Political Economy Commons^™

Can Price Controls Be Optimal? The Economics Of The Energy Shock In Germany, Tom Krebs, Isabella M. Weber

Economics Department Working Paper Series

In the wake of the global energy crisis, many European countries used energy price controls to fight inflation and to stabilize the economy. Despite its wide adoption, many economists remained skepti- cal. In this paper, we argue that price controls should be part of the policy toolbox to respond to shocks to systemically important sectors because not using them can have large economic and polit- ical costs. We put forward our arguments in two steps. In a first step, we analyze the impact on the German economy and society of the global energy crisis that followed Russia’s attack on Ukraine …

Sellers’ Inflation, Profits And Conflict: Why Can Large Firms Hike Prices In An Emergency?, Isabella M. Weber, Evan Wasner

Economics Department Working Paper Series

The dominant view of inflation holds that it is macroeconomic in origin and must always be tackled with macroeconomic tightening. In contrast, we argue that the US COVID-19 inflation is predominantly a sellers’ inflation that derives from microeconomic origins, namely the ability of firms with market power to hike prices. Such firms are price makers, but they only engage in price hikes if they expect their competitors to do the same. This requires an implicit agreement which can be coordinated by sector-wide cost shocks and supply bottlenecks. We review the long-standing literature on price-setting in concentrated markets and survey earnings …

Three Essays On The Political Economy Of Cultural Production And Creative Labor, Luke Pretz

Doctoral Dissertations

This dissertation investigates the relationships between capital, cultural production, and creative labor. Essay one theorizes the basis for the intensification of pop music stardom following the introduction of on-demand streaming technology. Prior to the emergence of on-demand streaming, record labels and broadcasters had a mutualistic relationship, wherein the near cost-free music provided by record labels formed the basis for radio broadcasts, which in turn formed the basis for the consumption of that music. Following the emergence of on-demand streaming the mutualistic relationship was ruptured. Broadcasters, in the form of streaming platforms, transitioned to the cost-efficient cultivation of masses of highly …

Three Essays On The Political Economy Of The Cfa Franc, Francis Perez

Doctoral Dissertations

This dissertation is organized into three essays. The second essay provides a historical overview of the CFA franc and explores why the CFA franc has survived for so long. It argues that a historical and dialectical materialist analysis of the CFA’s history can best explain both its extraordinary longevity and the periodic major reforms to its functioning. The third essay assesses whether the Central Bank of West African States (BCEAO) has an independent monetary policy by examining the relationships between BCEAO’s foreign reserves and base money, and between BCEAO and the European Central Banks’s policy rates. The fourth essay evaluates …

Debris Of Progress: A Political Ethnography Of Critical Infrastructure, Ethan Tupelo

Doctoral Dissertations

In this dissertation, I advance a political ethnography of critical infrastructure to better understand terminal capitalism, in which the waste products of commodification and resource depletion are destroying the ecological systems that support life. My object of study is the massive disjuncture between individual knowledge and intention, and these catastrophic collective planetary outcomes. Theoretically, I develop critical infrastructure theory to diagnose these destructive structures. By “infrastructure,” I mean systems of material and discursive flows fundamental to sedentary human organization, connecting local actions with global systems. Such infrastructure is “critical” in three senses: A) denoting the most important forms of infrastructure …

Four Essays On Peace Consolidation And Ethnic Reconciliation In Postwar Sri Lanka, Narayani Sritharan

Doctoral Dissertations

In four essays, this dissertation explores the process of peace consolidation and economic recovery from the devastating conflict of 1983-2009 in Sri Lanka. This dissertation addresses a timely and important topic. The findings make an important contribution to the literature on economic development and peacebuilding, specifically on the role of foreign aid in alleviating the risks of conflict and helping countries rebuild their economies after conflict. The dissertation highlights important political economy dimensions that help illustrate social and political dynamics that lead to conflict, such as regional and ethnic inequalities, which also influence post-conflict reconstruction. In addition to a historical …

