Tito Boeri, Micael Castanheira, Riccardo Faini, Vincenzo Galasso, Giorgio Barba Navaretti, Carcillo Stéphane, Jonathan Haskel, Giuseppe Nicoletti, Enrico Perotti, Carlo Scarpa, Lidia Tsyganok, and Christian Wey
- Published in print:
- 2006
- Published Online:
- May 2007
- ISBN:
- 9780199203628
- eISBN:
- 9780191708169
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199203628.003.0002
- Subject:
- Economics and Finance, Public and Welfare
This chapter introduces the first part of the book, which examines the question: do product market reforms contribute to Europe's poor growth and productivity record? The key finding is that although ...
More
This chapter introduces the first part of the book, which examines the question: do product market reforms contribute to Europe's poor growth and productivity record? The key finding is that although reforms are difficult to implement and do not always deliver the expected gains, particularly in the short term, deregulation of services in all three countries analysed is found to be associated with faster productivity growth and competitiveness both in the service sector and in the rest of the economy. This latter result is largely due to the fact that services play a much more pervasive role in the overall economy than generally acknowledged as they have a significant input into non-service activities like manufacturing and agriculture. Consequently, changes in efficiency, quality, and costs of services delivered trickle down to large competitive gains in the overall economy. The bottom line is that liberalization in services has the potential to bring large welfare gains and governments need to persevere in their effort to reform the service sector.Less
This chapter introduces the first part of the book, which examines the question: do product market reforms contribute to Europe's poor growth and productivity record? The key finding is that although reforms are difficult to implement and do not always deliver the expected gains, particularly in the short term, deregulation of services in all three countries analysed is found to be associated with faster productivity growth and competitiveness both in the service sector and in the rest of the economy. This latter result is largely due to the fact that services play a much more pervasive role in the overall economy than generally acknowledged as they have a significant input into non-service activities like manufacturing and agriculture. Consequently, changes in efficiency, quality, and costs of services delivered trickle down to large competitive gains in the overall economy. The bottom line is that liberalization in services has the potential to bring large welfare gains and governments need to persevere in their effort to reform the service sector.
Tito Boeri, Micael Castanheira, Riccardo Faini, Vincenzo Galasso, Giorgio Barba Navaretti, Carcillo Stéphane, Jonathan Haskel, Giuseppe Nicoletti, Enrico Perotti, Carlo Scarpa, Lidia Tsyganok, and Christian Wey
- Published in print:
- 2006
- Published Online:
- May 2007
- ISBN:
- 9780199203628
- eISBN:
- 9780191708169
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199203628.003.0003
- Subject:
- Economics and Finance, Public and Welfare
Theory is not ambiguous about the impact of competition on economic performance. Empirical evidence, however, suggests that competition raises productivity. Both policy-makers and the academic ...
More
Theory is not ambiguous about the impact of competition on economic performance. Empirical evidence, however, suggests that competition raises productivity. Both policy-makers and the academic community agree that the benefits of competition outweigh any eventual costs. Competition boosts the incentives for innovation and raises productivity growth of firms via the process of entry and exit.Less
Theory is not ambiguous about the impact of competition on economic performance. Empirical evidence, however, suggests that competition raises productivity. Both policy-makers and the academic community agree that the benefits of competition outweigh any eventual costs. Competition boosts the incentives for innovation and raises productivity growth of firms via the process of entry and exit.
Jerome L. Stein and Polly Reynolds Allen
- Published in print:
- 1998
- Published Online:
- November 2003
- ISBN:
- 9780198293064
- eISBN:
- 9780191596940
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198293062.001.0001
- Subject:
- Economics and Finance, Macro- and Monetary Economics, International
The NATREX approach offers an alternative paradigm to the Purchasing Power Parity for equilibrium real exchange rates. NATREX is the acronym for NATural Real EXchange, referring to a medium‐run, ...
