Levy Economics Institute

Displaying 1-40 of 143 results

  • White Papers // Aug 2011

    Infinite-Variance, Alpha-Stable Shocks In Monetary SVAR: Final Working-Paper Version

    This paper adumbrates a theory of what might be going wrong in the monetary SVAR literature and provides supporting empirical evidence. The theory is that macroeconomists may be attempting to identify structural forms that do not exist, given the true distribution of the innovations in the reduced-form VAR. The paper...

    Provided By Levy Economics Institute

  • White Papers // Aug 2011

    Lessons We Should Have Learned From The Global Financial Crisis But Didn't

    In this paper, the author first quickly recounts the causes and consequences of the Global Financial Crisis (GFC). Of course, the triggering event was the unfolding of the subprime crisis; however, the author argues that the financial system was already so fragile that just about anything could have caused the...

    Provided By Levy Economics Institute

  • White Papers // Jul 2011

    The Levy Institute Measure Of Economic Well-Being: Estimates For Canada, 1999 And 2005

    This paper presents estimates of the Levy Institute Measure of Economic Well-Being (LIMEW) for a representative sample of Canadian households in 1999 and 2005. The results indicate that there was only modest growth in the average Canadian household's total command over economic resources in the six years between 1999 and...

    Provided By Levy Economics Institute

  • White Papers // Jul 2011

    The Levy Institute Measure Of Economic Well-Being, France, 1989 And 2000

    The authors construct estimates of the Levy Institute Measure of Economic Well-Being for France for the years 1989 and 2000. They also estimate the standard measure of Disposable cash Income (DI) from the same data sources. They analyze overall trends in the level and distribution of household well-being using both...

    Provided By Levy Economics Institute

  • White Papers // Jul 2011

    Institutional Prerequisites Of Financial Fragility Within Minsky's Financial Instability Hypothesis: A Proposal In Terms Of "Institutional Fragility

    The relevancy of Minsky's Financial Instability Hypothesis (FIH) in the current (and still unfolding) crisis has been clearly acknowledged by both economists and regulators. While most papers focus on discussing to what extent the FIH or Minsky's Big Bank/Big Government interpretation is appropriate to explain and sort out the crisis,...

    Provided By Levy Economics Institute

  • White Papers // Jul 2011

    The Global Crisis And The Remedial Actions: A Nonmainstream Perspective

    The global financial crisis has now spread across multiple countries and sectors, affecting both financial and real spheres in the advanced as well as the developing economies. This has been caused by policies based on "Rational expectation" models that advocate deregulated finance, with facilities for easy credit and derivatives, along...

    Provided By Levy Economics Institute

  • White Papers // Jul 2011

    The Rise And Fall Of Export-Led Growth

    This paper traces the rise of export-led growth as a development paradigm and argues that it is exhausted owing to changed conditions in Emerging Market (EM) and developed economies. The global economy needs a recalibration that facilitates a new paradigm of domestic demand-led growth. Globalization has so diversified global economic...

    Provided By Levy Economics Institute

  • White Papers // Jul 2011

    Quality Of Match For Statistical Matches Used In The 1989 And 2000 LIMEW Estimates For France

    The quality of match for each of four statistical matches used in the LIMEW estimates for France for 1989 and 2000 is described. The first match combines the 1992 Enqu?te sur les Actifs Financiers with the 1989-90 Enqu?te Budget De Famille (BDF). The second match combines the 1998 General Social...

    Provided By Levy Economics Institute

  • White Papers // Jul 2011

    What Ended The Great Depression? Reevaluating The Role Of Fiscal Policy

    Conventional wisdom contends that fiscal policy was of secondary importance to the economic recovery in the 1930s. The recovery is then connected to monetary policy that allowed non-sterilized gold inflows to increase the money supply. Often, this is shown by measuring the fiscal multipliers, and demonstrating that they were relatively...

    Provided By Levy Economics Institute

  • White Papers // Jun 2011

    Effective Demand In The Recent Evolution Of The US Economy

    The authors present strong empirical evidence favoring the role of effective demand in the US economy, in the spirit of Keynes and Kalecki. Their inference comes from a statistically well-specified VAR model constructed on a quarterly basis from 1980 to 2008. US output is their variable of interest, and it...

