nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2014‒03‒01
seven papers chosen by
Karl Petrick
Western New England University

  1. Yes, it’s the economy, stupid, but is it demand or supply? By De Grauwe, Paul
  2. Richard Titmuss: Forty years on By Howard Glennerster
  3. The Effects of the Massachusetts Health Reform on Financial Distress By Mazumder, Bhashkar; Miller, Sarah
  4. "Crowding in"and the returns to government investment in low-income countries By Eden, Maya; Kraay, Aart
  5. Liberal Pessimism: International Relations Theory and the Emerging Powers By Stephan Haggard
  6. A European Glass-Steagall to preserve the single market By Lannoo, Karel
  7. A systemic view of the soft power By Andrey A. Kudryavtsev

  1. By: De Grauwe, Paul
    Abstract: Paul De Grauwe writes in this new CEPS Commentary that the recent and surprising conversion of François Hollande to supply-side economics completes the victory of the northern European policy-makers who believe that insufficient aggregate demand should be fought exclusively by supply-side measures. In his view, however, it is not the first time in post-war history that economists and policy-makers apply the wrong medicine; or to put it differently, it's akin to some generals who fight a new war by applying the strategies developed for the previous war.
    Date: 2014–01
  2. By: Howard Glennerster
    Abstract: Richard Titmuss was one of the world's leading public analysts and philosophers. He was highly influential in shaping the post-war welfare state and created the subject we now call social policy. What would he make of the present state of welfare? This lecture reflects on the man and the times which shaped his ideas. What is his legacy forty years on from his death? Which of his ideas have lasted and which have proved less durable? What gaps were there in his world view?
    Keywords: social policy, Titmuss, well-being
    JEL: I38
    Date: 2014–02
  3. By: Mazumder, Bhashkar (Federal Reserve Bank of Chicago); Miller, Sarah (University of Notre Dame)
    Abstract: A major benefit of health insurance coverage is that it protects the insured from unexpected medical costs that may devastate their personal finances. In this paper, we use detailed credit report information on a large panel of individuals to examine the effect of a major health care reform in Massachusetts in 2006 on a broad set of financial outcomes. The Massachusetts model served as the basis for the Affordable Care Act and allows us to examine the effect of coverage on financial outcomes for the entire population of the uninsured, not just those with very low incomes. We exploit plausibly exogenous variation in the impact of the reform across counties and age groups using levels of pre-reform insurance coverage as a measure of the potential effect of the reform. We find that the reform reduced the total amount of debt that was past due, the fraction of all debt that was past due, improved credit scores and reduced personal bankruptcies. We also find suggestive evidence that the reform lowered the total amount of debt and decreased third party collections. The effects are most pronounced for individuals who had limited access to credit markets before the reform. These results show that health care reform has implications that extend well beyond the health and health care utilization of those who gain insurance coverage.
    Keywords: Health care reform; health insurance; financial distress
    JEL: H75 I11 I13
    Date: 2014–01–23
  4. By: Eden, Maya; Kraay, Aart
    Abstract: This paper estimates the effect of government investment on private investment in a sample of 39 low-income countries. Fluctuations in a predetermined component of disbursements on loans from official creditors to developing country governments are used as an instrument for fluctuations in public investment. The analysis finds evidence of"crowding in": an extra dollar of government investment raises private investment by roughly two dollars, and output by 1.5 dollars. To understand the implications for the return to public investment, a CES production function with public and private capital as inputs is calibrated. For most countries in the sample, the returns to government investment exceed the world interest rate. However, for some countries that already have high government investment rates, the return to further investment is below the world interest rate.
    Keywords: Debt Markets,Investment and Investment Climate,Access to Finance,Non Bank Financial Institutions,Emerging Markets
    Date: 2014–02–01
  5. By: Stephan Haggard
    Abstract: The triumphalism of the immediate post-Cold War period in the United States has faded, and concern about decline has returned. In the field of international relations, the return of power transition models is exemplary of the new mood. This article argues that realist models misjudge the source of foreign policy risks for the United States and its allies. Rather, the standard canon of liberal international relations theory also suggests sources of pessimism. These include the enduring nature of authoritarian rule, the difficulty of coordinating emerging actors through existing international institutions, and the ambiguous effects of increased interdependence on the foreign policy behaviour and leverage of emerging powers.
    Keywords: international relations theory; liberalism; international institutions; democratic peace, interdependence
  6. By: Lannoo, Karel
    Abstract: In his assessment of the EU proposal on banking structural reform, unveiled on January 29th, Karel Lannoo observes that the Commission must perform a delicate balancing act between preserving the single market and at the same time accommodating existing EU measures covering resolution and trading activities.
    Date: 2014–02
  7. By: Andrey A. Kudryavtsev
    Abstract: Soft power is a useful concept of political theory and sociology developed by J.S. Nye Jr. in 1990. However, this concept can be overly abstract and hence somewhat artificial. In particular, this concept has been criticized by other sources and points of view. This paper develops a more complex and systemic approach to the concept of soft power targeted to the field of international relations and aimed at being useful for decision-making. Such an approach could be used in other fields and provides alternative analytic possibilities.
    Date: 2014–02–12

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