Consumption in Ecological Economics
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Journal of Econometrics Consumption and Labor Supply
Journal of Econometrics 147 (2008) 326–335 Contents lists available at ScienceDirect Journal of Econometrics journal homepage: www.elsevier.com/locate/jeconom Consumption and labor supply Dale W. Jorgenson a,∗, Daniel T. Slesnick b a Department of Economics, Harvard University, Cambridge, MA 02138, United States b Department of Economics, University of Texas, Austin, TX 78712, United States article info a b s t r a c t Article history: We present a new econometric model of aggregate demand and labor supply for the United States. Available online 16 September 2008 We also analyze the allocation full wealth among time periods for households distinguished by a variety of demographic characteristics. The model is estimated using micro-level data from the Consumer JEL classification: Expenditure Surveys supplemented with price information obtained from the Consumer Price Index. An C81 important feature of our approach is that aggregate demands and labor supply can be represented in D12 D91 closed form while accounting for the substantial heterogeneity in behavior that is found in household- level data. As a result, we are able to explain the patterns of aggregate demand and labor supply in the Keywords: data despite using a parametrically parsimonious specification. Consumption ' 2008 Elsevier B.V. All rights reserved. Leisure Labor Demand Supply Wages 1. Introduction employed, we impute the opportunity wages they face using the wages earned by employees. The objective of this paper is to present a new econometric Cross-sectional variation of prices and wages is considerable model of aggregate consumer behavior for the United States. The and provides an important source of information about patterns model allocates full wealth among time periods for households of consumption and labor supply. -
The Ecological Economics of Boulding's Spaceship Earth
Institut für Regional- und Umweltwirtschaft Institute for the Environment and Regional Development Clive L. Spash The Ecological Economics of Boulding's Spaceship Earth SRE-Discussion 2013/02 2013 The Ecological Economics of Boulding’s Spaceship Earth1 Clive L. Spash Abstract The work of Kenneth Boulding is sometimes cited as being foundational to the understanding of how the economy interacts with the environment and particularly of relevance to ecological economists. The main reference made in this regard is to his seminal essay using the metaphor of planet Earth as a spaceship. In this paper that essay and related work is placed both within historical context of the environmental movement and developments in the thought on environment-economy interactions. The writing by Boulding in this area is critically reviewed and discussed in relationship to the work of his contemporaries, also regarded as important for the ecological economics community, such as Georegescu-Roegen, Herman Daly and K. William Kapp. This brings out the facts that Boulding did not pursue his environmental concerns, wrote little on the subject, had a techno-optimist tendency, disagreed with his contemporaries and preferred to develop an evolutionary economics approach. Finally, a sketch is offered of how the ideas in the Spaceship Earth essay relate to current understanding within social ecological economics. The essay itself, while offering many thought provoking insights within the context of its time, also has flaws both of accuracy and omission. The issues of power, social justice, institutional and social relationships are ones absent, but also ones which Boulding, near the end of his life, finally recognised as key to addressing the growing environmental crises. -
What Role Does Consumer Sentiment Play in the U.S. Economy?
The economy is mired in recession. Consumer spending is weak, investment in plant and equipment is lethargic, and firms are hesitant to hire unemployed workers, given bleak forecasts of demand for final products. Monetary policy has lowered short-term interest rates and long rates have followed suit, but consumers and businesses resist borrowing. The condi- tions seem ripe for a recovery, but still the economy has not taken off as expected. What is the missing ingredient? Consumer confidence. Once the mood of consumers shifts toward the optimistic, shoppers will buy, firms will hire, and the engine of growth will rev up again. All eyes are on the widely publicized measures of consumer confidence (or consumer sentiment), waiting for the telltale uptick that will propel us into the longed-for expansion. Just as we appear to be headed for a "double-dipper," the mood swing occurs: the indexes of consumer confi- dence register 20-point increases, and the nation surges into a prolonged period of healthy growth. oes the U.S. economy really behave as this fictional account describes? Can a shift in sentiment drive the economy out of D recession and back into good health? Does a lack of consumer confidence drag the economy into recession? What causes large swings in consumer confidence? This article will try to answer these questions and to determine consumer confidence’s role in the workings of the U.S. economy. ]effre9 C. Fuhrer I. What Is Consumer Sentitnent? Senior Econotnist, Federal Reserve Consumer sentiment, or consumer confidence, is both an economic Bank of Boston. -
