DOCSLIB.ORG

Common Goods & Distribution

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Common Goods & Distribution COMMON GOODS & DISTRIBUTION PUBLIC FINANCE AND ENVIRONMENTAL POLICY IN AN UNEQUAL WORLD vorgelegt von DAVID CHRISTIAN KLENERT, Diplom-Physiker, geb. in Konstanz von der Fakultät VI - Planen Bauen Umwelt der Technischen Universität Berlin zur Erlangung des akademischen Grades Doktor der Wirtschaftswissenschaften - Dr. rer. oec. - genehmigte Dissertation Promotionsausschuss: Vorsitzender: Prof. Dr. Stefan Heiland Gutachter: Prof. Dr. Ottmar Edenhofer Gutachter: Prof. Dr. Matthias Kalkuhl Gutachter: Prof. Dr. Georg Meran Tag der wissenschaftlichen Aussprache: 29. September 2016 BERLIN 2016 Abstract Tax policy in the 21st century faces three key challenges: mitigating inequality, the possibility of high levels of global warming through the unregulated release of greenhouse gases into the atmosphere and a lack of investment in infrastruc- ture. Global warming and underfinanced infrastructure are a consequence of mismanaged common goods. This thesis argues that policies regulating the use and the supply of these common goods can also have beneficial effects on the distribution of wealth and income. For that purpose I analyze the distributional effects of different policy de- signs which regulate the use and supply of common goods. The thesis consists of two parts each corresponding to one common good: In the first part, I study policies that manage the common good of the atmo- sphere in its function as a carbon sink and their distributional impacts. Such climate policies can affect poor households disproportionally since they spend a higher share of their income on carbon-intensive subsistence goods. The overarching research question in Part I is: how can climate policies be designed such that they are distributionally neutral or progressive? In this context I also discuss the following, more general question: to what extent can interactions between public and climate policies enhance welfare? Part II of this thesis focuses on infrastructure in a broad sense including transport and energy infrastructure as well as investment in the education sec- tor. Infrastructure is of major importance for an economy’s growth trajec- tory, but also underfinanced in large parts of the world. I therefore analyze the equity and efficiency impacts of different financing mechanisms for public investment in infrastructure. The main research question is: how can pub- lic investment in infrastructure be financed to be distribution-neutral or even inequality-reducing? I further use a model in which wealth is disaggregated into physical capital and land, and in which households differ in the strength of their savings motive, to answer the following question: which combination of wealth-based taxes can reduce inequality without harming efficiency? This thesis analyzes different design options for policies that regulate com- mon goods in terms of their equity and efficiency implications. The main find- ing of this thesis is that, when equity considerations are included in the assess- ment of policies which regulate common goods, these policies can be designed to be distribution-neutral or even progressive. It thus provides additional rea- sons for implementing stricter common good policies, such as a higher carbon price and increased public investment in infrastructure. It further argues that accounting for interactions between public and climate policies is needed for a sound appraisal of second-best policies. Finally, this thesis demonstrates that wealth inequality can be reduced without harming economic output. iii iv Zusammenfassung Drei der wichtigsten politischen Herausforderungen für Finanzpolitik im 21. Jahrhundert sind: die Reduzierung von Ungleichheit, globale Erwärmung durch den unkontrollierten Ausstoß von Treibhausgasen in die Atmosphäre und ein Mangel an Investitionen in Infrastruktur. Eine zu hohe Konzentra- tion von Treibhausgasen in der Atmosphäre sowie unterfinanzierte Infrastruk- tur sind eine Folge schlecht verwalteter Allmendegüter. Die vorliegende Dissertation vergleicht verschiedene Politikentwürfe zur Regulierung der Nutzung und Bereitstellung von Allmendegütern und deren Wechselwirkungen mit Ungleichheit. Es wird gezeigt, dass Politikinstrumente zur Regulierung von Allmendegütern so gestaltet werden können, dass sie gleichzeitig die Ungleichheit verringern. Die Dissertation besteht aus zwei Teilen die jeweils einem Allmendegut entsprechen. In Teil I untersuche ich die Verteilungswirkungen von Politikinstrumenten zur Regulierung der Nutzung der Atmosphäre als