Rationing in Centrally Planned Economies
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Information Technology and the U.S. Economy Author(S): Dale W
American Economic Association Information Technology and the U.S. Economy Author(s): Dale W. Jorgenson Source: The American Economic Review, Vol. 91, No. 1 (Mar., 2001), pp. 1-32 Published by: American Economic Association Stable URL: http://www.jstor.org/stable/2677896 Accessed: 21/01/2009 13:47 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/action/showPublisher?publisherCode=aea. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit organization founded in 1995 to build trusted digital archives for scholarship. We work with the scholarly community to preserve their work and the materials they rely upon, and to build a common research platform that promotes the discovery and use of these resources. For more information about JSTOR, please contact [email protected]. American Economic Association is collaborating with JSTOR to digitize, preserve and extend access to The American Economic Review. http://www.jstor.org Number 102 of a series of photographsof past presidents of the Association U InformationTechnology and the U.S. -
Secular Stagnation in Historical Perspective
Secular stagnation in historical perspective Roger E. Backhouse and Mauro Boianovsky The re‐discovery of secular stagnation Negative Wicksellian natural rate of interest –savings exceed investment at all non‐negative interest rates Inequality and growth Idea that excessively unequal distribution of income can hold back demand and cause stagnation Thomas Piketty and rising inequality as a structural feature of capitalism Looking back into history Stagnation theories have a long history going back at least 200 years Inequality and aggregate demand ‐ developed by J. A. Hobson around 1900 “Secular stagnation” ‐ Rediscovery of idea proposed in Alvin Hansen’s “Economic progress and declining population growth” AEA Presidential Address, 1938 Mentions of secular stagnation in JSTOR xxx J. A. Hobson 1873‐96 “Great Depression” in Britain 1889 Hobson and Mummery The Physiology of Industry underconsumption due to over‐ investment in capital uses idea of the accelerator (not the name) 1909 Hobson The Industrial System link to unequal distribution of income and “unproductive surplus” explanation of capital exports 6 J. A. Hobson Hobsonian ideas widespread in USA in the Great Depression Failure of capitalism due to the growth of monopoly power Concentration of economic power disrupting commodity markets and the “financial machine” 7 Alvin Hansen Institutionalist (price structures) Business cycle theory drawing on Spiethoff, Aftalion, JM Clark and Wicksell In 1937, Keynes’s article on population made Hansen realise that Keynes’s multiplier could be fitted -
New Deal Policies and the Persistence of the Great Depression: a General Equilibrium Analysis
Federal Reserve Bank of Minneapolis Research Department New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis Harold L. Cole and Lee E. Ohanian∗ Working Paper 597 Revised May 2001 ABSTRACT There are two striking aspects of the recovery from the Great Depression in the United States: the recovery was very weak and real wages in several sectors rose significantly above trend. These data contrast sharply with neoclassical theory, which predicts a strong recovery with low real wages. We evaluate the contribution of New Deal cartelization policies designed to limit competition and increase labor bargaining power to the persistence of the Depression. We develop a model of the bargaining process between labor and firms that occurred with these policies, and embed that model within a multi-sector dynamic general equilibrium model. We find that New Deal cartelization policies are an important factor in accounting for the post-1933 Depression. We also find that the key depressing element of New Deal policies was not collusion per se, but rather the link between paying high wages and collusion. ∗Both, U.C.L.A. and Federal Reserve Bank of Minneapolis. We thank Andrew Atkeson, Tom Holmes, Narayana Kocherlakota, Tom Sargent, Nancy Stokey, seminar participants, and in particular, Ed Prescott for comments. Ohanian thanks the Sloan Foundation and the National Science Foundation for support. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System. 1. Introduction There are two striking aspects of the recovery from the Great Depression in the United States. -
The Fallacy of Asset-Based Adjustments to Profits
