Social and Behavioral Sciences Commons^™

Measuring Environmental Inequality, James K. Boyce, Klara Zwickl, Michael Ash

PERI Working Papers

This study presents alternative measures of environmental inequality in the 50 U.S. states for exposure to industrial air pollution. We examine three methodological issues. First, to what extent are environmental inequality measures sensitive to spatial scale and population weighting? Second, how do sensitivities to different segments of the overall distribution affect rankings by these measures? Third, how do vertical and horizontal (inter-group) inequality measures relate to each other? We find substantive differences in rankings by different measures and conclude that no single indicator is sufficient for addressing the entire range of equity concerns that are relevant to environmental policy; instead …

The Effect Of Public Health Expenditure On Infant Mortality: Evidence From A Panel Of Indian States, 1983-84 To 2011-12, Andrew J. Barenberg, Deepankar Basu, Ceren Soylu

PERI Working Papers

Using a panel data set of Indian states between 1983–84 and 2011–12, this paper studies the impact of public health expenditure on the infant mortality rate (IMR), after controlling for other relevant covariates like per capita income, female literacy, and urbanization. We find that public expenditure on health care reduces IMR. Our baseline specification shows that an increase in public health expenditure by 1 percent of state-level GDP is associated with a reduction in the IMR by about 8 infant deaths per 1000 live births. We also find that female literacy and urbanization reduces the IMR.

Economics Of Fixed-Dose Combination Drugs Approved In The United States, Jing Hao

Doctoral Dissertations

Patent is the most important form of intellectual property protection for new drugs. Patent extension and market exclusivity currently serve as major regulatory incentives to promote new drugs. Combination drug, or fixed-dose combination (FDC) are formulations that contain two or more active ingredients in a single pill. FDCs, especially combinations of singe drugs that are already in the market, are common strategy for brand-name drug companies to extent the patent and exclusivity life. The substitution of single drug products that soon have generic alternatives with newer, brand-name combinations lead to potential increases in pharmaceutical expenditures and raises concerns on economic …

Essays On Inequality, Credit Constraints, And Growth In Contemporary Mexico, Leopoldo Gómez-Ramírez

Doctoral Dissertations

This dissertation presents four essays on inequality, credit constraints, and economic growth in the Mexican economy in its recent history, or “contemporary Mexico”. In the first essay, it is argued that the possibility that wealth/income inequality could affect economic growth has been neglected in the contemporary Mexican economy literature. Also, preliminary thoughts on the channels through which inequality could have been affecting growth are offered. In the second essay, a time series, macroeconometric analysis on the possible relationship between inequality and aggregate production (GDP) in Mexico is presented. The analysis suggests that an increase in inequality boosts the economy, but …

Three Essays On Macroeconomic Implications Of Contemporary Financial Intermediation, Hyun Woong Park

Doctoral Dissertations

This dissertation contributes to the growing literature on macroeconomic models with a financial intermediary sector. The first two chapters use the circuit of capital modeling methodology to study the relation between growth and profitability in capitalist economy where credit is essential, and the third uses a more standard macrodynamic model to investigate how securitized banking, which relies on short-term collateralized borrowing, as opposed to traditional commercial banking, generates procyclical bank leverage, which in turn leads to supply-led fluctuation in credits and ultimately to a boom-bust cycle of asset prices. In chapter 1, I extend the baseline model of circuit of …

The Labor Share Question In China, Hao Qi

Doctoral Dissertations

In this study I explore why China’s labor share measured by the conventional approach experienced a major decline over the period from the mid-1990s to the outbreak of the global financial and economic crisis in 2008. I adopt a Marxian approach to address this question. Following the Marxian approach, I focus on how the power relation in the sphere of production affects labor’s share. I argue that major changes in the power relation that took place during the transition of China’s economic system have played a crucial role in the changes of distribution. To this end, I build homogenous series …

Essays On Information, Income, And The Sharing Economy, Anders F. Fremstad

Doctoral Dissertations

Many privately-owned items are somewhat non-rival in consumption, so there are often benefits to borrowing and lending underutilized goods and exchanging used goods. Although sharing is ubiquitous, it is understudied in economics. This dissertation seeks to help develop an economics of sharing. Chapter 1 presents a simple mathematical model of the “gains from sharing”, which connects the literatures on club goods, household economies, collective action, community governance, and decentralized cooperation. I argue that the level of sharing in society depends not just on technology but also on the norms that govern how people cooperate, on people’s preferences around privacy and …

Structural Transformation, Culture, And Women’S Labor Force Participation In Turkey, Yasemin Dildar

