nep-his New Economics Papers
on Business, Economic and Financial History
Issue of 2023‒09‒18
nineteen papers chosen by
Bernardo Bátiz-Lazo, Northumbria University

  1. Kokovtsov V.N.: life and activity By Belykh, Andrey (Белых, Андрей)
  3. The first graduate school of Latin American economic studies (ESCOLATINA) between "autochthonous" and international logics (1956-1964) By Klüger, Elisa; Morin, Johanna Gautier; Rossier, Thierry
  4. On the promises and perils of Smithian growth – from pin factory to AI By Miller, Marcus
  5. Reconstructing a slave society: Building the DWI panel, 1760-1914 By Galli, Stefania; Klas, Rönnbäck; Dimitrios, Theodoridis
  6. How do Financial Crises Redistribute Risk? By Kris James Mitchener; Angela Vossmeyer
  7. The Causal Effects of Enclosures on Production and Productivity By Lazuka, Volha; Bengtsson, Tommy; Svensson, Patrick
  8. The Impact of Violence during the Mexican Revolution on Migration to the United States By Escamilla-Guerrero, David; Kosack, Edward; Ward, Zachary
  9. The New Economics of Industrial Policy By Réka Juhász; Nathan J. Lane; Dani Rodrik
  10. “Moments of mocking cynicism”: Gaining dignity through the humiliation of humiliators By Zelenina, Galina (Зеленина, Галина)
  12. Temperature and Local Industry Concentration By Jacopo Ponticelli; Qiping Xu; Stefan Zeume
  15. On the Problem of the Purchasing Power of Money by A. A. Konüs and S. S. Byushgens: Translation and Commentary By Valentin Zelenyuk; Erwin Diewert
  16. Keynes and the drunkard under the lamp post: Making sense of Palley By Heise, Arne
  17. What Is the Point of Schooling? The Politics of Education Policy in Tanzania Since 1961 By Ken Ochieng’ Opalo
  18. The impact of the Johnson–Reed Act on Filipino labor market outcomes By Andreas Vortisch
  19. Identifying the Emergence of Academic Entrepreneurship within the Technology Transfer Literature By Hayter, Christopher; Link, Albert; Schaffer, Matthew

  1. By: Belykh, Andrey (Белых, Андрей) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: This work describes life and activity of Vladimir Nikolaevich Kokovtsov, prime-minister (1911-1914) and minister of finance (1904-1905, 1906-1914) of the Russian Empire. In the history of the Russian Empire, of the USSR and of the Russian Federation, Kokovtsov was the only statesman to combine the position of minister of finance and of prime-minister. Though there are a number of works and several PhD theses devoted to Kokovtsov – a key actor of his time, a general evaluation of his personality and his influence on the economic development of Russia in the beginning of the 20th century is yet to be made. Filling this gap is the main goal of this work. The object of investigation is Kokovtsov’s political biography, his economic and financial policy, and his efforts to reasonably limit military expenditures. The work is based on both personal materials left by Vladimir Kokovtsov (memoirs, letters), and official documents. Several archived materials – memos on financial matters of military defense made up by Kokovtsov – are published for the first time. The author verifies authenticity of the sources and confirms or refutes some facts presented by Kokovtsov using an array of modern methods of historical science including the principle of historicism, principle of classification, comparative-historical method, and some others. Beyond doubt, Vladimir Nikolaevich Kokovtsov was an outstanding statesman. He was not a politician in the traditional sense. On the contrary, he served his country as an “honest bureaucrat”. Steadfast observation of laws, honesty, efficient financial policy, love for Russia – all these characteristics describe his personality.
