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on Heterodox Microeconomics |
|
Issue of 2015‒05‒16
twenty-one papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | João Antonio de Paula (Cedeplar-UFMG); Hugo Eduardo da Gama Cerqueira (Cedeplar-UFMG); Leonardo Gomes de Deus (UFOP); Carlos Eduardo Suprinyak (Cedeplar-UFMG); Eduardo da Motta e Albuquerque (Cedeplar-UFMG) |
| Abstract: | Marx's Notebooks prepared in 1868 and 1869 (excerpts from The Economist and The Money Market Review) are an investigation on the crisis of 1866. Beyond a broad study of that crisis, they are an investigation of an emerging transformation of capitalism. They focus on leading industrial sectors (railways), financial innovations (such as limited liability firms and new types of shares and titles), and follow political measures undertaken in response to that crisis - dynamic new features of a system in its drive for survival. Those Notebooks might be material for a deep revision of his unfinished manuscripts for Volume III. |
| Keywords: | Karl Marx; MEGA; financial innovation; phases of capitalism |
| JEL: | B14 B31 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td515&r=hme |
| By: | Kellee Tsai (Division of Social Science, Hong Kong University of Science and Technology; Division of Political Science, Johns Hopkins University; Institute for Emerging Market Studies, Hong Kong University of Science and Technology) |
| Abstract: | The Xi-Li administration faces the dual challenge of managing state capitalism and shadow banking as China enters a phase of more moderate economic growth. During China's first three decades of reform, private sector development occurred in parallel with prioritization of state-owned enterprises in strategic industries, and growth surged. This pattern of state capitalism rested on an unarticulated bifurcated financing arrangement whereby the formal banking system primarily served public enterprises, while private businesses relied primarily on informal finance. However, China's response to global financial crisis disrupted the preceding equilibrium of financial dualism under state capitalism. Unprecedented expansion of bank lending after 2008 created opportunities for a host of state economic actors- including SOEs, state banks, and local governments—to expand their participation in offbalance sheet activities. |
| Keywords: | China, state capitalism, informal finance, shadow banking, financial development |
| JEL: | G23 G21 O17 P16 P26 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:hku:wpaper:201525&r=hme |
| By: | Olga Alonso-Villar; Coral del Río |
| Abstract: | Based on detailed occupation titles and making use of measures that do not require pairwise comparisons among demographic groups, this paper shows that the occupational segregation of Black women declined dramatically in 1940-1980, decreased slightly in 1980-2000, and remained stagnant in 2000-2010. An important contribution of this paper is the quantification of the well-being losses that these women derive from their occupational sorting. The segregation reduction was indeed accompanied by well-being improvements, especially in the 1960s and 1970s. Regarding the role that education has played, this study highlights that, only from 1990 onward, Black women with either some college or university degrees had lower segregation (as compared with their peers) than those with lower education. Nevertheless, the well-being loss that Black women with university degrees derived in 2010 for being segregated from their peers in education was not too different from that of Black women with lower education. |
| Keywords: | occupational segregation measurement, race, gender, Black women, wages, United States |
| JEL: | J15 J16 J71 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:vig:wpaper:1502&r=hme |
| By: | Raffaele Miniaci (University of Brescia); Michele Pezzoni (University of Nice Sophia Antipolis, France; GREDEG CNRS) |
| Abstract: | This paper aims at casting light on editorial boards of leading journals in economics. This topic has been largely neglected by economists and sociologists of science, although the crucial role played by editors of prestigious journals in steering the discipline. We start our analysis by mapping the content specialization and the level of oligopoly of the contributing institutions within each journal. Then, we assess the impact of editorial boards’ interlocking and turnover on similarity between journals. In the second half of the paper we investigate the determinants of editorial board membership in leading economic journals during the decade from 1994 to 2004. We observe that the scientist’s past productivity is a strong predictor of membership. Nevertheless, other determinants are at play. Among others, we found a significant positive effect of scientist’s social connections with the members of the discipline who are entitled to decide for the appointment as editor. |
| Keywords: | Economic Journals, Journal interlocking and turnover, Social connection, Editor recruitment |
| JEL: | B21 B40 B53 C72 D01 D11 D50 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2015-17&r=hme |