    Provided By Levy Economics Institute

  • White Papers // Jun 2011

    Investing In Care: A Strategy For Effective And Equitable Job Creation

    Massive job losses in the USA, over 8 million since the onset of the "Great Recession," call for job creation measures through fiscal expansion. In this paper, the authors analyze the job creation potential of social service delivery sectors - early childhood development and home based health care - as...

    Provided By Levy Economics Institute

  • White Papers // May 2011

    Income Distribution In A Monetary Economy: A Ricardo-Keynes Synthesis

    The paper provides a novel theory of income distribution and achieves an integration of monetary and value theories along Ricardian lines, extended to a monetary production economy as understood by Keynes. In a monetary economy, capital is a fund that must be maintained. This idea is captured in the circuit...

    Provided By Levy Economics Institute

  • White Papers // May 2011

    The Product Space: What Does It Say About The Opportunities For Growth And Structural Transformation Of Sub-Saharan Africa?

    In this paper, the authors look at the economic development of Sub-Saharan Africa (SSA) in the context of structural transformation. They use Hidalgo et al.'s (2007) concept of product space to show the evolution of the region's productive structure, and discuss the opportunities for growth and diversification. The majority of...

    Provided By Levy Economics Institute

  • White Papers // May 2011

    Race, Power, And The Subprime/Foreclosure Crisis: A Mesoanalysis

    Economists' principal explanations of the subprime crisis differ from those developed by noneconomists in that the latter see it as rooted in the US legacy of racial/ethnic inequality, and especially in racial residential segregation, whereas the former ignore race. This paper traces this disjuncture to two sources. What is missing...

    Provided By Levy Economics Institute

  • White Papers // May 2011

    The Freedom Budget At 45: Functional Finance And Full Employment

    Forty-five years ago, the A. Philip Randolph Institute issued "The Freedom Budget," in which a program for economic transformation was proposed that included a job guarantee for everyone ready and willing to work, a guaranteed income for those unable to work or those who should not be working, and a...

    Provided By Levy Economics Institute

  • White Papers // May 2011

    Public Job-Creation Programs: The Economic Benefits Of Investing In Social Care Case Studies In South Africa And The United States

    This paper demonstrates the strong impacts that public job creation in social care provisioning has on employment creation. Furthermore, it shows that mobilizing underutilized domestic labor resources and targeting them to bridge gaps in community-based services yield strong pro-poor income growth patterns that extend throughout the economy. Social care provision...

    Provided By Levy Economics Institute

  • White Papers // Apr 2011

    The Levy Institute Measure Of Economic Well-Being, Great Britain, 1995 And 2005

    The authors construct estimates of the Levy Institute Measure of Economic Well-Being for Great Britain for the years 1995 and 2005. They also produce estimates of the official British measures HBAI (from the Department for Work and Pensions annual report titled "Households below Average Income") and ROI (from the Office...

    Provided By Levy Economics Institute

  • White Papers // Apr 2011

    Hegemonic Currencies During The Crisis: The Dollar Versus The Euro In A Cartalist Perspective

    This paper suggests that the dollar is not threatened as the hegemonic international currency, and that most analysts are incapable of understanding the resilience of the dollar, not only because they ignore the theories of monetary hegemonic stability or what, more recently, has been termed the geography of money; but...

    Provided By Levy Economics Institute

  • White Papers // Apr 2011

    Causes Of Financial Instability: Don't Forget Finance

    Given the economy's complex behavior and sudden transitions as evidenced in the 2007-08 crisis, agent-based models are widely considered a promising alternative to current macroeconomic practice dominated by DSGE models. Their failure is commonly interpreted as a failure to incorporate heterogeneous interacting agents. This paper explains that complex behavior and...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Can Portugal Escape Stagnation Without Opting Out From The Eurozone?

    The creation of the Economic and Monetary Union (EMU) has not brought significant gains to the Portuguese economy in terms of real convergence with wealthier eurozone countries. The authors analyze the causes of the underperformance of the Portuguese economy in the last decade, discuss its growth prospects within the EMU,...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Quality Of Match For Statistical Matches Used In The 1995 And 2005 LIMEW Estimates For Great Britain

    The quality of match of four statistical matches used in the LIMEW estimates for Great Britain for 1995 and 2005 is described. The first match combines the fifth (1995) wave of the British Household Panel Survey (BHPS) with the 1995-96 Family Resources Survey (FRS). The second match combines the 1995...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Minsky Crisis