Doctoral Dissertations

Turkey has experienced important structural and social changes that would be expected to facilitate women’s participation in market work. Social attitudes toward working women have changed in recent years; women are becoming more educated; they are getting married at a later age; and fertility rates are declining. Despite these factors, women’s labor force participation rates are very low in comparison to the countries at a similar development stage. This dissertation analyzes the underlying causes of low female labor force participation in Turkey. In addition to a background chapter (Chapter 2) analyzing structural transformation and employment generation patterns, the dissertation has …

Essays On Growth Complementarity Between Agriculture And Industry In Developing Countries, Joao Paulo De Souza

Doctoral Dissertations

This dissertation examines three aspects of the macroeconomic role of agriculture in the industrialization of developing countries. In the first essay, I utilize instrumental variable techniques to empirically identify the effect of growth in agriculture on growth in manufacturing. Using data for 62 countries and instrumental variable techniques, I find that higher land yields in agriculture raise growth in manufacturing in the short to medium run. Along with extensions of the basic empirical model, this finding suggests that land-saving technical change can stimulate demand for industrial goods, raise fiscal revenues, and provide foreign exchange earnings to finance capital accumulation. In …

Social Hierarchies And Public Distribution Of Food In Rural India, Deepankar Basu, Debarshi Das

Deepankar Basu

In this paper, we develop a simple model that shows that consumption of PDS food grains is significantly different between rich and poor households in states where the PDS functions relatively well; in places where the PDS is non-functional, the difference is not significant. Using household-level data from three recent thick rounds of the consumption expenditure survey (2004-2005, 2009-2010 and 2011-2012), we find evidence in support of the predictions from the model. This suggests that one way to make the PDS functional is to make it more accessible to poor and underprivileged households.

Non-Food Expenditures And Consumption Inequality In India, Amit Basole, Deepankar Basu

Deepankar Basu

This paper contributes to the ongoing debate about economic inequality in India during the post-reform period. We analyze consumption inequality through the hitherto neglected lens of nonfood expenditure. Using household level consumption expenditure data from the quinquennial “thick” rounds of the NSS, we show that inequality within food and non-food groups has declined, even as overall expenditure inequality has increased over time. We suggest that the rise in overall expenditure inequality is due to the increased weight in the household budget of non-food spending, which tends to be more unequal than food spending. We also show that inequality is very …

Human Capital, Employment And Subjective-Objective Poverty: A Micro Case Study Of Nepal, Tejesh Pradhan

Masters Theses

This thesis derives an alternative subjective-objective poverty line (SPL) using self-reported qualitative assessments of perceived adequacy for different categories of consumption namely, food, housing and clothing. Modeling the probability of reporting that actual consumption in each category is adequate, I find that actual measures of consumption are highly significant predictors of perceived consumption adequacy. The perceived adequacy for different consumption components respond more elastically to spending on the corresponding category of goods than to that on other types. The results suggest that the implied subjective poverty lines and regional profiles are different from those predicted by popular objective methods.

This …

Three Essays On Economic Inequality And Environmental Degradation, Klara Zwickl

Doctoral Dissertations

Rising income and wealth disparities are increasingly viewed as serious economic and social problems, but what are the environmental consequences of an unequal distribution of income and wealth? Are low income neighborhoods disproportionately negatively affected by pollution exposure, and does economic inequality thus manifest itself in environmental inequality? Are poor or unequal communities less successful in collectively organizing local environmental improvements and does inequality thus increase pollution exposure for all residents? This dissertation provides some empirical evidence on these questions. Chapter 1 analyzes regional variations in environmental disparities in US cities. Using geographic micro-data from EPA's Risk Screening Environmental Indicators …

Syllabus: Introduction To Permaculture, Lisa Depiano

Sustainability Education Resources

The Permaculture Design Course is a three-credit course that offers students a foundation in permaculture history, ethics, principles, design process, and practical applications. The framework behind the theory and practice of permaculture is rooted in the observation of natural systems. By observing key ecological relationships, we can mimic and apply these beneficial relationships in the design of systems that serve humans while helping to restore the natural world. This course trains students as critical thinkers, observers, and analysts of the world(s) around them, and then goes on to provide students with the tools needed to design for inspired and positive …

A Model Ecotourism Master Plan Chapter For Rural Massachusetts Communities: A Case Study Of Hardwick, Ma, Sarah Lang, Madison Burke

Center for Economic Development Technical Reports

The primary purpose of this project is to create a model chapter on ecotourism to better leverage the available natural resources within rural towns (under 50,000 population) in MA as an economic development strategy.