| By: | Taape, Julian |
| Abstract: | Trotz ihrer großen Verbreitung und wirtschaftlichen Bedeutung wurden Familienunternehmen bislang nur unzureichend hinsichtlich ihres Ko-operationsverhaltens untersucht. Familienunternehmen verfügen über charakteristische Merkmale, die einen Einfluss auf ihr wirtschaftliches Handeln nehmen. Die vorliegende Arbeit zeigt auf, inwiefern die charakteristischen Merkmale von Familienunternehmen im Kooperationspro-zess auf die Partnerwahl, die Partnerpräferenz sowie auf die Institutiona-lisierungsentscheidung wirken. Es wird gezeigt, dass unter anderem die Einbindung der Familie in den Entscheidungsprozess und die Identität der Werte der Familie und des Unternehmens einen Einfluss auf den Kooperationsprozess nehmen. Auf der Basis dieser Erkenntnisse wer-den anschließend wesentliche Handlungsempfehlungen für die Gestaltung von Kooperationsprozessen in Familienunternehmen abgeleitet. Dieses Arbeitspapier verbindet dabei die Forschungsfelder der Familienunternehmensforschung und der Kooperationsforschung. |
| Abstract: | In spite of their prevalence and their economic importance, family firms have not been sufficiently researched with regard to their cooperative behaviour. Family firms have characteristic features that influence their business. This paper shows how the characteristic features of family firms influence the cooperative process regarding partner selection, partner preference and the institutionalization of cooperative ventures. Results indicate that the involvement of the family in the decision process as well as the identity of values between the family and the firm in-fluence the cooperation process. Based on these results, the paper sug-gests managerial recommendations for the management of cooperative processes in family firms. This working paper is related to the fields of family business research and research of interfirm cooperation. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wwuifg:151&r=hme |
| By: | Peschel, Anne O.; Grebitus, Carola; Steiner, Bodo; Veeman, Michele |
| Keywords: | Consumer/Household Economics, Environmental Economics and Policy, |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa143:202727&r=hme |
| By: | Mariana Mazzucato; L. Randall Wray |
| Abstract: | This paper discusses the role that finance plays in promoting the capital development of the economy, with particular emphasis on the current situation of the United States and the United Kingdom. We define both 'finance' and 'capital development' very broadly. We begin with the observation that the financial system evolved over the postwar period, from one in which closely regulated and chartered commercial banks were dominant to one in which financial markets dominate the system. Over this period, the financial system grew rapidly relative to the nonfinancial sector, rising from about 10 percent of value added and a 10 percent share of corporate profits to 20 percent of value added and 40 percent of corporate profits in the United States. To a large degree, this was because finance, instead of financing the capital development of the economy, was financing itself. At the same time, the capital development of the economy suffered perceptibly. If we apply a broad definition -to include technological advances, rising labor productivity, public and private infrastructure, innovations, and the advance of human knowledge- the rate of growth of capacity has slowed. The past quarter century witnessed the greatest explosion of financial innovation the world had ever seen. Financial fragility grew until the economy collapsed into the global financial crisis. At the same time, we saw that much (or even most) of the financial innovation was directed outside the sphere of production -to complex financial instruments related to securitized mortgages, to commodities futures, and to a range of other financial derivatives. Unlike J. A. Schumpeter, Hyman Minsky did not see the banker merely as the ephor of capitalism, but as its key source of instability. Furthermore, due to "financialisation of the real economy", the picture is not simply one of runaway finance and an investment-starved real economy, but one where the real economy itself has retreated from funding investment opportunities and is instead either hoarding cash or using corporate profits for speculative investments such as share buybacks. As we will argue, financialization is rooted in predation; in Matt Taibbi's famous phrase, Wall Street behaves like a giant, blood-sucking "vampire squid". In this paper we will investigate financial reforms as well as other government policy that is necessary to promote the capital development of the economy, paying particular attention to increasing funding of the innovation process. For that reason, we will look not only to Minsky's ideas on the financial system, but also to Schumpeter's views on financing innovation. |
| Keywords: | Banker as Ephor of Capitalism; Capital Development; Finance; Global Financial Crisis; Innovation; Minsky; Schumpeter |
| Date: | 2015–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2015/14&r=hme |
| By: | Bauhardt, Christine; Brückner, Meike; Caglar, Gülay |
