Social and Behavioral Sciences Commons^™

Securities Transaction Taxes For U.S. Financial Markets, Robert Pollin, Dean Baker, Marc Schaberg

PERI Working Papers

This paper examines the viability of security transaction excise taxes (STETs) as one policy tool for promoting a more stable financial environment, specifically with respect to the U.S. economy. Contrary to a large recent critical literature, we show that a STET can be designed without creating large distortions between segments of the financial market. We also show that a modest STET for the U.S.—beginning with a 0.5 percent tax on equity trades and scaled appropriately for other financial instruments—would generate substantial new government revenues, on the order of $100 billion per year.

Capitalism, Carol E. Heim

PERI Working Papers

CAPITALISM is an economic system dedicated to production for profit and to the accumulation of value by private business firms. In the fully developed form of industrial capitalism, firms advance money to hire wage laborers and to buy means of production such as machinery and raw materials. If the firm can sell its products for a greater sum of value than that originally advanced, the firm grows and can advance more money for a new round of accumulation. Historically, the emergence of industrial capitalism depends upon the creation of three requirements for accumulation: initial sums of money (or credit), wage …

Measuring The Impact Of Living Wage Laws: A Critical Appraisal Of David Neumark's How Living Wage Laws Affect Low-Wage Workers And Low-Income Families, Mark D. Brenner, Jeannette Wicks-Linn, Robert Pollin

PERI Working Papers

Drawing on data from the Current Population Survey (CPS), David Neumark (2002) finds that living wage laws have brought substantial wage increases for a high proportion of workers in cities that have passed these laws. He also finds that living wage laws significantly reduce employment opportunities for low-wage workers. We argue, first, that by truncating his sample to concentrate his analysis on low-wage workers, Neumark’s analysis is vulnerable to sample selection bias, and that his results are not robust to alternative specifications that utilize quantile regression to avoid such selection bias. In addition, we argue that Neumark has erroneously utilized …

Capacity Utilization, Income Distribution, And The Urban Informal Sector: An Open-Economy Model, Kendall K. Schaefer

PERI Working Papers

Developing economies worldwide have experienced rapid informal sector expansion in response to formal sector unemployment. However, the macroeconomic effects of formal-informal sector dualism have been widely overlooked. This paper develops a two-sector, structuralist, macroeconomic model to analyze the impact of urban informal sector activity on export-led growth policy. The model uses stylized facts from the Johannesburg informal sector and is applicable to countries where informal sector production is concentrated in low-wage goods and commercial services. The paper finds that trade-offs between capacity utilization and reduced income inequality could be magnified when the existence of an urban informal sector is incorporated.

Employment-Oriented Central Bank Policy In An Integrated World Economy: A Reform Proposal For South Africa, Gerald Epstein

PERI Working Papers

The South African Reserve Bank and Ministry of Finance have adopted inflation targeting and the gradual relaxation of exchange controls (along with control of public spending and financial liberalization) as the foundation of their economic policy in an attempt to win the confidence of foreign investors and to attract more foreign investment. However, this policy has not succeded in generating employment growth or investment. Instead, it has contributed to high real interest rates and relative stagnation. In order to improve central bank and capital management policies and have them contribute more to solving the fundamental problems of unemployment and poverty …

An International Index Of Child Welfare, Nasrin Dalirazar

PERI Working Papers

This paper develops an international index of child welfare that can be used for comparisons across countries and over time. Values of this index for the year 1998 are presented for 118 countries. The paper is organized as follows. Sections 2 briefly discusses the importance of child welfare both as a means to advance economic development objectives and as an end in itself. Section 3 calculates National Performance Gaps (NPGs), a concept first introduced by UNICEF (1995) to measure child welfare variables relative to international norms based on per capita income. After reviewing some methodological issues, I present estimates of …

Globalization And The Transition To Egalitarian Development, Robert Pollin

PERI Working Papers

Keith Griffin is one of the giants of economics in our time. His writings on egalitarian development are of course prodigious and highly influential. But what sets him apart from even other leading thinkers in this field is his focus not simply on what should be done to advance an egalitarian development path, but also the specific means through which a more equal society that is also sustainable might actually be achieved. The Transition to Egalitarian Development (1981) was the title of just one of his many works reflecting this set of concerns and approach to research. This should not …

Bargaining Power And Foreign Direct Investment In China: Can 1.3 Billion Consumers Tame The Multinationals?, Elissa Braunstein, Gerald Epstein

PERI Working Papers

Foreign direct investment (FDI) has become a much desired commodity by nations, regions and cities throughout the world. Indeed, governments bid for FDI because it is commonly thought to be an important engine of economic growth, job creation, and technological upgrading. The People’s Republic of China (PRC), the developing world’s largest recipient of FDI and one of the world’s fastest growing economies, is often cited as evidence for the beneficial effects of FDI. Given the PRC’s size and the huge allure of its cheap labor force and customer base, one would think that if any country had the bargaining power …

