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on Post Keynesian Economics |
| By: | Naude, Wim |
| Abstract: | Following the financial crisis that broke in the US and other Western economies in late 2008, there is now serious concern about its impact on the developing countries. The world media almost daily reports scenarios of gloom and doom, with many predicting a deep global recession. This paper critically discusses this and concludes that as far as the developing countries are concerned, a bit more optimism may be warranted. Although without doubt there are particular countries that will be adversely affected, there will also be countries that may be less affected, may avoid recession, and may recover sooner than expected. Six major reasons for this conclusion are discussed. Without this resilience in the developing world, prospects for the world?s richer countries would be much bleaker. Finally, some options available to the developing countries for minimizing the impact of the crisis are discussed. The crisis accentuates the urgent need for accelerating financial development in developing countries, both through domestic financial deepening, domestic resource mobilization, and reform of the international financial system. |
| Keywords: | financial crisis, developing countries, development finance, financial development |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:dp2009-01&r=pke |
| By: | Martha Poon (University of California, San Diego) |
| Abstract: | Provides original sociological research on the development of consumer credit scoring in the United States and its links to subprime mortgage finance. |
| Keywords: | Science and technology studies, economic sociology, social studies of finance, subprime mortgages, consumer credit, risk |
| JEL: | D81 G21 L15 M30 N22 N32 O33 P16 Z13 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:emn:wpaper:014&r=pke |
| By: | Samuel Bowles (Santa Fe Institute and University of Siena); Glenn C. Loury (Department of Economics, Brown University); Rajiv Sethi (Department of Economics, Barnard College, Columbia University and the Institute for Advanced Study) |
| Abstract: | This paper explores conditions under which inequality across social groups can emerge from initially group-egalitarian distributions and persist across generations despite equality of eco- nomic opportunity. These conditions arise from interactions among three factors: the extent of segregation in social networks, the strength of interpersonal spillovers in human capital accumu- lation, and the responsiveness of relative wages to the skill composition in production. Social segregation is critical in generating these results: group inequality cannot emerge or persist un- der conditions of equal opportunity unless segregation su¢ ciently great. We also show that if an initially disadvantaged group is su¢ ciently small, integration above a threshold level can induce both groups to invest more in human capital, while the opposite holds if the disadvantaged group is large. |
| Keywords: | segregation, networks, group inequality, human capital |
| JEL: | D31 Z13 J71 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:ads:wpaper:0088&r=pke |
| By: | Naude, Wim |
| Abstract: | Improved governance and lower start-up costs may not be sufficient for encouraging the type of entrepreneurship that matters for economic growth. Using panel data on 60 countries spanning the period 2003-07 this paper establishes that (i) opportunity-motivated entrepreneurship (as opposed to necessity-motivated entrepreneurship) drives economic growth; (ii) governance and the start-up costs are not significant determinants of opportunity entrepreneurship; and (iii) better governance leads to higher economic growth. This implies that better governance and lower start-up costs, widely advocated as measures to promote entrepreneurship in developing countries, may not in fact be enough. Indeed, despite poorer governance and higher start-up costs, rates of opportunity-motivated entrepreneurship are higher in developing countries. Second, better governance can lead to better growth through reducing the impact of destructive entrepreneurship (including rent-seeking), even though this may not result in a reallocation of effort from destructive towards opportunity-motivated entrepreneurship. The paper concludes by discussing whether these results call in question the popular belief that a lack of opportunity-motivated entrepreneurship constrains developing country growth, and whether there is justification for more proactive government support for entrepreneurship. |
| Keywords: | entrepreneurship, development, institutions |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2009-01&r=pke |
| By: | Pinto, Hugo |
| Abstract: | The essay will try to debate about the institutional theory, confronting the emergence of institutionalism with the limits of neoclassical theory. The initial old institutionalism and the new institutionalism ideas will be discussed trying to underline what distinguishes the ideas of Coase and Williamson from other approaches that tried to export the economic theory and its methodological individualism, a movement that became known as the imperialism of economics, a transposition of methods and microeconomic analysis, to subjects not commonly analyzed by economics, as the ones served as the basis for the work of Becker. In the end it will try to touch on whether the old theory and new institutionalism are converging or diverging towards a new institutionalism. |
| Keywords: | Institutions; Old institutionalism; New institutionalism; Neoclassical Theory |
| JEL: | B1 B52 D02 |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:13512&r=pke |