nep-his New Economics Papers
on Business, Economic and Financial History
Issue of 2016‒10‒09
twenty-one papers chosen by

  1. Genuine Savings in developing and developed countries, 1900-2000 By Matthias Blum; Cristián Ducoing; Eoin McLaughlin
  2. Suffrage, Labour Markets and Coalitions in Colonial Virginia By Nikolova, Elena; Nikolova, Milena
  3. The Poor and the Poorest, fifty years on: Evidence from British Household Expenditure Surveys of the 1950s and 1960s By Ian Gazeley; Hector Gutierrez Rufrancos; Andrew Newell; Kevin Reynolds; Rebecca Searle
  4. The Rise and Fall of the German Stock Market, 1870-1938 By David Chambers
  5. Spain's Historical National Accounts: Expenditure and Output, 1850-2015 By Prados de la Escosura, Leandro
  6. On the measurement of long-run income inequality. Empirical evidence from Norway, 1875-2013 By Rolf Aaberge; Anthony B Atkinson; Jørgen Modalsli
  7. The European Payments Union and the origins of Triffin’s regional approach towards international monetary integration By Ivo Maes; Ilaria Pasotti
  8. Pouvoir de marché, stratégies et régulation: Les contributions de Jean Tirole, Prix Nobel d'Economie 2014 By David Encaoua
  9. Die einfache Adoption in Frankreich: Wiederbelebung einer alten Einrichtung (1804-2007) By Jean-François Mignot
  10. Los determinatentes internacionales de la evolución del sistema español de patentes durante el siglo XIX By Pretel, David
  11. Economically Relevant Human Capital or Multi-Purpose Consumption Good? Book Ownership in Pre-Modern Württemberg By Ogilvie, S.; Edwards, J.; Küpker, M.
  12. Statehood Experience, Legal Traditions and Climate Change Policies By James B. ANG; Per G. Fredriksson
  13. Conceptualizing the formation and role of expectations before 1950: George Katona's thought By Pierrick Dechaux
  14. Little Green Lies : EURATOM between European Nuclear Integration and World Nuclear Order, 1955-1958 FIntegration, Independence and Proliferation By Shuichi Kawashima
  15. Across the crises of modern capitalism By Fusari, Angelo i
  16. Art Auctions and Art Investment in the Golden Age of British Painting By Federico Etro; Elena Stepanova
  17. Movement Spillover and Union Support during the "Long Protest Wave" By Ferguson, John-Paul; Dudley, Thomas; Soule, Sarah A.
  18. A stylized model for wealth distribution By Bertram D\"uring; Nicos Georgiou; Enrico Scalas
  19. Hipótesis de ingreso permanente y consumo en Colombia 1952-2014 By Edwin Mauricio Parra Rodríguez
  20. Democratic reform and opposition to government expenditure : evidence from nineteenth-century Britain By Chapman, Jonathan
  21. Managing the Knowledge Commons: Interview with Carlo Vercellone - By Carlo Vercellone

  1. By: Matthias Blum (Queen’s University Management School, Queen’s University Belfast); Cristián Ducoing (; Eoin McLaughlin (Department of Geography and Sustainable Development, University of St. Andrews)
    Abstract: This paper traces the long-run development of Genuine Savings (GS) using a panel of eleven countries during the twentieth century. This panel covers a number of developed countries (Great Britain, Germany, Switzerland, France, the US, and Australia) as well as a set of resource-abundant countries in Latin America (Argentina, Brazil, Chile, Colombia, and Mexico). These countries represent approximately 50 percent of the world’s output in terms of Gross Domestic Product (GDP) by 1950, and include large economies and small open economies, and resource-rich and resource-scarce countries, thus allowing us to compare their historical experiences. Components of GS considered include physical and human capital as well as resource extraction and pollution damages. Generally, we find evidence of positive GS over the course of the twentieth century, although the twoWorldWars and the Great Depression left considerable marks. Also, we found striking differences between Latin American and developed countries when Total Factor Productivity (TFP) is included; this could be a signal of natural resource curse or technological gaps unnoticed in previous works.
