nep-his New Economics Papers
on Business, Economic and Financial History
Issue of 2022‒12‒12
38 papers chosen by

  1. Adolf Weber statt Freiburger Schule? Die theoretischen Ansichten über Geldpolitik in der frühen Bundesbank am Beispiel von Bernhard Benning By Greitens, Jan
  2. The Golden City on the Edge: Economic Geography and Jihad over Centuries By Masahiro Kubo; Shunsuke Tsuda
  3. Incomes and Income Inequality in Stockholm, 1870–1970: Evidence from Micro Data By Bengtsson, Erik; Molinder, Jakob
  4. Horsemen of the apocalypse: The Mongol Empire and the great divergence By Rafael Torres Gaviria
  5. The Orthodox Church : Ecclesiastical Battle Of Montenegrins With The Serbian Orthodox Church By Tulun, Teoman Ertuğrul
  6. Persecution, Pogroms and Genocide : A Conceptual Framework and New Evidence By Becker, Sascha O; Mukand, Sharun; Yotzov, Ivan
  7. 18th and 19th centuries mortality differentials among free and enslaved population, Madre de Deus de Porto Alegre, Brazil By Scott, Dario; Lima, Everton E. C. Dr.
  8. The Gift of a Lifetime: The Hospital, Modern Medicine, and Mortality By Hollingsworth, Alex; Thomasson, Melissa A.; Karbownik, Krzysztof; Wray, Anthony
  9. TIME AND FILM PROGRAMMING IN MOSCOW CINEMA THEATERS, 1946-1955 By Kristina A. Tanis; Anastasiia A. Balykova
  10. A Healthy Marriage? Marital Status and Adult Mortality in Landskrona, Sweden, 1905-2015 By van Dijk, Ingrid K; Dribe, Martin
  11. Privatizations Spark Socialist Backlash: Evidence from East Germany's Transformation By Anselm Hager; Moritz Hennicke; Werner Krause; Lukas Mergele
  12. Historical Overview of Haitian Refugee Crisis By Maker, Paul
  13. Design‐based research in empirical microeconomics By Card, David
  14. Causality in econometrics: methods in conversation with practice By Imbens, Guido
  15. Between victory and statehood: Armed violence in post-war Abkhazia By Anastasia Shesterinina
  16. Financing UK democracy : A stocktake of 20 years of political donations By Draca, Mirko; Green, Colin; Homroy, Swarnodeep
  17. Empirical strategies in economics: Illuminating the path from cause to effect By Angrist, Joshua
  18. Buying off the revolution: Evidence from the colombian national peasant movement, 1957-1985 By María del Pilar López-Uribe
  19. The Global South Debt Revolution That Wasn’t By Quentin Deforge; Benjamin Lemoine
  20. The her in inheritance: how marriage matching has always mattered, Quebec 1800-1970 By Matthew Curtis
  21. A dissonant violin in the international orchestra? Discount rate policy in Italy (1894-1913) By Paolo Di Martino; Fabio C. Bagliano
  22. Richard A. Posner (1939-) By Jean-Baptiste Fleury; Alain Marciano
  23. The FOMC's Committee on the Directive: Behind Volcker's New Operating Procedures By Nicholas A. Burk; David H. Small
  24. Consumer sovereignty in the digital society By Alexandre Chirat
  25. The Role of Workers Militia in the Ethio-Somalia War,1977-78 By Bezabih, Adane K.
  27. Reestimating Brazil's GDP growth from 1900 to 1980 By Edmar L. Bacha; Guilherme A. Tombolo; Flavio R. Versiani
  28. Financial Intermediation and the Economys By Committee, Nobel Prize
  29. The curious journey of the 50 y-o sage returning back to his 60th birthday in the past By Mindsponge, AISDL
  30. Trust We Lost: The Impact of the Treuhand Experience on Political Alienation in East Germany By Kim Leonie Kellermann
  31. Cambodian Refugees By Kogure, Katsuo; Kubo, Masahiro
  32. Does military spending affect inequality in South Africa? A revisit By Hinaunye Eita; Mduduzi Biyase; Thomas Udimal; Talent Zwane
  33. NAFTA and drug-related violence in Mexico By Hidalgo, Eduardo; Hornung, Erik; Selaya, Pablo
  34. A Note on the Making of the Constitutional Debt Limit in Poland By Kantorowicz, Jaroslaw
  35. Entry and Competition of Retail Pharmacies: A Case Study of OTC Drugs Sales and Ownership Deregulation By Matúš Bilka; António Portugal Duarte; Martin Lábaj
  37. Industrial Development And Government Protection In Brazil: Issues And Controversies, Circa 1840–1930 By Flávio Rabelo Versiani
  38. L'écosystème alternatif du Pays Basque français: histoire et structuration By Julien Milanesi; Aude Sturma; Geoffrey Carrere

  1. By: Greitens, Jan
    Abstract: This paper analyses the early years of the history of the Bundesbank from a history of economic thought-perspective. The study uses the example of Bernhard Benning, who was heading the Economics Department of the Reichs-Kredit-Gesellschaft, one major banks owned by the German Reich during the National Socialist era. After the war Benning became a member of the Executive Board of the Deutsche Bundesbank for 22 years. Benning was a student of Adolf Weber and was strongly influenced by the latter‘s opportunistic, conservative, and pro-business liberalism, rather than by ordoliberal ideas. Benning drew his legitimacy for his role in the early Federal Republic from his public criticism of war financing and from warning against inflation in the DonnerBenning Debate since 1942/43. In this tradition, the early Bundesbank was Weberian rather than ordoliberal, so fixed exchange rates were favored, and a strong business and investment perspective was adopted.