Senke für CO2 Emissio- nen. Klimapolitik kann arme Haushalte stärker treffen als reiche Haushalte, da erstere einen höheren Anteil ihres Einkommens für CO2-intensive Güter ausgeben. Die Forschungsfrage in Teil I ist daher: Wie kann Klimapolitik kon- zipiert werden, so dass sie verteilungsneutral oder progressiv wirkt? Außer- dem diskutiere ich, in wie weit Wechselwirkungen zwischen Wirtschafts- und Umweltpolitik die Kosten von Umweltpolitik senken können. Teil II behandelt das Thema der öffentlichen Finanzierung von Infrastruktur. Öffentliche Transport-, Energie-, Kommunikations- und Bildungs-Strukturen sind äußerst relevant für das Wirtschaftswachstum. Allerdings liegen die jährlichen Investitionen in Infrastruktur deutlich unter dem optimalen Niveau. Der zweite Teil befasst sich daher mit folgender Forschungsfrage: Wie können öffentliche Investitionen so finanziert werden, dass die Ungleichheit verringert wird, oder zumindest unverändert bleibt? Darüber hinaus untersuche ich die Frage ob Steuern, die nur auf bestimmte Vermögenskomponenten erhoben werden (wie z.B. auf Landrenten oder Erbschaften), die Ungleichheit senken können, ohne der Wirtschaft zu schaden. Die vorliegende Dissertation zeigt auf, dass Politikinstrumente, die die Nutzung und Bereitstellung von Allmendegütern (wie der Atmosphäre und Infrastruktur) regulieren, so konzipiert werden können, dass sie Ungleichheit verringern oder unverändert lassen. Die Reduzierung von Ungleichheit kann deshalb eine zusätzliche Motivation darstellen für strengere Klimapolitik und gesteigerte Investitionen in Infrastruktur. Darüber hinaus wird gezeigt, dass Wechselwirkungen zwischen Wirtschafts- und Umweltpolitik die Kosten von Umweltpolitik deutlich verringern können, und dass Vermögensungleichheit reduziert werden kann, ohne dadurch die Wirtschaftsleistung einzuschränken. v vi Contents Abstract iii Zusammenfassung v 1 Introduction 1 1.1 Economic inequality 4 1.2 The atmosphere as a common good 9 1.3 Infrastructure as a common good 14 1.4 Thesis objective and outline 18 I The atmosphere as a common good 31 2 How to make a carbon tax reform progressive 33 2.1 Introduction 36 2.2 The model 37 2.3 Results 38 2.4 Conclusion 42 3 Environmental taxation, inequality and Engel’s law 45 3.1 Introduction 48 3.2 The model 50 3.2.1 Calibration 53 3.2.2 Solving numerically 53 3.2.3 Measures of distribution 54 3.3 Optimal environmental tax reform 54 3.4 Robustness: lump-sum transfers, subsistence consumption and greening of preferences 58 3.4.1 Optimal taxation without lump-sum transfers 58 3.4.2 The role of non-homothetic preferences 59 3.4.3 Parameter sensitivity and greening of preferences 61 3.5 The case of a calibrated pre-existing tax system 62 vii viii CONTENTS 3.5.1 Calibration of the suboptimal income tax system 63 3.5.2 Revenue recycling scenarios 63 3.5.3 Results 64 3.6 Conclusion 66 4 The fiscal benefits of climate policy 71 4.1 Introduction 74 4.2 Current assessments of climate change mitigation policies 76 4.2.1 Integrated assessment modeling of optimal mitigation and second-best policies 76 4.2.2 Lower cost of public funds: The double ’dividend’ of environmental tax swaps 78 4.3 Why climate change mitigation enhances welfare 80 4.3.1 Reduced international tax competition: Substituting rent taxation for capital taxation 81 4.3.2 Alleviated underinvestment: Inducing a ’macroeco- nomic portfolio effect’ by rent taxation 83 4.3.3 Lower private abatement costs: Restructuring public spending 85 4.3.4 Optimal public spending level: Alleviating budget constraints 87 4.3.5 Using carbon revenues for reducing inequality: the role of public investment 91 4.3.6 Intergenerational distribution: fiscal strategies for Pareto-improving climate policy 95 4.4 Discussion:Integrating climate policy and public finance in one framework 97 4.5 Conclusion: Implications for Policy Assessment 100 II Infrastructure and inequality 113 5 Distributional effects of public investment 115 5.1 Introduction 118 5.2 Model 121 5.3 Results 123 5.3.1 Steady state and validity range 124 5.3.2 The effects of policy 126 5.3.3 Simulation and calibration 129 5.3.4 The role of the elasticity of substitution between capi- tal and labor 131 CONTENTS ix 5.4 Conclusion and outlook 134 6 Infrastructure and inequality 139 6.1 Introduction 142 6.2 Model 144 6.2.1 The firm 145 6.2.2 The high-income households 146 6.2.3 The middle-income households 146 6.2.4 The government 147 6.2.5 Equilibrium and the Pasinetti Paradox 147 6.2.6 Measures of distribution 148 6.2.7 Calibration 148 6.3 Results 149 6.3.1 Long-run results 150 6.3.2 Transitional dynamics 154 6.4 Extensions and