    Keywords: Genuine Savings, Developed countries Latin America, Sustainability
    JEL: E21 E22 N50 Q00 Q01 Q20 Q30 Q50
    Date: 2016–10
  2. By: Nikolova, Elena (Central European Labour Studies Institute); Nikolova, Milena (IZA)
    Abstract: We study Virginia's suffrage from the early 17th century until the American Revolution using an analytical narrative and econometric analysis of unique data on franchise restrictions. First, we hold that suffrage changes reflected labour market dynamics. Indeed, Virginia's liberal institutions initially served to attract indentured servants from England needed in the labourintensive tobacco farming but deteriorated once worker demand subsided and planters replaced white workers with slaves. Second, we argue that Virginia's suffrage was also the result of political bargaining influenced by shifting societal coalitions. We show that new politically influential coalitions of freemen and then of small and large slave-holding farmers, which emerged in the second half of the 17th and early 18th centuries, respectively. These coalitions were instrumental in reversing the earlier democratic institutions. Our main contribution stems from integrating the labour markets and bargaining/coalitions arguments, thus proving a novel theoretical and empirical explanation for institutional change.
    Keywords: democracy, suffrage, colonialism, bargaining, coalitions, Virginia
    JEL: D02 N31 N41 P16
    Date: 2016–09
  3. By: Ian Gazeley (Department of History, University of Sussex); Hector Gutierrez Rufrancos (Department of Economics, University of Sussex); Andrew Newell (Department of Economics, University of Sussex and IZA, Bonn); Kevin Reynolds (Department of History, University of Sussex); Rebecca Searle (Department of History, University of Sussex)
    Abstract: We re-explore Abel-Smith and Townsend’s landmark study of poverty in early post WW2 Britain. They found a large increase in poverty between 1953-4 and 1960, a period of relatively strong economic growth. Our re-examination is a first exploitation of the data extracted from the recent digitisation of the Ministry of Labour’s Enquiry into Household Expenditure in 1953-4. First we closely replicate their results. We find that Abel-Smith and Townsend’s method generated a greater rise in poverty than other reasonable methods. Using contemporary standard poverty lines, we find that the relative poverty rate grew only a little at most, and the absolute poverty rate fell, between 1953-4 and 1961, as might be expected in a period of rising real incomes and steady inequality. We also extend the poverty rate time series of Goodman and Webb (1995) back to 1953-4.
    Keywords: poverty, inequality, 1950s, Britain
    JEL: N14 N34 O15
    Date: 2016–04
  4. By: David Chambers (Cambridge Judge Business School)
    Abstract: The prior literature has advanced differing views on whether Germany during the late 19th and early 20th centuries was an economy supported by an equity-based as well as a bank-oriented financial system. Primarily by deploying a new IPO dataset for the Berlin Stock Exchange encompassing 1870 to 1938, we show German equity markets were well-developed as the 19th century drew to a close and remained so through the 1920s. Our analysis indicates regulation helped to foster development before 1913 but had a deleterious impact during the 1930s and suggests that there was a fruitful coexistence between large banks and markets until the Nazi era.
    Keywords: Initial public offerings, Germany, Financial History, Corporate Law, Stock
    JEL: N23 N24 G18 G24 K22
    Date: 2016–07–25
  5. By: Prados de la Escosura, Leandro
    Abstract: This essay offers a new set of historical GDP estimates from the demand and supply sides that revises and expands those in Prados de la Escosura (2003) and provides the basis to investigate Spain’s long run economic growth. It presents a reconstruction of production and expenditure series for the century prior to the introduction of modern national accounts. Then, it splices available national accounts sets over the period 1958-2015 through interpolation, as an alternative to conventional retropolation. The resulting national accounts series are linked to the ‘pre-statistical era’ estimates providing yearly series for GDP and its components since 1850. On the basis of new population estimates, GDP per head is derived. Trends in GDP per head are, then, drawn and, using new employment estimates, decomposed into labour productivity and the amount of work per person, and placed into international perspective.
