Economics Commons^™

Estimating Regional Trade Agreement Effects On Fdi In An Interdependent World, Badi H. Baltagi, Peter Egger, Michael Pfaffermayr

Center for Policy Research

Recent research on trade and multinationals highlights a novel issue with multinational firms. In particular, their integration strategies are complex and the degree of vertical integration varies in a multilateral world with many possible locations of activity. Multinationals may choose some plants to serve consumers locally only, whereas others engage in trade. Overall, this may explain the fact that a high percentage of world trade is actually controlled by multinational firms, although most of the foreign direct investment (FDI) occurs within the block of developed countries. The most important regional trade agreements (RTAs) are signed between members of the very …

Adam Smith And Poverty, Jonathan B. Wight

English Faculty Publications

Can we end poverty in America? Does economic theory offer a solution? Humility would be a good starting place, because systemic problems like generational poverty rarely stem from single causes. Putting the broken pieces together is difficult when some edges are sharp, some are shattered, and others missing. This essay draws on insights from Adam Smith in order to examine the problem of poverty. It focuses on a case study involving Serena Robins (the real names have been altered).

Ape205, Section 4, Real Competition, Irop, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Schumpeter, J. A. (1969). The dynamics of competition and monopoly. In A. Hunter (Ed.), Monopoly and competition: Selected readings (pp. 40–67). Penguin.

• Graphs titled "Figure 8: US incremental rate of profit (major industries), 1987-2005" and "Figure 8A: Utilization adjusted US incremental rate of profit (major industries), 1987-2005"

• A graph titled "r1new manufacturing"

• A graph titled "Regulating rate of profit, mfg. (incremental rates adj for WEQ and p,w,u changes)"

• A graph titled "Regulating rates of profit, major industries (adj for WEQ and p, w, u changes)"

• Graphs titled "Figure 6: US incremental …

Deficit Reduction In The U.S. Senate : The Search For Moral Leadership In The Budget Process, David Kendall Roberts

Honors Theses

Contemporary deficit reduction and fiscal responsibility are central to the economic wellbeing of future generations as well as their ability to freely decide their own policy priorities. Many scholarly publications and popular commentary on budget policy describe the obstacles to deficit reduction and political leaders' unwillingness to address the nation's long-term fiscal problems. However, current discussions of budget deficits and the national debt have not been informed by a comprehensive empirical analysis of attempts to reduce the deficit. This thesis examines all deficit-affecting floor amendments to budget legislation from 1975 to 2005 in order to assess whether the bleak account …

Stock Prices And Economic Growth: Are They Related?, Peter J. Saunders, Koushik Ghosh

All Faculty Scholarship for the College of Business

This paper investigates the relationship between economic growth and stock prices in the U.S. Quarterly data on NASDAQ, DJIA, S&P 500 and real GDP ranging from the first quarter of 1971 to the fourth quarter of 2005 are analyzed. Cointegration test results indicate that while RGDP and S&P 500 are not cointegrated, RGDP and NASDAQ appear to be cointegrated. VEC analyses of the RGDP and NASDAQ data indicate that in the short-run, RGDP has a positive impact on stock prices. Further Granger causality testing of the data indicates that RGDP Granger -causes both changes in DJIA and S&P 500.

The Flood: Political Economy And Disaster, Mari J. Matsuda

Georgetown Law Faculty Publications and Other Works

As summer faded to fall in 2005, a hurricane hit New Orleans, a city so unique in its history that it has more history than many American cities. It was nonetheless an American city in these telling parameters: a city of luxury alongside squalor, two-thirds Black, one-fourth poor, with the gap between its rich and poor growing at a gallop as the waters of lake and river lapped gently along aging, grass-covered levees.

Freeze the frame before the waters rise, and what do you see? A devastated public school system, where Black children are labeled “failing,” along with their schools. …

Foreign Direct Investment(Fdi) Inflows To Asean Member Countries: Problems And Prospects, Rosalina Palanca-Tan

Economics Department Faculty Publications

FDI has played an important part in the industrialization and growth experience of ASEAN countries. The growth in Gross Domestic Product (GDP) of ASEAN as a whole is strongly correlated with inflows of FDIs in the region. The share of ASEAN in global FDI inflows is disproportionately larger than its share in global GDP. About 5% of total world FDI went to ASEAN member countries during the period 1980-2005 while the region accounted for less than 2% of world GDP. This reflects the perceived attractiveness of ASEAN member countries as FDI hosts. Global firms were initially attracted by favorable conditions …

