Sylvie Benzoni-Gavage and Denis Serre
- Published in print:
- 2006
- Published Online:
- September 2007
- ISBN:
- 9780199211234
- eISBN:
- 9780191705700
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199211234.001.0001
- Subject:
- Mathematics, Applied Mathematics
This book presents a view of the state of the art in multi-dimensional hyperbolic partial differential equations, with a particular emphasis on problems in which modern tools of analysis have proved ...
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This book presents a view of the state of the art in multi-dimensional hyperbolic partial differential equations, with a particular emphasis on problems in which modern tools of analysis have proved useful. Ordered in sections of gradually increasing degrees of difficulty, the text first covers linear Cauchy problems and linear initial boundary value problems, before moving on to nonlinear problems, including shock waves. The book finishes with a discussion of the application of hyperbolic PDEs to gas dynamics, culminating with the shock wave analysis for real fluids.Less
This book presents a view of the state of the art in multi-dimensional hyperbolic partial differential equations, with a particular emphasis on problems in which modern tools of analysis have proved useful. Ordered in sections of gradually increasing degrees of difficulty, the text first covers linear Cauchy problems and linear initial boundary value problems, before moving on to nonlinear problems, including shock waves. The book finishes with a discussion of the application of hyperbolic PDEs to gas dynamics, culminating with the shock wave analysis for real fluids.
Anthony Garratt, Kevin Lee, M. Hashem Pesaran, and Yongcheol Shin
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199296859
- eISBN:
- 9780191603853
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199296855.003.0010
- Subject:
- Economics and Finance, Econometrics
This chapter discusses the dynamic properties of the estimated UK model. It presents generalized and orthogonalized impulse response analyses of the effects of shocks to the UK economy, and considers ...
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This chapter discusses the dynamic properties of the estimated UK model. It presents generalized and orthogonalized impulse response analyses of the effects of shocks to the UK economy, and considers in detail the dynamic effect of identified monetary policy shocks. It also presents a decomposition of the variables in the UK model into trends and cycles.Less
This chapter discusses the dynamic properties of the estimated UK model. It presents generalized and orthogonalized impulse response analyses of the effects of shocks to the UK economy, and considers in detail the dynamic effect of identified monetary policy shocks. It also presents a decomposition of the variables in the UK model into trends and cycles.
Anthony Garratt, Kevin Lee, M. Hashem Pesaran, and Yongcheol Shin
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199296859
- eISBN:
- 9780191603853
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199296855.003.0003
- Subject:
- Economics and Finance, Econometrics
This chapter describes a framework for macroeconometric modelling, which draws out the links with economic theory relating to the long run and with theory relating to the short run. It elaborates a ...
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This chapter describes a framework for macroeconometric modelling, which draws out the links with economic theory relating to the long run and with theory relating to the short run. It elaborates a modelling strategy that can be employed to accommodate directly the theory of the long run, and notes the ways in which short-run theory can also be accommodated in national and global models. Recent literature on modelling short-run dynamics is reviewed, highlighting the difficulties in obtaining consensus on appropriate short-run restrictions and commenting on the approaches taken in the literature in examining policy shocks in general, and monetary policy in particular.Less
This chapter describes a framework for macroeconometric modelling, which draws out the links with economic theory relating to the long run and with theory relating to the short run. It elaborates a modelling strategy that can be employed to accommodate directly the theory of the long run, and notes the ways in which short-run theory can also be accommodated in national and global models. Recent literature on modelling short-run dynamics is reviewed, highlighting the difficulties in obtaining consensus on appropriate short-run restrictions and commenting on the approaches taken in the literature in examining policy shocks in general, and monetary policy in particular.
Anthony Garratt, Kevin Lee, M. Hashem Pesaran, and Yongcheol Shin
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199296859
- eISBN:
- 9780191603853
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199296855.003.0005
- Subject:
- Economics and Finance, Econometrics
This chapter explores a set of identifying restrictions on the short-run dynamics that might be used to supplement the long-run restrictions if the model is to be used to investigate the effect of ...
