Social and Behavioral Sciences Commons^™

Financing Peace: International And National Resources For Postconflict Countries And Fragile States, James K. Boyce, Shepard Forman

James K. Boyce

This background paper for the World Bank’s World Development Report 2011 discusses current financing arrangements for postconflict countries and fragile states, with a focus on official development assistance. In recent years a consensus has emerged that in these “difficult environments” the core objective is to build effective and legitimate governance structures that secure public confidence through provision of personal security, equal justice and the rule of law, economic well-being, and essential social services including education and health. Yet tensions persist between business-as-usual development policies on the one hand and policies responsive to the demands of peacebuilding on the other. The …

Relations Of Production And Modes Of Surplus Extraction In India, Amit Basole, Deepankar Basu

Economics Department Working Paper Series

This paper uses aggregate-level data, as well as case-studies, to trace out the evolution of some key structural features of the Indian economy, relating both to the agricultural and the informal industrial sector. These aggregate trends are used to infer: (a) the dominant relations of production under which the vast majority of the Indian working people labour, and (b) the predominant ways in which the surplus labour of the direct producers is appropriated by the dominant classes. This summary account is meant to inform and link up with on-going attempts at radically restructuring Indian society.

Gendered Vulnerabilities After Genocide: Three Essays On Post-Conflict Rwanda, Catherine Ruth Finnoff

Open Access Dissertations

This dissertation addresses gendered vulnerabilities after the genocide of 1994 in Rwanda. It consists of three essays, each focusing on the experience of women in a particular aspect of post-conflict development. The first essay analyzes trends in poverty and inequality in Rwanda from 2000 to 2005. The chapter identifies four important correlates of consumption income: gender, human capital, assets, and geography, and examines their salience in determining the poverty of a household and its position in the income distribution. The second essay is an econometric examination of an important health insurance scheme initiated in post-conflict Rwanda. Employing logistic regression techniques, …

Uneven Development And The Terms Of Trade: A Theoretical And Empirical Analysis, Bilge Erten

Open Access Dissertations

Despite the voluminous literature on North-South macroeconomic interactions and the key role of terms of trade variations in growth transmission from one region to another, a significant research gap persists for two reasons. First, there has been very little empirical work on testing of the relationships between growth patterns and terms of trade movements. Second, the empirical studies dedicated to testing the Prebisch-Singer Thesis (PST) focused on testing the long-run tendency for the terms of trade of primary commodities to deteriorate and neglected the joint nature of the predictions arising out of a complete formulation of PST. This dissertation seeks …

The Employment Impacts Of Economy-Wide Investments In Renewable Energy And Energy Efficiency, Heidi Garrett-Peltier

Open Access Dissertations

This dissertation examines the employment impacts of investments in renewable energy and energy efficiency in the U.S. A broad expansion of the use of renewable energy in place of carbon-based energy, in addition to investments in energy efficiency, comprise a prominent strategy to slow or reverse the effects of anthropogenic climate change. This study first explores the literature on the employment impacts of these investments. This literature to date consists mainly of input-output (I-O) studies or case studies of renewable energy and energy efficiency (REEE). Researchers are constrained, however, by their ability to use the I-O model to study REEE, …

Racial Inequality And Affirmative Action In Malaysia And South Africa, Hwok-Aun Lee

Open Access Dissertations

This dissertation examines racial inequality and affirmative action in Malaysia and South Africa, two countries with a politically dominant but economically disadvantaged majority group - the Bumiputera in Malaysia, and blacks in post-Apartheid South Africa. We aim to contribute comparative perspectives and current empirical research on affirmative action regimes and dimensions of inequality directly pertinent to affirmative action, chiefly, racial representation and earnings inequality among tertiary educated workers and in upper-level occupations. We discuss theoretical approaches to inequality and affirmative action, with attention to particular circumstances of majority-favoring regimes, then survey, compare and contrast affirmative action programs and their political …

Three Essays In Chapter 11 Bankruptcy: Post Bankruptcy Performance, Bankrupt Stock Performance, And Relationship With Hedge Funds And Other Vulture Investors, Min Xu

Open Access Dissertations

Firms that emerged from Chapter 11 as public companies have tons of characteristics. The first essay analyzes their post bankruptcy performance, duration effect, and the quality of their projection information. While the sample's post bankruptcy performance does show improvement, their projections tend to be optimistic. Firms with shorter durations in Chapter 11generally achieve better performance than those with longer durations, in terms of Z-scores, but not in excess returns. Compared to firms that did not provide (complete) projection information, the sample firms generally exhibit better improvement, as measured by Z-scores and short term excess returns. The second essay tracks the …

