1,068 research outputs found
The Harrod-Balassa-Samuelson Effect: A Survey of Empirical Evidence
No full textThe paper surveys empirical evidence on the Harrod-Balassa-Samuelson effect. The survey encompasses the published empirical work on the phenomenon since its (re)discovery in 1964. In total, 58 empirical papers are examined within a specialized analytical framework. The body of empirical evidence is synthesized through four major elements. The analysis starts with the ongoing controversy related to the name of the theory. This is followed by a presentation of the evolution of the theoretical and econometric model. It ends with an analysis of the results of the surveyed empirical studies. Results of the survey indicate that growing body of evidence definitely points towards professional rethinking about the significance of the Harrod-Balassa-Samuelson effect.Harrod Balassa Samuelson effect, real exchange rate, purchasing power parity, productivity
The Political Economy of Textbook Writing: Paul Samuelson and the making of the first ten Editions of Economics (1945-1976)
No full textOver the past two decades, numerous contributions to the history of economics have tried to assess Paul Samuelson’s political positioning by tracing it in the subsequent editions of his famous textbook Economics. This literature, however, has provided no consensus about the location of Samuelson’s political ideas. While some authors believe that Samuelson has always had inclinations toward interventionism, others conclude that he more often acted as a pro-business advocate. The purpose of this paper is not to argue for one of these two interpretations but to depict the making of Economics itself as a political process. By ‘political’ it is not meant the conduct of party politics but the many political elements that a textbook author has to take into account if he wants to be published and favorably received. I argue that the “middle of the road” stance that Samuelson adopted in the book was consciously constructed by the MIT economist, with the help of his home institution and his publishing company, McGraw-Hill, to ensure both academic freedom and the success of the book. The reason for which the stance developed is related to pre-McCarthyist right-wing criticisms of the textbook and how Samuelson and the MIT department had to endure the pressures from members of the Corporation (MIT’s Board of Trustees), who tried to prevent the publication of the textbook and threatened Samuelson’s tenure at MIT as soon as 1947 – when early manuscripts were circulated. As a result, it was decided in accordance with both the Corporation and McGraw-Hill that the Readings volume would be published to balance conflicting ideas about state intervention. Following these early criticisms, the making of the subsequent editions relied on a network of instructors and referees all over the US in order to make it as successful and consensual as possible. This seemed to work quite well in the 1950s and for a good portion of the 1960s, until Economics became victim of its own success and was seen, in an ironical twist of fate, as a right wing text by younger, radical economists. From now on, Samuelson will try to have his book sent as often as possible to the radicals for referring process, with mixed results. Eventually, the book became criticized from both its left and its right.Paul Samuelson, Economics, Textbook, Politics, Economic Education
Journal of Mechanism and Institution Design / The existence of equilibrium flows
No full textAlfred Galichon, Larry Samuelson, Lucas Verne
The Balassa-Samuelson Effect in 'East & West'. Differences and Similarities
No full textBased on two detailed Balassa-Samuelson (BS) studies, Wagner and Hlouskova (2004) for eight Central Eastern European countries (CEECs) and Wagner and Doytchinov (2004) for ten Western European countries (WECs), this study assesses the differences and similarities of the BS effect between these two country groups. The econometric results show that the BS effect may have been overestimated in previous studies due to application of inappropriate first generation panel cointegration methods. When appropriately quantified, the BS effect itself explains RER movements respectively inflation differentials only to a small extent. However, extended BS relationships that include additional variables allow for an adequate modelling of inflation. Based on the comparative analysis we draw some conclusions for monetary policy in the future enlarged Euro Area.Balassa-Samuelson effect, Central and Eastern Europe, Western Europe, Non-stationary panels, Inflation simulations
Comparative Statics, English Auctions, and the Stolper-Samuelson Theorem
No full textChanges in the parameters of an -dimensional system of equations induce changes in its solutions. For a class of such systems, we determine the qualitative change in solutions given certain qualitative changes in parameters. Our methods and results are elementary yet useful. They highlight the existence of a common thread, our ``own effect'' assumption, in formally diverse areas of economics. We discuss several applications; among them, we establish the existence of efficient equilibria in English auctions with interdependent valuations, and a version of the Stolper-Samuelson Theorem for an trade model.effficient auctions, international trade theory, implicit function theorem
When is Trust Robust?