    Stability is destabilizing. These three words concisely capture the insight that underlies Hyman Minsky's analysis of the economy's transformation over the entire postwar period. The basic thesis is that the dynamic forces of a capitalist economy are explosive and must be contained by institutional ceilings and floors. However, to the...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Keynes After 75 Years: Rethinking Money As A Public Monopoly

    In this paper, the author first provides an overview of alternative approaches to money, contrasting the orthodox approach, in which money is neutral, at least in the long run; and the Marx-Veblen-Keynes approach, or the monetary theory of production. The author then focuses in more detail on two main categories:...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Measuring Macroprudential Risk: Financial Fragility Indexes

    With the Great Recession and the regulatory reform that followed, the search for reliable means to capture systemic risk and to detect macrofinancial problems has become a central concern. In the United States, this concern has been institutionalized through the Financial Stability Oversight Council, which has been put in charge...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    The Dismal State Of Macroeconomics And The Opportunity For A New Beginning

    The Queen of England famously asked her economic advisers why none of them had seen "It" (the global financial crisis) coming. Obviously, the answer is complex, but it must include reference to the evolution of macroeconomic theory over the postwar period - from the "Age of Keynes," through the Friedmanian...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Minsky?s Money Manager Capitalism And The Global Financial Crisis

    The world's worst economic crisis since the 1930s is now well into its third year. All sorts of explanations have been proffered for the causes of the crisis, from lax regulation and oversight to excessive global liquidity. Unfortunately, these narratives do not take into account the systemic nature of the...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    What Does Norway Get Out Of Its Oil Fund, If Not More Strategic Infrastructure Investment?

    For the past generation Norway has supplied Europe and other regions with oil, taking payment in euros or dollars. It then sends nearly all this foreign exchange abroad, sequestering its oil-export receipts - which are in foreign currency - in the "Oil fund," to invest mainly in European and US...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Money In Finance

    This paper begins by defining, and distinguishing between, money and finance, and addresses alternative ways of financing spending. The authors next examine the role played by financial institutions (e.g., banks) in the provision of finance. The role of government as both regulator of private institutions and provider of finance is...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    The Financial Crisis Viewed From The Perspective Of The "Social Costs" Theory

    This paper examines the causes and consequences of the current global financial crisis. It largely relies on the work of Hyman Minsky, although analyses by John Kenneth Galbraith and Thorstein Veblen of the causes of the 1930s collapse are used to show similarities between the two crises. K.W. Kapp's "Social...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Financial Markets

    This paper provides a brief exposition of financial markets in Post Keynesian economics. Inspired by John Maynard Keynes's path-breaking insights into the role of liquidity and finance in "Monetary production economies," Post Keynesian economics offers a refreshing alternative to mainstream (mis)conceptions in this area. The authors highlight the importance of...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    A Minskyan Road To Financial Reform

    In the aftermath of the global financial collapse that began in 2007, governments around the world have responded with reform. The outlines of Basel III have been announced, although some have already dismissed its reform agenda as being too little (and too late!). Like the proposed reforms in the United...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Financial Keynesianism And Market Instability

    In this paper, the author will follows Hyman Minsky in arguing that the postwar period has seen a slow transformation of the economy from a structure that could be characterized as "Robust" to one that is "Fragile." While many economists and policymakers have argued that "No one saw it coming,"...

    Provided By Levy Economics Institute

  • White Papers // Feb 2011

    Unit Labor Costs In The Eurozone: The Competitiveness Debate Again

    Current discussions about the need to reduce unit labor costs (especially through a significant reduction in nominal wages) in some countries of the eurozone (in particular, Greece, Ireland, Italy, Portugal, and Spain) to exit the crisis may not be a panacea. First, historically, there is no relationship between the growth...

    Provided By Levy Economics Institute

  • White Papers // Jan 2011

    Fiscal Policy: Why Aggregate Demand Management Fails And What To Do About It

    This paper argues for a fundamental reorientation of fiscal policy, from the current aggregate demand management model to a model that explicitly and directly targets the unemployed. Even though aggregate demand management has several important benefits in stabilizing an unstable economy, it also has a number of serious drawbacks that...

    Provided By Levy Economics Institute

  • White Papers // Jan 2011

    Views Of European Races Among The Research Staff Of The US Immigration Commission And The Census Bureau, Ca. 1910

    This paper discusses support for, and opposition to, racial classification of European immigrants among high-level researchers at both the United States Immigration Commission of 1907-11 (the Dillingham Commission) and the Census Bureau during those same years. A critical distinction must be made between the Commission members - political appointees who...

