Macroeconomic Perspective Research Articles

Global Market Integration and the Creative Economy: The Paradox of Industry Convergence and Regulatory Divergence

From a macroeconomic perspective, the historical evolution of trade and commerce has been closely entangled in a two-way or paradoxical relationship with the evolution of laws, in which one is inextricably linked to the other and both mutually influence each other. At the microeconomic level, the same can be said about the relationship between businesses or industries and their underlying technologies. Recent changes, and notably, the accelerated pace at which we recognize change, has led to a widespread trend of ‘convergence’. Convergence has been recognized in different contexts, namely, in languages, technologies and industries, as well as in regulatory matters. The objective of this article is thus to first trace and describe this convergence from a linguistic, technological, and industrial perspective. Subsequently, in order to ponder the future regulatory challenges in the regulation of global trade under the aegis of the World Trade Organization (WTO), it will focus on the question of whether technological and industrial convergence should be met by a similar trend towards regulatory convergence through regulatory harmonization. Put differently, it will critically evaluate the present situation of regulatory divergence in the form of regulatory diversity and regulatory competition with a view to contributing to the debate about improving global trade regulation in the 21st century.

Understanding long run economic development as an evolutionary process

A broad sketch of an evolutionary theory of long run economic development is presented in this article, considering the basic processes and structures involved. The problematic orientation of Neoclassical growth theory is discussed, pointing out its limited macroeconomic perspective, the weak consideration of technological change and of demand, the lack of attention to institutional settings. An explanation of economic development has to consider the key role of innovation and the process of creative destruction, in the context of Schumpeterian insights and evolutionary perspectives. I argue that economists need to consider three somewhat separate bodies of research on economic development. One is the evolutionary analysis that follows Schumpeter. A second is the research on technological advance as an evolutionary process. The third is focused on institutions and how they mold the development process, and how they themselves evolve. Moreover, the role of demand in shaping growth dynamics and business cycles—stressed by Keynes and post-Keynesian approaches—has to be integrated in such evolutionary perspectives in ways that are only now starting to emerge.

A stochastic recovery model of influenza pandemic effects on interdependent workforce systems.

Outbreaks of infectious diseases, such as pandemics, can result in adverse consequences and major economic losses across various economic sectors. Based on findings from the 2009 A H1N1 pandemic in the National Capital Region (NCR), this paper presents a recovery analysis for workforce disruptions using economic input–output modeling. The model formulation takes into consideration the dynamic interdependencies across sectors in an economic system in addition to the inherent characteristics of the economic sectors. From a macroeconomic perspective, the risk of the influenza disaster can be modeled using two risk metrics. First, there is the level of inoperability, which represents the percentage difference between the ideal production level and the degraded production level. Second, the economic loss metric represents the financial value associated with the reduced output. The contribution of this work revolves around the modeling of uncertainties triggered by new perturbations to interdependent economic sectors within an influenza pandemic timeline. We model the level of inoperability of economic sectors throughout their recovery horizon from the initial outbreak of the disaster using a dynamic model. Moreover, we use the level of inoperability values to quantify the cumulative economic losses incurred by the sectors within the recovery horizon. Finally, we revisit the 2009 NCR pandemic scenario to demonstrate the use of uncertainty analysis in modeling the inoperability and economic loss behaviors due to time-varying perturbations and their associated ripple effects to interdependent economic sectors.

Examining the Economic and Political Dimensions of the Eastern Mediterranean Problem from a Macroeconomic Perspective within the Framework of Neo-Realism and Neo-Liberal

Examining the Economic and Political Dimensions of the Eastern Mediterranean Problem from a Macroeconomic Perspective within the Framework of Neo-Realism and Neo-Liberal