Transfer Pricing Report 5/12/11 1:50 PM Tax Management Transfer Pricing Report™ Source: Transfer Pricing Report: News Archive > 2003 > 12/10/2003 > Analysis > The Fallacy of Asset-Based Adjustments to Profits 12 Transfer Pricing Report 703 The Fallacy of Asset-Based Adjustments to Profits By Ednaldo Silva* *Ednaldo Silva, Ph.D., leads the transfer pricing practice at FTI Consulting in Washington, D.C. He also developed the RoyaltyStat and EdgarStat databases, and helped draft the Section 482 regulations. The views expressed in this article are those of the author alone. The Section 482 regulations state that if “material differences” exist between controlled and uncontrolled transactions, adjustments must be made if the effect of such differences on prices or profits can be ascertained with sufficient accuracy to improve the reliability of the results. The provision for such adjustments in Regs. §1.482-1(d)(2)—and in Examples 5 and 6 of the comparable profits method provisions at Regs. §1.482-5(e)—has launched a widespread practice of performing adjustments to reflect the “imputed interest” of current assets among selected comparables and the tested party. In the rush to quantify asset adjustments, the theoretical foundation for those adjustments has been ignored. 1 These asset adjustments have been applied to working capital (in transfer pricing, working capital equals accounts receivable plus inventories minus accounts payable) and separately to balance sheet items classified in accounts receivable, inventories, and accounts payable. The CPM examples, which describe asset adjustments to accounts receivable for outbound transactions and accounts payable for inbound transactions, have been used to justify deus ex machina adjustments. -
Evsey Domar and Russia
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Boianovsky, Mauro Working Paper Evsey Domar and Russia CHOPE Working Paper, No. 2021-08 Provided in Cooperation with: Center for the History of Political Economy at Duke University Suggested Citation: Boianovsky, Mauro (2021) : Evsey Domar and Russia, CHOPE Working Paper, No. 2021-08, Duke University, Center for the History of Political Economy (CHOPE), Durham, NC, http://dx.doi.org/10.2139/ssrn.3849410 This Version is available at: http://hdl.handle.net/10419/234319 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Evsey Domar and Russia Mauro Boianovsky CHOPE Working Paper No. 2021-08 May 2021 1 Evsey Domar and Russia Mauro Boianovsky (Universidade de Brasilia) [email protected] First preliminary version (May 2021) Abstract. -
The Theory of Allocation and Its Implications for Marketing and Industrial Structure
NBER WORKING PAPERS SERIES THE THEORY OF ALLOCATION AND ITS IMPLICATIONS FOR MARKETING AND INDUSTRIAL STRUCTURE Dennis W. Canton Working Paper No. 3786 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 July 1991 I thank NSF and the program in Law and Economics at the University of Chicago for financial assistance. I also thank K. Crocker, E. Lazear, S. Peltzman, A. Shleifer, G. Stigler, and participants at seminars at the Department of Justice, MIT, NBER, Northwestern, Pennsylvania State, Princeton, University of Chicago and University of Florida. This paper is part of NBER's research programs in Economic Fluctuations and Industrial Organization. Any opinions expressed are those of the author and not those of the National Bureau of Economic Research. NBER Working Paper #3786 July 1991 THE THEORY OF ALLOCATION AND ITS IMPLICATIONS FOR MARKETING AND INDUSTRIAL STRUCTURE ABSTRACT This paper identifies a cost of using the price system and from that develops a general theory of allocation. The theory explains why a buyer's stochastic purchasing behavior matters to a seller. This leads to a theory of optimal customer mix much akin to the theory of optimal portfolio composition. It is the ob of a firm's marketing department to put together this optimal customer mix. A dynamic pattern of pricing related to Ramsey pricing emerges as the efficient pricing structure. Price no longer equals marginal cost and is no longer the sole mechanism used to allocate goods. It is optimal for long term relationships to emerge between buyers and sellers and for sellers to use their knowledge about buyers to ration goods during periods when demand is high. -
Some Skeptical Observations on Real Business Cycle Theory (P
