Neoclassical Theory Research Articles

Generalized continuum theory for nematic elastomers: Non-affine motion and characteristic behavior

We develop a physically-motivated mechanical theory for predicting the behavior of nematic elastomers — a subset of liquid crystal elastomers (LCEs). We begin with a statistical description of network geometry that naturally incorporates independent descriptors for the mesogens, which create the nematic phase, and the polymer chains, which are assumed to not deform affinely with global deformations. From here, we develop thermodynamically consistent constitutive laws based on classical continuum mechanics principles and ultimately provide simple governing equations with transparent physical interpretation. We found that our framework converges identically to two previously developed mechanical theories, including the well-known neo-classical theory, when considering the extreme ends of our parametric space. We then explore the new predictive capabilities of our model inside these two extremes and illustrate its unique predictions at finite strains, which are distinct in form from other theories. We validate our model using published experimental data from four monodomain nematic liquid crystal elastomers.

Global Perspectives on Fiscal Policy and Labor Income-Leisure Choices: Theoretical and Practical Insights

In macroeconomic literature, fiscal policy is considered a powerful tool to achieve sustainable development, full employment, and social well-being in developed and developing societies. For this, public authority uses expansionary and contractionary tax policies to achieve stable growth and employment environment for the stable labor market. This study theoretically and empirically investigates the problem of inference on income-leisure labor preference. Also, it considers the impact of tax and expenditure structure on labor choices regarding working hours under the assumption of neoclassical theory. We use quantile regression analysis to investigate the data set for worldwide, high, and low-income countries from 2000 to 2022, for the macro-level analysis based on the empirical investigation of 123 countries cross-section panel. The outcomes show that when the fiscal authorities impose a regressive form of taxes, it may hurt the labor wages and distribution of income-leisure preferences or the welfare of labor. Similarly, non-labor income hurts labor utility through a large volume of non-development expenditure. However, when the progressive form of taxes is imposed, it may improve the labor utility. At the same time, on the other side, when fiscal authority disburses the development expenditure, it may support the non-labor income through the provision of public goods and services. For practice, the empirical results of quantile regression show that government expenditure has a positive while tax hurts labor supply. Fiscal policy in low-income countries has provided an alternative outcome

Kebijakan Perdagangan Uni Eropa terhadap Produk Logam Dasar

Trade relations between the European Union and China experienced rapid growth during the first two decades of the 21st century. The increase in trade relations is in line with the implementation of EU trade barriers through anti-dumping investigation reports at the World Trade Organization (WTO) against Chinese products. In the period 2001 – 2022, Chinese base metal products became the commodity with the most reported cases in antidumping investigations carried out by the EU at the WTO. However, in the same period, the value of imports of basic metal products to the European Union was lower compared to the value of imports of other products such as electricity & equipment as well as machine products, nuclear reactors and boilers. This article aims to explain the reasons behind the European Union's stance in making Chinese base metal products the most common commodity in antidumping investigation reports at the WTO. This article uses Alan Bryman's qualitative method, and the neoclassical realism theory proposed by Gideon Rose to analyze European Union policy towards Chinese Base Metal Products. The application of systemic pressure variables in neoclassical realism theory influences the European Union's position in the international system as an external factor, while there are other variables, in this case internal factors, which also influence the European Union's strategic trade policy-making process through the European Commission. The findings of this article show that China's dominance in world metals consumption and production since the early 2000s, especially in the 2013 – 2017 period, triggered the European Commission's perception that the European base metals industry was experiencing a decline in competitiveness and needed protection. In the 2013-2017 period, China's contribution to the world base metals market increased by 13% compared to 8% in the previous decade. On the other hand, the European Commission has maximized its influence in mobilizing national forces as outlined in the resolution document 2017/C399/12 to build a sustainable base metals industry. The European Union's trade policy in making Chinese base metal products the highest case report in antidumping investigations at the WTO over the last two decades, was driven by the European Commission, as the trade policy formulation unit in the European Union, to respond to systemic challenges in the global base metals market.