More
The NATREX approach offers an alternative paradigm to the Purchasing Power Parity for equilibrium real exchange rates. NATREX is the acronym for NATural Real EXchange, referring to a medium‐run, inter‐cyclical equilibrium real exchange rate, determined by real, fundamental factors. Importantly, the NATREX is a moving equilibrium real exchange rate, responding to continual changes in exogenous and endogenous real fundamentals. In a world of high capital mobility, the fundamentals of thrift, productivity, capital intensity, and net debt to foreigners become particularly important, influencing desired long‐term capital flows and altering the equilibrium real exchange rate. The NATREX approach identifies and models the fundamental determinants of equilibrium real exchange rates, consistent with their recent empirical movements in various countries.The NATREX model is a dynamic stock‐flow growth model. The goal of the NATREX approach is primarily empirical – to explain movements of medium‐ to long‐run real exchange rates in terms of the fundamental real variables of thrift and productivity, assuming that real exchange rates do adjust toward their equilibrium level, although with a lag. A family of consistent general equilibrium models – of rational, optimizing behavior, determining medium‐run equilibrium real exchange rates – forms the core of the NATREX approach. These models provide logical economic justifications for the empirical results.Less
The NATREX approach offers an alternative paradigm to the Purchasing Power Parity for equilibrium real exchange rates. NATREX is the acronym for NATural Real EXchange, referring to a medium‐run, inter‐cyclical equilibrium real exchange rate, determined by real, fundamental factors. Importantly, the NATREX is a moving equilibrium real exchange rate, responding to continual changes in exogenous and endogenous real fundamentals. In a world of high capital mobility, the fundamentals of thrift, productivity, capital intensity, and net debt to foreigners become particularly important, influencing desired long‐term capital flows and altering the equilibrium real exchange rate. The NATREX approach identifies and models the fundamental determinants of equilibrium real exchange rates, consistent with their recent empirical movements in various countries.
The NATREX model is a dynamic stock‐flow growth model. The goal of the NATREX approach is primarily empirical – to explain movements of medium‐ to long‐run real exchange rates in terms of the fundamental real variables of thrift and productivity, assuming that real exchange rates do adjust toward their equilibrium level, although with a lag. A family of consistent general equilibrium models – of rational, optimizing behavior, determining medium‐run equilibrium real exchange rates – forms the core of the NATREX approach. These models provide logical economic justifications for the empirical results.
A. B. Atkinson
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780199532438
- eISBN:
- 9780191714559
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199532438.003.0013
- Subject:
- Economics and Finance, Development, Growth, and Environmental, International
The note describes a simple version of the pay norm model, where the assumptions are chosen to bring out the essence of the argument, rather than to allow for the full richness of strategic ...
More
The note describes a simple version of the pay norm model, where the assumptions are chosen to bring out the essence of the argument, rather than to allow for the full richness of strategic behaviour. It is essentially a behavioural model.Less
The note describes a simple version of the pay norm model, where the assumptions are chosen to bring out the essence of the argument, rather than to allow for the full richness of strategic behaviour. It is essentially a behavioural model.
A. B. Atkinson
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780199532438
- eISBN:
- 9780191714559
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199532438.003.0009
- Subject:
- Economics and Finance, Development, Growth, and Environmental, International
This chapter considers a behavioural model of changes in differentials, directed particularly at explaining the fanning out of the upper part of the earnings distribution. It suggests that changes ...
More
This chapter considers a behavioural model of changes in differentials, directed particularly at explaining the fanning out of the upper part of the earnings distribution. It suggests that changes may be observed in the extent to which earnings are governed by pay norms — changes corresponding to a switch from a redistributive norm to one where people are paid on their individual productivity, or vice versa. An external shock causes an abrupt reversal of direction and convergence to a new equilibrium. This could be caused by a change in the political climate, shifting the degree of conformity with the social norm, which is then magnified as more people change their behaviour. It could be caused by a change in the capital market, as where firms become more short term in their outlook, and less willing to invest in establishing a reputation.Less
This chapter considers a behavioural model of changes in differentials, directed particularly at explaining the fanning out of the upper part of the earnings distribution. It suggests that changes may be observed in the extent to which earnings are governed by pay norms — changes corresponding to a switch from a redistributive norm to one where people are paid on their individual productivity, or vice versa. An external shock causes an abrupt reversal of direction and convergence to a new equilibrium. This could be caused by a change in the political climate, shifting the degree of conformity with the social norm, which is then magnified as more people change their behaviour. It could be caused by a change in the capital market, as where firms become more short term in their outlook, and less willing to invest in establishing a reputation.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0017
- Subject:
- Business and Management, Marketing
This chapter shows how the multiproduct/multiagent firm should design compensation plans for its sales force. It distinguishes between the differential effects of experience (productivity), ...
