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- VolverÃ© y serÃ© 900 millones
by Fernando Esponda in Razones y personas: repensando Uruguay, 2019-05-23 11:22:00 UTC
Sobre el shock de austeridad de Lacalle Pou Por Fernando Esponda El grito de Túpac Katari Allá por noviembre de 1781 Julián Apaza, mejor conocido como Túpac Katari, líder del mayor levantamiento indígena del siglo XVIII, fue apresado en el Alto Perú por el ejército español. En una decisión digna de Gavazzo, el juez Francisco Tadeo Diez de Medina lo condenó a morir descuartizado por cuatro caballos que tiraban en direcciones opuestas. Antes de morir pronunció una frase que quedó para la posteridad: “Podrán matarme… pero volveré y seré millones”. Posteriormente, Howard Fast puso la expresión en [...]
- Explorando los cambios de la pobreza en Argentina: 2003-2015
by Leopoldo Tornarolli in Foco Económico, 2019-05-22 21:12:45 UTC
Leopoldo Tornarolli, con Jessica Bracco y Leonardo Gasparini
En las últimas décadas Argentina experimentó cambios marcados en sus niveles de pobreza. Conocer las razones de esa dinámica es de enorme relevancia, tanto desde un punto de vista académico, como para la política pública. Sin embargo, ciertas dificultades metodológicas impiden identificar con precisión los factores causales profundos de los cambios en la pobreza. En este trabajo aportamos evidencia empírica parcial que, leída en su conjunto y acompañada de teoría, contribuye a entender la dinámica de este fenómeno comple [...]
- Â¿Puede la polÃtica monetaria reducir la desigualdad reactivando el empleo?
by admin in Nada Es Gratis, 2019-05-21 05:07:48 UTC
de Natalia Martín-Fuentes
El pasado 10 de abril , Mario Draghi aparecía junto a Luis de Guindos para hacer la habitual comunicación que sucede a las reuniones del Consejo de Gobierno del BCE. En apenas diez minutos, las alusiones al empleo fueron varias. Como ya viene siendo costumbre, una de ellas se encargaba de recordar a los países de la eurozona la necesidad de aplicar reformas estructurales para reducir el desempleo (entre otros objetivos), y remarcaba las limitaciones de la política monetaria: “In order to reap the full benefits from our monetary policy measures, other policy areas mus [...]
- How inequality makes us poorer
by chris in Stumbling and Mumbling, 2019-05-17 12:31:43 UTC
I welcome the Deaton report into inequality . I especially like its emphasis (pdf) upon the causes of inequality:
To understand whether inequality is a problem, we need to understand the sources of inequality, views of what is fair and the implications of inequality as well as the levels of inequality. Are present levels of inequalities due to well-deserved rewards or to unfair bargaining power, regulatory failure or political capture?
I fear, however, that there might be something missing here – the impact that inequality has upon economic performance.
My chart shows the point. It shows th [...]
- El reparto de los ingresos por retransmisiones deportivas
by admin in Nada Es Gratis, 2019-05-17 05:00:10 UTC
de Gustavo Bergantiños y Juan D. Moreno-Ternero
Someone said to me 'To you football is a matter of life or death!' and I said 'Listen, it's more important than that'. Bill Shankly
El nivel adecuado de intervencionismo estatal es siempre materia de agitados y tensos debates dentro y (sobre todo) fuera del ámbito académico. Multitud de actividades se someten al escrutinio de una posible intervención estatal por parte de detractores y defensores. No obstante, es plausible suponer que unos y otros estarían de acuerdo en excluir al negocio del fútbol como una de estas actividades susceptibles de [...]
- Solving Traffic Congestion: A Plan for New York City
by Jason Barr in Building the skyline, 2019-05-16 12:35:07 UTC
Jason M. Barr May 16, 2019
Congestion Pricing for Manhattan
This past April, New York State passed a law allowing congestion pricing in Manhattan. It will take effect sometime by the end of 2020. Drivers will be charged a fee, likely around $14, to enter the island south of 60 th Street. The plan, similar to those already in effect in London and Stockholm, aims to reduce the number of cars and generate revenue for mass transit improvements. Implementation in European cities shows that it can work . And while the congestion pricing plan is reasonable and likely to succeed in its direct [...]
- Thesis Thursday: Kevin Momanyi
by Chris Sampson in The Academic Health Economists' Blog, 2019-05-16 06:00:19 UTC
On the third Thursday of every month, we speak to a recent graduate about their thesis and their studies. This month’s guest is Dr Kevin Momanyi who has a PhD from the University of Aberdeen . If you would like to suggest a candidate for an upcoming Thesis Thursday, get in touch .
Title Enhancing quality in social care through economic analysis Supervisors Paul McNamee Repository link http://digitool.abdn.ac.uk/webclient/DeliveryManager?pid=240815
What are reablement and telecare services and why should economists study them?
Reablement and telecare are two types of services within h [...]
- Elecciones Europeas 2019: Una nueva oportunidad para las polÃticas sociales y de empleo
by Juan Francisco Jimeno in Nada Es Gratis, 2019-05-16 05:07:27 UTC
En el pasado he escrito sobre la necesidad de reconsiderar las políticas sociales y de empleo de las instituciones europeas (ver, por ejemplo, aquí , aquí , aquí o aquí ). Recientemente, en un breve comentario publicado en IZA World of Labor con motivo de las próximas elecciones europeas, he recordado cómo debería abordarse la reforma de dichas políticas. Lo que sigue es la traducción (liberal, que no literal) de ese comentario al castellano.
Después de las próximas elecciones europeas que se celebrarán el 26 de ma [...]
