Social and Behavioral Sciences Commons^™

Landowner Driven Sustainable Forest Management And Value-Added Processing, David T. Damery

David T. Damery

The Massachusetts Woodlands Cooperative, LLC (MWC) is working to help members conduct sustainable forestry of the highest standards while increasing financial returns from harvest activities. The forests of Massachusetts, the 3rd most densely populated of the United States, are threatened. Decades of high grading and the threat of conversion to alternative use present challenges for maintaining a forested landscape. Despite being 60% forested Massachusetts imports approximately 98% of the wood fiber that its citizens consume.

A Chinese Sky Trust? Distributional Impacts Of Carbon Charges And Revenue Recycling In China, Mark Brenner, Matthew Riddle, James K. Boyce

James K. Boyce

The introduction of carbon charges on the use of fossil fuels in China would have a progressive impact on income distribution. This outcome, which contrasts to the regressive distributional impact found in most studies of carbon charges in industrialized countries, is driven primarily by differences between urban and rural expenditure patterns. If carbon revenues were recycled on an equal per capita basis via a ‘sky trust,’ the progressive impact would be further enhanced: low-income (mainly rural) households would receive more in sky-trust dividends than they pay in carbon charges, and high-income (mainly urban) households would pay more than they receive …

Social Attitudes, Labor Law, And Union Organizing: Toward A New Economics Of Union Density, Thomas I. Palley, Robert M. Lajeunesse

PERI Working Papers

Much has been written about union wage bargaining. Much less has been written about union density, which has been viewed as simply the employment outcome under the wage bargain. This paper presents a new dynamic model of union density that exhibits multiple equilibria and path-dependency. The model builds upon Freeman (1998) who identified the importance of union spending on organizing and business spending on opposing unions. It emphasizes the demand for union representation which depends on wage bargaining outcomes, the state of labor law, and socio-economic factors impacting public attitudes to unions. The model is used to provide a narrative …

Land Reform And Sustainable Development, James K. Boyce, Peter Rosset, Elizabeth A, Stanton

PERI Working Papers

Land reform – the reallocation of rights to establish a more equitable distribution of farmland – can be a powerful strategy for promoting both economic development and environmental quality. This paper surveys land reform strategies, illustrated by the postwar reforms in East Asia and the ‘bottom-up’ land reform today being led by Brazil’s Landless Workers’ Movement. Land reform can reduce rural poverty not only by channeling a larger slice of the agricultural- income pie to low- income households, but also by increasing the size of the pie by raising land productivity. Land reform’s contribution to poverty reduction can be magnified …

Exchange Market Pressure, Monetary Policy, And Economic Growth: Argentina In 1993-2004, Clara Garcia, Nuria Malet

PERI Working Papers

The pressure in the exchange market against a particular currency has been frequently measured as the sum of the loss of international reserves plus the loss of nominal value of that currency. This paper follows the tradition of investigating the interactions between such measure of exchange market pressure (EMP) and monetary policy; but it also questions the usual omission of output growth in the empirical investigations of the interrelations between EMP, domestic credit, and interest rates. The focus of this work is Argentina between 1993 and 2004. As in previous studies, we found some evidence of a positive and double-direction …

The Work Environment Index: Technical Background Paper, James Heintz, Jeannette Wicks-Lim, Robert Pollin

PERI Working Papers

The vast majority of Americans work for a living. The track record of different states varies widely when it comes to providing decent opportunities for working people. The Work Environment Index (WEI) captures these differences and provides a basis for evaluating how well each state does in creating an economy that supports its working population. The purpose of this article is to detail the construction of the WEI and to explain the design of the Index. This paper serves as a technical companion to the report Decent Work in America: The 2005 Work Environment Index.

Inflation And Economic Growth: A Cross-Country Non-Linear Analysis, Robert Pollin, Andong Zhu

PERI Working Papers

This paper presents new non-linear regression estimates of the relationship between inflation and economic growth for 80 countries over the period 1961 – 2000. We perform tests using the full sample of countries as well as sub-samples consisting of OECD countries, middle-income countries, and low-income countries. We also consider the full sample of countries within the four separate decades between 1961 – 2000. Considering our full data set we consistently find that higher inflation is associated with moderate gains in GDP growth up to a roughly 15 – 18 percent inflation threshold. However, the findings diverge when we divide our …

Neoliberalism, Global Imbalances, And Stages Of Capitalist Development, Minqi Li, Andong Zhu

PERI Working Papers

This paper examines certain structural macroeconomic relations in the neoliberal global economy. The current global economy rests upon three unsustainable trends: the debt-driven U.S. consumption expansion; China’s excessive investment expansion; and the large and rising U.S. current account deficits. When these trends are eventually reversed or corrected, there could be major upheavals in the world economy. The decline of neoliberalism may pave the way for a new set of economic, political, and social institutions.

