nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2015‒05‒02
six papers chosen by
Karl Petrick
Western New England University

  1. The Future of Development Aid in a Globalizing World with Climate Change By Hübler, Michael
  2. Eyes wide shut: John Rawls's silence on racial justice By Ai-Thu Dang
  3. Monnet's Error By Luigi Guiso; Paola Sapienza; Luigi Zingales
  4. "Expanding employment opportunities: Embedding "Human Utilisation" in the Post-2015 MDGs", in Tanuka, E., S. Mazumdar and M. Sengupta ed.,Human Development in the Global South: Emerging perspectives in the era of Post-Millennium goals, Institute of Human Development, New Delhi By Amjad, Rashid
  5. The Paradox of Corporate Social Responsibility in Africa: Case of French Multinational Corporations By Ollong, Kingsly Awang
  6. Mozart or Pelé? The effects of teenagers’ participation in music and sports By Cabane, Charlotte; Hille, Adrian; Lechner, Michael

  1. By: Hübler, Michael
    Abstract: This essay reviews the state of knowledge about the connection of climate change and development aid in a globalizing world and makes three contributions. First, it opts for an integrated treatment of short-term aid, striving for the urgent fulfillment of basic human needs, and long-term aid, striving for economic development and self-dependence. Against the background of environmental degradation and climate change, it opts for an integrated treatment of the human-society-economy dimension and the biodiversity-nature-earth dimension as well. Second, it proposes a “global insurance for survivalâ€, for which everybody on earth is eligible. Besides, it advocates the creation of a direct link between foreign aid and foreign direct investment, associated with international technology diffusion. Economic activities should be backed up by a global legal system focusing on labor, the environment and innovation. Within this system, everybody should be able to claim against firms at an international court. The legal system relaxes intellectual property rights of life-essential and environmentally friendly products in order to enhance technology diffusion. Third, this essay suggests to finance the integrated system of development aid via a globally unified tax imposed on all people and firms on earth above a threshold income level. As a central novel element, the allocation of aid project funding occurs on a market base with the help of a certificate trading system. This mechanism achieves efficiency and flexibility across the aid dimensions identified in the first step.
    Keywords: foreign aid, foreign direct investment, absorptive capacity, certificate trading
    JEL: H23 F23 F35
    Date: 2014–12
  2. By: Ai-Thu Dang (Centre d'Economie de la Sorbonne)
    Abstract: John Rawls's remarks on race are sparse in his writings. However, three key moments in his conceptual apparatus wherein racial issues appear explicitly can be be highlighted: (1) the status of race as a feature of the veil of ignorance; (2) racial minorities, the least advantaged, and the difference principle; and (3) the role of arguments made by antebellum abolitionist dissidents and Martin Luther King, Jr., in favor of racial equality in his reformulation of his notion of public reason. I show that the introduction of race poses difficulties for Rawls in his theory of justice. I also propose an explanation of why Rawls does not address issues of racial justice more explicitly and in-depth. However, because Rawls himself explained his relative silence on racial justice, I discuss its relevance. I contend that Rawls's conception of justice as fairness as a form of political liberalism is indebted to a strong principle of equal citizenship for all individuals that is blind to race and ethnicity, so his theoretical apparatus addresses the issue of legal racial discrimination or institutional racism. Nevertheless, it fails to address the problem of systemic racial discrimination
    Keywords: John Rawls; justice as fairness; racial (in)justice; public reason; ideal and nonideal theory
    JEL: A12 B41 D63
    Date: 2015–04
  3. By: Luigi Guiso (EIEF and CEPR); Paola Sapienza (Northwestern University, NBER and CEPR); Luigi Zingales (University of Chicago, NBER and CEPR)
    Abstract: Entering a currency union without any political union European countries have taken a gamble: will the needs of the currency union force a political integration (as anticipated by Monnet) or will the tensions create a backlash, as suggested by Kaldor, Friedman and many others? We try to answer this question by analyzing the cross sectional and time series variation in pro-European sentiments in the EU 15 countries. The 1992 Maastricht Treaty seems to have reduced the pro-Europe sentiment as does the 2010 Eurozone crisis. Yet, in spite of the worst recession in recent history, the Europeans still support the common currency. Europe seems trapped: there is no desire to go backward, no interest in going forward, but it is economically unsustainable to stay still.
    Date: 2015
  4. By: Amjad, Rashid
    Abstract: The basic premise of this paper is that, while we have moved closer to achieving some of the MDGs by 2015 hardly any progress has been made towards the better utilization of existing human resources especially for young men and women entering the work force (Target 1B). The papers main argument is that one important way of doing this would be to raise an additional overarching pillar – that of “human utilization” (as was done earlier for “human development”). This would help focus attention on the urgent need to provide more and better employment opportunities.
    Keywords: MDGs, Employment, Human Utilisation, Human Development
    JEL: J0 J08
    Date: 2015
  5. By: Ollong, Kingsly Awang
    Abstract: In the context of globalisation Africa requires investment by multinational corporations (MNCs) to improve its competitiveness and to facilitate micro-level structural changes required for alleviating poverty and reducing its riskiness for investment. Economic theory recognises that MNCs can contribute to economic growth in developing countries through generating positive externalities. However, the extent to which Africa benefits from spill-over effects of MNCs remains to be empirically investigated. While some multinational corporations that operate in Africa take the corporate social responsibility (CSR) policies seriously, on the other hand there had been several complaints in many African countries on how these French multinational corporations conduct business within the continent. Thus, this paper intends to analyse the various paradoxes that are surrounding the activities of French multinational companies operating in Africa.
    Keywords: corporate social responsibility, MNC, paradox, under development, exploitation, conflicts, corruption and environmental degradation
    JEL: M00 M10
    Date: 2014–12–01
  6. By: Cabane, Charlotte; Hille, Adrian; Lechner, Michael
    Abstract: Using data from the German Socio-Economic Panel, this paper analyses the effects of spending part of adolescents’ leisure time on playing music or doing sports, or both. We find that while playing music fosters educational outcomes compared to doing sports, par-ticularly so for girls and children from more highly educated families, doing sports improves subjective health. For educational outcomes, doing both activities ap¬peared to be most successful. The results are subjected to an extensive ro¬bustness analysis including instru-mental variable estimation and a formal sensitivity analysis of the identifying assumptions, which does not reveal any serious problems.
    Keywords: child development; leisure time activities; matching estimation; SOEP
    JEL: C21 I12 I18 J24 L83
    Date: 2015–04

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