    Keywords: Bundesbank,Reichs-Kredit-Gesellschaft,Adolf Weber,Ordoliberalism,National Socialism,Money,Inflation
    JEL: B26 B31 E58 N14 N24
    Date: 2022
  2. By: Masahiro Kubo; Shunsuke Tsuda
    Abstract: This paper uncovers the evolution of cities and Islamist insurgencies, so called jihad, in the process of the reversal of fortune over the centuries. In West Africa, water access in ancient periods predicts the locations of the core cities of inland trade routes -- the trans-Saharan caravan routes -- founded up to the 1800s, when historical Islamic states played significant economic roles before European colonization. In contrast, ancient water access does not have a persistent influence on contemporary city formation and economic activities. After European colonization and the invention of modern trading technologies, along with the constant shrinking of water sources, landlocked pre-colonial core cities contracted or became extinct. Employing an instrumental variable strategy, we show that these deserted locations have today been replaced by battlefields for jihadist organizations. We argue that the power relations between Islamic states and the European military during the 19th century colonial era shaped the persistence of jihadist ideology as a legacy of colonization. Investigations into religious ideology related to jihadism, using individual-level surveys from Muslims, support this mechanism. Moreover, the concentration of jihadist violence in "past-core-and-present-periphery" areas in West Africa is consistent with a global-scale phenomenon. Finally, spillovers of violent events beyond these stylized locations are partly explained by organizational heterogeneity among competing factions (Al Qaeda and the Islamic State) over time.
    Date: 2022–11
  3. By: Bengtsson, Erik (Department of Economic History, Lund University); Molinder, Jakob (Department of Economic History, Uppsala University)
    Abstract: This paper builds on a new dataset from the population register, comprising 38,022 randomly sampled Stockholm residents. The register was also the income tax list, with information about people’s incomes of various types, age, and household composition, in the years 1870, 1880, 1900, 1910, 1920, 1940 and 1950. We use this dataset, along with the census of 1930, which uniquely included income information, and a Statistics Sweden random sample for 1960 and 1970, to calculate the growth and distribution of incomes in Stockholm over a hundred years. The Gini coefficient between 1870 and 1920 was high for both individuals and households, around 60-70 and with no change statistically significant at the 95 percent level. After 1920 inequality fell quite steadily for every benchmark year. The top decile’s share of incomes (among households) fell from 50 percent or higher in 1870–1920 to less than 40 percent in 1930 and around 30 percent in 1950. The equalization was driven not only by gains for middle income groups, but also by gains for the bottom half of the distribution. Women constituted the larger share of the bottom half of income earners. Domestic servants, the single largest group in the city, earned very little but reduced their share of working-class jobs from 45 percent in 1870 to 10 percent in 1950. Generally, upgrading jobs was an important way of reducing income inequality. Decomposing the inequality decline from 1920 to 1950 between age, gender, class and sector of occupation shows that class was by far the largest determinant of inequality and of its decline.
    Keywords: inequality; incomes; income distribution; Stockholm; gender gap; tax data
    JEL: D31 N33 N34
    Date: 2022–09–01
  4. By: Rafael Torres Gaviria
    Abstract: Why did the Industrial Revolution take place in Europe, but did not in India or China? This paper uses a novel dataset and builds a general model to study the economic transformations of the Late Middle Ages that led to the Industrial Revolution and the Great Divergence. Through modern econometric techniques, I exploit the Mongol Invasions of the 13th century to account for the role of violence, commerce, and technology in the structural transformations of Eurasia from the Middle Ages into the Modern Era. I show theoretically and verify empirically how the large-scale violence and new trade opportunities brought by the Mongol Empire allowed Western Europe to catch up and surpass the levels of income and technical capacity of the great Asian civilizations. Furthermore, I found that the impact of the Mongol Conquests persisted and deepened at least into the 19th century. The Mongol Invasions of the 13th century can be regarded as a fundamental cause of the Rise of Europe and the Decline of Asia. Moreover, the rise and fall of the Mongol Empire is a key event in understanding the transition from a Malthusian world into a world of sustained economic growth and inter-regional inequality.