    Keywords: Spain; Splicing GDP; Expenditure; Output; GDP; Historical national accounts
    JEL: N14 N13 E01 C82
    Date: 2016–09–01
  6. By: Rolf Aaberge; Anthony B Atkinson; Jørgen Modalsli (Statistics Norway)
    Abstract: In seeking to understand inequality today, a great deal can be learned from history. However, there are few countries for which the long-run development of income inequality has been charted. Many countries have records of incomes, taxes and social support. This paper presents a new methodology constructing income inequality indices from such tabular data. The methodology is applied to Norway, for which rich historical data sources exist covering the period 1875 to 2013. Taking careful account of the definition of income and population and the availability of micro data starting in 1967, an upper and lower bound for the pre-tax income Gini coefficient for core households is produced. Our findings cast doubt on the idea that Norway in the nineteenth century was an egalitarian society, supporting the view of de Tocqueville that the young United States exhibited less inequality than the states of Europe. We show that overall inequality of gross family incomes is lower today than a hundred years ago. At the same time, there has not been a consistent downward trend over time in inequality; rather, the fall in inequality took place in a series of episodes. Comparison to existing data for Denmark and the United States reveals remarkable commonalities, as well as distinct periods of difference. This supports the view that the evolution of income inequality is best studied, not in terms of an over-arching theory, but by studying episodes of rising and falling inequality, and the manifold forces in operation
    Keywords: income; inequality; distribution; Norway; long-run changes
    JEL: D31 D63 N33 N34
    Date: 2016–10
  7. By: Ivo Maes (Economics and Research Department, NBB, Robert Triffin Chair, Université catholique de Louvain, and ICHEC Brussels Management School); Ilaria Pasotti (Catholic University of Milan)
    Abstract: Robert Triffin (1911-1993) played an important role in the international monetary debates in the postwar period. He was known as one of the main advocates of a multipolar international monetary system. In this paper we analyse the origins of riffin’s “regional” approach towards international monetary integration. We argue that Triffin’s experience with the European Payments Union (EPU)played hereby a crucial role. Triffin was not only an “architect” of the EPU, but the EPU also led to an important shift in Triffin’s view of the geography of the international monetary system. Before his work on the EPU, Triffin thought of the international economy as composed of two geographical entities: national economies and the world economy. With his work on the EPU he introduced a third geographical entity: the region. The EPU would so be at the basis of Triffin’s advocacy of a regional approach towards international monetary integration. Moreover, while Triffin was initially quite positive on the IMF, he became, through his EPU experience, more critical of the IMF and its worldwide approach.
    Keywords: Triffin, European Payments Union (EPU), international monetary system (IMS)
    JEL: A11 B31 F02 F33 F36 N24
    Date: 2016–09
  8. By: David Encaoua (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article is devoted to a perspective of the works of Jean Tirole on the topics mentioned by the Nobel Committee, namely the analysis of market power, its control mechanisms and the regulation of network activities and natural monopoly. It develops in three parts. The first explains why and how these works have contributed to a profound renewal of the Industrial Organization field by offering strong theoretical foundations. The second presents different contributions that advance our understanding of the Economics of Innovation. The third part refers to the works on the Economics of Regulation. In each part, the focus is on three aspects: i / the state of knowledge at the time of the work, ii / the analytical instruments and iii / the lessons that can be drawn. The article seeks to illustrate a common feature in many of these works, that of combining theoretical research leading to the knowledge's enlargement in various fields of economic analysis, and a choice of questions motivated by a strong concern to find solutions to some contemporary economic problems, based on a serious prior theoretical analysis.
    Abstract: Cet article est consacré à une mise en perspective des travaux réalisés par Jean Tirole sur les thèmes mentionnés par le communiqué du Nobel, à savoir l'analyse du pouvoir de marché, ses modalités de contrôle et la régulation des activités de réseaux et de monopole naturel. Il se développe en trois parties. La première explicite pourquoi et comment ces travaux ont participé à un profond renouveau de l'Economie Industrielle. La seconde présente les contributions participant à l'élaboration d'une véritable économie de l'innovation. La troisième partie se réfère aux travaux sur la régulation. Dans chacune de ces parties, l'accent est mis sur trois aspects : i/ l'état des connaissances au moment de ces travaux, ii/ les instruments d'analyse utilisés, et iii/ les enseignements que l'on peut en tirer. L'article cherche également à illustrer une caractéristique commune à plusieurs de ces travaux, celle de combiner, d'une part, une recherche théorique conduisant à un véritable renouvellement de nos connaissances dans différents champs de l'analyse économique, et d'autre part, un choix de questions motivées par une forte préoccupation à trouver des moyens de résolution de nombreux problèmes économiques contemporains, se fondant sur une sérieuse analyse théorique préalable.
