nep-his New Economics Papers
on Business, Economic and Financial History
Issue of 2018‒02‒19
24 papers chosen by

  1. The Bank of England as lender of last resort: new historical evidence from daily transactional data By Anson, Mike; Bholat, David; Kang, Miao; Thomas, Ryland
  2. Hunting the Big Five: Twenty-first Century Antitrust in Historical Perspective By Richard N. Langlois
  3. A Study on Consumption of European Red Wine in China (1680-1840): state of the art, questions, hypothesis, sources and methodology By Lei Jin
  4. The role of natural resources in production: Georgescu-Roegen/Daly versus Solow/Stiglitz By Quentin Couix
  5. Redes sociales y sectores subalternos del contrabando terrestre en la frontera inter-imperial, 1780-1810. By Adriana Dávila; María Inés Moraes
  6. The Anatomy of a Trade Collapse: The UK, 1929-33 By Alan de Bromhead; Alan Fernihough; Markus Lampe; Kevin Hjortshøj O'Rourke
  7. How does the public perceive alliances? The Central and Allied Powers in World War I By Jopp, Tobias A.
  8. "Geographical Origins of Language Structures " By Oded Galor; Omer Ozak; Assaf Sarid
  9. Consumption of Chinese silk fabrics in Marseille and Seville, 1680 – 1840 By Guimel Hernández-Garay
  10. Electoral politics and the diffusion of primary schooling: evidence from Uruguay, 1914-1954 By Paola Azar Dufrechou
  11. Effects of Copyrights on Science - Evidence from the US Book Republication Program By Biasi, Barbara; Moser, Petra
  12. Core and periphery in the European Monetary Union: Bayoumi and Eichengreen 25 years later By Campos, Nauro F.; Macchiarelli, Corrado
  13. War, migration and the origins of the Thai sex industry By Brodeur, Abel; Lekfuangfu, Warn N.; Zylberberg, Yanos
  14. Monetary System of Georgia in XI-XII centuries and its Effect on Economic Activity By Abuselidze, George
  15. Getting to Denmark' : the Role of Elites for Development By Skovsgaard, Christian Volmar; Sharp, Paul; Lampe, Markus; Jensen, Peter Sandholt
  16. Pourquoi l'histoire de la pensée économique est-elle différente des autres histoires ? By André Lapidus
  17. Monnaie, crédit et inflation : l'analyse de Le Bourva revisitée By Jean-Luc Gaffard
  18. Frontier Culture: The Roots and Persistence of “Rugged Individualism†in the United States By Samuel Bazzi; Martin Fiszbein; Mesay Gebresilasse
  19. Reformas del sistema de pensiones en Chile (1952-2008) By Vargas, Luis Hernán
  20. International Commodity Prices and Civil War Outbreak: New Evidence for Sub-Saharan Africa and Beyond By Antonio Ciccone
  21. Globalization and Income Inequality Revisited By Florian Dorn; Clemens Fuest; Niklas Potrafke
  22. Kapitalismus versus Marktwirtschaft. Karl Marx und Fernand Braudel By Faber, Malte; Petersen, Thomas
  23. Schiffsfinanzierung im Wandel: Finanzintermediäre und maritime Wirtschaft am Finanzplatz Hamburg By Wixforth, Harald
  24. Bis repetita non placent: Griechische Finanzkontrolle im 19. Jahrhundert und in der Gegenwart By Schönhärl, Korinna

  1. By: Anson, Mike (Bank of England); Bholat, David (Bank of England); Kang, Miao (Bank of England); Thomas, Ryland (Bank of England)
    Abstract: We use daily transactional ledger data from the Bank of England’s Archive to test whether and to what extent the Bank of England during the mid-nineteenth century adhered to Walter Bagehot’s rule that a central bank in a financial crisis should lend cash freely at a penalty rate in exchange for ‘good’ securities. The archival data we use provides granular, loan-level insight on the price and quantity of credit, and information on its distribution to particular counterparties. We find that the Bank’s behaviour during this period broadly conforms to Bagehot’s rule, though with variation across the crises of 1847, 1857 and 1866. Using a new, higher frequency series on the Bank’s balance sheet, we find that the Bank did lend freely, with the number of discounts and advances increasing during crises. These loans were typically granted at a rate above pre-crisis levels and, in 1857 and 1866, typically at a spread above Bank Rate, though we also find some instances in the daily discount ledgers where individual loans were made below Bank rate in 1847. Another set of customer ledgers shows that the securities the Bank purchased were debts owed by a geographically and industrially diverse set of debtors. And using new data on the Bank’s income and dividends, we find the Bank and its shareholders profited from lender of last resort operations. We conclude our paper by relating our findings to contemporary debates including those regarding the provision of emergency liquidity to shadow banks.
