Download or read book Essays in Economic Development Firm Dynamics and Inequality written by Faisal Sohail and published by . This book was released on 2018 with total page 117 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studied detailed micro-level evidence to understand macroeconomic outcomes over time and across economies. The three chapters that comprise this dissertation study the following: 1) the role of employer size in the entry, size and growth of firms, 2) the interaction of income inequality and entrepreneurial entry, and 3) the effects of financial market liberalization on income inequality. Identifying the determinants of firm entry, size and growth is important for understanding aggregate outcomes within and across economies. The first chapter, "Employer Size and Spinout Dynamics" contributes to this understanding by studying the role of employer size on the formation and success of spinouts i.e. firms founded by former employees of existing firms. Using individual and firm level data from Mexico, I document a negative (positive) relationship between spinout entry (growth) and employer size. In other words, smaller firms are more likely to generate spinouts than larger firms and these spinouts grow slower than those from larger firms. Although a qualitatively similar relationship is observed in data from the U.S., there are large quantitative differences in the levels of spinout formation. To understand the impact of these differences on aggregate outcomes, I build an empirically consistent model of occupational choice and firm dynamics in which workers can learn from and adopt the productivity of their employers to form spinouts. In this framework, differences in the rate of spinout formation between U.S. and Mexico are driven by differences in the efficiency with which employees learn from their employers. I interpret this efficiency as capturing a form of managerial quality. Calibrating the model to match spinout entry across the two countries accounts for a significant share of the observed differences in output per worker, entrepreneurship and firm growth. These findings highlight the relevance of spinouts for aggregate outcomes, as well as the potential for management practices to not only impact incumbent firms but also future entrants. In the second chapter of this dissertation, "Skill Biased Entrepreneurial Decline", my co-author and I study the forces behind the decline of firm startups in the U.S. since the late 70's. We document that this decline in entry into entrepreneurship is more pronounced for skilled individuals and posit that it is due, in part, to the changing income structures of workers and entrepreneurs. We show this to be the case by introducing a rising worker skill premium in a model of occupational choice. Our findings emphasize the importance of rising income inequality in understanding the skill biased decline in entrepreneurship and the broader decline in business dynamism in the U.S. In the third chapter, "Financial Market Liberalization and Inequality", my co-authors and I investigate the role of bank branching deregulation on inequality at the top and bottom end of the income distribution in the U.S. By exploiting differences in the timing of deregulation across states , we establish a causal link between financial market liberalization and the increase (decrease) of top (bottom) income inequality. We argue that deregulation impacts inequality through direct effects on earnings in the financial sector, as well as indirect spill overs from this sector to the rest of the economy. Empirical evidence supporting these direct and indirect channels is provided. These findings contribute to understanding current trends and predicting future trends in inequality.

Download or read book Essays on Firm Dynamics and Inequality written by Ou Liu and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In chapter 2, I study what do changes in top sales shares signal about changes in large firm dynamics. I use an accounting decomposition to identify two sources of top sales shares growth: (i) incumbent top firms grow bigger; (ii) new top firms replace old top firms. I then build a continuous-time random growth model to infer the growth dynamics of firms at the upper tail of firm size distribution. In Chapter 3, in collaboration with Tam Mai, Istudy the implications of occupational and regional inequality on the labor market after the breakout of the COVID-19 pandemic.

Download or read book Growth Poverty and Inequality Dynamics written by Julian Weisbrod and published by . This book was released on 2018 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the Second World War the world has seen an economic growth spurt unprecedented in history. Economic growth is a necessary but not sufficient condition for improving human development, or in other words, economic growth is an important pre-requisite for the ultimate goal of human well-being. The four empirical essays of this book add to the general debate concerning dynamics of growth, poverty and inequality over the past 40 years from four different dimensions. The first chapter analyses the dynamics of the cross-country per capita income distribution and the existence of convergence clubs. The second chapter focuses on the dynamic development of the global income distribution and resulting implications for global income convergence, poverty reduction, pro-poor growth and the evolution of global inequality within and between countries. The third chapter investigates the deterministic relationship between ethnic fractionalisation and growth in a macro cross-country regression framework. Finally, the fourth chapter adds to the understanding of micro determinants of growth and poverty in the context of Indonesia.

Download or read book Essays on Economic Growth Inflation and Inequality written by Markus Kondziella and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Microeconomic Analysis Routledge Revivals written by David Currie and published by Routledge. This book was released on 2016-05-20 with total page 379 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 1981, this book brings together a collection of essays on microeconomics and development presented at the conference of the Association of University Teachers of Economics. Topics covered include the intergenerational transfer of economic inequality, a review of the recent development in the theory of equity in the economy’s distribution and production process, labour and unemployment, market structure and international trade, taxation and the public sector, Third World industrialisation and Indian agriculture. This book will be of interest to students of Economics and Development Studies.