robustness 155 6.4.1 Extensions 156 6.4.2 Robustness 161 6.5 Conclusion 163 7 Is capital back? 175 7.1 Introduction 178 7.2 A simple model of bequest heterogeneity 181 7.3 The role of land rents and savings behavior for the economic impact of fiscal policy 184 7.3.1 Model 184 7.3.2 The revenue side of fiscal policy 186 7.3.3 The spending side of fiscal policy 193 7.4 Robustness checks and sensitivity analysis 195 7.4.1 The role of preferences 195 7.4.2 Sensitivity analysis of the impacts of fiscal policy 196 7.4.3 Alternative spending option: Infrastructure investments 200 7.5 Conclusion 201 8 Synthesis and outlook 211 8.1 Summary of the results 212 8.1.1 Climate policy 212 8.1.2 Infrastructure policy 213 8.2 Models of household heterogeneity 214 x CONTENTS 8.3 Extensions 216 8.4 Policy relevance 219 8.4.1 Implications for climate policy 219 8.4.2 Implications for infrastructure policy 221 8.4.3 Implications for combating inequality 222 List of publications 227 Statement of Contribution 229 Tools and Resources 231 Acknowledgements 233 Chapter 1 Introduction The global economy relies on the use of many common goods.
Load more

Recommended publications
  • Macroeconomic Theory and Policy Lecture 2: National Income Accounting
    ECO 209Y Macroeconomic Theory and Policy Lecture 2: National Income Accounting © Gustavo Indart Slide1 Gross Domestic Product Gross Domestic Product (GDP) is the value of all final goods and services produced in Canada during a given period of time That is, GDP is a flow of new products during a period of time, usually one year We can use three different approaches to measure GDP: Production approach Expenditure approach Income approach © Gustavo Indart Slide 2 Measuring GDP Production Approach –We can measure GDP by measuring the value added in the production of goods and services in the different industries (e.g., agriculture, mining, manufacturing, commerce, etc.) Expenditure Approach –We can measure GDP by measuring the total expenditure on final goods and services by different groups (households, businesses, government, and foreigners) Income Approach –We can measure GDP by measuring the total income earned by those producing goods and services (wages, rents, profits, etc.) © Gustavo Indart Slide 3 Flow of Expenditure and Income Labour, land FACTORS Labour, land & capital MARKETS & capital Wages, rent & interest HOUSEHOLDS FIRMS Expenditures on goods & services Goods & services GOODS Goods & MARKETS services © Gustavo Indart Slide 4 Measuring GDP Current Output –GDP includes only the value of output currently produced. For instance, GDP includes the value of currently produced cars and houses but not the sales of used cars and old houses Market Prices –GDP values goods at market prices, and the market price of a good includes
    [Show full text]
  • The Economic Conception of Water
    CHAPTER 4 The economic conception of water W. M. Hanemann University of California. Berkeley, USA ABSTRACT: This chapterexplains the economicconception of water -how economiststhink about water.It consistsof two mainsections. First, it reviewsthe economicconcept of value,explains how it is measured,and discusses how this hasbeen applied to waterin variousways. Then it considersthe debate regardingwhether or not watercan, or should,be treatetlas aneconomic commodity, and discussesthe ways in which wateris the sameas, or differentthan, other commodities from aneconomic point of view. While thereare somedistinctive emotive and symbolic featuresof water,there are also somedistinctive economicfeatures that makethe demandand supplyof water different and more complexthan that of most othergoods. Keywords: Economics,value ofwate!; water demand,water supply,water cost,pricing, allocation INTRODUCTION There is a widespread perception among water professionals today of a crisis in water resources management. Water resources are poorly managed in many parts of the world, and many people -especially the poor, especially those living in rural areasand in developing countries- lack access to adequate water supply and sanitation. Moreover, this is not a new problem - it has been recognized for a long time, yet the efforts to solve it over the past three or four decadeshave been disappointing, accomplishing far less than had been expected. In addition, in some circles there is a feeling that economics may be part of the problem. There is a sense that economic concepts are inadequate to the task at hand, a feeling that water has value in ways that economics fails to account for, and a concern that this could impede the formulation of effective approaches for solving the water crisis.