    Keywords: Mongol Empire, Great Divergence, Industrial Revolution, Growth, Trade, Violence, Technology transfer
    JEL: C02 N3 N4 N7 O14 O33 O47
    Date: 2022–11–08
  5. By: Tulun, Teoman Ertuğrul
    Abstract: Between 1879 and 1920, the Serbian Orthodox community was governed by at least six ecclesiastical jurisdictions (Carlowitz, Montenegro, Dalmatia and Cattaro, Belgrade, Bosnia and Herzegovina, and Southern Serbia, the latter two dependent on Patriarchate in İstanbul). Serbia participated in the First World War on the side of the victors, which prepared the ground for the advent of the Yugoslav Kingdom of Serbs, Croats, and Slovenes. The need for ecclesiastical integration led to another appeal in 1919 to Patriarchate in İstanbul, whereby consent was requested to integrate the six jurisdictions into one united patriarchate of all Serbs. This summary of the period until the foundation of modern Montenegro also briefly reflects the history of the Montenegrin Orthodox Church (MOC). Montenegro was an independent state until the end of the First World War, and Orthodoxy was a state religion. The historical development of the Orthodox Church in the Balkans, its strong role in the internal/international politics of the countries and formation of the national identity, and its dominance in the state structures are unique examples of explaining the concept of theopolitics. Parallel to the formation of national identity, the fact that religious identity dominates and directs the rulers and leaders of the state comes to light as one of the main features of orthodoxy.
    Date: 2022–08–31
  6. By: Becker, Sascha O (Monash University and University of Warwick, CAGE, CEH@ANU, CEPR, CESifo, CReAM, ifo, IZA, ROA, and SoDaLabs); Mukand, Sharun (University of Warwick and CAGE.); Yotzov, Ivan (University of Warwick and CAGE)
    Abstract: Persecution, pogroms, and genocide have plagued humanity for centuries, costing millions of lives and haunting survivors. Economists and economic historians have recently made new contributions to the understanding of these phenomena. We provide a novel conceptual framework which highlights the inter-relationship between the intensity of persecution and migration patterns across dozens of historical episodes. Using this framework as a lens, we survey the growing literature on the causes and consequences of persecution, pogroms, and genocide. Finally, we discuss gaps in the literature and take several tentative steps towards explaining the differences in survival rates of European Jews in the 20th century JEL Codes: D74 ; F22 ; F51 ; N4 ; O15 ; R23
    Keywords: Genocide ; Persecution ; Migration ; Immigration restrictions ; Exit or Voice
    Date: 2022
  7. By: Scott, Dario; Lima, Everton E. C. Dr. (Unicamp)
    Abstract: Combine data from parish records and formal demographic methods, we studied the historical changes in the mortality and morbidity profiles of the free and enslaved population living in the parish of Madre de Deus in Porto Alegre/Brazil, during the 18th and 19th centuries (1772-1872). This is a period that we saw many mortality crises, high mortality rates and various epidemics that affected the parish. Our findings indicated considerable differences in terms of death records coverage between the two compared groups, with the level of mortality coverage varying depending on the analyzed period. Men slave in general presented better death counts registers if compared to women with the same legal status. In terms of mortality levels, during this period, the life expectancy of slave population was 5.8-6.4 years lower if compared to non-slave groups.
    Date: 2022–10–01
  8. By: Hollingsworth, Alex (Indiana University); Thomasson, Melissa A. (Miami University); Karbownik, Krzysztof (Emory University); Wray, Anthony (University of Southern Denmark)
    Abstract: The past century witnessed a dramatic improvement in public health, the rise of modern medicine, and the transformation of the hospital from a fringe institution to one essential to the practice of medicine. Despite the central role of medicine in contemporary society, little is known about how hospitals and modern medicine contributed to this health transition. In this paper, we explore how access to the hospital and modern medicine affects mortality. We do so by leveraging a combination of novel data and a unique quasi- experiment: a large-scale hospital modernization program introduced by The Duke Endowment in the early twentieth century. The Endowment helped communities build and expand hospitals, obtain state-of-the-art medical technology, attract qualified medical personnel, and refine management practices. We find that access to a Duke-supported hospital reduced infant mortality by 10%, saving one life for every $20,000 (2017 dollars) spent. Effects were larger for Black infants (16%) than for White infants (7%), implying a reduction in the Black-White infant mortality gap by one-third. We show that the effect of Duke support persisted into later life with a 9% reduction in mortality between the ages of 56 and 65. We further provide evidence on the mechanisms that enabled these effects, finding that Endowment-supported hospitals attracted higher-quality physicians and were better able to take advantage of new medical innovations.