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This chapter explores a set of identifying restrictions on the short-run dynamics that might be used to supplement the long-run restrictions if the model is to be used to investigate the effect of economically-meaningful shocks. Particular attention is paid to modelling monetary policy decisions, inflation targeting, the derivation of a base rate reaction function, and the identification of monetary policy shocks.Less
This chapter explores a set of identifying restrictions on the short-run dynamics that might be used to supplement the long-run restrictions if the model is to be used to investigate the effect of economically-meaningful shocks. Particular attention is paid to modelling monetary policy decisions, inflation targeting, the derivation of a base rate reaction function, and the identification of monetary policy shocks.
Jerome L. Stein
- Published in print:
- 2006
- Published Online:
- May 2006
- ISBN:
- 9780199280575
- eISBN:
- 9780191603501
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199280576.003.0009
- Subject:
- Economics and Finance, Financial Economics
For nearly a quarter of a century, the US has persistently run significant current account deficits that transformed it from the world’s largest net creditor to its largest debtor. The stochastic ...
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For nearly a quarter of a century, the US has persistently run significant current account deficits that transformed it from the world’s largest net creditor to its largest debtor. The stochastic optimal control/dynamic programming approach provides a framework to derive the optimal debt ratio, based upon both objective variables and preferences. The following set of questions are answered: What is a sustainable ratio of external debt/GDP? What are the consequences of an “excessive” debt? By how much does the dollar need to decline in order to achieve a sustainable current account position for the US and rest of world? The deviation of the actual debt ratio from the derived optimum increases the vulnerability of the economy to external shocks.Less
For nearly a quarter of a century, the US has persistently run significant current account deficits that transformed it from the world’s largest net creditor to its largest debtor. The stochastic optimal control/dynamic programming approach provides a framework to derive the optimal debt ratio, based upon both objective variables and preferences. The following set of questions are answered: What is a sustainable ratio of external debt/GDP? What are the consequences of an “excessive” debt? By how much does the dollar need to decline in order to achieve a sustainable current account position for the US and rest of world? The deviation of the actual debt ratio from the derived optimum increases the vulnerability of the economy to external shocks.
Milada Anna Vachudova
- Published in print:
- 2005
- Published Online:
- April 2005
- ISBN:
- 9780199241194
- eISBN:
- 9780191602382
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241198.003.0003
- Subject:
- Political Science, European Union
The empirical variation between the political trajectories of Poland, Hungary, and the Czech Republic, on the one hand, and Romania, Bulgaria, and Slovakia, on the other, is striking in the early ...
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The empirical variation between the political trajectories of Poland, Hungary, and the Czech Republic, on the one hand, and Romania, Bulgaria, and Slovakia, on the other, is striking in the early 1990s. The presence or absence of an opposition to communism strong enough to take and hold power in 1989 put the first group of states on the road to liberal democracy, and the second group on the road to illiberal democracy. This chapter compares the two groups of states in three areas: the nature of the opposition to communism and of the regime change in 1989; the political, economic, and national policies of the first post-communist governments; and the quality of the left alternative available to voters after1989.Less
The empirical variation between the political trajectories of Poland, Hungary, and the Czech Republic, on the one hand, and Romania, Bulgaria, and Slovakia, on the other, is striking in the early 1990s. The presence or absence of an opposition to communism strong enough to take and hold power in 1989 put the first group of states on the road to liberal democracy, and the second group on the road to illiberal democracy. This chapter compares the two groups of states in three areas: the nature of the opposition to communism and of the regime change in 1989; the political, economic, and national policies of the first post-communist governments; and the quality of the left alternative available to voters after1989.
Stephen J. Blundell and Katherine M. Blundell
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199562091
- eISBN:
- 9780191718236
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199562091.003.0032
- Subject:
- Physics, Particle Physics / Astrophysics / Cosmology
Shock waves occur when a disturbance is propagating through a medium faster than the sound speed of the medium. This chapter considers the nature of shocks in gases and the thermodynamic properties ...
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Shock waves occur when a disturbance is propagating through a medium faster than the sound speed of the medium. This chapter considers the nature of shocks in gases and the thermodynamic properties of the gas on either side of such a shock. It defines the Mach number and derives the Rankine–Hugoniot conditions, which allow the study of changes in density and pressure at a shock front.Less
Shock waves occur when a disturbance is propagating through a medium faster than the sound speed of the medium. This chapter considers the nature of shocks in gases and the thermodynamic properties of the gas on either side of such a shock. It defines the Mach number and derives the Rankine–Hugoniot conditions, which allow the study of changes in density and pressure at a shock front.
