With the advancement of China’s economic transformation, the impact of economic policy uncertainty on family firms has become increasingly significant. The “familism” of family firms makes them more motivated to maintain family harmony, pursue innovative activities, and the long-term development of enterprises when faced with economic policy uncertainty. In this paper, we employed the data of listed Chinese family firms from 2010 to 2018 to analyze the impact of economic policy uncertainty on family (...) business innovation activities, analyze the inherent characteristics of family firm innovation, and find the path that enables the innovative activities of family firms and provides a valuable experience for the innovation of private enterprises in economic policy uncertainty. We provide evidence that economic policy uncertainty positively relates to family firm innovation. Moreover, the relationship is affected by factors such as directors’ executive background and access to state-owned equity. Further analysis indicates that economic policy uncertainty can promote family firms’ innovation activities by improving their risk-taking, internal capital market circulation, and reducing political connections. (shrink)

We empirically analyze the impact of economic uncertainty due to the COVID-19 pandemic on the trading volume of each sector in the S&P 500 index. Wavelet coherence analysis is carried out using economic policy uncertainty data and the trading volume of each sector in the S&P 500 index from July 2004 to September 2020. Furthermore, we apply multifractal detrended fluctuation analysis to the trading volume series of all sectors. The wavelet coherence analysis shows that the COVID-19 pandemic (...) has substantially influenced trading volume in all sectors. However, the impact of the pandemic is different from that during the global financial crisis in some sectors, such as information technology, consumer discretionary, and communication services. Because of the lockdown taken to suppress COVID-19, increased remote working and remote learning are the main reasons for these results. Additionally, according to the MF-DFA analysis, the trading volume of all the sectors has clear multifractal characteristics, and they are all nonpersistent. Specifically, trading volumes of the real estate and materials sector are highly correlated, whereas the trading volumes of industry and information technology sectors are comparatively less correlated. (shrink)

Written by four recognized experts with senior experience in research and government, this text is the first comprehensive survival kit for students and practitioners of economic policy. It is set to become an indispensable resource for everyone involved or interested in modern economic policy. Academic scholars willing to engage in policy discussions and students at graduate or advanced undergraduate levels will find it an essential bridge to the policy world. What makes the book unique (...) is that it combines like no other, facts-based analysis, state-of-the art theories and models, and insights from first-hand policy experience at national and international levels. The book has grown out of ten years of experience teaching economic policy at the graduate level. It provides an intellectually coherent framework to understand the potentialities and limits of economic policy. It addresses positive dimensions, normative dimensions and political-economy constraints. It fills an important gap by reconciling in each major policy area stylized facts of recent economic history, key questions faced by contemporary policymakers, and essential lessons from theory which are captured and explained in a clear, concise, and self-contained way. All major areas of domestic and international policymaking are covered: fiscal policy, monetary policy, international finance and exchange-rate policy, tax policy, and long-term growth policies. The book concludes with a special chapter on the lessons of the financial crisis. The authors are intellectually non-partisan and they draw examples from various countries and experiences; from emerging markets to developing economies, shedding light when necessary on local specificities such as European Union rules and instruments. Economic Policy: Theory and Practice is the essential guide to economic policy in the new post-crisis context. (shrink)

In this paper, we study the relationship between Economic Policy Uncertainty (EPU) and carbon dioxide (CO 2 ) emissions. Using an extensive dataset from 23 countries consisting of 6800 firm-year observations, we provide strong evidence that EPU increases firms’ CO 2 emissions. Our main inference is robust when using alternative measures of CO 2 emissions and EPU, alternative econometric specifications and samples, and several approaches to control for possible endogeneity. In a set of additional analyses, we first show (...) that a board’s characteristics (i.e., board gender diversity and board independence) significantly moderate the studied relationship. Second, cross-country characteristics (i.e., government effectiveness, control of corruption, and democracy) seem important in the relationship between EPU and CO 2 emissions. Our findings significantly contribute to the debate on firms’ ethical responsibility in managing climate change and CO 2 emissions. (shrink)