Demand Composition and the Strength of Recoveries†
Demand Composition and the Strength of Recoveriesy Martin Beraja Christian K. Wolf MIT & NBER MIT & NBER September 17, 2021 Abstract: We argue that recoveries from demand-driven recessions with ex- penditure cuts concentrated in services or non-durables will tend to be weaker than recoveries from recessions more biased towards durables. Intuitively, the smaller the bias towards more durable goods, the less the recovery is buffeted by pent-up demand. We show that, in a standard multi-sector business-cycle model, this prediction holds if and only if, following an aggregate demand shock to all categories of spending (e.g., a monetary shock), expenditure on more durable goods reverts back faster. This testable condition receives ample support in U.S. data. We then use (i) a semi-structural shift-share and (ii) a structural model to quantify this effect of varying demand composition on recovery dynamics, and find it to be large. We also discuss implications for optimal stabilization policy. Keywords: durables, services, demand recessions, pent-up demand, shift-share design, recov- ery dynamics, COVID-19. JEL codes: E32, E52 yEmail: [email protected] and [email protected]. We received helpful comments from George-Marios Angeletos, Gadi Barlevy, Florin Bilbiie, Ricardo Caballero, Lawrence Christiano, Martin Eichenbaum, Fran¸coisGourio, Basile Grassi, Erik Hurst, Greg Kaplan, Andrea Lanteri, Jennifer La'O, Alisdair McKay, Simon Mongey, Ernesto Pasten, Matt Rognlie, Alp Simsek, Ludwig Straub, Silvana Tenreyro, Nicholas Tra- chter, Gianluca Violante, Iv´anWerning, Johannes Wieland (our discussant), Tom Winberry, Nathan Zorzi and seminar participants at various venues, and we thank Isabel Di Tella for outstanding research assistance. -
Conceptualizing, Observing, and Influencing Social–Ecological Transitions
Copyright © 2009 by the author(s). Published here under license by the Resilience Alliance. Fischer-Kowalski, M., and J. Rotmans. 2009. Conceptualizing, observing, and influencing social– ecological transitions. Ecology and Society 14(2): 3. [online] URL: http://www.ecologyandsociety.org/ vol14/iss2/art3/ Synthesis Conceptualizing, Observing, and Influencing Social–Ecological Transitions Marina Fischer-Kowalski 1 and Jan Rotmans 2 ABSTRACT. This article creates a meeting ground between two distinct and fairly elaborate research traditions dealing with social “transitions”: the Dutch societal transitions management approach, and the Viennese sociometabolic transitions approach. Sharing a similar understanding of sustainability transitions —namely as major transformational changes of system characteristics—and a background epistemology of complex systems, autopoeisis, and evolutionary mechanisms, they address the subject from different angles: one approach asks how transformative changes happen and what they look like, and the other approach tries answer the question of how to bring them about. The Viennese approach is almost exclusively analytical and deals with a macro (“landscape”) level of human history with a time scale of decades to centuries; the Dutch approach is based on intervention experiences and deals with a shorter time frame (decades) of micro–meso–macro levels of industrial societies. From both their respective angles, they contribute to some of the key questions of sustainability research, namely: how can a transformative -
AP Macroeconomics: Vocabulary 1. Aggregate Spending (GDP)
AP Macroeconomics: Vocabulary 1. Aggregate Spending (GDP): The sum of all spending from four sectors of the economy. GDP = C+I+G+Xn 2. Aggregate Income (AI) :The sum of all income earned by suppliers of resources in the economy. AI=GDP 3. Nominal GDP: the value of current production at the current prices 4. Real GDP: the value of current production, but using prices from a fixed point in time 5. Base year: the year that serves as a reference point for constructing a price index and comparing real values over time. 6. Price index: a measure of the average level of prices in a market basket for a given year, when compared to the prices in a reference (or base) year. 7. Market Basket: a collection of goods and services used to represent what is consumed in the economy 8. GDP price deflator: the price index that measures the average price level of the goods and services that make up GDP. 9. Real rate of interest: the percentage increase in purchasing power that a borrower pays a lender. 10. Expected (anticipated) inflation: the inflation expected in a future time period. This expected inflation is added to the real interest rate to compensate for lost purchasing power. 11. Nominal rate of interest: the percentage increase in money that the borrower pays the lender and is equal to the real rate plus the expected inflation. 12. Business cycle: the periodic rise and fall (in four phases) of economic activity 13. Expansion: a period where real GDP is growing. 14. Peak: the top of a business cycle where an expansion has ended. -
Pergamon J\)Ll-:' 1:1-..C\JL'r Science Ltj