    Keywords: modern medicine, hospitals, mortality, infant health, hospital funding, physician labor supply, medical innovation, health care complementarities, charitable giving
    JEL: I14 J13 N32
    Date: 2022–11
  9. By: Kristina A. Tanis (National Research University Higher School of Economics); Anastasiia A. Balykova (National Research University Higher School of Economics)
    Abstract: This paper is devoted to the Soviet film market during the first half of the twentieth century. In particular, it consist of introductory text and database on film programming in Moscow cinema theaters between 1946 and 1955. Based on the intersection of two methodological approaches, anthropology of time and new cinema history, this paper traces the multifunctionality and heterogeneity of Soviet time on the example of contracting adopted in the USSR between distributors and different actors of cinema networks. While the database on film programming of Moscow cinema theaters contributes to the issue of cinema audience studies and the known dominant models of film distribution and exhibition, placing the Soviet case into international context
    Keywords: big data, film distribution and exhibition, temporal turn, new cinema history, film programming, USSR
    JEL: Z11
    Date: 2022
  10. By: van Dijk, Ingrid K; Dribe, Martin
    Abstract: Marriage is protective of survival and contributes to healthy ageing, whereas both singlehood and widowhood are related to increased mortality and poor health. The long-term change in the mortality differentials by marital status, and its interaction with gender and social class, has not been systematically addressed in the literature. In this study, we explore the marriage premium for survival and widowhood, bereavement and divorce penalties for survival over time using an established database for Southern Sweden (SEDD) between 1905 and 2015. We show that married men have and had a survival premium, while especially widowers have increased mortality, most strongly directly after bereavement but also in the longer run. It is remarkable that there is such stability in the survival advantage of married men, despite massive social, economic and demographic changes. Mortality differentials by marital status are smaller for women and absent for much of the twentieth century. Over time, it appears that there has been convergence in the patterns of mortality by marital status between men and women. The divergence in mortality by marital status for women started in the blue-collar class. White-collar and blue-collar men were similarly affected by marital status. Overall, we conclude that marital status is important for longevity, and has been so for the entire twentieth century for men, and increasingly also for women.
    Date: 2022–07–27
  11. By: Anselm Hager; Moritz Hennicke; Werner Krause; Lukas Mergele
    Abstract: The fall of the Berlin Wall in 1989 brought the end of socialism, yet pro-socialist sentiment regained momentum surprisingly quickly across Eastern Europe. Why did voters move back to an ideology that was associated with unfree elections and lackluster economic performance? This paper points to the rushed privatization of East European economies as one plausible driver of the revival of socialist voting. Using micro-level data from East Germany, we show that firm privatizations led to a marked resurgence of the former Socialist Unity Party. We argue that this effect is likely due to perceived inequity: Socialist voting thrived whenever firms were sold to Western elites, which East Germans took as a sign that capitalism was not meritocratic.
    Keywords: privatization, socialist backlash, structural change, democratization
    Date: 2022
  12. By: Maker, Paul
    Abstract: Historical Overview of Haitian Refugee Crisis
    Date: 2022–07–25
  13. By: Card, David (University of California, Berkeley)
    Abstract: Youtube video of the Nobel prize lecture
    Keywords: Labor markets; natural experiments;
    JEL: J00
    Date: 2021–12
  14. By: Imbens, Guido (Stanford University)
    Abstract: Youtube video of the Nobel Prize lecture
    Keywords: Labor markets; natural experiments;
    JEL: J00
    Date: 2021–12
  15. By: Anastasia Shesterinina
    Abstract: What accounts for armed violence in the aftermath of civil war? Efforts to develop a comprehensive framework to understand this phenomenon have been made in the literature. Yet existing studies have in general looked at distinct pre-war, wartime, and post-war sources of violence in the aftermath of war. This paper focuses on organized political violence after war and argues that such violence is shaped by a combination of pre-war, wartime, and post-war dynamics.