    Keywords: réseaux,standards technologiques,asymétries informationnelles,oligopole,restrictions verticales,forclusion,course au brevet,systèmes non propriétaires,marchés bifaces,pools de brevets,régulation
    Date: 2015–04
  9. By: Jean-François Mignot (GEMASS - Groupe d'Etude des Méthodes de l'Analyse Sociologique de la Sorbonne - UP4 - Université Paris-Sorbonne - FMSH - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Neben der sogenannten Volladoption gibt es in Frankreich eine„ einfache Adoption “, mit der zusätzlich zur Abstammungsverbindung des Adoptierten mit seiner Ursprungsfamilie eine weitere neue Verbindung erstellt wird. Heutzutage geht es bei dieser Art Bindung für einen Stiefvater/eine Stiefmutter ohne Kinder meist darum, ein liebgewordenes großjähriges Kind zu adoptieren, um ihm sein Erbgut zu sichern. Die unter den Familiensoziologen wenig bekannte einfache Adoption ist jedoch heute häufiger als die Volladoption. Gestützt auf die historischen Statistiken des Justizministeriums für einfache Adoptionen seit dem 19. Jhdt. zeichnen wir die geschichtliche Entwicklung dieser Einrichtung seit ihrer Einführung in das französische Recht im Jahre 1804 nach, mit dem Zweck der besseren Kenntnis der einfachen Adoption, aber auch zum besseren Verständnis der Gründe des Aufschwungs der einfachen Adoption seit den siebziger Jahren und zur Erkennung der langzeitlichen soziodemographischen und kulturellen Veränderungen der Familie.
    Abstract: Along with so-called “full” adoption, there is in France another form known as “simple” adoption, which adds an additional descendency tie to the adoptees’ tie with his family of origin. Nowadays, this form of adoption is mostly used by a step-parent without children to adopt an adult stepchild to whom there is already an attachment in order to transmit his/her estate to it. Simple adoption, about which little is known by sociologists of the family, has now become more common than full adoption. Using historical statistics from the Ministry of Justice on simple adoption since the nineteenth century, we trace the history of this institution since 1804 when it became part of French law. The objective is not just to better understand simple adoption, but also the reasons for its rise since the 1970s and what this reveals about long term socio-demographic and cultural changes within the family.
    Abstract: En paralelo de la adopción llamada “plena” existe en Francia una adopción “simple”, que añade al lazo de filiación del adoptado con su familia de origen otro lazo, adicional. Hoy en día, esta forma de adopción en general consiste en que el cónyuge del padre/de la madre, sin hijos propios, adopte a su hijastro/a mayor de edad, al que se siente unido, para transmitirle su patrimonio. Dicha adopción simple, bastante ignorada por los soció-logos de la familia, es hoy día más frecuente que la adopción plena. Gracias a las estadísticas históricas del ministerio de Justicia acerca de la adopción simple desde el s. XIX, retratamos la historia de esta institución desde su introducción en el derecho francés en 1804. Nuestro objetivo es conocer mejor en qué consiste la adopción simple, pero también entender el porqué de su auge desde los años 1970 y lo que revela respecto a las transformaciones sociodemográficas y culturales de la familia a largo plazo.
