Unequal opportunities and human capital formation

This paper develops a tractable, heterogeneous agents general equilibrium model where individuals have different endowments of the factors that complement the schooling process. The paper explores the relationship between inequality of opportunities, inequality of outcomes, and aggregate efficiency in human capital formation. Using numerical solutions we study how the endogenous variables of the model respond to two different interventions in the distribution of opportunities: a mean-preserving spread and a change in the support. The results suggest that a higher degree of inequality of opportunities is associated with lower average level of human capital, a lower fraction of individuals investing in human capital, higher inequality in the distribution of human capital, and higher wage inequality. In particular, the model does not predict a trade-off between aggregate efficiency in human capital formation (as measured by the average level of human capital in the economy) and equality of opportunity.     

Jacques Le Bourva's theory of endogenous credit-money ∗

About 30 years ago, Jacques Le Bourva published two little-known articles that clearly set out the present post-Keynesian theory of endogenous money developed by Kaldor and Moore. The main features of these two articles are presented, in particular Le Bourva's belief that reverse causation, rather than the instability of the velocity function, is the key objection to the quantity theory of money and the mainstream theory of inflation. Other features include a graphical and an algebraic pedagogical representation of the theory of endogenous money, the use of the Banking school's efflux/reflux mechanism, the dismissal of the money multiplier, and the impossibility of an excess supply of money. Le Bourva's theory of inflation also resembles that adopted by many post-Keynesians, in which price increases due to excessive wage demands and attempts by firms to raise their profit margins to finance investment.     

From risk analysis in Europe to European risk analysis: the first ten years of SRA-E (1987-97)

Risk analysis has both a long past and a short history. This latter is written in the past 30 years. Technology's potential to create sometimes irreversible damage, as well as unprecedented improvement in standard of living, prompted the need for risk analysis. The Society for Risk Analysis (SRA) was created in the United States at the end of the 1970s. Its purpose was and is to bring together scientists and professionals concerned by issues of risk to health, safety and the environment, on an international and interdisciplinary basis. This article traces European participation in the SRA and recounts the founding of the chapter Society for Risk Analysis- Europe (SRA-E) in 1987. The composition of founding, Advisory and Executive Committees is given, as are themes and Directors of the seven Conferences held by SRA-E to date. SRA in 1987 counted 69 Europe-based members in 13 countries; in 1997, 25 countries are represented in SRA-Europe by 317 members. A trend is seen from a mainly geographic extension of SRA towards a more specific identity springing from risk research and management as practised today in Europe. The multicultural and multilingual experience of members, and their capacity for collaboration across national and disciplinary lines, are among European risk analysis' strongest assets. The present Journal of Risk Research can provide a forum for reinforcing new currents in risk analysis. The creation of a European university cursus in risk studies is recommended, as is a stronger role for SRA-E as a body of expertise. A call is made for risk analysis sustainable in national and cultural contexts removed from those that have developed today's art and practice: needed are appropriate conceptualizations of risk, management methods, and indicators of success. The Mediterranean basin and North Africa are targeted as areas for development and new learning for risk analysts, communicators, managers and researchers in the 21st century.