New Economics Papers
on Business, Economic and Financial History
Issue of 2013‒03‒30
25 papers chosen by

  1. One hundred years of solitude, accumulation and violence: A comparative historical analysis of the Sierra Nevada of Santa Marta Valley By Bedoya Arias, M.E.
  2. The Black Swan of the Golden Periphery: The Ottoman Empire during the Classical Gold Standard Era By Ali Coskun Tunçer
  3. The Japanese family system: change, continuity, and regionality over the twentieth century By Akihiko Kato
  4. The Informal Economy in Monsoon Asia and Melanesia: West New Guinea and the Malay World By John D. Conroy
  5. Understanding creativity and innovation in industrial design: an historical and empirical assessment By Bertacchini Enrico; Friel Martha
  6. Energy, Knowledge and Economic Growth By John Foster
  7. Reallocation and Technology: Evidence From The U.S. Steel Industry By Allan Collard-Wexler; Jan De Loecker
  8. New measures of output, labour and capital in industries By Voskoboynikov, Ilya B.
  9. Social norms, family polices, and fertility trends: insights from a comparative study on the German-speaking region in Belgium By Sebastian Klüsener; Karel Neels; Michaela Kreyenfeld
  10. Political Credit Cycles: The Case of the Euro Zone By Jesus Fernandez-Villaverde; Luis Garicano; Tano Santos
  12. Georreferenciamento e História Agrária: distribuição espacial das propriedades rurais a partir dos registros de terras de meados do século XIX By Angelo Alves Carrara; Rafael Martins de Oliveira Laguardia
  13. On the Earliest Economic Growth and Income Inequality; or Modified Old Philosophical, Forgotten or Ignored, Study Reconsidered and Developed By Atayev, Atabek
  14. Related Variety, Unrelated Variety and Technological Breakthroughs: An analysis of U.S. state-level patenting By Carolina Castaldi; Koen Frenken; Bart Los
  16. Diving through the end of the business cycle. How to cope with exponential debt growth in linear revenue regimes By Karl Svozil
  17. Measuring the Impacts of Nuclear Accidents on Energy Policy By Zsuzsanna Csereklyei
  18. The Long-term Effects of Early Lead Exposure: Evidence from a case of Environmental Negligence By Tomás Rau; Loreto Reyes; Sergio S. Urzúa
  20. The Evolution of Canadian Wages over the Last Three Decades By Morissette, Rene<br /> Picot, Garnett<br /> Lu, Yuqian
  21. The Impact of Financialization on Management and Employment Outcomes By Rosemary Batt; Eileen Appelbaum
  22. MILL ET LA CRISE DE 1825 By Alain Béraud
  23. The Market for Reinsurance By M. Martin Boyer; Théodora Dupont-Courtade
  25. Time preference and health behaviour: A review By Lawless, Lydia J.R.; Nayga, Rodolfo; Drichoutis, Andreas

  1. By: Bedoya Arias, M.E.
    Abstract: This is an analysis of two moments in the Colombian history within a century of difference, where isolation, accumulation and violence interact in a region brought into the worlds’ imaginary by the Colombian novelist Gabriel García Márquez in One Hundred years of Solitude. A valley between four natural borderlines: the Sierra Nevada of Santa Marta, the Perijá hills, the Central and East ‘Cordilleras’ -mountain range- and the Magdalena River in the departments of Cesar and Magdalena (Colombia) part of what was called the department of ‘Magdalena Grande’ was blessed – or perhaps coursed – with wealth in natural resources; plenty of water streams, a unique biodiversity, cultural affluence and immense reserves of one of the purest steam coals. This paper attempts to draw a picture of the superimposed and persistent power structures that apparently facilitate the accumulative processes and imbalances within one century of difference, making use of violence as means to maintain equilibrium. Environment is changed trough politicized violent inflictions over society and nature. The resultant scars are the ones inflicted on a collective memory, as this valley is and will always be recalled by the poetic truth of the narrative of Gabriel García Marquez who recreated this mythic environment as ‘Macondo’. He remembers his own story of early childhood that here serves as an excuse to analyze a region that is again being bled by accumulation.