    Keywords: Violence, Political violence, Abkhazia, Civil conflict, Armed conflict
    Date: 2022
  16. By: Draca, Mirko (University of Warwick, Department of Economics & CAGE); Green, Colin (Norwegian University of Science and Technology, Department of Economics & IZA); Homroy, Swarnodeep (University of Groningen, Department of Economics, Econometrics and Finance)
    Abstract: Political donations in the UK have been subject to comprehensive disclosure since 2001. We study the data produced as part of this disclosure policy to evaluate the role of private and public political finance over time. Total political donations have grown by 250% since 2001, reaching over £100 million in real terms for the first time in 2019. This increase has been driven by donations from private individuals, who now account for approximately 60% of donations in election years compared to 40-50% up to the late 2010s. Furthermore, ‘superdonors’ (those contributing more than £100,000) have been a prominent driver of the rise, increasing their own share from approximately 36% in 2017 to 46% in 2019. We also show that private donations to Labour fell sharply in the final stages of Jeremy Corbyn’s leadership. Overall, these trends have benefited the Conservative Party, leading to an historic resource gap between the two main parties emerging circa 2019. We calculate that the ‘resource gap’ between parties now stands at approximately £27 million compared to an historic average of £8-10 million (even when taking account of publicly-funded ‘Short’ money provided to the Opposition).
    Keywords: Political Connections ; Political Donations JEL Codes: D72
  17. By: Angrist, Joshua (MIT)
    Abstract: Youtube video of the Nobel prize lecture
    Keywords: Labor markets; natural experiments;
    JEL: J00
    Date: 2021–12
  18. By: María del Pilar López-Uribe
    Abstract: This paper shows that franchise extension is not enough for commitment to redistribution and that in the absence of de facto empowerment, the threat of revolution is intact. In particular, the paper studies the relationship between a democratic reform that extends the political rights of a threatening group and redistribution during periods of revolutionary threat. Far from causing an increase in broad redistribution (e.g. social spending), I show that democratic reform -the state organization of a social movement that extends political rights- can be used to identify rebel leaders and provide private goods to them, in return for preventing social unrest and demobilizing their supporters. I study the context of the organization by the state of the most important social movement in Colombian history -the National Peasant Movement (ANUC)- over almost three decades (1957-1985), in which the threat of a Communist Revolution was perennial and throughout which the government gave ANUC direct political participation at the local level in the executive branch and economic support. Using three newly digitized data sets of Colombian municipalities, I find that rather than leading to broad redistribution to the benefit of the peasantry, the reform instead led to an increase in targeted redistribution in terms of public jobs and lands. In particular, by matching the names of the peasant leaders to the beneficiaries of the land reform, evidence suggests that peasant leaders disproportionately benefited from land reform, especially in municipalities where the communist threat was higher. Finally, I find suggestive evidence that buying off the rebel leaders was an effective counter-revolutionary strategy as it led to fewer revolutionary activities after the support of ANUC was terminated (1972-1985).
    Keywords: Threat of Revolution, Democratic Reform, Redistribution, Social Movements, Political Empowerment, Conflict.
    JEL: D70 H76 H41 N46
    Date: 2022–11–15
  19. By: Quentin Deforge (CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Benjamin Lemoine (IRISSO - Institut de Recherche Interdisciplinaire en Sciences Sociales - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: In this article, we analyse how international crises and conflicts over sovereign debt have transformed the agenda of the United Nations Conference on Trade and Development (UNCTAD), the Geneva-based organization founded in 1964 and whose history is closely linked to the G77 group of developing countries. We show how UNCTAD's projects for structural reform of the international financial architecture were contested and ultimately rejected in the 1970s. Such defeats were a blow to the transformative goals that UNCTAD had initially set to achieve. In the 1980s, UNCTAD gradually became a technical agency and its mandate restricted to providing expert assistance and support to developing countries during their negotiations with the Paris Club. Meanwhile, the mandate to produce expertise at the macro level (the so-called ‘upstream' area), was effectively transferred to the IMF and World Bank. With the development of the Debt Management Financial Analysis System (DMFAS), UNCTAD went from promoting systemic change in international financial architecture to sponsoring the micro-management of domestic policies as remedy to over-indebtedness. But we also show that UNCTAD did not always restrict itself to doing such ‘downstream' work, i.e., improving debt issuing capacities and technologies of developing countries. While UNCTAD's recent project on fair principles of lending and borrowing principles conforms to what's expected from the group of advanced countries, another project involving the creation of an international mechanism of sovereign debt restructuring functioned as a disturbance to this fragile downstream–upstream division of labour between international organizations.