Joseph E. Stiglitz, José Antonio Ocampo, Shari Spiegel, Ricardo Ffrench-Davis, and Deepak Nayyar
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199288144
- eISBN:
- 9780191603884
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199288143.003.0013
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines some of the other outstanding debates on capital market liberalization (CML). In particular, it focuses on when a country is sufficiently developed to risk capital market ...
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This chapter examines some of the other outstanding debates on capital market liberalization (CML). In particular, it focuses on when a country is sufficiently developed to risk capital market liberalization, whether all countries should make liberalization their long-term goal, and whether capital market liberalization is reversible; even if it was a mistake in the first place, should countries that have already liberalized now stick with it? For example, proponents of liberalization often argue that the issue is not whether countries should liberalize their capital markets, but rather that liberalization should occur within the ‘proper’ sequence of reforms. Critics, however, argue that CML should not necessarily be the long run goal of all countries and that there are better ways for developing countries to integrate into the global economy. The chapter also contains a section that examines the appropriateness of different techniques of capital market liberalization for countries in various stages of development.Less
This chapter examines some of the other outstanding debates on capital market liberalization (CML). In particular, it focuses on when a country is sufficiently developed to risk capital market liberalization, whether all countries should make liberalization their long-term goal, and whether capital market liberalization is reversible; even if it was a mistake in the first place, should countries that have already liberalized now stick with it? For example, proponents of liberalization often argue that the issue is not whether countries should liberalize their capital markets, but rather that liberalization should occur within the ‘proper’ sequence of reforms. Critics, however, argue that CML should not necessarily be the long run goal of all countries and that there are better ways for developing countries to integrate into the global economy. The chapter also contains a section that examines the appropriateness of different techniques of capital market liberalization for countries in various stages of development.
Raymond Brun
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780199552689
- eISBN:
- 9780191720277
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199552689.001.0001
- Subject:
- Physics, Theoretical, Computational, and Statistical Physics
The high enthalpy gas flows, associating high velocities, and high temperatures, are the scene of physical and chemical processes such as molecular vibrational excitation, dissociation, ionization, ...
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The high enthalpy gas flows, associating high velocities, and high temperatures, are the scene of physical and chemical processes such as molecular vibrational excitation, dissociation, ionization, or various reactions. The characteristic times of these processes are of the same order of magnitude as aerodynamic characteristic times so that these reactive media are generally in thermodynamic and chemical non-equilibrium. This book presents a general introductory study of these media. In a first part their fundamental statistical aspects are described, starting from their discrete structure and taking into account the interactions between elementary particles: the transport phenomena, relaxation, and kinetics as well as their coupling are thus analysed and illustrated by many examples. The second part of the work is devoted to the macroscopic aspects of the reactive flows including shock waves, hypersonic expansions, flows around bodies, and boundary layers. Experimental data on vibrational relaxation times, vibrational populations, and kinetic rate constants are also presented. Finally, experimental aspects of reactive flows, their simulation in shock tube and shock tunnel are described as well as their applications, particularly in the aero-spatial domain.Less
The high enthalpy gas flows, associating high velocities, and high temperatures, are the scene of physical and chemical processes such as molecular vibrational excitation, dissociation, ionization, or various reactions. The characteristic times of these processes are of the same order of magnitude as aerodynamic characteristic times so that these reactive media are generally in thermodynamic and chemical non-equilibrium. This book presents a general introductory study of these media. In a first part their fundamental statistical aspects are described, starting from their discrete structure and taking into account the interactions between elementary particles: the transport phenomena, relaxation, and kinetics as well as their coupling are thus analysed and illustrated by many examples. The second part of the work is devoted to the macroscopic aspects of the reactive flows including shock waves, hypersonic expansions, flows around bodies, and boundary layers. Experimental data on vibrational relaxation times, vibrational populations, and kinetic rate constants are also presented. Finally, experimental aspects of reactive flows, their simulation in shock tube and shock tunnel are described as well as their applications, particularly in the aero-spatial domain.
Erik Jones
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780199208333
- eISBN:
- 9780191708985
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199208333.003.0004
- Subject:
- Political Science, Comparative Politics, Political Economy
This chapter examines how the breakdown of consociational democracy (depillarization) complicated the process of consensus building, and so made it more difficult for Belgium and the Netherlands to ...