    Provided By Levy Economics Institute

  • White Papers // Jan 2011

    Fiscal Policy Effectiveness: Lessons From The Great Recession

    This paper reconsiders fiscal policy effectiveness in light of the recent economic crisis. It examines the fiscal policy approach advocated by the economics profession today and the specific policy actions undertaken by the Bush and Obama administrations. An examination of the labor market renders the contemporary aggregate demand - management...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    A Demographic Base For Ethnic Survival? Blending Across Four Generations Of German-Americans

    New data from the IPUMS (Integrated Public Use Microdata Series) project permit an exploration of the demographic basis for ethnic survival across successive generations. The author first explores the degree of ethnic blending among the grandchildren of early-to mid-19th-century German immigrants; second, these descendants' own marital choices; and third, the...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    Quantitative Easing And Proposals For Reform Of Monetary Policy Operations

    Beyond its original mission to "Furnish an elastic currency" as lender of last resort and manager of the payments system, the Federal Reserve has always been responsible (along with the Treasury) for regulating and supervising member banks. After World War II, Congress directed the Fed to pursue a dual mandate,...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    How Rich Countries Became Rich And Why Poor Countries Remain Poor It's the Economic Structure. Duh!

    Becoming a rich country requires the ability to produce and export commodities that embody certain characteristics. The authors classify 779 exported commodities according to two dimensions: sophistication (measured by the income content of the products exported); and connectivity to other products (a well-connected export basket is one that allows an...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    Disaggregating The Resource Curse: Is The Curse More Difficult To Dispel In Oil States Than In Mineral States?

    The hypothesis of the natural resource curse has captivated the economics profession, and since the mid-1990s has generated a large body of policymaking initiatives aimed at dispelling the curse. In this paper, the authors evaluate how the effect of resource abundance on economic growth has changed since these policies were...

    Provided By Levy Economics Institute

  • White Papers // Oct 2008

    Do The Innovations In A Monetary VAR Have Finite Variances?

    Since Christopher Sims's "Macroeconomics and Reality" (1980), macroeconomists have used structural VARs, or Vector AutoRegressions, for policy analysis. Constructing the impulse-response functions and variance decompositions that are central to this literature requires factoring the variance-covariance matrix of innovations from the VAR. This paper presents evidence consistent with the hypothesis that...

    Provided By Levy Economics Institute

  • White Papers // Nov 2008

    Promoting Equality Through An Employment Of Last Resort Policy

    To put an economy on an equitable growth path, economic development must be based on social efficiency, equity, and job creation. It has been shown that unemployment has far-reaching effects, all leading to an inequitable distribution of well-being. But many economists assume that unemployment tends toward a natural rate below...

    Provided By Levy Economics Institute

  • White Papers // Sep 2008

    Macroeconomics Meets Hyman P. Minsky: The Financial Theory Of Investment

    In this paper, the authors present a theory of the financing of investment in a modern capitalist economy, following the approach developed by Hyman P. Minsky. They argue that the current financial crisis that began with the collapse of the subprime mortgage market in the United States in 2007 provides...

    Provided By Levy Economics Institute

  • White Papers // Aug 2008

    Keynes's Approach To Full Employment: Aggregate Or Targeted Demand?

    This paper argues that John Maynard Keynes had a targeted (as contrasted with aggregate) demand approach to full employment. Modern policies, which aim to "Close the demand gap," are inconsistent with the Keynesian approach on both theoretical and methodological grounds. Aggregate demand tends to increase inflation and erode income distribution...

    Provided By Levy Economics Institute

  • White Papers // Apr 2011

    The Levy Institute Measure Of Economic Well-Being, Great Britain, 1995 And 2005

    The authors construct estimates of the Levy Institute Measure of Economic Well-Being for Great Britain for the years 1995 and 2005. They also produce estimates of the official British measures HBAI (from the Department for Work and Pensions annual report titled "Households below Average Income") and ROI (from the Office...

    Provided By Levy Economics Institute

  • White Papers // Apr 2011

    Hegemonic Currencies During The Crisis: The Dollar Versus The Euro In A Cartalist Perspective

    This paper suggests that the dollar is not threatened as the hegemonic international currency, and that most analysts are incapable of understanding the resilience of the dollar, not only because they ignore the theories of monetary hegemonic stability or what, more recently, has been termed the geography of money; but...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Can Portugal Escape Stagnation Without Opting Out From The Eurozone?

