Pub Date : 2019-11-11DOI: 10.13133/2037-3643_72.290_1
A. Bhaduri
The paper surveys the author’s research from a personal and autobiographic perspective. The author highlights the political interest and motivations behind the study of economics, as well as discusses some political consequence of economic research. The article focuses on the authors’ contributions on growth, development, and the Indian economy and society. JEL codes : B31, E12, O11
{"title":"The making of a dissenting economist: Amit Bhaduri (1940-)","authors":"A. Bhaduri","doi":"10.13133/2037-3643_72.290_1","DOIUrl":"https://doi.org/10.13133/2037-3643_72.290_1","url":null,"abstract":"The paper surveys the author’s research from a personal and autobiographic perspective. The author highlights the political interest and motivations behind the study of economics, as well as discusses some political consequence of economic research. The article focuses on the authors’ contributions on growth, development, and the Indian economy and society. JEL codes : B31, E12, O11","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46299011","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-11-11DOI: 10.13133/2037-3643_72.290_4
Ilhan Dögüs
I suggest that market concentration at aggregate level has a significant structural impact on the wage differential between white-collar and blue-collar workers. Both phenomena are increasing as larger firms are more inclined to employ and pay more white-collar workers, in order to increase and/or maintain their market share by way of innovative tasks carried out by white-collars such as R&D, design and product differentiation, financial/capital market operations, market research, advertising and sales operations, etc. The causality from market concentration to wage differential runs through an effective demand channel and one based on the diffusion of innovations. The innovative contribution of the paper is to reveal this relationship of structural causality, and to provide a new measurement of aggregate market concentration which is calculated as the reverse of the break-even point. The argument is tested for the case of the USA between 1964 and 2007 using Vector Error Correction Model. The findings confirm the existence of a long-run positive relationship from market concentration in the nonfinancial corporate sector to the wage differential. JEL codes : L1, D4, J31
{"title":"Rising wage differential between white-collar and blue-collar workers and market concentration: The case of the USA, 1964-2007","authors":"Ilhan Dögüs","doi":"10.13133/2037-3643_72.290_4","DOIUrl":"https://doi.org/10.13133/2037-3643_72.290_4","url":null,"abstract":"I suggest that market concentration at aggregate level has a significant structural impact on the wage differential between white-collar and blue-collar workers. Both phenomena are increasing as larger firms are more inclined to employ and pay more white-collar workers, in order to increase and/or maintain their market share by way of innovative tasks carried out by white-collars such as R&D, design and product differentiation, financial/capital market operations, market research, advertising and sales operations, etc. The causality from market concentration to wage differential runs through an effective demand channel and one based on the diffusion of innovations. The innovative contribution of the paper is to reveal this relationship of structural causality, and to provide a new measurement of aggregate market concentration which is calculated as the reverse of the break-even point. The argument is tested for the case of the USA between 1964 and 2007 using Vector Error Correction Model. The findings confirm the existence of a long-run positive relationship from market concentration in the nonfinancial corporate sector to the wage differential. JEL codes : L1, D4, J31","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46302411","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-11-11DOI: 10.13133/2037-3643_72.290_3
Douglas Alencar, Eduardo Strachman, L. Barbosa, C. Puty
The aim of this work is to identify whether there was a relationship between foreign direct investment (FDI) and long-term growth in Latin America from 1990 to 2014. Some authors have questioned whether FDI and other capital flows, besides current account results, could constrain economic growth. If FDI and other capital flows are staunched and this is accompanied by capital outflows originated from FDI in previous periods, then it would be possible to experience a balance of payments constraint to economic growth. To test this hypothesis, we slightly amend the Thirlwall and Hussain model and employ the McCombie test for the cases of Brazil, Mexico, and Argentina. We find that the negative effect of primary income remittances on FDI, and even capital inflows through FDI, may curbs growth in the long run. JEL codes : E12
{"title":"On foreign direct investments and the balance of payments constrained growth model in Latin America, 1990-2014","authors":"Douglas Alencar, Eduardo Strachman, L. Barbosa, C. Puty","doi":"10.13133/2037-3643_72.290_3","DOIUrl":"https://doi.org/10.13133/2037-3643_72.290_3","url":null,"abstract":"The aim of this work is to identify whether there was a relationship between foreign direct investment (FDI) and long-term growth in Latin America from 1990 to 2014. Some authors have questioned whether FDI and other capital flows, besides current account results, could constrain economic growth. If FDI and other capital flows are staunched and this is accompanied by capital outflows originated from FDI in previous periods, then it would be possible to experience a balance of payments constraint to economic growth. To test this hypothesis, we slightly amend the Thirlwall and Hussain model and employ the McCombie test for the cases of Brazil, Mexico, and Argentina. We find that the negative effect of primary income remittances on FDI, and even capital inflows through FDI, may curbs growth in the long run. JEL codes : E12","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45901060","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-11-11DOI: 10.13133/2037-3643_72.290_2
S. Fenoaltea
The "Gerschenkron effect" refers to the purported biases of early-weighted and late-weighted indices of production. If production is properly measured in what economists mean by "real" terms, the "Gerschenkron effect" does not exist at all.