    Keywords: Bank of England; lender of last resort; financial crises; financial history; central banking
    JEL: E58 G01 G18 G20 H12
    Date: 2017–11–10
  2. By: Richard N. Langlois (University of Connecticut)
    Abstract: Voices along the whole of the political spectrum are calling for heightened scrutiny of American information-technology companies, especially the Big Five of Amazon, Apple, Facebook, Google, and Microsoft. One of the principal themes of this uprising is that present-day antitrust policy, forged in the rusty era of steel, oil, and cars, is now obsolete. We are in the age of information, which ipso facto calls for new rules. A second animating theme is that the antitrust thinking of the Chicago School, which came to prominence in the last quarter of the last century, must be completely overthrown. Proponents of this new antitrust ground their arguments by returning to the historical roots of American antitrust policy. My contention, however, is that the new antitrust gets this history wrong. It both misconceives the nature of the competitive process and deliberately refuses to confront the political economy of antitrust. In so doing, it adopts some of the worst traits of the Chicago School it criticizes while manifesting few of that school’s many virtues.
    Keywords: antitrust, platforms, telecommunications, broadcasting, net neutrality
    JEL: L10 L40 L50 L96 N72 N82
    Date: 2018–01
  3. By: Lei Jin (Department of Early Modern History, GECEM Project, Universidad Pablo de Olavide)
    Abstract: The global history perspective and comparison research between Eurocentric and Sinocentric methods on economic history give us new perspective on the topic of European-Chinese trade during early modern period. Compared with the large number of researches on the consumption society of Western Europe around the 18th century about the goods from Eastern world like tea, silk, and porcelain, very few researches have been done about the European commodities in Eastern countries. Especially, the studies on consumption of European wine in China market during the 17th and 18th centuries is completely void. Therefore, based on the economic conditions of southern and eastern China, considered the geographical, political and cultural aspects, several questions and hypothesis are designed, including consumption groups of the European wine, the consumer volumes, consumption habits, wine market shares, the merchant groups’ role, etc. The research will be down upon the cross-referencing of primary data and the materials, along with the application of database.