    [Show full text]
  • Gross Domestic Product 1
    GROSS DOMESTIC PRODUCT 1. The three types of unemployment are ______, _______, and ______. 2. If Frank just moved to town and is looking for a job, he would be considered part of ___________ unemployment. 3. If Lisa was laid off from her job due to an increase in the cost of steel, she would be considered part of ____________ unemployment. 4. If Mona was fired as a clerk because the company is switching to automated check-out machines, she would be considered part of ____________ unemployment. 5. The ___________ Movement in 2011 was in response to increasing income inequality 6. The wealthiest 1% of the population own ___ of the wealth of the country. 7. The middle class is important because ___________. 8. The three ways that the U.S. has responded to stagnant wages are ________, _________, and ________. Remember how we are looking at this unit… Challenges Measures Intervention Unemployment GDP Monetary Policy Income Distribution Inflation & CPI Fiscal Policy The Business Cycle GROSS DOMESTIC PRODUCT GDP The total value of all final goods and services produced annually in a country Usually this is calculated by adding up total expenditures for final goods and services The most common measure of an economy’s health, growth, productivity HOW TO CALCULATE GDP Suppose a tiny country only produced 3 goods: Cars: $20,000 each Computers: $2,000 each Books: $200 each To find the GDP, we would multiply the price by the amount of each good produced Cars: 10 sold x $20,000 =$200,000 Computers: 5 sold x $2,000= $10,000 Books: 7 sold x $200
    [Show full text]
  • 1 Non-Rival Productive Inputs
    1 Non-rival productive inputs. Consider a general production technology: Y = Y (A ; K ; L ) t t t t (1) K L A We conventionally label t as “capital”, t as labor and t as an index of technical knowledge. I will now try to be more fundamental, and single out a classi…cation of the productive inputs which is not based on some statistical aggregate, but, rather, on some economic properties which are relevant for the problems which we study in the theory of growth. Let us recall some basic notions of public economics. Private good RIVAL + EXCLUDABLE ² ´ Public (collective) good NON-RIVAL + NON-EXCLUDABLE ² ´ EXCLUDABILITY - problem of property rights. A good is perfectly ² excludable when the holder can withhold the bene…ts associated with the commodity from others without incurring signi…cant costs (an ex- ample of non excludable good is …sh in a certain segment of the ocean). RIVALROUSNESS - A good is rival in nature when the use of that ² good by one agent preclude the simultaneous use of the same good by other agents. An example of non-rival good is radio broadcast. Let me add a notion which is relevant in growth theory. REPRODUCIBILITY - An input is reproducible in nature if it can ² be accumulated in time by (directly or indirectly) foregoing present consumption. The stock of land is the most obvious example of non- reproducible factor. However, also goods which are accumulated ac- cording to some exogenous (e.g. demographic) dynamics enter this group. 1 K L In general, t is a reproducible, private input, while t is a non-reproducible private input.