Essays On Behavioral Labor Economics, Philip Pablo Mellizo

Open Access Dissertations

Economists typically understand the firm as an organization comprised of a series of incomplete contracts among input suppliers (e.g. Coase, (1937), Williamson, (1985)). The ultimate right to make decisions that are not subject to a pre-existing contractual arrangement - hereafter referred to as decision-control rights, are assigned to some person or group associated with the enterprise. The entity with decision-control rights has the final say over how to organize essential firm operations that range from the determination of production techniques, to deciding how to monitor or compensate the firm's members. To the extent that firm members have competing interests or …

The Exchange Rate, Diversification, And Distribution In A Modified Ricardian Model With A Continuum Of Goods, Arslan Ramzi

Economics Department Working Paper Series

Several recent empirical and theoretical studies have revived interest in the relationship between the level of the exchange rate and economic development. This paper develops a dynamic model based on the Ricardian framework with a continuum of goods to consider the issue from a somewhat different perspective. In the short run, a devaluation can boost profits in spite of real wage rigidity. Moreover, the resulting diversification can offset the negative consequences for the trade balance of higher employment and profitability at home. Over the longer run, and in the presence of learning-by-accumulation, the initial boost to profits and investment induced …

Exploitation And Profits: A General Axiomatic Approach In Convex Economies With Heterogeneous Agents, Roberto Veneziani, Naoki Yoshihara

Economics Department Working Paper Series

This paper provides an innovative axiomatic analysis of the notion of exploitation as the unequal exchange of labour, focusing on the relation between exploitation and profits. General convex economies with heterogeneous agents endowed with unequal amounts of physical and human capital are considered. An axiomatic characterisation of the class of definitions that preserve the Fundamental Marxian Theorem (FMT) in this general context is derived. It is shown that none of the main received definitions preserves the FMT. Instead, a definition related to the `New Interpretation' (Dumenil, 1980; Foley, 1982) is presented which preserves the FMT and allows one to generalise …

The Great Detour, Peter Skott

Economics Department Working Paper Series

This note comments on the state of macroeconomics, arguing that the ‘micro founded’ macro that developed after 1970s has been a wasteful detour. The paper will appear in a symposium in Homo Oeconomicus, vol. 27 (2), 2010, on the crisis and the response from the British Academy to the questions from the British Queen.

Labor Productivity And The Law Of Decreasing Labor Content, Peter Flaschel, Reiner Franke, Roberto Veneziani

Economics Department Working Paper Series

This paper analyzes labor productivity and the law of decreasing labor content (LDLC) originally formulated by Farjoun and Machover (1983). First, it is shown that the standard measures of labor productivity may be rather misleading, owing to their emphasis on monetary aggregates. Instead, the conventional classical-Marxian labor values provide the theoretically and empirically sound measures of labor productivity. The notion of labor content and the LDLC are therefore central in order to understand the dynamics of capitalist economies. Second, some rigorous theoretical relations between different forms of profit-driven technical change and productivity are derived in a general input-output framework with …

An Empirical Evaluation Of Three Post Keynesian Models, Peter Skott, Ben Zipperer

Economics Department Working Paper Series

Structuralist and post Keynesian models differ in their assumptions about firms’ investment behavior and pricing/output decisions. This paper compares three benchmark models: Kaleckian, Robinsonian and Kaldorian. We analyze the implications of these models for the steady growth path and the cyclical properties of the economy, and evaluate the consistency of the theoretical predictions with empirical evidence for the US. Our regression results and the stylized cyclical pattern of key variables are consistent with the Kaldorian model. The Kaleckian investment function and the Robinsonian pricing behavior find no support in the data.

Intergenerational Justice In The Hobbesian State Of Nature, Paola Manzini, Marco Mariotti, Roberto Veneziani

Economics Department Working Paper Series

We analyse the issue of justice in the allocation of resources across generations. Our starting point is that if all generations have a claim to natural resources, then each generation should be entitled to exercise veto power on the unpalatable choices of the other generations. We analyse this situation as one of bargaining à la Rubinstein, Safra and Thomson [15], which incorporates a notion of justice as mutual advantage, rather than justice as impartiality, as in the Kantian-Rawlsian tradition. Our framework captures some key aspects of the interaction between isolated agents in a Hobbesian state of nature, in which agents …

Labor Heterogeneity, Inequality And Institutional Change, Peter Skott

Economics Department Working Paper Series

US earnings inequality has increased dramatically since the 1970s, and the prospect of a reversal depends on what caused the trend. The standard explanation emphasizes skill-biased technical change. This paper briefly considers some aggregation issues and then proceeds to outline two alternative perspectives .power biased technical change and the effects of induced mismatch in the labor market .and their implications.