Recent developments in public economics have largely been in the direction of reaffirming the limits of the market and of establishing new ones. The possible existence of fundamental non-convexities, imperfect and asymmetric information, incentive compatibility, imperfect competition, strategic complementarity, and scale economies led to the conclusion that a large set of market failures exist; such situations also imply government failure. Acocella, considers this complicated picture and provides a discussion of the different approaches to establishing social 'rankings' of the possible situations (...) and the underlying principles. The arguments for and against different institutions are then analysed at a micro and macroeconomic level. The market and the government are recognised as imperfect, and thus complementary, institutions. Specific policy targets and instruments are considered in the areas of micro and macro-economic policy. Special attention is devoted to questions of policy management in an open economy. Finally, problems of domestic and international policy co-ordination are considered. (shrink)

Recent developments in public economics have largely been in the direction of reaffirming the limits of the market and of establishing new ones. The possible existence of fundamental non-convexities, imperfect and asymmetric information, incentive compatibility, imperfect competition, strategic complementarity, and scale economies led to the conclusion that a large set of market failures exist; such situations also imply government failure. Acocella, considers this complicated picture and provides a discussion of the different approaches to establishing social 'rankings' of the possible situations (...) and the underlying principles. The arguments for and against different institutions are then analysed at a micro and macroeconomic level. The market and the government are recognised as imperfect, and thus complementary, institutions. Specific policy targets and instruments are considered in the areas of micro and macro-economic policy. Special attention is devoted to questions of policy management in an open economy. Finally, problems of domestic and international policy co-ordination are considered. (shrink)

First published in 1977, this is an applied economics text, in which the basic theory of any introductory economics couurse is applied to a whole range of UK macro- and micro-economic policy issues. The book is designed specifically for first and second year university students, with the aim of demonstrating the relevance of theory to policy, how theory can be applied to policy problems and, in the process, to improve their understanding of the theory itself.

The impetus of this study is to gauge the nexus between economic policy uncertainty and financial innovation in Brazil, Russia, India, China, and South Africa nations for the period from 2004M1 to 2018M12. This study utilizes both the linear and non-linear autoregressive distributed lag models to evaluate the long-run and the short-run association between EPU and financial innovation; furthermore, the causal effects are investigated by following the non-Granger casualty framework. The results of long-run cointegration, i.e., the test statistics (...) of modified F-test, standard Wald test, and tBDM, reject the null hypothesis and establish the presence of the long-run association between EPU and financial innovation. Conversely, long-run asymmetry cointegration revealed the test statistics of FPSS, WPSS, and tBDM in non-linear estimation. Furthermore, both in the long run and short run, the Wald test results disclose asymmetric effects running from EPU to financial innovation. In regards to the asymmetric impact of EPU on financial innovation, this study documents that the positive and negative shocks in EPU are negatively linked with financial innovation in the long run but are insignificant for short-run effects. Besides, financial innovation measured by R&D investment exhibits a positive linkage with shocks in EPU, implying that uncertainty induces innovation in the economy. Referring to causality effects, this study divulges the feedback hypothesis, i.e., bidirectional causality prevails between EPU and financial innovation in all sample countries. (shrink)

This essay explores the ways in which economic policy might promote peace. It begins by considering what conditions are essential to a peaceful community. Here, I draw on the varied tradition that equates peace with human development. Such a conception is explicitly articulated in the writings collectively known as Catholic Social Thought (CST). It can also be clearly inferred from other quarters, for example, in the writings of the economist Amartya Sen (1999), the Dalai Lama (1999), and in (...) various United Nations Human Development Program reports. Do current economic arrangements support human development and, hence, peace? What changes in economic arrangements help bring us closer to authentic development? (shrink)