{"title":"Of Economics and Statistics: the \"Gerschenkron Effect\"","authors":"S. Fenoaltea","doi":"10.13133/2037-3643_72.290_2","DOIUrl":"https://doi.org/10.13133/2037-3643_72.290_2","url":null,"abstract":"The \"Gerschenkron effect\" refers to the purported biases of early-weighted and late-weighted indices of production. If production is properly measured in what economists mean by \"real\" terms, the \"Gerschenkron effect\" does not exist at all.","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43214792","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-06DOI: 10.13133/2037-3643_72.289_1
I. Visco
The hopes that dawned with the end of the Cold War of improving everyone’s well-being through globalisation and technological progress have been partly disappointed. They have been replaced by uncertainty about the effects of these profound changes on the distribution of wealth, the availability of work, the possibility of growth continuing at the same pace as in the last few decades, the impact on the environment, the consequences of demographic trends, and the balance of power between countries, between companies, and between companies and consumers. The need to govern these changes is now clear and greater attention must be paid to those who have difficulty adapting, not only in advanced countries, where automation and global competition are displacing many workers employed in routine jobs, but also in emerging and developing countries, where the prospects of further poverty reduction are diminishing. These are crucial challenges for the world economy. JEL codes : F6, O33, Q54, J11
{"title":"Stability and growth in a global economy","authors":"I. Visco","doi":"10.13133/2037-3643_72.289_1","DOIUrl":"https://doi.org/10.13133/2037-3643_72.289_1","url":null,"abstract":"The hopes that dawned with the end of the Cold War of improving everyone’s well-being through globalisation and technological progress have been partly disappointed. They have been replaced by uncertainty about the effects of these profound changes on the distribution of wealth, the availability of work, the possibility of growth continuing at the same pace as in the last few decades, the impact on the environment, the consequences of demographic trends, and the balance of power between countries, between companies, and between companies and consumers. The need to govern these changes is now clear and greater attention must be paid to those who have difficulty adapting, not only in advanced countries, where automation and global competition are displacing many workers employed in routine jobs, but also in emerging and developing countries, where the prospects of further poverty reduction are diminishing. These are crucial challenges for the world economy. JEL codes : F6, O33, Q54, J11","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41869114","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-06DOI: 10.13133/2037-3643_72.289_7
J. Ortiz
Neoliberalism established itself in Mexico a system of government and economic and social policy in a long process over 35 years since 1981. It began with the financial crisis of 1982, caused by the fall in oil prices and growth in interest rates when Paul Volcker headed the US financial policy. In Mexico the crisis led to a repayment crisis and a debt renegotiation with the IMF and the banking system. The government nationalized the retail banks in September, but in December a new government began a transformation of society based on the predominance of private enterprise and the market as an allocation mechanism. JEL codes : B52
{"title":"The establishment of neoliberalism in Mexico","authors":"J. Ortiz","doi":"10.13133/2037-3643_72.289_7","DOIUrl":"https://doi.org/10.13133/2037-3643_72.289_7","url":null,"abstract":"Neoliberalism established itself in Mexico a system of government and economic and social policy in a long process over 35 years since 1981. It began with the financial crisis of 1982, caused by the fall in oil prices and growth in interest rates when Paul Volcker headed the US financial policy. In Mexico the crisis led to a repayment crisis and a debt renegotiation with the IMF and the banking system. The government nationalized the retail banks in September, but in December a new government began a transformation of society based on the predominance of private enterprise and the market as an allocation mechanism. JEL codes : B52","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47603223","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-06DOI: 10.13133/2037-3643_72.289_3
Juan Odisio, M. Rougier