A Chinese Sky Trust? Distributional Impacts Of Carbon Charges And Revenue Recycling In China, Mark Brenner, Matthew Riddle, James K. Boyce

PERI Working Papers

The introduction of carbon charges on the use of fossil fuels in China would have a progressive impact on income distribution. This outcome, which contrasts to the regressive distributional impact found in most studies of carbon charges in industrialized countries, is driven primarily by differences between urban and rural expenditure patterns. If carbon revenues were recycled on an equal per capita basis via a ‘sky trust,’ the progressive impact would be further enhanced: low-income (mainly rural) households would receive more in sky-trust dividends than they pay in carbon charges, and high-income (mainly urban) households would pay more than they receive …

A Laboratory Investigation Of Compliance Behavior Under Tradable Emissions Rights: Implications For Targeted Enforcement, James J. Murphy, John Stranlund

PERI Working Papers

This paper uses laboratory experiments to test the theoretical observations that both the violations of competitive risk-neutral firms and the marginal effectiveness of increased enforcement across firms are independent of differences in their abatement costs and their initial allocations of permits. This conclusion has important implications for enforcing emissions trading programs because it suggests that regulators have no justification for targeting their enforcement effort based on firm-level characteristics. Consistent with the theory, we find that subjects’ violations were independent of parametric differences in their abatement costs. However, those subjects that were predicted to buy permits tended to have higher violation …

What Motivates Common Pool Resource Users? Experimental Evidence From The Field, Maria Alejandra Vélez, John K. Stranlund, James J. Murphy

PERI Working Papers

This paper develops and tests several models of pure Nash strategies of individuals who extract from a common pool resource when they are motivated by a combination of self-interest and other motivations such as altruism, reciprocity, inequity aversion and conformism. We test whether an econometric summary of subjects’ strategies is consistent with one of these motivations using data from a series of common pool resource experiments conducted in three regions of Colombia. As expected, average extraction levels are less than that predicted by a model of pure self-interest, but are nevertheless sub-optimal. Moreover, we find that a model of conformism …

Landowner Driven Sustainable Forest Management And Value-Added Processing, David T. Damery

PERI Working Papers

The Massachusetts Woodlands Cooperative, LLC (MWC) is working to help members conduct sustainable forestry of the highest standards while increasing financial returns from harvest activities. The forests of Massachusetts, the 3rd most densely populated of the United States, are threatened. Decades of high grading and the threat of conversion to alternative use present challenges for maintaining a forested landscape. Despite being 60% forested Massachusetts imports approximately 98% of the wood fiber that its citizens consume. MWC is a forest management, processing and marketing cooperative organized by and on behalf of forest landowners in western Massachusetts. The cooperative was envisioned in …

Heterogeneity And Common Pool Resources: Collective Management Of Forests In Himachal Pradesh, India, Sirisha C. Naidu

PERI Working Papers

In the past two decades, theoretical and empirical evidence suggests that communities of resource users are capable of overcoming social dilemmas, and are capable of creating and sustaining institutions designed to prevent degradation of common pool natural resources. However, there is incomplete understanding of what motivates this group-level behavior and why some communities are better adept at solving collective action problems than others. This paper specifically explores the role of group heterogeneity in collective action among forest communities in the northwestern Himalayas. Heterogeneity can have important social and ecological consequences and understanding both its nature and effects can help in …

Gill, Massachusetts: The Mariamante Parcel, Center For Economic Development

Center for Economic Development Technical Reports

In December of 2004, the small Massachusetts town of Gill took a tremendous step to influence its own future. A fifteen acre parcel of land in the south of town, near the intersection of two important town roads, had been put up for sale by its previous owners. The land had been under an agricultural preservation restriction, a program enabled by Massachusetts General Law Chapter 61 A. As part of this restriction, if the land were ever sold, the town would have right of first refusal.