    Keywords: Colombia;violence;isolation;banana;coal;accumulation;extraction enclaves;political ecology of violence
    Date: 2013–03–18
  2. By: Ali Coskun Tunçer (London School of Economics, Department of Economic History)
    Abstract: This study analyses the functioning of the “gold standard” in the Ottoman Empire during the pre-1914 gold standard era, with specific emphasis on the institutions regulating commodity money and fiat money. It explores the extent to which the Ottoman monetary system was an outlier with reference to the experiences of other peripheral countries. One of the findings reveals considerably limited circulation of notes in the Ottoman Empire even after adherence to the gold standard in 1880. By highlighting the anomalies of the Ottoman case, this paper concludes that the transition from commodity money to fiat money did not take place at the same rate across peripheries during the pre-1914 gold standard era. These differences may be explained by the relative autonomy of the central banks of issue from governments, and in turn may have implied changing degrees of monetary sovereignty and fiscal capacity across the members of the golden periphery.
    Keywords: gold standard, monetary sovereignty, Ottoman Empire, fiat money
    JEL: N13 N23 N43
    Date: 2013–03–16
  3. By: Akihiko Kato (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: In Japan, many scholars and policymakers as well as ordinary people, have accepted the family nuclearization theory—that is, that the Japanese family system has changed from a traditional stem family into the modern nuclear or conjugal family in the latter half of the twentieth century. Although the number of nuclear family households doubled during the period of high economic growth (1955-1974), this can be brought about under the stem family principle by a marriage boom among non-heir sons and daughters born in the 1930s and the 1940s, who have many siblings due to the demographic transition. This paper examines continuity, change, and regionality in the Japanese family over the twentieth century, using retrospective longitudinal data from nationally representative survey implemented in 2002. The proportion of couples co-residing with the husband’s parent(s) or with the wife’s parent(s) at the time of marriage decreased from about 35% for those born in the 1930s to 20% for those born in the 1960s. However, the latter cohort started living with their parent(s) soon after marriage, and then over 30% of them co-reside 10–15 years after marriage, showing a delayed co-residence tendency. The results from a discrete-time logistic regression analysis reveal that the spread of conjugal family ideology, industrialization, and urbanization are the primary causes of the decrease in intergenerational co-residence at marriage. However, these effects start to weaken immediately after marriage and then fade out sooner or later, inconsistent with the nuclearization theory. By contrast, the intergenerational transfer of family property, especially house and/or land, and intergenerational reciprocity have powerful impacts from the time of marriage onward, never weakening with the passing of time. These features are clearer among younger cohorts than among their parental cohorts, suggesting intrinsic forces that form stem families continue to work in depth. Moreover, there is the persistence of the stem family in terms of regionality over the twentieth century, concluding that the Japanese family is still based on the stem family system. The evidence presented in this paper could provide several insights into the family systems of other strong family countries.
    Keywords: Japan
    JEL: J1 Z0
    Date: 2013–03
  4. By: John D. Conroy
    Abstract: his is the third in a series of papers concerned with the intellectual history of the 'informal economy' and its relevance to current concerns in Papua New Guinea (PNG; the eastern half of the island of New Guinea). Proceeding from the observation that monetized informal economic activity in PNG has been of relatively limited importance, the paper seeks explanations by comparing two stylized constructs, Monsoon Asia (where the informal economy is dynamic) and Melanesia (where it is limited in scope and contribution to livelihoods). Papua (occupying the western half of the island of New Guinea) is seen as a meeting point, or zone of transition, between Monsoon Asia and Melanesia. A long history of 'trading and raiding' on this frontier marked the encounter between ceremonial exchange, as practiced by Melanesians, and the system of tribute imposed on Papuans by Moluccan sultanates. Limited economic specialization and exchange in Melanesia contrasted with the Asian household economy, enmeshed in complex social hierarchies and systems of occupational differentiation. Historically, the Malay Archipelago engaged in a world trading system, into which it drew west New Guinea/Papua over millennia. Travelling peddlers played a key role in the archipelagic trade system, demonstrating the antiquity of the informal economy tradition in the cultures of Monsoon Asia. The paper seeks explanations for the comparative absence of that tradition in Melanesia. Finally, it examines the recent and rapid emergence of an informal economy in Papua, dominated by non-Melanesian immigrants, in the wake of the incorporation of (Dutch) west New Guinea into the Republic of Indonesia in 1963.