    Keywords: history of Russia, V.N. Kokovtsov, economic policy, finances, 20th century, military expenditures
    JEL: N13 N23 O23
    Date: 2021–11
  2. By: Tanshina, Natalia (Таньшина, Наталия) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Relevance of the study. The attitude towards the Russian Federation in the modern world is highly complex and contradictory. This is due, in part, ’to the traditional perception of Russia in the west in the context of the binary “Friend-or-Foe” juxtaposition. Studying the origins of these processes is undoubtedly relevant. The object of the study is the perception of Russia in the public opinion of France in the XIX century, and the development of the image of Russia in the public opinion of France during the XIX - XXI centuries. The purpose of the study is to examine the historical roots of the perception of Russia in the public opinion of France and in the French intellectual circles, based on the analysis of the works of French authors of the 1840s-1880s, and to compare this image with modern ideas about Russia in the French intellectual and political circles. The study was conducted in 2021 as part of the RANEPA research work. Research method or methodology: The research involves the use of an interdisciplinary synthesis methodology based on classical historical analysis. The study of stereotypes of mutual perception and the reconstruction of the “image of the Other” require applying the methodology of imagological research. In addition, the study of political ideology involves applying the methodology of intellectual history and the history of ideas. The results of the study: using the example of the analysis of the image of Russia formed in the public opinion of France in the XIX - XX centuries, the authors attempt to: - identify the main circle of authors writing about Russia in the period under review, to determine the main circle of sources and to classify them; - study the works about Russia written in the 1840s, after the publication of the book by Astolphe de Custine; - analyze the transformation of the view of Russia on the eve and during the Crimean War (1853-1856); - study the changes in the perception of Russia after the Crimean War, given the improvement of Franco-Russian relations in the years preceding the conclusion of the Franco-Russian Union.
    Keywords: stereotypes of mutual perception, imagology, the Russian Empire, France, images of the other, public opinion
    Date: 2021–11–08
  3. By: Klüger, Elisa; Morin, Johanna Gautier; Rossier, Thierry
    Abstract: After World War II, international organizations and research institutes dedicated to the development of local expertise thrived in Latin America. The desire to produce appropriate knowledge to solve the region's socio-economic problems raised the question of the intellectual and material autonomy of these organizations. This article combines intellectual and social history to investigate the early years of the first Graduate School of Latin American Economic Studies (ESCOLATINA), founded in Chile in 1956. The mixture of archival research, collective biography, and sequence analysis allows us to examine the tensions between, on the one hand, the quest for epistemic autonomy and rapprochement with other social sciences, and, on the other hand, the influence of the US model of graduate schools of economics together with the dependence on foreign resources and experts. The history of ESCOLATINA also reveals how the academic and political environment in Chile shaped the school and transformed it over time.
    Keywords: academic autonomy; collective biography; ESCOLATINA; sequence analysis; transnational expertise
    JEL: J1
    Date: 2023–07
  4. By: Miller, Marcus (University of Warwick)
    Abstract: For path-breaking insights on how prices can guide the efficient allocation of resources and on how innovation and investment can spur economic growth, Adam Smith is justly renowned. He was, however, well aware of problems posed by market dominance – specifically in banking and, more generally, wherever getting to the scale that delivers increasing returns leads to monopolistic behaviour. For the historical record, we draw on the recent wide-ranging survey by Acemoglu and Johnson on how the benefits of innovation have been spread across society since the Industrial Revolution. We also consider these issues in the context of geo-political competition.
    Keywords: The Wealth of Nations by Adam Smith ; Increasing Returns to Scale; monopoly ; excess risk-taking ; case studies of economic history ; geo-political competition. JEL Codes: B12 ; D61 ; E25 ; L12 ; O33 ; P51
    Date: 2023
  5. By: Galli, Stefania (Unit for Economic History, School of Business, Economics and Law, Göteborg University); Klas, Rönnbäck (Unit for Economic History, School of Business, Economics and Law, Göteborg University); Dimitrios, Theodoridis (Unit for Economic History, School of Business, Economics and Law, Göteborg University)
    Abstract: In this article, we discuss the sources employed and the methodological choices that entailed assembling a novel, individual-level, large panel dataset containing an incredible wealth of data for a full population in the Caribbeans over the long run, the DWI panel. The panel contains over 1.35 million observations spanning 154 years, well over 100 variables, and its records are linked across sources along demographic and geographic lines throughout the entire period. This richness is all the more valuable in light of the limited source’s availability characteristics of the area and is hoped to lead to a renewed debate over our understanding of former slave societies, while fostering collaborations with scholars relying on similar datasets for other areas of the world.
    Keywords: Big data; micro data; panel construction; record linking; colonialism; slavery
    JEL: D31 F54 J47 N01 N36
    Date: 2023–07–01
  6. By: Kris James Mitchener; Angela Vossmeyer
    Abstract: We examine how financial crises redistribute risk, employing novel empirical methods and micro data from the largest financial crisis of the 20th century – the Great Depression. Using balance-sheet and systemic risk measures at the bank level, we build an econometric model with incidental truncation that jointly considers bank survival, the type of bank closure (consolidations, absorption, and failures), and changes to bank risk. Despite roughly 9, 000 bank closures, risk did not leave the financial system; instead, it increased. We show that risk was redistributed to banks that were healthier prior to the financial crisis. A key mechanism driving the redistribution of risk was bank acquisition. Each acquisition increases the balance-sheet and systemic risk of the acquiring bank by 25%. Our findings suggest that financial crises do not quickly purge risk from the system, and that merger policies commonly used to deal with troubled financial institutions during crises have important implications for systemic risk.
