy Of State Regulation: The Case Of The English Factory Acts, Katherine A. Moos
The Political Economy Of State Regulation: The Case Of The English Factory Acts, Katherine A. Moos
Economics Department Working Paper Series
This paper proposes a theory of why the state enacted social policy that regulated the length of the working day in 19th century industrial England. This paper will argue that, far from being capable of self-regulation, the capitalist labor market during Britain’s industrial revolution is best conceptualized as consisting of two major social coordination problems resulting from conflicting interests between and within capital and labor. Left unregulated, this dual social coordination problem caused the overexploitation of labor, with dire consequences for both the capitalist and working classes. The reason why this coordination problem could not self-correct was because the wage-labor …
Securing Basic Well-Being For All, Reiko Gotoh, Naoki Yoshihara
Securing Basic Well-Being For All, Reiko Gotoh, Naoki Yoshihara
Economics Department Working Paper Series
The purpose of this paper is to examine the possibility of a social choice rule to implement a social policy for securing basic well-being for all. The paper introduces a new scheme of social choice, called a social relation function (SRF), which associates a reflexive and transitive binary relation over a set of social policies to each profile of individual well-being appraisals and each profile of group evaluations. As part of the domains of SRFs, the available class of group evaluations is constrained by three conditions. Furthermore, the non-negative response (NR) and the weak Pareto condition (WP) are introduced. NR …
Public Debt And Growth: An Assessment Of Key Findings On Causality And Thresholds, Michael Ash, Deepankar Basu, Arindrajit Dube
Public Debt And Growth: An Assessment Of Key Findings On Causality And Thresholds, Michael Ash, Deepankar Basu, Arindrajit Dube
Economics Department Working Paper Series
We provide a comprehensive assessment of the relationship between public debt and GDP growth in the postwar advanced economies. We use the timing of changes in public debt and growth to account for endogeneity, and find little evidence of a negative relationship. Semi-parametric estimates do not indicate any threshold effects. Finally, we reconcile our results with four recent, influential papers that found a substantial negative relationship, especially when public debt exceeds 90 percent of GDP. These earlier results appear to derive mostly from peculiar parametric specifications of nonlinearities, or use of small samples which amplify the influence of outliers.
The Measurement Of Labour Content: A General Approach, Naoki Yoshihara, Roberto Veneziani
The Measurement Of Labour Content: A General Approach, Naoki Yoshihara, Roberto Veneziani
Economics Department Working Paper Series
This paper analyses the theoretical issues related to the measurement of labour content for general technologies with heterogeneous labour. A novel axiomatic framework is used in order to formulate the key properties of the notion of labour content and analyse its theoretical foundations. The main measures of labour content used in various strands of the literature are then characterised. Quite surprisingly, a unique axiomatic structure can be identified which underlies measures of labour aggregates used in such diverse fields as neoclassical growth theory, input-output approaches, productivity analysis, and classical political economy.
Neoliberal Redistributive Policy: The U.S. Net Social Wage In The 21st Century, Katherine A. Moos
Neoliberal Redistributive Policy: The U.S. Net Social Wage In The 21st Century, Katherine A. Moos
Economics Department Working Paper Series
In this paper, I examine the trends of fiscal transfers between the state and workers during 1959 - 2012 to understand the net impact of redistributive policy in the United States. This paper presents original net social wage data from and analysis based on the replication and extension of Shaikh and Tonak (2002). The paper investigates the appearance of a post-2001 variation in the net social wage data. The positive net social wage in the 21st century is the result of a combination of factors including the growth of income support, healthcare inflation, neoliberal tax reforms, and macroeconomic instability. Growing …
Institutional Shocks And Economic Outcomes: Allende’S Election, Pinochet’S Coup And The Santiago Stock Market, Daniele Girardi, Samuel Bowles
Institutional Shocks And Economic Outcomes: Allende’S Election, Pinochet’S Coup And The Santiago Stock Market, Daniele Girardi, Samuel Bowles
Economics Department Working Paper Series
To study the effect of political and institutional changes on the economy, we look at share prices in the Santiago exchange during the tumultuous political events that characterized Chile in the early 1970s. We use a transparent empirical strategy, deploying previously unused daily data and exploiting two largely unexpected shocks which involved substantial variation in policies and institutions, providing a rare natural experiment. Allende’s election and subsequent socialist experiment decreased share values, while the military coup and dictatorship that replaced him boosted them, in both cases by magnitudes unprecedented in the literature.
A Unified Marxist Approach To Accumulation And Crisis In Capitalist Economies, Deepankar Basu
A Unified Marxist Approach To Accumulation And Crisis In Capitalist Economies, Deepankar Basu
Economics Department Working Paper Series
An economic crisis in capitalism is a deep and prolonged interruption of the economy-wide circuit of capital. Crises emerge from within the logic of capitalism’s operation, and are manifestations of the inherently contradictory process of capital accumulation. The Marxist tradition conceptualizes two types of crisis tendencies in capitalism: a crisis of deficient surplus value and a crisis of excess surplus value. Two mechanisms that become important in crises of deficient surplus value are the rising organic composition of capital and the profit squeeze; two mechanisms that are salient in crisis of excess surplus value are problems of insufficient aggregate demand …
Natural Implementation With Semi-Responsible Agents In Pure Exchange Economies, Michele Lombardi, Naoki Yoshihara
Natural Implementation With Semi-Responsible Agents In Pure Exchange Economies, Michele Lombardi, Naoki Yoshihara
Economics Department Working Paper Series
We study Nash implementation by natural price-quantity mechanisms in pure exchange economies when agents have intrinsic preferences for responsibility. An agent has an intrinsic preference for responsibility if she cares about truth-telling that is in line with the goal of the mechanism designer besides her material well-being. A semi-responsible agent is an agent who, given what her opponents do, acts in an irresponsible manner when a responsible behavior poses obstacles to her material well-being. The class of efficient allocation rules that are Nash implementable is identified provided that there is at least one agent who is semi-responsible. The Walrasian rule …
Comments On “Full Industry Equilibrium: A Theory Of The Industrial Long Run” By Arrigo Opocher And Ian Steedman (2015), Naoki Yoshihara
Comments On “Full Industry Equilibrium: A Theory Of The Industrial Long Run” By Arrigo Opocher And Ian Steedman (2015), Naoki Yoshihara
Economics Department Working Paper Series
No abstract provided.
An Empirical Analysis Of Minsky Regimes In The Us Economy, Leila E. Davis, Joao Paulo A. De Souza, Gonzalo Hernandez
An Empirical Analysis Of Minsky Regimes In The Us Economy, Leila E. Davis, Joao Paulo A. De Souza, Gonzalo Hernandez
Economics Department Working Paper Series
In this paper we analyze Minskian dynamics in the US economy via an empirical application of Minsky’s financing regime classifications to a panel of nonfinancial corporations. First, we map Minsky’s definitions of hedge, speculative and Ponzi finance onto firm-level data to describe the evolution of Minskian regimes. We highlight striking growth in the share of Ponzi firms in the post-1970 US, concentrated among small corporations. This secular growth in the incidence of Ponzi firms is consistent with the possibility of a long wave of increasingly fragile finance in the US economy. Second, we explore the possibility of short-run Minskian dynamics …