James Steuart and the making of Karl Marx’s monetary thought

Abstract

This paper analyses the influence of James Steuart on Karl Marx’s monetary thought. It deals more specifically with Marx’s rejection of an automatic mechanism that links variations in the quantity of money to their direct impact on prices. Steuart’s pioneering discoveries in economics inaugurate an anti-quantity theory tradition that Marx supported and which fed his own conception of money and credit. Here, we deal with the criticism of the assumptions of the quantity theory of money (QTM), the specifically social character of labour which creates exchange value, the distinction between the functions of money, the difference between income spending and capital advances, and the difference between simple circulation and reflux of money credit.     

Are firms that receive R&D subsidies more innovative?

Abstract .  This paper looks at the effectiveness of R&D grants for Canadian plants that already benefit from R&D tax credits. Using a non-parametric matching estimator and data from the 2005 Survey of Innovation from Statistics Canada, we find that firms that benefited from both policy measures introduced more new products than their counterparts that only benefited from R&D tax incentives. They also made more world-first product innovations and were more successful in commercializing their innovations. The paper gives also a detailed step-by-step explanation of how to apply the non-parametric matching technique.     

Optimal redistribution with unobservable disability: Welfarist versus non-welfarist social objectives

This paper examines the optimal non-linear income and commodity tax when the same labor disutility can receive two alternative interpretations, taste for leisure or disability, but the disability is not readily observable. We compare the optimal policy under alternative social objectives, welfarist and non-welfarist, and conclude that the non-welfarist objective, in which the planner gives a higher weight to the disutility of labor of the disabled individuals, is the only reasonable specification. It has some foundation in the theory of responsibility; further, unlike the other specifications it yields an optimal solution that may involve a lower labor supply requirement from disabled individuals.     

The effectiveness of Public Employment Service workers in the Netherlands

In this paper, we measure the effectiveness of the Dutch Public Employment Service (PES) workers for various performance indicators. Using unique administrative monthly data from local PES offices during 2004, we exploit the fact that the number of PES workers per job seeker varies substantially between offices and over time. We find additional PES workers to significantly increase outflow rates for short term unemployed (i.e. the first half year of unemployment), whereas no effects are obtained for the outflow rates of long term unemployed. PES workers are also found to reduce the inflow into the schemes and to increase the number of vacancies that are registered by offices. Although the effectiveness of PES workers is limited, we conclude that changes in the number of PES workers per client are cost-effective—that is, the extra costs are compensated for by the resulting reduction in benefit expenses.     

GIS-Based Hedonic Pricing of Landscape

Hedonic prices of landscape are estimated in the urban fringe of Dijon (France). Viewshed and its content as perceived at ground level are analyzed from satellite images supplemented by a digital elevation model. Landscape attributes are then fed into econometric models (based on 2,667 house sales) that allows for endogeneity, multicollinearity, and spatial correlations. Results show that when in the line of sight, trees and farmland in the immediate vicinity of houses command positive prices and roads negative prices; if out of sight, their prices are markedly lower or insignificant: the view itself matters. The layout of features in fragmented landscapes commands positive hedonic prices. Landscapes and features in sight but more than 100–300~m away all have insignificant prices.     

e-Relationships for e-Readiness: Culture and corruption in international e-B2B

The role of electronic networks in B2B relationships has been growing exponentially. From massive internet B2B exchanges to tiny RFID chips, B2B is increasingly becoming e-B2B. Whilst e-B2B has been explored intra-nationally, its international counterpart is less well documented; as has been the role that culture might play in the development of international e-B2B relationships. In this paper we address this important issue of international e-business relationships. Specifically we explore the interconnection between national e-readiness and cultural values, and address the research question: How do cultural values impact a nation's readiness to engage in e-business? Drawing upon international surveys we link cultural values with national e-business infrastructure. Our findings suggest an intriguing link between cultural values and a nation's readiness for e-B2B. From these results we develop managerial recommendations and extrapolate research opportunities.     

What Can We Learn from Droppers and Non-adopters About the Role of Advice in Agricultural Innovation?