Internal Increasing Returns To Scale And Economic Growth, John A. List, Haiwen Zhou

Economics Faculty Publications

This study develops a model of endogenous growth based on increasing returns due to firms' technology choices. Particular attention is paid to the implications of these choices, combined with the substitution of capital for labor, on economic growth in a general equilibrium model in which the R&D sector produces machines to be used for the sector producing final goods. We show that incorporating oligopolistic competition in the sector producing finals goods into a general equilibrium model with endogenous technology choice is tractable, and we explore the equilibrium path analytically. The model illustrates a novel manner in which sustained per capita …

Choices For Financing Fiscal And External Deficits, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The ongoing debate on the growing trade and current account deficits and fiscal deficit needs to be encouraged as it creates awareness of economic issues among the general public and puts pressure on the policy makers to take corrective action. However, this debate has so far been dominated by a superficial or highly perfunctory analysis perpetuated by two extreme positions. Those who wish to criticize and find fault with the government paint a doom and gloom scenario and argue that deficits are a result of mismanagement and wrong economic policies pursued and pose a serious threat to macroeconomic stability and …

Pakistan's External Sector: An Analytical Survey 1999–2000 To 2005–06, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Recent media reports, commentators and editorials have raised questions about the growing trade deficit faced by Pakistan in the current fiscal year, as well as, about the rise in the absolute level of External Debt. In raising these issues, a serious concern has been expressed about Pakistan's ability to pay its external obligations and the impact on foreign reserves in the future. Alternatively, it is argued, that these obligations can be paid only by incurring higher debt from abroad and thus increasing debt burden.

What Is Fiscal Deficit?, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Fiscal deficit, Revenue deficit, Primary deficit, Government expenditure, Tax revenue, External account, Balance of payments, Current account, Capital account, Foreign exchange reserves

Net Injectors Of Purchasing Power, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Credit and inflation template [Annotated spreadsheet packet compiling IFS banking data, domestic credit, GDP, trade, inflation, unemployment, and related analytical charts]. (2007, December 19).
• International Monetary Fund. (2000). Monetary and financial statistics manual [Annotated excerpt from Chapters VI-VII on money, credit, debt, and the framework for monetary statistics].
• Kucera, J., & Shaikh, A. (2007, December 9-17). Re: IFS categories [Annotated email thread on banking surveys, credit flows, high-powered money, and trade credit].
• Summary of IFS data [Handwritten working notes on banking-survey categories and domestic-credit calculations]. (ca. 2005, December 18).
• International Monetary Fund. (1995). International financial statistics yearbook: …

Stock-Flow, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Handwritten notes on Harrod, Keynes, Asimakopulos, and the investment-savings function (A. Shaikh, PhD, n.d.).
• Handwritten notes on the creation of bank notes and the function of early banking (A. Shaikh, PhD, n.d.).
• Handwritten notes with IS-LM diagrams discussing Keynes, Robertson, and the multiplier (A. Shaikh, PhD, n.d.).
• Handwritten notes with equations on liquidity preference, mentioning Asimakopulos (A. Shaikh, PhD, n.d.).
• Handwritten notes on Keynes and the paradox of thrift (A. Shaikh, PhD, n.d.).
• Handwritten notes on portfolio readjustment, money supply, and demand referencing Godley, Faure, and Marx (A. Shaikh, PhD, 2001–2002).
• Handwritten notes on Marx's theory of …

Micro, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Handwritten notes titled MICRO discussing profit rate equalization, taxes, and profit margins

• A spreadsheet key titled IROP-dec28excl1.xls defining variables for Gross Value Added (GVA), compensation, and capital

• A document titled US ROP DATABASE outlining the methodology for calculating the rate of profit and listing raw data sources from the Bureau of Economic Analysis and the IMF (2007, November 8)

• Handwritten notes titled Sources of Variations between Old & New Measures comparing All Private and Corporations data (2007, October 28)

• Charts from IROP_Dec28excl1.xls showing the average rate of profit, incremental rate of profit, and their relation to standard …

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My Microfoundation - Theory Of The Firm, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (1985, May 10). My micro foundation: Theory of the firm [Unpublished handwritten notes discussing competition and price setting, referencing Domar, Harrod, and Kalecki].

• Shaikh, A. (2007, November 1). ROP measurement notes: Corporate rate of profit [Unpublished typed manuscript].

• Shaikh, A. (2007, May 2). Unequal profit rates and theories of competition and oligopoly [Unpublished typed manuscript].