Long-Term Population Projections For Massachusetts Regions And Municipalities, Henry C. Renski, Susan Strate, Daniel Hodge, William Proulx, Katherine Paik, Steffen Herter

Center for Economic Development Technical Reports

No abstract provided.

Profitability In India’S Organized Manufacturing Sector: The Role Of Technology, Distribution, And Demand, Deepankar Basu, Debarshi Das

Economics Department Working Paper Series

Using aggregate data from the Annual Survey of Industries, we analyze profitability in India’s organized manufacturing sector from 1982-83 to 2012-13. Over the whole period of analysis, the rate of profit grew at about 1 percent per annum, primarily driven by a rising share of profits. We use structural break tests to identify medium and short run regimes. We find two medium run regimes, one of declining profitability (1982-83 to 2001-02), and another of growing profitability (2001-02 to 2012-13). We find six short run regimes, of which only two are periods of rising profitability, 1987-88 to 1996-97, and 2001-02 to …

Non-Food Expenditures And Consumption Inequality In India, Amit Basole, Deepankar Basu

Economics Department Working Paper Series

This paper contributes to the ongoing debate about economic inequality in India during the post-reform period. We analyze consumption inequality through the hitherto neglected lens of nonfood expenditure. Using household level consumption expenditure data from the quinquennial “thick” rounds of the NSS, we show that inequality within food and non-food groups has declined, even as overall expenditure inequality has increased over time. We suggest that the rise in overall expenditure inequality is due to the increased weight in the household budget of non-food spending, which tends to be more unequal than food spending. We also show that inequality is very …

Capital Controls And The Real Exchange Rate: Do Controls Promote Disequilibria?, Juan Antonio Montecino

Economics Department Working Paper Series

The consensus view is that capital controls can effectively lengthen the maturity composition of capital inflows and increase the independence of monetary policy but are not generally effective at reducing net inflows and influencing the real exchange rate. This paper presents empirical evidence that although capital controls may not directly affect the long-run equilibrium level of the real exchange rate, they may enable disequilibria to persist for an extended period of time relative to the absence of controls. Allowing the speed of adjustment to vary according to the intensity of restrictions on capital flows, it is shown that the real …

Functional Finance And Intergenerational Distribution In A Keynesian Olg Model, Peter Skott, Soon Ryoo

Economics Department Working Paper Series

This paper examines the role of fiscal policy in the long run. We show that (i) dynamic inefficiency in a standard OLG model generates aggregate demand problems in a Keynesian setting, (ii) fiscal policy can be used to achieve full-employment growth, (iii) the required debt ratio is inversely related to both the growth rate and government consumption, and (iv) a simple and distributionally neutral tax scheme can maintain full employment in the face of variations in ‘household confidence’

Is The Nature Of The Demand Regime Relevant Over The Medium Run? Revisiting Distributional Issues In A Portfolio Framework Under Different Exchange Rate Regimes, Arslan Razmi

Economics Department Working Paper Series

Is growth in capitalist economies wage-led or profit-led? Empirical studies have found conflicting results for different countries and periods. Possible reasons may include the endogeneity of distributional shares, differences in the monetary policy/exchange rate regimes across countries, and divergence between macro behavior in the short- and medium-runs. I theoretically explore these possibilities using a portfolio balance framework to keep track of asset stocks and wealth effects over time. With fixed exchange rates, the Central Bank’s need to intervene in the asset market via official reserve transactions results in assigning a crucial role to the current account in constraining accumulation and …

Public Debt, Secular Stagnation, And Functional Finance, Peter Skott

Economics Department Working Paper Series

Fiscal policy and public debt may be required to maintain full employment and avoid secular stagnation. This conclusion emerges from a range of different models, including OLG specifications and stock-flow consistent (post-) Keynesian models. One of the determinants of the required long-run debt ratio is the rate of economic growth. Low growth leads to high debt, and empirical correlations between growth and debt may reflect this causal effect of growth on debt, rather than negative effects of debt on growth. A second result relates directly to austerity policies. The level of government consumption and the structure of taxation influence the …

Profitability And Investment: Evidence From India’S Organized Manufacturing Sector, Deepankar Basu, Debarshi Das

Economics Department Working Paper Series

Using a state-industry panel data set at the 3 digit national industrial classification (NIC) level of disaggregation for 19 major Indian states over the period 1983-84 to 2007-08, we analyze the contemporaneous and long run impacts of the rate of profit and its components – profit share, capacity utilization rate, and capacity-capital ratio – on investment. Our results show that: (a) the rate of profit has both short and long run positive impacts on investment; (b) the profit share and capacity-capital ratio have only long run positive impacts, and the capacity utilization rate has only a contemporaneous positive impact on …