This book analyzes the links between political economics, governance structures and the distribution of political power in economic policy making. The book theoretically explains and empirically quantifies these interactions. The analysis includes both public good policies and redistributive policies. Part I of the book presents the conceptual foundations of political-economic bargaining and interest group analysis. After presenting the underlying theory, Part II of the book examines ideology, prescription and political power coefficients; Part III analyzes a number of (...) specific structures; and Part IV presents a framework for political econometrics with a number of empirical applications and testable hypotheses. In all four parts of the book, four analytical dimensions of public policy are distinguished: governance structures, political economy, mechanism design and incidence. (shrink)

This is a volume of papers organized by Professor Leontief for the 1976 meeting of the Economics section of the British Association for the Advancement of Science. After a paper by Professor Leontief applying input-output to the future of the world economy, other papers consider prices, regional problems, material supplies, urban problems, technical progress, unemployment and energy policy. There are two papers with a broader view of the British economy, one surveying government policy on the industrial structure of (...) the economy and one considering the use of input-output for monitoring the development of the economy. (shrink)

In this paper, we investigate the impact of economic policy uncertainty on the conditional dependence between China and U.S. stock markets by employing the Copula-mixed-data sampling framework. In the case of EPU, we consider the global EPU, the American EPU, and the China EPU. The empirical analysis based on the Shanghai Stock Exchange Composite index in China and the S&P 500 index in the U.S. shows that the tail dependence between China and U.S. stock markets is symmetrical, and (...) the t Copula outperforms alternative Copulas in terms of in-sample goodness of fit. In particular, we find that the t Copula-MIDAS model with EPU dominates the traditional time-varying t Copula in terms of in-sample fitting. Moreover, we observe that both the GEPU and AEPU have a significantly positive impact on the conditional dependence between China and U.S. stock markets, whereas CEPU has no significant impact. The tail dependence between China and U.S. stock markets exhibits an increasing trend, particularly in the recent years. (shrink)

ABSTRACT The financial crisis was in large part caused, prolonged, and worsened by a series of government actions and interventions. The housing boom and bust that precipitated the crisis were enabled by extraordinarily loose monetary policy. After the housing boom came to an end, the Federal Reserve misdiagnosed financial markets' uncertainty about the location and value of risky subprime mortgage‐backed securities as being, instead, a liquidity problem, and it took inappropriate compensatory actions that had side effects that included raising (...) the price of oil. Finally, in mid‐September 2008, the government's ad‐hoc bailouts, and the unpredictable terms of the proposed tarp legislation, appear to have caused a sharp spike in uncertainty in the financial markets. (shrink)

Jean-Paul Fitoussi needs no introduction as one of the world's foremost Macroeconomists of his generation. This celebration of his work includes contributions from Nobel Prize - winning economists Robert W. Clower and Robert Solow as well as Olivier Blanchard and leading economic theorist, Edmond Malinvaud.

The problem of the concept of Ukraine’s state economic policy of regulation of human resources international movement in the context of global intellectualization remains topical throughout the existence of Ukraine as an independent state. It should be noted that the favorable geopolitical position of Ukraine provides potential opportunities for the development of both regions and the state as a whole, creates conditions that are associated with the involvement in international migration, tourism and transit and professional processes. Their number (...) increases in modern conditions of globalization development. The analysis of features of Ukraine's participation in the processes of intellectualization of the human resources international movement demonstrates the necessity of developing the state economic policy of the human resources international movement, which would become part of the global space and have certain benefits. (shrink)

This article explains and criticizes several of Hume's arguments regarding British economic policy. I focus on Hume's methodology, which is essentially utilitarian but also depends heavily on his philosophical account of human psychology. I claim that the arguments examined prevail over competing 18th century approaches to economic policy. And I explain the relevance of this methodology for present day public policy debates.