In this article we assess the diversity of sources of advice identified by 678 adopters, 295 non-adopters and 107 droppers (or dis-adopters, who have ceased or reduced the use) of agricultural innovations across 13 European countries. For most innovations, the volume and composition of advisory supports (e.g. public advisory services, farm business organisations, NGOs, research and development sector, other farmers), at the whole farm level were similar between adopters, non-adopters and droppers. However, there were significant differences in relation to specific innovations. Farmers adopting digital technologies, soil-improving cropping systems, and common management of natural resources identified more diverse sources when assessing innovations, suggesting that more diverse advisory support supported successful implementation. For new on-farm activities, non-adopters had more varied sources of advice than adopters. This demonstrates that non-adoption can be a well-informed decision. Droppers typically identified fewer sources of advice on an innovation than adopters, particularly in the later stages of the innovation process, suggesting that lack of advice impeded successful implementation. The findings suggest that public funding for advisory services could usefully target emergent gaps: to support the provision of up-to-date advice on topics to farmers who have difficulty accessing advice, and to prevent unnecessary dropping by supporting the implementation of innovations.     

Microstructure and asset pricing: An insight on African frontier stock markets

This article investigates the impact of microstructure factors on asset pricing in some African stock markets. We use data on stocks listed on the Johannesburg Stock Exchange, the “Bourse Régionale des Valeurs Mobilières,” and the Nigeria Stock Exchange, and we consider international portfolio management from 2000 to 2014. Generalized least square and fixed effect are estimation methods used to highlight the effect of microstructure variables on expected return. At the same time, panel smooth transition regression (PSTR) modeling is considered to identify the thresholds in this effect. The results show that liquidity and to a lesser extent the number of trading days are the most common significant microstructure variables for all the studied markets. However, other variables’ effects on the return are specific to the considered stock markets. Furthermore, the PSTR estimator reveals that the impact of indicated factors on asset pricing is not linear because it produces a double threshold between return and microstructure.     

Should ‘Impartial’ Advice be a Priority of European Agricultural and Rural Policies?

Recent EU legislation will require Member States to ensure that farm advice which is supported by EU funding is impartial. In this article we present the findings of an online workshop which asked whether this should be a priority for European advisory supports within the Common Agricultural Policy. The answer was ‘no’. At the workshop, results of AgriLink were presented for discussion with international experts. These results highlighted major pitfalls for setting the boundaries of independent advice. Participants from Europe and North America agreed that ‘impartial’ advisors providing or selling only advice are rare in many contexts. Key organisations offering farm advice in many European countries, such as farmers’ cooperatives, often have established relationships with commercial suppliers. Being apparently independent from industry is also not sufficient for ensuring that advice addresses societal issues. Farmers’ choice for advice is more likely to reflect established trusted relationships than the ‘impartiality’ of the advisor. Workshop participants instead argued that policies should focus on increasing transparency (revealing vested interests); investing in ‘back office’ activities to ensure that advisors have access to reliable and relevant evidence; and ensuring that the full range of EU farmers have access to professional advice.     

Age-related taxation of bequests in the presence of a dependency risk

This paper studies the properties of the optimal taxes on bequests when individuals differ in wage and in their risks of mortality and old-age dependance. Survival is positively correlated to income but dependency is negatively correlated with it. The government cannot distinguish between bequests motives, that is whether bequests resulted from precautionary reasons or from pure joy of giving reasons. Instead, it observes the timing of bequests and the health status at death. Under the utilitarian social welfare criterion, we show that bequests taxation results from a combination of equity, insurance, and public revenue motives. If redistribution concerns dominate insurance concerns, it is desirable to tax the most bequests of those individuals living long in good health and to tax the least bequests of those dying early. This is a direct consequence of the socio-demographic structure we assumed where richer agents live longer and in better health than poorer agents. To the opposite, if insurance concerns dominate redistributive concerns, early bequests should be the most taxed and, bequests under dependency the least taxed. Under the Rawlsian criterion, we find that early bequests should be the least taxed and bequests left by the healthy long-lived individuals should be the most taxed.