Some comments on the Sraffian Supermultiplier approach to growth and distribution

Abstract

The article discusses the Sraffian Supermultiplier (SSM) approach to growth and distribution. It makes 5 points. First, in the short run, the role of autonomous expenditure can be appreciated within a standard post Keynesian framework (Kaleckian, Kaldorian, Robinsonian, etc.). Second, and related to the first, the SSM model is a model of the long run and has to be evaluated as such. Third, in the long run, one way that capacity adjusts to demand is through an endogenous adjustment of the rate of utilization. Fourth, the SSM model is a peculiar way to reach what Garegnani called the “second Keynesian position.” Although, it respects the letter of the “Keynesian hypothesis,” it makes investment quasi-endogenous and subjects it to the growth of autonomous expenditure. Fifth, in the long run it is unlikely that “autonomous expenditure” is really autonomous. From a stock-flow consistent point of view this implies unrealistic adjustments after periods of changes in stock-flow ratios. Moreover, if we were to take this kind of adjustment at face value, there would be no space for Minskyan financial cycles. This also creates serious problems for the empirical validation of the model.     

Policies to increase business tourism income: A dynamic panel data model

This article aims to identify the determinants that influence business tourism income and that may be controlled by economic agents and policy makers of destination countries. For the development of the empirical study, a dynamic panel model by the Generalized Method of Moments (GMM) was estimated using the Gretl 2016a software, and a sample of 122 countries for the period 2002–2013 (12 years) was used. The study reveals that, for the development of policies to stimulate the growth in the short and long-term of business tourism income, countries should develop measures that encourage capital investment in tourism and foreign direct investment.     

Opportunities and pitfalls for researchers to contribute to the design of evidence-based agricultural policies: lessons from Uganda

Agricultural policies in sub-Saharan Africa have paid insufficient attention to sustainable intensification. In Uganda, agricultural productivity has stagnated with aggregate increases in crop production being attributed to expansion of cultivated land area. To enhance sustainable crop intensification, the Ugandan Government collaborated with stakeholders to develop agricultural policies using an evidence-based approach. Previously, evidence-based decision-making tended to focus on the evidence base rather than evidence and its interactions within the broader policy context. We identify opportunities and pitfalls to strengthen science engagement in agricultural policy design by analysing the types of evidence required, and how it was shared and used during policy development. Qualitative tools captured stakeholders' perspectives of agricultural policies and their status in the policy cycle. Subsequent multi-level studies identified crop growth constraints and quantified yield gaps which were used to compute the economic analyses of policy options that subsequently contributed to sub-national program planning. The study identified a need to generate relevant evidence within a short time 'window' to influence policy design, power influence by different stakeholders and quality of stakeholder interaction. Opportunities for evidence integration surfaced at random phases of policy development due to researchers’ ’embededness’ within co-management and coordination structures.     

Economic Competition,Policy Interdependence,and Labour Rights

Extant scholarship treats national policies concerning labour rights as a function of economic factors and yet neglects influences of policies among economically competing states. Relying on the policy interdependence theory, this study argues that labour rights policy in a state is dependent on its economic competitors’ labour policy decisions. It specifically maintains that the intensifying competition for foreign direct investment and exports as well as against imports channels negative externalities of deteriorating labour protection in competing states which drives expansive downward policy mimicking and leads to a global decline in labour rights – a race to the bottom. Utilising spatial econometric technique to analyse a new data on labour rights for the period 1994–2009, it finds that labour rights practices are interdependent among economic competitors and experience global deteriorations; whereas labour rights laws remain largely independent due to high policy and reputational costs of lowering them and show more fluctuations.     

Environmental Policy,Sustainable Development,Governance Mechanisms and Environmental Performance

We investigate the effects of environmental policy (Climate Change Act – CCA), sustainable development frameworks (Global Reporting Initiative – GRI; UN Global Compact – UNGC) and corporate governance (CG) mechanisms on environmental performance (carbon reduction initiatives – CRIs; actual carbon performance – GHG emissions) of UK listed firms. We use the generalized method of moments (GMM) estimation technique to analyse data consisting of 2245 UK firm‐year observations over the 2002–2014 period. First, we find that the CCA has a positive effect on CRIs, and this effect is stronger in better‐governed firms. Second, we find that the GRI‐based framework is positively associated with CRIs. Third, we find that firms with poor CG structures have lower actual carbon performance compared with their better‐governed counterparts. Overall, our evidence suggests that firms can symbolically conform to environmental policy (CCA) and sustainable development frameworks (GRI, UNGC) by engaging in CRIs without necessarily improving actual environmental performance (GHG emissions) substantively. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Local fiscal multipliers and spillover effects: Evidence from Philippine regions

Fiscal policy in developed countries has been a rich topic since the Great Recession. However, research has remained limited for developing countries despite their similar use of fiscal policy and concerns about the efficiency of public spending. To help address this research gap, this paper provides a case study of multiplier effects of local government spending in regions in the Philippines as well as spillover effects of local government spending across regions. An instrumental variable based on the country’s intergovernmental transfer system is used to identify regional public spending in panel regressions. The local fiscal multiplier is estimated to be above one, where a 1-peso rise in spending by local government units in a region corresponds to a 1.2-peso rise in regional output. Multiplier effects are highest for capital expenditures and appear to be primarily driven by the services sector. Spillover effects are comparatively large, at around 1.8–2.0, highlighting the important role of domestic trade when stimulating regional economic activity.     

Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development

We investigate determinants of consumer demand for circular (reused and remanufactured) products. Based on exploratory choice-based conjoint experiments with a sample of 800 adults in the United Kingdom, we examine two types of premium segment electronic appliances: a mobile phone and a robot vacuum cleaner. We find that consumers prefer partly circulated products over fully or not at all circulated products and that circular products can likely successfully enter the existing market at the retail price of a new product. Interestingly, circular products compete for market share primarily with new products, leaving the market share of second-hand options less affected. The results show a promising path for firms considering a transition to circular business models.     

Electricity awareness and consumer demand for information

With the envisioned growth in the residential electricity demand and increased share of intermittent renewables in the supply mix, consumers will need to be better informed about their electricity consumption and to play an active role in managing their electricity use. However, consumer inattention and lack of information are ubiquitous, especially in household energy‐related settings. Thus, using a novel survey and actual monthly electricity consumption data, this study set out to measure the level of awareness about electricity bills, prices and costs among some Finnish households—as captured by the answers to six questions—and to investigate whether higher levels of “electricity awareness” are associated with electricity savings. In addition, this study analyses the willingness to receive extra information about energy consumption and savings and how it differs between “electricity aware” and “electricity unaware” respondents. The results indicate low levels of “electricity awareness” among the respondents of the survey. Compared to the respondents with little knowledge about electricity bills, prices and costs, the respondents with higher levels of “electricity awareness” tend to consume less electricity. Higher levels of awareness about electricity use and consumption might “materialize” inconspicuous consumption patterns, as opposed to more general facts about the largely invisible environmental consequences of everyday practices. More than two‐thirds of the total number of respondents would like to receive additional information about energy consumption and how to save energy. However, there exists a significant portion of “electricity unaware” respondents who are not only unwilling to receive such information, but are also unaware of their own knowledge deficits. To maximize the impact of any information strategy, decision makers should attempt to engage with this type of consumer; by becoming more aware of their knowledge deficits, people might become more receptive to information that can benefit them.     

集中连片特困地区扶贫产业发展的规模特征及其经济效率评价——以武陵山片区恩施自治州为例

[目的]在扶贫开发战略中成长起来的特色产业已经成为贫困地区经济发展和农民脱贫致富的支柱产业,特色产业的规模和经济效率直接决定着贫困地区脱贫致富能力。[方法]文章以茶叶、蔬菜代表武陵山片区湖北省恩施自治州扶贫产业,利用集中度指数、扩张弹性系数、单位面积的产值能力和产量能力以及单位产量的产值能力等指标进行扶贫产业发展的规模特征及其经济效率评价。[结果]“十一五”期间以来武陵山片区扶贫产业发展的产业地位逐渐提高、规模扩张优势显著、规模收益递增、投入规模扩张率高于产出规模扩张率、资源配置效率不断提高,比较经济效率差距持续扩大。[结论]扶贫产业亟待根据产业发展的生态化、集聚化和融合化等趋势,在规模扩张中强化特色产品的品质建设和效率优势品种生产专业化程度、提高生产技术水平以及完善产业化组织及其能力建设,提高扶贫产业的经济效率和致富能力。     

Extending the determinants of currency substitution in Nigeria: Any role for financial innovation?

Existing literature suggests that macroeconomic and institutional factors are the drivers of currency substitution. The persistent and significant incidence of currency substitution during the period of mixed performance of macroeconomic variables suggests the existence of a knowledge gap on the drivers of currency substitution during the era of rapid technological innovation. To contribute to this literature, we augmented the traditional money demand model of the determinants of currency substitution to introduce financial innovation. We use Nigerian data from 2005Q1 to 2019Q4 and Pesaran et al. (2001, https://doi.org/10.1002/jae.616 ) autoregressive distributed lag (ARDL) bound test approach to cointegration to estimate the models. The results confirm the presence of short-run and long-run relationships between financial technology and currency substitution in Nigeria. In effect, the deployment of financial technology in developing payment system infrastructure creates additional incentives for economic agents to hold foreign currency deposit. Economic managers must, therefore, mainstream credible monetary and fiscal policies to moderate the effect of financial innovation on currency substitution.