1,721,027 research outputs found
Behavioural changes and distribution effects in a Pasinetti-Solow model
No full textWe present an overlapping generation model describing an economy in which two types of agents may co-exist: ‘workers’ and capitalists’. Workers and capitalists are assumed to save on the basis of rational choices. Workers face a finite time horizon and base their consumption choices on a life-cycle motive, whereas capitalists – whose only source of income is profit – behave like an infinitely-lived dynasty. Depending on their income workers may have a switch in behaviour: above a certain threshold they may decide to leave bequests to their offspring according to a ‘warm glow’ motive. The resulting model is in two dimensions with a discontinuity. We study the dynamics properties of the 2D model with switch in behaviour both in relation to the local stability properties and to the global dynamics verifying how the threshold impinges on those properties. We will also verify how changes in workers behaviour affects capital accumulation. This will be crucial, to study the effects on the distribution of capital between the two groups
Classical economics, Keynes and money
No full textClassical Economics, Keynes and Money casts new light on an approach to economic theory and policy that combines the modern classical theory of prices and income distribution with a Keynesian analysis of money and finance. Structured in four parts, the work considers issues within classical economics, monetary economics, Keynesian and post-Keynesian Economics, rationality and economic methodology. These themes are all central to the work of Carlo Panico, and the chapters both reflect on and build on his key contributions to the field. This collection is of interest to advanced students and researchers in the history of economic thought, monetary theory, financial economics and heterodox economics
ISCH COST Action IS1104 - The EU in the new complex geography of economic systems: models, tools and policy evaluation
No full textThe uneven geographical distribution of economic activities is a huge worldwide challenge. For the EU regions this is shown by the deep differences within and across nations. Spatial inequalities are evolving through time following complex patterns determined by economic, geographical, institutional and social factors. The New Economic Geography approach, which was initiated by P. Krugman in the early 1990’s, describes economic systems as very simplified spatial structures. The Action aims at developing a more sophisticated modelling of the EU visualised as an evolving trade network with a specific topology determined by the number and strength of national, regional and local links. Economic policies should be specifically designed to take into account this pervasive network structure assessing the position of backward locations within the network and focussing on instruments that favour interconnections. The expected results will provide a basis for an improved evaluation of such policies, in particular for the European Cohesion policy, considering their impact on the welfare level of EU citizens and its geographical distribution. To achieve this objective this Action will enhance interdisciplinary networking combining recent approaches in economics with the most advanced mathematical and computational methods for analysing complex and non-linear systems
Revealing the Link Between Air Pollution and Internal Migration: Evidence from Italy
No full textPeople move for various reasons, including economic, social, political, demographic, and environmental factors. Environmental quality, in particular, plays a crucial role in migration decisions. This study examines the relationship between air pollution (measured as the maximum number of days in which at least one monitoring station detects an excess of 50 μg/m3 of PM10 above the established limit) and internal migration in Italy. Employing a difference-in-differences (diff-in-diff) strategy, our analysis reveals a negative relationship between air pollution and internal migration. We exploit two major legislative interventions in environmental regulation — LD 152/2006 and LD 155/2010 — as exogenous shocks affecting air pollution. We find that these environmental regulations significantly reduced the number of pollution exceeding days in municipal areas, thereby enhancing the attractiveness of those areas more committed to reducing urban emissions. Specifically, the combined effect of the two decrees led to an increase of approximately three new citizens per 1,000 inhabitants in the more committed areas, highlighting the importance of proactive environmental policies in influencing migration patterns and improving urban livability
Organisations and institutions in Sraffa’s thinking
No full textThe choice of the production process depends on the rate of profit and the rate of wage, which is the result of a conflict between social classes, each of which exerts pressure to obtain favourable policy choices from the political elite. While political institutions and policy measures, determining the distribution of income, derive from conscious choices of social and political actors, economic institutions evolve spontaneously and incrementally. This evolution, of which individuals grasp the implications only ex-post, favours the emergence of institutions that generally do not ensure the efficient allocation of resources. There are, however, historical experiences that show that, in some circumstances, it is possible to consciously establish economic institutions that allow to improve the allocation of resources compared to those which rise spontaneously
Natural resources and social conflict: an explanation of sub-Saharan countries’ stagnation
No full textRationality, uncertainty and ecological adaptation
No full textThe debate on the concept of rationality is key to the epistemological status of economics: starting from classical economics, scholars have always assumed some rational model of man, at least as a minimum requirement of consistency in choices; nonetheless, only with explicit neoclassical and Austrian modeling, the discussion entered an advanced stage. New fuel has been provided by experimental economics’ results helping scholars think about the real-world applicability of the neoclassical paradigm. In recent years, fresh perspectives and empirical evidence on computability have enriched the economist’s toolkit with frugal and efficient heuristics allowing real humans to tackle computationally hard problems. In this essay, we selectively discuss and expand some crucial nodes of the debate as reported in Panico (2012)’s contribution to the history of rationality in economics. We find that many early critical insights have remarkably enriched and strengthened our comprehension of how humans make economic choices
Monetary policy and national fiscal policies in the Euro area
No full textThe chapter analyses the interaction between the monetary policy and national fiscal policies, taking into account the institutional design of the Economic and Monetary Union: the monetary authority faces the traditional macroeconomic trade-off between price and output stability and national governments have the objective of debt stabilisation. The primary fiscal balance are found to positively depend on the policy rate; consequently, the government can devote more resources to pursue the objective of output stability. The main propositions of the model for the period from 2000 to 2019 are tested. The relationship between primary fiscal balance and policy rate for each broader economy in the EMU and a balanced panel data representing the whole economy of the EMU are estimated. Notably, a U-shaped relationship, independently of the debt level is detected. Before the sovereign debt crisis, an expansionary monetary policy was related to accommodative fiscal policies; the opposite occurred after the crisis when the policy rate was lower than the threshold value. Finally, a reasonable explanation of this turnaround that European governance has pushed national fiscal authorities to implement a sub-optimal fiscal policy is proposed
- …