SMEs Growth in the Czech Republic: Some Macroeconomic Perspectives

SMEs Growth in the Czech Republic: Some Macroeconomic Perspectives

General Information Product Theory in Economics Science

The information, including the knowledge in the science, business and society, is being generated, transmitted, received and analyzed by the humans in the various countries for many centuries. The generated information can be structured, coded, stored and retrieved, representing a most valuable asset in possession by the acting economic agents in the modern economies of the scales and scopes in the information societies in an information age. The authors introduce a notion on the general information product (GIP) in the macroeconomics, thoughtfully defining the GIP(t) as a ratio of the total generated information stream to the selected finite time period (GIP(t)=total generated information/time) in the macroeconomics for the first time. Authors consider the GIP(t) as a main parameter, which evaluates the performance of the economies of the scales and scopes from the macroeconomics perspective. Authors assume that the multiple possible origins of the fluctuations of GIP(t) and the accurate characterization of GIP(t) can be made in agreement with the Ledenyov theory on the GIP(t) in the macroeconomics. Authors believe that the Ledenyov indicator GIP(t) instead of the Kuznets indicator GDP(t), can be successfully used to accurately measure the state/performance of any economy in the time domain. Authors think that the GIP(t) is a discrete-time digital signal (the Ledenyov digital wave with the Markov information), but it is not the continuous-time signals (the continuous waves), because of the discrete-time digital nature of information generation process in the developed/developing economies. The article considers the empirical theoretical approaches and reveals the possible practical technical limitations in relation to the modeling of the new types of the discrete-time digital signals generators for the Ledenyov digital waves generation in the economies of the scales and scopes at the time of globalization.

A Historical View on the Development of Czech Economy from 1970

The paper describes the changes in Czech economy in the period between 1970 and 2010 from the macroeconomic perspective. It is based on the detailed study of sources and uses of gross domestic product with respect to labour inputs. Used data sources come from recently published historical data on GDP combined with the data of oicial statistics. The paper should provide an analysis of the main determinants of growth based on output and expenditure approach to GDP and employment including the industrial analysis of labour productivity. In this paper labour productivity is estimated as the ratio of gross value added in the constant prices over the input used. As we have the data of total employment in full time equivalent we used them as the only possible labour input for the productivity analysis for the period in question.

Spielräume für eine gerechtere Steuerpolitik in den OECD-Ländern

WSI-Mitteilungen , Seite 263 - 271

Not Dead Yet: Biblical Perspective on Macroeconomic Policymaking for the Long Run

In the wake of the Great Recession, mainstream macroeconomic perspectives in the developed world have been increasingly called into question. What, if anything, does the Bible have to say about such things? In this essay, I examine general macroeconomic principles laid out in Scripture, as well as specific biblical “case studies” that illustrate those principles in action. Moreover, I assess several modern economic schools both from a biblical vantage point and in light of recent history. I find that the Bible offers practical economic guidelines that in certain respects accord well with the heterodox views of the Post-Keynesian school, particularly with regard to policies surrounding debt and financial instability on the one hand and poverty, unemployment, and inequality on the other. I also argue that the application of biblical principles to macroeconomic problems in developed economies may entail dramatic changes to current policy stances — and that it is incumbent upon the evangelical Church to take part in the ongoing policy debate.

Kapitał ludzki jako źródło konkurencyjności państw członkowskich Unii Europejskiej

The purpose of the article was to present the essence of competitiveness and human capital from the macroeconomic perspective, as well as to present human capital as a source of competitiveness of the European Union member states. In order to assess the human capital of the member states, the level of education of residents, as well as calculated synthetic indicator of human capital were analysed. In addition, relationship between the level of the indicator of human capital and competitiveness of the member states, measured by GDP per capita was examined.

“Quorum pars magna fui”: On the Cantillon–Marx connection

Starting from Marx's unpublished excerpts from the Essai sur la Nature du Commerce én Général by Richard Cantillon, this paper traces the impact that the reading of the Essai exercised on both Marx's assessment of Cantillon and his own view of the origins of political economy. It is shown that closer acquaintance of Marx with Quesnay's Tableau Ēconomique and with Cantillon's Essai occurred almost simultaneously, and this joint discovery led him to supplement his value-centred view of early classical economists with a new circular flow, or macroeconomic perspective within which Cantillon's role was recognised to be crucial. Marx's analysis of the Cantillon–Quesnay connection is supported by a review of an early contribution to Cantillon scholarship by the Soviet economist Alexandra Eidelnant.