    Keywords: Melanesia, Indonesia, West New Guinea, Dutch East Indies, Papua New Guinea, spice trade, pre-modern trade, slavery, informal economy, Van Leur, Meilink-Roelofsz, Alfred Russel Wallace
    JEL: A12 B20 B25 F54 N75 N95 O17 P51 Z10
    Date: 2013–01
  5. By: Bertacchini Enrico; Friel Martha (University of Turin)
    Abstract: In the last decades, industrial design has been increasingly recognized as a sector combining elements of both artistic creativity and economic innovation. Using a unique dataset encompassing information on 326 top designers, 242 firms and 935 products from 1913 to 2000, we investigate the main patterns of the industrial des ign industry. First, we analyze the worldwide evolution of the creative sector in terms of industry structure, changes in product materials and agglomeration dynamics of both firms and designers. Second, we provide a preliminary quantitative investigation of designers’ creativity life-cycles. The paper contributes to the cultural economics literature by shedding light on the relations between creativity and innovation in creative industries
    Date: 2013–03
  6. By: John Foster
    Abstract: It is argued that the explosive growth experienced in much of the World since the middle of the 19th Century is due to the exploitation and use of fossil fuels which, in turn, was made possible by capital good innovations that enabled this source of energy to be used effectively. Economic growth, it is argued, has been due to an autocatalytic co-evolution of energy use and the application of new knowledge relating to energy use. A simple 'evolutionary macroeconomic' model of economic growth is developed and tested using almost two centuries of British data. The empirical findings strongly support the hypothesis that growth has been due to the presence of a 'super-radical innovation diffusion process.' Also, the evidence suggests that large and sustained movements in energy prices have had a very significant long term role to play. The paper concludes with an assessment of the implications of the findings for the future prospects of economic growth in Britain and the possible lessons that can be learned about the future of the global economy.
    Date: 2013–03–18
  7. By: Allan Collard-Wexler; Jan De Loecker
    Abstract: We measure the impact of a drastic new technology for producing steel -- the minimill -- on the aggregate productivity of U.S. steel producers, using unique plant-level data between 1963 and 2002. We find that the sharp increase in the industry's productivity is linked to this new technology, and operates through two distinct mechanisms. First, minimills displaced the older technology, called vertically integrated production, and this reallocation of output was responsible for a third of the increase in the industry's productivity. Second, increased competition, due to the expansion of minimills, drove a substantial reallocation process within the group of vertically integrated producers, driving a resurgence in their productivity, and consequently of the industry's productivity as a whole.
    Date: 2013–03
  8. By: Voskoboynikov, Ilya B. (Groningen University)
    Abstract: Russia is an important part of the world economy both now and in the past. Indeed, one would expect an abundance of studies on Russian economic development. In the past, growth and performance in planned economies vis-à-vis the Western world did attract much attention. These types of studies contributed to two revolutions of development thinking, which are the ?big push? approach based on success of Soviet industrialization in 1930-s and the unexpected collapse of the Soviet Union in 1991. However, recent performance of the Russian economy is less considered while much could be learned from studying the post-Soviet economic development. The key obstacle to the research in case of Russia is data availability. Detailed industrial data of labour, capital and output from early 1990-s onwards is not available both in the official statistics and in the literature. The present paper addresses this gap, providing detailed description of the newly developed dataset, which covers 34 industries in NACE 1.0 classification in 1995-2009. The paper also reports results of output growth rates decomposition into contributions of labour, capital and productivity (industrial growth accounting). Using more detailed data and better theoretical foundation it shows that the contribution of capital to economic growth in Russia is much more substantial that it has previously been reported in the literature until recently.
    Date: 2013
  9. By: Sebastian Klüsener (Max Planck Institute for Demographic Research, Rostock, Germany); Karel Neels; Michaela Kreyenfeld (Max Planck Institute for Demographic Research, Rostock, Germany)
    Abstract: Several countries in Northern and Western Europe report cohort fertility rates of close to two children per woman, including Belgium, France, and Denmark. By contrast, most Central and Southern European countries have cohort fertility levels of only around 1.5-1.6 children. Germany is part of this second group. In order to explain these country differences in fertility levels, some scholars have stressed the role of the social policy context, while others have pointed to differences in social fertility norms. However, due to the interdependence of these two factors, it is cumbersome to isolate their impact on fertility trends. In our study we at-tempt to disentangle these influences by drawing on a quasi-natural experiment. In the after-math of World War I, Germany was forced to cede the territory of Eupen-Malmedy to Bel-gium. The population in this area retained its German linguistic identity, but has been subject to Belgian social policies since the early 1920s. Our main research question is whether the fertility trends in this German-speaking region of Belgium follow the Belgian or the German pattern more closely. To answer this question, we use (micro)-census data to compare the fertility behavior in the German-speaking region in Belgium with data for western Germany and the Belgian Flemish- and French-speaking regions, controlling for individual-level char-acteristics. Our findings indicate that the overall fertility outcomes of the German-speaking region in Belgium resemble the Belgian pattern more than the German one. This provides support for the view that institutional factors play an important role for understanding the current fertility differences in Western Europe.