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Research Papers in Economics .lounw/ of lntcnwtiww/ Moucr and Finam 1'. Vol. 10. Nll. -L pp. 617 h5 1. Jlll>7 �Pergamon j\)ll-:' 1:1-..c\JL'r Science LtJ. All rt�hb ll''-L'I\l'J PII: PrintcU in Great H1 ita in S0261-5606(97)00007-7 02bl<;;6()6/ll7 S17 I)() 11.1)1) Dynamic analysis in the Viner model of mercantilism HENG-FU ZOU* Institute of Advanced Studies, Wuhan University, China and The World Bank, Washington, DC, USA This paper models the central theme of mercantilism in Jacob Viner's interpretation-power vs plenty-in a framework of modern theory of international finance. It is shown that, in the Viner model of mercantil ism, a nation with strong mercantilist sentiment ends up with large foreign asset accumulation and high consumption in the long run; an import tariff leads to more foreign asset holding and more total consump tion; furthermore, in the Viner model, the Harberger- Laursen-Metzler effect exists unambiguously: a permanent terms-of-trade deterioration causes a current account deficit in the short run. (JEL F1, F3, BO). © 1997 Elsevier Science Ltd. This paper offers a mathematical model of mercantilism according to the interpretation by Jacob Viner (1937, 1948, 1968, 1991) while including the interpretations of mercantilism by Schmoller (1897), Cunningham (1907, 1968), and Heckscher (1935, 1955) as special cases of the Viner model. Even though mercantilism has been examined, criticized, or even ridiculed since Adam Smith, only recently has a formal model of mercantilism been presented by Irwin (1991) in a framework of the strategic trade theory. -
Introduction to Macroeconomics TOPIC 2: the Goods Market
Introduction to Macroeconomics TOPIC 2: The Goods Market Anna¨ıgMorin CBS - Department of Economics August 2013 Introduction to Macroeconomics TOPIC 2: Goods market, IS curve Goods market Road map: 1. Demand for goods 1.1. Components 1.1.1. Consumption 1.1.2. Investment 1.1.3. Government spending 2. Equilibrium in the goods market 3. Changes of the equilibrium Introduction to Macroeconomics TOPIC 2: Goods market, IS curve 1.1. Demand for goods - Components What are the main component of the demand for domestically produced goods? Consumption C: all goods and services purchased by consumers Investment I: purchase of new capital goods by firms or households (machines, buildings, houses..) (6= financial investment) Government spending G: all goods and services purchased by federal, state and local governments Exports X: all goods and services purchased by foreign agents - Imports M: demand for foreign goods and services should be subtracted from the 3 first elements Introduction to Macroeconomics TOPIC 2: Goods market, IS curve 1.1. Demand for goods - Components Demand for goods = Z ≡ C + I + G + X − M This equation is an identity. We have this relation by definition. Introduction to Macroeconomics TOPIC 2: Goods market, IS curve 1.1. Demand for goods - Components Assumption 1: we are in closed economy: X=M=0 (we will relax it later on) Demand for goods = Z ≡ C + I + G Introduction to Macroeconomics TOPIC 2: Goods market, IS curve 1.1.1. Demand for goods - Consumption Consumption: Consumption increases with the disposable income YD = Y − T Reasonable assumption: C = c0 + c1YD the parameter c0 represents what people would consume if their disposable income were equal to zero. -
METHODS in CONSUMPTION ANALYSIS: CONSUMERTHEORY, ECONOMETRIC ISSUESI and PHILIPPINE ESTIMATES Ma. Agnes R Quisurnbing This Paper
CORE Metadata, citation and similar papers at core.ac.uk Provided by Research Papers in Economics NumberTwenty=Three,Volume XIII, 1986 METHODS IN CONSUMPTION ANALYSIS: CONSUMERTHEORY, ECONOMETRIC ISSUESI AND PHILIPPINE ESTIMATES Ma. Agnes R_Quisurnbing This paper on consumption analysis will be divided into four sections: (1) a review of consumer theory and demand systems; (2) econometric issues involved in using household level data; (3) a review of Philippine estimates; and (4) the use of these estimates in nutrition policy simulation. Most of the effort in consumption analysis in recent years has been directed to obtaining functional forms which allow sufficiently flexible response coefficients, as well as to estimatin 8 income-stratum-specific demand parameters which have been used to estimate distributional impacts of various intervention policies. 1 .1. Consumer Theory and Demand Systems Complete demand systems can be derived in two ways: (1) max- imizing a utility function subject to a budget constraint, or (2) apply- Assistant Professor of Economics, University of the Philippines at Los Bal'ios. Discussionswith Robert E. Evenson, Roberto Mariano and Basilia M. Regalado have been valuable in the writing of this paper. They are, of course, not responsible for whatever errors may remain. 1. Income-group-specific parameter estimation has been. proposed on the grounds that substantial differences in consumption behavior exist at different in- come levels, and that even when compensated for the income effects of the price changes, the pure substitution, or Slutsky, elasticities are likely to be greater for low income groups. This has led Timmer (1981) to suggest that an income-related "curvature" of the Slutsky matrix exists. -
Social Metabolism, Ecologically Unequal Exchange and Resource Extraction Conflicts in Latin America. Analytical Framework and Case Studies
