New Economics Papers
on Business, Economic and Financial History
Issue of 2012‒05‒15
twenty-six papers chosen by

  1. The roots of success: industrial growth in Italy reconsidered, 1911-1951 By Emanuele Felice; Albert Carreras
  2. For Every Law, a Loophole: Flexibility in the Menu of Spanish Business Forms, 1886-1936 By Timothy W. Guinnane; Susana Martinez Rodriguez
  3. Lending to the Borrower from Hell: Debt and Default in the Age of Philip II By Mauricio Drelichman; Hans-Joachim Voth
  4. Export Pioneers in Latin America By Charles Sabel; Eduardo Fernandez-Arias; Ricardo Hausmann; Andres Rodriguez-Clare; Ernesto H. Stein
  5. Las raíces agrarias del crecimiento económico andaluz y el grupo Larios (1800-1936) By Jose Ignacio Jiménez Blanco
  6. Comparative Advantages in Italy: A Long-Run Perspective By Giovanni Federico; Nikolaus Wolf
  7. From Wife to Widow Entrepreneur in French Family Businesses An Invisible-Visible Role in Passing on the Business to the Next Generation By Nicolas Antheaume; Paulette Robic
  8. A Comparative Perspective on Italy's Human Capital Accumulation By Giuseppe Bertola; Paolo Sestito
  9. Outward and Inward Migrations in Italy: A Historical Perspective By Matteo Gomellini; Cormac Ó Gráda
  10. The Political Economy of Land Privatization in Argentina and Australia, 1810-1850 By Alan Dye; Sumner La Croix
  11. State Capacity and Military Conflict By Nicola Gennaioli; Hans-Joachim Voth
  12. The Implicit Theory of Historical Change in the work of Alan S. Milward By Frances M. B. Lynch; Fernando Guirao
  13. French Family Business and Longevity. Have they been conducting sustainable development policies before it became a fashion? By Nicolas Antheaume; Dominique Barbelivien; Paulette Robic
  14. A new monthly chronology of the US industrial cycles in the prewar economy By Amélie Charles; Olivier Darné; Claude Diebolt; Laurent Ferrara
  15. Anglo-Saxon Capitalism in Crisis? Models of Liberal Capitalism and the Preconditions for Financial Stability By Konzelmann, S.; Fovargue-Davies, M.
  16. Innovation and Foreign Technology in Italy,1861-2011 By Federico Barbiellini Amidei; John Cantwell; Anna Spadavecchia
  17. Institutions and long-run growth performance: An analytic literature review of the institutional determinants of economic growth By Bluhm, Richard; Szirmai, Adam
  18. Regime Switches, Agents’ Beliefs, and Post-World War II U.S. Macroeconomic Dynamics By Francesco Bianchi
  19. Business Cycle Synchronization During US Recessions Since the Beginning of the 1870's By Nikolaos Antonakakis
  20. Vintage Capital Growth Theory: Three Breakthroughs By Raouf Boucekkine; David de la Croix and Omar Licandro
  21. The United States after unipolarity: the American economy and America’s global power. By Morgan, Iwan
  22. Schooling Supply and the Structure of Production: Evidence from US States 1950-1990 By Antonio Ciccone; Giovanni Peri
  23. Financing Local Development: Quasi-Experimental Evidence from Municipalities in Brazil, 1980-1991 By Stephan Litschig
  24. Die Entwicklung der funktionalen Einkommensverteilung und ihrer Einflussfaktoren in ausgewählten Industrieländern 1960-2010 By Hagen Kraemer
  25. Science and Technology Studies: Exploring the Knowledge Base By Martin, Ben; Nightingale, P.; Yegros-Yegros, A.
  26. The State of STEM Labour Markets in Canada - Literature Review By Natalie Mishagina; Claude Montmarquette

  1. By: Emanuele Felice (Unitat d'Història Econòmica, Departament d'Economia i d'Història Econòmica, Universitat Autònoma de Barcelona); Albert Carreras (Departament d'Economia i Empresa, Universitat Pompeu Fabra)
    Abstract: This article reconsiders the growth of Italian industry from the First World War to the eve of the economic miracle, with the aid of sector-specific new value-added series, at three different price-bases. The new estimates reduce growth during the First World War, making the Italian case comparable to the other belligerent countries, while improving the performance of the 1920s. The 1929 crisis looks more profound than before, while the recovery after 1933 is now stronger. During the 1920s and the 1930s, a significant shift from traditional to more advanced activities took place: when confronted with the rest of Europe, the interwar period was a relative success, which laid the ground for the following economic boom.