- Yale. Undergraduate Economic History of Europe. Cohen, 1972
by Irwin Collier in Economics in the Rear-View Mirror, 2019-05-15 21:04:08 UTC
Today’s post is the course outline with readings for the undergraduate course on the economic history of Europe since the Industrial Revolution that I took at Yale during the Spring semester of my junior year (1972). The course was taught by assistant professor Jon S. Cohen .
From the perspective of today it is hard to imagine the sheer abundance of courses in economic history offered at that time. I have already posted the course outlines for Harry Miskimin’s course on the Economic History of Europe through the Industrial Revolution and William Parker’s course on U.S. Economic History, as [...]
- Some thoughts on job creation in India
by email@example.com (Urbanomics) in Urbanomics, 2019-05-14 21:34:00 UTC
What can be done to enhance productive job creation in the Indian economy, across sectors or within specific targeted sectors (like textiles)? The obvious immediate responses are infrastructure bottlenecks, enabling access to credit, and lower taxes. Policy response has been mainly in the form of establishing special economic zones and industrial parks, and offer fiscal concessions and input subsidies. In recent years, there has been a focus on enhancing the ease of doing business. While these are all important, and all of them are works in progress, there is little to suggest that these are [...]
- A SUMMARY OF PAPERS ON FIELDEXPERIMENTS.COM: ALL FIELD EXPERIMENTS POSTED
by maximorossi in NEP-LTV blog, 2019-05-14 14:47:07 UTC
- Do Economic Recessions âSqueeze the Middle-Classâ?
by maximorossi in NEP-LTV blog, 2019-05-14 14:46:16 UTC
Alberto Batinti ; Joan Costa-Font
We examine whether economic downturns reshape the distribution of population income giving rise to a “middle-class squeeze.” We test this hypothesis using alternative definitions of middle-class, such as income-based measures from the Luxembourg Income Study (LIS), and perceived measures from the Integrated Values Study (IVS). Our findings suggest that, although recessions do not produce a middle-class squeeze overall, the unanticipated shocks resulting from the Great Recession did. Furthermore, we find that recessions increase the share o [...]
- The Effects of Status Mobility and Group Identity on Trust
by maximorossi in NEP-LTV blog, 2019-05-14 14:45:18 UTC
Suchon, Rémi (University of Lyon 2); Villeval, Marie Claire (CNRS, GATE)
In a laboratory experiment we test the interaction effects of status and group identity on interpersonal trust. Natural group identity is generated by school affiliation. Status (expert or agent) is awarded based on relative performance in a math quiz that is ex ante less favorable to the subjects from one group. We find that “promoted” trustors (individuals from the disadvantaged group that nevertheless achieve the status of expert) trust less both in-group and out-group trustees, compared to the o [...]
- New ways to measure well-being? A first joint analysis of subjective and objective measures
by maximorossi in NEP-LTV blog, 2019-05-14 14:44:11 UTC
Andrén, Daniela (Örebro University School of Business); Clark, Andrew E. (Paris School of Economics); D’Ambrosio, Conchita (Université du Luxembourg); Karlsson, Sune (Örebro University School of Business); Pettersson, Nicklas (Örebro University School of Business)
Our study is, to our knowledge, the first joint analysis of subjective and objective measures of well-being. Using a rich longitudinal data from the mothers pregnancy until adulthood for a birth cohort of children who attended school in Örebro during the 1960s, we analyse in a first step how subjective (s [...]
- The Wrong Kind of AI? Artificial Intelligence and the Future of Labor Demand
by maximorossi in NEP-LTV blog, 2019-05-14 14:30:41 UTC
Acemoglu, Daron (MIT); Restrepo, Pascual (Boston University)
Artificial Intelligence is set to influence every aspect of our lives, not least the way production is organized. AI, as a technology platform, can automate tasks previously performed by labor or create new tasks and activities in which humans can be productively employed. Recent technological change has been biased towards automation, with insufficient focus on creating new tasks where labor can be productively employed. The consequences of this choice have been stagnating labor demand, declining labor share i [...]
- Wages, Experience and Training of Women over the Lifecycle
by maximorossi in NEP-LTV blog, 2019-05-14 14:29:39 UTC
Richard Blundell ; Monica Costa Dias ; David A. Goll ; Costas Meghir
We investigate the role of training in reducing the gender wage gap using the UK-BHPS which contains detailed records of training. Using policy changes over an 18 year period we identify the impact of training and work experience on wages, earnings and employment. Based on a lifecycle model and using reforms as a source of exogenous variation we evaluate the role of formal training and experience in defining the evolution of wages and employment careers, conditional on education. Training is potentially [...]
- The demand for bad policy when voters underappreciate equilibrium effects
by maximorossi in NEP-LTV blog, 2019-05-14 14:28:31 UTC
Dal Bó, Ernesto ; Dal Bó, Pedro ; Eyster, Erik
Most of the political-economy literature blames inefficient policies on institutions or politicians’ motives to supply bad policy, but voters may themselves be partially responsible by demanding bad policy. In this paper, we posit that voters may systematically err when assessing potential changes in policy by underappreciating how new policies lead to new equilibrium behavior. This biases voters towards policy changes that create direct benefits – welfare would rise if behavior were held constant – even if those reforms ulti [...]
- Economic inequality and subjective well-being across the world
by maximorossi in NEP-LTV blog, 2019-05-14 14:27:42 UTC
D’Ambrosio Conchita ; Clark Andrew
We here use repeated cross-section data from the Afrobarometer, Asianbarometer Latinobarometer, and Eurobarometer to analyse the variables that are correlated with both current and future evaluations of standards of living. These are related not only to an individualâ€ s own economic resources but also to the country distribution of resources.We consider resource comparisons (the gap in resources between richer and poorer individuals) and the normative evaluation of distribution (conditional on these gaps), given by the Gini coefficient. [...]
