New Economics Papers
on Business, Economic and Financial History
Issue of 2011‒04‒23
eighteen papers chosen by

  1. The Voting Behaviour of the Irish parliamentary party on social issues in the House of Commons 1881-90 By Cousins, Mel
  2. Fading Investment Banking? Italy Before the Second World War By Carlo Brambilla
  3. Law and Peace: Contracts and the Success of the Danish Dairy Cooperatives By Ingrid Henriksen; Morten Hviid; Paul Sharp
  4. The Great Recession and the Great Depression: Reflections and Lessons By Barry Eichengreen
  5. U.S. Intervention During the Bretton Woods Era: 1962-1973 By Michael D. Bordo; Owen F. Humpage; Anna J. Schwartz
  6. The rise and fall of spatial inequalities in France: A long-run perspective By Pierre-Philippe Combes; Miren Lafourcade; Jacques-François Thisse; Jean-Claude Toutain
  7. Thorstein Veblen: A Marxist Starting Point By Kirsten Ford and William McColloch
  8. The Long-run Determinants of Fertility: One Century of Demographic Change 1900-1999 By Dierk Herzery; Holger Strulik; Sebastian Vollmer
  9. The co-evolution of social capital and financial development By Marc Sangnier
  10. The Economic Impact of Climate Change in the 20th Century By Tol, Richard S. J.
  11. Tightening Tensions: Fiscal Policy and Civil Unrest in Eleven South American Countries, 1937 - 1995 By Joachim Voth
  12. The Rise and Fall of Income Inequality in Latin America By Nora Lustig; Leonardo Gasparini
  13. « Appliquer la théorie économique de l’équilibre général » : de Walras à Leontief By Akhabbar, Amanar; Lallement, Jerôme
  14. La diversification des portefeuilles français a la veille de 1914 ou l’image écornée du rentier français du 19e siècle By Cécile Edlinger; Maxime Merli; Antoine Parent
  15. A Revision of the US Business-Cycles Chronology 1790–1928 By Charles Amélie; Darné Olivier; Claude Diebolt
  16. Competition and Stability in Banking By Xavier Vives
  17. La Migración Mexicana hacia los Estados Unidos: Una breve radiografía By Adolfo Albo; Juan Luis Ordaz Diaz
  18. Renouveler la science économique néo-classique ? Prendre l’historicité au sérieux By Jean Luc Demeulemeester; Claude Diebolt

  1. By: Cousins, Mel
    Abstract: Most studies of the Irish Parliamentary party and its leaders have, understandably, focused on issues directly concerning Ireland. There have been relatively few studies of the role of the Parliamentary party in broader British politics, particularly in relation to social issues. In order to assess this issue over a period of time, this study examines the division lists of the House of Commons in relation to votes on selected ‘social’ issues in the 1880s. An analysis of the Irish Parliamentary party’s voting record in the 1880s throws some light on the party’s broader views on social issues. The study examines the voting behaviour of the Irish Parliamentary party in the context of that of the other major political groupings in the 1880s Parliament. It looks in particular at i) The extent to which the Irish party members actually voted in comparison with MPs overall; ii) the internal cohesion of the Irish Parliamentary party votes, i.e. the extent to which those members voting expressed the same views; iii) their ‘likeness’ with the voting patterns of other major political groupings, i.e. the extent to which the Irish party votes were in line with other groups; and iv) the extent to which (if any) this changed over time.
    Keywords: Roll-call voting analysis; Irish parliamentary party; social issues; nineteenth century Irish history
    JEL: I00 D72
    Date: 2011–04
  2. By: Carlo Brambilla (Department of Economics, University of Insubria, Italy)
    Keywords: Investment banking; Fnancial innovation; institutions and regulation; Italy
    Date: 2011–04
  3. By: Ingrid Henriksen (Department of Economics, University of Copenhagen); Morten Hviid (University of East Anglia); Paul Sharp (Humboldt University / University of Copenhagen)
    Abstract: We consider the successful early emergence of cooperative creameries in Denmark in the late nineteenth century within the framework of the ‘new institutional economics’ presented by Williamson (2000). Previous work has focused on the social cohesion of the Danes, but we demonstrate that this was not sufficient for the success. The Danish legal system, which we compare to that of other countries, was also of crucial importance, along with the way in which rules were monitored and enforced. Of particular importance was the Danish cooperatives’ use of contracts, which we explore with evidence from a variety of primary and secondary sources.