More
This chapter shows how the multiproduct/multiagent firm should design compensation plans for its sales force. It distinguishes between the differential effects of experience (productivity), heterogeneous risk attitudes among salespersons, and the firm's market segmentation policies. In addition, it shows how marketing-finance fusion allows multiproduct and multiagent firms to measure changes in sales force productivity using an objective metric (not sales revenue).Less
This chapter shows how the multiproduct/multiagent firm should design compensation plans for its sales force. It distinguishes between the differential effects of experience (productivity), heterogeneous risk attitudes among salespersons, and the firm's market segmentation policies. In addition, it shows how marketing-finance fusion allows multiproduct and multiagent firms to measure changes in sales force productivity using an objective metric (not sales revenue).
Judy B. Rosener
- Published in print:
- 1998
- Published Online:
- October 2011
- ISBN:
- 9780195119145
- eISBN:
- 9780199854882
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195119145.001.0001
- Subject:
- Business and Management, Strategy
The United States has a large number of well-educated, experienced professional women ready, willing, and able to move into the boardrooms and executive suites of corporate America. They represent a ...
More
The United States has a large number of well-educated, experienced professional women ready, willing, and able to move into the boardrooms and executive suites of corporate America. They represent a great, untapped economic resource and this book argues that this is America’s competitive secret. Drawing on in-depth interviews with top executives and middle managers, and the latest research on working women and organizational change, the author describes the unique contribution of female professionals. Her profiles of top women managers reveal that they cope well with ambiguity, are comfortable sharing power, and tend to empower others' leadership traits that lead to increased employee productivity, innovation, and profits. The book offers evidence that the changes that help organizations more fully utilize the talents of women are the same changes that will give them an important edge in today’s global workplace. The author explains why the glass ceiling still prevents many competent women from reaching the upper echelons of management. She analyses why women and men are perceived and evaluated differently at work, and provides new insight into the feelings of men who are asked to interact with women in new roles when there are few new rules. The book shows that removing the glass ceiling can no longer be viewed solely in terms of social equity—it is now an economic imperative.Less
The United States has a large number of well-educated, experienced professional women ready, willing, and able to move into the boardrooms and executive suites of corporate America. They represent a great, untapped economic resource and this book argues that this is America’s competitive secret. Drawing on in-depth interviews with top executives and middle managers, and the latest research on working women and organizational change, the author describes the unique contribution of female professionals. Her profiles of top women managers reveal that they cope well with ambiguity, are comfortable sharing power, and tend to empower others' leadership traits that lead to increased employee productivity, innovation, and profits. The book offers evidence that the changes that help organizations more fully utilize the talents of women are the same changes that will give them an important edge in today’s global workplace. The author explains why the glass ceiling still prevents many competent women from reaching the upper echelons of management. She analyses why women and men are perceived and evaluated differently at work, and provides new insight into the feelings of men who are asked to interact with women in new roles when there are few new rules. The book shows that removing the glass ceiling can no longer be viewed solely in terms of social equity—it is now an economic imperative.
Louis Putterman
- Published in print:
- 1993
- Published Online:
- October 2011
- ISBN:
- 9780195078725
- eISBN:
- 9780199854950
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195078725.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This book is a detailed study of rural reform in China. After the death of Mao, and with the ascendency of Deng Xiaoping in 1978, China began a programme of agricultural reform intended to increase ...
More
This book is a detailed study of rural reform in China. After the death of Mao, and with the ascendency of Deng Xiaoping in 1978, China began a programme of agricultural reform intended to increase productivity. Three major changes moved the agricultural sector from a centrally planned system to a more market-oriented one. First was the replacement of collective teams by farming by households. Second, an increase in free markets for rural products, and an increase in state prices for farm products, and the partial elimination of the two-tier price system. Third were changes in the economic structure that facilitated greater productivity and a 250% increase in average real rural incomes between 1979 and 1986. This book is unique in that it studies a single township (Dahe in Hebei Province) in depth over the two periods, thus providing data about the effects of reform at village level.Less
This book is a detailed study of rural reform in China. After the death of Mao, and with the ascendency of Deng Xiaoping in 1978, China began a programme of agricultural reform intended to increase productivity. Three major changes moved the agricultural sector from a centrally planned system to a more market-oriented one. First was the replacement of collective teams by farming by households. Second, an increase in free markets for rural products, and an increase in state prices for farm products, and the partial elimination of the two-tier price system. Third were changes in the economic structure that facilitated greater productivity and a 250% increase in average real rural incomes between 1979 and 1986. This book is unique in that it studies a single township (Dahe in Hebei Province) in depth over the two periods, thus providing data about the effects of reform at village level.