Impact of Migration on Time Use Pattern of Left-Behind Male and Female in Rural Bangladesh

This study uses neoclassical labour theory to examine the association between migration and the time-spending behaviour of left behind family members by gender and the female relationship with migrated members. Using two-year panel data, this study controls the individual-level time-invariant factors to correct potential self-selection. The study finds that migration of a family member is associated with decreasing off-farm labour of both working-age females and males. Additionally, it is observed that the leisure time of working-age females increases while their work burden on domestic labour decreases. Migration also increases off-farm labour of left-behind wives when only the husbands migrate and decreases off-farm and domestic labour, and increases the leisure of left-behind mothers when only sons/daughters migrate. Thus, migration reshapes the left behind family members’ time allocation between labour and leisure with a heterogeneous impact on the wives and mothers.

The Impact of Brain Drain and Unemployment on Economic Growth in Nigeria

Economic growth, which is the consistent rise in national income or output, which mostly entails an expansion of an economy's flow of goods and services—determines a country's capacity to withstand fierce competition on the international market. The main objective of this study is to examine the impact of brain drain and unemployment on economic growth in Nigeria. This study is anchored on neoclassical micro theory. This study examines the impact of brain drain and unemployment on economic growth in Nigeria by using the ordinary least square method. As regards the first objective, the study discovered that the major cause of brain drain in Nigeria is poor remuneration which is rampant in professions in Nigeria. Regarding the second objective, the study found out that brain drain is detrimental to the economic growth in Nigeria. As regards the third objective, the study found out that brain drain and unemployment hinders economic growth in Nigeria. The emigration of skilled professionals from Nigeria, poses a dangerous risk that can undermine the government's efforts to develop the country. This study would contribute to the wealth of literature by examining the moderating effect of unemployment on the nexus between brain drain and economic growth.

Institutional Approach in Economics and Institutional Economic Thinking

Aspects of economic methodology contained in Institutional economics are often incorporated into orthodox economics. Orthodox economics means economic thoughts that use and continue classical economic views, such as free competition, perfect competition, consumer satisfaction. The person who was most influential and had a dominant role in the existence of the Institutional school was Thorstein Bunde Veblen. He criticized Classical and Neo-classical economic theories which ignored non-economic aspects such as institutions and the environment. In fact, Veblen considered that the influence of circumstances and the environment was very large on people's economic behavior. Unsupportive political and social structures can cause distortions in economic processes. For Veblen, society is an evolutionary phenomenon, everything is constantly changing. A person's behavioral patterns in society are adapted to current social conditions. If the behavior is suitable and accepted, then the behavior will continue. On the other hand, if a behavior is deemed unsuitable, the behavior will be adapted to the environment. These circumstances and environments are what Veblen called "institutions". In this case, it is explained that what Veblen means by institutions are things related to norms, values, habits and culture. Furthermore, everything is reflected in economic activities, both in production and consumption.

Factors Influencing the Competitiveness of Coffee Growers in Puebla, Mexico, to Export to the United States

This research aims to examine whether price, productivity, quality, innovation and technology transfer (TT), exchange rate, and financing are key factors that influence the export competitiveness of the coffee industry in the state of Puebla, Mexico. Previous studies on competitiveness have explored classical and neoclassical theories and new theories of international trade. We collected information by conducting an online survey using Google Forms, which included indicators for each of the variables studied. The multivariate regression model was employed to analyze the relationship between the dependent and independent variables, and we used the Statistical Package for the Social Sciences to process the data. The results indicated that the studied variables significantly affected coffee producers’ export competitiveness in Puebla. Specifically, the model’s exchange rate, quality, and productivity variables demonstrated considerable explanatory power. This underscored the importance of product quality, production volume, and factors related to the producer’s income in the decision to export coffee rather than sell it in the domestic market. Despite the emphasis placed on variables such as innovation and TT in the literature, they had limited relevance in the used model. However, we discussed several potential explanations for this outcome.

