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Volume XVI, Summer, Issue 2(72), 2021
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The formal differentiation of (i) pain incentives from ordinary rewards, (ii) of effortful from careful production and (iii) of diligent from slothful workers under labor market imperfect competition ultimately suggests that the optimal menu of contracts associates inducements to production kinds following the preference triggered by slothful workers: effortful production with pain incentives and careful production with ordinary rewards. The efficiency of the efficiency wage as interpreted by the sociological theory is therefore discerned to arise under a particular production kind and so is that of slavery its dual (undoubtedly illicit). More broadly, the confusion of the two production kinds under market and state capitalism respectively contributes to the Phillips curve and price rigidity, in the misapplication of ordinary rewards to effortful production. State capitalism jurisprudentially eliminates the risks of dismissal and redundancy and thereby lastly causes effortful production to enter stagnation.
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The Covid-19 pandemic led to a loss of employment in many sectors of the economy around the world. This negatively affected the industry capacity of production of many countries. Linking the CO2 emissions to the production capacity, the total pollution is likely to decrease. We investigate this issue by designing a simple environmental model based on the partial equilibrium (PE). We test this theoretically and empirically using recent data on the total contamination for four regions and countries. Then, we link our model to the CGE model of Hosoe et al. (2010) to capture the impact on other sectors of the economy.
The final model PE-CGE is therefore designed through the household consumption demand channel. Broadly, our findings show that the environmental impact of the pandemic depends on the structure of the economy. While the USA, China and Sub-Saharan Africa reduce their CO2 emissions, that of the EU rather increases.
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This paper examines pandemic relief and development policies through the case study of South Africa during COVID-19 to create a broader understanding about problems facing developing countries during such crises. Specifically, it evaluates the strengths and limits of the government’s current policy approach.
Furthermore, it proposes a more socially relevant quantitatively derived package through a model based counterfactual policy experiment that can connect immediate relief with long-run development policies from a socially embedded capabilities perspective. The paper uses an intersectional approach and utilizes Social Accounting Matrix (SAM) to identify the production sectors that are not only the most impacted and are the most vulnerable, but also have room for maximal future development. It also makes a preliminary attempt to posit possible improvements in people’s well-being based on indigenous knowledge. Indigenous knowledge systems can be integrated with modified existing public health models. Our multi sectoral analysis highlights the importance of the indigenous knowledge base in evaluations of people’s well-being. Our study finds specific production activities such as agriculture, construction, land transport, mining, and real estate sectors to be labor-intensive and vital to the economy. With proper modifications, the methodology and framework used for South Africa will be applicable for other developing countries. This will help direct immediate resources strategically and efficiently to key areas of the developing economies for optimal development from a capability’s perspective.
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If preferences of households are heterogeneous, there is no guarantee that a steady state exists other than corner solutions, and only the most advantaged household will eventually possess all the capital in the economy. This is also true if economic rents are obtained persistently and unevenly among households. I examine whether this is true even if households behave not on the basis of rational expectations but on the basis of keeping the most comfortable capital-wage ratio and show that there is no guarantee in this case as well.
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The economic growth from the last period, created multiple opportunities both for the internal workers and for the foreign ones, because the workers from all EU Member States directly contribute to the functioning of the economy on high standards, by eliminating the lack of competence and the blockages specific for the workforce market from certain regions or European states. On the other hand, it is well known the fact that, the evolution of the economy and the economic crisis affected the employment by reducing the aggregate demand, and in this context, the economic policies both on a micro and on a macroeconomic level, the employment policies and the educational policies became especially important for all the directly and indirectly involved actors.
Therefore, we built several models starting from the five dependent variables and the five explanatory variables, that are: the estimate income growth after transfer, changing the qualification level after transfer, changing the labor conditions after transfer, the duration of the transfer abroad, the degree of satisfaction after the transfer abroad, the age, the gender, the level of the studies, the level of the incomes before transfer, the seniority in labor. This research is structured and published in two parts, the first part including an introduction, presenting the research methodology, results and discussions concerning the analysis of the variable change_income and the analysis of the variable qualification (Cojocaru T.M. et al. 2021); the second part results and discussions are related to the analysis of the variable labour_conditions, the analysis of the variable duration and the analysis of the variable satisfaction) and also relevant conclusions.
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The paper proposes a new approach for making global contracts, mainly based on the Coase-theorem. In particular, it is argued that combining several, normally unrelated issues to a bargaining bundle could facilitate Pareto-efficient contracts that benefit all, even including future generations. For this ends, a new institution called Global Protection Organization (GPO) is suggested that should be organized quite similar to the WTO, however with a much larger scope of competences. A formal model is used to demonstrate how this could work.
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The high degree of dollarization combined with low foreign exchange reserves obstruct the management of monetary policy. The debate is launched on the effectiveness of monetary policy in this context of dollarization and meager reserves. To restore the effectiveness of monetary policy in the Democratic Republic of Congo, we advocate for fiscal discipline (that is to say, eradicate fiscal dominance) that is constant and sustainable, a guarantee of sustainable macroeconomic stability. Monetary targeting should remain the adopted strategy until proven otherwise and the choice of a floating exchange rate regime is better for good macroeconomic management in the case of the Democratic Republic of Congo. However, changes in the nominal exchange rate should be implicitly included in the implementation of monetary policy.
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Gulf Cooperation Council (GCC) members are considered one of the fastest growing economies. This paper aims to empirically forecast the economic activity of the biggest GCC countries: Qatar, Saudi Arabia, and the United Arab Emirates. An Auto-Regressive Integrated Moving Average (ARIMA) model of the Gross Domestic Product in the three countries is obtained using the Box-Jenkins methodology during the 1980-2020 period. The appropriate models for the three economies are of ARIMA (0,2,1), the forecasts are at a 95% confidence level and predicts a growth in the three understudy countries for the upcoming five years.
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We examine the effect of the Internet on the relationship between domestic investment and economic growth. Data for G7 countries over the period 1991–2018 are used for panel data analysis. Empirical analysis prove that domestic investment affect positively on economic growth, however the Internet doesn’t have any effect on economic growth. Also, the effect of domestic investment on economic growth proves to be not affected by the Internet.