    Abstract: Parallèlement à l’adoption dite « plénière », il existe en France une adoption « simple », qui ajoute au lien de filiation de l’adopté avec sa famille d’origine un nouveau lien, supplémentaire. De nos jours, cette adoption consiste le plus souvent, pour un beau-parent sans enfant, à adopter son bel-enfant majeur pour lui transmettre son patrimoine. Or, cette adoption simple, mal connue des sociologues de la famille, est aujourd’hui plus fréquente que l’adoption plénière. En utilisant les statistiques historiques du Ministère de la Justice sur l’adoption simple depuis le XIXe siècle, nous retraçons l’histoire de cette institution depuis son introduction en droit français en 1804. L’objectif est de mieux connaître ce qu’est l’adoption simple, mais aussi de comprendre les raisons de l’essor de l’adoption simple depuis les années 1970 et ce que cela révèle des transformations sociodémographiques et culturelles de la famille sur le long terme.
    Keywords: Adoption simple,Adoption du majeur,Adoption en France,Famille recomposée,Filiation,Divorce,Succession
    Date: 2015
  10. By: Pretel, David (El Colegio de México)
    Abstract: The various nineteenth-century national patent systems had a heterogeneous institutional evolution. This article explores the international determinants of this institutional diversity, using the Spanish system as a case study. Instead of presenting the causality as running from institutions to economic performance, it explores the inverse relationship, that is, how Spain’s technological backwardness and dependency set the stage for the institutional organisation of this country’s patent system. The international dynamics manifested in different aspects of the system: its peripheral, hybrid and dual nature; the Spanish reception of the European controversy over patent rights; the early Spanish integration into the international patent system; and the prominence of international intermediaries. The article concludes that nineteenth-century variations in the institutional architecture and the administrative practices of the various national systems were the consequence of the historical making of an asymetric international patent system.
    Keywords: patents, international system, institutional diversity, intermediaries
    JEL: N73 O3 F55 B1
    Date: 2016–09
  11. By: Ogilvie, S.; Edwards, J.; Küpker, M.
    Abstract: Human capital is widely regarded as central to economic growth but historical analyses find no causal link between standard literacy indicators and economic development. Book consumption has been proposed as an alternative indicator which has the advantage of measuring economically relevant human capital. We investigate this possibility using individual-level data from a German region between 1610 and 1900. Book ownership was widespread in this society from an early date. But multivariate analysis reveals that the relationship between book ownership and signatures, the standard literacy measure, differed substantially across time-periods, locations, and social groups. Book consumption was associated with other variables – time, gender, urbanization, migration status, and wealth – in ways inconsistent with its having conveyed the “useful knowledge” of industrial and commercial matters emphasized as the way books might have measured economically relevant human capital. Book consumption is interesting in its own right and casts light on important aspects of the preferences of pre-modern economic agents, but cannot serve as an indicator of human capital for historical analyses of economic growth.
    Keywords: economic history; human capital; education; growth; Germany
    JEL: N33 E24 J24 O15
    Date: 2016–09–26
  12. By: James B. ANG (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.); Per G. Fredriksson (Department of Economics, University of Louisville, Louisville, KY 40292, USA.)
    Abstract: This paper investigates how the implementation of modern climate change policies is related to former colonies' length of state history and their legal heritage. We argue that countries with longer statehood experience around the time of colonization were better equipped to implement the legal philosophies transplanted by their colonial powers. Therefore, the implications of receiving British common law versus French civil law should be particularly important in countries with a greater accumulated history of statehood. Using a cross section of up to 78 former colonies, our results provide support for this hypothesis. In particular, our estimates demonstrate that common law countries have weaker modern climate change policies than civil law countries and the difference is in ated by a longer statehood experience, measured by the length of state history from 1-1800 AD. Legal origin has no e ect in areas which, by the time of colonization, had no statehood experience.
    Keywords: Environmental policy; climate change; state antiquity; history; state capacity;legal origins; colonization.
    JEL: Q58 K23 O44
    Date: 2016–09
  13. By: Pierrick Dechaux (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article analyzes Katona's theory of expectations and compares it to that of Keynes and Hicks. It discusses the implicit and explicit debates on the introduction of psychology in economic theory. The aim of this paper is twofold: define Katona's thought and examine the impact of this work on the debate on expectations in macroeconomics. This paper shows that Katona is the only author, to our knowledge, who develops both an empirical and theoretical research program on expectations that borrows from the epistemology of Keynes. While rediscovering Katona's work, this paper contributes to highlight the forgotten methodology that initiated the construction of confidence (or sentiment) indexes. It also discusses the implicit and explicit debates on the introduction of psychology in economic theory.
