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on Post Keynesian Economics |
| By: | Ondøej Lopušník (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | This paper deals with the so called problem of reconciliation, a contentious and puzzling issue in Post Keynesian monetary theory. The crux of the matter is the question of mechanisms that would reconcile the loan-created supply of deposits with the willingness of agents to hold these deposits. The paper reviews and comments on the solutions proposed so far and argues that the reconciliation problem might not be eliminated entirely. The argument is twofold. First, it is argued that the income multiplier and Kaldor-Trevithick reflux mechanism cannot do the trick. Second, certain factors affecting the mechanism based on changes in relative interest rate differentials are identified that might preclude the mechanism from working as envisaged by its proponents. If this is the case, what we are left with is the concept of convenience lending. |
| Keywords: | convenience lending, endogenous money, Post Keynesian economics, reconciliation problem |
| JEL: | B50 E12 E51 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2011_12&r=pke |
| By: | Selcuk Eren; Thomas Masterson; Edward Wolff; Ajit Zacharias |
| Abstract: | We construct estimates of the Levy Institute Measure of Economic Well-Being for Great Britain for the years 1995 and 2005. We also produce estimates of the official British measures HBAI (from the Department for Work and Pensions annual report titled "Households below Average Income") and ROI (from the Office of National Statistics Redistribution of Income analysis). We analyze overall trends in the level and distribution of household well-being using all three measures for Great Britain as a whole and for subgroups of the British population. Gains in household economic well-being between 1995 and 2005 vary by the measure used, from 23 percent (HBAI) to 32 percent (LIMEW) and 35 percent (ROI). LIMEW shows that much of the middle class’s gain in well-being was as a result of increases in government expenditures. LIMEW also marks a greater increase in economic well-being among elderly households due to the increase in their net worth. The redistributive effect of net government expenditures decreased notably between 1995 and 2005 according to the official measures, primarily due to the change in the distributive impact of government expenditures. |
| Keywords: | Levy Institute Measure of Economic Well-being (LIMEW); Great Britain; Economic Well-Being; Economic Inequality; Household Income Measures |
| JEL: | D31 D63 P17 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_667&r=pke |
| By: | David Fields; Matías Vernengo |
| Abstract: | This paper suggests that the dollar is not threatened as the hegemonic international currency, and that most analysts are incapable of understanding the resilience of the dollar, not only because they ignore the theories of monetary hegemonic stability or what, more recently, has been termed the geography of money; but also as a result of an incomplete understanding of what a monetary hegemon does. The hegemon is not required to maintain credible macroeconomic policies (i.e., fiscally contractionary policies to maintain the value of the currency), but rather to provide an asset free of the risk of default. It is argued that the current crisis in Europe illustrates why the euro is not a real contender for hegemony in the near future. |
| Keywords: | Dollar; Euro; International Currency |
| JEL: | F31 F33 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_666&r=pke |
| By: | Andrew E. Clark (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, IZA - Institute for the Study of Labor - IZA, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris); Carine Milcent (EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris) |
| Abstract: | This paper uses an unusual administrative dataset covering the universe of French hospitals to consider hospital employment: this is consistently higher in public hospitals than in Not-For-Profit or private hospitals, even controlling for many measures of hospital output (such as the type of operations and care provided, and the bed capacity rate). Public-hospital employment is positively correlated with the local unemployment rate, whereas no relationship is found in non-Public hospitals. This is consistent with public hospitals providing employment in depressed areas. We appeal to the Political Science literature and calculate local political allegiance, using expert evaluations on various parties political positions and local election results. The relationship between public hospital employment and local unemployment is stronger the more left-wing the local municipality. This latter result holds especially when electoral races are tight, consistent with a concern for re-election. |
| Keywords: | hospitals ; public employment ; overmanning ; political preferences |
| Date: | 2011–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00586792&r=pke |
| By: | Alan B. Krueger; Ilyana Kuziemko |
| Abstract: | Most existing work on the price elasticity of demand for health insurance focuses on employees’ decisions to enroll in employer-provided plans. Yet any attempt to achieve universal coverage must focus on the uninsured, the vast majority of whom are not offered employer-sponsored insurance. In the summer of 2008, we conducted a survey experiment to assess the willingness to pay for a health plan among a large sample of uninsured Americans. The experiment yields price elasticities substantially greater than those found in most previous studies. We use these results to estimate coverage expansion under the Affordable Care Act, with and without an individual mandate. We estimate that 39 million uninsured individuals would gain coverage and find limited evidence of adverse selection. |
| JEL: | H51 I11 I18 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16978&r=pke |