- Leverage and Deepening Business Cycle Skewness
by Christian Zimmermann in NEP-DGE blog, 2019-05-13 13:27:44 UTC
By Henrik Jensen, Ivan Petrella, Soren Ravn and Emiliano Santoro
We document that the U.S. and other G7 economies have been characterized by an increasingly negative business cycle asymmetry over the last three decades. This finding can be explained by the concurrent increase in the financial leverage of households and firms. To support this view, we devise and estimate a dynamic general equilibrium model with collateralized borrowing and occasionally binding credit constraints. Improved access to credit increases the likelihood that financial c [...]
- Rita Fariaâs journal round-up for 13th May 2019
by Rita Faria in The Academic Health Economists' Blog, 2019-05-13 11:00:26 UTC
Every Monday our authors provide a round-up of some of the most recently published peer reviewed articles from the field. We don’t cover everything, or even what’s most important – just a few papers that have interested the author. Visit our Resources page for links to more journals or follow the HealthEconBot . If you’d like to write one of our weekly journal round-ups, get in touch .
Communicating uncertainty about facts, numbers and science . Royal Society Open Science Published 8th May 2019
This remarkable paper by Anne Marthe van der Bles and colleagues, including the illustrious D [...]
- Firm and Worker Dynamics in an Aging Labor Market
by Christian Zimmermann in NEP-DGE blog, 2019-05-10 19:30:02 UTC
By Niklas Engbom
I develop an idea flows theory of firm and worker dynamics in order to assess the consequences of population aging. Older people are less likely to attempt entrepreneurship and switch employers because they have found better jobs. Consequently, aging reduces entry and worker mobility through a composition effect. In equilibrium, the lower entry rate implies fewer new, better job opportunities for workers, while the better matched labor market dissuades job creation and entry. Aging accounts for a large share of substantial decl [...]
- On media influence
by chris in Stumbling and Mumbling, 2019-05-09 15:09:28 UTC
Not everything that stinks causes disease. Yes, there is plenty wrong with the press and BBC, but how much influence does it actually have?
I ask because of Simon’s recent post blaming the media for the sheer incompetence of this government. I’m not so sure about this. The press has always had a right-wing bias, but we haven’t always had a government as lousy as this one. This alone tells us that other factors are at work: mechanisms that select for fanatics and against competence have strengthened in recent years.
Equally, it would be stretching things to blame the media for the rise of coar [...]
- Can regulation promote financial inclusion?
by Raian Divanbeigi in Let's Talk Development, 2019-05-09 13:24:00 UTC
Economic literature shows that financial systems support livelihood enhancement and economic development by offering savings, payment, credit and risk management services to households and firms. Saving accounts allow households to manage risk, absorb shocks, and plan for emergencies . Affordable financial services enable individuals to access health and education to improve their living standards. Access to payment mechanisms and checking accounts also support core business operations and boost productive investment and consumption. [...]
- Cleaning Up After Burnsâs Mess
by David Glasner in Uneasy Money, 2019-05-09 04:24:44 UTC
In my two recent posts ( here and here ) about Arthur Burns’s lamentable tenure as Chairman of the Federal Reserve System from 1970 to 1978, my main criticism of Burns has been that, apart from his willingness to subordinate monetary policy to the political interests of he who appointed him, Burns failed to understand that an incomes policy to restrain wages, thereby minimizing the tendency of disinflation to reduce employment, could not, in principle, reduce inflation if monetary restraint did not correspondingly reduce the growth of total spending and income. Inflationary (or employment-redu [...]
- Schumpeter on Knapp in his 1954 HEA
by Dirk in econoblog101, 2019-05-08 09:12:33 UTC
Having recently published a working paper on the academic reception of Knapp’s “ The State Theory of Money ” (1905), I was confused by the lack of good will shown by Joseph Schumpeter when he discussed the book. He claimed that Knapp did not examine the value of money, when Knapp explicitly rejected the concept of “value” in favor of talking about purchasing power. He also claimed that Knapp’s theory would be one of a monetary system when it was quite clearly not.
So, I thought that maybe later in his life – his History of Economic Analysis appeared in 1954 – Schumpeter would be more reasonabl [...]
- Method of the month: constrained randomisation
by Sam Watson in The Academic Health Economists' Blog, 2019-05-08 08:00:28 UTC
Once a month we discuss a particular research method that may be of interest to people working in health economics. We’ll consider widely used key methodologies, as well as more novel approaches. Our reviews are not designed to be comprehensive but provide an introduction to the method, its underlying principles, some applied examples, and where to find out more. If you’d like to write a post for this series, get in touch . This month’s method is constrained randomisation .
Randomised experimental studies are one of the best ways of estimating the causal effects of an interven [...]
- Child penalty to earnings
by Inaki Villanueva in Applied economist, 2019-05-07 10:39:00 UTC
This paper ( here too ) adds empirical evidence onto the different impacts child penalties have in earnings on women and men. The earnings of men and women evolve similarly before parenthood — after adjusting for lifecycle and time trends — but diverge sharply after parenthood. Women experience a large, immediate and persistent drop in earnings after the birth of their first child, while men are essentially unaffected. Ten years after child birth, women have not recovered and at this point the series have plateaued. Countries differ on the impact on women but all of the analysed nations showe [...]
- Premio a la MacroeconomÃa joven: Emi Nakamura galardonada con la Clark Medal 2019
by Juan Francisco Jimeno in Nada Es Gratis, 2019-05-07 05:07:14 UTC
La American Economic Association (AEA) premia con la John Bates Clark Medal a economistas menores de 40 años que hayan hecho una contribución relevante al pensamiento y al conocimiento económicos. Creado en 1947, este reconocimiento se concedió cada dos años hasta 2010 y anualmente desde entonces. Se trata del premio para economistas jóvenes de mayor prestigio y se considera una antesala del Premio Nobel de Economía.