    Keywords: global history, consumption history, European red wine, wine consumption, China, Qing Dynasty
    JEL: N01 N73 N75
    Date: 2018–01
  4. By: Quentin Couix (Centre d'Economie de la Sorbonne)
    Abstract: This paper proposes a historical and epistemological account of one of the key controversy between natural resources economics and ecological economics, lasting from early 1970s to the end of 1990s. It shows that the theoretical disagreement on the scope of the economy's dependence to natural resources, such as energy and minerals, has deep methodological roots. On one hand, Solow's and Stiglitz's works are built on a “model-based methodology”, where the model precedes and supports the conceptual foundations of the theory and in particular the assumption of “unbounded resources productivity”. On the other hand, Georgescu-Roegen's counter-assumption of “thermodynamic limits to production”, later revived by Daly, rest on a methodology of “interdisciplinary consistency” which considers thermodynamics as a relevant scientific referent for economic theory. While antagonistic, these two methodologies face similar issues regarding the conceptual foundations that arise from them, which is a source of confusion and of the difficult dialogue between paradigms
    Keywords: natural resources; thermodynamics; growth; sustainability; model; theory; methodology
    JEL: B22 B41 Q01 Q32 Q43 Q57
    Date: 2018–01
  5. By: Adriana Dávila (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); María Inés Moraes (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: This text is part of a larger effort on the smuggling phenomenon between the two Iberian empires in the Río de la Plata. Its objective is to better understand a type of illegal inter-imperial trade exchanges in the Río de la Plata during the late colonial period. It is about exchanges made by land (or by rivers and inland lagoons) in the last quarter of the 18th century and the beginning of the 19th century, between the territories on the north shore of the Río de la Plata and what was the Captaincy of Rio Grande do Sul. In these circuits, live animals, leather, textiles, tobacco and slaves were traded. Its economic, political and social importance is widely accepted by regional historiography. This paper presents evidence on the actors involved in these illegal exchanges, with emphasis on the subaltern sectors that formed the last link in the chain of agents involved in smuggling. The same was obtained from 180 judicial files generated in repressive interventions on goods and persons of illegal traffic, in different spaces of the northern band of the Río de la Plata between 1780-1810. The paper uses research techniques of network analysis to characterize the agents involved, as well as their economic, financial and social ties.
    Keywords: social network, contraband, border, smuggling
    JEL: N26
    Date: 2017–12
  6. By: Alan de Bromhead; Alan Fernihough; Markus Lampe; Kevin Hjortshøj O'Rourke
    Abstract: A recent literature explores the nature and causes of the collapse in international trade during 2008 and 2009. The decline was particularly great for automobiles and industrial supplies; it occurred largely along the intensive margin; quantities fell by more than prices; and prices fell less for differentiated products. Do these stylised facts apply to trade collapses more generally? This paper uses detailed, commodity specific information on UK imports between 1929 and 1933, to see to what extent the trade collapses of the Great Depression and Great Recession resembled each other. It also compares the free trading trade collapse of 1929-31 with the protectionist collapse of 1931-3, to see to what extent protection, and gradual recovery from the Great Depression, mattered for UK trade patterns. Deflation was a feature of the 1930s trade collapse, and after 1931 protectionism made the UK's trade collapse geographically unbalanced. Many other features of the two trade collapses are remarkably similar, however. Both took place along the intensive rather than the extensive margin; the same types of goods were particularly badly hit in both instances; and prices of differentiated durable manufactured goods barely fell on either occasion.
    JEL: F14 N74
    Date: 2018–01
  7. By: Jopp, Tobias A.
    Abstract: World War I was fought by numerous countries siding together as the Central Powers and, respectively, the Allied Powers. The former established around the German Empire and Austria-Hungary and grew to four allies when the Ottoman Empire in late 1914 and Bulgaria in late 1915 entered the scene; the latter centered on the alliance between England, France, and Russia and was informally extended to many more countries as they entered into the war ad-hoc by signaling common interests with the core Allied Powers. This article addresses an oft-neglected dimension of the alliance formation phenomenon, namely how alliances were perceived by the public, in contrast to military leaders' perceptions of each other. Were the Central and Allied Powers perceived as credible alliances - monolithic blocks - right at the time? We seek to determine the degree of 'alliance integration' among pairs of countries by applying cointegration analysis based on securities prices. It is assumed that prices of countries perceived as 'integrated' should show signs of co-movement. More specifically, we focus on the Amsterdam market for foreign government bonds providing us with a neutral's view on that matter. Our analysis is based on the yields for 13 belligerent countries' representative bonds traded during the war, but also before and after. Among other things, we cannot corroborate that investors recognized two monolithic blocks simply fighting the war.
