The effect of social capital on post-earthquake reconstruction (programmes) in Nantou County,Taiwan: an assessment

The study aims, through an examination of social capital on post-earthquake reconstruction programmes, to assess the impact of government's programmes on integrated community development and to draw policy implications. To this end, the study explores the programmes implemented by the government in the communities of Nantou County after the earthquake. The findings show that of the three measurements, ‘infrastructure improvement’ satisfied most respondents in the three survey areas, but in Lugu Township and in Nantou City, further improvements are needed in ‘unemployment reduction’ and ‘respondents betterment’.     

The Economics of Karl Marx: Analysis and Applications

Abstract

Controversy focuses on three questions: Is capital a distinct factor of production? Is capital quantifiable in a theoretically consistent manner? Are process stories necessary around convergence to, or changes in, equilibrium interest rates? To all, Kaldor answers ‘yes’ to Knight's ‘no’. The controversy is historically important in: 1) shifting issues in recurring twentieth century capital theory controversies from periods of production to production functions, from roundaboutness to diminishing returns; 2) revealing Knight's position on increasing knowledge offsetting diminishing returns over time as an unacknowledged ‘precursor’ of new growth theory; 3) marking the turning point for Kaldor's attachment to Austrian theory.     

Some empirics of the bivariate relationship between average subjective well-being and the sustainable wealth of nations

The World Bank's Millennium Capital Assessment (MCA) has provided per capita estimates of total wealth and its major subcategories for a large number of countries. In this article, these macro-level estimates are used to explore bivariate cross-country ‘wealth–happiness’ relationships, focussing on issues of appropriate functional form, parameter stability and outliers. For comparative purposes, ‘income–happiness’ relationships are also explored. Total wealth turns out to be strongly related to Gross National Income (GNI) per capita, due to the importance of produced and intangible capital, but not to natural capital. In contrast, when the most natural capital intensive countries are excluded as outliers, a strong relationship emerges between Subjective Well-Being (SWB) and natural capital, especially amongst high income countries. In these countries, natural capital seems to be an important wealth correlate of SWB, despite accounting for only a very small proportion of total wealth.     

Comparative Capitalisms,Ideational Political Economy and French Post-Dirigiste Responses to the Global Financial Crisis

This article advances the case for the more systematic incorporation of ideational factors into comparative capitalisms analysis as a corrective to the rational choice proclivities of the Varieties of Capitalism approach. It demonstrates the pay-off of such an ideationally attuned approach through analysis of French capitalist restructuring over the last 25 years, placing it in comparative context. A modus operandi for such ideational explanation is elaborated through delineating different national conceptions of the market, and setting out their impacts on practices of market-making. The claim made in this article is that understanding the evolution of French capitalism requires recognition of the ongoing market-making role of the French State, in combination with the French conception of the market and its embedding within a social context characterised by the inter-penetration of public and private elitist networks of France's ‘financial network economy’ which remains substantially intact. The ideational dimension is crucial because French understandings of the market and competition, the ideational building blocks of market-making, inform French state interventions and leave footprints on French institutions and market structures, and the evolutionary trajectory of French capitalism. In charting this trajectory, this article deploys the concept of post-dirigisme. We map out the parameters and causes of the post-dirigiste condition in France through examination of French bond market development, privatisation, the shift from a government- to a market- dominated financial system, and French capitalism's internationalisation. It then uses post-dirigisme to explain French state responses to the financial crisis and the banking bailout, noting how state actors, in concert with the banking elites, actively facilitated dominant market positions of French international champions.     

The Institution,the Economy and the Market: Karl Polanyi's Institutional Thought for Economists

This paper aims to clarify the logical structure of Karl Polanyi's concept of institution, especially with regard to his most important contribution to political economy—the conception of self-regulating markets as institutions. Although Polanyi did not provide a well-developed concept of institution, this article argues that such a concept exists in his work. Moreover, there is in Polanyi's work a sophisticated institutionalist account of the self-regulating market that has been largely overlooked as Polanyi does not present it explicitly. Analyzing the economy as an institutionalized process, as Polanyi does, reveals that the market is neither a natural nor a spontaneous phenomenon—a conclusion that runs counter to conventional economic thinking. Polanyi's approach enables us to view capitalism (the ‘market society’ in Polanyi's language) through a highly specific cultural fact: the fiction of the self-regulating market. This institutional perspective needs to be reassessed beyond new-institutionalist theoretical constructions.     