    Keywords: Italy, industry, national accounts, world war I, 1929 crisis, world war II
    JEL: N14 N64 O14 O47
    Date: 2012–05
  2. By: Timothy W. Guinnane (Economics Department, Yale University); Susana Martinez Rodriguez (Department of Applied Economics, University of Murcia)
    Abstract: The Spanish business code allowed firms great flexibility in their organizational form in the late nineteenth and early twentieth century. Until 1920, firms had the same basic choices as in France and some other European countries, namely, the corporation, the ordinary partnership, or the limited partnership. But Spanish law was unusually flexible, allowing firms to adapt the corporation especially to the needs of its owners. Starting in 1920 Spanish firms could also organize as a Sociedad de Responsabilidad Limitada (SRL), a form similar to the German GmbH or the British Private Limited Company (PLC). But some firms had already adopted the form prior to 1920. The Spanish coded lacked the principle of “numerus clauses” that is central to many areas of law. Most business codes allow firms to choose only from a proscribed menu of options. The Spanish code offered these options but also stated that firms could organize in other ways if they wished. This paper uses three empirical sources to study the way firms actually used those possibilities. We find that this flexibility did not make entrepreneurs indifferent across the different organizational forms.
    Keywords: Spanish economic history, legal form of enterprise, law and finance
    JEL: K20 N43 N44
    Date: 2012–05
  3. By: Mauricio Drelichman; Hans-Joachim Voth
    Abstract: Lending to early modern monarchs could be very profitable, yet highly risky. International financiers unlocked the excess returns in sovereign debt markets by parceling out the risk and transferring it to downstream investors in exchange for financial intermediation fees. We link two sovereign loans to Philip II of Spain to a downstream Genoese partnership. After examining the performance of the loans through the 1596 bankruptcy and its ensuing settlement, we conclude that the risk diversification scheme used by international bankers worked. Shares in sovereign loans were held within highly diversified portfolios, enhancing their returns in normal times and not posing excessive risks when caught in a default.
    Keywords: sovereign debt, syndication, diversification, risk transfer, Spain
    JEL: F34 G15 N23
    Date: 2011–06
  4. By: Charles Sabel; Eduardo Fernandez-Arias; Ricardo Hausmann; Andres Rodriguez-Clare; Ernesto H. Stein
    Abstract: Export Pioneers in Latin America analyzes a series of case studies of successful new export activities throughout the region to learn how pioneers jump-start a virtuous process leading to economic transformation. The cases of blueberries in Argentina, avocados in Mexico, and aircraft in Brazil illustrate how an initially successful export activity did not stop with the discovery of a single viable product, but rather continued to evolve. The book explores the conjecture that costly burdens to entrepreneurial self-discovery (due to the deterrent effects of imitation by competitors) have held back potential exporters in post-reform Latin America. It also considers the conjecture that new export activities are a complex enterprise that can only come to fruition when innovative contributions of many actors are somehow provided jointly.
    JEL: F14 F19 O14 Q17
    Date: 2012–04
  5. By: Jose Ignacio Jiménez Blanco (Universidad Complutense de Madrid)
    Abstract: This article tries to shed light on a macroeconomic issue from a microeconomic or business perspective. The problem is the Andalusian backwardness in comparison to more advantaged regions of Spain and the subsequent negative effects it had on the population’s standard of living. The backwardness was due to the overemphasis on activities related to the production and transformation of agricultural products in the region during the 19th century and the first third of the 20th century, a period when the opposite just should have occurred. The business perspective is based on a case study of the Larios Group, which was an engine of economic changes in the region along this period. An important feature of this evolution was the increase of the agrarian share of their business, especially in their industrial activities. The epilogue suggests a hypothesis trying to explain why this agrarian orientation, given the socio-political context of the region, allowed for economic growth but blocked structural change.(Full text in Spanish)
    Keywords: Business History, Agricultural and Related Industries, Andalucia.