The town's recent Community Development Plan has identified the parcel as a prime site …

Economic Development Plan Town Of Warren, Massachusetts, Center For Economic Development

Center for Economic Development Technical Reports

This section of the Comprehensive Plan identifies economic development strategies within the framework of various development opportunities available to Warren given its current economic and geographical standing within the region. These economic development strategies strive to meet the needs and desires of the residents of Warren, Massachusetts based on their input and an analysis of local and regional economic trends and conditions. These potential economic strategies, intended to promote future economic growth, are in alignment with the Town’s core values and community goals.

Warren currently has two village centers, an active mill complex, significant open space, rivers and wetlands, and …

Haverhill Street Corridor Study: Methuen, Massachusetts, Center For Economic Development

Center for Economic Development Technical Reports

The City of Methuen’s Department of Planning and Community Development hired a team of students from the University of Massachusetts Amherst’s Master’s in Regional Planning studio class to examine the growth impacts of a potential highway interchange reconfiguration. Exit 46 of Interstate 93 in Methuen is a failed interchange, and will likely be reconfigured in the next ten years. Methuen, a middle class city of 44,000 midway between Boston, MA and Manchester, NH, is currently experiencing significant growth pressures. The reconfigured interchange will only add to these pressures.

In consultation with the client, the studio team focused its analysis on …

From Lane To Lee A Quarry's Potential, Center For Economic Development

Center for Economic Development Technical Reports

In collaboration with a student team from the Department of Landscape Architecture and Regional Planning at the University of Massachusetts Amherst, the Community Development Corporation of Lee explored the potential reuse of an industrial parcel owned by Lane Construction Corporation in Lee, Massachusetts. The 243-acre property is currently in operation as a gravel and sand operation and asphalt processing plant in Lenox Dale, north of Lee center.

Identified as one of the largest industrial zoned parcels in New England, the Lane site has great economic potential in the future development of the town and the surrounding region. However, the site …

Market Power In Direct Marketing Of Fresh Produce: Community Supported Agriculture Farms, Daniel A. Lass, Nathalie Lavoie, Robert T. Fetter

Daniel A. Lass

CSA farms establish a loyal customer base and, potentially, market power. A new empirical industrial organization (NEIO) approach and survey data from Northeast CSA farms are used to determine whether CSA farms have market power and the extent to which they exercise their market power. Results suggest CSA farms exert about two percent of their potential monopoly power.

Market Power In Direct Marketing Of Fresh Produce: Community Supported Agriculture Farms, Daniel A. Lass, Nathalie Lavoie, Robert T. Fetter

Nathalie Lavoie

CSA farms establish a loyal customer base and, potentially, market power. A new empirical industrial organization (NEIO) approach and survey data from Northeast CSA farms are used to determine whether CSA farms have market power and the extent to which they exercise their market power. Results suggest CSA farms exert about two percent of their potential monopoly power.

Risk Management In The Integrated Nafta Market: Lessons From The Case Of Bse, Julie Caswell, David Sparling

Julie Caswell

No abstract provided.

Racism, Xenophobia, And Redistribution, Woojin Lee, John Roemer, Karine Van Der Straeten

Economics Department Working Paper Series

We report here a summary of our recent research on the effect that the race issue, in the United States, and the immigration issue in European countries, is having on the degree of redistribution and the size of the public sector that is implemented through political competition. We model political competition as taking place on a two dimensional policy space, where the first issue is the tax rate, or the size of the public sector, and the second issue is the race or immigration issue. Our substantive conclusion is that the conservative economic agenda has been given new life in …

Exercises In Futility: Post-War Automobile-Trade Negotiations Between Japan And The United States, Donald W. Katzner, Mikhail J. Nikomarvo

Economics Department Working Paper Series

This paper traces the history of the failed automobile-trade negotiations between Japan and the United States from the 1970’s to the mid 1990’s. It attributes the failure of those negotiations to a lack of understanding on both sides of not only what was motivating the other side, but also the unalterable cultural, social, and economic constraints under which the other side operated.