Fiscal And Monetary Policy Rules In An Unstable Economy, Soon Ryoo, Peter Skott

Economics Department Working Paper Series

This paper examines the implications of different monetary and fiscal policy rules in an economy characterized by Harrodian instability. We show that (i) a monetary rule along Taylor lines can be stabilizing for low debt ratios but becomes de-stabilizing if the debt ratio exceeds a certain threshold, (ii) a `Keynesian' fiscal policy rule can stabilize the economy at full employment, (iii) a fiscal `austerity' rule that links fiscal parameters to deviations from a target debt ratio fails to adjust the `warranted' to the `natural' growth rate and destabilizes the warranted path, (iv) instability may arise from a combination of fiscal …

Expropriation And The Location Of Farmland Investment: A Theoretical Investigation Into The Land Rush, Alfredo Rosete

Economics Department Working Paper Series

Accompanying a sharp rise in food prices between 2007 and 2008 were reports of land deals in the global South. The sudden rise in land acquisitions in developing countries has drawn the attention of scholars and think tanks. In particular, a set of recent papers by Deininger (2011), Deininger (2013), and Arezki et al. (2013) sought to understand the empirical determinants of the land rush. They find that investors tend to target countries that have weak land-governance institutions, understood as the degree to which local land rights are upheld. This is a puzzle, given the economic literature on investment location. …

Growth And Distribution In Low Income Economies: Modifying Post Keynesian Analysis In Light Of Theory And History, Arslan Razmi

Economics Department Working Paper Series

Growth in low-income developing economies with large sectors characterized by underemployment is unlikely to be wage-led in the traditional neo-Kaleckian sense of the term. Output and employment in the sectors of the economy producing non-tradable output could be demand-led, however, and policies directly aimed at more equitable distribution in these sectors could boost long-run growth. Some of the fast growing Asian economies may have been examples of wage-led growth in this rather different sense of the term. Over time, re-distributive measures in the traditional sector, such as land reforms, could lead to faster wage and output growth across the economy.

The Effect Of Public Health Expenditure On Infant Mortality: Evidence From A Panel Of Indian States, 1983-84 To 2011-12, Andrew Barenberg, Deepankar Basu, Ceren Soylu

Economics Department Working Paper Series

Using a panel data set of Indian states between 1983-84 and 2011-12, this paper studies the impact of public health expenditure on the infant mortality rate (IMR), after controlling for other relevant covariates like per capita income, female literacy, and urbanization. We find that public expenditure on health care reduces IMR. Our baseline specification shows that an increase in public health expenditure by 1 percent of state-level GDP is associated with a reduction in the IMR by about 8 infant deaths per 1000 live births. We also find that female literacy and urbanization reduces the IMR.

Service Sector Growth In India: A View From Households, Deepankar Basu, Debarshi Das

Economics Department Working Paper Series

This paper studies the phenomenon of service-led growth in India over the past two decades from the perspective of household expenditure. We use consumption expenditure data from four recent “thick” rounds of the National Sample Survey in 1993-94, 2004-05, 2009-10 and 2011-12, and study aggregate services as well as 5 individual categories – education, healthcare, transportation, entertainment, and personal services – for both rural India. We begin by showing that expenditures of non-rich sections of the population are, and continue to remain, a significant source of the demand that has supported growth of the service sector over the past two …

Growth Cycles With Or Without Price Flexibility, Peter Skott

Economics Department Working Paper Series

This note -- written in response to von Arnim and Barrales (2015) -- shows that (i) the Kaldor-Goodwin models in Skott (1989a, 1989b) and Skott and Zipperer (2012) provide good approximations to models with fast but finite adjustment of prices, (ii) the models can generate cyclical patterns that match the stylized facts, and (iii) an alternative model with instantaneous output adjustment and fixed prices produces a dynamic system that is virtually identical to the Kaldor-Goodwin; this model may describe parts of the service sector.

The Limits To Wage-Led Growth In A Low-Income Economy, Arslan Razmi

Economics Department Working Paper Series

Neo-Kaleckian literature has actively debated whether growth is wage- or profit-led in capitalist economies. However, existing studies tend to ignore the non-tradable sector and heterogeneity within the tradable sector. This paper shows that incorporating these features renders wage-led growth in an open developing economy unfeasible in the traditional (Kaleckian) sense of the term. This result -- which follows even if one sets aside the competitiveness considerations generally seen as impeding such growth -- occurs due to the presence of a homogeneous goods-producing tradable sector that sets the ceiling to steady state growth. A corollary, in light of findings from the …