| Keywords: | Consumer/Household Economics, Public Economics, |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa143:202713&r=hme |
| By: | David, Audretsch (Indiana University); Donald, Kuratko (Indiana University); Albert, Link (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | The term “entrepreneurship” apparently means different things to different people including scholars and thought leaders. Because entrepreneurship is multifaceted, it is studied from many different perspectives, yet, that has fostered a multitude of definitions. Even the scholarly literature (where normally the deepest understanding would be found) is rife with disparities and even contradictions about what is and is not entrepreneurship. Some have suggested a narrower and more defined focus on entrepreneurship where only bona fide entrepreneurship research theories would explain entrepreneurial phenomena. We believe that constricting the field may the wrong approach. Our purpose then is to try and make sense of the disparate meanings and views of entrepreneurship prevalent in both the scholarly literature as well as among thought leaders in business and policy. We reconcile the seemingly chaotic and contradictory literature by proposing a coherent approach to structure the disparate ways that entrepreneurship is used and referred to in the scholarly literature. We examine three coherent strands of the entrepreneurship literature and identify an emerging eclectic view of entrepreneurship, which combines several of the views prevalent in the main approaches discussed. |
| Keywords: | Entrepreneurship; conceptual; behavioral; performance; eclectic |
| JEL: | L25 L26 L29 |
| Date: | 2015–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2015_004&r=hme |
| By: | Heather Sarsons |
| Abstract: | Within academia, men are tenured at higher rates than women are in most quantitative fields, including economics. Researchers have attempted to identify the source of this disparity but find that nearly 30% of the gap remains unexplained even after controlling for family commitments and differences in productivity. Using data from academic economists' CVs, I test whether coauthored and solo-authored publications matter differently for tenure for men and women. While solo-authored papers send a clear signal about one's ability, coauthored papers are noisy in that they do not provide specific information about each contributor's skills. I find that men are tenured at roughly the same rate regardless of whether they coauthor or solo-author. Women, however, suffer a significant penalty when they coauthor. The results hold after controlling for the total number of papers published, quality of papers, field of study, tenure institution, tenure year, and the number of years it took an individual to go up for tenure. The result is most pronounced for women coauthoring with only men and is less pronounced the more women there are on a paper, suggesting that some gender bias is at play. |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:qsh:wpaper:254946&r=hme |
| By: | Claire Baldin (University of Nice Sophia Antipolis, France; GREDEG CNRS); Ludovic Ragni (University of Nice Sophia Antipolis, France; GREDEG CNRS) |
| Abstract: | Cet article explique comment la dynamique de l’équilibre social chez Pareto repose sur le principe de rupture du moment machiavélien. Il resitue ce principe en termes d’équilibre entre virtù et fortuna puis en apprécie la transposition à l’étude de la dynamique de l’équilibre social parétien. Après avoir réévalué la méthode des approximations successives et de synthèse à laquelle Pareto recourt, nous montrons que le principe de rupture du moment machiavélien implique que l’explication de la dynamique sociale repose sur des lois tendancielles qui supposent de remettre en cause la synthèse des résultats de Pareto. |
| Keywords: | Pareto, Machiavel, méthodologie, histoire de la pensée économique |
| JEL: | B13 B15 B41 Z00 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2015-19&r=hme |
| By: | Hana Horakova (Department of International Relations and European Studies, Metropolitan University Prague, Czech Republic); Aneta Oniszczuk-Jastrzabek (Faculty of Science, Department of Social Geography and Regional Development, Charles University in Prague, Czech Republic) |
| Abstract: | Purpose – The purpose of the paper is to examine social change of a post-socialist Czech rural locality and community with regard to the large scale tourism development that has been taking place in this area since the late 1990s. The aim is to understand how the post-socialist transformation through tourism affected local community. Design – Tourism has become the primary economic endeavour which dominates community life and upon which the local area is dependent. The area serves as a prime example of a rapidly and extensively evolving, and largely exogenous tourism enterprise situated in a rural host community. The attempt is to present and explain the ways in which local rural people experience, create, interpret, and act upon transformation of the locality through tourism. Methodology - The paper is methodologically