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Robert Gallman’s Capital Stock Project

Robert E. Gallman and Paul W. Rhode

in Capital in the Nineteenth Century

This chapter introduces Gallman’s capital stock project. It traces its origin and evolution. It relates several of Gallman’s key observations about the pace and pattern of US economic growth.in the ... More

This chapter introduces Gallman’s capital stock project. It traces its origin and evolution. It relates several of Gallman’s key observations about the pace and pattern of US economic growth.in the nineteenth century.Less

Capital and American Economic Growth, 1774–1980

Robert E. Gallman and Paul W. Rhode

in Capital in the Nineteenth Century

This chapter places Gallman’s estimates of the value of the United States fixed capital stock, from 1774 to 1840 into the large context. The chapter discusses using the changes in the capital stock ... More

This chapter places Gallman’s estimates of the value of the United States fixed capital stock, from 1774 to 1840 into the large context. The chapter discusses using the changes in the capital stock as a proxy to measure of economic growth. The chapter documents the early importance of capital accumulation in structures and land improvement. It also performs a growth accounting exercise for the whole nineteenth century.Less

Why the Present Budget Policy Is Still the Most Sensible

Yue Chim Richard Wong

in Diversity and Occasional Anarchy: On Deep Economic and Social Contradictions in Hong Kong

Sir John Cowperthwaite, Financial Secretary from 1961 to 1971, said that the aggregate of decisions of individual businessmen in a free economy is more likely to do good than the centralized ... More

Sir John Cowperthwaite, Financial Secretary from 1961 to 1971, said that the aggregate of decisions of individual businessmen in a free economy is more likely to do good than the centralized decisions of a government. The chapter examines the ways in which the Hong Kong government becomes less limited, and analyzes the extent to which it might evolve into a deep contradiction. In additiion, the consequences in terms of economic vitality and economic growth brought by a limited government are also examined.Less

Guangdong Province Ascending as the “Fifth Dragon”*

Y. Y. Kueh

in Pax Sinica: Geopolitics and Economics of China's Ascendance

This chapter aims at highlighting the salient aspects of Guangdong's economic aspiration against the background of institutional and policy adjustments since the early 1980s. Apart from elucidating ... More

This chapter aims at highlighting the salient aspects of Guangdong's economic aspiration against the background of institutional and policy adjustments since the early 1980s. Apart from elucidating the economic significance of Guangdong vis-à-vis China and the four East Asian dragons, this chapter also analyses the nature and impact of economic growth and structural change both within the province itself and relative to the country as a whole. Besides, it glances at the roles of investment and foreign capital, foreign trade, and Guangdong's links with Hong Kong. Last but not least, the future prospects for the aspiring fifth little dragon are briefly assessed.Less

Financial Markets: Productivity, Procyclicality, And Policy

Michael Haliassos

in Financial Innovation: Too Much or Too Little?

Financial markets play an instrumental role in the efficient allocation of productive resources and are an important factor for long-run economic growth. However, recent financial crises have ... More

Financial markets play an instrumental role in the efficient allocation of productive resources and are an important factor for long-run economic growth. However, recent financial crises have demonstrated that finance can exacerbate the trade-off between economic efficiency and macroeconomic stability. Financial markets can facilitate the accumulation of debt in good times, leading to a mutually reinforcing dynamic between the real and the financial sector whereby the financial system amplifies the business cycle and generates financial instability. This capacity has in the past been manifested in a host of feedback mechanisms, such as procyclical capital and collateral requirements, procyclical financial innovation, or pro-cyclical risk-taking and compensation schemes. Increasing the resilience of the financial sector without endangering its capacity to sustain economic activity is an important aspect of the tasks that the newly established macroprudential regulators on both sides of the Atlantic are charged with.Less

Wrapping Up

Robert E. Gallman and Paul W. Rhode

in Capital in the Nineteenth Century

This chapter wraps up, providing brief summary thoughts about Gallman’s scholarship and the role of capital accumulation in economic growth.

On the Creative and Innovative Economy

Yue Chim Richard Wong

in Diversity and Occasional Anarchy: On Deep Economic and Social Contradictions in Hong Kong

The author entertains the notion that in the long run, Hong Kong's economic growth counts critically on the creativity and innovation of the citizens. Positive non-interventionism has long been the ... More

The author entertains the notion that in the long run, Hong Kong's economic growth counts critically on the creativity and innovation of the citizens. Positive non-interventionism has long been the guiding principle in managing local economic affairs, and therefore, conspicuously there is merely limited room for positive intervention to prevail in society. This chapter puts forward an argument selective intervention for promoting policies and building institutions to foster creativity and innovation.Less

Eco-Nomics

Jeremy L. Caradonna

in Sustainability: A History

The environmental movement of the 1960s and 1970s overshadows a second, less heralded intellectual development that took place at the exact same time: the birth of “ecological economics.” A cluster ... More