    Date: 2021
  20. By: Matthew Curtis
    Abstract: When did marriage become strongly assortative? Is it a recent development, aconsequence of increased female employment and a cause of rising inequality? A longrun perspective is necessary to answer this question. This paper uses a uniquely suitabledatabase from Quebec 1800{1970 to provide such a perspective. First, it develops anovel method which reveals that marriage was highly assortative as far back as the earlynineteenth century. Next, it shows this matching depended on the individual humancapital of women, not just on family backgrounds. Finally, it shows that mothers hada causal impact on child outcomes independently from fathers. Thus, despite deeplyconservative gender norms, marriage matching
    Keywords: Assortative mating; marriage matching; sorting; human captial; intergenerational mobility
    JEL: J12 J62 N31 N32
    Date: 2022–11
  21. By: Paolo Di Martino; Fabio C. Bagliano
    Abstract: Based on a new series and applying econometric techniques, this paper investigates the discount rate policy implemented by the main Italian bank of issue of the time, the Banca d’Italia. We focus on two interrelated aspects of the problem. Firstly, anchoring our analysis to the Bank’s annual reports, we enquiry into the general determinants of its discount rate variations. Secondly, we study the reaction of the Italian rate to exogenous changes in leading international official rates. We show that discount rate variations responded to short-term fluctuations of official rates in the UK and France but, simultaneously, to deviations from long-term equilibrium relations involving two pairs of variables. On the one hand, a relationship between the Italian discount rate and the French open market rate; on the other hand, a link between the Bank’s reserve ratio and its exposure to the national credit market. We also show that reactions to variations in foreign official rates were of a very limited magnitude. This “sterilisation†policy came with little repercussions in terms of exchange rate fluctuations or loss of international reserves, somehow in contrast with the results of the recent literature.
    Keywords: Bank of Italy, discount rate policy, international gold standard, sterilization
    Date: 2022
  22. By: Jean-Baptiste Fleury (HDEA - Histoire et Dynamique des Espaces Anglophones - SU - Sorbonne Université); Alain Marciano (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier)
    Abstract: Richard A. Posner was the most important actor in the transformation from "law and economics" to an "economic analysis of law". Posner applied Chicago price theory to the analysis of law and legal rules. He not only contributed to the field but also structured it. This is what this chapters shows. We also show that Posner's work illustrates the Chicagoan dimension of his economic analysis of law. That Posner, especially later in his career, introduced some elements that might seem to be at odds with Chicago economicspragmatism, notably-or that he claimed having become a Keynesian does not change much to the claim that it was Posner who crafted Chicago's economic analysis of law.
    Keywords: Posner,Chicago,law and economics,economic analysis of law,wealth maximization,efficiency,common law,judges,Kaldor-Hicks,justice
    Date: 2022
  23. By: Nicholas A. Burk; David H. Small
    Abstract: On October 6, 1979, Chairman Volcker announced that the Federal Reserve was embarking on a new, forceful, and ultimately successful campaign to lower the rampant inflation of that time. At the center of this campaign were new operating procedures for conducting monetary policy—procedures that focused daily open market operations on controlling the quantity of monetary reserves and the quantity of nonborrowed reserves in particular. This was a dramatic shift from the prior focus on targeting the federal funds rate. These new operating procedures were preceded by well over a decade of work that was directed by the Federal Open Market Committee (FOMC) and was carried out by its Committee on the Directive (COD). Prior to 1979, the COD had recommended operating procedures based on controlling nonborrowed reserves but subsequently rejected them. It was the Volcker Fed that accepted and implemented these reserves-based operating procedures, and it did so with the goal of targeting the monetary aggregates to have restrained and stable growth rates.
    Keywords: Federal Reserve; Great inflation; Monetary policy; Volcker
    JEL: E52 E58
    Date: 2022–09–30
  24. By: Alexandre Chirat
    Abstract: Do uses of digital technologies in the framework of early 21st century capitalism promote or reduce the expression of consumer sovereignty ? This paper addresses this question through the lens of John Kenneth Galbraith’s theory of consumption. First, I recall the main stakes of his theory. Second, I highlight the main differences between traditional advertising and online behavioral advertising. Third, I explain how online behavioral advertising strengthens the “dependence effect” and “revised sequence” depicted by Galbraith within the context of the industrial society. Fourth, I discuss some normative challenges raised by digital platform corporations to individual sovereignty. Lastly, I argue that platform capitalism appear as a mature form of the “new industrial state”, one important difference being that digital platform corporations, rather than traditional industrial corporations, largely preside over the allocation of resources in the economy.
    Keywords: Consumer sovereignty – online behavioral advertising - digital economics – platform capitalism
    JEL: B2 P1 M3 L2
    Date: 2022
  25. By: Bezabih, Adane K.
    Abstract: The Somali irredentist aimed at establishing Greater Somalia by conquering all the Somali speaking areas in East Africa. In doing so, Somali invaded Ethiopia in 1964 and 1977/78 respectively. During the two invasions, the Ethiopian workers led by the Confederation of Ethiopian Labour Unions (CELU) and the All Ethiopian Trade Unions (AETU) defended the sovereignty of their country. More importantly, in the second Ethio-Somalia war, a number of Ethiopian workers were organized under two militia Brigades and three mixed Brigades and defended their country. This paper therefore attempts to reconstruct the role of the Ethiopian workers in defending the sovereignty of Ethiopia in the Ethio-Somalia war. Since this is a qualitative study, data for the study was collected through document analysis and in-depth interviews. The collected data were analyzed thematically. The findings show that the Ethiopian workers participated in the second Ethio-Somalia war not only as drivers and technicians of military convoys but also as militia combatants and defended their motherland from irredentists.