We the study the main representatives of traditional liberalism in Argentina between 1955 and 1975. In those years a local reformulation of liberal ideas attempted to both rescue the 19th century liberal tradition and to incorporate some of the neoliberal ideas that had begun to gather strength at the international level. These ideas paved the way for the construction of new consensuses within liberal ranks. The most visible exponents of such thinking in this period were Federico Pinedo, Alvaro Alsogaray, Alberto Benegas Lynch, and Jose Martinez de Hoz. In this article we are interested in the action and rhetoric of these exponents of Postwar liberalism in Argentina, and we specifically assess the criticisms they deployed against the state-led industrialization model. JEL codes : B25, O54, O21
{"title":"Swimming against the (Developmentalist) mainstream: the liberal economists in Argentina between 1955 and 1976","authors":"Juan Odisio, M. Rougier","doi":"10.13133/2037-3643_72.289_3","DOIUrl":"https://doi.org/10.13133/2037-3643_72.289_3","url":null,"abstract":"We the study the main representatives of traditional liberalism in Argentina between 1955 and 1975. In those years a local reformulation of liberal ideas attempted to both rescue the 19th century liberal tradition and to incorporate some of the neoliberal ideas that had begun to gather strength at the international level. These ideas paved the way for the construction of new consensuses within liberal ranks. The most visible exponents of such thinking in this period were Federico Pinedo, Alvaro Alsogaray, Alberto Benegas Lynch, and Jose Martinez de Hoz. In this article we are interested in the action and rhetoric of these exponents of Postwar liberalism in Argentina, and we specifically assess the criticisms they deployed against the state-led industrialization model. JEL codes : B25, O54, O21","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48727024","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-04-15DOI: 10.13133/2037-3643_72.288_3
R. Cebula, Robert Boylan
We investigate the impact of federal government budget deficits and federal personal income tax rates on the ex post real interest rate yield on ten-year US Treasury notes. Using autoregressive two-stage least squares estimations for the post-Bretton Woods era, we find that the yield on these Treasury issues has been an increasing function of the federal budget deficit as a percent of GDP, both in the form of the total/unified deficit and the primary deficit, and also an increasing function of the average effective federal personal income tax rate. The estimation reveals that growth in the M2 money supply (relative to GDP) acts to reduce the real interest rate yield on ten-year Treasuries. Consequently, while a growing money supply can help to keep real interest rates on Treasury notes (and hence federal debt service costs) down, policymakers should be sensitive to the fact that both budget deficit increases and tax rate increases can elevate the real interest rate. JEL codes : E43, E62, H62
{"title":"An empirical analysis for the US of the impact of federal budget deficits and the average effective personal income tax rate on the ex post real interest rate yield on ten-year Treasuries","authors":"R. Cebula, Robert Boylan","doi":"10.13133/2037-3643_72.288_3","DOIUrl":"https://doi.org/10.13133/2037-3643_72.288_3","url":null,"abstract":"We investigate the impact of federal government budget deficits and federal personal income tax rates on the ex post real interest rate yield on ten-year US Treasury notes. Using autoregressive two-stage least squares estimations for the post-Bretton Woods era, we find that the yield on these Treasury issues has been an increasing function of the federal budget deficit as a percent of GDP, both in the form of the total/unified deficit and the primary deficit, and also an increasing function of the average effective federal personal income tax rate. The estimation reveals that growth in the M2 money supply (relative to GDP) acts to reduce the real interest rate yield on ten-year Treasuries. Consequently, while a growing money supply can help to keep real interest rates on Treasury notes (and hence federal debt service costs) down, policymakers should be sensitive to the fact that both budget deficit increases and tax rate increases can elevate the real interest rate. JEL codes : E43, E62, H62","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47666489","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-04-15DOI: 10.13133/2037-3643_72.288_2
R. Masera