En otras entradas (por ejemplo, aquí y aquí ) hemos presentado a ganadores de ediciones anteriores de la Clark Medal . En esta ocasión, la galardonada es Emi Nakamura , Ph.D. po [...]
- HM Athens: Greeks bearing gifts
by michael roberts in Michael Roberts Blog, 2019-05-06 13:19:32 UTC
The first Historical Materialism conference held in Athens was very well attended – making it the biggest of such events in southern Europe and with mostly younger attendees. As is usual with HM conferences, there was a plethora of papers and sessions on all sorts of subjects around the theme of the conference, Rethinking Crisis, Resistance and Strategy. It is not possible to review these in this post. Indeed, I am not even able to consider some very interesting papers in the political economy sessions in this review.
I am going to concentrate on the issues raised in the plenary session whe [...]
- G20 Â´Compact with AfricaÂ´: Audacity of Hope
by Shifting Wealth in ShiftingWealth, 2019-05-04 13:00:00 UTC
The Compact with Africa (CwA)  initiative is the main pillar of the G20 Partnership with Africa. It initially started in March 2017 as an initiative of the G20 Finance Track to promote private investment in the African continent, with a focus on levering private infrastructure finance via blended finance to facilitate subsequent foreign direct investment (FDI) flows. Ludger Schuknecht and coauthors, then affiliated at top positions with the German ministries of finance and cooperation ministries, have succinctly outlined paradigm, motivation, work mechanics and objectives of the CwA  . T [...]
- Making Carbon Taxation a Generational Win Win
by Christian Zimmermann in NEP-DGE blog, 2019-05-02 17:49:32 UTC
By Laurence J. Kotlikoff, Felix Kubler, Andrey Polbin, Jeffrey D. Sachs and Simon Scheidegger
Carbon taxation has been studied primarily in social planner or infinitely lived agent models, which trade off the welfare of future and current generations. Such frameworks obscure the potential for carbon taxation to produce a generational win-win. This paper develops a large-scale, dynamic 55-period, OLG model to calculate the carbon tax policy delivering the highest uniform welfare gain to all generations. The OLG framework, with its selfish gen [...]
- Quotation of the Dayâ¦
by Don Boudreaux in Cafe Hayek, 2019-05-02 08:45:07 UTC
Tweet … is from pages 23-24 of my Mercatus Center colleague Matthew Mitchell’s 2014 paper “ The Pathology of Privilege: The Economic Consequences of Government Favoritism ” (footnotes deleted; links added):
For example, economist Chun-Lei Yang has shown that as rent-seeking activities grow more prevalent, firms have less of an incentive to invest in productivity-enhancing research and development. Thus, privileged firms are less likely to innovate.
Empirical research supports this claim. For example economists Stefanie Lenway, Randall Morck, and Bernard Yeung studied a deca [...]
- The Price of Everything, the Value of the Economy: A Nobel for Emi Nakamura!
by afinetheorem in A Fine Theorem, 2019-05-01 17:03:58 UTC
Fantastic and well-deserved news this morning with the Clark Medal being awarded to Emi Nakamura , who has recently moved from Columbia to Berkeley. Incredibly, Nakamura’s award is the first Clark to go to a macroeconomist in the 21st century. The Great Recession, the massive changes in global trade patterns, the rise of monetary areas like the Eurozone, the “savings glut” and its effect on interest rates, the change in openness to hot financial flows: it has been a wild twenty years for the macroeconomy in the two decades since Andrei Schleifer won the Clark. It’s hard to imagine what coul [...]
- Air Conditioners Could Help Save the Planet? Cool.
by ? in Environment | Mother Jones, 2019-05-01 10:00:25 UTC
This story was originally published by Wired and is shared here as part of the Climate Desk collaboration.
Earth’s climate is full of terrifying feedback loops: Decreased rainfall raises the risk of wildfires, which release yet more c [...]
- La polÃtica de drogas y el contrato social en Colombia
by Ana Arjona y Tatiana MartÃnez Ferro in Foco Económico, 2019-04-30 20:54:55 UTC
Colombia enfrenta retos muy difíciles para lograr una paz sostenible. De un lado, el país debe lograr la recuperación de los territorios afectados por un largo conflicto armado. Aún si con la desmovilización de las FARC hubieran desaparecido por completo los actores armados ilegales, los retos serían enormes. Dado que diferentes grupos armados no estatales siguen operando en buena parte del país, tales como los grupos criminales, las disidencias de las FARC y el ELN, lograr la pacificación y la recuperación de los territorios que durante años han padecido los efectos de la violencia es aún más [...]
- What if Air Conditioners Could Help Save the Planet Instead of Destroying It?
by ? in Webmonkey, 2019-04-30 15:00:00 UTC
Scientists propose a framework for modifying AC units to suck in CO2 and spit out fuels for use in vehicles like cargo ships. [...]
- Revisiting 1916 (Part III): New Yorkâs First Zoning Resolution and the Roots of NIMBYism
by Jason Barr in Building the skyline, 2019-04-30 12:42:15 UTC
Jason M. Barr April 30, 2019
[Note that this is the third part of a three-part series on New York City’s first comprehensive land use regulations, enacted in 1916. Part I focuses on the history and thinking of the city’s reformers. Part II reviews this thinking through the lens of modern economic analysis. This post argues that the ideas and rules from 1916 set the stage for today’s NIMBYism and housing affordability problems.]