How is photon-blockade breakdown different from optical bistability? A neoclassical story

The photon-blockade breakdown bistability can be intuitively explained invoking the energy spectrum of the interacting qubit-mode system. Yet, the neoclassical solution of the driven-dissipative Jaynes-Cummings model has been shown to capture several key aspects of the phenomenon. In this paper, we set out to compare a fully quantum solution with the neo- and semiclassical solutions. Although the neoclassical theory is founded on the assumption of a pure partial state for the qubit, it is not simply the γ→0 limit of the semiclassical theory, the semi- versus neoclassical duality being a case of non-commutativity of limits. Furthermore, we show that the neoclassical predictions still hold in the case of a small qubit decay. Tracing the bistable behavior for different detunings, we show that it is robust over a significant range of Δ values. We demonstrate that the aptitude of the neoclassical description is founded on the high quantum purity of the bright state of the photon-blockade breakdown bistability, which sharply differentiates this phenomenology from conventional optical bistability. It is thereby demonstrated that driven-dissipative dynamics can produce closely separable pure steady states in an interacting bipartite.

Association Between Contraceptive Efficacy Knowledge and Method Choice: A Behavioral Economics Lens [ID 2683608

INTRODUCTION: Patients often use less effective contraception despite desire to avoid pregnancy, a decision considered “irrational” by neoclassical economic theory. “Bounded rationality,” a behavioral economics principle encompassing information failure, may underlie such decisions. We assess the role of bounded rationality on contraceptive decision-making by evaluating the relationship between contraceptive efficacy knowledge and contraceptive choice. METHODS: We used the Guttmacher’s publicly available “Continuity and Change in Contraceptive Use” dataset, a survey administered 2012–2014. Contraceptive effectiveness was grouped into Tier 1, Tier 2, “Other,” and “No Method” based on survey options and CDC classification. Contraceptive knowledge was assessed by two questions comparing effectiveness of oral contraceptive pills (OCPs) versus condoms and OCPs versus intrauterine devices (IUDs). We used logistic regression to calculate odds ratios (ORs) for the association between contraceptive tier used and contraceptive knowledge, adjusted for race/ethnicity and age, with each regression restricted to users of the two methods compared. RESULTS: Our sample included 4,634 respondents. 43.8% accurately compared OCPs and condoms; 30.1% accurately compared OCPs and IUDs. Answering that condoms are more effective than OCPs was associated with seven times greater odds of using other methods (OR 7.1; 95% CI, 4.5–11.1). Answering that OCPs are more effective than IUDs was associated with 0.01 odds of using Tier 1 over Tier 2 (95% CI, 0.005–0.05). CONCLUSION: Consistent with bounded rationality, respondents who incorrectly compared contraceptive efficacy were far more likely to use the less effective method. Contraception misconceptions, particularly regarding relative efficacy, should be assessed and addressed when offering patient-centered counseling.

Examining the Interplay of Global Public Investment, Fiscal Sustainability, and Economic Dynamics: A Comprehensive Analysis

This study searches the intricate relationship between public investment, fiscal sustainability, and economic dynamics, exploring their connections, theoretical foundations, empirical evidence, and policy implications. It highlights the central role of strategic public investment in driving economic growth, maintaining stability, and fostering inclusive development, examining various theoretical perspectives such as neo-classical growth theory, Keynesian economics, endogenous growth theory, new institutional economics, and political economy perspectives to understand how public investment shapes economic outcomes. By synthesizing empirical evidence, the analysis demonstrates the positive association between public investment and critical economic indicators like growth, fiscal sustainability, productivity, and employment. It emphasizes the importance of targeted public investment in infrastructure, education, healthcare, and innovation in promoting economic prosperity and societal advancement. Moreover, drawing on case studies from diverse regions, the study provides insights into effective strategies for public investment and infrastructure development, highlighting their impacts and challenges. Policy recommendations stemming from the findings advocate for a holistic approach that includes strategic investment, fiscal responsibility, efficiency enhancement, inclusivity promotion, and international cooperation. These recommendations underscore the need to align public investment strategies with national development priorities, ensure fiscal sustainability through prudent management, enhance investment efficiency, foster inclusivity, and leverage global partnerships to tackle common challenges. By adopting these recommendations, policymakers can pave the way for sustainable development and prosperity, ensuring that public investment acts as a driver for positive economic and social change.

