Inequality,mobility and the financial accumulation process: a computational economic analysis

Our computational economic analysis investigates the relationship between inequality, mobility and the financial accumulation process. Extending the baseline model by Levy et al., we characterise the economic process through stylised return structures generating alternative evolutions of income and wealth through time. First, we explore the limited heuristic contribution of one and two-factors models comprising one single stock (capital wealth) and one single flow factor (labour) as pure drivers of income and wealth generation and allocation over time. Second, we introduce heuristic modes of taxation in line with the baseline approach. Our computational economic analysis corroborates that the financial accumulation process featuring compound returns plays a significant role as source of inequality, while institutional arrangements including taxation play a significant role in framing and shaping the aggregate economic process that evolves over socioeconomic space and time.

     

Exploring the adjustment of American expatriate spouses in Germany

This paper re-conceptualizes the adjustment of expatriate spouses during overseas assignments and explores various factors influencing the level of spousal adjustment. It does so by using a combination of qualitative data, collected through interviews and group discussions with expatriate spouses, and quantitative data, gathered by means of a questionnaire survey of American expatriate spouses in Germany. The results support the existence of a hitherto neglected facet of spousal adjustment, designated 'role adjustment', and highlight some important antecedents of spousal adjustment. The implications of the results for research and the practice of international HRM are discussed.     

On the distributional properties of size, profit and growth of Icelandic firms

In this paper, we analyze the distributional properties of the balance sheets of Icelandic firms by performing an empirical analysis of total assets, profit rates and growth rates using a data set of 2,818 Icelandic firms during the period 2000–2009. We find that the firms size measure, i.e. total assets, have the same heavy tail characteristics as various studies have shown, e.g. for US and Italian firms. The heavy tail nature of the total assets distribution seems to be robust w.r.t. a boom-bust cycle of the economy as well as special characteristics of Icelandic firms, e.g. their relatively small size and private ownership. Another important finding is that the profit rates, or return on assets, of Icelandic firms follow a Laplace like distribution similar to US firms. Additionally, we identified deviations from the distributional regularities, namely the power law behavior of firms’ size and Laplacian distributions of growth and profit rates, during the booming period of the economy 2005–2007.     

‘We Are Here Alone’: The Ironic Potentials and Vulnerabilities of Mixed (Up) Districts in Central Jakarta

The durability of central city districts in large metropolitan systems of the majority world has largely been attained through intricate intersections of physical, infrastructural, human and discursive materials, as these intersections are continuously remade through shifting constellations of the incremental initiatives of residents. Residents have learned to use the city as a place to continuously explore new relationships among things and extract a wide range of unanticipated capacities from them. This is a collective resourcefulness from which there might be much to draw in terms of using the carbon‐driven exigencies of infrastructural transformation as the occasion to reanimate more egalitarian political projects. Although many collective efforts are increasingly being disassembled, the reflections of a single resident of one of Jakarta's most heterogeneous residential districts points to how the revitalization of such efforts might be conceived. The efficacy of political efforts to address intensified vulnerability partly entails replenishing intense mixtures of built and physical environments as provocations and platforms for complex social maneuvers.     

Motivation crowding‐out and green‐paradox‐like outcomes

We analyze the effectiveness of environmental policy in a framework in which households’ utility is determined by both private and social components, representing their extrinsic and intrinsic motivations to undertake green actions, respectively. Environmental policy, in the form of a subsidy aiming to incentivize the adoption of a green technology, on the one hand, directly increases households’ extrinsic motivation, while, on the other hand, indirectly decreases their intrinsic motivation. We show that, provided that the indirect effect dominates, the policy leads to crowding‐out of intrinsic motivation which ultimately undermines the effectiveness of the policy itself. Specifically, despite its positive effect on environmental outcomes in the short run, the policy will lead to a deterioration in long‐run environmental outcomes, giving rise to a reverse green‐paradox‐like outcome. Moreover, even in the case in which the direct effect dominates, provided that the indirect effect is large enough, the policy will generate a deterioration in short‐run environmental outcomes. These results clearly suggest that the optimal design of environmental policy is particularly complicated since it requires to take into account also its effects on intrinsic motivation.     