    [Show full text]
  • GDP and Beyond
    GDP and beyond Adolfo Morrone Italian National Institute of Statistics (Istat) Head of Measures of well-being unit (Bes/Urbes) [email protected] Module content 1. Quick introduction on GDP 2. Shortcomings of GDP as indicator of well-being 3. Alternative approaches a. Historical background b. Recent perspectives 4. The Stiglitz-Sen-Fitoussi report a. Classical Gdp issues b. Quality of life 5. International experiences Definition of GDP 1. Quick introduction on GDP GDP (Gross Domestic Product) is the market value of all final goods and services produced in a country in a given time period. This definition has four parts: – Market value – Final goods and services – Produced within a country – In a given time period Definition of GDP 1. Quick introduction on GDP Market value GDP is a market value—goods and services are valued at their market prices. To add apples and oranges, computers and popcorn, we add the market values so we have a total value of output in euro/dollars. Definition of GDP 1. Quick introduction on GDP Final goods and services GDP is the value of the final goods and services produced. A final good (or service) is an item bought by its final user during a specified time period. A final good contrasts with an intermediate good, which is an item that is produced by one firm, bought by another firm, and used as a component of a final good or service. Excluding intermediate goods and services avoids double counting. Definition of GDP 1. Quick introduction on GDP Produced within a country GDP measures production within a country.
    [Show full text]
  • Trade in Intermediate Goods and the Division of Labour
    Trade in intermediate goods and the division of labour Kwok Tong Sooa Lancaster University October 2013 Abstract This paper develops a model of international trade based on comparative advantage and the division of labour. Comparative advantage in intermediate goods determines the extent of the division of labour, while the division of labour and comparative advantage in final goods lead to gains from trade. Labour is used to produce traded intermediate inputs which are used in the production of traded final goods; therefore trade is both inter- and intra-industry in nature. Large countries export a smaller share of final goods and a larger share of intermediate goods than small countries. These predictions find supportive evidence in the data. JEL Classification: F11. Keywords: Division of labour; Comparative advantage; gains from trade; intermediate goods trade. a Department of Economics, Lancaster University Management School, Lancaster LA1 4YX, United Kingdom. Tel: +44(0)1524 594418. Email: [email protected] 1 1 Introduction The third paragraph of the first chapter of Adam Smith’s The Wealth of Nations (Smith, 1776) contains the famous passage in which he describes the impact of the division of labour on productivity in a pin factory. To paraphrase Smith, one worker, working on his own, could produce at most 20 pins in a day. Ten workers, dividing up the tasks of producing pins, could produce 48,000 pins in a day. Hence, the gain to this group of workers from the division of labour in this example is 24,000%. One implication of this is that international trade, by enabling greater levels of specialisation, should result in productivity gains.
    [Show full text]
  • Economic Policy and the Common Good 7 Feb 2018
    Economic Policy and the Common Good Rowena A Pecchenino* Department of Economics, Finance & Accounting Maynooth University National University of Ireland, Maynooth County Kildare Ireland Email: [email protected] Phone: 353 1 708-3751 February 2018 Abstract All conceptions of the common good agree: for the individual to flourish, society must flourish, and for society to flourish the individual must flourish. But what is this common good that is essential for flourishing and how does the pursuit of this good shape the individual and society? This paper presents various conceptions of the common good, asks what a society must provide to enable its citizens individually and collectively to flourish, examines an actual society from this perspective, finds it wanting and critiques economic policy from a common good perspective to establish where and why it falls short. The paper concludes with a discussion of how economic policy can be designed to support individual and societal flourishing, that is, the common good. Keywords: common good, flourishing, economic policy, society, individual JEL Code: B40, B41 Word Count: 8539 * I would like to thank the participants of the 2017 WIT/UCC Economy and Society Summer School, Mark Boyle, Fabio Mendez and Kenneth Stikkers for their comments on a longer version of this paper. All remaining errors and misinterpretations are mine alone. Economic Policy and the Common Good 1. Introduction Philosophers for millennia have suggested that for the individual to flourish, society must flourish, and for society to flourish, the individual must flourish. In the past century or so economic analysis has concentrated instead on the individual.