    JEL: F50 G12 H49 N14 N24
    Date: 2017
  8. By: Oded Galor; Omer Ozak; Assaf Sarid
    Abstract: This research explores the geographical origins of the coevolution of cultural and linguistic traits in the course of human history, relating the geographical roots of long-term orientation to the structure of the future tense, the agricultural determinants of gender bias to the presence of sex-based grammatical gender, and the ecological origins of hierarchical orientation to the existence of politeness distinctions. The study advances the hypothesis and establishes empirically that: (i) variations in geographical characteristics that were conducive to higher natural return to agricultural investment contributed to the existing cross-language variations in the structure of the future tense, (ii) the agricultural determinants of gender gap in agricultural productivity fostered the existence of sex-based grammatical gender, and (iii) the ecological origins of hierarchical societies triggered the emergence of politeness distinctions.
    Date: 2018
  9. By: Guimel Hernández-Garay (Department of Early Modern History, GECEM Project, Universidad Pablo de Olavide)
    Abstract: Historiography about Asian goods consumption in Early Modern Europe has advanced in the understanding of how these commodities changed consumption patterns and production in Europe. Global History indisputably has contributed with a theoretical perspective in this achievement. However, in this literature lacks more studies in the long term and in more specific geographical units. This research intends to contribute with a case study in two specific European ports: Marseille and Seville. The study is about the consumption of Chinese silk fabrics in 1680 – 1840 period and has as aim find the way like these commodities change the taste and pattern of consumption in local population preparing the receipt of Silk fabrics with Chinese taste made in Europe in an import substitution process. An innovation in the research is the use of Chinese sources and the database of GECEM project
    Keywords: silk, consumption, global history, Marseille, Seville
    JEL: N01 N63 N73
    Date: 2018–01
  10. By: Paola Azar Dufrechou (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona; Institute of Economics, Universidad de la República-Uruguay)
    Abstract: Based on the compilation of Uruguayan department-level data, this paper argues that the extent of fiscal commitment to primary education during the first half of the 20th century can be explained by the interests of tactically motivated politicians. The empirical test relies on panel data fixed effects models covering 18 Uruguayan departments over 40 years. The main findings reveal that political motivations have had a significant role in schooling provision across the territory. Throughout the period, the incumbent government seems to have used the resource allocation in primary education both to reward its core supporters and to persuade political opponents.
    Keywords: primary education, pork-barrel, economic history
    Date: 2018–01
  11. By: Biasi, Barbara; Moser, Petra
    Abstract: Copyrights for books, news, and other types of media are a critical mechanism to encourage creativity and innovation. Yet economic analyses continue to be rare, partly due to a lack of experimental variation in modern copyright laws. This paper exploits a change in copyright laws as a result of World War II to examine the effects of copyrights on science. In 1943, the US Book Republication Program (BRP) granted US publishers temporary licenses to republish the exact content of German-owned science books. Using new data on citations, we find that this program triggered a large increase in citations to German-owned science books. This increase was driven by a significant reduction in access costs: Each 10 percent decline in the price of BRP book was associated with a 43 percent increase in citations. To investigate the mechanism by which lower book prices influence science, we collect data on library holdings across the United States. We find that lower prices helped to distribute BRP books across US libraries, including less affluent institutions. Analyses of the locations of citing authors further indicate that citations increased most for locations that gained access to BRP books. Results are confirmed by two alternative measures of scientific output: new PhDs and US patents that use knowledge in BRP books.
    Keywords: Copyright; media; Science; World War II
    JEL: L82 N42 O34
    Date: 2018–01
  12. By: Campos, Nauro F.; Macchiarelli, Corrado
    Abstract: Bayoumi-Eichengreen (1993) establish a EMU core-periphery pattern using 1963-1988 data. We use same methodology, sample, window length (1989-2015), and a novel over-identifying restriction test to ask whether the EMU strengthened or weakened the core-periphery pattern. Our results suggest the latter.