Endogenous technological progress in a multi-sector growth model

This paper presents an endogenous growth model driven by human capital, where human capital can be allocated across three sectors: the production of the final consumption good, the educational sector and the production of technological capital (in the form of knowledge or ideas). In our model, which also includes public expenditure and population growth, labor augmenting technical progress is endogenous and this enriches the transitional dynamics of the economy. With respect to ideas-based growth models, we assume knowledge is produced according to a neoclassical technology, combining ideas and human capital. Such an assumption is motivated by empirical works showing the existence of significant decreasing returns in the creation of ideas at the aggregate level (as Kortum, 1993; and Pessoa, 2005) and of the weak relationship between some inputs of the knowledge production process (as the number of researchers) and the total factor productivity growth rate (as Jones, 2002). Under some general conditions, this economy exhibits the existence of a steady state equilibrium and an unstable multidimensional manifold. Numerical examples are provided to show the existence of stable arms.     

Consumption multipliers of different types of public spending: a structural vector error correction analysis for the UK

The aim of this paper is to investigate the relationship between government spending and private consumption in the UK, for which there is scarce previous empirical evidence. We disaggregate public expenditure into three categories and search for the corresponding private consumption multipliers. Our analysis is based on the estimation of a structural vector error correction model with quarterly non-interpolated data for the period 1981:1–2007:4. Initially, we estimate negative but barely significant effects on consumption of shocks to total public spending. Then, using the public spending breaking down, we find that while shocks to public wages crowd-out private consumption as predicted by neoclassical models, shocks to the non-systematic component of social spending and government purchases of goods and services generate a positive reaction, so to crowd-in private consumption. Thus, the qualitative and quantitative dimensions of fiscal multipliers on private consumption change across different public spending categories. Our findings suggest that any empirical support of competing theoretical models on the issue would benefit from a disaggregation of government expenditure, rather than focusing on the aggregate measure.     

(Non)Urban Humans: Questions for a Research Agenda (the Work the Urban Could Do)

This interventions essay deploys the notion of the (non)urban human to address the conundrums associated with identifying spaces, operations and entities outside of urbanization's planetary encompassment. In the piece, the objective of which is to call for a programme of prospective research collaborations, it seeks to explore domains of intersection among that which appears ‘left out’ of urbanization's purported advantages, that whose time has yet to come, and forms of the human that exceed the possibilities of self-reflexive consciousness and free will. The essay draws upon the temporalities, rhythms, spatial arrangements and sensoria generated through histories of blackness and ‘natural worlds’ and their interactions, to posit extensionality—a dispersal of bodies and their capacities into more reciprocal and mutual enactments with the earthly surrounds—as a generative by-product of extended urbanization.     

Population dynamics and utilitarian criteria in the Lucas–Uzawa Model

This paper introduces population growth in the Uzawa–Lucas model, analyzing the implications of the choice of the welfare criterion on the model's outcome. Traditional growth theory assumes population growth to be exponential, but this is not a realistic assumption (see Brida and Accinelli, 2007). We model exogenous population change by a generic function of population size. We show that a unique non-trivial equilibrium exists and the economy converges towards it along a saddle path, independently of population dynamics. What is affected by the type of population dynamics is the dimension of the stable manifold, which can be one or two, and when the equilibrium is reached, which can happen in finite time or asymptotically. Moreover, we show that the choice of the utilitarian criterion will be irrelevant on the equilibrium of the model, if the steady state growth rate of population is null, as in the case of logistic population growth. Then, we show that a closed-form solution for the transitional dynamics of the economy (both in the case population dynamics is deterministic and stochastic) can be found for a certain parameter restriction.