Security and the Subsurface: Natural Gas and the Visualisation of Possibility Spaces

ABSTRACT

Beneath the surface of the United Kingdom lies a sprawling natural gas infrastructure. Based on recent (2014/15) ‘follow the thing’ fieldwork conducted in the UK onshore gas industry, this paper explores the ways that dangers related to the subterranean circulation of natural gas come to be visualised, and how these visualisations make possible different security interventions. These practices are shown to be limited by the ground, which despite its enrolment as a security device conceals from view the shifting landscapes of risk that surround these gaseous movements. Drawing on Manuel DeLanda's concept of the possibility space, I provide a conceptual framework for attending to security’s visualisation practices, describing how attempts are made to overcome the subsurface obfuscation of natural gas. I argue that, rather than being understood as a process of circulatory ‘filtration’ or ‘maintenance’, security must instead be regarded as a series of transformative practices of ecological (re)organisation that are predicated upon the visualisation of entities’ spaces of possibility. In the process, I provide an account of how the three-dimensional geographies and materialities of gas circulations and their milieus are intimately tied up in their governance and politics.     

Living in limbo: Economic and social costs for refugees

Our paper tests the hypothesis that living in limbo could have negative consequences for the socio-economic integration of refugees. We define limbo as a protracted period when asylum seekers are waiting for the decision concerning their permanent refugee status. Relying on the French survey of migrants, France's longitudinal survey of migrants (ELIPA), we measure integration by labour market participation, fluency in French, finding new French friends and studying. To account for the endogeneity of limbo, we instrument it with the administrative backlog. We find that living longer in limbo during the asylum-seeking period slows down future integration of refugees, but results differ with respect to gender and educational attainment. While having lived longer in limbo slows down most aspects of socio-economic integration for refugees with no degree or a high school degree, those with a bachelor's degree do not experience negative effects. Male refugees who had lived longer in limbo have a lower likelihood of being employed and studying in France, while similar females make fewer French friends.     

von Thünen: Capital,Production Functions,Marginal Productivity Wages,and the Natural Wage

This paper puts seminal contributions to theory of production functions and maximization of explicit quantitative objective functions by Johann Heinrich von Thünen into a systematic historical perspective. We show that his comprehensive ‘Tableau Economiques’ do imply two exact parametric production functions. Moreover, the renowned ‘geometric mean wage’ formula is restated as an exact CES marginal labor productivity wage for σ = 2. We review four alternative modes of normative (natural) wage calculations without an explicit production function, and conclude that von Thünen's natural wage differentiation formulas are bona fide alternatives for deriving the natural wage formula.     

The French Revolution and the Creation of Benthamism

Abstract

The article investigates Knut Wicksell's interpretation of aggregate economic fluctuations. It is shown that Wicksell described the business cycle as oscillations of an economy with increasing population and scarce natural resources around its steady growth path ('dynamic equilibrium'), provoked by sporadic technological progress. The ‘shocks’ bring about a wave‐like motion because of psychological and technical lags in the economic structure. Wicksell's suggestion that excess net savings in the depression take the form of stocks of commodities is compared to his contemporaries’ answers to the question ‘What happens to savings during the depression?’ The article also puts forward a relatively neglected connection between Malthus’ and Wicksell's notions of over‐production. Divergences between the natural and market rates of interest — essential to his better‐known ‘cumulative process’ ‐ are not a necessary part of Wicksell's business cycle, but they are important to explain why the upper turning‐point can have the nature of a crisis, which results from wrong expectations induced by cumulative price movements.     