Ideally, the government of any nation is in a contract with the citizens for protection of life, property and freedom while the citizens are obliged to obey government laws. Moreso, the government is to discharge her duties without discriminating against any person or group. In Nigeria there are economic and administrative policies that discriminate against the Igbo nation resulting in dire consequences. Since economic policies make or mar the wellbeing of citizens especially in business, the need for fairness, (...) equity, and justice in the formulation and execution of policies is unquestionable. The Igbo of South East Nigeria, who are very active in business and entrepreneurship, suffer untold disadvantages and massive economic losses due to the lopsided and discriminatory economic policies churned out by successive Nigerian governments. Here we examine and argue against such policies based on their ethical implications and effects on individual and national development. (shrink)

Weak states and ineffective economic policies are assumed to mediate the constraints of the world system and to prevent upward mobility among peripheral countries. This article tests the effects of state strength and economic policy on world system mobility in the period 1970–85 on a sample of 162 countries. World system role and mobility were operationalized using role equivalence based network measures. Countries with effective neoorthodox policies experience significantly higher mobility, even after controlling for economic performance, (...) as do countries with states that have high despotic capacity. No effect, direct or indirect, was found for infrastructural state capacity. (shrink)

The article is devoted to the analysis, and introduces the publication, of one of the texts of the documentary complex ‘The Verkhne-Uralsk Political Isolator Notebooks’ – the ‘Theses on Economic Policy’ of 1933. The article (DOI: 10.1163/1569206X-00002252) covers the history of the discovery of this complex of documents reflecting the ideological and political life of imprisoned members of the Opposition of the Bolshevik Leninists (Trotskyists) in the early 1930s, and discusses the context of their creation. On the basis (...) of archival materials, the biography of one of the authors of the Theses – the agricultural economist, and a member of the Siberian opposition centre, F.P. Sasorov – is reconstructed. It is noted that Sasorov held a special position among the Bolshevik Leninists, determined by his economic views. He belonged to the current whose adherents were called ‘neo-Nepists’ by their opponents. This current advocated not just a return to the NEP cancelled by Stalin, but also an expansion of its scope, and this position is presented and argued for in the ‘Theses on Economic Policy’. A comparison of the views of Sasorov and his co-author G.A., stated in the Theses, including on the explanation of the crisis and the liquidation of the NEP, the policy of out-and-out collectivisation and forced industrialisation, with the views of Leon Trotsky, allows us to conclude that the thought of the imprisoned oppositionists developed independently, and not always in accordance with the guidelines of their exiled thought leader. The article also examines the forecasts of the development of the economic and socio-political situation in the USSR presented in the Theses. (shrink)

ABSTRACTThis paper offers a re-interpretation of the development of practical mathematics in Elizabethan England, placing artisanal know-how and the materials of the discipline at the heart of analysis, and bringing attention to Tudor economic policy by way of historical context. A major new source for the early instrument trade is presented: a manuscript volume of Chancery Court documents c.1565–c.1603, containing details of a patent granting a monopoly on making and selling mathematical instruments, circa 1575, to an unnamed individual, (...) identified here as the instrument maker Humphrey Cole. Drawing on economic and legal history, the paper argues that practical mathematics needs to be understood as one ‘project’ among many, at a time when monopoly patents were used to advance industry, lower unemployment, secure the realm and reward invention. Drawing on the history and sociology of technology, it argues that the management and control of materials – mathematical instruments themselves, and the local socio-legal context within which they could be made – needs to be understood as prior to and separate from the rhetoric of mathematical authors, which is of interest in its own right but which may not have a direct relationship to mathematical practice. (shrink)

These lectures are concerned with the origins of the distinctive policies of the Stockholm School of Economics, of which Erik Lundberg was a leading member. Lundberg explores the historical development of the Stockholm School and considers its place in the wider Keynesian tradition which dominated macroeconomic thinking in the West from the 1930s till the 1970s. The author examines the failure of Keynesian policies both in Sweden and internationally, and offers some tantalising and provocative remedies for future policy-makers to (...) ponder. (shrink)

The difference between monarchies and republics stems from the variation in the sources of authority and the nature of leadership transition. However, the similarity lies in the fundamental tasks accomplished by political systems, as they represent the structures and institutions that manage the relationships between the ruler and the governed within the state. These systems are responsible for organizing public life and achieving stability. The core tasks differ according to the nature of the political systems, whether they are monarchies, republics, (...) or (democratic, authoritarian, or others). Each system has its own features and characteristics that impact the state's stability, either positively or negatively. (shrink)