A Classical-Marxian Model Of Education, Growth And Distribution, Amitava Krishna Dutt, Roberto Veneziani

Economics Department Working Paper Series

This paper develops a classical-Marxian macroeconomic model to examine the growth and distributional consequences of education. First, the role of education in skill formation is considered and it is shown that an expansion in education will promote growth and have beneficial distributional effects within the working class, but it will redistribute income from workers to capitalists. Second, the model is extended analyze the broader political economic consequences of education on class relations and class conflict. The model suggests the importance of a progressive type of education rather than one which weakens the power workers, for it allows for equitable growth …

An Empirical Evaluation Of Three Post Keynesian Models, Peter Skott, Ben Zipperer

Peter Skott

Structuralist and post Keynesian models differ in their assumptions about firms’ investment behavior and pricing/output decisions. This paper compares three benchmark models: Kaleckian, Robinsonian and Kaldorian. We analyze the implications of these models for the steady growth path and the cyclical properties of the economy, and evaluate the consistency of the theoretical predictions with empirical evidence for the US. Our regression results and the stylized cyclical pattern of key variables are consistent with the Kaldorian model. The Kaleckian investment function and the Robinsonian pricing behavior find no support in the data.

Capitalism In Post-Colonial India: Primative Accumulation Under Dirigiste And Laissez Faire Regimes, Rajesh Bhattacharya

Open Access Dissertations

In this dissertation, I try to understand processes of dispossession and exclusion within a class-focused Marxian framework grounded in the epistemological position of overdetermination. The Marxian concept of primitive accumulation has become increasingly prominent in contemporary discussions on these issues. The dominant reading of "primitive accumulation" in the Marxian tradition is historicist, and consequently the notion itself remains outside the field of Marxian political economy. The contemporary literature has de-historicized the concept, but at the same time missed Marx's unique class-perspective. Based on a non-historicist reading of Marx, I argue that primitive accumulation--i.e. separation of direct producers from means of …

Three Essays On The Political Economy Of Live Stock Sector In Turkey, Hasan Tekguc

Open Access Dissertations

My dissertation consists of three empirical essays where I analyze animal products consumption and marketing. First using cross-sectional household data, I investigate the importance of consumption from home produce (self-provisioning) and conclude that studying food consumption decisions in isolation from production is not warranted for Turkey. I develop a testing procedure incorporated into linear approximation of the almost ideal demand system (LA/AIDS) model to formally test the relevance of food self-provisioning. Studying consumption in isolation from production leads significant overestimation of rural households' responsiveness to price and income signals especially for the dairy and egg products. Second I investigate the …

Clear Economics: State-Level Impacts Of The Carbon Limits And Energy For America’S Renewal Act On Family Incomes And Jobs, James K. Boyce, Matthew Riddle

James K. Boyce

James K. Boyce and Matthew Riddle have updated earlier anlysis that examines the household-level impacts of a cap-and-dividend plan, and how they differ between states. In this paper, the authors not only consider the specific parameters of the 2010 CLEAR Act, but also add an assessment of the state-by-state job creation that would have resulted from the bill. Boyce & Riddle find that interstate differences in the bill’s impact on household incomes would have been small: much smaller than differences across the income spectrum, and vastly smaller than the differences in other federal programs, such as defense spending. As a …

Household Employer Payroll Tax Evasion: An Exploration Based On Irs Data And On Interviews With Employers And Domestic Workers, Catherine B. Haskins

Open Access Dissertations

Although many workers have a private household as their workplace, many household employers are unaware of or fail to meet their state and federal payroll tax obligations, thus undermining the workers’ retirement income security. This dissertation uses sixty interviews with household employers and employees in the Washington, DC, area to investigate the causes and conditions of nanny tax evasion. Ethnographic fieldwork and semi-structured interviews indicate that lack of awareness, tax complexity, social norms of noncompliance, and poor personal ethics diminish payroll tax payment; concern over one’s job, personal ethics and altruistic concern for the employee motivate compliance. An analysis of …

Route Choice Behavior In Risky Networks With Real-Time Information, Michael D. Razo

Masters Theses 1911 - February 2014

This research investigates route choice behavior in networks with risky travel times and real-time information. A stated preference survey is conducted in which subjects use a PC-based interactive maps to choose routes link-by-link in various scenarios. The scenarios include two types of maps: the first presenting a choice between one stochastic route and one deterministic route, and the second with real-time information and an available detour. The first type measures the basic risk attitude of the subject. The second type allows for strategic planning, and measures the effect of this opportunity on subjects' choice behavior.