Work, Workers, And Reproducing Social Control: Racial Post-Fordism And Alternative Systems, Hannah Rebecca Archambault

Doctoral Dissertations

This dissertation interrogates the composition of workers, work, and class, as processes in contemporary capitalism and in other existing or future systems. The first section develops a theoretical framework to understand work and workers which draws on Autonomist Marxist, Black radical, and Marxist feminist literatures. This includes considering new forms and organizations of work that arise from current capitalist economic relations, racialized work, and reproductive work. With this framework I build a theory of racial post-Fordism as the current system of economic relations. In the next section, I apply this theory of racial post-Fordism to work and workers in the …

Complexity, Diversity And Integration: Evidence From Recent Us Immigration, Noé Wiener

Economics Department Working Paper Series

This article proposes alternative measures of immigrant integration founded in information theory. By considering differences in the heterogeneity of outcomes between immigrants and natives, the proposed measures provide robust and non-parametric estimates of the extent to which cohorts remain defined by their national origin. Integration is furthermore premised on equality in the association between economic characteristics and incomes, so that other factors can begin to shape outcomes for im-migrants and natives alike. Results for successive immigrant cohorts in the post-war era are presented using Census income data for the United States. The speed by which the mark of migration on …

Inflation In Times Of Overlapping Emergencies: Systemically Significant Prices From An Input-Output Perspective, Isabella M. Weber, Jesus Lara Jauregui, Lucas Teixeira, Luiza Nassif Pires

Economics Department Working Paper Series

In the overlapping global emergencies of the pandemic, climate change and geopolitical confronta- tions, supply shocks have become frequent and inflation has returned. This raises the question how sector-specific shocks are related to overall price stability. This paper simulates price shocks in an input-output model to identify sectors which present systemic vulnerabilities for monetary stability in the US. We call these prices systemically significant. We find that in our simulations the pre-pandemic average price volatilities and the price shocks in the COVID-19 and Ukraine war inflation yield an almost identical set of systemically significant prices. The sectors with system- ically …

Systemic Cycles Of Accumulation And Chaos In The World Capitalist System: A Missing Link, Giorgos Galanis, Christian Koutny, Isabella Weber

Economics Department Working Paper Series

We re-examine the Systemic Cycles of Accumulation (SCA) of Arrighi (2010) and Arrighi and Silver (1999) which provide a framework for the analysis of the cyclical patterns of geographical expansion of trade and production and the related shifts of hegemonic power within the world capitalist system. Within the SCA framework, the last stage of a hegemonic cycle is characterized by what is called ‘systemic chaos’, however the drivers of these chaotic dynamics have not been explicitly analyzed. This article fills this gap by providing a link between the accumulation process, the spatio-temporal fix, and systemic chaos, in three steps. First, …

World Profit Rates, 1960-2019, Deepankar Basu, Julio Huato, Jesus Lara Jauregui, Evan Wasner

Economics Department Working Paper Series

In this paper we present estimates of the world profit rate using country-level data from the Extended Penn World Table 7.0 and industry-level data from the World Input Output Database. The country-aggregated world profit rate series spans the period from 1960 to 2019, and the industry-aggregated world profit rate series runs from 2000 to 2014. The country-aggregated world profit rate series displays a strong negative linear trend for the period 1960-1980 and a weaker negative linear trend from 1980 to 2019. A medium run decomposition analysis reveals that the decline in the world profit rate is driven by a decline …

Three Essays On The Political Economy Of Global Inaction On Climate Change, Tyler A. Hansen

Doctoral Dissertations

This dissertation contributes three essays exploring the political economy of global inaction on climate change. Chapter 1 asks whether climate stabilization means the end of capitalism. Two influential perspectives within environmental political economy—the “degrowth” perspective from ecological economics and the “revolution” perspective from ecological Marxism—answer in the affirmative. If they are right, climate policy programs within capitalism, like the Green New Deal, are non-solutions. I evaluate their arguments, concluding that while environmental sustainability in general likely requires moving beyond capitalism, climate stabilization in particular does not. Given the urgency of the climate crisis, I conclude the chapter by outlining a …