Social metabolism, ecologically unequal exchange and resource extraction conflicts in Latin America. Analytical Framework and Case Studies Analytical Framework Report D.WP7 1 Deliverable WP7 1 – Analytical Framework Report Project Nº: 266710 Funding Scheme: Collaborative Project Objective: FP7‐SSH‐2010‐3 Status: Final version, 27/01/2012 Due date of delivery: 29/01/2012 Work Package: WP7 – Resource Extraction Conflicts Compared Leading Author: Mariana Walter and Joan Martinez Alier Co‐author(s): FP7 –SSH – 2010 – 3 GA 266710 Social metabolism, ecologically unequal exchange and resource extraction conflicts in Latin America. Analytical Framework and Case Studies Analytical Framework Report D.WP7.1 Table of Contents Summary & Key Words ........................................................................................................................... 3 Analytical Framework .............................................................................................................................. 4 Social Metabolism: A Biophysical Approach to the Economy ............................................................. 4 Material Flow Analysis ......................................................................................................................... 6 Ecologically Unequal Exchange ........................................................................................................... 7 Ecological distributive conflicts .......................................................................................................... -
Applied Microeconomics: Consumption, Production and Markets David L
University of Kentucky UKnowledge Agricultural Economics Textbook Gallery Agricultural Economics 6-2012 Applied Microeconomics: Consumption, Production and Markets David L. Debertin University of Kentucky, [email protected] Right click to open a feedback form in a new tab to let us know how this document benefits oy u. Follow this and additional works at: https://uknowledge.uky.edu/agecon_textbooks Part of the Agricultural Economics Commons Recommended Citation Debertin, David L., "Applied Microeconomics: Consumption, Production and Markets" (2012). Agricultural Economics Textbook Gallery. 3. https://uknowledge.uky.edu/agecon_textbooks/3 This Book is brought to you for free and open access by the Agricultural Economics at UKnowledge. It has been accepted for inclusion in Agricultural Economics Textbook Gallery by an authorized administrator of UKnowledge. For more information, please contact [email protected]. __________________________ Applied Microeconomics Consumption, Production and Markets David L. Debertin ___________________________________ Applied Microeconomics Consumption, Production and Markets This is a microeconomic theory book designed for upper-division undergraduate students in economics and agricultural economics. This is a free pdf download of the entire book. As the author, I own the copyright. Amazon markets bound print copies of the book at amazon.com at a nominal price for classroom use. The book can also be ordered through college bookstores using the following ISBN numbers: ISBN‐13: 978‐1475244342 ISBN-10: 1475244347 Basic introductory college courses in microeconomics and differential calculus are the assumed prerequisites. The last, tenth, chapter of the book reviews some mathematical principles basic to the other chapters. All of the chapters contain many numerical examples and graphs developed from the numerical examples. -
Social Metabolism, Ecological Distribution Conflicts, and Languages of Valuation
Capitalism Nature Socialism ISSN: 1045-5752 (Print) 1548-3290 (Online) Journal homepage: http://www.tandfonline.com/loi/rcns20 Social Metabolism, Ecological Distribution Conflicts, and Languages of Valuation Joan Martinez-Alier To cite this article: Joan Martinez-Alier (2009) Social Metabolism, Ecological Distribution Conflicts, and Languages of Valuation, Capitalism Nature Socialism, 20:1, 58-87, DOI: 10.1080/10455750902727378 To link to this article: http://dx.doi.org/10.1080/10455750902727378 Published online: 05 Mar 2009. Submit your article to this journal Article views: 1234 View related articles Citing articles: 51 View citing articles Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=rcns20 Download by: [UNAM Ciudad Universitaria] Date: 06 September 2017, At: 06:43 CAPITALISM NATURE SOCIALISM VOLUME 20 NUMBER 1(MARCH 2009) REAL ECONOMY Social Metabolism, Ecological Distribution Conflicts, and Languages of Valuation1 Joan Martinez-Alier The Environmentalism of the Poor in 2008 Thirty-five years after the start of the Chipko movement in 1973, twenty years after the death of Chico Mendes in December 1988 in Brazil as the victim of a ‘‘tragedy of enclosures,’’ thirteen years after the death of Ken Saro-Wiwa and his companions for defending the Niger Delta and its populations against the Shell company and the government of Nigeria, the debate on the ‘‘environmentalism of the poor’’ is growing.2 The environmental sociologist Riley Dunlap disputes the long-held assumption that the citizens of poor nations will not support efforts to protect the environment, since they are too preoccupied with meeting basic needs such as food and housing.