Transport and Electricity Infrastructures and Economic Growth and Development in Selected Sub-Saharan African Countries

Economic postulations suggest that the interrelationship between changes in incomes, capital and labour which can be substituted into macroeconomic neoclassical and steady-state growth theories drives economic development. Arising from the above economic axiom, this study investigated the impact of transport and electricity infrastructures on economic development and growth in sub-Saharan Africa. The study used panel data from fifteen (15) sub-Saharan African countries. Panel data were obtained from statistical bulletins of the various countries and World Bank Indicators (WBI) from 2000-2022. Data obtained were analyzed via descriptive, diagnostic and inferential statistics. Specifically, the fixed and random effects regression revealed that while there is a significant relationship between transportation and electricity infrastructures and economic growth, an insignificant relationship was found between transportation and electricity infrastructures and economic development in the selected sub-Saharan African countries. Based on the findings, it was recommended among others that governments in sub-Saharan Africa needs to increase their contributions and support for electricity and transportation infrastructures; this can be done by increasing budgetary allocation for critical infrastructures in countries of sub-Saharan Africa

Foreign direct investment and employments in Asia Pacific nations: The moderating role of labor quality

This study analyzes the impact of Foreign Direct Investment and labor quality on employment in 29 Asia-Pacific nations from 1990 to 2020. We employ the Dynamic System Generalized Method of Moments to estimate the results. This study finds that a ten percent increase in Foreign Direct Investment creates an additional 0.890 % in employment, and a percent increase in labor quality increases employment by 0.0021 %. Our study also figures a moderating role of labor quality and FDI on employment in Asia Pacific countries. Our findings are robust before and after the recent financial crisis and alternative regression method. Finally, the findings are robust even if we employ an alternative estimation method. Our results are consistent with the Traditional FDI, the Neo-classical, and Resource-Based View theories. Our research generates practical policy implications to develop employment sustainably in Asia-Pacific nations.

Investment function in Marshall, Fisher and Keynes: a critique of the neoclassical theory of investment in light of the capital theory controversy

An overwhelming majority of the economics profession is taught that there is an inverse relationship between interest rate and investment expenditures. In the light of the controversies in the theory of capital, we analyse in this article the way in which Marshall, Fisher and Keynes have constructed this inverse relationship. All three were aware of the problems associated with this construction and tried—albeit unsuccessfully—different ways to get around them. This implies that within the neoclassical analysis there does not exist a theoretically consistent conceptualisation of an investment demand function inversely responsive to the rate of interest.

Globalization and Human Mobility: In Pursuit of Labour Improvement

The objective of this article is to study the causes of human mobility in today's world, starting from the main cause which is the search for better job opportunities to increase their income and improve their welfare, as it is supported by the Neoclassical theory on migration. The questions established in this work to be answered are: What are the main causes of migrations? What have been its repercussions on global society? The study is based on the neoclassical migration theory, which main axis is that there are not only internal migrations, from rural to urban, but also to overseas, which have as their main cause job improvement and increasing their wage. Subsequently, in the topic of migration, economy and employment are the main causes of migration and what it entails are explored in depth, such as technological development in the host country and sending of remittances to the country of origin. In the figure there are five main reasons that are considered to be the most common causes of migrations, highlighting job improvement. Then, in the subtheme of globalization and migration, both phenomena are linked, stating that globalization has done a lot to rise the migration, since, with it, technology, social networks have been facilitated trade relations between countries and the fact that people have the impulse to migrate to always seek their social well-being.