Download or read book Economic Structure and Development written by Jan Tinbergen and published by . This book was released on 1973 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: Collection of essays on economic theory, written by friends and pupils of economist jan tinbergen, to commemorate his work in the field of economic development and economic structure - covers economic policy issues, 'social income', recent developments in consumer demand analysis, consumer expenditure and saving, factor price inflation, financing and forms of ownership under workers self management systems, the theoretics of national planning, etc. References and statistical tables. Festschrift tinbergen j.

Download or read book The Quality of Society Volume III written by Adolfo Figueroa and published by Springer Nature. This book was released on 2023-10-29 with total page 301 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book contains another set of essays dealing with the fundamental economic problems of our time: inequality, environment degradation, and social disorder, which are analyzed in light of the unified theory of capitalism. This theory is a scientific endeavor that seeks to explain the capitalist system taken by parts and then taken as a whole, as a unified theory. By parts, the theory analyzes the First World and the Third World and also the short run, long run, and very long run economic processes, showing why and how economic growth has led to a new epoch, with ecological equilibrium disruption, known as the Anthropocene Age. The empirical predictions of the theory are proven to be consistent with the available facts. Therefore, the theory can be accepted as a good representation of the real-world capitalism; moreover, its derived causality relations become inputs for the debate on the needed science-based policies for the new age. Indeed, this book proposes structural policies to change the way capitalism operates, through changes in its basic institutions, mainly the electoral democracy, which would certainly imply a re-foundation of the capitalist system.

Download or read book Essays on Financial Markets Inequality and Economic Development written by Joaquin Blaum and published by . This book was released on 2012 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Chapter 1, I study the effects of wealth inequality on economies where financial markets are imperfect. I exploit the idea that inequality should have a different effect across sectors. Using a difference-in-difference strategy, I show that sectors that are more in need of external finance are relatively smaller in countries with higher income inequality. I then build a model in which sectors differ in their fixed cost requirement, agents face collateral constraints, and production is subject to decreasing returns. A calibrated version of the model is consistent with the documented facts on inequality and cross-sector outcomes. At the calibrated parameters, wealth inequality exacerbates the effect of financial frictions on the economy. Quantitatively, wealth inequality can generate losses of up to 46 percent of per capita income. In Chapter 2, co-authored with Claire Lelarge and Michael Peters, we explore the ingredients that a model of import behavior should have in order to be consistent with the firm level evidence. We build a model where firms are heterogeneous in their factor neutral productivity, and prices, fixed costs and input qualities are common across firms. Using a comprehensive dataset of French firms, we test the qualitative predictions of such model. The model fares well in describing firm's expenditure across imported varieties, but fails to account for the pattern of expenditure between domestic and foreign inputs. We conclude that a mechanism inducing firm-level heterogeneity in the relative price of domestic varieties is needed to model import demand. In Chapter 3, I study the effects of financial frictions on the pattern of cross-industry growth rates. I document two facts: (i) externally dependent sectors tend to grow faster along the economy's development path, and (ii) externally dependent sectors grow disproportionately faster in countries with better financial institutions. I argue that financial frictions can account for these facts. I build a dynamic two-sector model in which sectors differ in their liquidity requirement and agents face collateral constraints. Financial frictions generate faster growth in the sector with higher liquidity requirement. I identify conditions under which financial development leads to higher excess growth in the externally dependent sector.

Download or read book Economic Growth Efficiency and Inequality written by Satish K. Jain and published by Routledge. This book was released on 2015-06-05 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume deals with a range of contemporary issues in Indian and other world economies, with a focus on economic theory and policy and their longstanding implications. It analyses and predicts the mechanisms that can come into play to determine the function of institutions and the impact of public policy.

Download or read book Conflict Demand and Economic Development written by Deepankar Basu and published by Taylor & Francis. This book was released on 2020-11-26 with total page 359 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents a comprehensive overview of three key areas: heterodox macroeconomics, development economics and classical political economy. It offers an alternative macroeconomic framework to analyse policies with an emphasis on issues of equity and justice. With contributions by leading economists from across the world, it examines the growth and distribution of income; trade and finance in developing countries; classical political economy and Marxist theory; dualism in the US economy; economic crisis; and agrarian economy in poor countries. It explores themes such as the effect of an exogenous shock to wage share; Harrodian instability and Steindlian solutions; economics and politics of social democracy; the role of power in the macroeconomy; economic development through the promotion of domestic value chains; and reflections on primitive accumulation. Going beyond the neo-classical tradition, the volume opens up a new vista of economics by discussing unexplored questions. It provides a refreshing treatment of time-tested ideas as well as discussions of recent developments and current research. A major intervention in heterodox macroeconomics and a tribute to macroeconomist Amit Bhaduri, this book will be useful to scholars and researchers of economics, political economy, development studies, sociology, political science, public administration, economic theory, economic history, economic geography and critical studies, as well as professionals, economists and policymakers.