• Shaikh, A. (2011, May 4). Charts U.S. profit rate equalization: Deviations in the U.S. incremental rate of profit, 1987–2005 [Unpublished charts].

• Shaikh, A. (2011, March 29). Schefold: Sraffa's amortisation as substitute for missing markets [Unpublished handwritten notes].

• Shaikh, A. (n.d.). …

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Ape205, Section 4, Real Competition, Loose Notes, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Handwritten notes discussing profit rate differences across firms, citing John Cable, Dennis Mueller, Bain, Schumpeter, and Geroski & Jacquemin (1985) (September 16, 2007)

• Handwritten notes with related equations

• Handwritten notes titled "Classical equaliz process" (January 18, 2008)

• EViews documentation on structuring workfiles and panel data (October 27, 2004)

• Handwritten notes titled "Data on EViews" showing regression equations

• An email from Pu Chen regarding panel models in EViews (February 15, 2008)

• Handwritten notes outlining panel data model specifications and tests

• A document titled "Panel data analysis" by Pu Chen (February …

Profitability, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Document titled Incremental ROP and the markup (2007-02-20)

• Graphs with notes for Thailand showing various rates, including profit and stock market returns (1983–1999)

• Document by Mejorado, A., & Roman, M. titled Profitability and Capital Accumulation in Major OECD Countries: Highlights, including numerous graphs for OECD countries and the United States covering output-capital ratios, profit rates, accumulation, unemployment, capacity utilization, inflation, credit flows, and international comparisons (2006-10-23)

• Handwritten to-do notes regarding data sources (2006–2007)

Distributing Indivisible Goods Fairly: Evidence From A Questionnaire Study, Dorothea K. Herreiner, Clemens Puppe

Economics Faculty Works

We report the results of a questionnaire study on the fair distribution of
indivisible goods. We collected data from three different subject pools, first- and secondyear students majoring in economics, law students, and advanced economics students with some background knowledge of fairness theories. The purpose of this study is to assess the empirical relevance of various fairness criteria such as inequality aversion, the utilitarian principle of maximizing the sum of individual payoffs, the Rawlsian “maximin” principle of maximizing the payoff of the worst-off individual, and the criterion of envy-freeness (in the sense of Foley, 1967).

Aggregate Production Functions, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Aggregate production functions and the measurement of infrastructure productivity: A reassessment. (2000, November 1). [Unpublished manuscript].

• Correcting for biases when estimating production functions: An illusion of the laws of algebra? (2007, August 9). [Unpublished Cambridge Journal of Economics referee report]. Manuscript.

Outsourcing To Staffing Services: How Manufacturers' Use Of Staffing Agencies Affects Employment And Productivity Measurement, Matthew Dey, Susan N. Houseman, Anne E. Polivka

Employment Research Newsletter

No abstract provided.

The Equipment Hypothesis And U.S. Economic Growth, Alexander J. Field

Economics

In several articles published in the 1990s, de Long and Summers argued that investment in producer durables had a high propensity to generate externalities in using industries, resulting in a systematic and substantial divergence between its social and private return. They maintained, moreover, that this was not the case for structures investment. Together, these claims constitute the equipment hypothesis. This paper explores the degree to which the history of US economic growth in the 20th century supports it.

Perbandingan Profitabilitas Industri Perbankan Syariah Dan Industri Perbankan Konvensional Menggunakan Metode Struktur Kinerja Dan Perilaku, Fitri Amalia, Mustafa Edwin Nasution

Jurnal Ekonomi dan Pembangunan Indonesia

Positive correlation between concentration and profitability is not always a result of collusion. Market concentration can be a proxy for efficiency and product differentiation that have done by company. The company that can be mentioned efficient and have done product differentiation can improve market share, and industry that consist of the company has tendency to be concentrated.

This research tries to prove whether market share and concentration in Islamic and conventional banking industry as proxy to efficient. If it is proven, so there is no relationship between market share and concentration with profitability. It is appropriate with efficient structure hypothesis. …

Prediksi Ihsg Dengan Model Garch Dan Model Arima, Nachrowi D. Nachrowi, Hardius Usman

Jurnal Ekonomi dan Pembangunan Indonesia

This study search for proper models to forecast Jakarta Composite Index (JCI) and then compare their forecasts. The stock index from strong markets, like Dow Jone Industrial Average (DJIA) and NIKKEi, as well as the index from regional markets, like SET, are expected to have strong influences on JCI. More specifically, it is expected that SET will be able to explain the realocation of short term Jund from Thailand to Indonesia through capital market due to unfavour political situation in Thailand. Other than that, exchange rate is also expected to have effect on JCI movements. By using the daily data …

Demand-Led Policies For Growth, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Taylor, L. (2007, April 13). Demand-led policies for growth: What theory tells us [Paper].