Post-Conflict Recovery Or Conflict Recurrence: A Comparative Analysis Of Economics, Colonial Histories, And Natural Resource Mining In Burkina Faso And Togo, Izabela Frechette

Masters Theses

Directed by: Professor Meredith Rolfe

What are the factors that contribute to peace after civil conflict? What are the factors that contribute to conflict recurrence after civil conflict? In this comparative analysis, Burkina Faso’s military coup in 1988 and Togo’s military coup from 1987-1990 provide two most similar cases that allow for a better understanding of what leads to peace or conflict recurrence. Colonial histories, economics, and natural resource mining are three major factors present in this comparative case analysis that explain why Burkina Faso’s conflict has ended with peace while Togo’s conflict has recurred.

Through a colonial history analysis, …

Care Work In Chile’S Segregated Cities, Manuel Garcia

Doctoral Dissertations

This project combines diverse theoretical and methodological tools to examine the relationship between space and care work in Chile. The chapters are stand-alone articles that come together to tell a single story. The social production of urban space has marginalized thousands of female caregivers from the labor market as Chile’s care system unravels. I argue that community caregiving could simultaneously improve the conditions of caregivers and dependents. Chapter 1 examines the role of residential segregation in reproducing Chile’s meager female labor market participation rates. I use spatial and econometric analysis to show that the social forces that segregate Santiago create …

The Political Economy Of The Cost Of Foreign Exchange Intervention, Devika Dutt

Doctoral Dissertations

Central Banks around the world increasingly intervene in the foreign exchange market for a variety of reasons, such as maintaining exchange rate stability and maintaining a buffer against the impact of capital flight. In fact, research shows that central banks can lean against the macroeconomic policy trilemma through maintaining reserves and intervening in the foreign exchange market, and thereby secure policy space. However, securing this policy space can come at substantial cost. This dissertation explores the political economy of these costs of foreign exchange intervention. Chapter I discusses the concept of the direct cost of intervention, calculates these costs for …

Three Essays On Learning And Conflict Applied To Developing Countries, Amal Ahmad

Doctoral Dissertations

This dissertation uses microeconomics to study questions of learning and conflict in developing countries. The first essay studies how much rural producers in developing countries can learn from their own experience to redress important information gaps about their crop. It builds a theoretical model of learning from experience and applies it using a rich dataset on cotton farmers in Pakistan. I test whether farmers learn from cultivation experience about the pest resistance of their seeds and use this information to improve selection and productivity. I find no such learning effect and this conclusion is robust to several parameters that could …

Three Essays On Socio-Institutional Ecosystems & Labor Structures, Jonathan Donald Jenner

Doctoral Dissertations

In three essays, this dissertation explores the relationship between the social and the economic, with an eye to how social and institutional formations affect economic outcomes. In the first essay, I construct a theoretical base by developing the metaphor of ‘ecosystem’ as a frame for thinking of the various interrelations between social processes and economic phenomena – the socio-institutional ecosystem analysis. In invoking ecosystem as a central metaphor, this dissertation calls into focus the interaction between the economic and the non-economic, recognizing the multiplicity of causal inter- and intra-relationships between the two. I deploy this analysis in two substantive case …

Essays On Exchange Rate Shocks And The Political Economy Of Local Fiscal Policy In Brazil, Raphael Rocha Gouvea

Doctoral Dissertations

Do exchange rate shocks have distributional consequences? Does employment respond to exchange rate shocks? Do political parties matter when it comes to governing cities? Each chapter of this dissertation attempts to answer one of these questions in the Brazilian context. In the first chapter, titled Large devaluations and inflation inequality: evidence from Brazil, I show that prices of tradable goods/lower-priced varieties increase significantly more than the prices of nontradables/higher-priced varieties. These relative price changes may lead to inflation inequality when household consumption baskets are different across the distribution of income. Using Cravino and Levchenko (2017)'s methodology, we show that …