Download or read book Inequality and Growth written by Theo S. Eicher and published by MIT Press. This book was released on 2003 with total page 343 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essays exploring the relationship between economic growth and inequality and the implications for policy makers.

Download or read book Essays on Firm Dynamics and Labor Markets written by Umberto Muratori and published by . This book was released on 2021 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt: The two chapters of this dissertation explore two central topics of the current policy debate.

Download or read book Three Essays on Industrial Policy Income Inequality and Economic Development A Case Study of South Korea written by Chul Kyoo Joseph Jung and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the relationship between the state's intervention of a different nature - industrial policy and pro-competitive reforms - and income inequality dynamics, using the Korea's heavy and chemical industry promotion during the 1970s and the pro-competitive reforms (1998-2000) as a case study. Chapter 2 focuses on the HCI promotion period (1973-1979) and investigates the impact of the state's selective industrial policy on sectoral economy, income distribution, and sectoral capacity utilization. The study finds that while industrial policy has a positive effect on capacity utilization in both targeted and non-targeted sectors, increased market power of firms in targeted industries significantly reduces the effectiveness of the state's intervention. The study also shows that the industrial policy regime is vulnerable to external shocks, such as an oil price shock. These negative effects can lead the economy to stagnation and thus excess capacity problems due to the reduced effective demand and over-investment in targeted sectors. Chapter 3 examines the association between heavy and chemical industry (HCI) promotion drive (1973-1979) and arguably the first income inequality hike in the history of Korea's economic development. Using an agent-based model (ABM) in which aggregate events emerge from the rich interactions of heterogeneous agents in the markets, this chapter shows how industrial policy that favours particular firms or industry sectors generates income inequality as well as a highly skewed income distribution among different income groups. The study highlights income inequality dynamics with special reference to the effect of preferential interest rates and discriminated access to credit markets among firms. The simulation shows the preferential interest rates for large firms in terms of asset size give a major impetus to the dramatic income inequality spike, compared to that of baseline regime (in the absence of preferential rate). Chapter 4 focuses on the impact of pro-competitive reforms on the market power and labour share of firms' value added during financial crises, using Korean firm-level data from 1990 to 2010 and difference-in-differences(DiD) estimation strategy. One of major findings is that surprisingly, the market power of top 30 chaebols was strengthened by pro-competitive reforms given that the reforms aimed to reduce excessive market power of high-ranking chaebols, and there was a significant decline in overall labour share of value added and an increase in the profit share of these large enterprises. The study argues that these outcomes are due to the pro-competitive reforms being primarily business-friendly and focused on chaebol restructuring, with relatively less attention devoted to labour-friendly policies. The study highlights the need for policymakers to consider the potential trade-offs between pro-competitive reforms and their impact on labour market outcomes.