    JEL: C3 E44 G21 N12
    Date: 2023–08
  7. By: Lazuka, Volha (Lund University); Bengtsson, Tommy (Lund University); Svensson, Patrick (Swedish University of Agricultural Sciences)
    Abstract: Enclosures enforced private property rights at the onset of industrialization, yet numerous estimations of the enclosures' effects on production and productivity rely on non- experimental designs. We estimate the causal effects of enclosure reforms applying state- of-the-art difference-in-differences and event-study methods to a large panel of farms observed between 1781 and 1865 in Sweden. Our results demonstrate that enclosures led to a 3.4 percent annual growth in land productivity in the first decade and overall production increase reached 82 percent after 30 years. Such results are much larger than previous estimates, suggesting that land enclosures were a prerequisite for modern economic growth.
    Keywords: difference-in-differences, agriculture, production, property rights, enclosures, event-study
    JEL: Q15 Q24 N53
    Date: 2023–08
  8. By: Escamilla-Guerrero, David (University of St Andrews); Kosack, Edward (St. Francis Xavier University); Ward, Zachary (Baylor University)
    Abstract: The number of individuals forcibly displaced by conflicts has been rising in the past few decades. However, we know little about the dynamics - magnitude, timing, and persistence - of conflict-induced migration in the short run. We use novel high-frequency data to estimate the dynamic migration response to conflict for the case of the Mexican Revolution (1910-1917), one of the deadliest conflicts in world history. We find that, on average, insurgency events led to a large increase in migration rates of about 60 percent that lasted for a few months: after five months, migration rates reverted back to pre-violence levels. This finding masks substantial heterogeneity in treatment effects, as we find larger and more persistent effects for women and children. We show that violence was the main treatment channel, with variation in the intensity and nature of violence explaining the magnitude and persistence of the migration response. While migration costs, migrant networks, and land ownership moderated the migration response to conflict, we show that these factors affect different aspects of the response.
    Keywords: migration, refugees, Mexican Revolution
    JEL: F22 N31 N32 N36
    Date: 2023–07
  9. By: Réka Juhász; Nathan J. Lane; Dani Rodrik
    Abstract: We discuss the considerable literature that has developed in recent years providing rigorous evidence on how industrial policies work. This literature is a significant improvement over the earlier generation of empirical work, which was largely correlational and marred by interpretational problems. On the whole, the recent crop of papers offers a more positive take on industrial policy. We review the standard rationales and critiques of industrial policy and provide a broad overview of new empirical approaches to measurement. We discuss how the recent literature, paying close attention to measurement, causal inference, and economic structure, is offering a nuanced and contextual understanding of the effects of industrial policy. We re-evaluate the East Asian experience with industrial policy in light of recent results. Finally, we conclude by reviewing how industrial policy is being reshaped by a new understanding of governance, a richer set of policy instruments beyond subsidies, and the reality of de-industrialization.
    JEL: L5
    Date: 2023–08
  10. By: Zelenina, Galina (Зеленина, Галина) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper examines comic elements in the narratives of the Jewish national movement (or Refusenik movement) in the late USSR, drawing from later sources, oral and written memories, as well as from letters to the authorities and to Western public, contemporary with the movement. Comic episodes and ironic tone turn out to be an important facet of Jewish activists’ dialogue with the authorities and are discussed as such, or as “weapon of the weak” within the symbolic resistance of Refuseniks to the repressive regime.