Zoning looks to the future and is not so much intended to cure past errors as to prevent future invasions by improper buildings and uses. Zoning seeks to protect a [...]
- PerchÃ© le aziende non amano il part-time
by Francesco Devicienti in La Voce, 2019-04-30 10:18:31 UTC
Le statistiche rivelano che il lavoro part-time è meno produttivo ed è pagato di più: per questo le aziende spesso non lo concedono. Ma è uno strumento fondamentale di conciliazione vita-lavoro. Occorre perciò che lo stato lo agevoli con alcune misure.
È una storia già sentita: un lavoratore richiede il passaggio da un orario di lavoro a tempo pieno a uno a tempo parziale e si vede negata la richiesta. A parte l’evidenza aneddotica, la conferma arriva da svariati studi .
Perché le imprese non concedono contratti part-time a chi li richiede? Le spiegazioni sono molteplici, ma sostanzialmente ri [...]
- PolÃtica macroprudencial en Europa y el caso de EspaÃ±a
by Javier Ferri in Nada Es Gratis, 2019-04-30 05:07:23 UTC
Por Margarita Rubio y Javier Ferri
La crisis financiera apuntó con toda crudeza hacia la necesidad de reforzar las medidas para asegurar la estabilidad financiera y minimizar el riesgo sistémico en las economías. Ese es el origen de las políticas macroprudenciales que José Luis Peydró nos introdujo aquí . En esta entrada pretendemos dar una visión general del estado de las políticas macroprudenciales en Europa, dadas las circunstancias particulares que concurren en una unión monetaria, y comentar su aplicación en España.
En una unión monetaria que se encamina hacia una unión bancaria, el cont [...]
- The difference between two colourful bits of rectangular paper
by JP Koning in Moneyness, 2019-04-29 15:06:00 UTC
David Andolfatto had a provocative and open-ended tweet a few days back: The difference between money and debt. pic.twitter.com/CSQuLzUJPU — David Andolfatto (@dandolfa) April 26, 2019 We see two coloured pieces of paper, both with an old dead President on it. They each have a face value of $500. Both are issued by a branch of the government, the $500 McKinley banknote (at right) by the Federal Reserve while the $500 Treasury bond (at left) by the Treasury. Both are bearer instrument: anyone can use them. So why do we bestow one of them the special term "money" while the other is "credit"? I m [...]
- Female Earnings Inequality: The Changing Role of Family Characteristics on the Extensive and Intensive Margins
by maximorossi in NEP-LTV blog, 2019-04-29 14:06:49 UTC
David Card ; Dean R. Hyslop
Although women make up nearly half the U.S. workforce, most studies of earnings inequality focus on men. This is at least in part because of the complexity of modeling both the decision to work (i.e., the extensive margin) and the level of earnings conditional on work (the intensive margin). In this paper we document a series of descriptive facts about female earnings inequality using data for three cohorts in the PSID. We show that inequality in annual earnings of women fell sharply between the late 1960s and the mid-1990s, with a particularly [...]
- Perspectives on Poverty in Europe
by maximorossi in NEP-LTV blog, 2019-04-29 14:05:17 UTC
Jenkins, Stephen P. (London School of Economics)
I address four topics: how our capacities to monitor poverty in Europe have improved substantially over recent decades; how progress on EU poverty reduction has been disappointing and why this has been; conceptual and measurement issues; and the future direction of EU-level anti-poverty actions. I follow in the footsteps of a giant – my perspectives are essentially elaborations of points made by Tony Atkinson.
poverty, material deprivation, Europe, EU-SILC
C81 D31 I32
- Revealing Stereotypes: Evidence from Immigrants in Schools
by maximorossi in NEP-LTV blog, 2019-04-29 14:04:37 UTC
Alesina, Alberto (Harvard University); Carlana, Michela (Harvard Kennedy School); La Ferrara, Eliana (Bocconi University); Pinotti, Paolo (Bocconi University)
If individuals become aware of their stereotypes, do they change their behavior? We study this question in the context of teachers’ bias in grading immigrants and native children in middle schools. Teachers give lower grades to immigrant students compared to natives who have the same performance on standardized, blindly-graded tests. We then relate differences in grading to teachers’ stereotypes, elicited throu [...]
- How Valid are Synthetic Panel Estimates of Poverty Dynamics?
by maximorossi in NEP-LTV blog, 2019-04-29 14:02:10 UTC
Nicolas Herault (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Stephen P. Jenkins (London School of Economics, Institute for Social and Economic Research, University of Essex, Institute for the Study of Labor (IZA))
A growing literature uses repeated cross-section surveys to derive ‘synthetic panel’ data estimates of poverty dynamics statistics. It builds on the pioneering study by Dang, Lanjouw, Luoto, and McKenzie (Journal of Development Economics, 2014) providing bounds estimates and the innovative refinement proposed by Dang a [...]
- Educational Upgrading and Returns to Skills in Latin America: Evidence from a Supply-Demand Framework, 1990-2010
by maximorossi in NEP-LTV blog, 2019-04-29 14:00:46 UTC
Leonardo Gasparini (CEDLAS-FCE-UNLP & CONICET); Sebastián Galiani (University of Maryland); Guillermo Cruces (CEDLAS-FCE-UNLP & CONICET & IZA); Pablo Acosta (World Bank)
This paper documents the evolution of wage differentials and the supply of workers by educational level for sixteen Latin American countries over the period 1991- 2013. We find a pattern of rather constant rise in the relative supply of skilled and semiskilled workers over the period. Whereas the returns to secondary education fell over time, in contrast, the returns to tertiary education display a r [...]