Global Labor Standards: Their Impact And Implementation, James Heintz

PERI Working Papers

This paper reviews the critical issues concerning the establishment of a global system of labor standards. Global labor standards have gained a renewed prominence in policy debates with the rise of the new international division of labor, in which developing countries are producing an ever-increasing share of the world’s manufactured exports. This paper takes a close look at the research and theories that inform the current debates. In particular, it summarizes the arguments in support of global standards, evaluates the threat of unintended negative consequences, examines gender-specific issues relating to low-wage labor and informal employment, and discusses past and present …

Stock Market Liquidity And Economic Growth: A Critical Appraisal Of The Levine/Zervos Model, Andong Zhu, Michael Ash, Robert Pollin

PERI Working Papers

Levine and Zervos (1998) presented cross-country econometric evidence showing that, in a sample of 47 countries, stock market liquidity contributed a significant positive influence on GDP growth between 1976-93. We show that the Levine-Zervos results are not robust to alternative specifications because of the incomplete manner in which they control for outliers in their data. We show that when one properly controls for outliers, stock market liquidity no longer exerts any statistically observable influence on GDP growth.

Africa’S Debt: Who Owes Whom?, James K. Boyce, Léonce Ndikumana

PERI Working Papers

Sub-Saharan Africa includes 34 of the 42 countries classified as “Heavily Indebted Poor Countries” by the World Bank. The debt burden forces these countries to divert scarce resources from basic necessities, such as health and education, into debt service. Despite bearing these heavy social costs, African countries cannot keep up with the payments, and so they become ever more indebted.

Who Lives On The Wrong Side Of The Environmental Tracks? Evidence From The Epa's Risk-Screening Environmental Indicators Model, Michael Ash, T. Robert Fetter

PERI Working Papers

This study analyzes the social and economic correlates of air pollution exposure in U.S. cities using a unique dataset created as a by-product of the EPA’s Risk-Screening Environmental Indicators model and finds evidence of disproportionate exposure to environmental hazards in communities with higher concentrations of lower-income people and people of color. We improve on previous studies of environmental inequality in three ways. First, where previous studies focus on the proximity to point sources and the total mass of pollutants released, our measure of toxic exposure reflects atmospheric dispersion and chemical toxicity. Second, we analyze the data at a fine level …

Agricultural Globalization In Developing Countries: Rules, Rationales And Results, J. Mohan Rao, Servaas Storm

PERI Working Papers

This paper aims to provide a descriptive and analytical account of the extent to which agriculture in the developing economies has become integrated with external markets. For most developing economies (DEs), the 1980s were a time of crisis when liberal reforms, including domestic and external liberalization of agriculture, were also initiated. This was followed by the coming into force of the Agreement on Agriculture under WTO aegis. The evidence on trade flows does indicate increased agricultural globalization in developing economies (DEs) following these regime shifts. But increased trade flows have not been accompanied by relative price convergence as between the …

City Of Attleboro Economic Development Organizational Study, Center For Economic Development

Center for Economic Development Technical Reports

The organizational structure of a municipal agency plays a critical role in its ability to fulfill its public mission. A well-organized agency is able to achieve its objectives in an effective and efficient manner. In addition, an agency with a clearly defined organizational structure is better prepared to adapt to the changing needs of its community.

Professionals in the field of economic development are especially aware of the value of effective organizational structures. The cyclical nature of local economies often forces economic development agencies to shift focus rapidly in order to address changing economic conditions. Adapting successfully to these changes …

Middlefield Open Space And Recreation Project, Center For Economic Development

Center for Economic Development Technical Reports

Over one thousand acres of farmland, open space, and wetlands are converted to residential or commercial development each week in New England. In Massachusetts, nearly two acres of open space land is lost to development every hour. Current development trends suggest that this building pattern, referred to as sprawl, is likely to continue into the near future. Because the negative consequences of sprawl development are highly visible, residents of Massachusetts are becoming increasingly concerned about its impact on their communities. Residents see the unique character of their communities being transformed by uncontrolled residential and commercial development. Green fields and open …

A Search For The Most Exemplary Towns In Massachusetts, Center For Economic Development

Center for Economic Development Technical Reports

What are the most exemplary cities or towns in the state of Massachusetts? This is the question that this study explores. At the beginning of this semester, Regional Planning Studio 1 was given the task of researching and identifying the three to five municipalities in the state that exhibit the most exemplary planning practices.

To accomplish this task, our research team broke into groups, each addressing what it means for a community to be noted as exemplary. The groups looked at four major categories of communities, those with the fastest growing populations, those experiencing a decline in population, the wealthiest, …

Identification And Evaluation Of Potential Sites For Industrial Park Development In The Town Of Southampton, Massachusetts, Center For Economic Development

Center for Economic Development Technical Reports

The purpose of this report is to identify and evaluate potential sites for industrial park development in the Town of Southampton, Massachusetts. Graduate students in the Regional Planning Department at the University of Massachusetts and members of the Southampton Economic Development Planning Committee selected the eight sites in this study. The site evaluation criteria chosen for this report are based on criteria used by developers to conduct a preliminary evaluation of sites suitable for industrial park development.