Download or read book Essays on Macro development and Inequality written by Alessandra Peter and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation explores various topics in macroeconomics related to the level of aggregate income in different countries and how (un-)equally it is distributed across people within a country. More specifically, I focus on firms: who owns them, how they are financed, and how their production processes connect them to other sectors of the economy. In the first chapter, I study how financial markets affect the distribution of wealth across households through their effect on ownership structures of firms. I show that, within Europe, there are countries in which firms are broadly owned and financed by large parts of the population. In these countries, business risk is more widely spread across people, and wealth is less concentrated in the hands of just a few households. The remaining two chapters are concerned with the specific challenges facing firms in developing countries. I study the interaction of different sectors of the economy and what the nature of interlinkages implies for the size of firms and aggregate productivity. These are first-order issues when thinking about policies to close the gap in output and productivity between developing and developed countries. In the first chapter, `Owning Up: Closely Held Firms and Wealth Inequality', I study how frictions in debt and equity markets affect wealth inequality in Eurozone countries. Using micro data on households and firms, I document that in more unequal countries, there are more privately held firms, and ownership of publicly traded firms is more concentrated. I develop a dynamic general equilibrium model in which entrepreneurs have the option to run a private firm and issue debt, or go public and also issue outside equity. Both forms of external finance are subject to country-specific frictions. With more access to debt, entrepreneurs can run larger firms and are wealthier. Similar to debt, outside equity allows entrepreneurs to increase investment in their firm, but it also reduces their risk exposure, which lowers savings and wealth holdings. When parameters are chosen to match the facts I document on firm ownership and financing, the model successfully predicts differences in wealth concentration across countries. The second chapter, `The Aggregate Importance of Intermediate Input Substitutability', is co-authored with Stanford PhD graduate Cian Ruane. In this chapter we ask whether economic development policies should target specific sectors of the economy or follow a `big push' approach of advancing all sectors together. The relative success of these strategies is determined by how easily firms can substitute between intermediate inputs sourced from different sectors of the economy: a low degree of substitutability increases the costs from `bottleneck' sectors and the need for `big push' policies. We estimate long-run elasticities of substitution between intermediate inputs used by Indian manufacturing plants. We use detailed data on plant-level intermediate input expenditures, and exploit reductions in import tariffs as plausibly exogenous shocks to domestic intermediate input prices. We find a long-run plant-level elasticity of substitution of 4.3, a much higher level of substitutability than existing short-run estimates or the Cobb-Douglas benchmark. To quantify the aggregate importance of intermediate input substitution, we embed our elasticities in a general equilibrium model with heterogeneous firms, calibrated to plant- and sector-level data for the Indian economy. We find that the aggregate gains from a 50% productivity increase in any one Indian manufacturing sector are on average 47% larger with our estimated elasticities. Our counterfactual exercises highlight the importance of intermediate input substitution in amplifying policy reforms targeting individual sectors. The third chapter, `Distribution Costs and the Size of Indian Manufacturing Establishments', is also co-authored with Cian Ruane. We explore how productivity improvements in the distribution sectors of the Indian economy, such as transportation or wholesale trade, impact firms in the manufacturing sector. The sale of manufacturing goods involves costs of distribution such as shipping, insurance and commissions. Using micro-data from India's Annual Survey of Industries, we document that larger plants spend a larger share of their sales on distribution. We ask to what degree these distribution costs act as a constraint on larger firms and can explain the high employment share in small plants. To explore this mechanism, we develop a simple general equilibrium model in which heterogeneous firms face fixed and variable costs of distributing their products to customers. Firms selling higher quality products sell to more distant customers and incur higher distribution expenses. We carry out some preliminary quantitative exercises to explore how much TFP increases in the distribution sector affect aggregate consumption and the firm size distribution.

Download or read book International Handbook of Development Economics written by Amitava Krishna Dutt and published by Edward Elgar Publishing. This book was released on 2008-01-01 with total page 1179 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essays are concise, yet comprehensive, and each essay contains a substantial set of references, which an interested researcher or student could follow up. . . In addition to representing multidisciplinary interactions, this collection encompasses several different perspectives within development economics, so the reader can learn, for example, both about neoclassical approaches and dependency theories in the same volume. This makes the collection unique and all the more valuable. . . This is a very good reference collection, as the individual essays are informative and provide a good overall perspective on the topic that they set out to address. The extensive bibliography at the end of each essay adds further value to this collection. Ashwini Deshpande, Economic and Political Weekly These new volumes impress along two dimensions. First, they highlight important connections between economic development and variables such as culture, warfare, and ethnicity, which are sometimes ignored by mainstream economists. Second, they analyze the economic development experience of different regions such as Africa, Latin America, and East Asia. . . a valuable reference for scholars and practitioners in the field. Highly recommended. H.A. Faruq, Choice This two-volume original reference work provides a comprehensive overview of development economics and comprises contributions by some of the leading scholars working in the field. Authors are drawn from around the world and write on a wide range of topics. After providing an introduction to the subject (by examining issues like the meaning and measurement of development, historical and interdisciplinary approaches, empirical regularities and data problems), the contributors provide a wealth of perspectives on, and analyses of, development economics. They discuss alternative approaches to development, the macroeconomics of growth, factors and sources of economic development (such as capital, labor, entrepreneurship, resources and technology), major sectors of concern (such as agriculture, industry, services and the informal sector) and international issues (such as trade, capital and labor flows and technology transfers). Income distribution and poverty, the state and other institutions, and actual development experiences are explored. The contributors provide analytical contributions, as well as the relation between these contributions and real world and policy issues from a variety of alternative perspectives. Scholars, students, policymakers and other development practitioners will all find this comprehensive reference invaluable.

Download or read book Globalization and Economic Development written by Servaas Storm and published by Edward Elgar Publishing. This book was released on 2001 with total page 440 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seventeen international specialists contribute 16 essays to this text honoring Dutch researcher, educator, and policy-maker, George Waardenburg. Focusing on developing countries, this text analyzes globalization from a range of perspectives. It challenges the mainstream view that globalization ensures efficiency and growth and provides equity and development for participating countries. Coverage includes the effects of the neo-liberal (Washington Consensus) policies on growth and stability in developing countries; developments in international capital flows and their implications for economic policy and policy autonomy; and the effects of globalization on income distribution, employment, and significant social indicators within developing countries and on the environment. c. Book News Inc.

Download or read book Causes and Consequences of Income Inequality written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2015-06-15 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.