New Economics Papers
on Business, Economic and Financial History
Issue of 2008‒04‒04
nine papers chosen by

  1. Rise of the Japanese fiscal state By Masaki Nakabayashi
  2. The institutional aspects of the Dojima rice exchange market in Tokugawa era: The role of governance mechanism By Yasuo Takatsuki
  3. Logistics in early-modern Europe: A discussion of specialization, flexibility and efficiency in the activities of the Dutch shipping community in the eighteenth century. By Werner Scheltjens
  4. Resolving the Anglo-German Industrial Productivity Puzzle, 1895-1935 : A Response to Professor Ritschl By Broadberry, Stephen; Burhop, Carsten
  5. Qualifying Religion: The Role of Plural Identities for Educational Production By Boppart, Timo; Falkinger, Josef; Grossmann, Volker; Woitek, Ulrich; Wüthrich, Gabriela
  6. MPs for Sale? Estimating Returns to Office in Post-War British Politics By Eggers, Andy; Hainmueller, Jens
  7. The formation of financial industries in USA, France and Russia By Irina Peaucelle
  8. Relationship Marketing: From Its Origins to the Current Streams of Research By Carlos Brito

  1. By: Masaki Nakabayashi (Graduate School of Economics, Osaka University)
    Abstract: A sustainable fiscal state needs to have two critical factors: A stable tax base and access to an efficient bond market. The Tokugawa Shogunate had a stable land tax revenue, which was inherited to modern Japan after the Meiji restoration. Taxation, however, was restricted by the constitution after the Meiji restoration. The parliament opposed to expansionary policy in the early 1890s, and then it turned to support that at the exchange of governmental commitment to investment in social infrastructure. The government committed to investment to increase productivity, and was allowed to raise tax rate. About the bond market, at the other hand, the government had issued bonds only in the domestic market until the mid 1890s. In the late 1890s, after Japan joined the international gold standard, the government began to issue considerable amount of bonds, and the balance surged during the Russo-Japanese war in 1904-1905. Now the London market efficiently financed Japanese government. In the early 20th century, the government was one and only one player that had established its own reputation in the international financial market. Hence balance of Japanese government bonds was the only route to import capital. This route also provided Japanese economy with macroeconomic stability, offsetting short-term current account deficit by import of capital. Japan had finally been equipped with necessary instruments as a stable and sustainable fiscal state.
    Keywords: Fiscal state, government bonds, macroeconomic stability
    JEL: N45 N25
    Date: 2008–03
  2. By: Yasuo Takatsuki (Graduate School of Economics, Tokyo University)
    Abstract: This paper examines the institutional aspects of the Dojima rice exchange market. Especially, the role of governance mechanism was focused on. It is well known that the Dojima rice exchange market was established in 1730 in Osaka, and closed in 1869 due to the collapse of Tokugawa Shogunate. In addition, it had already been shown that there existed the institution of trades in Dojima. However, the most signifficant question: How did it evolve, and how did it assure the "safe" and "smooth" trades, remains to be unanswered. To answer the question, this paper focuses on three points; that is i) property right, ii) freedom of contracts, iii) liquidity of the market. Through the empirical analyses, it was shown that the futures trades in Dojima rice exchange maket had been evolved, exactly for the purpose of satisfying these three points.
    Keywords: Japanese Economic History, The Dojima Rice Exchange Market, The futures Trades
    JEL: G28 G13 N25
    Date: 2007–12
  3. By: Werner Scheltjens
    Abstract: In this paper, I try to substantiate the necessity of studying early-modern maritime shipping as an integral economic activity, by which I mean that early-modern maritime shipping is defined not only by the nodes it connects nor by its own social structures exclusively, but by both elements at the same time. Moreover, maritime shipping must be viewed in an unabridged fashion: it is an economic activity that covers large distances and long periods of time. This implies that we need to find a way to overcome the limitations of the currently predominant view of early-modern maritime shipping as a set of condensed numerical data. I will prove empirically that transportation networks were indeed socially constructed spaces with the necessary features to allow us to speak of maritime shipping as an integral economic activity. I will do this by studying the operational and organizational structures of Dutch maritime shipping in the first half of the eighteenth century. In this paper, I present a preliminary taxonomy of shipping patterns on the basis of a continuous trade-off between cargo, port of destination and origin of the shipmaster. This taxonomy distinguishes between repetitiveness and flexibility in the shipmaster's choice of cargoes and routes.
    Date: 2008
  4. By: Broadberry, Stephen (Department of Economics, University of Warwick,); Burhop, Carsten (Max Planck Institute for Research on Collective Goods)
    Abstract: This paper offers a critical appraisal of the claim of Ritschl (2008) to have found a “possible resolution” to what he calls the “Anglo-German industrial productivity puzzle”. To understand the origins of this term, it is necessary to describe some recent developments in comparisons of industrial labour productivity between Britain and Germany. The Anglo-German industrial productivity puzzle really arose as the result of a new industrial production index produced by Ritschl (2004), which differed very substantially from the widely used index of Hoffmann (1965). Broadberry and Burhop (2007) pointed out that if the Ritschl (2004) index is combined with an index of German employment from Hoffmann (1965) and time series of UK output and employment from Feinstein (1972), it implies an implausibly high German labour productivity lead over Britain in 1907, when projected back from a widely accepted Germany/UK labour productivity benchmark for 1935/36.
    Date: 2008