- House Prices at Risk
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2019-04-29 12:35:08 UTC
“The one thing that I don’t see now compared with 2005-2007 (when the housing market turned the last time) is a lot of talk about speculative excess. The financial crisis of 10 years ago was a record setter, and we don’t expect things like that to repeat.” Robert Shiller, Bloomberg Interview , April 5, 2019. “Credit-financed housing price bubbles have emerged as a particularly dangerous phenomenon.” Òscar Jordà, Moritz Schularick and Alan M. Taylor, Leveraged Bubbles , 2015. Following the boom and bust of the 2000s, there is widespread agreement that residential real estate is a key source of [...]
- Labor Mobility in a Monetary Union
by Christian Zimmermann in NEP-DGE blog, 2019-04-27 12:48:16 UTC
By Daniela Hauser; Martin Seneca
The optimal currency literature has stressed the importance of labor mobility as a precondition for the success of monetary unions. But only a few studies formally link labor mobility to macroeconomic adjustment and policy. In this paper, we study macroeconomic dynamics and optimal monetary policy in an economy with cyclical labor flows across two distinct regions that share trade links and a common monetary framework. In our New Keynesian dynamic, stochastic, general-equilibrium model calibrated to the Unite [...]
- Fiscal Policy Multipliers in Small States
by Christian Zimmermann in NEP-DGE blog, 2019-04-25 03:20:23 UTC
By Ali Alichi, Ippei Shibata and Kadir Tanyeri
Government debt in many small states has risen beyond sustainable levels and some governments are considering fiscal consolidation. This paper estimates fiscal policy multipliers for small states using two distinct models: an empirical forecast error model with data from 23 small states across the world; and a Dynamic Stochastic General Equilibrium (DSGE) model calibrated to a hypothetical small state’s economy. The results suggest that fiscal policy using government current primary spending is i [...]
- Europe Not Feeling Much Pain From Trump Tariffs, Central Bank Says
by ? in Noozilla Top, 2019-04-24 07:30:13 UTC
A study by the European Central Bank says that tariffs on steel and aluminum have caused only modest economic damage, but have rattled business confidence. Topics: European Central Bank [...]
- Living/minimum wage: what we know
by aortmannphd in Core Economics, 2019-04-24 00:01:29 UTC
Version 1.0 (April 24, 2019)
A couple of weeks ago, I got ensnarled in one of these debates on Facebook that do not go anywhere; it was triggered by the Australian Labor Party’s recent Living Wage policy proposal and the related discussion about the merits of minimum wages, and there specifically whether increases in minimum wages have negative employment effects and even more specifically whether such detrimental employment effects hit those at the low end of the wage distribution. These debates tie into other current debates like the one about lacking wages growth about which even the RBA i [...]
- Vad media skriver om invandrare pÃ¥verkar vÃ¤ljare
by Niclas Berggren in Nonicoclolasos, 2019-04-23 04:12:50 UTC
Det har kommit en studie av vilken betydelse mediarapportering om invandrare hade i i en folkomröstning om att förbjuda minareter i Schweiz 2009. Forskarna bakom studien, ”The Logic of Fear: Populism and Media Coverage of Immigrant Crimes” , finner följande:
The campaign, successfully led by the populist Swiss People’s Party, played aggressively on fears of Muslim immigration and linked Islam with terrorism and violence. We combine an exhaustive violent crime detection dataset with detailed information on crime coverage from 12 newspapers. The data allow us to quantify the extent of pre-vote m [...]
- Communicating Monetary Policy Uncertainty
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2019-04-22 13:01:56 UTC
“My recommendation for the presentation of economic projections and their use in policy explanations is to align them better with the rhetoric of uncertainty and data dependency and the true state of economic knowledge.” Former Federal Reserve Board Vice Chairman Donald Kohn, January 2019 . When it comes to forecasting, we usually cite famous Yankee catcher and baseball philosopher Yogi Berra , who reputedly said: “It's tough to make predictions, especially about the future.” For central bankers, this is more than just a minor headache. Given the lags between policy actions and their effects, [...]
- When failure succeeds
by chris in Stumbling and Mumbling, 2019-04-19 11:56:53 UTC
In politics, failure sometimes works better than success. This is the message of this piece by Janan Ganesh, wherein he argues that it is in Trump’s interest to fail on his promise to control immigration, because if he does so it will remain a big issue which will attract voters to him. Janan says:
It is perverse, I know, that a president could make so little progress on his number-one priority during four years in office, only to be rewarded for it.
Maybe not so perverse. There are other examples.
One, as he says, is Brexit. If Brexiters get their way, voters will see that it is in fact no [...]
- Thesis Thursday: David Mott
by Chris Sampson in The Academic Health Economists' Blog, 2019-04-18 06:00:33 UTC
On the third Thursday of every month, we speak to a recent graduate about their thesis and their studies. This month’s guest is Dr David Mott who has a PhD from Newcastle University . If you would like to suggest a candidate for an upcoming Thesis Thursday, get in touch.
Title How do preferences for public health interventions differ? A case study using a weight loss maintenance intervention Supervisors Luke Vale , Laura Ternent Repository link http://hdl.handle.net/10443/4197
Why is it important to understand variation in people’s preferences?
It’s not all that surprising that peopl [...]
- Broad-spectrum policies
by chris in Stumbling and Mumbling, 2019-04-17 13:20:11 UTC
Is there a case for the Bank of England to target house prices? The debate, I suspect, highlights a difference in how we think about economic policy – between what might be called a single-issue technocratic approach versus a broad-spectrum approach.
Many of us, I suspect, agree that high and rising house prices are a cultural and economic menace. They encourage high debt which is potentially destabilizing (pdf) . They divert spending towards rent and mortgage payments (and sometimes housebuilding) and away from new goods and services, thereby reducing dynamism and innovation. They encourage p [...]