The (Im-)Possibility Of Rational Socialism: Mises In China’S Market Reform Debate, Isabella M. Weber

Economics Department Working Paper Series

This paper investigates the long first decade of reform in China (1978-1992) to show that Mises, in particular his initiating contribution to the Socialist Calculation Debate, became relevant to the reconfiguration of China’s political economy when the reformers gave up on the late Maoist primacy of continuous revolution and adhered instead to an imperative of development and catching up. During the Cultural Revolution, Mao had rejected the notions of efficiency and rational economic management. In the late 1970s, the reformers under Deng Xiaoping’s leadership elevated these notions to highest principle. As a result, Mises’ critique that socialism could not achieve …

Women’S Workforce Participation And Spousal Violence: Insights From India, Arpita Biswas, Anjana Thampi

Economics Department Working Paper Series

Intimate partner violence is a serious form of unfreedom inflicted on women across the world. How does the incidence of such violence vary with women’s workforce participation – a factor that is supposed to enhance their economic well-being? Our study examines this relationship using a nationally representative dataset from India. Given vast heterogeneity among Indian women, we investigate how this link varies by their class and socio-religious identities. Treating women’s employment as endogenous, we find that it is associated with a significantly higher probability of reported spousal violence for women from all wealth quintiles except the topmost and across all …

China’S Ancient Principles Of Price Regulation Through Market Participation: The Guanzi From A Comparative Perspective, Isabella Weber

Economics Department Working Paper Series

The History of Economic Thought as a field has long taken it as a premise that so far as ancient economic thought is concerned, only the Greeks and Romans are worth studying. This paper introduces the Guanzi as a core text in ancient Chinese economic thought on price stabilization from a comparative perspective with ancient Greek contributions. The Guanzi presents a framework for the empirical analysis of market fluctuations and price movements and derives principles of economic governance from this analysis. In contrast Plato and Aristotle come to the question of price determination from the angle of moral philosophy. They …

Shooting For An Economic “Miracle”: German Post-War Neoliberal Thought In China’S Market Reform Debate, Isabella M. Weber

Economics Department Working Paper Series

This paper develops a comparative and connected history of the debates over transition to a market economy in West-Germany after World War II and in China during the first decade of reform and opening up under Deng Xiaoping (1978-1988). At both historical moments the political aim was to reintroduce market mechanisms into a dysfunctional command economy. The question what kind of price reform this required was subject to heated debates among economists. This paper shows how the West-German 1948 currency and price reform was introduced into the Chinese reform debate by German ordoliberals and neoliberals like Friedman. It traces how …

Three Essays On Political Economy Of Uneven Development: Space, Class And State In Pakistan, Danish Khan

Doctoral Dissertations

This dissertation delineates the underlying dynamics of the political economy of uneven development by focusing on the dynamic interaction between socially produced space, class and the state in the context of postcolonial capitalism in Pakistan. The first essay (chapter two) focuses on the political economy of urban slums in the context of a postcolonial city of Islamabad, Pakistan. It presents a new conceptual framework of ‘expulsionary development’ to illustrate that the growth of slums and high-end gated housing enclaves are two sides of the same coin at the urban scale. Dispossession and urban sprawl are the underlying factors which mediate …

Three Essays On The Economics Of Corporate Governance, Kuochih Huang

Doctoral Dissertations

The Great Recession and the revival attention on inequality have cast doubts on various aspects of the governance of Corporate America. Not only the specific design of corporate governance institutions, but also the very purpose of the firm have became hotly debated issues. The first essay investigates the effect of the CEO's equity-based pay on workers' wages and whether the effect is amplified by product market competition. Since the 1980s, Chief Executive Officers' (CEO) pay has exploded, largely in the form of equity-based incentive compensation such as stock awards and options. Using a two-tiered principal-agent model, we show that aligning …

