Happiness over the financial crisis

This paper adds to the literature on the macroeconomic driving forces of happiness. Using data for 106 countries over the financial crisis (2006–2013), we estimate a dynamic panel data model. We find that there is a strong relation between income and happiness. Further, individuals have a stronger aversion against unemployment than against inflation. We perform various robustness checks including cultural differences and additional driving forces such as gender inequality and macroeconomic policies. Finally, we identify happiness shocks using the performance of ones’ country at the FIFA World Cups. We show that movements in happiness can generate business cycles. Interestingly, happiness shocks increase income on impact but decrease it after 1 year.     

玉米补贴政策调整对宏观经济的影响*——基于CGE模型的分析

[目的]寻求玉米补贴政策改变对宏观经济和粮食安全的影响,并厘清影响的幅度,寻求玉米政策调整的合理方向。[方法]对现有的中国可计算一般均衡模型进行了改进,引入库存积累、临时存储库存入市、库存销售和顺价机制,加入玉米实物量模块。通过设定政策模拟情景,运用2012年中国投入产出表、农业农村部、中国统计年鉴等资料将数据库进行了更新,对农业部门的玉米补贴减少政策的影响进行了模拟。[结果]降低玉米种植补贴后,玉米种植面积和产量都将改变。短期内,补贴减少将减少财政压力。中长期来看,减少补贴政策将对GDP产生负面影响,且远大于财政补贴减少的幅度。而玉米占经济量的份额很小,玉米相关行业的变化,对宏观经济的影响较弱。[结论]实现去库存、调结构、降低种植面积,进行市场化决策,就要坚持玉米价格市场化改革,注重政策的时效性和针对性,加强信息监测预警。提高政府对玉米市场的宏观调控能力,实施多策并举的政策,有助于实现宏观经济改善,保持农业生产持续健康良好运行。     

Business cycle in an oligopolistic economy with entry and exit

In this paper we introduce a microfounded macromodel with endogenous market structure, where macroeconomic fluctuations may be determined by firms’ strategic interactions, entry and exit. All the agents have the same preferences but may differ in their budget constraints and change their social status according to idiosyncratic stochastic shocks that trigger entry, while exit is caused by firms’ bankruptcies. Our numerical simulations show that birth and death of firms (associated with entry and exit) can generate macroeconomic fluctuations without technology shocks.     

关于宏观经济学微观基础的若干问题

传统宏观经济理论缺乏微观基础,而新古典(New Classical)革命和新凯恩斯(New Keynesian)革命都试图把宏观经济分析建立在稳固的微观基础上,认为宏观经济学应是经济主体在约束条件限制下,根据对宏观经济形势的预期进行最优化行为这一基础上去确定宏观经济总量,但是宏观经济学的微观基础研究的局限性也随之突显出来。因此,从物理经济学的角度,分别讨论宏观经济学的微观基础,旨在探讨研究中所涉及的"代表性个体"、"预期机制"、"计量验证"等分析模式中可能存在的问题。     

Thorstein Veblen’s Financial Macroeconomics

The purpose of this article is to provide an exposition of Thorstein Veblen’s contribution to financial macroeconomics. I argue that Veblen conceptualizes and contextualizes how the financial structure of effective demand is predisposed to endogenous non-sustainable leverage processes, manipulation, and speculation. I stress that Veblen advances a cultural-financial theory of investment and brings forward the role that pecuniary and emulation instincts play in institutionalizing predatory and fraudulent activities which destabilize the macroevolution of monetary production economies. I underline that Veblen patterns financial macroeconomic fragility and instability within the institutions of the business enterprise system.     

Backhouse and Boianovsky on “disequilibrium theory”. A review article of transforming modern macroeconomics. Exploring disequilibrium microfoundations, 1956–2003

Abstract

This article is an in-depth analysis of Backhouse and Boianovsky's book, Transforming Modern Macroeconomics: Exploring Disequilibrium Microfoundations, 1956–2003. I start with questioning Backhouse and Boianovsky's too broad understanding of the disequilibrium approach. Thereby they bring together theories that should be kept separate, those by Patinkin, Clower and Leijonhuvud on the one hand, and those by Barro and Grossman, Drèze and Benassy, on the other. I also substantiate my disagreement with their claim that an inner link exists between fixed price equilibrium theories and imperfect competition modelling. Finally, I put forward a few conjectures about the reason why fixed price modelling petered out.     

Friedman and Keynes: divergences and convergences *

Milton Friedman claims to have succeeded the Keynesian revolution with a counter-revolution which, incorporating certain features of Keynes's thought, triumphed at the end of the 1960s. This paper presents a general assessment of the relationship between these thinkers, in the domain of politics, methodology and economics, the emphasis being put on Friedman's reading of Keynes. In many places, Friedman stresses the convergences between his vision and Keynes's, as against the latter's Walrasian disciples. However, despite certain points of agreement at the methodological level, the two authors are radically opposed in terms of political vision and economic analysis.     

The Financial Crisis and the Death (or Hegemony) of Development Economics

Development economics was the study of how to create the plumbing that would allow developing economies to become developed. The financial crisis leads us to question whether industrialized countries have the plumbing problem solved and thus leads us to question whether we need a development economics that is separate from macroeconomics. Indeed, it even leads us to question whether development economics should take as its goal the creation of the institutional plumbing that industrialized countries currently have. The consequence will be a blending of concerns that have been central in developing economies with the standard macro models. The blending can be seen as either the death of development economics or the hegemony of development economics.     

What Should be Taught in Intermediate Macroeconomics?

A lack of consensus remains on what should form the theoretical core of the undergraduate intermediate macroeconomic course. In determining how to deal with the Keynesian/classical divide, instructors must decide whether to follow the modern approach of building macroeconomic relationships from micro foundations, or to use the traditional approach based on aggregate models of the macroeconomy. In this article, the authors discuss the advantages and shortcomings of each approach in the context of course objectives. Because there is significant heterogeneity in textbook coverage, the authors summarize some of the approaches taken in current intermediate-level textbooks, which should serve as a useful starting point for new instructors. The authors also discuss how each approach can be extended to analyze the recent recession in the United States.     

Professional Developments and Opportunities

A wide range of opportunities for professional development are available to economic educators. The list includes articles from other sources that are of direct interest, research grants, workshops, and programs developed by the Joint Council on Economic Education.