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This chapter examines how the breakdown of consociational democracy (depillarization) complicated the process of consensus building, and so made it more difficult for Belgium and the Netherlands to benefit from European integration. It describes the economic shocks that affected both countries that resulted in lost competitiveness, mounting unemployment, and current account and fiscal deficits. The chapter then sets out the necessary conditions for an effective response. This response involved an important transfer of income and resources from labour to capital. The challenge, therefore, was to build consensus around the need for such redistribution. It was also necessary to develop new institutions for exchange rate stabilization at the European level.Less
This chapter examines how the breakdown of consociational democracy (depillarization) complicated the process of consensus building, and so made it more difficult for Belgium and the Netherlands to benefit from European integration. It describes the economic shocks that affected both countries that resulted in lost competitiveness, mounting unemployment, and current account and fiscal deficits. The chapter then sets out the necessary conditions for an effective response. This response involved an important transfer of income and resources from labour to capital. The challenge, therefore, was to build consensus around the need for such redistribution. It was also necessary to develop new institutions for exchange rate stabilization at the European level.
Michael Bruno
- Published in print:
- 1993
- Published Online:
- September 2006
- ISBN:
- 9780198286639
- eISBN:
- 9780191603839
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198286635.001.0001
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This book examines the phenomenon of the high inflation processes of the 1970s and 1980s as exemplified by Argentina, Brazil, and Israel. It explores the common characteristics of such processes and ...
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This book examines the phenomenon of the high inflation processes of the 1970s and 1980s as exemplified by Argentina, Brazil, and Israel. It explores the common characteristics of such processes and their possible cures — with some emphasis on the lessons of the Israeli experience in respect of the role of incomes policy and the political economy of stabilization. The discussion of the theoretical underpinnings of ‘shock’ treatments provides a good example for the blending of a number of disciplines: lessons of economic history, open economy monetary and macro theory, game-theory applications to economic policy design (concepts such as dynamic inconsistency, government reputation, and credibility), and the rationalization of incomes policy.Less
This book examines the phenomenon of the high inflation processes of the 1970s and 1980s as exemplified by Argentina, Brazil, and Israel. It explores the common characteristics of such processes and their possible cures — with some emphasis on the lessons of the Israeli experience in respect of the role of incomes policy and the political economy of stabilization. The discussion of the theoretical underpinnings of ‘shock’ treatments provides a good example for the blending of a number of disciplines: lessons of economic history, open economy monetary and macro theory, game-theory applications to economic policy design (concepts such as dynamic inconsistency, government reputation, and credibility), and the rationalization of incomes policy.
John Ameriks, Andrew Caplin, Steven Laufer, and Stijn Van Nieuwerburgh
- Published in print:
- 2008
- Published Online:
- January 2009
- ISBN:
- 9780199549108
- eISBN:
- 9780191720734
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199549108.003.0011
- Subject:
- Business and Management, Pensions and Pension Management
Financial security in retirement has traditionally meant having a steady flow of annuity income as long as one lives — a definition enshrined in the Social Security system. Earlier research has ...
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Financial security in retirement has traditionally meant having a steady flow of annuity income as long as one lives — a definition enshrined in the Social Security system. Earlier research has stressed a more holistic approach, which focuses on the match between resources and spending needs. Using this formulation this chapter estimates annuity values given long-term care concerns and bequest motives, where these estimated values are consistent with low observed demand for standard annuities. The chapter extends this model to value non-standard annuities with various security-enhancing features that may be of value to retirees.Less
Financial security in retirement has traditionally meant having a steady flow of annuity income as long as one lives — a definition enshrined in the Social Security system. Earlier research has stressed a more holistic approach, which focuses on the match between resources and spending needs. Using this formulation this chapter estimates annuity values given long-term care concerns and bequest motives, where these estimated values are consistent with low observed demand for standard annuities. The chapter extends this model to value non-standard annuities with various security-enhancing features that may be of value to retirees.
Michael Bruno
- Published in print:
- 1993
- Published Online:
- September 2006
- ISBN:
- 9780198286639
- eISBN:
- 9780191603839
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198286635.003.0003
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter examines the dynamics of high inflation under accommodation to price shocks. One simple approach to the budget as a source of the inflationary process is to consider the link of the form ...