    The creation of the Economic and Monetary Union (EMU) has not brought significant gains to the Portuguese economy in terms of real convergence with wealthier eurozone countries. The authors analyze the causes of the underperformance of the Portuguese economy in the last decade, discuss its growth prospects within the EMU,...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Quality Of Match For Statistical Matches Used In The 1995 And 2005 LIMEW Estimates For Great Britain

    The quality of match of four statistical matches used in the LIMEW estimates for Great Britain for 1995 and 2005 is described. The first match combines the fifth (1995) wave of the British Household Panel Survey (BHPS) with the 1995-96 Family Resources Survey (FRS). The second match combines the 1995...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Minsky Crisis

    Stability is destabilizing. These three words concisely capture the insight that underlies Hyman Minsky's analysis of the economy's transformation over the entire postwar period. The basic thesis is that the dynamic forces of a capitalist economy are explosive and must be contained by institutional ceilings and floors. However, to the...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Keynes After 75 Years: Rethinking Money As A Public Monopoly

    In this paper, the author first provides an overview of alternative approaches to money, contrasting the orthodox approach, in which money is neutral, at least in the long run; and the Marx-Veblen-Keynes approach, or the monetary theory of production. The author then focuses in more detail on two main categories:...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Measuring Macroprudential Risk: Financial Fragility Indexes

    With the Great Recession and the regulatory reform that followed, the search for reliable means to capture systemic risk and to detect macrofinancial problems has become a central concern. In the United States, this concern has been institutionalized through the Financial Stability Oversight Council, which has been put in charge...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    The Dismal State Of Macroeconomics And The Opportunity For A New Beginning

    The Queen of England famously asked her economic advisers why none of them had seen "It" (the global financial crisis) coming. Obviously, the answer is complex, but it must include reference to the evolution of macroeconomic theory over the postwar period - from the "Age of Keynes," through the Friedmanian...

    Provided By Levy Economics Institute

  • White Papers // Feb 2011

    Unit Labor Costs In The Eurozone: The Competitiveness Debate Again

    Current discussions about the need to reduce unit labor costs (especially through a significant reduction in nominal wages) in some countries of the eurozone (in particular, Greece, Ireland, Italy, Portugal, and Spain) to exit the crisis may not be a panacea. First, historically, there is no relationship between the growth...

    Provided By Levy Economics Institute

  • White Papers // Jan 2011

    Fiscal Policy: Why Aggregate Demand Management Fails And What To Do About It

    This paper argues for a fundamental reorientation of fiscal policy, from the current aggregate demand management model to a model that explicitly and directly targets the unemployed. Even though aggregate demand management has several important benefits in stabilizing an unstable economy, it also has a number of serious drawbacks that...

    Provided By Levy Economics Institute

  • White Papers // Jan 2011

    Views Of European Races Among The Research Staff Of The US Immigration Commission And The Census Bureau, Ca. 1910

    This paper discusses support for, and opposition to, racial classification of European immigrants among high-level researchers at both the United States Immigration Commission of 1907-11 (the Dillingham Commission) and the Census Bureau during those same years. A critical distinction must be made between the Commission members - political appointees who...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    A Demographic Base For Ethnic Survival? Blending Across Four Generations Of German-Americans

    New data from the IPUMS (Integrated Public Use Microdata Series) project permit an exploration of the demographic basis for ethnic survival across successive generations. The author first explores the degree of ethnic blending among the grandchildren of early-to mid-19th-century German immigrants; second, these descendants' own marital choices; and third, the...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    Quantitative Easing And Proposals For Reform Of Monetary Policy Operations

    Beyond its original mission to "Furnish an elastic currency" as lender of last resort and manager of the payments system, the Federal Reserve has always been responsible (along with the Treasury) for regulating and supervising member banks. After World War II, Congress directed the Fed to pursue a dual mandate,...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    How Rich Countries Became Rich And Why Poor Countries Remain Poor It's the Economic Structure. Duh!

    Becoming a rich country requires the ability to produce and export commodities that embody certain characteristics. The authors classify 779 exported commodities according to two dimensions: sophistication (measured by the income content of the products exported); and connectivity to other products (a well-connected export basket is one that allows an...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    Disaggregating The Resource Curse: Is The Curse More Difficult To Dispel In Oil States Than In Mineral States?