Centring or suburbanization? Changing locations of producer services in Shanghai

Producer services are a critical indicator of global cities in advanced economies, whose spatial-temporal dynamics reflect the trajectory of urban transformation. However, the growth of producer services in China cannot be fully explained by current theories (e.g. neoclassical, institutional, global city and human capital theories), especially regarding their development process and geographical contexts. This study developed a context-sensitive analytical framework to comprehensively examine the location of producer services in Shanghai, a global city. We used rigorous geospatial analytical methods and considered sectoral differences and local contexts, especially institutional factors and urban spatial structure. We found that producer services in Shanghai were still concentrated in the city centre, but a dispersion trend could be detected, and subcentres were emerging in suburban areas. Further analysis highlighted producer service firms’ significant sector differences and various underlying spatiotemporal locational determinants. We identified positive effects of agglomeration on the emergence of centres for IT and research services. However, the concentration of financial and real estate services needs diversity, and agglomeration had a negative impact on them. Also, access to public transit promoted the development of IT and research services. Our study suggests that none of the existing theories alone can explain the location of producer servicer firms in Shanghai, and that sectoral heterogeneity and spatiality of producer services should be seriously considered in policy development and future studies.

Kirzner's argument for the relevance and uniqueness of Austrian economics relating to neoclassical theory: the tendency to equilibrium and the Jevons’ law of indifference

ABSTRACT This paper examines Kirzner's contribution to the study of the equilibrating tendency in economics. By analyzing his interpretation of Jevons’ law of indifference, we participate in the debate on Kirzner association with neoclassicals when discussing the equilibrating tendency. A reconstruction of Kirzner’s use of Jevons’ law is conducted, considering his argumentative strategy when presenting the Austrian economics ideas to other professionals in the field. We conclude that Kirzner drew close to neoclassical economics to emphasize the relevance and uniqueness of Austrian economics. By doing so, we highlight the main differences between the two currents of economic thought.

Effect of Financial Depth on Output and Economic Growth

A lot of theoretical insights have been provided on the relationship between the financial and real sectors of the economy. The emerging theoretical postulations, which are devoid of consensus, have since been the subject of empirical investigations in respect of which, again, there is no consensus, not to talk of unanimity. Thus, this state of lack of consensus in the findings of the existing empirical studies calls for further studies that are aimed at resolving the contradictions. This informs the objective of the study, which is to examine the effect of financial depth on output and economic growth across African countries spanning from 1980 to 2019. The theoretical background rests on neo-classical theory and the supply-leading hypothesis. The study employed the dynamic fixed effect (DFE) estimation technique. The result reported that the three alternative proxies for the level of financial depth have positive effects on both overall economic growth and sectoral output growth. Also, each of the seven conditioning variables has the expected effects on economic growth. Based on the findings, the study therefore recommends that policymakers take measures aimed at deepening the level of the different forms of finance in order to promote economic growth.

Gendered trait prioritization and motivations for crop varietal choice among smallholder farmers: The case of sweetpotato in Uganda

To improve productivity, several improved high-yielding sweetpotato varieties have been developed and released by breeders. However, most farmers still grow low-yielding landraces known also as farmers’ varieties. Farmers choose varieties to grow based on their preference for the attributes (traits) embodied in those varieties. Past studies have examined drivers of trait preference using neoclassical economic theory. This study departs from previous ones by applying principles from economic psychology to assess preference for, and prioritization, of sweetpotato traits among male and female sweetpotato farmers. Data used was data collected using focus group discussions and laddering, an in-depth personal interview process, and analysed using descriptive and means-end chain analyses. The study identifies mental constructs associated with farmers’ trait preference and prioritization, namely: the characteristics farmers mentally associate with the prioritized traits, the benefits those traits confer, and the life goals (i.e. values) they enable farmers to attain. Focus group discussions revealed that, among agronomic traits, high root yield is the most preferred/prioritized trait across gender categories and was followed by stress tolerance and underground root storage longevity. The most preferred quality traits across gender groups are root size and mealiness. Women, however, prioritized early maturity over men. The means-end-chain analysis identified several mental constructs farmers mentally associated with trait prioritization. They are increased sales, more income, food security, savings, and investment. These benefits are linked to various life goals (values) farmers aspire for namely, respect, security, achievement, and happiness. These findings imply that farmers’ choice of sweetpotato varieties to grow is driven by the agronomic and quality traits the varieties embody. The findings further imply that psychosocial factors underpin trait preference and prioritization by farmers.