Paul Stoneman
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780199572489
- eISBN:
- 9780191722257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199572489.003.0011
- Subject:
- Business and Management, Innovation
This chapter is concerned with impacts and policy, and addresses the private returns to investment in soft innovation. It shows that the existing literature on impacts is, not surprisingly, dominated ...
More
This chapter is concerned with impacts and policy, and addresses the private returns to investment in soft innovation. It shows that the existing literature on impacts is, not surprisingly, dominated by TPP-based approaches and, although such approaches can and have been applied to soft innovations using soft innovation proxies such as head counts and trademarks, it is argued that such approaches are not ideal. Instead, a number of successful soft innovations are presented as examples which show that soft innovation may stimulate firm performance and increase producer surplus.Less
This chapter is concerned with impacts and policy, and addresses the private returns to investment in soft innovation. It shows that the existing literature on impacts is, not surprisingly, dominated by TPP-based approaches and, although such approaches can and have been applied to soft innovations using soft innovation proxies such as head counts and trademarks, it is argued that such approaches are not ideal. Instead, a number of successful soft innovations are presented as examples which show that soft innovation may stimulate firm performance and increase producer surplus.
Peter Taylor-Gooby
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199267262
- eISBN:
- 9780191602023
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019926726X.003.0001
- Subject:
- Political Science, Political Economy
New social risks have emerged in relation to work‐life balance and securing a position in a more flexible labour market across Europe. Policy responses often involve the aspiration of ‘transforming ...
More
New social risks have emerged in relation to work‐life balance and securing a position in a more flexible labour market across Europe. Policy responses often involve the aspiration of ‘transforming vice into virtue’ by reducing welfare state spending and at the same time increasing productivity. This is to be achieved by childcare and elder‐care policies and active labour market polices that get more women and unemployed people into paid work. It is difficult for governments and other policy actors to find large groups of voters who support these policies and reform typically involves compromise. However, the new social risk analysis is a corrective to the typical retrenchment analysis of old social risks such as pensions.Less
New social risks have emerged in relation to work‐life balance and securing a position in a more flexible labour market across Europe. Policy responses often involve the aspiration of ‘transforming vice into virtue’ by reducing welfare state spending and at the same time increasing productivity. This is to be achieved by childcare and elder‐care policies and active labour market polices that get more women and unemployed people into paid work. It is difficult for governments and other policy actors to find large groups of voters who support these policies and reform typically involves compromise. However, the new social risk analysis is a corrective to the typical retrenchment analysis of old social risks such as pensions.
Philippe Aghion and Beatriz Armendáriz de Aghion
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780195305197
- eISBN:
- 9780199783519
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195305191.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This essay attempts to break the divide between growth and development economics. Using the example of India over the past decades, it argues that innovation and/or productivity growth have been main ...
More
This essay attempts to break the divide between growth and development economics. Using the example of India over the past decades, it argues that innovation and/or productivity growth have been main engines of poverty reduction in that country. It also argues that new growth theories can shed light on this process and explain why growth and poverty reduction have not occurred in Latin America. The remainder of this essay is organized as follows. The second section summarizes what is currently known about the evolution of growth and poverty indicators in India since the 1960s. The third section provides a very brief presentation of new growth theory and of some of its main predictions. The fourth section uses the description of new growth theory to analyze the reform process in India. The fifth section shows that the 1991 reforms had unequalizing effects on productivity and profitability across industries and states. Finally, it reflects upon the contrasting experiences of Asia and Latin America with regard to productivity growth and poverty alleviation.Less
This essay attempts to break the divide between growth and development economics. Using the example of India over the past decades, it argues that innovation and/or productivity growth have been main engines of poverty reduction in that country. It also argues that new growth theories can shed light on this process and explain why growth and poverty reduction have not occurred in Latin America. The remainder of this essay is organized as follows. The second section summarizes what is currently known about the evolution of growth and poverty indicators in India since the 1960s. The third section provides a very brief presentation of new growth theory and of some of its main predictions. The fourth section uses the description of new growth theory to analyze the reform process in India. The fifth section shows that the 1991 reforms had unequalizing effects on productivity and profitability across industries and states. Finally, it reflects upon the contrasting experiences of Asia and Latin America with regard to productivity growth and poverty alleviation.