    Keywords: business cycle synchronization; structural VAR; European Monetary Union; core-periphery
    JEL: E32 E63 F02
    Date: 2016–10–01
  13. By: Brodeur, Abel; Lekfuangfu, Warn N.; Zylberberg, Yanos
    Abstract: This paper analyzes the determinants behind the spatial distribution of the sex industry in Thailand. We relate the development of the sex industry to an early temporary demand shock, i.e., U.S. military presence during the Vietnam War. Comparing the surroundings of Thai military bases used by the U.S. army to districts close to unused Thai bases, we find that there are currently 5 times more commercial sex workers in districts near former U.S. bases. The development of the sex industry is also explained by a high price elasticity of supply due to female migration from regions affected by an agricultural crisis. Finally, we study a consequence induced by the large numbers of sex workers in few red-light districts: the HIV outbreak in the early 1990s
    JEL: I28 N15 O17 O18
    Date: 2017–07–01
  14. By: Abuselidze, George
    Abstract: This works covers peculiarities of formation of Georgian monetary system in XI-XII centuries and their effect on the international financial and economic relations. In this works we have researched the matters of formation of monetary policy of feudal age and their effect on development of foreign trade, methods of money formation important for the present world, which correct choice may provide increase of production volume and economic activity. Currency policy, geopolitical and geostrategic localization proved the country to turn into one of the economically strong economic states with high standard of life, developed system of socioeconomic relations approached to the international standards and democratic institutions.
    Keywords: History of Economy,Economic Development,Monetary Policy,Monetary System,Monetary History,Economic Activity,Europe: Pre-1913,Asia including Middle East
    JEL: E42 E52 N13 N15 O1
    Date: 2018
  15. By: Skovsgaard, Christian Volmar; Sharp, Paul; Lampe, Markus; Jensen, Peter Sandholt
    Abstract: We explore the role of elites for development and in particular for the spread of cooperative creameries in Denmark in the 1880s, which was a major factor behind that country's rapid economic catch-up. We demonstrate empirically that the location of early proto-modern dairies, so-called hollænderier, introduced onto traditional landed estates as part of the Holstein System of agriculture by landowning elites from the Duchies of Schleswig and Holstein in the eighteenth century, can explain the location of cooperative creameries in 1890, more than a century later, after controlling for other relevant determinants. We interpret this as evidence that areas close to estates which adopted the Holstein System witnessed a gradual spread of modern ideas from the estates to the peasantry. Moreover, we identify a causal relationship by utilizing the nature of the spread of the Holstein System around Denmark, and the distance to the first estate to introduce it, Sofiendal. These results are supported by evidence from a wealth of contemporary sources and are robust to a variety of alternative specifications.
    Keywords: Denmark; cooperatives; landowning elites; knowledge spillovers; technology; Institutions
    JEL: Q13 O13 N53
    Date: 2018–02
  16. By: André Lapidus (PHARE - Pôle d'Histoire de l'Analyse et des Représentations Economiques - UP1 - Université Panthéon-Sorbonne - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)
    Abstract: et A. Lapidus (éds), Экономическая теория в историческом развитии [La théorie économique dans une perspective historique], Moscou : Infra-M, 2016, pp. 6-30.4. Nous entretenons avec l'histoire de notre discipline des relations peu communes : nous avons cette double particularité d'assurer nous-mêmes, comme économistes, l'histoire de la pensée économique, et de maintenir un lien étroit entre cette investigation historique et la recherche théorique en économie. Bien sûr, en biologie, en physique ou en mathématiques, la recherche historique est féconde. Mais elle intéresse en priorité des historiens des sciences ou des épistémologues, plus rarement des spécialistes de la discipline concernée. Au moins à partir du XX e siècle, la division du travail semble s'être imposée dans les sciences de la nature. Rien de tel en économie. Prolongeant une tradition intellectuelle qu'illustrèrent, au XIX e siècle, Jean-Baptiste Say [1826], Auguste Blanqui [1837] ou Friedrich Engels [1843], de nombreux auteurs depuis le début du XX e siècle (Charles Gide et Charles Rist [1909], Joseph Schumpeter [1954] ou Takashi Negishi [1989]) témoignent de l'implication persistante d'économistes majeurs, qui les conduit à entreprendre non seulement des histoires thématiques ou chronologiquement restreintes, mais aussi des histoires générales de la science économique. Et ce qui, pour un regard extérieur, paraîtra le plus saisissant, est cette ambition de se saisir d'enjeux théoriques qui dépassent la seule investigation historique : une ambition qui se retrouve, de façon récurrente, depuis au moins trois décennies dans les discussions parfois contradictoires conduites par les historiens de la pensée économique eux-mêmes 1. C'est là, aussi, que se tient la principale différence qui oppose l'histoire de la pensée économique et, par exemple, l'histoire de la pensée physique ou mathématique. Dans les sciences de la nature, la contribution positive à l'élaboration de la théorie semble, aujourd'hui, largement déconnectée de la réflexion historique. Ainsi, lorsqu'A. Einstein publie, avec L.
