Fiscal policy and Dutch disease

In this paper we revisit the Dutch disease paying particular attention to the role of specific factors of production and capital stock dynamics. The main insight is that if the natural resource rich windfall is substantial but not large enough for the country to become a rentier, capital goods must be produced at home and adjustment to natural resource windfall takes time. It takes time to build this home-grown capital. Specific factors are crucial to explain the dynamic responses of the real exchange rate, capital intensities and wages in response to a natural resource windfall. If a country is small and the windfall is large, it may be able to import capital and migrant labour in which case the Dutch disease can be avoided.     

Immigrant Struggles in New Orleans Post-Katrina

Race relations in New Orleans have often been narrowed to Black and white, especially pre-Katrina. According to the 2000 census, the city was about 67% African American, 27% white, 2% Asian, and 3% “Hispanic.” In a city with a deep history of racial tensions between Black and white, other people of color—and especially recent immigrants—often went unmentioned in discussions of city demographics. The city’s world famous culture—whether in the traditions of Mardi Gras Indians and secondline parades, or in music like jazz and bounce—is also famously rooted in specifically African cultures. Even in media coverage of the city post-Katrina, the story of immigrant experiences has remained mostly invisible. When these stories have been told, they have often fit into the old stereotypes of “model minorities” (as in the case of the Vietnamese recovery) or of low-wage workers stealing jobs (as in the case of news reports on the city’s new Latino population). However, the stories of these other New Orleanians offer an important lens through which to view the overall struggle over the city’s recovery. And the work of grassroots activists from these communities, who strived to not only work for justice for their friends and neighbors, but also to build broad multi-racial alliances, provides an inspiring example for people in other cities who are waging similar fights.     

Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects

Recent academic research suggests that the effects of inward foreign direct investment for productivity and employment may vary across foreign investors with different characteristics. Using a newly created dataset that integrates micro-level information from The Netherlands Foreign Investment Agency and Statistics Netherlands, this paper explores the role of several of these characteristics, including e.g. the country of origin, activities and tasks, age and strategic role of foreign affiliates in The Netherlands in the 2000–2007 period. Our analysis shows that important employment and productivity differences exist for nearly all these dimensions.