    JEL: N53 N83 N93 O14
    Date: 2012–05
  6. By: Giovanni Federico (European University Institute, Florence and Università di Pisa); Nikolaus Wolf (Humboldt University Berlin and CEPR)
    Abstract: The history of Italy since her unification in 1861 reflects the two-way relationship between foreign trade and economic development. Its growth was accompanied by a dramatic increase in the country's integration with European and global commodity markets: foreign trade in the long run grew on average faster than the overall economy. Behind the dynamics of aggregate trade, Italy's comparative advantage changed fundamentally over the last 150 years. The composition of trade, in terms of both commodities imported and exported and in terms of trading partners, developed from a high concentration of a few trading partners and a handful of rather simple commodities into a wide diversification of trading partners and more sophisticated commodities. In this chapter we use a new long-term database on Italian foreign trade at a high level of disaggregation to document and analyze these changes. We will conclude with an assessment of Italy's prospects from a historical perspective.
    Keywords: international trade, 19th-20th century, Italy
    JEL: F14 N73 N74
    Date: 2011–10
  7. By: Nicolas Antheaume (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Paulette Robic (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272)
    Abstract: In this article we highlight the role played by widows in French Family businesses. We take a historical point of view in order to highlight the significance of our topic. We show the role of French family law in enabling widows to become entrepreneurs. Then we relate the life of the wife of a company owner, in a French family business created at the beginning of the 20th century. We show why and how a spouse becomes an entrepreneur when her husband dies. We demonstrate what key roles she plays in maintaining the business within the realm of the family.
    Keywords: invisibility ; visibility ; widow entrepreneur ; wife ; family business
    Date: 2012–05–04
  8. By: Giuseppe Bertola (Edhec Business School and CEPR); Paolo Sestito (Bank of Italy)
    Abstract: This paper reviews the evolution of educational institutions and outcomes over the 150 years since Italy's unification, and discusses their interaction with national and regional growth patterns. While initial educational conditions contributed to differentiate across regions the early industrial take off in the late 19th century, and formal education does not appear to have played a major role in the postwar economic boom, the slowdown of Italy's economy since the 1990s may be partly due to interactions between its traditionally low human capital intensity and new comparative advantage patterns, and to the deterioration since the 1970s of the educational system's organization.
    Keywords: Education systems, tracking, economic growth, regional convergence
    JEL: N30
    Date: 2011–10
  9. By: Matteo Gomellini (Bank of Italy); Cormac Ó Gráda (University College of Dublin)
    Abstract: This work focuses on some economic aspects of the two main waves of Italian emigration (1876-1913 and post-1945) and of the immigration of recent years. First, we examine the characteristics of migrants. Second, for the period 1876-1913 we investigate the determinants of emigration using a new dataset that allows us to control for regional fixed effects. In this context, the role of the networks formed by once migrated in shaping early twentieth-century Italian emigration results enhanced (30 per cent higher than previously found). Third, we analyze the consequences of emigration for those left behind. A particular concern is whether emigration as a whole raised the living standards of those who stayed and whether it promoted interregional convergence within Italy. Our simulation exercises suggest that in the long run emigration accounted for a share of 4-5 per cent of the total per capita GDP growth; the contribution at the South was twofold with respect to the North. In the recent past Italy has become a country of net immigration. We explore nowadays’ immigration in the light of our findings on earlier Italian emigration, focusing on the links with the economic activity, the labor market, the balance of payments, crime and public opinion, on the other.