    [Show full text]
  • Assessment of Family Strengths and Needs
    Assessment of Family Strengths and Needs An excerpt from the Early Start Service Coordination Handbook Developed for the California Department of Developmental Services by WestEd Center for Prevention & Early Intervention Assessment of Family Strengths and Needs, an excerpt from the Early Start Service Coordination Handbook, was developed for the California Department of Developmental Services (DDS), the lead agency for Part C of the Individuals with Disabilities Education Act, by WestEd Center for Prevention & Early Intervention (CPEI) in collaboration with the California Interagency Coordinating Council on Early Intervention. Development and production were facilitated through DDS’ Early Start Comprehensive System for Personnel Development and Resources contract with WestEd CPEI. This document is available in PDF format on the DDS website at http://www.dds.ca.gov/earlystart and on the California Early Start website at http://www.ceitan-earlystart.org. For more information about California Early Start contact DDS at 800-515-BABY, visit our website at http://www.dds.ca.gov/earlystart, or e-mail [email protected]. Please cite this document as WestEd Center for Prevention & Early Intervention. 2014. Assessment of Family Strengths and Needs, from the Early Start Service Coordination Handbook. San Francisco: WestEd. Production Team California Department of Developmental Services, Early Start Section Patric Widmann, Lead Expert Elise Parnes, Advisor Ashley Franklin Ramirez, Reviewer WestEd Center for Prevention & Early Intervention Jayanthi Kasiraj, Project Lead (former) Angela McGuire, Advisor Carolyn Walker, Project Lead Ross Adams, Lead Writer Kristine Pilkington, Writer Sandra Suitor, Writer Advisors Virginia Reynolds, WestEd Center for Prevention & Early Intervention, Early Start Comprehensive System of Personnel Development State Interagency Coordinating Council on Early Intervention ©2014 WestEd.
    [Show full text]
  • Consumer Response to Versioning: How Brands Production Methods Affect Perceptions of Unfairness
    Consumer Response to Versioning: How Brands’ Production Methods Affect Perceptions of Unfairness ANDREW D. GERSHOFF RAN KIVETZ ANAT KEINAN Marketers often extend product lines by offering limited-capability models that are created by removing or degrading features in existing models. This production method, called versioning, has been lauded because of its ability to increase both consumer and firm welfare. According to rational utility models, consumers weigh benefits relative to their costs in evaluating a product. So the production method should not be relevant. Anecdotal evidence suggests otherwise. Six studies show how the production method of versioning may be perceived as unfair and unethical and lead to decreased purchase intentions for the brand. Building on prior work in fairness, the studies show that this effect is driven by violations of norms and the perceived similarity between the inferior, degraded version of a product and the full-featured model offered by the brand. The idea of Apple gratuitously removing fea- been recommended by economists as a production method tures that would have been actually easier to that benefits both firms and consumers (Deneckere and leave in is downright perplexing. McAfee 1996; Hahn 2006; Varian 2000). Firms benefit by reducing design and production costs and by increasing profits The intentional software crippling stance they have taken with the iPod Touch is disturbing through price discrimination when multiple configurations of at best. (Readers’ responses to iPod Touch re- a product are offered. Consumers benefit because versioning view on www.engadget.com) results in lower prices and makes it possible for many to gain access to products that they might otherwise not be able to afford (Shapiro and Varian 1998; Varian 2000).
    [Show full text]
  • The Public/Private Divide in Higher Education: a Global Revision1
    Higher Education (2007) 53: 307–333 Ó 2007 Springer Science+Business Media B.V. DOI 10.1007/s10734-005-8230-y The public/private divide in higher education: A global revision1 SIMON MARGINSON Monash Centre for Research in International Education, Faculty of Education, Monash University, Victoria 3800, Australia (Phone: +613-99052834; Fax: 613-99059197; E-mail: [email protected]) Abstract. Our common understandings of the public/private distinction in higher education are drawn from neo-classical economics and/or statist political philosophy. However, the development of competition and markets at the national level, and the new potentials for private and public goods created by globalisation in higher educa- tion, have exposed weaknesses in the traditional notions of public/private. For example, (1) the statist notion that higher education is always/already a public good blinds us to its role in producing scarce positional private goods, even in free systems; (2) because there is no global state, both statists and neo-liberals model the global higher education environment simply as a trading environment without grasping the potential for global public goods in education – goods that are subject to non-rivalry or non-excludability, and broadly available across populations, on a global scale. Yet higher education in one nation has the potential to create positive and negative externalities in another; and all higher education systems and institutions can benefit from collective systems e.g. that facilitate cross-border recognition and mobility. The paper sets out to revise public/ private in higher education. Rather than defining public/private in terms of legal ownership, it focuses on the social character of the goods.