中国基础设施资本存量估算

基础设施是国民经济赖以发展的基础。而深入考察基础设施对于中国经济增长的影响,依赖于一套完整的全国及省际基础设施资本存量数据。为此,本文在现有研究的基础之上,对基础设施投资范围进行了界定,并对官方统计数据进行了必要的补充和调整,进而通过永续盘存法分别估算了全国层面1953—2008年以及省际层面1993—2008年各年末的基础设施资本存量。     

Reply to Gehrke

This paper responds to Christian Gehrke's comment, and argues that the main conclusion of my earlier paper is sustained—that, contrary to Sraffa, Marx did not ‘adopt’ in any sense of the word the joint product method of treating fixed capital. It agrees with Gehrke that Torrens adopted a form of the joint product method, and that Malthus seems to have followed Torrens in this regard. However, it argues that Ricardo did not adopt the joint product method, not even in the one instance cited by Sraffa. Finally, it argues briefly that Marx's ‘transformation of value’ method of treating fixed capital and depreciation is superior to Sraffa's joint product method.     

Joan Robinson and the three cambridge revolutions

Joan Robinson's association with three Cambridge ‘revolutions’—imperfect competition, effective demand and capital theory—is examined in the context of her personal and intellectual partnership with Richard Kahn, John Maynard Keynes and Piero Sraffa. Initially, imperfect competition appeared to have successfully extended marginal analysis to all market forms. It also allowed Richard Kahn and Joan Robinson to persuade Keynes to present the main argument of The General Theory in terms of aggregate demand and aggregate supply. By the early 1950s, however, Joan Robinson had rejected the Marshallian methodology and had become a strenuous censor of neoclassical theory. In this paper the origin of her critique is traced to her reading of Sraffa's Introduction to Ricardo's Principles.     

Some Issues in the Sraffian View of Competition: Starting from Clifton

The article seeks to advance discussion about the nature of competition and of the ‘firm’ consistent with a classical-Sraffian perspective on relative prices and distribution. Discussion focuses primarily on the work of James Clifton published from the late 1970's. Clifton's insights have a direct bearing on issues at the heart of broader Sraffian research: how relative prices are anchored by the mobility of capital; whether the rate of profit should be interpreted as the exogenous distributive variable in the Sraffian price system; and, the forces which govern the ‘normal’ rate of profit, including the causal significance of the rate of growth. While Clifton's approach lends support to the interpretation of the rate of profit as a target rate of return, the article takes issue with Semmler's explanation as being endogenous to the price system. An alternative exogenous explanation of the target rate by reference to the rate of growth from Eichner is also considered, but rejected, despite the similarities between the insights of Clifton and Eichner into corporate pricing. Some useful implications from Clifton's analysis—as to the modeling of classical competition and gravitation—are also drawn out.     

Producing Sicily as Europe: Migration,Colonialism and the Making of the Mediterranean Border between Italy and Tunisia

This article studies the relationship between the production of the Mediterranean border between Italy and Tunisia, and Italy’s internal geographies of uneven development, commonly known as the 'Southern Question’. Through a study of contemporary Tunisian migration to Sicily in relation to turn of the 20th century Sicilian southward migration to French Protectorate Tunisia, it claims that Sicilians were made into Italians and Europeans through their relationship with Tunisians, and that Sicily was produced as Europe through the progressive demarcation and fortification of the Mediterranean border. Drawing on literature on colonial socio-spatial differentiation, internal colonialism and postcolonial analyses of migration to Europe, this article reframes current debates around the ‘integration’ of migrants as part of longer-term questions around the incorporation of ‘difference’ into the body-politic of the nation—questions that were historically posed in relation to colonial subjects and populations of metropolitan peripheries. Thus, the article considers current debates around the incorporation of migrants as part of a longer-term process of definition of the ‘civilizational’ boundaries of Europe.     