Mukesh Eswaran and Ashok Kotwal
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780195305197
- eISBN:
- 9780199783519
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195305191.003.0008
- Subject:
- Economics and Finance, Development, Growth, and Environmental
As countries develop, their labor force shifts from agriculture to industry and services, and in the process, the well-being of the people improves. This essay sheds some light on the economic logic ...
More
As countries develop, their labor force shifts from agriculture to industry and services, and in the process, the well-being of the people improves. This essay sheds some light on the economic logic that drives the process and on the important role that agricultural productivity plays in it. It argues that agricultural productivity growth is the key to poverty alleviation, and then discusses the policy implications for developing countries. The first section shows how the process of secular decline in poverty is inevitably associated with a movement of labor from agriculture to other sectors, and how agricultural productivity growth facilitates such a movement. The second section discusses the importance of international trade in this process. Both agricultural and trade policies tend to generate political battles because they redistribute incomes from one group to another. This political economy question is addressed in the third section, which also discusses the causes (and consequences) of the observed policy bias against agriculture. The fourth section discusses the two main determinants of agricultural growth-technology and crop diversification, and reflects on the policy options available to poor countries to induce agricultural growth without causing domestic upheavals.Less
As countries develop, their labor force shifts from agriculture to industry and services, and in the process, the well-being of the people improves. This essay sheds some light on the economic logic that drives the process and on the important role that agricultural productivity plays in it. It argues that agricultural productivity growth is the key to poverty alleviation, and then discusses the policy implications for developing countries. The first section shows how the process of secular decline in poverty is inevitably associated with a movement of labor from agriculture to other sectors, and how agricultural productivity growth facilitates such a movement. The second section discusses the importance of international trade in this process. Both agricultural and trade policies tend to generate political battles because they redistribute incomes from one group to another. This political economy question is addressed in the third section, which also discusses the causes (and consequences) of the observed policy bias against agriculture. The fourth section discusses the two main determinants of agricultural growth-technology and crop diversification, and reflects on the policy options available to poor countries to induce agricultural growth without causing domestic upheavals.
Sharan Jagpal
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780195371055
- eISBN:
- 9780199870745
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195371055.003.0014
- Subject:
- Business and Management, Marketing
This chapter begins by evaluating methods for determining how productive the firm's aggregate advertising spending is in both the short and long runs. Following this, it analyzes methods for ...
More
This chapter begins by evaluating methods for determining how productive the firm's aggregate advertising spending is in both the short and long runs. Following this, it analyzes methods for determining the productivities of different media when the firm uses multiple media (including digital advertising); in particular, it focuses on the effects of measurement error. It shows how marketing-finance fusion allows privately and publicly held firms to allocate their advertising budgets between upfront and scatter advertising, based on their respective risk attitudes. Finally, it analyzes how recent changes in Internet marketing (e.g., the growth of electronic exchanges and the emergence of conquest advertising) are likely to affect the structure of the advertising industry.Less
This chapter begins by evaluating methods for determining how productive the firm's aggregate advertising spending is in both the short and long runs. Following this, it analyzes methods for determining the productivities of different media when the firm uses multiple media (including digital advertising); in particular, it focuses on the effects of measurement error. It shows how marketing-finance fusion allows privately and publicly held firms to allocate their advertising budgets between upfront and scatter advertising, based on their respective risk attitudes. Finally, it analyzes how recent changes in Internet marketing (e.g., the growth of electronic exchanges and the emergence of conquest advertising) are likely to affect the structure of the advertising industry.
Stephen Broadberry and Mary O'Mahony
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780199212668
- eISBN:
- 9780191712807
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199212668.003.0013
- Subject:
- Economics and Finance, Financial Economics
This chapter provides an overview of Britain's labour productivity performance during the 20th century, incorporating the catching-up and convergence perspective. It is shown that physical capital ...
More
This chapter provides an overview of Britain's labour productivity performance during the 20th century, incorporating the catching-up and convergence perspective. It is shown that physical capital and human capital have both played an important part in Britain's productivity performance, accounting for large portions of British labour productivity growth and Britain's labour productivity gaps with the United States and continental Europe.Less
This chapter provides an overview of Britain's labour productivity performance during the 20th century, incorporating the catching-up and convergence perspective. It is shown that physical capital and human capital have both played an important part in Britain's productivity performance, accounting for large portions of British labour productivity growth and Britain's labour productivity gaps with the United States and continental Europe.