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This chapter examines the dynamics of high inflation under accommodation to price shocks. One simple approach to the budget as a source of the inflationary process is to consider the link of the form of finance, namely seigniorage revenue and the average rate of inflation, on the hypothetical assumption that one is observing fluctuations around steady states. This gives at least some lead on the possible long-run relationship between the monetization of deficits and the rate of inflation. A closer historical look at the changing trade-off between inflation, real GDP growth, and the current account leads to the detailed dynamics of the inflationary process without which the ‘shocks and accommodation’ nature of the process cannot be understood. Part of the reason for the progressive acceleration of inflation will be found in the connection between the budget deficit and the balance-of-payments deficit, and the government response in the form of devaluations and subsidy cuts.Less
This chapter examines the dynamics of high inflation under accommodation to price shocks. One simple approach to the budget as a source of the inflationary process is to consider the link of the form of finance, namely seigniorage revenue and the average rate of inflation, on the hypothetical assumption that one is observing fluctuations around steady states. This gives at least some lead on the possible long-run relationship between the monetization of deficits and the rate of inflation. A closer historical look at the changing trade-off between inflation, real GDP growth, and the current account leads to the detailed dynamics of the inflationary process without which the ‘shocks and accommodation’ nature of the process cannot be understood. Part of the reason for the progressive acceleration of inflation will be found in the connection between the budget deficit and the balance-of-payments deficit, and the government response in the form of devaluations and subsidy cuts.
Michael Bruno
- Published in print:
- 1993
- Published Online:
- September 2006
- ISBN:
- 9780198286639
- eISBN:
- 9780191603839
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198286635.003.0004
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter examines the political economy of failed partial attempts to stabilize, and the reasons for delays in the implementation of a heterodox programme, which was proposed in different ...
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This chapter examines the political economy of failed partial attempts to stabilize, and the reasons for delays in the implementation of a heterodox programme, which was proposed in different versions since the beginning of 1981. Inherent risk aversion and short-term planning horizons of politicians as well as inconclusive professional debates amongst economists each played their respective delaying roles in the process, culminating in the economic and political impasse that led to the design and final implementation of the shock-stabilization programme in 1985.Less
This chapter examines the political economy of failed partial attempts to stabilize, and the reasons for delays in the implementation of a heterodox programme, which was proposed in different versions since the beginning of 1981. Inherent risk aversion and short-term planning horizons of politicians as well as inconclusive professional debates amongst economists each played their respective delaying roles in the process, culminating in the economic and political impasse that led to the design and final implementation of the shock-stabilization programme in 1985.
Michael Bruno
- Published in print:
- 1993
- Published Online:
- September 2006
- ISBN:
- 9780198286639
- eISBN:
- 9780191603839
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198286635.003.0007
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter considers the most recent stabilization and reform experience in six Eastern European countries, starting with the earlier Yugoslav and Polish shock programmes of 1990 and followed by ...
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This chapter considers the most recent stabilization and reform experience in six Eastern European countries, starting with the earlier Yugoslav and Polish shock programmes of 1990 and followed by Czechoslovakia, Bulgaria, and Romania in 1991. Hungary, which had a much longer and earlier reform experience, also carried out a successful and more conventional stabilization programme in 1991. The analysis of the dramatic developments in Eastern Europe focuses on the underlying similarities of the macro-economics of stabilization across countries and regions, and attempts to isolate the particular problems that are common to Eastern and Central Europe but substantially different from the earlier experience elsewhere.Less
This chapter considers the most recent stabilization and reform experience in six Eastern European countries, starting with the earlier Yugoslav and Polish shock programmes of 1990 and followed by Czechoslovakia, Bulgaria, and Romania in 1991. Hungary, which had a much longer and earlier reform experience, also carried out a successful and more conventional stabilization programme in 1991. The analysis of the dramatic developments in Eastern Europe focuses on the underlying similarities of the macro-economics of stabilization across countries and regions, and attempts to isolate the particular problems that are common to Eastern and Central Europe but substantially different from the earlier experience elsewhere.
Michael Bruno
- Published in print:
- 1993
- Published Online:
- September 2006
- ISBN:
- 9780198286639
- eISBN:
- 9780191603839
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198286635.003.0008
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter returns to a number of common issues that emerged from the cumulative experience reviewed in previous chapters, considers open theoretical questions, and discusses some of the policy ...