- Policy Trade-Offs in Building Resilience to Natural Disasters: The Case of St. Lucia
by Christian Zimmermann in NEP-DGE blog, 2019-04-17 03:54:00 UTC
BY Alessandro Cantelmo; Leo Bonato; Giovanni Melina; Gonzalo Salinas
Resilience to climate change and natural disasters hinges on two fundamental elements: financial protection —insurance and self-insurance— and structural protection —investment in adaptation. Using a dynamic general equilibrium model calibrated to the St. Lucia’s economy, this paper shows that both strategies considerably reduce the output loss from natural disasters and studies the conditions under which each of the two strategies provides the best protection. While struct [...]
- Finding the right amount of independence for Asiaâs central banks
by Adam Triggs in East Asia Forum, 2019-04-16 00:00:45 UTC
Authors: Adam Triggs and Jake Read, ANU
March 2019 saw Philippine President Rodrigo Duterte move his Budget Secretary, Benjamin Diokno, to govern the central bank. The press was quick to call this a politically motivated interference with the central bank’s independence. The markets were equally quick to shave 1 per cent off the Philippine Peso.
Duterte’s decision follows a common trend — the independence of central banks is being challenged to differing degrees and for different reasons in many Asian countries. These include the Philippines, India, Thailand, Indonesia, Japan, Pakistan, Turke [...]
- Is Marijuana a Gateway to Opioids?
by Jacob Sullum in Hit & Run blog, 2019-04-15 16:00:51 UTC
During a hearing on the 1937 law that effectively banned cannabis throughout the United States, a congressman asked Federal Bureau of Narcotics Commissioner Harry Anslinger “whether the marihuana addict graduates into a heroin, an opium, or cocaine user.” Anslinger, who at that point was blaming marijuana for inspiring outbursts of vicious and irrational violence, said he had seen no evidence that its users progress to other drugs. “I have not heard of a case of that kind,” he said. “I think it is an entirely different class. The marihuana addict does not go in that direction.”
By the early [...]
- Qualifying for the Fed
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2019-04-15 12:01:03 UTC
We’re strictly nonpartisan. We check our political identification at the door.” Federal Reserve Board Chairman Jerome H. Powell, cited in The Washington Post , April 11, 2019 “The Federal Reserve is an apolitical, or nonpolitical, institution, in which decisions are made by looking at economic facts and bringing economic analysis to bear on those facts.” Former Federal Reserve Board Vice Chairman Donald Kohn, NPR Interview , April 6, 2019. Monetary economists of nearly all persuasions are overwhelming in their condemnation of President Trump’s desire to appoint Stephen Moore and Herman Cain to [...]
- The Intergenerational Incidence of Green Tax Reform
by Christian Zimmermann in NEP-DGE blog, 2019-04-10 14:33:20 UTC
By Sebastian Rausch and Hidemichi Yonezawa
We examine the lifetime incidence and intergenerational distributional effects of an economywide carbon tax swap using a numerical dynamic general equilibrium model with overlapping generations of the U.S. economy. We highlight various fundamental choices in policy design including (1) the level of the initial carbon tax, (2) the growth rate of the carbon tax trajectory of over time, and (3) alternative ways for revenue recycling. Without revenue recycling, we find that generations born before the t [...]
- Inefficient Short-Time Work
by maximorossi in NEP-LTV blog, 2019-04-10 14:10:59 UTC
Pierre Cahuc (Département d’économie); Sandra Nevoux (Banque de France)
This paper shows that the reforms which expanded short-time work in France after the great 2008-2009 recession were largely to the benefit of large firms which are recurrent short-time work users. We argue that this expansion of short-time work is an inefficient way to provide insurance to workers, as it entails cross-subsidies which reduce aggregate production. An efficient policy should provide unemployment insurance benefits funded by experience rated employers’ contributions instead of short-time [...]
- When Short-Time Work Works
by maximorossi in NEP-LTV blog, 2019-04-10 14:07:14 UTC
Pierre Cahuc (École polytechnique (X)); Francis Kramarz (Sciences Po); Sandra Nevoux (Banque de France)
Short-time work programs were revived by the Great Recession. To understand their operating mechanisms, we first provide a model showing that short-time work may save jobs in firms hit by strong negative revenue shocks, but not in less severely-hit firms, where hours worked are reduced, without saving jobs. The cost of saving jobs is low because short-time work targets those at risk of being destroyed. Using extremely detailed data on the administration of the progra [...]
- Men without work: Why are they so unhappy in the US compared to other places?
by maximorossi in NEP-LTV blog, 2019-04-10 14:00:51 UTC
Sergio Pinto (University of Maryland); Carol Graham (The Brookings Institution)
The global economy is full of paradoxes. Despite progress in technology, reducing poverty, and increasing life expectancy, the poorest states lag behind, and there is increasing inequality and anomie in the wealthiest ones. A key driver of such unhappiness in advanced countries is the decline in the status and wages of low-skilled labor. A related feature is the increase in prime-aged males (and to a lesser extent women) simply dropping out of the labor force, particularly in the U.S. This sa [...]
- Revisiting 1916 (Part II): The Economics of Population Density
by Jason Barr in Building the skyline, 2019-04-10 12:31:43 UTC
Jason M. Barr April 10, 2019
[This is part two of a four-part series on New York’s first zoning regulations, enacted in 1916. Part I focuses on the history of the regulations. This post revisits the reformers’ thinking through the lens of modern economics. Part III will continue this discussion by comparing the 1916 Zoning Resolution to other policy alternatives not implemented. Finally, Part IV will argue that the ideas and rules from 1916 helped to set the stage for today’s NIMBYism and housing affordability problems.]
From the point of view of public advantage the distribution of popu [...]