Town Of Billerica, Massachusetts Master Plan Appendix B Community Charrette Results, Center For Economic Development

Center for Economic Development Technical Reports

This is Appendix B of the Town of Billerica, Massachusetts Master Plan. This Appendix contains the results of a Community Charrette in Billerica, Massachusetts that helped identify the desires of residents in the community.

Town Of Billerica, Massachusetts Master Plan Appendix A Community Socio-Economic Profile, Center For Economic Development

Center for Economic Development Technical Reports

This is Appendix A of the Town of Billerica, Massachusetts Master Plan. This Appendix contains a Community Socio-Economic Profile.

Town Of Billerica, Massachusetts Master Plan Appendix C Community Survey Results, Center For Economic Development

Center for Economic Development Technical Reports

This is Appendix C of the Town of Billerica, Massachusetts Master Plan. This Appendix contains a summarized report of the results of a community survey.

The Usher Plant Review And 8-Point Action Plan, Center For Economic Development

Center for Economic Development Technical Reports

The Usher Plant is located on Arch Street off of Route 2 in Erving, Massachusetts in the center village of the town. The plant is a rich part of the social, economic, and cultural identity of the town and its residents. The Erving Paper Company occupied this plant from 1964 to approximately 1990, when the company consolidated and moved its operations leaving over one-hundred workers either displaced or unemployed and the Usher Plant vacant.

The closing of the Usher Plant approximately 10 years ago has had a tremendous impact on the community residents, as well as Erving's center village merchants …

Town Of Billerica, Massachusetts Master Plan, Center For Economic Development

Center for Economic Development Technical Reports

Billerica is a community rich in history and burgeoning with change. We come from colonial, agrarian roots, participated in the industrial revolution and enjoyed our day as a vacation destination. Billerica changed as the post war economy changed and became a haven for those, many from the city, seeking a close-knit community to raise families. We are now at the forefront of a high technology economy that has brought with it jobs, hotels and more change. As a community we struggle with our desire to preserve our historical character as a rural community and our realization that economic development is …

Town Of Billerica, Massachusetts Master Plan Appendix D, Center For Economic Development

Center for Economic Development Technical Reports

This is an appendix for the Town of Billerica, Massachusetts Master Plan. This Appendix contains a community buildout analysis for Billerica.

Town Of Billerica, Massachusetts Master Plan Appendix E, Center For Economic Development

Center for Economic Development Technical Reports

This is an Appendix for the Town of Billerica, Massachusetts Master Plan. This Appendix contains an open space and recreation plan for the Town of Billerica.

Public Debts And Private Assets: Explaining Capital Flight From Sub-Saharan African Countries, Léonce Ndikumana, James K. Boyce

Economics Department Working Paper Series

We investigate the determinants of capital flight from 30 sub-Saharan African countries, including 24 countries classified as severely indebted low-income countries, for the period 1970-1996. The econometric analysis reveals that external borrowing is positively and significantly related to capital flight, suggesting that to a large extent capital flight is debt-fueled. We estimate that for every dollar of external borrowing in the region, roughly 80 cents flowed back as capital flight in the same year. Capital flight also exhibits a high degree of persistence in the sense that past capital flight is correlated with current and future capital flight. The growth …

What Determines Cartel Success?, Margaret C. Levenstein, Valerie Y. Suslow

Economics Department Working Paper Series

No abstract provided.

Global Apparel Production And Sweatshop Labor: Can Raising Retail Prices Finance Living Wages?, Robert Pollin, Justine Burns, James Heintz

PERI Working Papers

This paper provides some empirical evidence on issues raised by the global antisweatshop movement. We first consider the relationship between wage and employment growth, finding no consistent trade-off between them. We then measure the share of labor costs in the production of garments in the United States and Mexico. We find that the retail price increases necessary to absorb the costs of substantially raising wages are small, well within the range of price increases that polls suggest U.S. consumers are willing to pay. We close by considering some implications of these results.

The Effects Of Increased Product Market Competition And Changes In Financial Markets On The Performance Of Nonfinancial Corporations In The Neoliberal Era, James Crotty

PERI Working Papers

In the aftermath of the Great Depression and World War II, national economies, even those in which markets played a very powerful role, were placed under the ultimate control of governments, while international economic relations were consciously managed by the International Monetary Fund (IMF) and World Bank. Western governments, with varying degrees of enthusiasm, lent support to unions, regulated business, tightly controlled financial markets, and built social welfare systems. They also began to regulate aggregate demand in pursuit of high employment and fast growth, a phenomenon known as the ‘Keynesian revolution.’ Business and financial interests accepted these changes in part …

The Lighthouse And The Potato: Internalizing The Value Of Crop Genetic Diversity, Stephen B. Brush

PERI Working Papers

The incongruous juxtaposition of my title, “The Lighthouse and the Potato,” refers to two public goods of incalculable value – safe navigation and crop genetic resources. Neither lighthouse keepers nor the farmers who cultivate genetic diversity in potatoes and other crops provide their respective benefits to humankind without cost. The costs of lighthouses are relatively easy to measure – construction of the tower, fuel for the light, wages for the keeper. The costs of sustaining crop genetic resources are less evident, but can be viewed as the income foregone by not switching to new varieties, new crops, or other economic …