    Keywords: migration determinants, migration effects, self-selection, public perception
    JEL: N0 F22
    Date: 2011–10
  10. By: Alan Dye (Barnard College, Columbia University); Sumner La Croix (Department of Economics, University of Hawaii at Manoa)
    Abstract: This paper compares public land privatization in New South Wales and the Province of Buenos Aires,in the early nineteenth century. Both claimed frontier lands as public lands for raising revenue. New South Wales failed to enforce its claim. Property rights originated as de facto squatters’ claims, which government subsequently accommodated and enforced as de jure property rights. In Buenos Aires, by contrast, original transfers of public lands were specified de jure by government. The paper develops a model that explains these differences as a consequence of violence and the relative cost of enforcement of government claims to public land.
    Date: 2012–05–03
  11. By: Nicola Gennaioli; Hans-Joachim Voth
    Abstract: In 1500, Europe was composed of hundreds of statelets and principalities, with weak central authority, no monopoly over the legitimate use of violence, and multiple, overlapping levels of jurisdiction. By 1800, Europe had consolidated into a handful of powerful, centralized nation states. We build a model that simultaneously explains both the emergence of capable states and growing divergence between European powers. In our model, the impact of war on the European state system depends on: i) the importance of money for determining the war outcome (which stands for the cost of war), and ii) a country's initial level of domestic political fragmentation. We emphasize the role of the "Military Revolution", which raised the cost of war. Initially, this caused more internally cohesive states to invest more in state capacity, while other (more divided) states rationally dropped out of the competition. This mechanism leads to both increasing divergence between European states, and greater average investments in state building on the continent overall.
    Keywords: state capacity, war, military revolution, taxation, political economy
    JEL: H10 H20 H56 H60 N43 O10
    Date: 2011–11
  12. By: Frances M. B. Lynch; Fernando Guirao
    Abstract: Alan S. Milward was an economic historian who developed an implicit theory of historical change. His interpretation which was neither liberal nor Marxist posited that social, political, and economic change, for it to be sustainable, had to be a gradual process rather than one resulting from a sudden, cataclysmic revolutionary event occurring in one sector of the economy or society. Benign change depended much less on natural resource endowment or technological developments than on the ability of state institutions to respond to changing political demands from within each society. State bureaucracies were fundamental to formulating those political demands and advising politicians of ways to meet them. Since each society was different there was no single model of development to be adopted or which could be imposed successfully by one nation-state on others, either through force or through foreign aid programs. Nor could development be promoted simply by copying the model of a more successful economy. Each nation-state had to find its own response to the political demands arising from within its society. Integration occurred when a number of nation states shared similar political objectives which they could not meet individually but could meet collectively. It was not simply the result of their increasing interdependence. It was how and whether nation-states responded to these domestic demands which determined the nature of historical change.
    Keywords: historical change, development, World Wars, Third Reich, Blitzkrieg, New Order, Vichy, Fascism, Grossraumwirtschaft, German question, reconstruction, golden age, integration, supranationality, Bretton Woods, Marshall Plan
    JEL: B23 B31 F02 F13 F30 F42 F59 N01 N14 N44 N54 O10 O24 O38 O43 P16 P45 Q18
    Date: 2011–10
  13. By: Nicolas Antheaume (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Dominique Barbelivien (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Paulette Robic (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272)
    Abstract: Our research started with the following question: have longstanding family businesses been conducting sustainable development policies long before the word became a fashion. After presenting our methodology, we investigate the sustainable development concept and review the family business (FB) literature on longevity in light of the key questions related to sustainable development (SD). We then set out investigate the case of six family businesses which have been in operation for two generations or more. We interviewed 17 different family business owners and members, of six French family businesses, totaling 27 hours of interviews on the longevity of their company. Based on this, and occasionally on written documents, we set out to identify what factors family members associate with the longevity of their company and how these factors stand as regards to the FB and the SD literature.