- Stephen G. Cecchetti and Kermit L. Schoenholtz - Why a gold standard is a very bad idea
by firstname.lastname@example.org (Mike Norman) in Mike Norman Economics, 2019-04-09 17:56:00 UTC
Far from being synonymous with stability, the gold standard itself was the principal threat to financial stability and economic prosperity between the wars.” Barry Eichengreen, Golden Fetters . This article is written by two bankers, but anywhere you look, the problems of using the gold standard are described the same. One thing, the money is limited to the amount of gold a country has, not the resources or the know how of the people. That would be a waste. The extraordinary monetary easing engineered by central banks in the aftermath of the 2007-09 financial crisis has fueled criticism of [...]
- Trumpâs Faulty Wind Power Claims
by Jessica McDonald in FactCheck.org, 2019-04-04 16:02:59 UTC
During an April 2 speech to the National Republican Congressional Committee, President Donald Trump once again attacked wind power, falsely claiming that noise from turbines causes cancer and that turbines sink property values by 75 percent.
The president has repeatedly erred when it comes to wind power. As we’ve explained before , when the president said living near turbines is noisy enough to make someone “go crazy after a couple of years,” there’s no direct evidence that the sound is harmful to human health.
Here, we’ll explain why there’s no turbine-cancer link, and describe some of the [...]
by Bruno Duarte in EUnomics, 2019-04-03 09:35:38 UTC
The third consecutive month of contraction hints at more than exogenous causes for Germany’s manufacturing.
At its crux, German policy and social preferences led the Member-State’s policy makers and firms to ignore the repeated urge for more investment, not least by the European Commission .
Feldstein and Horioka , who uncovered the correlation between savings and investment levels, reinterpreted their findings to describe how capital markets fail to effectively channel savings to where it is most profitable. According to a new paper by Horioka and Ford , as good and financial markets net bila [...]
- El Impuesto-Dividendo CO2
by Antonia DÃaz in Nada Es Gratis, 2019-04-02 05:07:32 UTC
de Antonia Díaz y Luis Puch
La Agencia Internacional de la Energía (IEA, por sus siglas en inglés) publicó la semana pasada su último informe ( Global Energy & CO2 Status Report ), en el que establece que las emisiones de CO2 aumentaron el pasado año un 1.7 por ciento respecto al año anterior, hasta alcanzar la cifra record de 33.1 Gt CO2. Al leer este blog ( aquí ), o ver a los adolescentes manifestarse en las calles y pedir cuentas a las élites políticas sobre el coste climático de todas nuestras decisiones pasadas, podríamos pensar que algo se está haciendo, o que algo se hará. Nada más lej [...]
- Wealth Disparities for Early Childhood Anthropometrics and Skills: Evidence from Chilean Longitudinal Data
by maximorossi in NEP-LTV blog, 2019-04-01 18:19:13 UTC
Jere R. Behrman (Department of Economics, University of Pennsylvania); Dante Contreras (Department of Economics, University of Chile); Isidora Palma (Department of Economics, University of Chile); Esteban Puentes (Department of Economics, University of Pennsylvania)
We study wealth disparities in the formation of anthropometrics, cognitive skills and socio-emotional skills. We use a sample of preschool and early school children in Chile. We extend the previous literature by using longitudinal data, which allow us to study the dynamics of child growth and skills forma [...]
- Human Capital Inequality: Empirical Evidence
by maximorossi in NEP-LTV blog, 2019-04-01 18:18:16 UTC
Brant Abbott (University of British Columbia); Giovanni Gallipoli (University of British Columbia)
Wealth inequality has received considerable attention, with mounting evidence of steady and economically meaningful changes in the concentration of wealth ownership. By definition, wealth inequality captures disparity in the ownership of productive capital and other non-labor factors of production. In contrast, in this article we focus on the distribution of human capital and its implications for the accrual of economic resources to individuals and households. Human capital [...]
- Dot-ology: What can we learn from the dot plot?
by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets, 2019-04-01 12:24:01 UTC
“[I]f properly understood, the dot plot can be a constructive element of comprehensive policy communication,” Federal Reserve Board Chairman Jerome Powell, March 8, 2019 . The primary objective of monetary policy is to keep inflation and unemployment low and stable. To be effective, central bankers must address shocks to inflation and unemployment, while ensuring that what they say and do is not a source of volatility. One way to make a commitment to stability credible is for policymakers to broadcast their likely responses to shocks—their reaction function . Such transparency escalates the co [...]
- Chris Sampsonâs journal round-up for 1st April 2019
by Chris Sampson in The Academic Health Economists' Blog, 2019-04-01 11:00:21 UTC
Every Monday our authors provide a round-up of some of the most recently published peer reviewed articles from the field. We don’t cover everything, or even what’s most important – just a few papers that have interested the author. Visit our Resources page for links to more journals or follow the HealthEconBot . If you’d like to write one of our weekly journal round-ups, get in touch .
Toward a centralized, systematic approach to the identification, appraisal, and use of health state utility values for reimbursement decision making: introducing the Health Utility Book (HUB) . Medical Decis [...]
- Examining an MMT model in detail
by Noah Smith in Noahpinion, 2019-03-31 19:45:00 UTC
What is MMT, the heterodox economic theory that has captivated Alexandria Ocasio-Cortez , made its way into the Green New Deal discussion , and inspired dozens of thinkpieces and critiques? What does it say? How can we tell if it's a good theory or a bad one? These are incredibly important questions. Thanks to Ocasio-Cortez and the Green New Deal, MMT has very quickly gone from an obscure heterodox idea to one of the most potentially influential and important theories in all of economics. Formal Models vs. Guru-Based Theories These days, most economic theories are collections of mathematica [...]