Federal Reserve Bank of Minneapolis Modern Business Cycle Analysis: A Guide to the Prescott-Summers Debate (p. 3) Rodolfo E. Manuelli Theory Ahead of Business Cycle Measurement (p. 9) Edward C. Prescott Some Skeptical Observations on Real Business Cycle Theory (p. 23) Lawrence H. Summers Response to a Skeptic (p. 28) Edward C. Prescott Federal Reserve Bank of Minneapolis Quarterly Review Vol. 10, NO. 4 ISSN 0271-5287 This publication primarily presents economic research aimed at improving policymaking by the Federal Reserve System and other governmental authorities. Produced in the Research Department. Edited by Preston J. Miller and Kathleen S. Rolte. Graphic design by Phil Swenson and typesetting by Barb Cahlander and Terri Desormey, Graphic Services Department. Address questions to the Research Department, Federal Reserve Bank, Minneapolis, Minnesota 55480 (telephone 612-340-2341). Articles may be reprinted it the source is credited and the Research Department is provided with copies of reprints. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System. Federal Reserve Bank of Minneapolis Quarterly Review Fall 1986 Some Skeptical Observations on Real Business Cycle Theory* Lawrence H. Summers Professor of Economics Harvard University and Research Associate National Bureau of Economic Research The increasing ascendancy of real business cycle business cycle theory and to consider its prospects as a theories of various stripes, with their common view that foundation for macroeconomic analysis. Prescott's pa- the economy is best modeled as a floating Walrasian per is brilliant in highlighting the appeal of real business equilibrium, buffeted by productivity shocks, is indica- cycle theories and making clear the assumptions they tive of the depths of the divisions separating academic require. -
Money and Banking in a New Keynesian Model∗
Money and banking in a New Keynesian model∗ Monika Piazzesi Ciaran Rogers Martin Schneider Stanford & NBER Stanford Stanford & NBER March 2019 Abstract This paper studies a New Keynesian model with a banking system. As in the data, the policy instrument of the central bank is held by banks to back inside money and therefore earns a convenience yield. While interest rate policy is less powerful than in the standard model, policy rules that do not respond aggressively to inflation – such as an interest rate peg – do not lead to self-fulfilling fluctuations. Interest rate policy is stronger (and closer to the standard model) when the central bank operates a corridor system as opposed to a floor system. It is weaker when there are more nominal rigidities in banks’ balance sheets and when banks have more market power. ∗Email addresses: [email protected], [email protected], [email protected]. We thank seminar and conference participants at the Bank of Canada, Kellogg, Lausanne, NYU, Princeton, UC Santa Cruz, the RBNZ Macro-Finance Conference and the NBER SI Impulse and Propagations meeting for helpful comments and suggestions. 1 1 Introduction Models of monetary policy typically assume that the central bank sets the short nominal inter- est rate earned by households. In the presence of nominal rigidities, the central bank then has a powerful lever to affect intertemporal decisions such as savings and investment. In practice, however, central banks target interest rates on short safe bonds that are predominantly held by intermediaries.1 At the same time, the behavior of such interest rates is not well accounted for by asset pricing models that fit expected returns on other assets such as long terms bonds or stocks: this "short rate disconnect" has been attributed to a convenience yield on short safe bonds.2 This paper studies a New Keynesian model with a banking system that is consistent with key facts on holdings and pricing of policy instruments. -
Massachusetts Institute of Technology Department of Economics Working Paper Series
Massachusetts Institute of Technology Department of Economics Working Paper Series The Rise and Fall of Economic History at MIT Peter Temin Working Paper 13-11 June 5, 2013 Rev: December 9, 2013 Room E52-251 50 Memorial Drive Cambridge, MA 02142 This paper can be downloaded without charge from the Social Science Research Network Paper Collection at http://ssrn.com/abstract=2274908 The Rise and Fall of Economic History at MIT Peter Temin MIT Abstract This paper recalls the unity of economics and history at MIT before the Second World War, and their divergence thereafter. Economic history at MIT reached its peak in the 1970s with three teachers of the subject to graduates and undergraduates alike. It declined until economic history vanished both from the faculty and the graduate program around 2010. The cost of this decline to current education and scholarship is suggested at the end of the narrative. Key words: economic history, MIT economics, Kindleberger, Domar, Costa, Acemoglu JEL codes: B250, N12 Author contact: [email protected] 1 The Rise and Fall of Economic History at MIT Peter Temin This paper tells the story of economic history at MIT during the twentieth century, even though roughly half the century precedes the formation of the MIT Economics Department. Economic history was central in the development of economics at the start of the century, but it lost its primary position rapidly after the Second World War, disappearing entirely a decade after the end of the twentieth century. I taught economic history to MIT graduate students in economics for 45 years during this long decline, and my account consequently contains an autobiographical bias. -