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This chapter returns to a number of common issues that emerged from the cumulative experience reviewed in previous chapters, considers open theoretical questions, and discusses some of the policy lessons. It looks at some of the theoretical arguments that have been suggested to explain the long delays in the adoption of stabilization programmes. It asks whether a universal paradigm has emerged on the necessary basic components of stabilization and structural reform programmes. It then broadens the question by asking if any generalizable lessons can be learned on the optimal sequencing of the various components of reform and whether there exists a real choice between ‘big bang’ and gradualist stabilization and reform strategies.Less
This chapter returns to a number of common issues that emerged from the cumulative experience reviewed in previous chapters, considers open theoretical questions, and discusses some of the policy lessons. It looks at some of the theoretical arguments that have been suggested to explain the long delays in the adoption of stabilization programmes. It asks whether a universal paradigm has emerged on the necessary basic components of stabilization and structural reform programmes. It then broadens the question by asking if any generalizable lessons can be learned on the optimal sequencing of the various components of reform and whether there exists a real choice between ‘big bang’ and gradualist stabilization and reform strategies.
Phillippe Aghion and Abhijit Banerjee
- Published in print:
- 2005
- Published Online:
- January 2007
- ISBN:
- 9780199248612
- eISBN:
- 9780191714719
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199248612.003.0004
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter argues, based on Aghino-Angeletos-Banerjee-Manova (AABM), that the presence of credit constraints can help us understand why volatility is so costly for growth. The basic idea behind ...
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This chapter argues, based on Aghino-Angeletos-Banerjee-Manova (AABM), that the presence of credit constraints can help us understand why volatility is so costly for growth. The basic idea behind this explanation is rather obvious: The long-term productivity-enhancing investment in the model developed in the previous chapter creates a need for liquidity; with perfect credit markets the necessary liquidity is always supplied. Not so with imperfect credit markets: The liquidity shock is only financed when the firm has enough profits, because only profitable firms can borrow a lot. A negative productivity shock, by making firms less profitable, makes it less likely that the liquidity need would not be met. As a result, a fraction of the potentially productivity-enhancing long-term investments will go to waste, with obvious consequences for growth.Less
This chapter argues, based on Aghino-Angeletos-Banerjee-Manova (AABM), that the presence of credit constraints can help us understand why volatility is so costly for growth. The basic idea behind this explanation is rather obvious: The long-term productivity-enhancing investment in the model developed in the previous chapter creates a need for liquidity; with perfect credit markets the necessary liquidity is always supplied. Not so with imperfect credit markets: The liquidity shock is only financed when the firm has enough profits, because only profitable firms can borrow a lot. A negative productivity shock, by making firms less profitable, makes it less likely that the liquidity need would not be met. As a result, a fraction of the potentially productivity-enhancing long-term investments will go to waste, with obvious consequences for growth.
Gøsta Esping‐Andersen
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198742005
- eISBN:
- 9780191599163
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198742002.003.0008
- Subject:
- Political Science, Comparative Politics
The introduction discusses the idea of a mature welfare state, and shows that the welfare state of the 1970s can be regarded as mature basically because few, if any, major changes have occurred since ...
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The introduction discusses the idea of a mature welfare state, and shows that the welfare state of the 1970s can be regarded as mature basically because few, if any, major changes have occurred since then. Not only did the welfare state stabilize but so also did the embracing welfare regime. Looks at the welfare state crisis and the paradoxes within this, noting (as at the beginning of the book) that the shocks come principally from the labour market and declining family stability, thus bringing growing pressures on the welfare state itself, and implying that it needs to be examined. Suggests that it would be much more fruitful to analyse the crisis as pertaining to welfare regimes. Argues that the essence of the problem lies in the growing disjuncture between existing institutional arrangements and emerging risk profiles: the bottom‐line analytical question is how and under what conditions welfare regimes are being recast to respond to the new—post‐industrial—economic realities. The first two sections look at the public attitudes to the welfare state, and the welfare state as a Trojan horse. The following sections discuss new risks and new equalities of welfare regimes—how they deal with the Trojan horse—under the following headings: Managing the Labour Market; Labour Market Risks and Welfare Regimes; Family Risks and Welfare Regimes; and Welfare State Adaptation to Exogenous Shocks and New Risks.Less
The introduction discusses the idea of a mature welfare state, and shows that the welfare state of the 1970s can be regarded as mature basically because few, if any, major changes have occurred since then. Not only did the welfare state stabilize but so also did the embracing welfare regime. Looks at the welfare state crisis and the paradoxes within this, noting (as at the beginning of the book) that the shocks come principally from the labour market and declining family stability, thus bringing growing pressures on the welfare state itself, and implying that it needs to be examined. Suggests that it would be much more fruitful to analyse the crisis as pertaining to welfare regimes. Argues that the essence of the problem lies in the growing disjuncture between existing institutional arrangements and emerging risk profiles: the bottom‐line analytical question is how and under what conditions welfare regimes are being recast to respond to the new—post‐industrial—economic realities. The first two sections look at the public attitudes to the welfare state, and the welfare state as a Trojan horse. The following sections discuss new risks and new equalities of welfare regimes—how they deal with the Trojan horse—under the following headings: Managing the Labour Market; Labour Market Risks and Welfare Regimes; Family Risks and Welfare Regimes; and Welfare State Adaptation to Exogenous Shocks and New Risks.
