After Industrial Society: Service Society as Clean Society? Environmental Consequences of Increasing Service Interaction

Whereas industrial society is known to be to a great extent responsible for the degradation of the environment, service society is assumed to be rather ‘clean’. There has, in fact, been a substantial reduction in material metabolism in industrial production in the developed countries. The increasing interaction intensity, however; which is characteristic for a service society, results in massive transport volumes and thus in other negative environmental impacts which to a large degree offset the advances in industrial production.     

Private borrowing during the financial revolution: Hoare's Bank and its customers, 1702–241

The financial revolution improved the British government's ability to borrow, and thus its ability to wage war. North and Weingast argued that it also permitted private parties to borrow more cheaply and widely. We test these inferences with evidence from a London bank. We confirm that private bank credit was cheap in the early eighteenth century, but we argue that it was not available widely. Importantly, the government reduced the usury rate in 1714, sharply reducing the circle of private clients that could be served profitably.     

Taxing the Financially Integrated Multinational Firm

This paper develops a theoretical model of corporate taxation in the presence of financially integrated multinational firms. Under the assumption that multinational firms use some measure of internal loans to finance foreign investment, we find that the optimal corporate tax rate is positive from the perspective of a small, open economy. This finding contrasts the standard result that the optimal‐source‐based capital tax is zero. Intuitively, when multinational firms finance investment in one country with loans from affiliates in another country, the burden of the corporate taxes levied in the latter country partly falls on investment and thus workers in the former country. This tax exporting mechanism introduces a scope for corporate taxes, which is not present in standard models of international taxation. Accounting for the internal capital markets of multinational firms thus helps resolve the tension between standard theory predicting zero capital taxes and the casual observation that countries tend to employ corporate taxes at fairly high rates.     

Transnational Sourcing Practices in Ghana's Perennial Crop Sectors

Neo-liberal policies increasingly affect African agricultural production and the influence and power of transnational agro-food companies have deepened substantially since the turn of the century. As a consequence the conditions of transactions of many African export crops have been modified or changed completely. This paper examines the changes and emerging patterns of transnational buyers' sourcing practices within four of Ghana's perennial crop sectors: cocoa, pineapple, oil palm and shea nut. The findings suggest that transnational sourcing practices are primarily determined by the need for immediate processing of the crop after harvest and that control over this process is essential for value adding via product differentiation. Different transnational sourcing practices have distinctive spatial outcomes reflected by new patterns of rural transformation within privately regulated territories.     

Comment on ‘Seat of Death and Terror’1

Oxley finds that smallpox consistently reduced heights, but that the fall was not statistically significant outside London or for juvenile Londoners. We demonstrate that inappropriate subdivision of the data into small samples explains the lack of significance she obtains. Further analysis of Oxley’s data shows that smallpox was a statistically significant cause of stunting, and that there were no differences in the effect by area. Juveniles exhibit greater stunting than adults, leading us to conclude that smallpox was not a proxy for overcrowding. That smallpox reduced height is important for anthropometric history: heights capture the effect of a truly awful disease.     

Monetary Policy and Inequality

We analyze the distributional effects of monetary policy on income, wealth, and consumption. We use administrative household-level data covering the entire population in Denmark over the period 1987 to 2014 and exploit a long-standing currency peg as a source of exogenous variation in monetary policy. We find that gains from softer monetary policy in terms of income, wealth, and consumption are monotonically increasing in ex ante income. The distributional effects reflect systematic differences in exposure to the various channels of monetary policy, especially nonlabor channels (e.g., leverage and risky assets). Our estimates imply that softer monetary policy increases income inequality.