grounded in anthropological fieldwork conducted between 2008 and 2013. It is based on the data from participant observation and semi-structured interviews. Approach – The paper is focused on diverse identities, forms of agency and ambiguous interactions emerging within the rural community. It is argued that multiple views and representations of rurality are contingent on diverse memories of socialist past and post-socialist present. Findings – Data confirm the emergence of hybrid rural place filled up with changing spatial, social and power relations, and the processes of the internal ‘othering’ and marginalisation of the post-socialist rural place and people. Originality – The paper presents the outcomes of primary research that is both empirically-driven and conceptually embedded in the concepts of postsocialism, tourism as development, and social change. |
| Keywords: | rural development; rural change; tourism; post-socialism; Czech Republic; social capital |
| JEL: | L83 |
| URL: | http://d.repec.org/n?u=RePEc:tho:iscthi:section4-2&r=hme |
| By: | Jael, Paul |
| Abstract: | This paper focuses on the debate held in the twenties and thirties of the last century between libertarian economists and socialist economists, following the denial by the first ones of the feasibility of a socialist economy. This controversy is well known to specialists and has been widely commented. It seemed to me useful to initiate non-specialists in an original way: by having the controversy speaking by itself. We review the main contributions and summarise their arguments with, initially, the bare minimum of personal comments. Walrasian general equilibrium serves as a reference for the defenders of market socialism in the controversy. But the concept of competition behind this theory is very incomplete; it is purely passive. It follows that the market socialism which emanates from it is not really a MARKET socialism. It is lacking the competition which innovates. Markets for capital goods are also lacking in theses models. Our paper then turns to a new generation of socialist models involving this real competition. We review two models proposed by Bardhan and Roemer and then exhibit a personal model. This type of model is facing a modern criticism whose central concept is the "soft budget constraint". |
| Keywords: | planning; market socialism; socialist calculation; soft budget constraint; Barone; von Mises; Hayek; Lange; Roemer |
| JEL: | P20 P21 P27 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:64255&r=hme |
| By: | Schickramm, Lena; Saenz-Segura, Fernando; Schipper, Robert A.; Handgraaf, Michel |
| Abstract: | A successful family farming sector is strategic for developing rural areas, but is is endangered by household-specific market failures, high transaction costs and low bargaining power. Contract farming and collective actions are two common institutional devices for acquiring a level of certainty regarding market information, delivery conditions and procurement prices. Farmers’ associations is one of the common form of collective actions, but faces problems of opportunistic behaviour from their participating members. The intensity of group identity felt by an individual member is an essential determinant of the level of commitment and support granted towards the association. This case study analyzes the interdependence between individual identification intensity and revealed commitment for a commodity specific association that is based on individual membership. Members and non-members of the association participated in a questionnaire followed by a natural field experiment concerning their social identity towards the existing pepper association. By manipulating the social identity variable it could be seen that social identity has an influence on the participation of the individual in the association. This effect could be found for members and non-members alike. Strengthened social identity generally increased the participation of the individual in the organisation. |
| Keywords: | Collective actions, social identity, willingness to participate, pepper, Farm Management, |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc15:204235&r=hme |
| By: | Christina Jenq (Institute for Emerging Market Studies, Hong Kong University of Science and Technology) |
| Abstract: | Dr. Christina Jenq, a post-doctoral researcher with HKUST IEMS, inspects the role of 1990's era reforms to urban Chinese state-owned enterprises (SOEs) on the widening gender imbalance in urban employment, with males accounting for a significantly larger share of urban employment than females. Based on rigorous econometric analysis, Dr. Jenq postulates that 30-50% of the gender imbalance amongst the urban employed can be assigned to gender-asymmetric industry-level privatization, with the remaining 50-70% attributable to gender differences in labor supply, both on a qualitative and qualitative level. Dr. Jenq cautions against quota-based employment policies aimed at reducing the employment gender gap (as there was scant evidence of gender discrimination found in her analysis), and instead recommends increases in both skill training programs as well as childcare and education benefits to allow more urban women the opportunity to enter the labor force. |