Alfred Müller-Armack was one of the very important policy-makers who initiated the West-German economic recovery after WWII. He devised the underlying economic program of the so-called “German Miracle”, which was not a miracle at all. It was the outcome of a rigorous rule transformation from the bankrupt central planning of the Nazi- regime to a market economic order based on the principles of classical liberalism combined with a social safety net for all who suffered from the (...) terrible consequences of war destruction. He called his program “Social Market Economy”, thereby expressing that the risky game of the market needs a social safety net to make his program acceptable for the majority of the German citizens.Müller-Armack was not only the Head of the Central Policy Unit at the Federal Economic Ministry under Ludwig Erhard for twelve years but also a well-known university teacher of economics. In the tradition of Max Weber he combined this subject with the theory of economic sociology, and especially, the sociology of religion. In this respect he was an early author in the field which nowadays is named “cultural economics”. His publications on the impact of religious beliefs of greek-orthodox societies on the economic performance of South-East European countries are still of great interest for the present debates about the economic consequences of Islam.Alfred Müller-Armack fut l’un des très importants politiciens qui initièrent l’économie de l’ Allemagne de l’Ouest après la 2ème Guerre Mondiale. Il conçut dans ses grandes lignes le programme économique du soi disant « Miracle Allemand ». Ce fut le résultat d’une règle rigoureuse de transformation à partir de la faillite de la planification centrale du régime Nazi vers un ordre marchand fondé sur les principes du libéralisme classique combiné à un filet de sécurité sociale pour tous ceux qui avaient souffert des conséquences terribles des destructions de la guerre. Il appela son programme « Economie sociale de marché », exprimant ainsi que le jeu risqué du marché nécessite un filet de sécurité sociale pour rendre son programme acceptable par la majorité des citoyens allemands. Müller-Armack n’était pas seulement le chef de l’unité politique centrale au ministère fédéral de l’économie sous la direction de Ludwig Erhard pendant 12 ans, mais également un professeur très réputé d’économie à l’université. Dans la tradition de Max Weber, il associe ses sujets avec la théorie économique de la sociologie et plus particulièrement, la sociologie de la religion. Dans cette mesure, il fut un pionnier dans le champ de ce que l’on appelle aujourd’hui « l’économie de la culture ». Ses publications sur l’impact des croyances religieuses des sociétés grecques orthodoxes sur la performance économique des pays du Sud-Est Européen restent d’un grand intérêt pour les débats actuels au sujet des conséquences économiques de l’Islam. (shrink)

This paper presents rational and unanimously agreeable norms in (a) governance, (b) economic policy, (c) constitution and (d) religious and scientific beliefs for civilized coexistence. The basis of unanimous agreeability is that individuals do not prefer to have their wealth (including life) robbed, even surreptitiously. This preference is unanimous because even robbers do not want to be robbed. I argue that unanimously agreeable norms are necessary for civilized co-existence of humans and are consistent with the ancient philosophy (Hindutva), (...) which originated in India more than 3000 years BC and is reflected in Gita, https://en.wikipedia.org/wiki/bhagavad_gita. Gita is considered by Courts of India as a philosophical document. The basic ethos of Gita is explicit and transparent: the state (King Dhristarastra) must not allow anyone (including privileged princes like Duryodhan) to take away others' (Pandavas') property even surreptitiously (through Sakuni's rigged game of Pashakhel). The modern constitution ordains freedom through rights to property, liberty and pursuit for happiness of individuals. But it has tacitly allowed establishment of a system (rules) of governance to facilitate surreptitious robbery. Individuals accumulate property like home and retirement savings with a hope to attain freedom, eventually, which they cannot achieve if they are robbed, even surreptitiously. The ancient philosophy of Gita prohibits robbery of any kind and, thus, guarantees hope for individual freedom. The modern philosophy—underlying the established system (rules) tacitly allowing surreptitious robbery—cannot, however, achieve individual freedom. Widespread or inclusive economic prosperity can be attained only if the constitution and rules of law are unanimously agreeable which will be consistent with ancient ethos but not modern philosophy. (shrink)