Endogenous money and shareholders' funds in the classical theory of banking

By its nature, bank money is endogenous, but its issuing is risky and presupposes the presence of banks' shareholders' funds. Shareholders' funds give banks the means of dealing with the difficulties involved in the process of money creation and which are inherent to the banking activity: convertibility constraint, credit and liquidity risks. Unlike the Richardian paradigm, Smith's ‘real bill theory’ and Thornton's ‘lender of last resort theory’ point out the functions of shareholder's funds. Therefore their monetary-banking approachs seem more complementary than contradictory. In other respects, the theory of endogenous money and credit introduces risks and capital in the analysis of exchange and lead to questioning the classical market theory constructed on the model of bartering     

Distance and beyond: What drives financial flows to emerging economies?

A major theme in the empirical literature is whether country-specific ‘pull’ or external ‘push’ factors drive international capital flows. In this paper we show that pull-push interactions matter: the response of international investors to country-specific developments depends on global volatility/liquidity stress conditions. We model asset-trade behaviour of investors: with limited information, strong institutional quality ‘pulls’ asset demand; mounting tensions in global markets amplify portfolio adjustments. We derive an empirically testable equation for cross-border bank flows to emerging economies (EMEs) and focus on pull-push interactions that trigger financial vulnerabilities. We find that global volatility amplifies demand for institutional quality, prior to the recent crisis, implying that EMEs with weak institutional settings are exposed to sharp capital retrenchments. In the aftermath of the crisis, the liquidity easing in advanced economies drives down concerns for EMEs' developments, boosting flows and challenging EMEs' ability to use capital controls to mitigate unbridled flows.     

Information technology and the spatial dynamics of capital

This paper considers the spatial attributes of computer network technology and their implications for modelling the regional dynamics of the information economy. Attention focuses initially on the assumptions made about the locational and usage characteristics of capital in some traditional regional economic models, and then it is shown that the new information technology, as a form of ‘information capital’, requires closer scrutiny of these approaches. We emphasize the ‘communicability’ of this type of capital, specifically the capital services embodied in information flows over corporate computer networks, and its potential effects on the regional geography of enterprise and of the economy more generally. This leads us to reflect on what new considerations should enter into regional policy-making for the information economy, including the central role of advanced telecommunications infrastructure.     

Growth,environment, and culture—encompassing competing ideologies in one ‘new growth’ model

The debate about growth and the environment is fragmented due to ideological differences. Mainstream neoclassical and environmental economists tend to ignore deeper worries about long-term growth and nature. I show how competing positions can be interpreted within a single unifying framework. The interpretative tool is cultural theory, whereas the framework is a Schumpeterian growth model including environmentally oriented research in addition to ‘ordinary’ research. The two diagonals of cultural theory belong to economists and skeptics, respectively. The differences along the diagonals are about facts; for instance, economists disagree about the extent to which environmentally oriented research can mitigate the effects of economic growth. These differences are reflected in choice of parameter values. The key difference between the diagonals is in the choice of objective function—should we be maximizing consumption or ‘nature’? The model will not resolve the debate, but it does add clarity, pinning down differences and indicating questions for research. A neoclassical model may encompass problems deeper than resource use and pollution, and values other than those of the consumer.     

Skilled Labour and International Specialisation in OECD Countries

Human capital and skilled labour are likely to become increasingly important determinants of industrial localisation. This paper calculates the factor content—the services of skilled labour, classified by level of education, embodied in trade in manufactures—for a sample of OECD countries in 1970–85. USA and Japan show a strong ‘revealed comparative advantage’ in human capital intensive production. In general, OECD countries where highly educated labour is abundant tend to specialise in and export skill intensive goods. Changes in the ranking with respect to specialisation in skill intensive goods, in particular the strong improvement of Japans' position, seem to be linked to different rates of accumulation of human capital.     

Sraffa,Okun, and the theory of the imperfectly competitive firm

Piero Sraffa's Production of Commodities by Means of Commodities is wedded to Arthur Okun's Prices and Quantities to bring out important implications for the theory of the imperfectly competitive firm. The implications relate to firm objectives and to firm behavior in both the ‘vertical’ environment (relations with suppliers) and the ‘horizontal’ environment (relations with customers and competitors).