| Keywords: | Chinese state-owned enterprises, Chinese SOEs, Chinese privatization, privatization, SOE reform, gender imbalance, employment gender gap, ownership-specific human capital, China |
| JEL: | J24 E24 J41 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:hku:briefs:201508&r=hme |
| By: | Loreta Bebi (\) |
| Abstract: | Several accounting and corporate scandals such as the collapse of Enron, Arthur Andersen, WorldCom, and Parmalat have shaken the business world over the last decade. After numerous studies, it is concluded that the main reason of this scandals have been especially the unethical conduct of accountants.Today more than ever, unfortunately, profit at any cost has become the most negative factor that endangers the accounting profession. Financial scandals all over the world, financial crisis that continues to be present, and the last cases of businesses rigging in Albania, in which are involved both accountants, have brought the issues of ethics in accounting in attention of the accounting professionals and academics. This paper investigates the ethical decisions of accountancy students and in particular analyses the effect of moral intensity dimensions: magnitude of consecuences, social consensus, temporal immediacy in ethical decision-making process of those individuals. Two classes of final year accountancy students of the "Aleksander Xhuvani" University in Elbasan, Albania were presented with four ethical scenarios. Based on their responses about this scenarios, this study came in the conclusion that three dimensions of moral intensity affect significantly the three first stages of ethical decision making process of the students that participate in the study.Since noticed a limited number of studies regarding ethical decision making of accountants in countries with developing economies, like Albania, this study will provide a valuable contribution in relation to this important issue of our country. It will conclude with some valuable recommendations on measures to be taken regarding the improvement of the current situation. |
| Keywords: | ethical decision making, Jone (1991) model, moral intensity, accounting students, Albania. |
| JEL: | M40 M41 M49 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:1003815&r=hme |
| By: | Mecking, Rebecca-Ariane; Roosen, Jutta |
| Keywords: | Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa143:202698&r=hme |
| By: | Edquist , Charles (CIRCLE, Lund University); Zabala-Iturriagagoitia , Jon Mikel (Deusto Business School, Deusto University) |
| Abstract: | According to the Innovation Union Scoreboard, published by the European Commission every year, Sweden has been, and still is, an innovation leader within the EU and one of the most innovative countries in Europe. In the Innovation Union Scoreboard 2014 (European Union, 2014: 5), Sweden has the top position (ranked number 1) of all EU28 Member States in what is called “EU Member States’ Innovation Performance”. In the ranking there are 10 countries between Sweden and the EU average. This analysis is based on the ranking provided by one single composite indicator (SII or Summary Innovation Index), based on 25 separate indicators. <p> In this paper we argue that the SII provided by the Innovation Union Scoreboard is highly misleading. The data (the 25 separate indicators) that constitute this composite innovation indicator need to be analyzed much more in depth in order to reach a correct measure of the performance of an innovation system. We argue that input and output indicators need to be considered separately and measured individually and as two groups of indicators. Thereafter we compare the input and output indicators with one another (as is normally done in productivity and efficiency measurements). The outcome of this is a relevant and better measure of innovation performance. <p> In this paper, the performance of the Swedish national innovation system is analyzed by using exactly the same data as is used by the Innovation Union Scoreboard 2014. We analyze the relative position of Sweden regarding both input and output indicators, concluding that Sweden’s position as an innovation leader within the EU must be reconsidered. A theoretical background and reasons for selecting the indicators used is given and a new position regarding Sweden’s innovation performance compared to the other countries is calculated. <p> Our findings show, that Sweden remains in a high position for the innovation input indicators, ranked number 1. However, with regard to innovation output, Sweden is ranked number 10. In other words, about a third of all European Union 28 Member States have a higher innovation output than Sweden. To estimate the efficiency or productivity of the Swedish innovation system, inputs and outputs must be related to each other. When doing so, we reach the conclusion that Sweden is ranked number 24 of EU28 Member States. This finding is then discussed and we also discuss which countries would be relevant for Sweden to compare (benchmark) its innovation system with. <p> The conclusion is that Sweden, based on our calculations, can certainly not be seen as an innovation leader in Europe. This means that the Innovation Union Scoreboard is flawed and may therefore mislead researchers, policy-makers, politicians as well as the general public – since it is widely reported in the media. |