No full textWe examine an economy in which interactions are more productive if agents can trust others to refrain from cheating. Some agents are scoundrels, who cheat at every opportunity, while others cheat only if the cost of cheating, a decreasing function of the proportion of cheaters, is sufficiently low. The economy exhibits multiple equilibria. As the proportion of scoundrels in the economy declines, the high-trust equilibrium can be disrupted by arbitrarily small perturbations or by arbitrarily small infusions of low-trust agents, while the low-trust equilibrium becomes impervious to perturbations and infusions of high-trust agents. Scoundrels may thus have the effect of making trust more robust
Disappearing Private Reputations in Long-Run Relationships
No full textFor games of public reputation with uncertainty over types and imperfect public monitoring, Cripps, Mailath, and Samuelson (2004) showed that an informed player facing short-lived uninformed opponents cannot maintain a permanent reputation for playing a strategy that is not part of an equilibrium of the game without uncertainty over types. This paper extends that result to games in which the uninformed player is long-lived and has private beliefs, so that the informed player’s reputation is private. We also show that the rate at which reputations disappear is uniform across equilibria and that reputations disappear in sufficiently long discounted finitely-repeated games.Reputation, Imperfect Monitoring, Repeated Games, Commitment, Private Beliefs
Balassa- samuelson effect’ in eu.
No full textBalassa- Samuelson effect’ in EU. 66 pages, 14 charts, 6 tables, 22 formulas, 48 references. The main purpose of this master thesis is to evaluate the Balassa-Samuelson effect in European Union. The thesis is composed of three main parts each of them dealing with different aspects of Balassa-Samuelson effect. Literature analysis describes the concept of Balassa-Samuelson effect, explains main assumptions of this effect, clarifies the importance of Balassa-Samuelson effect to monetary policy and monetary unions, focuses on different methods to estimate the Balassa-Samuelson effect and points out the caveats of this effect as well as reviews the degree of investigation of the Balassa-Samuelson effect in Europe. After the literature analysis the author has defined the methodology to evalutate the Balassa-Samuelson effect in European Union. The Balassa-Samuelson effect was evaluated in eleven countries of European Union which GDP per capita were lower than euro area (19 countries) BDP per capita and which are members of euro area i. e. Estonia, Greece, Spain, Italy, Cyprus, Latvia, Lithuania, Malta, Portugal, Slovenia and Slovakia. It is worth mentioning that the evaluation of Balassa-Samuelson effect was made for each country individually not as a part of panel data. Furthermore, two different types of inflation were used: common inflation indicator and inflation excluding energy indicator in order to distinguish the influence of energy price. The results analysis of evaluated Balassa-Samuelson effect examines the existence of the assumptions of the Balassa-Samuelson effect in Spain, Italy, Lithuania and Slovakia as well as evaluates the Balassa-Samuelson effect in European Union using two different types of inflation: common inflation indicator and inflation excluding energy indicator. The conclusions summarise the main concept of literature analysis and the results of the performed research. Results of data analysed show that Balassa Samuelson effect using common inflation indicator exists in Italy, Latvia, Lithuania, Malta and Slovakia. The effect in these countries ranges from 0,18 per cent in Italy to 1,08 per cent in Lithuania. On the other hand, Balassa-Samuelson effect using inflation excluding energy indicator exists in Greece, Cyprus, Lithuania, Malta, Slovenia and Slovakia. The effect in these countries ranges from 0,01 per cent in Greece to 0,66 per cent in Lithuania
Rejoinder To Ross: More On The Robbins–samuelson Argument Pattern
No full textThe author expresses his views on the Robbins-Samuelson Argument Pattern (RSAP) in relation to the book Economic Theory and Cognitive Science: Microexplanation, by Don Ross. RSAP was the pattern used by Ross to establish his conception of microeconomics, featuring the economic theory established by the late British economist Lionel Robbins and American economist Paul Anthony Samuelson. The author also comments on how Ross associated Robbins\u27 theory of individual choice with the ordinal utility theory
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