Jerome L. Stein
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199280575
- eISBN:
- 9780191603501
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199280576.003.0004
- Subject:
- Economics and Finance, Financial Economics
The NATREX is a model of the equilibrium real exchange rate, which is where the real exchange rate is heading. The NATREX model has two components: the long-run equilibrium real exchange rate and the ...
More
The NATREX is a model of the equilibrium real exchange rate, which is where the real exchange rate is heading. The NATREX model has two components: the long-run equilibrium real exchange rate and the dynamics of adjustment of the medium-run equilibrium to the long-run equilibrium. In the medium-run equilibrium, the ratio of the external debt/GDP is predetermined, and the real exchange rate is associated with both internal and external balance. The real exchange rate and debt ratio are endogenous variables. In full stock-flow equilibrium, the long run equilibrium real exchange rate and external debt ratio depend upon the vector of time varying fundamentals, which are productivity and thrift in the country relative to the rest of the world.Less
The NATREX is a model of the equilibrium real exchange rate, which is where the real exchange rate is heading. The NATREX model has two components: the long-run equilibrium real exchange rate and the dynamics of adjustment of the medium-run equilibrium to the long-run equilibrium. In the medium-run equilibrium, the ratio of the external debt/GDP is predetermined, and the real exchange rate is associated with both internal and external balance. The real exchange rate and debt ratio are endogenous variables. In full stock-flow equilibrium, the long run equilibrium real exchange rate and external debt ratio depend upon the vector of time varying fundamentals, which are productivity and thrift in the country relative to the rest of the world.
Richard R. Nelson
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780199231423
- eISBN:
- 9780191710865
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199231423.003.0012
- Subject:
- Business and Management, Political Economy
This chapter argues that economists are right in seeing ‘the right institutions’ as the key to economic productivity and progressiveness. But for the argument to be delved deeper, it needs to be ...
More
This chapter argues that economists are right in seeing ‘the right institutions’ as the key to economic productivity and progressiveness. But for the argument to be delved deeper, it needs to be recognized that there is a very real challenge; the magnitude of the challenge is only beginning to be understood. The conglomerate of things different economists have called institutions largely reflects the fact that many different kinds of structures and forces mould the way individuals and organizations interact to get things done — so-called ‘social technologies’. Economic growth involves the co-evolution of technologies and the institutions needed for their effective operation and advancement. Some institutions provide the broad background conditions under which technologies can proceed, and others come into existence and develop to support the important new technologies that are driving growth. The chapter reviews the processes of institutional change and argues that institutional change, and its influence on economic activity, is much more difficult to direct and control than technological change, and hence prevailing institutions are often drags on economic productivity and progressiveness. The evolution of technology and institutions in pharmaceutical biotech is considered.Less
This chapter argues that economists are right in seeing ‘the right institutions’ as the key to economic productivity and progressiveness. But for the argument to be delved deeper, it needs to be recognized that there is a very real challenge; the magnitude of the challenge is only beginning to be understood. The conglomerate of things different economists have called institutions largely reflects the fact that many different kinds of structures and forces mould the way individuals and organizations interact to get things done — so-called ‘social technologies’. Economic growth involves the co-evolution of technologies and the institutions needed for their effective operation and advancement. Some institutions provide the broad background conditions under which technologies can proceed, and others come into existence and develop to support the important new technologies that are driving growth. The chapter reviews the processes of institutional change and argues that institutional change, and its influence on economic activity, is much more difficult to direct and control than technological change, and hence prevailing institutions are often drags on economic productivity and progressiveness. The evolution of technology and institutions in pharmaceutical biotech is considered.
Philippe Aghion and Abhijit Banerjee
- Published in print:
- 2005
- Published Online:
- January 2007
- ISBN:
- 9780199248612
- eISBN:
- 9780191714719
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199248612.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
It has long been recognized that productivity growth and the business cycle are closely interrelated. Yet, until recently, the two phenomena have been investigated separately in the economics ...