Three Essays On The Past And Future Of Socialism, Mihnea Tudoreanu

Doctoral Dissertations

The idea of economic planning and state ownership of the means of production, which had been central to socialist economic thought for a century and a half, suddenly fell out of favor even among socialists after the fall of the Soviet Union. The three essays of this dissertation are in essence critiques of this 21st century orthodoxy. The first essay addresses the idea of market socialism, as proposed by several academic works in the decades before and after the fall of the USSR. The essay questions whether market socialism would be substantially different from capitalism in practice. It aims to …

Three Essays On The Economics And Political Economy Of The “School-To-Prison Pipeline”, Anastasia C. Wilson

Doctoral Dissertations

This dissertation examines the political economy and economics of the school-to- prison pipeline (STPP). In my first essay, I interrogate approaches to the economics of the STPP. I then situate my analysis within the theoretical lens of Robinson (2000)’s racial capitalism, to show a political economy approach for understanding the nexus of public schooling and the carceral state. Building on the concept of enclosure as presented by Sojoyner (2013, 2016), I describe the emergence and impacts of the STPP to show how this dynamic functions as a racialized economic enclosure, through punitive discipline, exclusion, and criminalization. Next, I examine the …

Marx's Theory Of Ground-Rent: A Suggested Reformulation, Deepankar Basu

Economics Department Working Paper Series

This paper develops a simple theoretical model to analyze Marx's

theory of ground rent. Using the model, I demonstrate two important

results. First, if we take capital as exogenous, then total ground-rent

can be decomposed into the three components: differential rent of the

first variety (DRI), differential rent of the second variety (DRII), and

absolute rent (AR). Second, if we endogenize capital outlays using

profit-maximizing behaviour of capitalist farmers, then absolute rent

becomes zero. Thus, under reasonable behavioural assumptions about

landlords and capitalist farmers, there will be no absolute rent in a

capitalist economy.

Exploitation Of Labour Or Exploitation Of Commodities?, Deepankar Basu

Economics Department Working Paper Series

Attempts to use commodities to construct theories of value and use such value theory to claim that, in capitalism, commodities can be exploited, just like labour is, rest on two conceptual flaws: (a) failure to distinguish between labour and labour-power; and (b) failure to distinguish labour-power and other commodities. One way to avoid these conceptual mistakes is to use the labour theory of value.

Understanding China’S Discourse On South-South Cooperation And China-Africa Higher Education Exchange: A Field Research Study At Zhejiang Normal University’S China-Africa International Business School, Yi Sun

Doctoral Dissertations

This dissertation research attempts to distinguish China’s model from that of the traditional North-South relationship, with a focus on how China’s philosophy articulates its foreign policy and the nation’s higher education engagement with African countries. It examines the China-Africa higher education partnership in response to China’s discourse on South-South Cooperation (SSC), Africa’s human resource flows, and the benefits and constraints of current China-Africa cooperation. In order to achieve these goals, the dissertation uses one of the China-Africa partnership universities in China, Zhejiang Normal University (ZJNU) as a site for its field research. The fieldwork looks at both a student level …

The Historical And Legal Creation Of A Fissured Workplace: The Case Of Franchising, Brian Callaci

Doctoral Dissertations

This dissertation explores the consequences of institutional change in capitalist firms, focusing on vertical dis-integration, the legal boundaries of the firm and what David Weil has called workplace "fissuring," in which corporations place intermediaries (subcontractors, temp agencies, or franchisees) between themselves and workers, often with negative consequences for workers. It focuses specifically on franchising, a type of fissured workplace in which one firm outsources retail operations to smaller, legally independent franchisees. The first chapter uses archival sources to identify the legal and policy changes driving workplace fissuring in the franchising context: specifically the relaxing of antitrust prohibitions on vertical restraints …