The paper offers an Italian perspective on the creation and evolution of the European Economic and Monetary Union (EMU), which were and continue to be politically driven processes. European political leaders were responsible not for design defects but for a fundamental fault in execution: an original sin that continues to undermine the workings of the EMU. Contrary to commonly held beliefs, the Maastricht criteria and a rapid convergence process towards political union as the counterpart to the EMU were a viable framework. This consistent time path was not respected when the euro was created: the participation of Italy in 1999 and of Greece in 2001 did not satisfy the condition of prior fundamental convergence, notably in terms of public finance. The currency without a state, the lack of adjustment, and insufficient structural reforms imparted a deflationary bias, heightened the risks of the sovereign/bank nexus, and led to a wrong policy mix. In spite of significant steps to correct the system, current flaws continue to represent a major drawback to improving the resilience of the system . JEL codes : E42, E52, E61, F33, F34, F45, H63
{"title":"EMU: An Italian perspective","authors":"R. Masera","doi":"10.13133/2037-3643_72.288_2","DOIUrl":"https://doi.org/10.13133/2037-3643_72.288_2","url":null,"abstract":"The paper offers an Italian perspective on the creation and evolution of the European Economic and Monetary Union (EMU), which were and continue to be politically driven processes. European political leaders were responsible not for design defects but for a fundamental fault in execution: an original sin that continues to undermine the workings of the EMU. Contrary to commonly held beliefs, the Maastricht criteria and a rapid convergence process towards political union as the counterpart to the EMU were a viable framework. This consistent time path was not respected when the euro was created: the participation of Italy in 1999 and of Greece in 2001 did not satisfy the condition of prior fundamental convergence, notably in terms of public finance. The currency without a state, the lack of adjustment, and insufficient structural reforms imparted a deflationary bias, heightened the risks of the sovereign/bank nexus, and led to a wrong policy mix. In spite of significant steps to correct the system, current flaws continue to represent a major drawback to improving the resilience of the system . JEL codes : E42, E52, E61, F33, F34, F45, H63","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41790328","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-01-01DOI: 10.13133/2037-3643_72.291_4
O. Campuzano, Francisco Javier Ayvar
For approximately 40% of Mexican households, income alone is insufficient to meet basic expenses. As a result, some families fulfill their needs through self-supply, the practice of producing goods either for direct consumption or eventual exchange. This paper demonstrates the effects that the self-supply practice has on household savings. The authors find that the practice of multiple exchange, which includes a combination of exchange, production, and self-supply, is a key mechanism that enables Mexican households to better meet their needs. Data from a survey given to participants of a trade-and-exchange fair in Mexico City in 2016 was used; the participants’ self-supply levels exceeded Mexico’s self-supply average, positively influencing their monetary savings. Download appendix online
{"title":"Supplementing Household Income through Self-Supply and Exchange: The Case of a Multiple-Exchange Fair in Mexico City, 2016.","authors":"O. Campuzano, Francisco Javier Ayvar","doi":"10.13133/2037-3643_72.291_4","DOIUrl":"https://doi.org/10.13133/2037-3643_72.291_4","url":null,"abstract":"For approximately 40% of Mexican households, income alone is insufficient to meet basic expenses. As a result, some families fulfill their needs through self-supply, the practice of producing goods either for direct consumption or eventual exchange. This paper demonstrates the effects that the self-supply practice has on household savings. The authors find that the practice of multiple exchange, which includes a combination of exchange, production, and self-supply, is a key mechanism that enables Mexican households to better meet their needs. Data from a survey given to participants of a trade-and-exchange fair in Mexico City in 2016 was used; the participants’ self-supply levels exceeded Mexico’s self-supply average, positively influencing their monetary savings. Download appendix online","PeriodicalId":44488,"journal":{"name":"PSL Quarterly Review","volume":null,"pages":null},"PeriodicalIF":0.7,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66230126","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}