ABSTRACTThe continued rise of socio-economic inequality over the past decades with its connected political outcomes such as the Brexit vote in the UK, and the election of Donald Trump are currently a matter of intense debate both in academia and in journalism. One significant sign of the heightened interest was the surprise popularity of Thomas Piketty’s Capital in the twenty-first Century. The book reached the top of the bestseller lists and was described as a ‘media sensation’, with Piketty himself (...) as a ‘rock star economist’. This paper, drawing from a major international and cross-disciplinary study, investigates the print media treatment in four European countries of economic policy proposals presented in Capital. Applying social semiotic and critical discourse analysis, we specifically focus on articles which are in disagreement with these proposals and identify five categories of counterarguments used against Piketty: authorisation, moralisation, rationalisation, portrayal of victimhood and inevitab... (shrink)

Our socio-economic innovation ecosystem is riddled with ever-increasing complexity, as we are faced with more frequent and intense shocks, such as COVID-19. Unfortunately, addressing complexity requires a different kind of economic governance. There is increasing pressure on economics to not only going beyond its traditional mainstream boundaries but also to tackle real-world problems such as fostering structural change, enhancing sustained growth, promoting inclusive development in the era of the digital economy, and boosting green growth, while addressing the divide (...) between the financial sector and the real economy. This book demonstrates how to apply complexity science to economics, in an effective and instructive way, in the interest of life-enhancing policies. The book revolves around the non-negligible problem of why economics, to date, seems to be insufficient in guiding economic governance to navigate through real and ever-intensifying complex socio-economic and environmental challenges. With its interdisciplinary approach, the book scans the nuanced nexus between complexity and economics by incorporating, as well as transcending the state-of-the-art literature. It identifies ways to trigger opportunities for behaviour change in the economic profession with respect to how to teach and what, introducing and developing further complexity economics thinking with the configuration of its main principles and outlining the silhouette of next-generation economic governance. The book deciphers recommendations both for economic theory, practice, and education and economic governance. It will be of interest to students, scholars, academics, think tank researchers and economic policy practitioners at the national and/or supranational level. Olivér Kovács is a senior research fellow in the Department of Economics and International Economics at the University of Public Service, Budapest, Hungary. (shrink)

This paper argues that history of economics has a fruitful, underappreciated role to play in the development of economics, especially when understood as a policy science. This goes against the grain of the last half century during which economics, which has undergone a formal revolution, has distanced itself from its `literary' past and practices precisely with the aim to be a more successful policy science. The paper motivates the thesis by identifying and distinguishing four kinds of reflexivity in (...) economics. The main thesis of this paper is that because these forms of reflexivity are not eliminable, the history of economics must play a constitutive role in economics. An assumption that I clarify in this paper is that the history of economics ought to be part of the subject matter studied by economics when they are interested in policy science. Even if one does not accept the conclusion, the fourfold classification of reflexivity might hold independent interest. The paper is divided in two parts. First, by reflecting on the writings of George Stigler, Paul Samuelson, George and Milton Friedman, I offer a stylized historical introduction to and conceptualization of the themes of this paper. In particular, I identify various historically influential arguments and strategies that reduced the role of history of economics within the economics discipline. In it I also canvass six arguments that try to capture the cost to economics for sidelining the history of economics from within the discipline. A sub-text of the introduction is that for contingent reasons, post World War II economics evolved into a policy science. Second, by drawing on the work of Kenneth Boulding, in particular, George Soros, Thomas Merton, Gordon Tullock, I distinguish between four species of reflexivity. These are used to then strengthen the argument for the constitutive role of the history of economics within the economics profession. In particular, I argue that so-called Kuhn-losses are especially pernicious when faced with policy choices under so-called Knightian uncertainty. (shrink)