The real exchange rate,regime changes and volatility shifts

We make use of a data-set with both long span and high frequency to test for purchasing power parity (PPP) while allowing for a structural shift in the volatility of the Mexico–US bilateral real exchange rate (RER). The Kim, Leybourne and Newbold (2002) unit root test, robust to changes in the innovation variance, indicates mean stationarity of the monthly RER, and hence evidence of PPP, for the full sample, 1930–2012, and various subsamples. The persistence of deviations of the real rate from its PPP level as measured by half-lives ranges from 1.37 to 2.41 years.     

The dynamics of transitions in socio-technical systems: A multi-level analysis of the transition pathway from horse-drawn carriages to automobiles (1860–1930)

This article investigates transitions at the level of societal functions (e.g. transport, communication, housing). Societal functions are fulfilled by socio-technical systems, which consist of a cluster of aligned elements, e.g. artefacts, knowledge, user practices and markets, regulation, cultural meaning, infrastructure, maintenance networks and supply networks. To understand how transitions from one socio-technical system to another come about, the article describes a conceptual multi-level perspective. The perspective is illustrated with a historical case study: the transition from horse-drawn carriages to automobiles in the USA (1860–1930). The case study shows that technological substitution approaches to this transition are too simple, because they neglect the electric tram and bicycle, which acted as important stepping stones. The case study also corrects another mistake, namely that the gasoline car won by chance from steam and electric automobiles. It will be shown that particular niches played a crucial role in this competition, as well as the wider socio-technical context. The case study deviates on three points from the multi-level perspective. These deviations are used to conceptualize a particular transition pathway, called ‘de-alignment and re-alignment’.     

Veblen's critique of Marx's philosophical preconceptions of political economy

This paper explores some of the theoretical linkages between Thorstein Veblen and Karl Marx. Special reference is placed Veblen's criticisms of Marx and the Marxist tradition for adhering to the preconceptions of (a) the natural right of labour to the full product, and (b) the teleology of conscious agents directing action towards change. Veblen was incorrect to believe that Marx adhered to the natural right of labour thesis, but he was correct to assert that Marx utilized undesirable teleologies. Overall, however, Veblen was attempting to reformulate and modernise the materialistic conception of history through an evolutionary analysis of institutions. The two thinkers complement each other in important ways, although Veblen's analysis is more evolutionary, collectivist and holistic.     

Surplus Value Production and Realization in Marxian Theory – Applications to the U.S., 1990–2015

ABSTRACT

Marx's Capital shows that surplus value can be produced in one industry, yet realized as profit (and possibly revenue) by other industries over the course of circulation. This paper highlights the separation between surplus value production and realization in Marx's work, and develops a new method for estimating surplus value production at the industry level to trace out transfers of surplus value across industries. The framework is based on the ‘New Interpretation’ and links money value added to surplus value production at the industry level. Data on value added by industry for the U.S. are used to estimate surplus value production by industry. The analysis allows comparison of surplus value production and realization in each industry. The pattern of differentials between surplus value creation and realization across industries sheds light on the processes of capitalist competition and points to a source of instability for capitalist economies.     

A Framework for Reconsidering the Lake Wobegon Effect

The Lake Wobegon Effect (LWE) describes the potential measurement-error bias introduced into survey-based analyses of education issues. Although this effect potentially applies to any student-report variable, the systematic overreporting of academic achievements such as grade point average is often of preeminent concern. This concern can be easily circumvented if official records data are available; however, many researchers can only access student-reported data. In this article, the authors examine whether using student-survey data in place of official records data meaningfully biases regression estimates. They motivate their contribution by noting a useful statistical feature of overreporting on bounded variables such as grade point average. Specifically, the misreports will be negatively correlated with the true grade point average, yielding a form of nonclassical measurement error that actually counteracts the bias. The authors connect this observation to reliability ratios used in labor economics, which are simple ways to adjust for attenuation bias, when needed. In two applications, we find that it is unnecessary to correct for the LWE bias because it is so small.     

High School Economics: Problems and Prospects

Asserting that the basic problem in high school economics is that we have not identified “what high school economics ought to be,” Warmke proceeds to spell out some of the specific obstacles hindering the development of more and better secondary level courses. He then discusses some of the more encouraging trends in research, teaching, teacher-training, materials development, and the like, and makes some cautious projections for the future.     

Information Theory and Attitude Formation in Economic Education

Hodgin presents an econometric model in which attitudes toward economics are modified by performance in the course (as grades accumulate) and in which performance is modified by changes in attitude. The “results” support the economics of information rationale that informational messages about performance in economics affect attitude.”     

Federal and Foreign Trade Deficits and the Future of the U.S. Economy

The author traces the course of the economy during the past few years, raising questions about its future course. Unless drastic (and seemingly unlikely) actions are taken, Due predicts the resumption of inflation, a depression, or both.     

Women and Minorities in Introductory Economics Textbooks: 1974 to 1984

The authors conducted a painstaking review of widely used economics textbooks to determine if or how issues relating to race and gender are treated. In doing so, the authors also shed light on the nature of the treatment of these issues.