Digital market and its adequacy of merger assessment in Indonesian business competition law

Purpose This study aims to analyze the development of digital market characteristics particularly focusing on how the strategic choices of platforms are not fully reflected in pricing. In addition, the implications for the development of theories of harm are investigated to explore the necessity of a relevant market definition in assessing infringement and evaluating the adequacy of Indonesian competition law. Design/methodology/approach This study is a legal analysis that uses statutory approaches, cases, comparative law and the development of theories of harm in digital mergers. The case approach is conducted by analyzing three cases decided by the Indonesia Business Competition Supervisory Commission. This approach provides insight into the response of Komisi Pengawas Persaingan Usaha concerning the merger and acquisition cases in the digital era as well as the provision of different analyses in conventional markets. However, competition can be potentially damaged in digital markets and a comparative law approach is taken by analyzing digital merger cases decided by authorities in other countries. Findings Results reveal that the digital market has created a “relevant market” that is challenging and blurred due to multi-sided network effects and consumer data usage characteristics. Platform-based enterprises’ prices fluctuate due to the digital market’s network effect and consumer data statistics. Smartphone prices depend on the number of apps and consumer data. Neoclassical theory focusing on product markets and location applied in Indonesia must be revised to establish a relevant digital economy market. To evaluate digital mergers, new harm theories are needed. The merger should also protect consumer data. Law Number 27 of 2022 on Personal Data Protection and Government Regulation on the Implementation of Electronic Systems and Transactions protects online consumers, a basic step in due diligence for digital mergers. The Indonesian Government should promptly strengthen the notion of “relevant markets” in the digital economy, which could lead to fair business competition violations like big data control. Notify partners or digital merger participants of the accessibility of sensitive data like transaction history and user location. Originality/value The development of digital market characteristics has implications for developing theories of harm in digital markets. Indonesian competition law needs to develop such theories of harm to analyze the potential for anticompetitive digital mergers in the digital economy era.

Fuel subsidy removal and welfare of the working class in Nigeria: Policy options for the state

Subsidy provisioning has been a feature of market economies around the World since the end of the Second World War. In Nigeria, and other Third World countries, subsidy provision is a major instrument by which Government attempts to enhance the welfare of the masses. Over the years, successive governments in Nigeria have attempted to keep the prices of certain commodities affordable by providing one form of subsidy or the other. The Premium Motor Spirit (PMS) popularly known as Petrol in Nigeria is one of the commodities covered by subsidy until 29th May, 2023 when the newly inaugurated President Ahmed Bola Tinubu in his inaugural speech declared an end to it. A major consequence of the removal of the fuel subsidy is the cut-throat pricing of PMS throughout the country. This paper attempts to interrogate the effect of fuel subsidy removal on the welfare of the working class in Nigeria with a view to ascertaining available policy options for the State. The paper adopts the neo-classical economic theory of government policy and argues that a fundamental responsibility of the State is the protection of the welfare of the citizenry through its various policy decisions. Relying on documentary evidence, the paper found that the removal of fuel subsidy has worsened the living conditions of the working class as not only do workers now have to pay more for fuel; the multiplier effect of a continuous rise in prices of PMS on other basic necessities has made life unbearable. Consequently, the paper suggests a novel approach to the conundrum where in the Federal Government would ensure domestic refining of crude oil for local consumption or reach an understanding with other countries for a non-commercial refining of crude oil for the country.