Paul Samuelson's Ways to Macroeconomic Dynamics
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Boianovsky, Mauro Working Paper Paul Samuelson's ways to macroeconomic dynamics CHOPE Working Paper, No. 2019-08 Provided in Cooperation with: Center for the History of Political Economy at Duke University Suggested Citation: Boianovsky, Mauro (2019) : Paul Samuelson's ways to macroeconomic dynamics, CHOPE Working Paper, No. 2019-08, Duke University, Center for the History of Political Economy (CHOPE), Durham, NC This Version is available at: http://hdl.handle.net/10419/196831 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Paul Samuelson’s Ways to Macroeconomic Dynamics by Mauro Boianovsky CHOPE Working Paper No. 2019-08 May 2019 Electronic copy available at: https://ssrn.com/abstract=3386201 1 Paul Samuelson’s ways to macroeconomic dynamics Mauro Boianovsky (Universidade de Brasilia) [email protected] First preliminary draft. -
Efficiency Wage Theories: a Partial Evaluation
NBER WORKING PAPER SERIES EFFICIENCY WAGE THEORIES: A PARTIAL EVALUATION Lawrence F. Katz Working Paper No. 1906 NATIONAL BUREAU OF ECONOMIC RESEARCH 1060 Massachusetts Avenue Cambridge, MA 02138 April 1986 This is a revised version of a paper presented at the NBER Conference on Macroeconomics held in Cambridge, Massachusetts on March 7 and 8, 1986. 1 am indebted to William Dickens for numerous discussions and for comments on previous drafts of this paper; a significant part of this paper grew out of our joint work. I thank George Akerlof, Joe Altonji, Stan Fischer, Kevin Lang, Lawrence Summers, Janet Yellen, and the conference participants for helpful comments. I am grateful to Phil Bokovoy and Elizabeth Bishop for expert research assistance. The Institute of Industrial Relations at U.C. Berkeley provided research support. All remaining errors are my own. The research reported here is part of the NBER's research program -in Labor Studies. Any opinions expressed are those of the author and not those of the National Bureau of Economic Research. NBER Working Paper #1906 April 1986 Efficiency Wage Theories: A Partial Evaluation ABSTRACT This paper surveys recent developments in the literature on efficiency wage theories of unemployment. Efficiency wage models have in common the property that in equilibrium firms may find it profitable to pay wages in excess of market clearing. High wages can help reduce turnover, elicit worker effort, prevent worker collective action, and attract higher quality employees. Simple versions of efficiency wage models can explain normal involuntary unemployment, segmented labor markets, and wage differentials across firms and industries for workers with similar productive characteristics. -
1 the Nobel Prize in Economics Turns 50 Allen R. Sanderson1 and John
The Nobel Prize in Economics Turns 50 Allen R. Sanderson1 and John J. Siegfried2 Abstract The first Sveriges Riksbank Prizes in Economic Sciences in Memory of Alfred Nobel, were awarded in 1969, 50 years ago. In this essay we provide the historical origins of this sixth “Nobel” field, background information on the recipients, their nationalities, educational backgrounds, institutional affiliations, and collaborations with their esteemed colleagues. We describe the contributions of a sample of laureates to economics and the social and political world around them. We also address – and speculate – on both some of their could-have-been contemporaries who were not chosen, as well as directions the field of economics and its practitioners are possibly headed in the years ahead, and thus where future laureates may be found. JEL Codes: A1, B3 1 University of Chicago, Chicago, IL, USA 2Vanderbilt University, Nashville, TN, USA Corresponding Author: Allen Sanderson, Department of Economics, University of Chicago, 1126 East 59th Street, Chicago, IL 60637, USA Email: [email protected] 1 Introduction: The 1895 will of Swedish scientist Alfred Nobel specified that his estate be used to create annual awards in five categories – physics, chemistry, physiology or medicine, literature, and peace – to recognize individuals whose contributions have conferred “the greatest benefit on mankind.” Nobel Prizes in these five fields were first awarded in 1901.1 In 1968, Sweden’s central bank, to celebrate its 300th anniversary and also to champion its independence from the Swedish government and tout the scientific nature of its work, made a donation to the Nobel Foundation to establish a sixth Prize, the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.2 The first “economics Nobel” Prizes, selected by the Royal Swedish Academy of Sciences were awarded in 1969 (to Ragnar Frisch and Jan Tinbergen, from Norway and the Netherlands, respectively).