    Keywords: the USSR, KGB, Jewish national movement, Refuseniks, letters to the authorities, symbolic resistance, totalitarian laughter
    Date: 2021–10–19
  11. By: Vivekanand Jha
    Abstract: The poetry of Pashupati Jha has a diversity and multiplicity of themes like nature, feminism, corruption, immorality, and other contemporary and radical issues. His poetry can be interpreted and its web can be woven by spinning the yarn of any of its fabrics. In the light of it, there is an unmistakable stamp of Sylvia Plath’s confessional writings on his poetry and leaping further a step, he ensures that the confessional tone and element in his poetry remains free from semblance of solipsistic tendencies, making his poetry comprehensive and universal in nature. Waiting seems to be over now and it’s Eden Again. Key words: Themes, imageries, nature, feminism, corruption, immorality, confessional poetry, Eden
    Date: 2023–03
  12. By: Jacopo Ponticelli; Qiping Xu; Stefan Zeume
    Abstract: We use plant-level data from the US Census of Manufacturers to study the short and long run effects of temperature on manufacturing activity. We document that temperature shocks significantly increase energy costs and lower the productivity of small manufacturing plants, while large plants are mostly unaffected. In US counties that experienced higher increases in average temperatures between the 1980s and the 2010s, these heterogeneous effects have led to higher concentration of manufacturing activity within large plants, and a reallocation of labor from small to large manufacturing establishments. We offer a preliminary discussion of potential mechanisms explaining why large manufacturing firms might be better equipped for long-run adaptation to climate change, including their ability to hedge across locations, easier access to finance, and higher managerial skills.
    JEL: G3 L11 O14 Q54
    Date: 2023–08
  13. By: Matveev, Ilya (Матвеев, Илья) (The Russian Presidential Academy of National Economy and Public Administration); Konovalov, Ilya (Коновалов, Илья) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Economic inequality is often portrayed as an objective fact that can only be changed by redistributive policies. This leads economists to link inequality to other strictly economic factors – first and foremost, economic growth. This approach is based on Simon Kuznets’ famous hypothesis on the association between growth and inequality. This association has long been treated as economic in nature: after a certain level of economic development is reached, inequality begins to decline. However, in this paper, we deal with theories that refuse to consider inequality to be a purely economic phenomenon. We focus on Daron Acemoglu and James Robinson’s model that indicates the Kuznets curve having a political nature. This model treats inequality as a result of the conflict between masses and elites, and suggests searching for a strategic compromise by building democratic institutions. We investigate the model’s assumptions and through studying empirical works we indicate possible ways to advance Acemoglu and Robinson’s theory. We conclude that the model’s basic structure is sound, however, its development requires detailed case studies, not just general econometric analysis. We also claim that Acemoglu and Robinson’s model should involve a more nuanced understanding of the causes and effects of collective action both before and after democratization.
    JEL: D31 H23 D74
    Date: 2021–11–11
  14. By: Iñigo Iturbe-Ormaetxe (: Departamento de Fundamentos del An·lisis EconÛmico (FAE), Universidad de Alicante.); Santiago Sanchez-Pages (King's College London.); Angel Solano-Garcia (Department of Economic Theory and Economic History, University of Granada.)
    Abstract: We examine the redistributive effects of extending voting rights to non-citizens. Our hypothesis is that the impact of this reform depends on the political power wielded by new voters to change the status quo. Specifically, we anticipate a greater power when elections are more contested. To investigate this hypothesis, we analyze the 1975 Swedish electoral reform, which granted voting rights to non-citizens in local elections. Our findings reveal a significant and one-time increase in local taxes right after the reform. This tax hike was more pronounced in municipalities with a higher proportion of non-citizens. This effect was concentrated in municipalities where the size of the newly enfranchised electorate was substantial enough to potentially upturn the outcome of the previous election.
    Keywords: : Voting, Redistribution, Electoral reform, Immigration, Local elections.
    JEL: D72 D74 F22
    Date: 2023–09–05
  15. By: Valentin Zelenyuk (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia); Erwin Diewert (University of British Columbia & University of New South Wales)
    Abstract: In 1939, Econometrica published an English translation of Konüs (1924). Since then, Konüs (1924 [1939]) has become a classic work on the theory of the cost of living index, inspiring many other studies in the field. On the other hand, very few scholars have had the opportunity to read another, equally important, work by Konüs (co-authored with Byushgens) published in 1926 by the same Institute. This other paper of Konüs also pioneered several fundamental concepts and results in economics (including duality theory, the theory of inverse demand functions and the theory of exact index numbers), yet somehow it appears that it has never been translated into English (or any other language). We bridge this gap by offering a translation and a commentary on this important paper.