    Keywords: Militia, Brigade, Irredentism, Workers, Internationalism
    JEL: J52
    Date: 2022–11–04
  26. By: Bowbrick, Peter
    Abstract: Much of economic literature is based on theory or evidence that has been refuted, and economists may spend years of their lives using long-discredited economics. It is, however, virtually impossible to find these refutations. It is proposed to set up a database of refutations, so that economists can check that the economics they use and the papers they cite, have not been refuted. This will also discourage economists from publishing papers that they know to be bad or carelessly written.
    Keywords: Database; Refutations
    JEL: A1 A10 A11 A14
    Date: 2022–10–22
  27. By: Edmar L. Bacha; Guilherme A. Tombolo; Flavio R. Versiani
    Date: 2022–08
  28. By: Committee, Nobel Prize (Nobel Prize Committee)
    Abstract: The 2022 Sveriges Riksbank Prize in Economic Sciences in Honor of Alfred Nobel rewards foundational research on the role of banks in the economy, particularly during financial crises. Financial intermediaries such as traditional banks and other bank-like institutions facilitate loans between lenders and borrowers, and thereby play a key role for the allocation of capital. They enable households to get a mortgage to buy a home, farms to get a loan to buy a harvesting machine, and firms to get a loan to build a new factory.
    Keywords: Banking; financial crisis
    JEL: E53 G21 G28
    Date: 2022–10–10
  29. By: Mindsponge, AISDL
    Abstract: The year is 2032, and time has long lost its meaning from the old world. When the Infinite Genesis of Minds happened somewhere back in the late 2020s, humanity was given the knowledge and power much more than most could handle. A few who understood the ways of life continued onto marvelous journeys through the universe. Others who failed to realize the working of nature were fated to wander in the limbo of their own minds. When humans finally got a glimpse of how to make everything possible, many fell into the horror of that very notion.
    Date: 2022–09–10
  30. By: Kim Leonie Kellermann
    Abstract: Do politically administered mass layoffs undermine trust and political interest? During the German reunification, formerly state-owned socialist firms in East Germany were privatized by the Treuhand, which came at the cost of massive job losses and public protest. I demonstrate that these activities had a detrimental effect on attitudes and political behavior of the affected individuals. Using survey data from the German Socio-economic Panel and election results, I find that East Germans who lost their jobs exhibit significantly lower trust levels, lower political interest and a lower identification with mainstream democratic parties, even up to 30 years after reunification. I corroborate the causality of the results using fixed-effects estimations and a placebo analysis, which fails to explain political disenchantment by reasons other than the Treuhand experience. I interpret the findings as the persistent, negative effect of perceived political mismanagement during a crucial phase of economic transition on long-run political identification.
    Keywords: East Germany, trust, political alienation, privatization, radical voting
    JEL: D72 E24 L33
    Date: 2022
  31. By: Kogure, Katsuo; Kubo, Masahiro
    Abstract: This paper examines the consequences of forced displacement for Cambodian refugees during the Cambodian conflict (1978-1991). Using complete count 1998 Census microdata, we focus on the two major groups of returnees, namely those from the neighboring countries of Thailand and Vietnam, which were under the control of different great powers, respectively Western and Eastern, during the Cold War. The former stayed in refugee camps with humanitarian assistance prior to repatriation and the latter did not. Consistent with the availability of humanitarian assistance, our analyses reveal that the returnees from Thailand attained higher levels of education - while those from Vietnam, by contrast, attained lower levels of education - than stayers. On the other hand, the two groups both experienced worse labor market outcomes, with employment shifts from the primary sector to the immature tertiary sector. Such adverse displacement impacts are relatively stronger for later returnees. We provide suggestive evidence that adverse displacement impacts can be attributed to congested labor markets resulting from limited access to available agricultural land, exacerbated by the high contamination of landmines and UXOs during the conflict. Our results demonstrate that forced displacement due to conflict in a developing country can be a potential source of future misallocation.