    Keywords: Belgium, Europe, Germany (Alte Bundesländer), family policies, fertility trends, social norms
    JEL: J1 Z0
    Date: 2013–03
  10. By: Jesus Fernandez-Villaverde; Luis Garicano; Tano Santos
    Abstract: We study the mechanisms through which the adoption of the Euro delayed, rather than advanced, economic reforms in the Euro zone periphery and led to the deterioration of important institutions in these countries. We show that the abandonment of the reform process and the institutional deterioration, in turn, not only reduced their growth prospects but also fed back into financial conditions, prolonging the credit boom and delaying the response to the bubble when the speculative nature of the cycle was already evident. We analyze empirically the interrelation between the financial boom and the reform process in Greece, Spain, Ireland, and Portugal and, by way of contrast, in Germany, a country that did experience a reform process after the creation of the Euro.
    JEL: D72 E0 G15
    Date: 2013–03
  11. By: Alain Béraud (THEMA, Universite de Cergy-Pontoise)
    Abstract: Dans le développement des théories de l’équilibre général, Hicks et Allais ont joué un rôle essentiel. On étudie ici les contributions qui furent les leurs respectivement dans Valeur et Capital (1939) et dans le Traité d’économie pure (1943). L’accent est mis sur trois points : la théorie du bien-être, la stabilité de l’équilibre et la construction d’un modèle dynamique. The development of general equilibrium theory: Allais and Hicks contributions In the development of the general equilibrium theories, Hicks and Allais played an essential role. We are studying here the contributions which were theirs respectively in Value and Capital (1939) and in the Traité d’économie pure (1943). The accent is put on three points: the theory of welfare, the stability of equilibrium and the construction of a dynamic model.
    Keywords: équilibre, utilité, optimum, surplus, stabilité
    JEL: B20 B31 C62 D50 D60
    Date: 2013
  12. By: Angelo Alves Carrara; Rafael Martins de Oliveira Laguardia
    Abstract: This study aims at evaluating the land registry records of the mid-1850s in Brazil as a source capable of delivering consistent elements for the analysis of the process of occupation and use of the land, particularly regarding the natural conditions or limitations determined by the relief and hydrography (near springs, flow, flood areas, etc..), and other geographic variables. What is proposed here takes into account the records of the ancient parish of Santo Antonio do Paraibuna. This initiative is part of those efforts being consolidated over recent years, and looking to create reliable cartographic sources based on a thorough analysis of traditional sources, mostly consisting of cartographic data itself. Consistency of analysis obviously will increase with the use of different sources, which can clarify important features such as post mortem inventories, legal proceedings, deeds of sale, for example. The proposed model was intended as an aid to historical research. Special attention is afforded to the methodology that generated a computer program developed for the purpose of rendering cartographic the non-cartographic information.
    Keywords: agrarian structure, parish land registry, cartographic sources, Brasil
    JEL: N56 Q15 B40
    Date: 2013–01
  13. By: Atayev, Atabek
    Abstract: Existing economic literature provides contradictory or insufficient explanations of relation between income inequality and economic growth. I propose that the reason is that the authors fail to consider fundamental forces which have given occasion to the variables and historical background of the issue. My analysis is focused on studying causes of the earliest income inequality and economic growth accompanied by inequality. I find that external power exercised by slave owners is force which has given occasion to inequality and growth. This finding provides fundamentally different understanding of the issue.
    Keywords: Division of Labor, Economic Growth, Freedom, Income Inequality
    JEL: D03
    Date: 2013–03–28
  14. By: Carolina Castaldi; Koen Frenken; Bart Los
    Abstract: We investigate how variety affects the innovation output of a region. Borrowing arguments from theories of recombinant innovation, we expect that related variety will enhance innovation as related technologies are more easily recombined into a new technology. However, we also expect that unrelated variety enhances technological breakthroughs, since radical innovation often stems from connecting previously unrelated technologies opening up whole new functionalities and applications. Using patent data for US states in the period 1977-1999 and associated citation data, we find evidence for both hypotheses. Our study thus sheds a new and critical light on the related-variety hypothesis in economic geography.
