Unemployment, growth and fiscal policy: new insights on the hysteresis hypothesis

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and balanced budget rules cause a complementarity between capital and employment capable of explaining the existence of multiple equilibrium paths. Hysteresis is viewed as the result of a selection between these diferent equilibrium paths. We use this model to argue that, in contrast to the US, those fiscal policies followed by most of the European countries after the shocks of the 1970’s may have played a central role in generating hysteresis.

Entrepreneurship, management services and economic growth

We model the joint production of entrepreneurs and workers where the former provide both entrepreneurial (strategic) and managerial (coordination, motivation) services, and management services are shared with individual workers in an output maximizing way. The static equilibrium of the model determines the endogenous share of entrepreneurs in the economy in a given moment of time. The time dynamics of the solution implies that a given growth rate in quality of entrepreneurial services contributes to productivity growth proportionally to the share of entrepreneurs at the start of the period and improvement in quality of entrepreneurial services is convergence enhancing. Model predictions are tested with data from OECD countries in the period 1970-2002. We find that improvements in quality of entrepreneurial services over time explain up to 100% of observed average productivity growth in these countries.

Political institutions and the development of telecommunications

It has traditionally been argued that the development of telecommunications infrastructure is dependent on the quality of countries' political institutions. We estimate the effect of political institutions on the diffusion of three telecommunications services and find it to be much smaller in cellular telephony than in the others. By evaluating the importance of institutions for technologies rather than for industries, we reveal important growth opportunities for developing countries and offer policy implications for alleviating differences between countries in international telecommunications development. Keywords: Political constraints, telecommunications, GMM, economic development. JEL codes: O1, O3.

El desarrollo económico de las Islas Baleares en perspectiva comparada (1950-2000)

El objetivo de este estudio consiste en presentar de forma sumaria la evolución de aquella de las macromagnitudes que mejor sintetiza la actividad productiva de cualquier economía, el Producto Interior Bruto, y en analizar sus cambios durante la segunda mitad del siglo XX en las Islas Baleares. El trabajo se orienta a cuestionar si el modelo de crecimiento en que se ha apoyado el desarrollo económico contemporáneo de las islas presenta las ventajas sobresalientes desde el punto de vista del bienestar material de los ciudadanos que se suele afirmar, puesto que se trataría de “la comunidad autónoma con más alto nivel de renta por habitante de España”. El ejercicio se lleva a cabo exclusivamente a través de las conclusiones que se desprenden de las cuentas de la región según los conceptos convencionales de la contabilidad nacional y regional. Pese a la enorme trascendencia que el autor les reconoce, se dejarán de lado en este ensayo toda una serie de elementos básicos en el debate social como son los costes medioambientales o los daños, a veces irreparables, a un paisaje muy frágil, con el fin de simplificar y dar la máxima claridad a la argumentación. Se emplearán como referencias comparativas los casos de las restantes islas del Mediterráneo europeo occidental, insertas en los Estados francés e italiano: Córcega, Cerdeña y Sicilia.

North-South trade and directed technical change

In a world where poor countries provide weak protection for intellectual property rights (IPRs), market integration shifts technical change in favor of rich nations. Through this channel, free trade may amplify international income differences. At the same time, integration with countries where IPRs are weakly protected can slow down the world growth rate. An important implication of these results is that protection of intellectual property is most beneficial in open countries. This prediction, which is novel in the literature, is consistent with evidence from a panel of 53 countries observed in the years 1965-1990. The paper also provides empirical support for the mechanism linking North-South trade to the direction of technical change: an increase in import penetration from low-wage, low-IPRs, countries is followed by a sharp fall in R&D investment in a panel of US manufacturing sectors.

La organización de los Juegos Olímpicos de Barcelona’92: un ejemplo de economía mixta o de sociedad pública y privada

Documento publicado en la colección Working papers que analiza la organización de los Juegos Olímpicos de Barcelona como ejemplo de sociedad entre las iniciativas públicas y privadas, y la concepción de las relaciones entre la administración pública y el sector privado en términos de desarrollo económico local.

Iniciativas para el desarrollo sostenible del Área de Conservación Arenal- Huetar Norte, Costa Rica

El presente proyecto tiene como zona de estudio el Área de Conservación Arenal- Huetar Norte (ACA-HN), concretamente los cantones de Upala, Los Chiles y Guatuso. El propósito del proyecto es promover el desarrollo sostenible de la zona mediante los pilares de la educación y la economía. Para ello se elabora un manual de educación ambiental de la cuenca de río Frío y así poder solventar algunas de las carencias en educación que tienen los docentes de las escuelas de la cuenca hidrográfica. Por otro lado, se diagnostica la cadena de valor sobre usos alternativos de la biodiversidad, específicamente zoocriaderos de mariposas diurnas, en los cantones de Upala y Los Chiles. Por último, se trata la información de la zona de estudio con Sistemas de Información Geográfica (SIG) para elaborar mapas que ilustren los proyectos anteriores y el proyecto sobre el diagnóstico de la industria de turismo local.