| Keywords: | Innovation system; innovation policy; innovation performance; Sweden; indicators; input; output |
| JEL: | O30 O38 O49 O52 |
| Date: | 2015–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2015_016&r=hme |
| By: | Anastasios Valvis (University of the Peloponnese) |
| Abstract: | It has already been 5 years since Greece first entered into a period of unprecedented economic crisis - a crisis that saw an end to the previous prosperous era. Under these new conditions, the welfare state in Greece started to falter. Unemployment skyrocketed, while more and more people started working without social insurance. The state’s social care system almost collapsed, leaving vulnerable people exposed. The number of homeless people is increasing day by day, while those struggling to find food have multiplied during these years.Greek Organized Civil Society, although underdeveloped compared to other European states, stood up in order to cover the state’s insufficiency. Yet, cases of corruption with the engagement of NGOs in the past have raised a lot of questions regarding the motives behind the actions of some NGOs. Accusations have become a frequent phenomenon in the press throughout recent years, creating a false image of the NGO sector in Greece. Political accusations have found a fertile ground to prosper, causing severe damage to the image of the NGOs. While it is true that a number of scandals regarding the work of specific NGOs that have been brought into the limelight were valid, the generalizations that followed hammered the public image of the entire sector. To this end, the NGO sector became an easy battle-ground for political provocations and accusations, usually without reason. |
| Keywords: | NGOs, Media, Corruption, Political Parties |
| JEL: | D73 D71 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:1004001&r=hme |
| By: | Robin L. Lumsdaine; Daniel N. Rockmore; Nicholas Foti; Gregory Leibon; J. Doyne Farmer |
| Abstract: | In November, 2011, the Financial Stability Board, in collaboration with the International Monetary Fund, published a list of 29 "systemically important financial institutions" (SIFIs). This designation reflects a concern that the failure of any one of them could have dramatic negative consequences for the global economy and is based on "their size, complexity, and systemic interconnectedness". While the characteristics of "size" and "systemic interconnectedness" have been the subject of a good deal of quantitative analysis, less attention has been paid to measures of a firm's "complexity." In this paper we take on the challenges of measuring the complexity of a financial institution and to that end explore the use of the structure of an individual firm's control hierarchy as a proxy for institutional complexity. The control hierarchy is a network representation of the institution and its subsidiaries. We show that this mathematical representation (and various associated metrics) provides a consistent way to compare the complexity of firms with often very disparate business models and as such may provide the foundation for determining a SIFI designation. By quantifying the level of complexity of a firm, our approach also may prove useful should firms need to reduce their level of complexity either in response to business or regulatory needs. Using a data set containing the control hierarchies of many of the designated SIFIs, we find that in the past two years, these firms have decreased their level of complexity, perhaps in response to regulatory requirements. |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1505.02305&r=hme |
| By: | Krebs, Oliver (University of Würzburg); Pflüger, Michael P. (University of Würzburg) |
| Abstract: | This paper explores the quantitative consequences of transatlantic trade liberalization envisioned in a Transatlantic Trade and Investment Partnership (TTIP) between the United States and the European Union. Our key innovation is to develop a new quantitative spatial trade model and to use an associated technique which is extraordinarily parsimonious and tightly connects theory and data. We take input-output linkages across industries into account and make use of the recently established World Input Output Database (WIOD). We also explore the consequences of labor mobility across local labor markets in Germany and the countries of the European Union. We address the considerable uncertainties connected both with the quantification of non-tariff trade barriers and the outcome of the negotiations by taking a corridor of trade liberalization paths into account. |
| Keywords: | international trade and trade policy, factor mobility, intermediate inputs, sectoral interrelations, transatlantic trade, TTIP |
| JEL: | F10 F11 F12 F16 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9021&r=hme |