    Abstract: Cet article étudie la théorie des anticipations de Katona et la compare à celle de Keynes et de Hicks. Il poursuit deux objectifs : définir la pensée de Katona et examiner son impact dans le débat sur les anticipations en macroéconomie. Ce papier met en évidence que Katona est le seul auteur, à notre connaissance, à développer un programme à la fois empirique et théorique sur les anticipations qui empreinte à l'épistémologie de Keynes. En s'intéressant aux travaux peu étudiés de Katona, cet article remet en avant la méthodologie à l'origine de la construction des indicateurs de confiance. Il discute aussi les débats implicites et explicites sur l'introduction de la psychologie en théorie économique.
    Keywords: psychology,expectations theories,expectations measures,Macroeconomics,George Katona,Keynes,Hicks,psychologie,théories des anticipations,mesures des anticipations,Macroéconomie
    Date: 2015–02
  14. By: Shuichi Kawashima (Meiji University)
    Abstract: This paper examines the historical process by which European Atomic Community (EURATOM) was established and gained its institutional functions. Special attention is paid to how EURATOM was placed in the Nuclear World Order which was being established gradually from 1950s to 1960s. EURATOM is the predecessor of one of the organizations which consists today fs EU still plays certain roles today. However, whereas the EEC, established simultaneously as EURATOM, succeed in providing the foundations of today fs EU, this atomic Community rapidly lost its raison d'etre and is today almost forgotten. What was EURATOM? This paper scrutinize establishment of EURATOM, based on unpublished multi-archival materials, putting it in the context of global nuclear order in broader sense which include regime of peaceful use of nuclear energy and military alliance such as NATO whose strategy depended on nuclear weapons, rather than of European integration. EURATOM turns out to be a kind of an air-pocket whilst Europe pursued cooperation and independence simultaneously with the United States.
    Date: 2016–10
  15. By: Fusari, Angelo i
    Abstract: This essay provides a preliminary assessment of the transition from the 1929 crisis (and its solution) to the 2008 crisis. It points out how the modalities of the solution of the first crisis have paved the way for the recent crisis. The paper hangs the description and explanation of the whole process on a combination of the notions of business cycles and phases of development, a combination that allows the representation and explanation of the successive and various patterns of capitalism across the considered historical period. Thereafter we underline, mainly using the notion of functional imperatives, the important institutional transformations required in the passage from one type of capitalism to another, and the destabilizing effects that have resulted from the absence of those transformations in the wake of the emergence of conflictualconsumeristic capitalism and financial capitalism. On this analytical basis, we ground the widening of the recent crisis, showing a growing menace of long-term stagnation, contradictions and conflicts. Finally, the paper delineates some institutional reforms essential to overcoming the structural deficiencies inherited by conflictual-consumeristic capitalism and the dawning and no less damaging drawbacks that are being prepared by financial capitalism
    Keywords: Business cycles; Phases of development; The present failure of demand models; The question of money; Oganization of financial markets; Separation principle
    JEL: A1 E5 E6 E60 O3 P50
    Date: 2015
  16. By: Federico Etro; Elena Stepanova
    Abstract: We analyze the evolution of the price of paintings in London auctions with a unique dataset of over 200,000 sales in the period 1780-1840. We build a price index for the representative painting through hedonic regressions controlling for the characteristics of auctions and paintings and for the artists' fixed effects. The emergence of an efficient secondary art market was an important opportunity for portfolio diversification. Estimating a CAPM model for art investment suggests that British paintings could deliver a higher return compared to imported paintings and an attractive source of diversification relative to the contemporary stock market. This contributed to increase demand for British art and, possibly, to promote the innovations of its Golden Age. While the representative painting of the British school was initially undervalued, new British painters reached foreign prices by the beginning of 1800s.