    Date: 2016
  17. By: Jean-Luc Gaffard (OFCE Sciences-Po; Université Côte d'Azur; GREDEG CNRS; Institut Universitaire de France)
    Abstract: Au cours des années 1970 un changement majeur est apparu dans le domaine de l'analyse macroéconomique : les thèses monétaristes sous la conduite de Milton Friedman ont pris le pas sur les thèses keynésiennes issues de la synthèse néo-classique pour affirmer à la fois le rôle majeur de la politique monétaire dans la genèse et le développement des tensions inflationnistes et, de ce fait même, la nécessité de la neutraliser en imposant l'application d'une règle visant à fixer la quantité de monnaie en circulation. Ces thèses reposent sur l'idée que l'inflation est avant tout la conséquence de l'émission excessive de monnaie par une banque centrale soumise aux desiderata de gouvernements impécunieux et, conjointement, que la quantité de monnaie en circulation est déterminée de manière exogène via le mécanisme du multiplicateur de crédit. Elles participent d'un retour, pas toujours explicite, à une dichotomie entre variables réelles et monétaires qui va marquer profondément la théorie économique devenue dominante à partir de cette période et dont les conséquences vont s'avérer dommageables pour la compréhension des événements et des moyens de politique économique susceptibles d'y faire face. Or, dès le début des années 1960, un économiste français, Jacques Le Bourva, développait, dans deux articles de la Revue Economique, une approche radicalement opposée. Il y fait état du caractère endogène de la création de monnaie, signifiant que ce sont les crédits qui font les dépôts et non l'inverse. Il énonce une théorie de l'inflation qui en fait le fruit de dérives du crédit bancaire aux entreprises rendant les déséquilibres de marché récurrents sinon cumulatifs. Cette approche est d'une étonnante actualité si l'on entend répondre aux interrogations du moment et refonder l'analyse monétaire en s'inscrivant dans la filiation de Wicksell.
    Keywords: Crédit, Inflation, Monnaie
    JEL: B22 E5
    Date: 2018–02
  18. By: Samuel Bazzi (Boston University and CEPR); Martin Fiszbein (Boston University and NBER); Mesay Gebresilasse (Boston University)
    Abstract: In 1893, Frederick Jackson Turner argued that the American frontier fostered individualism. We investigate the Frontier Thesis and identify its long-run implications for culture and politics. We track the frontier throughout the 1790-1890 period and construct a county-level measure of total frontier experience (TFE). Historically, frontier locations had distinctive demographics and greater individualism. Many decades after the closing of the frontier, counties with greater TFE exhibit more pervasive individualism and opposition to redistribution. Suggestive evidence on the roots fo rugged individualism points to selective migration, the adaptive advantage of self-reliance, and opportunities for upward mobility through effort.