    The hypothesis of the natural resource curse has captivated the economics profession, and since the mid-1990s has generated a large body of policymaking initiatives aimed at dispelling the curse. In this paper, the authors evaluate how the effect of resource abundance on economic growth has changed since these policies were...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    The Central Bank ?Printing Press?: Boon Or Bane? Remedies For High Unemployment And Fears Of Fiscal Crisis

    In recent years, the US public debt has grown rapidly, with last fiscal year's deficit reaching nearly $1.3 trillion. Meanwhile, many of the euro nations with large amounts of public debt have come close to bankruptcy and loss of capital market access. The same may soon be true of many...

    Provided By Levy Economics Institute

  • White Papers // Nov 2010

    Bernanke?s Paradox: Can He Reconcile His Position On The Federal Budget With His Recent Charge To Prevent Deflation?

    This paper examines Federal Reserve Chairman Ben Bernanke's recipe for deflation fighting and the specific policy actions he took in the aftermath of the 2008 financial crisis. Both in his academic and in his policy work, Bernanke has made the case that monetary policy is able to stem deflationary forces...

    Provided By Levy Economics Institute

  • White Papers // Nov 2010

    International Trade Theory And Policy: A Review Of The Literature

    This paper provides a survey of the literature on trade theory, from the classical example of comparative advantage to the New Trade theories currently used by many advanced countries to direct industrial policy and trade. An account is provided of the neo-classical brand of reciprocal demand and resource endowment theories,...

    Provided By Levy Economics Institute

  • White Papers // Nov 2010

    Immigrant Parents? Attributes Versus Discrimination: New Evidence In The Debate About The Creation Of Second Generation Educational Outcomes In Israel

    There is much interest in explaining the persistent ethnic gaps in education among Israeli Jews; specifically, the much lower attainments of those from Asian and African countries compared to the rest - Mizrahim vs. Ashkenazim, respectively. Some explanations (especially early ones) have stressed premigration immigrant characteristics, particularly the relatively lower...

    Provided By Levy Economics Institute

  • White Papers // Nov 2010

    Exploring The Philippine Economic Landscape And Structural Change Using The Input-Output Framework

    This paper explores the degree of structural change of the Philippine economy using the input-output framework. It examines how linkages among economic sectors evolved over 1979-2000, and identifies which economic sectors exhibited the highest intersectoral linkages. The authors find that manufacturing is consistently the key sector in the Philippine economy....

    Provided By Levy Economics Institute

  • White Papers // Mar 2010

    Global Imbalances, The U.S. Dollar, And How The Crisis At The Core Of Global Finance Spread To "Self-insuring" Emerging Market Economies

    This paper investigates the spread of what started as a crisis at the core of the global financial system to emerging economies. While emerging economies had exhibited some resilience through the early stages of the financial turmoil that began in the summer of 2007, they have been hit hard since...

    Provided By Levy Economics Institute

  • White Papers // Aug 2010

    Using Capabilities To Project Growth, 2010-30

    The authors forecast growth rates for 2010-2030 by estimating a cross-country reduced form conditional-convergence regression, augmented with variables that account for a country's accumulated capabilities and capacity to undergo structural transformation. They define structural transformation as the process by which countries change what they produce and how they do it....

    Provided By Levy Economics Institute

  • White Papers // Jul 2011

    The Global Crisis And The Remedial Actions: A Nonmainstream Perspective

    The global financial crisis has now spread across multiple countries and sectors, affecting both financial and real spheres in the advanced as well as the developing economies. This has been caused by policies based on "Rational expectation" models that advocate deregulated finance, with facilities for easy credit and derivatives, along...

    Provided By Levy Economics Institute

  • White Papers // Jul 2011

    The Rise And Fall Of Export-Led Growth

    This paper traces the rise of export-led growth as a development paradigm and argues that it is exhausted owing to changed conditions in Emerging Market (EM) and developed economies. The global economy needs a recalibration that facilitates a new paradigm of domestic demand-led growth. Globalization has so diversified global economic...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    Minsky?s Money Manager Capitalism And The Global Financial Crisis

    The world's worst economic crisis since the 1930s is now well into its third year. All sorts of explanations have been proffered for the causes of the crisis, from lax regulation and oversight to excessive global liquidity. Unfortunately, these narratives do not take into account the systemic nature of the...