• Shaikh, A. (2007, February 12). A synthesis of Keynesian and Harrodian growth [Paper].

• Lavoie, M. (1998). The neo-Pasinetti theorem in Cambridge and Kaleckian models of growth and distribution. Eastern Economic Journal, 24(4), 417–434.

• Lavoie, M. (1998). The neo-Pasinetti theorem in Cambridge and Kaleckian models of growth and distribution [Highlighted reprint]. Eastern Economic Journal, 24(4), 417–434.

• Shaikh, A., PhD. (2007, March 1). Debate on normal capacity utilization [Handwritten notes].

The Elasticity Of Taxable Income Over The 1980s And 1990s, Seth H. Giertz

Department of Economics: Faculty Publications

Taxable (and broad) income elasticities are estimated using tax return data from 1979 to 2001. Data from the Continuous Work History Survey (CWHS) yield an estimated taxable income elasticity for the 1990s that is about half the corresponding 1980s estimate. Estimates from the full Statistics of Income, which heavily over-samples high–income filers, generally confirm the CWHS results. More sophisticated income control brings the estimates for the two decades closer together—to 0.40 for the 1980s and 0.26 for the 1990s. Work by Kopczuk (2005) implies that the narrowing of the tax base since 1986 could account for 14 to 29 percent …

Abnormal Trading Volume, Stock Returns And The Momentum Effects, Ying Zheng

Dissertations and Theses Collection (Open Access)

This paper intends to study the intermediate-term momentum and long-term reversal of stock prices by investigating the informational role of unusual trading volume for winner and loser stocks. I argue that unusual trading volume has different implications for winner and loser stocks. Specifically, high trading volume for losers is driven by purchases made by informed investors; while high trade volume for winners could be driven by either information or representativeness bias or both. The arguments are tested in the paper by showing that in the short run, losers/winners with high abnormal trading volume outperform losers/winners with low abnormal trading volume; …

Worldwide Econometrics Rankings: 1989-2005, Badi H. Baltagi

Center for Policy Research

This paper updates Baltagi's (2003, Econometric Theory 19, 165-224) rankings of academic institutions by publication activity in econometrics from 1989-1999 to 1989-2005. This ranking is based on 16 leading international journals that publish econometrics articles. It is compared with the prior rankings by Hall (1980, 1987) for the period 1980-1988. In addition, a list of the top 150 individual producers of econometrics in these 16 journals over this 17-year period is provided. This is done for theoretical econometrics as well as all contributions in econometrics. Sensitivity analysis is provided using (i) alternative weighting factors given to the 16 journals taking …

Panel Cointegration With Global Stochastic Trends, Jushan Bai, Chihwa Kao, Serena Ng

Center for Policy Research

This paper studies estimation of panel cointegration models with cross-sectional dependence generated by unobserved global stochastic trends. The standard least squares estimator is, in general, inconsistent owing to the spuriousness induced by the unobservable I(1) trends. We propose two iterative procedures that jointly estimate the slope parameters and the stochastic trends. The resulting estimators are referred to respectively as CupBC (continuously updated and bias-corrected) and the CupFM (continuously updated and fully modified) estimators. We establish their consistency and derive their limiting distributions. Both are asymptotically unbiased and asymptotically normal and permit inference to be conducted using standard test statistics. The …

Jumpstart Inc: Economic Impact On Northeast Ohio, Ziona Austrian

All Maxine Goodman Levin School of Urban Affairs Publications

This research note estimates the economic impact resulting from JumpStart Inc. investment in start-up companies in Northeast Ohio. JumpStart is a business development organization or, more specifically a venture-development organization that funds high-growth businesses and ideas, works with their founders to develop the businesses into venture-ready entities, and celebrates Northeast Ohio's early-stage company successes.

Ownership And Wages: Estimating Public-Private And Foreign-Domestic Differentials With Leed From Hungary, 1986-2003, John S. Earle, Álmos Telegdy

Upjohn Institute Working Papers

How do state, domestic, private, and foreign ownership of firms differ in average wages? We address these questions using linked employer-employee panel data containing 1.35mln worker-year observations for 21,238 firms from 1986 to 2003 in Hungary. Our econometric methods exploit the long panel together with the presence of 3,700 switches of ownership type in the postsocialist Hungarian transition to estimate these wage differentials.