    Keywords: conflict, forced displacement, refugees, repatriation, Cambodia
    JEL: O15 J24 D74 N35
    Date: 2022–11
  32. By: Hinaunye Eita (College of Business and Economics, University of Johannesburg); Mduduzi Biyase (College of Business and Economics, University of Johannesburg); Thomas Udimal (Southwest Forestry University); Talent Zwane (College of Business and Economics, University of Johannesburg)
    Abstract: Previous investigations on military spending-inequality nexus (in South Africa) were underpinned by the assumption that military spending and inequality behaves in symmetric fashion and employed linear autoregressive distributed lag (ARDL) model in their analysis. This paper extends and improve upon prior studies by investigating the short-run and long-run asymmetric effect of military spending on South Africa's income inequality. Using annual data from 1980 to 2017 and asymmetric autoregressive distributed lag (NARDL) model by Shin et al. (2014), our paper revisits the military spending-income inequality nexus. We find evidence to suggest an asymmetric association between military and income inequality - income inequality responds differently to positive and negative shocks of military spending in the long- and short-run. Based on these findings, we are inclined to conclude that the NARDL model delivers more accurate estimates and provides nuanced insights that the traditional linear ARDL.
    Keywords: inequality; military spending; ARD; NARDL
    JEL: C22 H56
    Date: 2022
  33. By: Hidalgo, Eduardo (University of Cologne,); Hornung, Erik (University of Cologne,); Selaya, Pablo (University of Copenhagen)
    Abstract: We study how NAFTA changed the geography of violence in Mexico. We propose that this open border policy increased traffcking profits of Mexican cartels, resulting in violent competition among them. We test this hypothesis by comparing changes in drug-related homicides after NAFTA’s introduction in 1994 across municipalities with and without drug-traffcking routes. Routes are predicted least cost paths connecting municipalities with a recent history of detected drug traffcking with U.S. land ports of entry. On these routes, homicides increase by 2.3 per 100,000 inhabitants, which is equivalent to 27% of the pre-NAFTA mean. These results cannot be explained by changes in worker’s opportunity costs of using violence resulting from the trade shock. JEL Codes: K42 ; F14 ; D74 ; O54
    Keywords: Violence ; NAFTA ; Free Trade ; Mexico ; Illegal Drug Traffcking ; Conflict
    Date: 2022
  34. By: Kantorowicz, Jaroslaw
    Abstract: This note provides a short description of how the 60% of GDP debt limit came about and was enshrined in the 1997 Constitution of the Republic of Poland.
    Date: 2022–08–04
  35. By: Matúš Bilka (University of Economics in Bratislava, Faculty of Economics, Department of National Economy); António Portugal Duarte (Univ of Coimbra, CeBER, Faculty of Economics); Martin Lábaj (University of Economics in Bratislava, Faculty of Economics, Department of National Economy)
    Abstract: This paper provides new empirical evidence on entry and competition in the Portuguese market of retail pharmacies after its deregulation in 2004. We estimate the market-size thresholds required for pharmacies to enter the market and analyse the toughness of competition in the market. There are three main findings in the paper. First, entry thresholds decreased over the years, which led to better coverage and availability of pharmaceutical services. Second, the toughness of competition among pharmacies increased and the deregulation of over-the-counter drug sales contributed to the expansion of services provided by pharmacies. Third, population restrictions that prevailed in the market were too restrictive and should be reconsidered by regulation authorities..
    Keywords: Entry model, market competition, regulation, retail pharmacy.
    Date: 2022–11
  36. By: Bowbrick, Peter
    Abstract: Economics is drowning in a flood of bad books and papers, many of them written with the sole objective of getting another publication, many hurriedly written, sloppily researched, culpably negligent or fraudulent. Inevitably, good, honest economists are influenced by some of these, with the result that they produce bad economics themselves. Some waste their entire career by basing it on bad economics they learnt at university. Many journals are reluctant to publish refutations for commercial reasons. Refereeing is necessarily an imperfect system. A Journal of Economic Refutations would have the main objective of identifying bad economics so that researchers and professionals could avoid it, and so the public would not suffer the harm it causes. It would identify people publishing bad economics, so publishing sloppy, culpably negligent or fraudulent economics would damage their careers, rather than helping it. A refutation is worth a hundred normal papers, sometimes thousands. Another objective is show readers how to refute – a key professional skill for real-world economics.
    Keywords: Economic; Refutation; Journal
    JEL: A1 A10 A11 A2 A20
    Date: 2022–10–22
  37. By: Flávio Rabelo Versiani
    Date: 2021–10
  38. By: Julien Milanesi (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - UT2J - Université Toulouse - Jean Jaurès - UT3 - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées - CNRS - Centre National de la Recherche Scientifique); Aude Sturma (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - UT2J - Université Toulouse - Jean Jaurès - UT3 - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées - CNRS - Centre National de la Recherche Scientifique); Geoffrey Carrere (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - UT2J - Université Toulouse - Jean Jaurès - UT3 - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées - CNRS - Centre National de la Recherche Scientifique)
    Date: 2022–11–11

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.