More
It has long been recognized that productivity growth and the business cycle are closely interrelated. Yet, until recently, the two phenomena have been investigated separately in the economics literature. This book provides the first consistent attempt to analyze the effects of macroeconomic volatility on productivity growth, and also the reverse causality from growth to business cycles. It shows that by looking at the economy through the lens of private entrepreneurs, who invest under credit constraints, one can go some way towards explaining persistent macroeconomic volatility and the effects of volatility on growth. Beginning with an analysis of the effects of volatility on growth, it argues that the lower the level of financial development in a country, the more detrimental the effect of volatility on growth. This prediction is confirmed by cross-country panel regressions. The data also suggest that a fixed exchange rate regime or more countercyclical budgetary policies are growth-enhancing in countries with a lower level of financial development. The former reduce aggregate volatility whereas the latter reduce the negative effects of volatility on long-term productivity-enhancing investment by firms. The book concludes with an investigation into how the interplay between credit constraints and pecuniary externalities is sufficient to generate persistent business cycles and to explain the occurrence of currency crises.Less
It has long been recognized that productivity growth and the business cycle are closely interrelated. Yet, until recently, the two phenomena have been investigated separately in the economics literature. This book provides the first consistent attempt to analyze the effects of macroeconomic volatility on productivity growth, and also the reverse causality from growth to business cycles. It shows that by looking at the economy through the lens of private entrepreneurs, who invest under credit constraints, one can go some way towards explaining persistent macroeconomic volatility and the effects of volatility on growth. Beginning with an analysis of the effects of volatility on growth, it argues that the lower the level of financial development in a country, the more detrimental the effect of volatility on growth. This prediction is confirmed by cross-country panel regressions. The data also suggest that a fixed exchange rate regime or more countercyclical budgetary policies are growth-enhancing in countries with a lower level of financial development. The former reduce aggregate volatility whereas the latter reduce the negative effects of volatility on long-term productivity-enhancing investment by firms. The book concludes with an investigation into how the interplay between credit constraints and pecuniary externalities is sufficient to generate persistent business cycles and to explain the occurrence of currency crises.
Zoltan J. Acs
- Published in print:
- 2013
- Published Online:
- October 2017
- ISBN:
- 9780691148625
- eISBN:
- 9781400846818
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691148625.001.0001
- Subject:
- Political Science, Public Policy
This book takes an in-depth look at philanthropy as an underappreciated force in capitalism, measures its critical influence on the free-market system, and demonstrates how American philanthropy ...
More
This book takes an in-depth look at philanthropy as an underappreciated force in capitalism, measures its critical influence on the free-market system, and demonstrates how American philanthropy could serve as a model for the productive reinvestment of wealth in other countries. Factoring in philanthropic cycles that help balance the economy, the book offers a richer picture of capitalism and a more accurate backdrop for considering policies that would promote the capitalist system for the good of all. Examining the dynamics of American-style capitalism since the eighteenth century, it argues that philanthropy achieves three critical outcomes. It deals with the question of what to do with wealth—keep it, tax it, or give it away. It complements government in creating public goods. And, by focusing on education, science, and medicine, philanthropy has a positive effect on economic growth and productivity. The book describes how individuals such as Benjamin Franklin, Andrew Carnegie, Bill Gates, and Oprah Winfrey have used their wealth to establish institutions and promote knowledge, and shows how philanthropy has given an edge to capitalism by promoting vital forces—like university research—necessary for technological innovation, economic equality, and economic security. Philanthropy also serves as a guide for countries with less flexible capitalist institutions, and the book makes the case for a larger, global philanthropic culture. Providing a new perspective on the development of capitalism, this book highlights philanthropy's critical links to the economic progress, health, and future of the United States—and beyond.Less
This book takes an in-depth look at philanthropy as an underappreciated force in capitalism, measures its critical influence on the free-market system, and demonstrates how American philanthropy could serve as a model for the productive reinvestment of wealth in other countries. Factoring in philanthropic cycles that help balance the economy, the book offers a richer picture of capitalism and a more accurate backdrop for considering policies that would promote the capitalist system for the good of all. Examining the dynamics of American-style capitalism since the eighteenth century, it argues that philanthropy achieves three critical outcomes. It deals with the question of what to do with wealth—keep it, tax it, or give it away. It complements government in creating public goods. And, by focusing on education, science, and medicine, philanthropy has a positive effect on economic growth and productivity. The book describes how individuals such as Benjamin Franklin, Andrew Carnegie, Bill Gates, and Oprah Winfrey have used their wealth to establish institutions and promote knowledge, and shows how philanthropy has given an edge to capitalism by promoting vital forces—like university research—necessary for technological innovation, economic equality, and economic security. Philanthropy also serves as a guide for countries with less flexible capitalist institutions, and the book makes the case for a larger, global philanthropic culture. Providing a new perspective on the development of capitalism, this book highlights philanthropy's critical links to the economic progress, health, and future of the United States—and beyond.