    [Show full text]
  • GDP As a Measure of Economic Well-Being
    Hutchins Center Working Paper #43 August 2018 GDP as a Measure of Economic Well-being Karen Dynan Harvard University Peterson Institute for International Economics Louise Sheiner Hutchins Center on Fiscal and Monetary Policy, The Brookings Institution The authors thank Katharine Abraham, Ana Aizcorbe, Martin Baily, Barry Bosworth, David Byrne, Richard Cooper, Carol Corrado, Diane Coyle, Abe Dunn, Marty Feldstein, Martin Fleming, Ted Gayer, Greg Ip, Billy Jack, Ben Jones, Chad Jones, Dale Jorgenson, Greg Mankiw, Dylan Rassier, Marshall Reinsdorf, Matthew Shapiro, Dan Sichel, Jim Stock, Hal Varian, David Wessel, Cliff Winston, and participants at the Hutchins Center authors’ conference for helpful comments and discussion. They are grateful to Sage Belz, Michael Ng, and Finn Schuele for excellent research assistance. The authors did not receive financial support from any firm or person with a financial or political interest in this article. Neither is currently an officer, director, or board member of any organization with an interest in this article. ________________________________________________________________________ THIS PAPER IS ONLINE AT https://www.brookings.edu/research/gdp-as-a- measure-of-economic-well-being ABSTRACT The sense that recent technological advances have yielded considerable benefits for everyday life, as well as disappointment over measured productivity and output growth in recent years, have spurred widespread concerns about whether our statistical systems are capturing these improvements (see, for example, Feldstein, 2017). While concerns about measurement are not at all new to the statistical community, more people are now entering the discussion and more economists are looking to do research that can help support the statistical agencies. While this new attention is welcome, economists and others who engage in this conversation do not always start on the same page.
    [Show full text]
  • THE CATHOLIC UNIVERSITY of AMERICA “No Greater Love
    THE CATHOLIC UNIVERSITY OF AMERICA “No Greater Love”: Friendship as a Soteriological Theme in the Thought of Thomas Aquinas and Bernard Lonergan. A DISSERTATION Submitted to the Faculty of the School of Theology and Religious Studies Of The Catholic University of America In Partial Fulfillment of the Requirements For the Degree Doctor of Philosophy By Mary Grace DeBroeck Washington, D.C. 2019 “No Greater Love”: Friendship as a Soteriological Theme in the Thought of Thomas Aquinas and Bernard Lonergan. Mary G. DeBroeck, Ph.D. Director: William Loewe, Ph.D. Friendship has been a recurrent theme in the history of Christian thought, used most readily to characterize the individual’s, as well as the Church’s, relationship with Christ. In the 13th century, St. Thomas’s contribution is notable for incorporating into his work on the life of grace Aristotle’s philosophy of friendship. More recently, Bernard Lonergan, S.J., 1904-1984, a student of the thought of St. Thomas, has brought Thomas’s understanding of friendship into his own work on the life of grace. In addition to the context of grace, the notion of friendship has also functioned in a soteriological context for both Lonergan and Thomas. This dissertation offers an in-depth study of the notion of friendship within the soteriology of both Thomas and Lonergan; and, through their comparison, it demonstrates how Lonergan develops Thomas’s thought on the soteriological significance of friendship in his formulation of the Law of the Cross. The first two chapters focus on the theological understanding of friendship found in the work of Thomas, first by presenting Thomas’s understanding of friendship, his use of Aristotle, and how he identifies charity as “a certain kind of friendship” in the life of grace.
    [Show full text]