    Keywords: Price Index, Inflation measurement, Purchasing Power of Money
    JEL: C43 E30
    Date: 2023–01
  16. By: Heise, Arne
    Abstract: In a recent article, Tom Palley begins his critique of Keynesian economics with the well-known story of a drunkard who, when searching for his lost keys, looks not in the darkness of the nearby lawn where he misplaced them, but instead under the light cone of a lamp post because, when asked, he replies that's where the light is. This story serves as a metaphor for the field of economics attempting to understand the workings of the capitalist economy solely through the lens of Keynesian economics. However, this endeavour is ultimately futile as comprehending capitalism requires a different analytical approach: acknowledging social conflict as an essential component of capitalism's nature better addressed by Kaleckian macroeconomics. I attempt to illustrate that Palley is accurate in emphasizing the paradigmatic differences and even incommensurabilities between Keynes' monetary production paradigm and the Marxian-Kaleckian social conflict paradigm. This suggests that any classification under the umbrella term "post-Keynesianism" is misleading. However, Palley is mistaken in his assertion that this distinction aligns Keynes' economics with neoclassical (mainstream) economics, as the acceptance or rejection of social conflict is not the only fault line in terms of ontology. There are other ontological divisions that can exist. Or, to use the metaphor, the lamp post can be moved to different areas of the lawn, indicating different ontological perspectives.
    Keywords: Keynes, social conflict, effective demand, monetary production
    JEL: A14 B40 B51 E11 E12
    Date: 2023
  17. By: Ken Ochieng’ Opalo (Georgetown University; Center for Global Development)
    Abstract: Education is one of the most important public goods provided by modern governments. Yet governments worldwide seldom perform well in the sector. This raises the question: Why do governments preside over poor education quality? This paper answers this question with evidence from Tanzania. Using data from surveys, administrative reports, and policy documents, it analyzes changing goals of education policy and associated impacts on access and learning over time. The main finding is that learning has not always been the goal of schooling in Tanzania. Furthermore, for decades the government rationed access to both primary and secondary schooling for ideological reasons. These past policy choices partially explain contemporary poor outcomes in education. This paper increases our understanding of the politics of education in low-income states. It also provides a corrective against the common assumption that governments always seek to maximize the provision of public goods and services for political gain.
    Keywords: Public Policy, Education, Tanzania, Ujamaa, Political Settlements
    Date: 2022–04–21
  18. By: Andreas Vortisch (Université du Luxembourg)
    Abstract: Immigration restrictions to the U.S. are rather modern policies. One of the most significant policy changes, the Johnson-Reed Act of 1924, drastically limited the number of new immigrants per year, especially from Asia. In combination with the Emergency Quota Act of 1921, immigration per country was capped at 2 percent of the respective population in the 1890 census. In this presentation, I examine to what extent exemptions from immigration restrictions affected relative labor market outcomes of prior migration cohorts. Using decennial census data, I apply a difference-in-differences estimation, considering that restrictions initially did not apply to the Philippines, then a U.S. territory. My findings indicate that initial immigration restrictions impacted Filipinos, who were exempt from the policy, more severely, highlighting the impact of competition on their economic assimilation. In comparison with other migrants, relative log occupational income scores of Filipinos declined, while their labor force participation and employment status increased. These findings corroborate previous studies that emphasize the relevance of substitutability within and the vulnerability across immigrant cohorts. The effects are particularly strong for the year of 1930 and in California, which coincides with the timing of immigration policies and Filipinos' main destination. Individual panel-data analysis partially supports the findings in the cross-sectional evaluation.
    Date: 2023–08–11
  19. By: Hayter, Christopher (Georgia Institute of Technology); Link, Albert (University of North Carolina at Greensboro, Department of Economics); Schaffer, Matthew (Eastern Michigan University)
    Abstract: Though academic entrepreneurship has long been associated with technology transfer and more broadly with the passage of the 1980 Bayh-Dole Act in 1980, we have little understanding of its emergence as a research field. This paper therefore investigates development of the concept of academic entrepreneurship by studying the use of related keywords in the titles of papers published in the Journal of Technology Transfer (JTT) beginning with volume 1 in 1977. We conclude from our empirical findings that the role of universities in technology transfer has been consistently emphasized in the titles of papers published in the JTT over time, with entrepreneurship emerging more recently as a crucial area of scholarly focus.
    Keywords: academic entrepreneurship; entrepreneurial university; technology transfer; project evaluation; research portfolio choices;
    JEL: G11 H40 L26 O33
    Date: 2023–08–22

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