  5. By: Boppart, Timo (University of Zurich); Falkinger, Josef (University of Zurich); Grossmann, Volker (University of Fribourg); Woitek, Ulrich (University of Zurich); Wüthrich, Gabriela (University of Zurich)
    Abstract: This paper examines the role of religious denomination for human capital formation. We employ a unique data set which covers, inter alia, information on numerous measures of school inputs in 169 Swiss districts for the years 1871/72, 1881/82 and 1894/95, marks from pedagogical examinations of conscripts (1875-1903), and results from political referenda to capture conservative or progressive values in addition to the cultural characteristics language and religion. Catholic districts show on average significantly lower educational performance than Protestant districts. However, accounting for other sociocultural characteristics qualifies the role of religion for educational production. The evidence suggests that Catholicism is harmful only in a conservative milieu. We also exploit information on absenteeism of pupils from school to separate provision of schooling from use of schooling.
    Keywords: culture, educational production, plural identity, religious denomination, school inputs
    JEL: I20 H52 O10 N33
    Date: 2008–03
  6. By: Eggers, Andy; Hainmueller, Jens
    Abstract: While the role of money in policymaking is a central question in political economy research, surprisingly little attention has been given to the rents politicians actually derive from politics. We use both matching and a regression discontinuity design to analyze an original dataset on the estates of recently deceased British politicians. We find that serving in Parliament roughly doubled the wealth at death of Conservative MPs but had no discernible effect on the wealth of Labour MPs. We argue that Conservative MPs profited from office in a lax regulatory environment by using their political positions to obtain outside work as directors, consultants, and lobbyists, both while in office and after retirement. Our results are consistent with anecdotal evidence on MPs' outside financial dealings but suggest that the magnitude of Conservatives' financial gains from office was larger than has been appreciated.
    Keywords: British Politics; returns to office; rents from office; political economy; money and politics; regression discontinuity
    JEL: D73 D72 P16
    Date: 2008–03–22
  7. By: Irina Peaucelle
    Abstract: Despite the multiplicity of research on the surge of the financial industry the world over, little is done to understand the national context shaping the objectives and designs of this economic sector. The overall image that emerges from the literature is that globalisation and liberalisation of economies make the expansion of this sector indispensable for further development. This paper stresses the heterogeneity of the socio-psychological origins of the need for saving and contribution management, as well as the heterogeneity of the sources of savings and loan funding. In particular this paper discusses the following national characteristics: 1) the social belief in trust that smoothes the progress of insurance and pension fund business in the USA, 2) the traditional preference for saving and lending in France that explains the advance of banks and credit institutions for analysis of financial risks, and 3) the natural resources ground rent of Russian State provides the formation of sovereign-wealth funds, which require an up to date knowledge based investment management. This paper serves as a road sign indicating that the path of uniform financial industry formation is a waste of time and may bring about social and economic troubles.
    Date: 2008
  8. By: Carlos Brito (Faculdade de Economia da Universidade do Porto, Portugal)
    Abstract: As companies increasingly recognize the importance of interaction with customers, relationship marketing is assuming a central place in both marketing theory and practice. The purpose of this working paper is to offer a general overview of the roots of relationship marketing as well as of its conceptual background. In this regard, two important streams of research are examined and discussed – the Nordic School and the IMP Group – along with the contribution of the Anglo-Australian School and the relationship approach to branding.
    Keywords: relationship marketing, transaction marketing, services, business-to-business marketing, distribution channels, branding
    JEL: M31
    Date: 2008–03
  9. By: Y. FASSIN
    Abstract: The popularity of the stakeholder model has been achieved thanks to its powerful visual scheme and its very simplicity. Stakeholder management has become an important tool to transfer ethics to management practice and strategy. Nevertheless, legitimate criticism continues to insist on clarification and emphasises on the perfectible nature of the model. <br>Here, rather than building on the discussion from a philosophical or theoretical point of view, a different and innovative approach has been chosen: the analysis will return to the origin of stakeholder theory and will keep the graphical framework firmly in perspective. <br>It will confront the stakeholder model’s graphical representation to the discussion on stakeholder definition, stakeholder identification and categorisation, to re-centre the debate to the strategic origin of the stakeholder model. <br>The ambiguity and the vagueness of the stakeholder concept are discussed from managerial and legal approaches. The impacts of two major shortcomings of the popular stakeholder framework are examined: the boundaries and the level of the firm’s environment, and the ambivalent position of pressure groups and regulators. Working pragmatically, with a focus on the managerial and organisational perspective, an attempt is made to clarify the categorisations and classifications by introducing new terminology with a distinction between stakeholders, stakewatchers and stakekeepers. The analysis will finally lead to a proposed upgraded and refined version of the stakeholder model, with incremental ameliorations close to Freeman’s original model and a return of focus to its essence, the managerial implications in a strategic approach.
    Keywords: stakeholder, stakewatcher, stakekeeper, stakeholder model, stakeholder theory, strategy, graphical framework, Freeman’s model, pressure groups, business ethics
    Date: 2008–02

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