Torben Iversen
- Published in print:
- 2007
- Published Online:
- September 2008
- ISBN:
- 9780199206483
- eISBN:
- 9780191709715
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199206483.003.0010
- Subject:
- Business and Management, Political Economy
This chapter explores whether governments in different varieties of capitalism respond differently to common economic shocks. It is often assumed that such shocks have a homogenizing effect on ...
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This chapter explores whether governments in different varieties of capitalism respond differently to common economic shocks. It is often assumed that such shocks have a homogenizing effect on government policies, but I find the opposite to be the case (using OECD data and non-linear regression techniques). In economies with training systems that emphasize specific skills (CMEs), demand for social insurance is more sensitive to adverse economic shocks than in LMEs. In turn, polities with proportional representation (PR) are more sensitive to such demands, suggesting that PR is a complement to coordinated capitalism. The chapter also includes an analysis of the conditioning effects of wage bargaining institutions on shocks to the wage distribution, and concludes with a discussion of whether an increasingly bifurcated income and risk structure may change the politics of compensation.Less
This chapter explores whether governments in different varieties of capitalism respond differently to common economic shocks. It is often assumed that such shocks have a homogenizing effect on government policies, but I find the opposite to be the case (using OECD data and non-linear regression techniques). In economies with training systems that emphasize specific skills (CMEs), demand for social insurance is more sensitive to adverse economic shocks than in LMEs. In turn, polities with proportional representation (PR) are more sensitive to such demands, suggesting that PR is a complement to coordinated capitalism. The chapter also includes an analysis of the conditioning effects of wage bargaining institutions on shocks to the wage distribution, and concludes with a discussion of whether an increasingly bifurcated income and risk structure may change the politics of compensation.
Helen G. Levy
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199230778
- eISBN:
- 9780191710971
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199230778.003.0008
- Subject:
- Business and Management, Pensions and Pension Management
This chapter asks how well Baby Boomers are protected against later-life health shocks. While exposure to such shocks is relatively high, the realization of risk appears unlikely and relatively ...
More
This chapter asks how well Baby Boomers are protected against later-life health shocks. While exposure to such shocks is relatively high, the realization of risk appears unlikely and relatively little wealth is at risk. Almost one-quarter of the original Health and Retirement Study cohort was uninsured at some point in the six-year window before Medicare eligibility, but only 2% had an uninsured hospitalization in this window. Moreover, the amount at stake for the median uninsured person is relatively low. Since many in this age bracket approach old age in poor financial shape, lack of assets may be a larger problem than lack of health insurance. Policies aimed at preventing poverty among the elderly may be more important than policies to expand health insurance coverage among those on the verge of retirement.Less
This chapter asks how well Baby Boomers are protected against later-life health shocks. While exposure to such shocks is relatively high, the realization of risk appears unlikely and relatively little wealth is at risk. Almost one-quarter of the original Health and Retirement Study cohort was uninsured at some point in the six-year window before Medicare eligibility, but only 2% had an uninsured hospitalization in this window. Moreover, the amount at stake for the median uninsured person is relatively low. Since many in this age bracket approach old age in poor financial shape, lack of assets may be a larger problem than lack of health insurance. Policies aimed at preventing poverty among the elderly may be more important than policies to expand health insurance coverage among those on the verge of retirement.