Local Resources and Procurement Practices in Humanitarian Supply Chains: An Empirical Examination of Large‐Scale House Reconstruction Projects

ABSTRACTDifferent procurement decisions taken by relief organizations can result in considerably different implications in regards to transport, storage, and distribution of humanitarian aid and ultimately can influence the performance of the humanitarian supply chain and the delivery of the humanitarian aid. In this article, we look into what resources are needed and how these resources evolve in the delivery of humanitarian aid. Drawing on the resource‐based view of the firm, we develop a framework to categorize the impact of local resources on the configuration of humanitarian supply chains. In contrast to other papers, the importance of localizing the configuration of the humanitarian supply chain is not only conceptually recognized, but empirical investigations are also provided. In terms of methodology, this article is based on the analysis of secondary data from two housing reconstruction projects. Findings indicate that the use of local resources in humanitarian aid has positive effects on programs’ overall supply chain performance and these effects are not only related to the macroeconomic perspective, but benefits expand to improvements related to the use of knowledge. At the same time, it was found that local sourcing often comes with a number of problems. For example, in one of the cases, significant problems existed, which were related to the scarcity of local supplies. Both housing reconstruction projects have indicated the continuous need for changes throughout the programs as a dynamic supply chain configuration is important for the long‐term sustainability of reconstruction aid.

A micro approach to cognitive skills’ growth in a university context

This paper focuses on the measurement of human capital, specifically on the growth of cognitive skills (CS) during the higher education at university. CS have already been evaluated in a macroeconomic perspective inside the neoclassical growth models, but not still in a micro perspective. However the measure of educational quality and learning process is still an issue not fully addressed. The micro approach allows the researcher to focus on the evaluation of CS acquisition process. Based on these measurements, different types of CS accumulation can be identified. We will investigate CS through nonlinear latent growth modeling, and we will apply this methodology to administrative data of an Italian university.

Economic Aspects of Prognostics and Health Management Systems in the Wind Industry

Since Wind Turbines are one of the most dynamically stressed structures, all parts should be subjected to Prognostics and Health Management System. This is especially true for the supporting structure since it is exposed to high fatigue loads. The current technical trend in the O&M business is to improve the life-time of these supporting structures. In particular, when considering the supporting structure of a wind turbine from a civil engineering perspective; a long term approach is most beneficial in financial, ecological and social aspects. To meet the challenge of managing the life-time of wind turbine supporting structures efficiently, it is necessary to develop technical concepts assessing the consumed life-time of a wind turbine. Future PHM systems of wind turbines must include this function.The global O&M market in the wind energy industry grew in the period from 2005 to 2011 at a rate of around 18 per cent, annually. The main growth driver is the aging overall turbine park. Especially in the European onshore wind market there will be a profit migration of the O&M business at the expense of new construction until 2020. Until the year 2020, three quarters of the total profit in the wind energy industry will be occupied by O&M services (Oliver Wymann, 2011).This paper discusses the special economic aspects of Prognostics and Health Management Systems focusing on a remaining lifetime prediction as a basic maintenance system in application within the wind industry. Besides studies of the future O&M market development, concepts to lower the levelized cost of energy through PHM from a macroeconomic perspective will also be discussed.Keywords: Wind O&M market, Lifetime management, Levelized cost of energy, return on investment analysis.

Transatlantic trade and investment partnership: sectoral and macroeconomic perspectives for Germany, the EU and the US

The EU and the US have started negotiations on a Transatlantic Trade and Investment Partnership Agreement (TTIP) which could bring a considerable increase of exports and output as well as changes in the composition of output and employment. Thus export simulation studies in combination with input output analysis and employment analysis is useful. In the analysis presented the focus is mainly on sectoral output and employment effects where the key sectors are the automotive sector, chemical industry, information and communication technology production, pharmaceuticals and machinery and equipment. Backward sector links are analysed and found to be quite important in the automotive sector, the chemical industry, the machinery and equipment sector in both Germany and the US; in Germany also in ICT production. However, most of the observed sectors have weak forward linkage. Input output analysis is also used to identify employment effects in various sectors: the pure employment effect of a 20 % export expansion in Germany amounts to about 800 000 new jobs. Looking only at the US and German perspective turns out to be misleading—the high imports of intermediate inputs of German firms from EU partner countries suggests that a comparison EU-US is analytically required for some key issues and that considering the effects on EU partners is also useful. There is a host of key policy issues, including the issue of extended sustainability reporting.