    Provided By Levy Economics Institute

  • White Papers // Mar 2011

    What Does Norway Get Out Of Its Oil Fund, If Not More Strategic Infrastructure Investment?

    For the past generation Norway has supplied Europe and other regions with oil, taking payment in euros or dollars. It then sends nearly all this foreign exchange abroad, sequestering its oil-export receipts - which are in foreign currency - in the "Oil fund," to invest mainly in European and US...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    Modeling Technological Progress And Investment In China: Some Caveats

    Since the early 1990s, the number of papers estimating econometric models and using other quantitative techniques to try to understand different aspects of the Chinese economy has mushroomed. A common feature of some of these studies is the use of neoclassical theory as the underpinning for the empirical implementations. It...

    Provided By Levy Economics Institute

  • White Papers // Dec 2010

    China In The Global Economy

    China occupies a unique position among developing countries. Its success in achieving relative stability in the financial sector since the institution of reforms in 1979 has given way to relative instability since the beginning of the current global financial crisis. Over the last few years, China has been on a...

    Provided By Levy Economics Institute

  • White Papers // Nov 2010

    US "Quantitative Easing" Is Fracturing The Global Economy

    The Federal Reserve's quantitative easing is presented as injecting $600 billion into "The economy." But instead of getting banks lending to Americans again - households and firms - the money is going abroad, through arbitrage interest-rate speculation, currency speculation, and capital flight. No wonder foreign economies are protesting, as their...

    Provided By Levy Economics Institute

  • White Papers // Nov 2010

    Exports, Capabilities, And Industrial Policy In India

    An extensive literature argues that India's manufacturing sector has underperformed, and that the country has failed to industrialize; in particular, it has failed to take advantage of its labor-abundant comparative advantage. India's manufacturing sector is smaller as a share of GDP than that of East Asian countries, even after controlling...

    Provided By Levy Economics Institute

  • White Papers // Nov 2010

    Financial Stability, Regulatory Buffers, And Economic Growth: Some Postrecession Regulatory Implications

    Over the past 40 years, regulatory reforms have been undertaken on the assumption that markets are efficient and self-corrective, crises are random events that are unpreventable, the purpose of an economic system is to grow, and economic growth necessarily improves well-being. This narrow framework of discussion has important implications for...

    Provided By Levy Economics Institute

  • White Papers // Oct 2010

    The Impact Of Geography And Natural Resource Abundance On Growth In Central Asia

    This paper examines the growth experience of the Central Asian economies after the breakup of the Soviet Union. In particular, it evaluates the impact of being landlocked and resource rich. The main conclusions are: over the period 1994 - 2006, the landlocked resource-scarce developing countries of Central Asia grew at...

    Provided By Levy Economics Institute

  • White Papers // Sep 2010

    The Meltdown Of The Global Economy: A Keynes-Minsky Episode?

    The enormity and pervasiveness of the global economic crisis that began in 2008 makes it relevant to analyze the circumstances that can explain this catastrophe. This will also provide clues to the appropriate remedial measures needed to prevent future occurrences of similar developments. The paper begins with some theoretical concerns...

    Provided By Levy Economics Institute

  • White Papers // Sep 2010

    Gendered Aspects Of Globalization

    We need to go beyond the accepted notions relating to the role of women in the economy and society, especially in terms of what is recognized in mainstream theory and policy as "Work" done by women. Thus, the traditional gender roles, with the man as the breadwinner and the woman...

    Provided By Levy Economics Institute

  • White Papers // Jun 2010

    Does Excessive Sovereign Debt Really Hurt Growth? A Critique Of This Time Is Different

    The worst global downturn since the Great Depression has caused ballooning budget deficits in most nations, as tax revenues collapse and governments bail out financial institutions and attempt countercyclical fiscal policy. With notable exceptions, most economists accept the desirability of expansion of deficits over the short term but fear possible...

    Provided By Levy Economics Institute

  • White Papers // Feb 2010

    The Global Financial Crisis And The Shift To Shadow Banking

    While most economists agree that the world is facing the worst economic crisis since the Great Depression, there is little agreement as to what caused it. Some have argued that the financial instability the authors are witnessing is due to irrational exuberance of market participants, fraud, greed, too much regulation,...

    Provided By Levy Economics Institute