Results from each subject are …

Bolivia's Coca Headache: The Agroyungas Program, Inflation, Campesinos, Coca And Capitalism In Bolivia, John D. Roberts

Masters Theses 1911 - February 2014

Bolivia in the 1980s was wracked by monetary inflation approaching levels of the German Weimar Republic. Immediately following this time of great financial crisis in Bolivia, the U.N. founded a project through the U.N.D.P. to encourage peasant farmers in Bolivia to switch from growing coca (the plant used manufacture cocaine) to growing other cash crops for market. This crop substitution and development program, called the Agroyungas Project, lasted from 1985 to 1991 and is the focus of this study. While many U.N. pundits and journalists considered the program’s initial small successes promising, it has been considered since its conclusion to …

Human Capital In The City: Exploring The Relationship Between Skill And Productivity In Us Metropolitan Areas, Ryan Wallace

Masters Theses 1911 - February 2014

In economics, new growth theory suggests that knowledge creation and innovation are key drivers of growth. As a result, the ‘new economy’ is increasingly reliant upon the knowledge, skills, and abilities embodied in its workforce, also known as human capital, that facilitate the stimulation and generation of new ideas (Romer 1986, 1990 and Lucas 1988). This research contributes to the understanding of the relationship between stocks of human capital and economic output. I construct metrics to measure concentrations of basic worker skills using the Bureau of Labor Statistics Occupational Information Network (O*NET) and employment estimates for 353 US metropolitan areas. …

Property Rights Reform And Development: A Critique Of The Cross-National Regression Literature, Osvaldo Gómez Martínez, Lawrence King

PERI Working Papers

The legal protection of property rights is increasingly viewed as a crucial, if not the crucial, condition for economic growth and pro-poor development. Empirical support is generally based on cross-national correlations between measures of secure property rights and good development outcomes in the long-run. However, whether these associations hold in the short- and medium-run has, to our knowledge, not been studied. In this paper, we evaluate the relationship between the protection of property rights and growth using three property rights indices from the Heritage Foundation, Fraser Institute and World Economic Forum covering the experience of 162 countries between 1995 and …

Is There A Case For Formal Inflation Targeting In Sub-Saharan Africa?, James Heintz, Léonce Ndikumana

PERI Working Papers

This paper examines the question of whether inflation targeting monetary policy is an appropriate framework for sub-Saharan African countries. The paper presents an overview of inflation targeting, reviews the justification for the regime, and summarizes some major critiques. Monetary policy responses to inflation depend on the source of inflationary pressures. Therefore, the determinants of inflation in African countries are investigated, using dynamic panel data, and the implications for inflation targeting are discussed. These issues are examined in greater detail for the two African countries which have formally adopted inflation targeting, South Africa and Ghana. The analysis is placed in the …

Capital Controls And 21st Century Financial Crises: Evidence From Colombia And Thailand, Bruno Coelho, Kevin P. Gallagher

PERI Working Papers

In the run up to the financial crisis of 2007-2009 many developing nations fell victim to massive inflows of capital, capital that their financial systems found difficult to absorb. One of a number of policy options to respond to such inflows is unremunerated reserve requirements (URR). Two countries, Colombia and Thailand, deployed URR in the second half of the decade. This paper analyses the extent to which those URRs were successful in reducing the overall level and composition of capital inflows, reducing exchange rate appreciation and volatility, stemming asset bubbles, and granting more independence for monetary policy. We find that …

The International Circuit Of Key Currencies And The Global Crisis: Is There Scope For Reform?, Lilia Costabile

PERI Working Papers

The causes of the global crisis are still hotly debated among economists, and for a good reason: the remedy crucially depends upon the diagnosis, and we still need a recipe to exit this crisis, which, in spite of early optimism, is still plaguing the world and Europe, with its sequel of financial disorder, sovereign risks and, above all, mass unemployment . Even more importantly, we need to devise methods by which global crises may be avoided in the future. This paper contributes to this debate by exploring a possible causal link running from our international monetary system to global imbalances, …

The Troubling Economics And Politics Of Paying Interest On Bank Reserves: A Critique Of The Federal Reserve’S Exit Strategy, Thomas I. Palley

PERI Working Papers

The Federal Reserve has recently activated its newly acquired powers to pay interest on reserves of depository institutions. The Fed maintains its new policy increases economic efficiency and intends it to play a lead role in the exit from quantitative easing. This paper argues it is a bad policy that (1) has a deflationary bias; (2) is costly to taxpayers and that cost will increase as normal conditions return; and (3) establishes institutional lock-in that obstructs desirable changes to regulatory policy. The paper recommends repealing the Fed’s power to pay interest on bank reserves. Second, the Fed should repeal regulation …

Economic, Demographic And Housing Trends In 495/Metrowest Region, Henry C. Renski, Kim Mckee

Center for Economic Development Technical Reports

No abstract provided.