Relapse prevention in drug addiction: addressing a messy problem by IS Action Research

After primarily successful drug-dependency rehabilitation, relapses occur frequently. There is a tremendous lack of drug-specific outpatient psychotherapy and self-help groups especially in rural areas. Therefore, new approaches must be integrated to reduce relapse rates after inpatient addiction treatment, especially in case of drug dependence. The present paper aims to address this complex problem using an Action Research (AR) methodology. In addition to the systematic literature search, we show the results of interviews with patients and therapists as key stakeholders. After that, the iterative cyclical nature of AR reinforced our research, including the role of adequate ripening concerning inpatient care, the macroeconomic perspective on the insurance companies' patient allocation, the importance of external structure and skills in outpatient aftercare and specific impulses for dedicated information systems (ISs). We finally develop the hypothesis that a mobile technology-based IS could (a) be successfully implemented for patients recovering from drug dependence and (b) improve their outcome.

Does Chinese investment affect Sub-Saharan African growth?

Purpose – The purpose of this paper is to examine the impact of foreign direct investment (FDI) on GDP growth in Sub-Saharan Africa (SSA) with particular emphasis on Chinese FDI. Design/methodology/approach – Based on the growth accounting model, a dynamic GMM estimation is used. To compare the results with previous findings, the paper also uses OLS and fixed effect estimates. Findings – The paper finds that neither FDI net inflows in SSA nor Chinese FDI has a significant effect on economic growth in SSA. By testing other economic growth determinants in SSA countries based on growth accounting theory, the paper finds the change in capital stock per labor has a persistent and significant positive impact on growth in SSA. Originality/value – This study provides new evidence on the influence of Chinese FDI on the growth of the SSA economies. There are very few empirical studies that analyze the growth of the SSA economies from a macroeconomic perspective using a partial equilibrium model. This paper tests th...

El sector petrolero en Ecuador. 2000–2010

This text analyzes a variety of aspects related to production, fiscal topics and the external insertion of oil activities in Ecuador since 2000. This time period is when dollarization took place and includes two economic policies for the sector: the first inspired by neoliberal models and the second involving efforts by the government of Rafael Correa to recover oil sovereignty. From a macroeconomic perspective, and taking into account elements of the regulatory framework, the purpose of this work is to demonstrate the relationship between these two ideas using the hypothesis that the productive aspects – this text emphasizes where this area is lacking – constitute the basis of improper income appropriation and dependent insertion into the global oil market

The Independent Foreclosure Review Program -- From Capitalist Cronyism to Constitutional Crisis

Through the first seven years of the 21st century, a buying and lending binge created an unprecedented price bubble not just in the U.S. real estate market; but worldwide as well. In 2008, real estate prices came crashing down so suddenly and violently that the entire world faced an economic crisis not seen since the Great Depression in the 1930s. Because the aftermath of this calamity has yet to fully play out as of 2014, some might argue that it is still too soon to assess it from an historical perspective. They might argue that the situation is still too fluid or still developing. Others might argue that the world economy has nearly recovered now that the U.S. stock market has gained back all of its losses and is once again trading at record highs. Thus a depression-era type of economic stagnation was averted. So the crisis is over and it’s time to look forward, not backward. These arguments indeed have merit if one were to view the economy from a macroeconomic perspective as if that’s all that matters. However none of these arguments consider the paradigm shift in wealth distribution from a microeconomic perspective that occurred as a result of this crisis; a shift that is still underway with no meaningful governance to stop it.

Impact of Regulation on Collateralization Policies of Banks - Evidence from India

Housing satisfies investment and consumption needs for households - about 11% of Indian households purchase homes through home mortgages loan from Banks and Housing Finance Companies (HFCs). Lending norms by banks and HFCs for housing mortgage loans are largely determined by two factors: Loan-to-value ratio (LTV) and Interest-to-Income (Debt-to-income, or DTI) ratio. From a macro-economic perspective regulations set by the Central Bank, the money supply available in the market and the competitiveness of home loan sector influence the collateralization policies of Banks and HFCs.Using data for one of the largest mortgage providers in India for multiple cities, patterns in LTV and Interest-to-Income ratio are identified over a time period of ten years from 1995 to 2005. Banks have opposing interests in settling LTV and DTI targets, where they balance the competitiveness of expansionary LTV vis-a-vis the risk of overvaluation of collateral. The study expects to analyse whether collateralization requirements of banks and HFC’s change with reference to property prices, and if so, to quantify the direction and magnitude of such change.