    Keywords: family businesses ; longevity ; long term ; sustainable development ; history
    Date: 2012–05–04
  14. By: Amélie Charles (Audencia - Audencia); Olivier Darné (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Claude Diebolt (BETA - Bureau d'économie théorique et appliquée - CNRS : UMR7522 - Université de Strasbourg - Université Nancy II); Laurent Ferrara (Banque de France - Banque de France)
    Abstract: This article extends earlier efforts at redating the US industrial cycles for the prewar period (1890-1938) using the methodologies proposed by Bry and Boschan (1971) and Hamilton (1989) and based on the monthly industrial production index constructed by Miron and Romer (1990). The alternative chronology detects 90% of the peaks and troughs identified by the NBER and Romer (1994), but the new dates are consistently dated earlier for more than 50% of them, especially as regards the NBER troughs. The new dates affect the comparison of the average duration of recessions and expansions in both pre- WWI and interwar eras. Whereas the NBER reference dates show an increase in average duration of the expansions between the pre-WWI and interwar periods, the new dates show evidence of shortened length of expansions. However, the new dates confirm the traditional finding that the length of contractions increases between the both eras.
    Keywords: Industrial business cycle ; Dating chronology.
    Date: 2012–05–02
  15. By: Konzelmann, S.; Fovargue-Davies, M.
    Abstract: The return to economic liberalism in the Anglo-Saxon world was motivated by the apparent failure of Keynesian economic management to control the stagflation of the 1970s and early 1980s. In this context, the theories of economic liberalism, championed by Friederich von Hayek, Milton Friedman and the Chicago School economists, provided an alternative. However, the divergent experience of the US, UK, Canada and Australia reveals two distinct 'varieties' of economic liberalism: the 'neo-classical' incarnation, which describes American and British liberal capitalism, and the more 'balanced' economic liberalism that evolved in Canada and Australia. In large part, these were a product of the way that liberal economic theory was understood and translated into policy, which in turn shaped the evolving relationship between the state and the private sector and the relative position of the financial sector within the broader economic system. Together, these determined the nature and extent of financial market regulation and the system's relative stability during the 2008 crisis.
    Keywords: Corporate governance, Regulation, Financial market instability, liberal capitalism, Varieties of capitalism
    JEL: E44 G38 N10 N20 P16 P17 P52
    Date: 2011–06
  16. By: Federico Barbiellini Amidei (Bank of Italy); John Cantwell (Rutgers University); Anna Spadavecchia (University of Reading)
    Abstract: The paper explores the long run evolution of Italy's performance in technological innovation as a function of international technology transfer, reconstructing the different phases and dimensions of Italian innovative activity, tracking the transfer of foreign technological knowledge through a number of channels, analysing the impact of imported technology. The study is based on a newly constructed dataset, over the 1861-2009 period, composed of variables related to: innovation activity performance; foreign technology transfer; domestic absorptive and innovative capability. The analysis highlights, also by econometric assessment, the significant contribution of foreign technology both to innovation activity results and to productivity growth. Differences across channels of technology transfer and historical phases emerge, also in connection with the evolution of human capital endowment and domestic innovative capacity. Machinery imports contributed positively both to innovation activity and to productivity growth; inward FDI contributed positively to productivity growth, but not to indigenous innovation activity; the accumulation of technical human capital fuelled both. In the long Italian Golden Age, for the first time the association of foreign technological knowledge with indigenous innovation processes strengthened productivity significantly. More recently instead the dismal productivity growth is negatively associated with formalised innovation activity under-performance and reduced imports of disembodied technology
    Keywords: Italy,Technology Transfer,Innovation,Absorptive Capability,Patenting
    JEL: N10 O31 O33 F23 O19
    Date: 2011–10
  17. By: Bluhm, Richard (UNU-MERIT / MGSOG, Maastricht University); Szirmai, Adam (UNU-MERIT / MGSOG, Maastricht University)
    Abstract: This paper provides an analytic review of selected contributions to the study of institutions and economic growth. We review the contributions to the study of institutional determinants of long-run growth by Engerman and Sokoloff, and Acemoglu, Johnson and Robinson. We discuss the work of Rodrik and others who focus on institutions and institutional reform and take steps towards bridging the gap between the study of long-run and short-run growth performances. In addition, we review two new theoretical frameworks by North, Wallis and Weingast and Khan that relate the structure of institutions to short-run volatility and long-run growth trends. We survey a wide array of supplementary econometric evidence and criticisms relating to each of these key contributions. Special attention is given to identifying the underlying causal relationships, the empirical methods and the kind of data used to test theories and hypotheses found in the literature. Further, we compare the findings in different strands of the literature using a sources-of-growth framework which distinguishes between ultimate, intermediate and proximate causes of growth and development.