Can Macroeconomic Policy Stimulate Private Investment In South Africa? New Insights From Aggregate And Manufacturing Sector-Level Evidence, Léonce Ndikumana

Economics Department Working Paper Series

This study explores the determinants of investment using both aggregated industry-level data and disaggretated data on 27 sub-sectors of the manufacturing sector for the period 1970-2001. According to the results in this study, the government has potentially powerful means at its disposal to stimulate private investment. In particular, a domestic demand stimulus and public investment expansion will produce large gains in private investment. While the direct effects of lowering the interest rate appear to be quantitatively small, indirect effects operating notably through domestic demand and cheaper credit are likely to be large. The evidence in this study also indicates that …

Distributional Conflict, The State, And Peace Building In Burundi, Léonce Ndikumana

Economics Department Working Paper Series

This paper examines the causes of conflict in Burundi and discusses strategies for building peace. The analysis of the complex relationships between distribution and group dynamics reveals that these relationships are reciprocal, implying that distribution and group dynamics are endogenous. The nature of endogenously generated group dynamics determines the type of preferences (altruistic or exclusionist), which in turn determines the type of allocative institutions and policies that prevail in the political and economic system. While unequal distribution of resources may be socially inefficient, it nonetheless can be rational from the perspective of the ruling elite, especially because inequality perpetuates dominance. …

Cultural Variation In The Theory Of The Firm, Donald W. Katzner

Economics Department Working Paper Series

This paper presents a model of the firm that includes the possibility of firm and employee-on-the-job decision making based on alternatives to profit and utility maximization. Such alternatives are relevant and significant when explaining firm activity in cultural environments in which self interest is not considered to be a primary force driving human behavior. Three types of firms are defined and their properties compared: the Western firm, the Japanese firm, and the clan. The third is a combination of the first two.

Keynesian Theory And The Ad-As Framework: A Reconsideration, Amitava Krishna, Peter Skott

Economics Department Working Paper Series

Contrary to what has been argued by a number of critics, the AD-AS framework is both internally consistent and in conformity with Keynes’s own analysis. Moreover, the eclectic approach to behavioral foundations allows models in this tradition to take into account aggregation problems as well as evidence from behavioral economics. Unencumbered by the straightjacket of optimizing microfoundations, the approach can provide a useful starting point for the analysis of dynamic macroeconomic interactions. In developing this analysis, the AD-AS approach can draw on insights from the Post Keynesian, neo-Marxian and structuralist traditions, as well as from the burgeoning literature on behavioral …

Prosperity And Stagnation In Capitalist Economics, Toichiro Asada, Peter Flaschel, Peter Skott

Economics Department Working Paper Series

The KMG growth dynamics in Chiarella and Flaschel (2000) assume that wages, prices and quantities adjust sluggishly to disequilibria in labor and goods markets. This paper modifies the KMG model by introducing Steindlian features of capital accumulation and income distribution. The resulting KMGS(teindl) model replaces the neoclassical medium- and long-run features of the originalKMG model by a Steindlian approach to capital accumulation, as developed in a paper by Flaschel and Skott (2005). The model is of dimension 4 or 5, depending on the specification of the labor supply. We prove stability assertions and show that loss of stability always occurs …

The Effects Of Export-Oriented, Fdi-Friendly Policies On The Balance Of Payments In A Developing Economy: A General Equilibrium Investigation, Arslan Razmi

Economics Department Working Paper Series

Many developing countries have adopted investor-friendly policies in recent years in order to attract export-oriented foreign direct investment (FDI). The effects of these policies on the external accounts have been largely ignored. This paper endogenizes FDI inflows in a structuralist general equilibrium framework to contribute towards filling this gap. Our economy consists of: (i) a non-tradable goods sector and (ii) an export processing zone (EPZ) that hosts transnational corporations. The analysis finds that, contrary to widely-shared perceptions, the short-run effects of FDI-friendly policies on the balance of payments may frequently be negative due to the nature of both the investments …

The Role Of The State In Economic Transformation: Comparing The Transition Experiences Of Russia And China, David M. Kotz

Economics Department Working Paper Series

No abstract provided.

The Contractionary Short-Run Effects Of Nominal Devaluation In Developing Countries: Some Neglected Nuances, Arslan Razmi

Economics Department Working Paper Series

This paper extends the model developed by Krugman and Taylor (1978) to take into account interesting features of the evolving structure of global trade. The growing presence of transnational production chains and differential pricing behaviour of exports destined for industrial and developing countries are accommodated. Individual country and panel data pass-through estimates derived from several econometric approaches are provided to justify the latter extension. The likelihood of contractionary short-run effects of devaluations is shown to be positively related to: (1) the proportion of a country's exports destined for other developing countries, and (2) the presence of TNCs in either the …