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Articles 1 - 17 of 17
Full-Text Articles in Social and Behavioral Sciences
The Fih And The Paradox Of Debt: A Microeconometric Approach For Latin America, Alejandro GonzáLez, Esteban Perez-Caldentey
The Fih And The Paradox Of Debt: A Microeconometric Approach For Latin America, Alejandro GonzáLez, Esteban Perez-Caldentey
PERI Working Papers
Hyman Minsky’s financial instability hypothesis (FIH) argues that as part of the normal functioning of capitalist economies robust financial structures tend to evolve into highly leveraged fragile financial structures. The paradox of debt challenges the very foundation of Minsky’s FIH as it sustains that upward and downward phases of the business cycles need not be characterized by processes of respective leveraging and deleveraging. Using a panel of firm-level data and seemingly unrelated regressions we analyze the relationship between debt and investment for twelve Latin American countries for the years 2005 (expansion) and 2009 (contraction). We reject the Paradox of Debt …
Reinvestigating The Prebisch-Singer Hypothesis 1900-2015, Shouvik Chakraborty
Reinvestigating The Prebisch-Singer Hypothesis 1900-2015, Shouvik Chakraborty
PERI Working Papers
This paper analyses the empirical validity of Prebisch-Singer hypothesis using the time series Grilli-Yang Commodity Price Index data spanning from 1900 to 2015. The methodology employed is encapsulated in a three fold approach: a) endogenous detection of structural breaks; b) estimation of trend through piecewise linear regression; and c) validation of the statistical significance of the trends applying the Mann-Kendall test. The four structural breaks endogenously determined, primarily, coincides with four important historical/economic events over the last century: (a) World War I (1914 to 1918) and, thereafter, the Great Depression (1929 to 1939), (b) World War II (1939-1945) and immediate …
A Theory Of Economic Policy Lock-In And Lock-Out Via Hysterisis: Rethinking Economists’ Approach To Economic Policy, Thomas I. Palley
A Theory Of Economic Policy Lock-In And Lock-Out Via Hysterisis: Rethinking Economists’ Approach To Economic Policy, Thomas I. Palley
PERI Working Papers
This paper explores lock-in and lock-out via economic policy. It argues policy decisions may near-irrevocably change the economy’s structure, thereby changing its performance. That causes changed economic outcomes concerning distribution of wealth, income and power, which in turn induces locked-in changes in political outcomes. That is a different way of thinking about policy compared to conventional macroeconomic stabilization theory. The latter treats policy as a dial which is dialed up or down, depending on the economy’s state. Lock-in policy is illustrated by the euro, globalization, and the neoliberal policy experiment.
The Economics Of Just Transition: A Framework For Supporting Fossil Fuel-Dependent Workers And Communities In The United States, Robert Pollin, Brian Callaci
The Economics Of Just Transition: A Framework For Supporting Fossil Fuel-Dependent Workers And Communities In The United States, Robert Pollin, Brian Callaci
PERI Working Papers
We develop a Just Transition framework for U.S. workers and communities that are currently dependent on domestic fossil fuel production. Our rough high-end estimate for such a program is a relatively modest $600 million per year. This level of funding would pay for 1) income, retraining and relocation support for workers facing retrenchments; 2) guaranteeing the pensions for workers in the affected industries; and 3) mounting effective transition programs for what are now fossil-fuel dependent communities. The paper first summarizes the evidence on how much the U.S. fossil fuel industry will need to contract to achieve CO2 emissions reduction targets …
No Country For Young Girls: Market Reforms, Gender Roles, And Pre-Natal Sex Selection In Post-Soviet Ukraine, Lawrence King, Marc Michael
No Country For Young Girls: Market Reforms, Gender Roles, And Pre-Natal Sex Selection In Post-Soviet Ukraine, Lawrence King, Marc Michael
PERI Working Papers
Amartya Sen’s seminal “100 Million Missing Women” brought to light the rapid increase of sex-selective infanticide in India. Since then, interest in the related problem of pre-natal sex-selection has proliferated. Most analyses of the phenomenon, however, have been restricted to developing countries and been carried out at the national or large sub-national region. Pre-natal sex selection is understood as a product of the pull to reduce family size caused by a “demographic transition” combined with the swift spread of modern scanning technology within a still traditional culture or kinship structure that prioritizes male children. This article opens up the analysis …
Opening The Farm Gate To Women? Sustainable Agriculture In The United States, Mark Paul, Anders Fremstad
Opening The Farm Gate To Women? Sustainable Agriculture In The United States, Mark Paul, Anders Fremstad
PERI Working Papers