    Keywords: growth, institutions, inequality, development
    JEL: O43 O30 O11
    Date: 2012
  18. By: Francesco Bianchi
    Abstract: The evolution of the U.S. economy over the last 50 years is examined through the lens of a micro-founded model that allows for changes in the behavior of the Federal Reserve and in the volatility of structural shocks. Agents are aware of the possibility of regime changes and their beliefs have an impact on the law of motion underlying the macroeconomy. The results support the view that there were regime switches in the conduct of monetary policy. However, the behavior of the Federal Reserve is identifi…ed by repeated fluctuations between a Hawk- and a Dove- regime, instead of by the traditional pre- and post- Volcker structure. Counterfactual simulations show that if agents had anticipated the appointment of an extremely conservative Chairman, inflation would not have reached the peaks of the late '70s and the inflation-output trade-off would have been less severe. These "beliefs counterfactuals" are new in the literature. Finally, the paper provides a set of tools to handle some of the technical difficulties that arise in rational expectation models with Markov-switching regimes.
    Date: 2012
  19. By: Nikolaos Antonakakis (Department of Economics, Vienna University of Economics and Business)
    Abstract: This paper examines the synchronization of business cycles across the G7 countries during US recessions since the 1870's. Using a dynamic measure of business cycle synchronization, results depend on the globalisation period under consideration. On average, US recessions have significantly positive effects on business cycle co-movements only in the period following the breakdown of the Bretton Woods system of fixed exchange rates, while strongly decoupling effects among the G7 economies are documented during recessions that occurred under the classical Gold Standard. During the 2007-2009 recession, business cycles co-movements increased to unprecedented levels.
    Keywords: Dynamic conditional correlation, Business cycle synchronization, Recession, Globalisation
    JEL: E3 E32 F4 F41 N10
    Date: 2012–04
  20. By: Raouf Boucekkine; David de la Croix and Omar Licandro
    Abstract: Vintage capital growth models have been at the heart of growth theory in the 60s. This research line collapsed in the late 60s with the so-called embodiment controversy and the technical sophistication of the vintage models. This paper analyzes the astonishing revival of this literature in the 90s. In particular, it out- lines three methodological breakthroughs explaining this resurgence: a growth accounting revolution, taking advantage of the availability of new time series, an optimal control revolution allowing to safely study vintage capital optimal growth models, and a vintage human capital revolution, along with the rise of economic demography, accounting for the vintage structure of human capital similarly to physical capital age structuring. The related literature is surveyed.
    Keywords: Vintage capital, embodied technical progress, growth accounting, optimal control, endogenous growth, vintage human capital, demography
    JEL: D63 D64 C61
    Date: 2011–06
  21. By: Morgan, Iwan
    Abstract: America’s economic strength has long underwritten its leading role in world affairs. The buoyant tax revenues generated by economic growth fund its massive military spending, the foundation of its global hard power. America’s economic success is also fundamental to its soft power and the promotion of its free-market values in the international economy. Finally, prosperity generally makes the American public more willing to support an expansive foreign policy on the world stage, whereas economic problems tend to engender popular introspection. Ronald Reagan understood that a healthy economy was a prerequisite for American power when he became president amid conditions of runaway inflation and recession. As he put it in his memoirs, ‘In 1981, no problem the country faced was more serious than the economic crisis – not even the need to modernise our armed forces – because without a recovery, we couldn’t afford to do the things necessary to make the country strong again or make a serious effort to reduce the dangers of nuclear war. Nor could America regain confidence in itself and stand tall once again. Nothing was possible unless we made the economy sound again’.