Explaining Variation in Organizational Change: The Reform of Human Resource Management in the European Commission and the OECD

In this article we investigate the reforms of human resource management in the European Commission and the OECD by analyzing comparatively to what extent both organizations have adjusted their respective structures towards the ideal type of the so-called New Public Management (NPM). The empirical findings show that reforms towards NPM are more pronounced in the Commission than in the OECD. These findings are surprising for two reasons: First, it seems rather paradoxical that the OECD as central promoter of NPM at the international level lags behind the global trend when it comes to reforming its own structures. Second, this result is in contradiction with theoretical expectations, as they can be derived from theories of institutional isomorphism. To nevertheless account for the surprising results, it is necessary to modify and complement existing theories especially with regard to the scope conditions of their causal mechanisms.

Fiscal insurance and debt management in OECD economies

Assuming the role of debt management is to provide hedging against fiscal shocks we consider three questions: i) what indicators can be used to assess the performance of debt management? ii) how well have historical debt management policies performed? and iii) how is that performance affected by variations in debt issuance? We consider these questions using OECD data on the market value of government debt between 1970 and 2000. Motivated by both the optimal taxation literature and broad considerations of debt stability we propose a range of performance indicators for debt management. We evaluate these using Monte Carlo analysis and find that those based on the relative persistence of debt perform best. Calculating these measures for OECD data provides only limited evidence that debt management has helped insulate policy against unexpected fiscal shocks. We also find that the degree of fiscal insurance achieved is not well connected to cross country variations in debt issuance patterns. Given the limited volatility observed in the yield curve the relatively small dispersion of debt management practices across countries makes little difference to the realised degree of fiscal insurance.

Why Catalonia will see its energy metabolism increase in the near future: an application of MuSIASEM

This paper applies the so-called Multi-Scale Integrated Analysis of Societal and Ecosystem Metabolism (MuSIASEM) to the economy of the Spanish region of Catalonia. By applying Georgescu-Roegen's fund-flow model, it arrives at the conclusion that within a context of the end of cheap oil, the current development model based on the growth of low productivity sectors such as services and construction must change. The change is needed not only because of the increasing scarcity of affordable energy carriers, or because of the increasing environmental impact that the present development represents, but also because of an ageing population that demands labour productivity gains. This will imply industry requiring more energy consumption per worker in order to increase its productivity, and therefore its competitiveness. Thus, we conclude that energy intensity, and exosomatic energy metabolism of Catalonia will increase dramatically in the near future unless major conservation efforts are implemented in both the household and transport sectors.

Transformación de los roles de las mujeres colonas y cambio socioambiental : el caso de la penetración de la minería transnacional en un agroecosistema de la comunidad de Junín, Ecuador

Este artículo trata de analizar el rol de las mujeres en una comunidad campesina de la Sierra norte del Ecuador, en función de las transformaciones socioambientales sufridas en base a dos procesos que se están dando hoy en día en el panorama local de Junín. Se trata por un lado de la tendencia de la comunidad hacia un modelo agroindustrial, y por el otro del conflicto socioambiental minero, latente desde hace poco más de una década en la realidad de la comunidad. Ambos procesos se encuentran fuertemente vinculados e influyen de manera directa sobre las estrategias de vida de la comunidad, puesto que ambos acaban transformando, debido a la aparición de nuevas actividades productivas, el uso que se hace de los recursos, de esta manera se observa una evolución del agroecosistema que conforma la comunidad de Junín. La discusión del presente estudio gira entorno a las repercusiones que estos dos procesos han tenido entorno al rol de la mujer, es decir se pretende estudiar un cambio social relacionado con el rol de la mujer en la comunidad, mediante un cambio ambiental que se ha dado entorno a estos dos procesos. De esta manera se ha observado que el conflicto minero ha sido el punto de partida que ha hecho salir a la mujer a la esfera pública, sobretodo por las alternativas productivas que ha creado, concretamente el ecoturismo por medio del cual la mujer ha pasado a realizar actividades productivas. Por otra parte, la modernización agrícola ha dejado patente la relación existente entre la mujer y la unidad doméstica. Esta tendencia hacia el modelo agroindustrial ha hecho desplazar a los hombres de la comunidad a realizar actividades agrícolas relacionadas con la comercialización, mientras que la mujer se ha mantenido en el sector de la agricultura de subsistencia.

Deconstructing Shocks and Persistence in OECD Real Exchange Rates

This paper analyzes the persistence of shocks that affect the real exchange rates for a panel of seventeen OECD developed countries during the post-Bretton Woods era. The adoption of a panel data framework allows us to distinguish two different sources of shocks, i.e. the idiosyncratic and the common shocks, each of which may have di¤erent persistence patterns on the real exchange rates. We first investigate the stochastic properties of the panel data set using panel stationarity tests that simultaneously consider both the presence of cross-section dependence and multiple structural breaks that have not received much attention in previous persistence analyses. Empirical results indicate that real exchange rates are non-stationary when the analysis does not account for structural breaks, although this conclusion is reversed when they are modeled. Consequently, misspecification errors due to the non-consideration of structural breaks leads to upward biased shocks' persistence measures. The persistence measures for the idiosyncratic and common shocks have been estimated in this paper always turn out to be less than one year.