This paper analyzes the relationship between the growth in the number of women farmers and the rise in sustainable agriculture using the US Census of Agriculture. Assessing full time farmers, we show that farms operated by women earn much lower farm incomes than farms operated by men, such that the gender gap in agriculture is amongst the largest in any occupation. While this inequity can be partly explained by the patrilineal inheritance of land and capital, farms headed by women generate nearly 40 percent less income after controlling for farm assets, work time, age, experience, farm type, and location. We …
The Bonus-Driven “Rainmaker” Financial Firm: How These Firms Enrich Top Employees, Erode Shareholder Value And Create Systemic Financial Instability, Economic Crises And Rising Inequality, James Crofty
PERI Working Papers
We recently experienced a global financial crisis so severe that only massive rescue operations by governments around the world prevented a total financial market meltdown and perhaps another global Great Depression. One precondition for the crisis was the perverse, bonus-driven compensation structure employed in important financial institutions such as investment banks. This structure provided the rational incentive for key decision makers in these firms (who I call “rainmakers”) to take the excessive risk and employ the excessive leverage that helped create the bubble and made the crisis so severe. This paper presents and evaluates extensive data on compensation practices in …
The Gospel Of Co-Operative Capitalism: Acolytes And Apostates, William E. Mccolloch
The Gospel Of Co-Operative Capitalism: Acolytes And Apostates, William E. Mccolloch
PERI Working Papers
The present paper seeks to locate the Bhaduri-Marglin (B-M) model as an historical outcome of the Left's internal disputes over the prospects for social democracy. In better contextualizing the B-M model as a historical response to the perceived political economic failings of the social compromises upon which the growth of post-War advanced capitalist economies had rested, both the model’s popularity and its potential limitations can more easily be understood. Though the B-M framework has frequently come to be referred to as the neo- or post-Kaleckian growth model, such labels perhaps obscure the model's diverse ancestry. The model constituted an attempt …
Profit-Led Growth And The Stock Market, Thomas R. Michl
Profit-Led Growth And The Stock Market, Thomas R. Michl
PERI Working Papers
This paper presents a simple stock-flow consistent model of corporate capitalism with a financial market for firm equities issued by managers as part of their investment plan with the investment rate in turn sensitive to the q-ratio, workers who save for life-cycle motives, and capitalist rentier households who save from a bequest motive. The model assumes full capacity utilization; saving and investment decisions are co-ordinated through changes in the valuation of the capital stock or q-ratio. Changes in valuation can induce enough investment and capitalist consumption to fill the demand gap left by a reduction in the wage share. But …
Capital Controls In A Time Of Crisis, Ilene Grabel
Capital Controls In A Time Of Crisis, Ilene Grabel
PERI Working Papers
The startling resuscitation of capital controls during the global crisis has substantially widened policy space in the global north and south. The paper highlights five factors that contribute to the evolving rebranding of capital controls. These include: (1) the rise of increasingly autonomous developing states, largely as a consequence of their successful response to the Asian crisis; (2) the increasing confidence and assertiveness of their policymakers in part as a consequence of their relative success in responding to the global crisis at a time when many advanced economies have and still are stumbling; (3) a pragmatic adjustment by the IMF …
Inequality And Growth In Neo-Kaleckian And Cambridge Growth Theory, Thomas I. Palley
Inequality And Growth In Neo-Kaleckian And Cambridge Growth Theory, Thomas I. Palley
PERI Working Papers
This paper examines the relationship between inequality and growth in the neo-Kaleckian and Cambridge growth models. The paper explores the channels whereby functional and personal income distribution impact growth. The growth – inequality relationship can be negative or positive, depending on the economy’s characteristics. Contrary to widespread claims, inequality per se does not impact growth. Instead, both growth and inequality are impacted by changes in the underlying forms and pattern of income payments. However, inequality is critical at the microeconomic level as it explains differences in household propensities to consume which are at the foundation of neo-Kaleckian and Cambridge growth …
Do Minimum Wages Lead To Job Losses? Evidence From Oecd Countries On Low-Skilled And Youth Employment, Simon Sturn
Do Minimum Wages Lead To Job Losses? Evidence From Oecd Countries On Low-Skilled And Youth Employment, Simon Sturn
PERI Working Papers