    Keywords: cooperatives; creameries; contracts; new institutional economics
    JEL: K12 L31 N43 N53 Q13
    Date: 2011–04
  4. By: Barry Eichengreen
    Abstract: The Great Recession that started in 2008 has drawn constant comparisons with the Great Depression that unfolded in 1929. This paper documents how the response of policy makers in the current episode has been markedly different from the one observed in the 1920s and 1930s and to what extent this different behavior has followed the lessons from the historical analysis of the Great Depression. The historical account is also used to discuss probable changes to the world’s economic landscape regarding both trade and financial globalization.
    Date: 2010–09
  5. By: Michael D. Bordo; Owen F. Humpage; Anna J. Schwartz
    Abstract: By the early 1960s, outstanding U.S. dollar liabilities began to exceed the U.S. gold stock, suggesting that the United States could not completely maintain its pledge to convert dollars into gold at the official price. This raised uncertainty about the Bretton Woods parity grid, and speculation seemed to grow. In response, the Federal Reserve instituted a series of swap lines to provide central banks with cover for unwanted, but temporary accumulations of dollars and to provide foreign central banks with dollar funds to finance their own interventions. The Treasury also began intervening in the market. The operations often forestalled gold losses, but in so doing, delayed the need to solve Bretton Woods’ fundamental underlying problems. In addition, the institutional arrangements forged between the Federal Reserve and the U.S. Treasury raised important questions bearing on Federal Reserve independence.
    JEL: E0 N1
    Date: 2011–04
  6. By: Pierre-Philippe Combes (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris); Miren Lafourcade (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris, Université de Valenciennes et du Hainaut Cambrésis - Université de valenciennes et du Hainaut Cambrésis); Jacques-François Thisse (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, CORE - Center of Operation Research and Econometrics [Louvain] - Université Catholique de Louvain, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA); Jean-Claude Toutain (ERMES - Equipe de recherche sur les marches, l'emploi et la simulation - CNRS : FRE2887 - Université Panthéon-Assas - Paris II, Université Panthéon Sorbonne - Paris 1 - Université Panthéon-Sorbonne - Paris I)
    Abstract: This paper uses a unique database that provides value-added, employment, and population levels for the entire set of French departments for the years 1860, 1930, and 2000. These data cover three sectors: agriculture, manufacturing, and services. This allows us to study the evolution of spatial inequalities within France and to test the empirical relevance of economic geography predictions over the long run. The evidence confirms the existence of a bell-shaped evolution of the spatial concentration of manufacturing and services. In contrast, labor productivity has been converging across departments. Last, our study also confirms the presence of strong agglomeration economies during the full time-period. Market potential during the first sub-period (1860-1930), and higher education during the second (1930-2000), together with sectoral diversity, account for the spatial distribution of these gains.
    Keywords: economic geography ; agglomeration economies ; human capital ; economic history
    Date: 2011–04–15
  7. By: Kirsten Ford and William McColloch
    Abstract: As existing literature attests, in spite of methodological differences Marx and Veblen draw strikingly similar conclusions regarding production, conflict, and alienation in modern existence. We here attempt to establish that similarity in conclusion stems from similarity in approach. After reviewing the existing literature on a Marx-Veblen methodological reconciliation, we recapitulate Marx’s method, making the mediated starting point the locus of discussion.From this vantage point, we then examine Veblen’s own approach to analysis in “The Theory of Business Enterprise” and the conclusions that emerge as they resemble those of Marx. In taking a kindred approach Veblen is able to arrive at an understanding of capitalism in accordance with, and complementary to, Marx’s rendering of the inverted nature of economic life in modernity.
    Keywords: Marxism, Institutionalism, History of Economic Thought: Individuals, Economic Methodology: General JEL Codes: B140, B150, B300, B400
    Date: 2011
  8. By: Dierk Herzery; Holger Strulik; Sebastian Vollmer (Harvard School of Public Health)
    Abstract: We examine the long-run relationship between fertility, mortality, and income using panel cointegration techniques and the available data for the last century. Our main result is that mortality changes and growth of income per capita account for a major part of the fertility change characterizing the demographic transition. The fertility reduction triggered by falling mortality, however, is not enough to overcompensate the positive eect of falling mortality on population growth. This means that growth of income per capita is essential to explain the observed secular decline of population growth. These results are robust against alternative estimation methods, potential outliers, sample selection, dierent measures of mortality, and the sample period. In addition, our causality tests suggest that fertility is both endogenous and exogenous. In particular, we nd that an increase of fertility reduces growth of income per capita. Keywords: fertility; mortality; economic development; panel cointegration.