    Keywords: Culture, Individualism, Preferences for Redistribution, American Frontier, Persistence
    JEL: D72 H2 N31 N91 P16
    Date: 2017–11
  19. By: Vargas, Luis Hernán
    Abstract: El objetivo de este documento es revisar la historia de las reformas previsionales, desde una perspectiva analítica universalista, que han ocurrido en Chile desde 1924 hasta el debate que está aconteciendo en el país durante el primer semestre de 2017. De este modo, se hace una revisión de los debates políticos y técnicos que fundaron la Caja de Seguro Obrero (1924), su modificación por la creación del Servicio de Seguro Social y las variadas Cajas Previsionales que entregaron pensiones basadas en beneficios definidos con un financiamiento tripartito de reparto (1952). Posteriormente, se examina la reforma previsional de 1980 que suprimió el antiguo sistema de reparto y comenzó con una nueva institucionalidad e industria encargada de administrar las cuentas de capitalización individual. Finalmente, el documento hace un recorrido de las modificaciones coyunturales de los primeros gobiernos democráticos y de la Reforma Previsional que creó el Sistema de Pensiones Solidarias, promulgada por la Presidenta Bachelet el 2008. Finalmente, a modo de epílogo, se presentan los principales ejes del debate previsional y la significancia del anuncio presidencial.
    Date: 2018–01–23
  20. By: Antonio Ciccone
    Abstract: A new dataset by Bazzi and Blattman (2014) allows examining the effects of international commodity prices on the risk of civil war outbreak with more comprehensive data. I find that international commodity price downturns sparked civil wars in Sub-Saharan Africa. Another finding with the new dataset is that commodity price downturns also sparked civil wars beyond Sub-Saharan Africa since 1980. Effects are sizable relative to the baseline risk of civil war outbreak. My conclusions contrast with those of Bazzi and Blattman, who argue that the new dataset rejects that commodity price downturns cause civil wars. The reason is that I calculate commodity price shocks using time-invariant (fixed) export shares as commodity weights. Bazzi and Blattman also calculate commodity price shocks using export shares as commodity weights but but the exports shares they use are time-varying. Using time-invariant export shares as commodity weights ensures that time variation in price shocks solely re ects changes in international commodity prices. Price shocks based on time-varying export shares partly re ect (possibly endogenous) changes in the quantity and variety of countries' exports, which jeopardizes causal estimation.
    Keywords: civil wars, commodity price downturns
    JEL: E3 O1 Q1 Q10
    Date: 2018–01
  21. By: Florian Dorn; Clemens Fuest; Niklas Potrafke
    Abstract: This paper re-examines the link between globalization and income inequality. We use data for 140 countries over the period 1970–2014 and employ an IV approach to deal with the endogeneity of globalization measures. We find that the link between globalization and income inequality differs across different groups of countries. There is a robust positive relationship between globalization and inequality in the transition countries including China and most countries of Middle and Eastern Europe. In the sample of the most advanced economies, neither OLS nor 2SLS results show any significant positive relationship between globalization and inequality. We conclude that institutions providing income insurance and education, which characterize most advanced economies but are less developed in transition economies, may have moderated effects of globalization on income inequality.
    Keywords: Globalization, income inequality, redistribution, instrumental variable estimation, panel econometrics, development levels, transition economies, China
    JEL: D31 D63 F02 C26 H11 H20
    Date: 2018
  22. By: Faber, Malte; Petersen, Thomas
    Abstract: Since the beginning of the finance crisis, the notion of capitalism and the adjective capitalistic are more and more employed in public discourse without making an attempt to define it. In contrast, the concept of market economy is less used. We try in this paper to differentiate both concepts by going back to the approaches by Karl Marx (1818-1883) and Fernand Braudel (1902-1985). Marx does not use the term capitalism but only capitalistic production, while Braudel argues on the basis of a wealth of empirical evidence that one has to differentiate between capitalism and market economy, because he sees a contrast between them. For this reason, he has different view of a capitalistic economy as Marx has. JEL classification: B14, B24, P10, P16, P5
    Keywords: capitalism, capitalistic production, market economy, political economy
    Date: 2018–02–14
  23. By: Wixforth, Harald
    JEL: G21 N23 N24 N93 N94
    Date: 2017
  24. By: Schönhärl, Korinna
    JEL: F34 N13 N14 N23 N24 O52
    Date: 2017

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