    Keywords: recombinant innovation, regional innovation, superstar patents, technological variety, evolutionary economic geography
    JEL: O31 R11
    Date: 2013–03
  15. By: Alain Béraud (THEMA, Universite de Cergy-Pontoise)
    Abstract: Walras defines the goods of public interest as those of whom the need is smelt in all its extent only by the community or the State. The article studies the coherence of this definition, its implications and its relationships with the definitions which the economists had given or give public goods today. Walras et le concept de bien d’intérêt public. Résumé : Walras définit les biens d'intérêt public comme ceux dont le besoin n'est senti dans toute son étendue que par la communauté ou l'Etat. L'article étudie la cohérence de cette définition, ses implications et ses rapports avec les définitions que les économistes avaient données ou donnent aujourd'hui des biens publics.
    Keywords: Walras, public goods
    JEL: B3 H
    Date: 2013
  16. By: Karl Svozil
    Abstract: Compound interest as well as inflation grows exponentially with time, whereas other means to repay debt grow polynomially. For this and other, mostly political, reasons, debt without inflation is unsustainable. We suggest a discontinuous way to eliminate debt by nullifying it.
    Date: 2013–03
  17. By: Zsuzsanna Csereklyei (Department of Economics, Vienna University of Economics and Business)
    Abstract: This paper examines the history of nuclear energy, safety developments of reactors and nuclear energy policy from the 1950s on. I investigate the effects of nuclear accidents on energy policy with the help of a panel dataset of 31 countries from 1965-2009, using annual data about the capacity of reactors under construction, primary energy consumption, as well as three nuclear accidents scaled INES five or higher by the International Atomic Energy Agency. After determining the extent of the accident impact in the different countries, I find that neither Three Mile Island nor Lucens had a worldwide negative effect on construction starts, while Chernobyl did. The effect of Chernobyl is however shown to wear-off in certain geographical clusters, after ten to thirty years. I find that nuclear capacity enlargement shows a significant persistence, but it was also driven by primary energy consumption in the past five decades. The effects of real interest rates, inflation, or gross domestic product on reactor construction were not found significant. Thus, an accident is likely to have a negative and long lasting impact in the country where it happened, and possibly in countries affected by the direct consequences, or where governments are subject to severe public pressure. It is difficult to estimate the consequences Fukushima is going to have on worldwide power plant constructions, but areas closer to the accident might be affected more negatively and for a longer time. Growing concerns of energy supply security and greenhouse gas emissions may counteract this impact at the legislative level.
    Keywords: Nuclear Energy, Nuclear Accidents, Energy Policy, Panel Regression
    JEL: C33 C52 Q41 Q43
    Date: 2013–03
  18. By: Tomás Rau; Loreto Reyes; Sergio S. Urzúa
    Abstract: This paper estimates the effect of early lead exposure on academic achievement and adult earnings. We analyze longitudinal information from individuals attending primary and secondary schools in the city of Arica (in northern Chile). Between 1984 and 1989, Arica received more than 20,000 tons of toxic chemicals containing high concentrations of lead. Initially, the chemical waste was located several kilometers from the city. However, Arica's rapid expansion, which included the construction of housing projects just meters away from the waste deposit, put a large number of families at risk. Our data include information on residential proximity to the polluted area, levels of lead exposure, comprehensive demographic information, nationally representative academic test scores and administrative data on adult earnings. We document a strong relationship between blood lead levels and student academic performance. We find that an increase of one microgram of lead per deciliter of blood reduces math and language scores by 0.15 and 0.21 standard deviations, respectively. For earnings, we estimate that for each extra microgram of lead, monthly earnings decrease by CLP 11,458 (or USD 22.92). This translates into a reduction of USD 6,000 in lifetime earnings per microgram of lead per deciliter of blood.
    JEL: I15 I18 I25 J17 O1 Q5 Q51 Q53 Q56
    Date: 2013–03
  19. By: Alain Béraud (THEMA, Universite de Cergy-Pontoise)
    Abstract: When French economists read The Purchasing Power of Money, they were primarily interested in the equation of exchange and the reformulation that Fisher proposed regarding the quantity theory of money. This reading led them to ponder the meaning that should be given to this theory and to study its empirical significance. Some of them, namely Rueff and Divisia, went further still and considered Fisher’s work as a starting point for their own analyses, which were related in particular to the monetary index, the integration of money into general equilibrium theory and the analysis of monetary phenomena in an open economy.
    Keywords: quantity theory of money, price index, theory of purchasing power parity, marginal utility of money, integration of money into general equilibrium.