    Keywords: Art investment, Price of paintings, British Golden Age, Hedonic regressions, CAPM
    Date: 2016–04–10
  17. By: Ferguson, John-Paul (Stanford University); Dudley, Thomas (Stanford University); Soule, Sarah A. (Stanford University)
    Abstract: This paper examines whether protest assocated with the "long protest wave" of the 1960s and 1970s positively influenced private-sector union support. Past research has found no such influence. We use measures designed to more closely represent the theoretical mechanisms proposed for spillover--specifically, union support rather than overall union density--and find a clear effect of protest on union support. Moreover, we find that this effect is greatest for unions with more progressive track records than for the labor movement as a whole. These results have implications for the social-movement literature on spillovers, labor studies, and organizational scholarship.
    Date: 2015–04
  18. By: Bertram D\"uring; Nicos Georgiou; Enrico Scalas
    Abstract: The recent book by T. Piketty (Capital in the Twenty-First Century) promoted the important issue of wealth inequality. In the last twenty years, physicists and mathematicians developed models to derive the wealth distribution using discrete and continuous stochastic processes (random exchange models) as well as related Boltzmann-type kinetic equations. In this literature, the usual concept of equilibrium in Economics is either replaced or completed by statistical equilibrium. In order to illustrate this activity with a concrete example, we present a stylised random exchange model for the distribution of wealth. We first discuss a fully discrete version (a Markov chain with finite state space). We then study its discrete-time continuous-state-space version and we prove the existence of the equilibrium distribution. Finally, we discuss the connection of these models with Boltzmann-like kinetic equations for the marginal distribution of wealth. This paper shows in practice how it is possible to start from a finitary description and connect it to continuous models following Boltzmann's original research program.
    Date: 2016–09
  19. By: Edwin Mauricio Parra Rodríguez
    Abstract: El presente trabajo pone a prueba la Hipótesis de Ingreso Permanente (HIP) y examina los principales determinantes del Consumo Privado Real para Colombia en el Periodo 1952-2014. Para esto, se utiliza una metodología de series de tiempo y, se estima la relación entre el Consumo Privado Real como proporción del Ingreso Nacional Disponible con un conjunto de variables que recogen los efectos permanentes y transitorios del ingreso. De manera complementaria, se estima un modelo en el que el logaritmo del Consumo Privado Real está en función de los componentes permanente (tendencial) y transitorio (cíclico) del ingreso, obtenidos por medio del filtro Hodrick y Prescott al Ingreso Nacional Disponible. Los resultados de las estimaciones sugieren que en Colombia: i) el Consumo Privado Real es una función de sus valores inmediatamente anteriores, lo cual valida la Hipótesis de Expectativas Adaptativas de Hall en la que el consumo se comporta como un paseo aleatorio y, ii) se cumple la HIP, no obstante, los ingresos transitorios también ejercen influencia sobre el consumo.
    Keywords: Ahorro Privado, Consumo Privado, Hipótesis de Ingreso Permanente, Política Macroeconómica.
    JEL: E12 E13 E20 E27
    Date: 2016–09–28
  20. By: Chapman, Jonathan
    Abstract: Several theories have argued that democratic reform will lead to higher government spending. However, these theories have generally focused on expenditure on redistribution rather than expenditure on public goods. This paper argues that poorer citizens may desire relatively low levels of public goods provision and so democratization may lead to lower government expenditure on items such as public infrastructure. This hypothesis is tested using a new panel dataset of town council infrastructure spending and revenue in nineteenth-century Britain. An 1894 national reform implementing a system of “one-household-one-vote” and the secret ballot is used as the treatment event in a difference-in-difference analysis. The results show that democratic reform slowed the growth of town council spending on public goods, including water supply and other public infrastructure. Further analysis suggests that government spending was highest when the balance of political power was held by the middle class, rather than the poor.
    Keywords: Democratization, Elites, Secret ballot, Infrastructure, Public goods
    Date: 2016
  21. By: Carlo Vercellone (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Interview with Dr. Carlo Vercellone, one of the leading theorists of cognitive capitalism and economist at the CNRS Lab of The Sorbonne Economic Centre (Centre d'Economie de la Sorbonne, CES).
    Keywords: commons, knowledge based economy, Common property, cognitive capitalism
    Date: 2015–06–16

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