    Keywords: fertility, demographic change, mortality, income
    Date: 2010–10
  9. By: Marc Sangnier (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA)
    Abstract: This paper documents the co-evolution of social capital, measured as generalized trust, and financial development over the twentieth century. I use cross generations inherited trust of Americans with foreign ancestors to track trust in their home country in 1913 and 1990. The paper documents a positive cross-section relationship between trust and financial development in 1913. Then, I show that increasing trust is also associated with increasing financial development at the country level over the twentieth century. In other words, countries that experienced larger improvements in trust also experienced a stronger financial development. These results are robust to the introduction of real GDP per capita and trade openness as alternative determinants of financial development.
    Keywords: Financial development ; social capital ; trust
    Date: 2011–04
  10. By: Tol, Richard S. J.
    Abstract: The national version of FUND3.6 is used to infrapolate the impacts of climate change to the 20th century. Carbon dioxide fertilization of crops and reduced energy demand for heating are the main positive impacts. Climate change had a negative effect on water resources and, in most years, human health. Most countries benefitted from climate change until 1980, but after that the trend is negative for poor countries and positive for rich countries. The global average impact was positive.
    Keywords: Climate change/impacts/Impacts of climate change/Human health
    Date: 2011–02
  11. By: Joachim Voth
    Abstract: Efforts at fiscal consolidation are often limited because of concerns over potential social unrest. From German austerity measures during the 1930s to the violent demonstrations in Greece in 2010, hard times have tended to go hand in hand with antigovernment violence. In this paper, I assemble cross-country evidence from eleven South American countries for the period 1937 to 1995 about the extent to which societies become unstable after budget cuts. The results show a clear positive correlation between austerity and instability. I examine the extent to which this relationship simply captures the fact that fiscal retrenchment and economic slumps are correlated, and conclude that this is not what is driving the effect. Finally, I test for interactions with various economic and political variables. While autocracies and democracies show a broadly similar response to budget cuts, countries with a history of stable institutions are less likely to see unrest as a result of austerity measures.
    Date: 2011–02
  12. By: Nora Lustig (Department of Economics, Tulane University); Leonardo Gasparini (Center for Distributional, Labor and Social Studies (CEDLAS) at Universidad Nacional de La Plata)
    JEL: O10
    Date: 2011–02
  13. By: Akhabbar, Amanar; Lallement, Jerôme
    Abstract: The way the expresssion "applied economics" was employed changed deeply from one author to another. In this article we examine the meaning of this concept in Leon Walras' and Wassily Leontief's works regarding mathematical models of general interdependence and general equilibrium. It appears that empirical analysis played very different roles in their works but that they both considered economics should develop policy-oriented theory.
    Keywords: Leontief; Walras; Keynes; épistémologye; application; general equilibrium theory; input output analysis; economic policy
    JEL: P0 B21 B23 B13 B41
    Date: 2011–01–01
  14. By: Cécile Edlinger (BETA, Université Nancy 2, France.); Maxime Merli (LaRGE, EM Strasbourg, Université de Strasbourg, France.); Antoine Parent (BETA, Université Nancy 2, France.)
    Date: 2011
  15. By: Charles Amélie (Audencia Nantes, School of Management, 8 route de la Jonelière, 44312 Nantes Cedex 3, France.); Darné Olivier (EMNA, University of Nantes, IEMN–IAE, Chemin de la Censive du Tertre, BP 52231, 44322 Nantes, France.); Claude Diebolt (BETA/CNRS, Université de Strasbourg, France.)
    Date: 2011
  16. By: Xavier Vives
    Abstract: I review the state of the art of the academic theoretical and empirical literature on the potential trade-off between competition and stability in banking. There are two basic channels through which competition may increase instability: by exacerbating the coordination problem of depositors/investors on the liability side and fostering runs/panics, and by increasing incentives to take risk and raise failure probabilities. The competition-stability trade-off is characterized and the implications of the analysis for regulation and competition policy are derived. It is found that optimal regulation may depend on the intensity of competition.
    Date: 2010–05
  17. By: Adolfo Albo; Juan Luis Ordaz Diaz
    Abstract: En este documento se analizan los patrones recientes de la migración entre México y los Estados Unidos. Se revisan las diferentes fases y motivaciones de estos movimientos migratorios, sus características que dan cuentan de su capacidad de ascenso social en la Unión Americana y la cada vez mayor importancia de las remesas en los ingresos de las familias mexicanas. La intención es presentar una panorámica de este importante movimiento social que constituya una referencia para plantear ciertas hipótesis en las que se pude profundizar en estudios posteriores.
    Date: 2011–02
  18. By: Jean Luc Demeulemeester (Université Libre de Bruxelles, Belgique.); Claude Diebolt (BETA/CNRS, Université de Strasbourg, France.)
    Date: 2011

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