This paper investigates the impact of minimum wages on low-skilled and female low-skilled employment, and reassesses their effect on youth employment. The sample consists of 19 OECD countries from 1997-2013 for low-skilled, and 1983-2013 for young workers. Several different estimation approaches are applied, such as two-way fixed effects, a data-driven approach (LASSO) to pick relevant covariates, an instrumental variable approach to address the potential endogeneity of the minimum wage variable, dynamic difference and system GMM, and a specification in first differences. I present three versions of these estimates, controlling for up to quadratic country- specific time trends. I further investigate …
Wheels Within Wheels Within Wheels: The Importance Of Capital Inflows In The Origin Of The Spanish Financial Crisis, Rafael Fernandez, Clara GarcíA
Wheels Within Wheels Within Wheels: The Importance Of Capital Inflows In The Origin Of The Spanish Financial Crisis, Rafael Fernandez, Clara GarcíA
PERI Working Papers
With the creation of the Euro, the Spanish economy established an exchange rate regime similar to that adopted by many emerging economies during the 1990s. At the same time, the Eurozone as a whole adopted a currency system with features similar to the U.S. currency regime. In emerging economies, as in the U.S. economy, the adoption of these models was accompanied by strong growth in capital inflows, as well as severe financial (mostly banking) and/or macroeconomic (mostly trade) imbalances. Several authors have linked capital inflows with imbalances as cause and effect. This work uses some of those arguments, along with …
Assessing The Jobs-Environment Relationship With Matched Data From Us Eeoc And Us Epa, Michael Ash, James K. Boyce
Assessing The Jobs-Environment Relationship With Matched Data From Us Eeoc And Us Epa, Michael Ash, James K. Boyce
PERI Working Papers
Using matched facility-level data from the US EPA Toxics Release Inventory (TRI) and the US Equal Employment Opportunity Commission EEO-1 database, we assess (1) the trade-off between jobs and environmental quality and (2) the extent to which the distribution of the benefits of employment in industrial production mirrors the distribution of the costs of exposure to hazardous byproducts of industrial activity in the dimension of race and ethnicity. We find no evidence that facilities that create higher pollution risk for surrounding communities provide more jobs in aggregate. The share of pollution risk accruing to ethnic or racial minority groups typically …
Distributional Issues In Climate Policy: Air Quality Co-Benefits And Carbon Rent, James K. Boyce
Distributional Issues In Climate Policy: Air Quality Co-Benefits And Carbon Rent, James K. Boyce
PERI Working Papers
The case for climate policy typically is made on grounds of inter-generational equity, with a presumed tradeoff between the environmental interests of future generations and the economic interests of the present generation. This framing of the problem neglects the scope for designing policies that not only mitigate climate change but also yield net benefits for all or most people who are alive today. This chapter considers two avenues by which climate policy can bring substantial immediate gains to the present generation, via (i) air quality co-benefits from reduced use of fossil fuels; and (ii) recycling of rent created by carbon …
Financing For Gender Equality In The Context Of Sdgs, Stephanie Seguino
Financing For Gender Equality In The Context Of Sdgs, Stephanie Seguino
PERI Working Papers
This paper identifies a series of macro-level tools to create a supportive environment and the resources to promote SDGs related to gender equality. A key argument is that financing for gender equality can be self-sustaining because of the feedback effects from gender equality to economy-wide well-being. Among the tools related to targeted government spending are demand-stimulating macroeconomic policies to promote full employment and public investment. Two types of public investment are explored. Physical infrastructure investment, such as spending on clean water, sanitation, and health clinics, can reduce women’s unpaid care burden. Social infrastructure investment, defined as investment in people’s capabilities, …
The Effects Of Increasing The Minimum Wage On Prices: Analyzing The Incidence Of Policy Design And Context, Daniel Macdonald
The Effects Of Increasing The Minimum Wage On Prices: Analyzing The Incidence Of Policy Design And Context, Daniel Macdonald
PERI Working Papers
We analyze the price pass-through effect of the minimum wage and use the results to provide insight into the competitive structure of low-wage labor markets. Using monthly price series, we find that the pass-through effect is entirely concentrated on the month that the minimum wage change goes into effect, and is much smaller than what the canonical literature has found. We then discuss why our results differ from that literature, noting the impact of series interpolation in generating most of the previous results. We then use the variation in the size of the minimum wage change to evaluate the competitive …