    Date: 2011
  22. By: Antonio Ciccone; Giovanni Peri
    Abstract: We find that over the period 1950-1990, US states absorbed increases in the supply of schooling due to tighter compulsory schooling and child labor laws mostly through within-industry increases in the schooling intensity of production. Shifts in the industry composition towards more schooling-intensive industries played a less important role. To try and understand this finding theoretically, we consider a free trade model with two goods/industries, two skill types, and many regions that produce a fixed range of differentiated varieties of the same goods. We find that a calibrated version of the model can account for shifts in schooling supply being mostly absorbed through within-industry increases in the schooling intensity of production even if the elasticity of substitution between varieties is substantially higher than estimates in the literature.
    Keywords: Schooling supply, Within-industry absorption, Industry composition
    JEL: F1 J3 R1
    Date: 2011–11
  23. By: Stephan Litschig
    Abstract: This paper uses a regression discontinuity design to estimate the impact of additional unrestricted grant financing on local public spending, public service provision, schooling, literacy, and income at the community (municipio) level in Brazil. Additional transfers increased local public spending per capita by about 20% with no evidence of crowding out own revenue or other revenue sources. The additional local spending increased schooling per capita by about 7% and literacy rates by about 4 percentage points. The implied marginal cost of schooling accounting for corruption and other leakagesamounts to about US$ 237, which turns out to be similar to the average cost of schooling in Brazil in the early 1980s. In line with the effect on human capital, the poverty rate was reduced by about 4 percentage points, while income per capita gains were positive but not statistically significant. Results also suggest that additional public spending had stronger effects on schooling and literacy in less developed parts of Brazil, while poverty reduction was evenly spread across the country.
    Keywords: Intergovernmental grants, decentralization, economic development
    JEL: D70 H40 H72 O15
    Date: 2011–12
  24. By: Hagen Kraemer
    Abstract: n the first part of the study developments of factor shares in six advanced economies since the early 1960s are presented. Instead of focusing on the wage share, ie the share of national income that goes to employees, a broader measure is used to account for all labor income, the labor income share. In the second part a simple empirical approach is used to shed some light on the question why the labor share declined in the majority of countries looked at. The main objective is to identify what happened empirically in the first decade of the new century behind the scene, rather than giving a theoretical expla-nation for the declining shares. In this way the developments of the labor share can by analyzed in detail by decomposing changes of the constituent factors that built the nu-merator and the denominator of the labor income share. The increase of the factors that determine the distributive scope is then contrasted with the development of the factors which can use it.
    Date: 2011
  25. By: Martin, Ben; Nightingale, P.; Yegros-Yegros, A.
    Abstract: Science and Technology Studies (STS) is one of a number of new research fields to emerge over the last four or five decades. This paper attempts to identify its core academic contributions using the methodology developed by Fagerberg et al. (2011) in their parallel study of Innovation Studies. The paper uses the references cited by the authors of chapters in a number of authoritative 'handbooks', based on the assumption that those authors will collectively have been reasonably comprehensive in identifying the core contributions to the field. The study analyses the publications most highly cited by the handbook authors, in particular examining their content and what they reveal about the various phases in the development of STS. The second part of the study analyses the 'users' of the STS core contributions who have cited these contributions in their own work, exploring their research fields, journals, and geographical location. The paper concludes with some comparisons between STS and the fields of Innovation Studies and Entrepreneurship, in particular with regard to the role of 'institution builders' in helping to develop a new research field.
    Keywords: science studies, STS, knowledge base, core contributions, institution builders
    JEL: N01 O33 B29 O14
    Date: 2011–09
  26. By: Natalie Mishagina; Claude Montmarquette
    Abstract: In this paper we summarize views presented in recent literature regarding the state of the Canadian labour market for science, technology, engineering, and mathematics (STEM) professionals. To a large extent, this market is affected by trends in the global market for high technology products and services. These global trends have been well-studied in the literature but mostly with respect to their effects on the United States, China, and India, whereas Canadian STEM labour market has received little attention. We propose topics of future research based on identified literature gaps and discuss issues related to data to make this research possible. <P>
    Date: 2012–05–01

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