    JEL: B E F
    Date: 2013
  20. By: Morissette, Rene<br /> Picot, Garnett<br /> Lu, Yuqian
    Abstract: This study examines how real wages of Canadian workers evolved from 1981 to 2011 across five dimensions: gender, age, education, industry, and occupation.
    Keywords: Labour, Education, training and learning, Wages, salaries and other earnings, Industries, Outcomes of education, Occupations
    Date: 2013–03–15
  21. By: Rosemary Batt (Cornell University); Eileen Appelbaum (Rutgers University)
    Abstract: This paper examines three questions: 1) How and why have financial models of doing business emerged in the last three decades? 2) What new forms of financial capitalism have become important in the current period? 3) How do new financial intermediaries, such as private equity, and the financial strategies of nonfinancial corporations affect the management of companies and employment outcomes? The paper describes how deregulation and institutional change created the conditions for a new, more powerful role for finance capital in the governance of U.S. companies, and it synthesizes the empirical evidence on the process and outcomes of financialization in large publicly traded corporations, as well as those taken over by private equity. Areas for future research are identified to examine how financialization affects management and employment relations in the postcrisis period.
    Keywords: United States, financialization, market deregulation, institutional change, private equity, institutional investors, management and labor relations
    JEL: D2 G3 J5 N2 P1
    Date: 2013–02
  22. By: Alain Béraud (THEMA, Universite de Cergy-Pontoise)
    Abstract: Mill on the crisis of 1825 This article studies the crisis which, in 1825, affected the English economy and the works that John Stuart Mill, Thomas Tooke and John Ramsay McCulloch dedicated to its analysis. McCulloch and Tooke maintain that the organization of the English banking system played, if not in the origin at least in the development of the crisis, a remarkable role. Mill, on the contrary, thinks that the crisis is the effect of over-trading and that it would have developed as well in a system where the currency would have consisted in species. This crisis is for him a credit crisis. This analysis which seems the best to give a full account of this crisis is, besides, the most innovative. The article clarifies its implications for the monetary theory and for the analysis of business cycles.
    Keywords: Crisis, Financial Crisis, Overtrading, Mill, Tooke, McCulloch.
    JEL: B12 B31 E32 G01 N13
    Date: 2013
  23. By: M. Martin Boyer; Théodora Dupont-Courtade
    Abstract: Using a unique proprietary dataset of primary insurers and reinsurers, we analyze the structure of the reinsurance market. The dataset, which spans six years, contains the quotes for different reinsurance layers, for different clients, for different treaties, and for different lines of business. This is the first study that documents the actual structure of the global reinsurance market using actual quotes, and not only the wining quote, for a large number of layers of a large number of reinsurance treaties. <P>
    Keywords: Reinsurance, reinsurance tranches, risk management, market structure,
    JEL: G34 G22
    Date: 2013–03–01
  24. By: Alain Béraud (THEMA, Universite de Cergy-Pontoise)
    Abstract: This contribution analyzes how Keynes and the keynesians asked the question of the choice of the unit of measure of the macroeconomic aggregates. Underlining the narrow relationships which exist between the lectures which Keynes professed between 1933 and 1935 and the diverse versions of the model IS-LM, it shows that the problems arise from the way Keynes had approached this problem. To argue about the monetary value of the aggregates leads to dichotomiser the model and does not allow to analyze correctly the interdependence between the labor market on one hand and the goods markets and the money market on the other hand. The model so formulated does not allow to treat in a rigorous way the effects of a variation of the monetary wage. It lets think, wrongly, that there is inevitably a full employment equilibrium.
    Keywords: Keynes, IS-LM, units of measure.
    JEL: B22
    Date: 2013
  25. By: Lawless, Lydia J.R.; Nayga, Rodolfo; Drichoutis, Andreas
    Abstract: Time preferences indicate preferences over streams of future consumption which significantly shape individual decision making including the health domain. In this paper, we review published studies to assess the influence of time preferences on human health behaviour. We first discuss the theoretical background of time preferences; ascertain the differences between private and social discount rates; identify the impact of time preferences on governments of developing nations; and then assess how time preferences influence risky behaviour such as being overweight, smoking, and engaging in risky sexual behaviour. The issue of whether to use proxies or experimental time preference elicitation methods in time preference studies is also addressed.
    Keywords: time preference; health domain; risk aversion; discount rate; behaviour
    JEL: D90 I0
    Date: 2013–03–21

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