The environmental movement of the 1960s and 1970s overshadows a second, less heralded intellectual development that took place at the exact same time: the birth of “ecological economics.” A cluster of nonconforming economists in this period drew on the fledgling science of ecology to rethink many of the assumptions of neoclassical economics, with its “growthmania,” general indifference toward pollution and ecosystem destruction, and dogmatic belief that “tastes and preferences” are innate in humans rather than culturally shaped. What emerged was a new school of thought that integrated ecological concerns into an essentially capitalist economic framework. These iconoclasts brought together the dual nature of the Greek word “oikos” (literally: household), which is the etymological root of both “economics” and “ecology.” They asserted that the human “household” could not exist without a healthy and functional natural environment. This has become the essential insight of economic sustainability—the second “E” of sustainability: that the world needs economic systems that exist harmoniously with nature (and which promote social equality and justice). Those who practice the economics of sustainability in the present day— William E. Rees, Mathis Wackernagel, Peter Victor, Tim Jackson, Richard Heinberg, and many others—are the heirs of these early critics who challenged the hegemony of business-as-usual economics. First-wave ecological economics shares the readability of the classic environmental works discussed in the previous chapter. The main authors associated with ecological economics—E. J. Mishan, E. F. Schumacher, Kenneth Boulding, Howard T. Odum, Nicholas Georgescu-Roegen, Herman Daly, Amory Lovins, and the members of the shadowy-sounding Club of Rome—went out of their way to write nontechnical books that were meant to appeal to the average-educated reader. Collectively, these authors ask deep and penetrating philosophical questions: What is the point of endless economic growth? What are the environmental costs of a wasteful and fossil-fuel-addicted consumer society? What is the best way to measure the well-being of a society? What is the role of economics in ensuring that human society remains within its ecological limits and avoids overshoot and collapse? How can nature, society, and the economy be studied as a single system? Less

The Agenda for Structural Reform in Europe

Antonio Fatás

in After the Crisis: Reform, Recovery, and Growth in Europe

Structural reforms have been part of the economic policy discussions of European governments since the 1970s, but, during the last decade, the global financial crisis has created a sense of urgency ... More

Structural reforms have been part of the economic policy discussions of European governments since the 1970s, but, during the last decade, the global financial crisis has created a sense of urgency because of the low performance of many European economies. In this chapter, empirical analysis first shows that there exists a strong correlation between policies, institutions, and economic performance. Reforms are happening and they are happening faster in the countries that need them the most. However, the speed of reforms is not always fast enough, reforms happen in an isolated manner, and their effects are not as large as planned. The chapter concludes with some thoughts on what it would take to accelerate the reform process and the potential role of Europe and its institutions.Less

Financial Restructuring for Economic Recovery in China and the Hong Kong SAR*

Y. Y. Kueh

in Pax Sinica: Geopolitics and Economics of China's Ascendance

‘How did the SAR government cope with the Asian financial crisis and would there have been better alternatives?’ This raises a number of associated questions listed as follows, and the major problems ... More

‘How did the SAR government cope with the Asian financial crisis and would there have been better alternatives?’ This raises a number of associated questions listed as follows, and the major problems involved are highlighted as well in this chapter. 1) Would the present policy approach bring about an early economic recovery? Could it prevent similar crises in the future? 2) Can China continue to be wholly insulated from similar regional financial disruption? 3) What preventive policy measures have been taken in China? Would they be effective? 4) What would the long-term implications be for the country's economic growth?Less

Education for Equality and Growth

Yue Chim Richard Wong

in Diversity and Occasional Anarchy: On Deep Economic and Social Contradictions in Hong Kong

Understanding the factors and implications of income inequality in our society is of paramount importance. It tells us what has to be done to reduce inequality and alleviate the poverty problem. This ... More

Understanding the factors and implications of income inequality in our society is of paramount importance. It tells us what has to be done to reduce inequality and alleviate the poverty problem. This chapter centres on the economic aspects of income inequality, and examines this phenomenon through the revenue perspective and the concept of positive economics. Inequality is considered the result of a race between technology and education, and in general, inequality occurs when educational changes lag far behind technological advances. Increasing the supply of skilled manpower can be achieved in four distinct ways, and they are instrumental in reducing income inequality in the long run. Education is construed by the author as an indispensable vehicle for arresting the trend of growing income inequality and promoting economic growth.Less

Differential Growth Rates in Singapore and Hong Kong: Policy versus Human Capital

Yue Chim Richard Wong

in Fixing Inequality in Hong Kong

The crucial driver of the difference in growth rates between Hong Kong and Singapore – two of the freest market economies in the world – is their different rates of growth in human capital. Free ... More

The crucial driver of the difference in growth rates between Hong Kong and Singapore – two of the freest market economies in the world – is their different rates of growth in human capital. Free markets in labor, capital, and land allow these resources to be allocated more efficiently, but you cannot achieve growth and productivity increases if you do not invest in capital. In a modern economy, the most important form of capital is human capital. Human capital markets are imperfect, so there is an important role for government and nongovernment charities and voluntary organizations to play in fostering and financing investment in human capital.Hong Kong must not lose any more time getting its act together on human capital.Less

From Ecclesiastical to Market Economy

Dotan Leshem

in The Origins of Neoliberalism: Modeling the Economy from Jesus to Foucault

The sixth chapter (From Ecclesiastical to Market Economy) revises some of the main aspects of Arendt’s and Foucault’s critical accounts of modernity. It also discusses the definition of: the economy; ... More

The sixth chapter (From Ecclesiastical to Market Economy) revises some of the main aspects of Arendt’s and Foucault’s critical accounts of modernity. It also discusses the definition of: the economy; economic desire and its desired object; politics; and philosophy in pre-Christian Greek antiquity, Christianity, Liberalism and Neoliberalism. the chapter concludes looking for venues to surpass the latter by going beyond Arendt and Foucault.Less

Contractors' Bounties or Due Consideration?: Evidence on the Commercial Nature of The Royal Mail Steam Placket Company's Mail Contracts, 1842-1905

AJ. Arnold and Robert G. Greenhill

in Management, Finance and Industrial Relations in Maritime Industries: Essays in International Maritime and Business History

This essay discusses the negotiation of postal contracts between the government and the private sector, and asks whether the state provided private sector shipping companies with excess returns. The ... More

This essay discusses the negotiation of postal contracts between the government and the private sector, and asks whether the state provided private sector shipping companies with excess returns. The essay also describes the operation of Royal Mail’s mail contracts and the development of its non-contract revenues; its commercial and financial returns, and finally compares its results with financial returns in the second half of the 19th century.Less