Peter Taylor‐Gooby
- Published in print:
- 2008
- Published Online:
- January 2009
- ISBN:
- 9780199546701
- eISBN:
- 9780191720420
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199546701.003.0008
- Subject:
- Political Science, Comparative Politics, Political Economy
Chapters 8 and 9 seek to anchor the analysis of the previous three chapters in a concrete policy context by considering the impact of recent reforms in the field of UK health care. The NHS is the ...
More
Chapters 8 and 9 seek to anchor the analysis of the previous three chapters in a concrete policy context by considering the impact of recent reforms in the field of UK health care. The NHS is the flagship of the British welfare state and at the heart of public sector reform. A New Public Management system (quasi-markets, strict targets and strong incentives for managers, regulation of quality from the centre, and better information for users) has transformed the service. Comparisons of changes in provision over time and between regions of the UK indicate considerable improvement at a time of increasing pressure on health care. However, these gains rest on substantially increased resources and there has been little improvement in cost-efficiency and productivity. Improvements for disadvantaged minorities are much less impressive. Public attitudes and responses display considerable disquiet with the reform programme, particularly in relation to confidence and trust.Less
Chapters 8 and 9 seek to anchor the analysis of the previous three chapters in a concrete policy context by considering the impact of recent reforms in the field of UK health care. The NHS is the flagship of the British welfare state and at the heart of public sector reform. A New Public Management system (quasi-markets, strict targets and strong incentives for managers, regulation of quality from the centre, and better information for users) has transformed the service. Comparisons of changes in provision over time and between regions of the UK indicate considerable improvement at a time of increasing pressure on health care. However, these gains rest on substantially increased resources and there has been little improvement in cost-efficiency and productivity. Improvements for disadvantaged minorities are much less impressive. Public attitudes and responses display considerable disquiet with the reform programme, particularly in relation to confidence and trust.
Jerry A. Fodor
- Published in print:
- 1998
- Published Online:
- November 2003
- ISBN:
- 9780198236368
- eISBN:
- 9780191597404
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198236360.001.0001
- Subject:
- Philosophy, Philosophy of Mind
Jerry Fodor presents a strikingly original theory of the basic constituents of thought. He suggests that the heart of a cognitive science is its theory of concepts, and that cognitive scientists have ...
More
Jerry Fodor presents a strikingly original theory of the basic constituents of thought. He suggests that the heart of a cognitive science is its theory of concepts, and that cognitive scientists have gone badly wrong in many areas because their assumptions about concepts have been seriously mistaken. Fodor argues compellingly for an atomistic theory of concepts, and maintains that future work on human cognition should build upon new foundations. He starts by demolishing the rival theories that have prevailed in recent years—that concepts are definitions, that they are prototypes or stereotypes, that they are abstractions from belief systems, etc. He argues that all such theories are radically unsatisfactory for two closely related reasons: they hold that the content of a concept is determined, at least in part, by its inferential role; and they hold that typical concepts are structurally complex. Empirical and philosophical arguments against each of these claims are elaborated. Fodor then develops his alternative account, arguing that conceptual content is determined entirely by informational (mind—world) relations, and that typical concepts are atomic. The implications of this ‘informational atomism’ are considered in respect of issues in psychology, lexical semantics, and metaphysics, with particular attention to the relation between informational atomism and innateness.Less
Jerry Fodor presents a strikingly original theory of the basic constituents of thought. He suggests that the heart of a cognitive science is its theory of concepts, and that cognitive scientists have gone badly wrong in many areas because their assumptions about concepts have been seriously mistaken. Fodor argues compellingly for an atomistic theory of concepts, and maintains that future work on human cognition should build upon new foundations. He starts by demolishing the rival theories that have prevailed in recent years—that concepts are definitions, that they are prototypes or stereotypes, that they are abstractions from belief systems, etc. He argues that all such theories are radically unsatisfactory for two closely related reasons: they hold that the content of a concept is determined, at least in part, by its inferential role; and they hold that typical concepts are structurally complex. Empirical and philosophical arguments against each of these claims are elaborated. Fodor then develops his alternative account, arguing that conceptual content is determined entirely by informational (mind—world) relations, and that typical concepts are atomic. The implications of this ‘informational atomism’ are considered in respect of issues in psychology, lexical semantics, and metaphysics, with particular attention to the relation between informational atomism and innateness.
