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on Post Keynesian Economics |
| By: | Eric Tymoigne |
| Abstract: | The paper presents a financial approach to monetary analysis that links the credit and state theories of money. A premise of the functional approach to money is that "money is what money does." In this approach, monetary and mercantile mechanics are conflated, which leads to the conclusion that unconvertible monetary instruments are worthless. The financial approach to money strictly separates the two mechanics and argues that major monetary disruptions occurred when the two were conflated. Monetary instruments have always been promissory notes. As such, their financial characteristics are central to their value and liquidity. One of the main financial requirements of any monetary instrument is that it be redeemable at any time. As long as this is the case, the fair value of an unconvertible monetary instrument is its face value. While the functional approach does not recognize the centrality of redemption, the paper shows that redemption plays a critical role in the state and credit views of money. Payments due to issuer and/or convertibility on demand are central to the possibility of par circulation. The paper shows that this has major implications for monetary analysis, both in terms of understanding monetary history and in terms of performing monetary analysis. |
| Keywords: | Credit Theory of Money; State Theory of Money; Net Present Value; Monetary Systems |
| JEL: | E31 E42 G12 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_890&r=pke |
| By: | Margaret McMillan; Dani Rodrik; Claudia Sepulveda |
| Abstract: | Developing countries made considerable gains during the first decade of the 21st century. Their economies grew at unprecedented rates, resulting in large reductions in extreme poverty and a significant expansion of the middle class. But more recently that progress has slowed with an economic environment of lackluster global trade, not enough jobs coupled with skills mismatches, continued globalization and technological change, greater income inequality, unprecedented population aging in richer countries, and youth bulges in the poorer ones. This essay examines how seven key countries fared from 1990-2010 in their development quest. The sample includes seven developing countries—Botswana, Ghana, Nigeria, Zambia, India, Vietnam and Brazil —all of which experienced rapid growth in recent years, but for different reasons. The patterns of growth are analyzed in each of these countries using a unifying framework which draws a distinction between the “structural transformation” and “fundamentals” challenge in growth. Out of these seven countries, the traditional path to rapid growth of export oriented industrialization only played a significant role in Vietnam. |
| JEL: | O11 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23378&r=pke |
| By: | Yoann Verger (INRA - Institut National de la Recherche Agronomique) |
| Abstract: | Sraffa et Leontief sont souvent présentés comme deux auteurs proches en termes de théorie économique; cet article fait le point sur cette supposée proximité, en se penchant sur l'estime réciproque que se portaient Sraffa et Leontief, et en décrivant rapidement les présupposés théoriques à la base de leurs modèles. |
| Keywords: | Sraffa,Leontief,Input-output model,Neoclassical,Distribution,Price |
| Date: | 2017–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01511140&r=pke |
| By: | Daniel Gay |
| Abstract: | The United Nations Committee for Development Policy (CDP) comprises 24 independent specialists from a variety of disciplines. It advises the UN Economic and Social Council on emerging economic, social and environmental issues relevant to sustainable development and international co-operation. The paper argues that since its launch in 1965 the CDP has at times struggled to make an impact, but that it has been most effective when it has been at its most creative and when it has broken with convention. It helped put into practice the target that developed countries should devote 0.7% of their gross national income to official development assistance. The Committee created the least developed countries category and continues to monitor and update membership of the group. Its members were prominent in the genesis of the human development approach and continue to conduct new work in the areas of governance, productive capacity and sustainable development. |
| Keywords: | aid, human development, least developed countries, official development assistance, sustainable development, United Nations |
| JEL: | F02 N01 O1 O2 O15 O19 |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:une:cpaper:036&r=pke |
| By: | Enste, Dominik |
| Abstract: | Donald Trump is now the 45th president of the USA. Behavioral economics can explain why he was successful even though his positions are somewhat controversial. Furthermore, his success raises critical implications for Europe's next elections. Some of the main reasons for the success of populist politicians are explained. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:72017&r=pke |
| By: | von Weizsäcker, Carl Christian (Center for Mathematical Economics, Bielefeld University) |
| Date: | 2017–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:bie:wpaper:1&r=pke |
| By: | Simon Burgess (Department of Economics, University of Bristol); Claire Crawford (Department of Economics, University of Warwick and Institute of Fiscal Studies); Lindsey Macmillan (Department of Social Science, University College London) |
| Abstract: | One of the main motivations given for the proposed new expansion of grammar schools in England is to improve social mobility. We assess the role of existing grammar schools in promoting social mobility by examining a) access to grammar schools, differentiating among the 85 per cent non-poor pupils, and b) the higher education outcomes of those who attend a grammar school relative to those who just miss out and relative to those who attend similar schools in non-selective areas. We find stark differences in grammar school attendance within selective areas by SES, even when comparing pupils with the same Key Stage 2 attainment. We also find that grammar school pupils are more likely to participate in higher education, and attend a high-status university than those who just miss out in selective areas. However, conditional on attendance and prior attainment, they do not perform as well at university. Worryingly, those who miss out on grammar places in selective areas who are high-attaining at primary school are significantly less likely to participate in university, attend a high-status university or achieve a good degree classification compared to equivalent pupils in non-selective areas. This highlights the harm that selective systems cause to those who do not make it into grammar schools. Taken together, these inequalities in access and outcomes suggest that grammar schools do not promote social mobility and actually work against it. |
| Keywords: | Grammar schools; Social mobility |
| JEL: | I20 I24 |
| Date: | 2017–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:qss:dqsswp:1709&r=pke |
| By: | Niels Johannesen; Thomas Tørsløv; Ludvig Wier |
| Abstract: | We use a global dataset with information on 210,000 corporations in 102 countries to investigate whether cross-border profit shifting by multinational firms is more prevalent in less developed countries. We propose a novel technique to study aggressive profit shifting and improve the credibility of existing techniques.Our results consistently show that the sensitivity of reported profits to profit-shifting incentives is negatively related to the level of economic and institutional development. This may explain why many developing countries opt for low corporate tax rates in spite of urgent revenue needs and severe constraints on the use of other tax bases. |
| Keywords: | International business enterprises, Tax evasion, Taxation |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2016-010b&r=pke |
| By: | Nora Lustig |
| Abstract: | Using comparable fiscal incidence analysis, this paper examines the impact of fiscal policy on inequality and poverty in 25 countries for around 2010. Success in fiscal redistribution is driven primarily by redistributive effort (share of social spending to GDP in each country) and the extent to which transfers/subsidies are targeted at the poor and direct taxes targeted at the rich. While fiscal policy always reduces inequality, this is not the case with poverty. Fiscal policy increases poverty in 4 countries using a US$1.25/day PPP poverty line, in 8 countries using a US$2.50/day line, and in 15 countries using a US$4/day line (over and above market income poverty). Net direct taxes are always equalizing and net indirect taxes are equalizing in 17 of the 25 countries. While spending on pre-school and primary school is pro-poor (i.e. the per capita transfer declines with income) in almost all countries, pro-poor secondary school spending is less prevalent, and tertiary education spending tends to be progressive only in relative terms (i.e. equalizing but not pro-poor). Health spending is always equalizing. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2016-164a&r=pke |