Human capital and growth under political uncertainty

In this paper we show how political uncertainty may impede economic growth by reducing public investment in the formation of human capital, and how this negative effect of political uncertainty can be offset by a government contract. We present a model of growth with accumulation of human capital and government investment in education. We show that in a country with an unstable political system the government is reluctant to invest in human capital. Low government spending on education negatively affects productivity and slows growth. Furthermore, a politically unstable economy may be trapped in a stagnant equilibrium. We also demonstrate the role of a government retirement contract. Public investment in education and economic growth are higher when the future retirement compensation of the government depends on the future national income, in comparison with investment under zero or fixed retirement compensation.

Chronic limitations of neo-liberal capitalism and oligopolistic markets: an urgent case for socialized capital

Purpose – The purpose of this paper is to highlight the serious limitations of neo-liberal capitalism and urge for a shift to socialized capital before further economic deterioration leads to a succession of global conflicts. Design/methodology/approach – This conceptual paper adopts a macro perspective in presenting argument on how global, financial markets integration and capital flow liberalization have led to inadequate market and corporate governance measures. The argument is couched in a selected literature and is preceded by a proposed solution – the requirement for socialized capital. An analysis of the nature of socialized capital is outlined and the questions that require attention identified if a paradigm shift from neo-liberal capitalism is to take place. Findings – The need to urgently shift to a new philosophy of capitalism is overwhelming. Emphasized is that capital needs to adopt a socialised identity and is supported by investment horizons of 30 years or more. It is argued that non-market (e.g. state, NGOs, civil society) intervention is critical in setting appropriate frameworks within which socialized capital can operate. Research limitations/implications – This is a theoretical paper, in which questions are raised which require transparent, public debate. Originality/value – The paper presents the case for a fundamental reconsideration of present day markets, the role of capital and the influence of elites in determining the public good.

Business life cycle and capital structure: evidence from Chinese manufacturing firms

This paper uses a panel data-fixed effect approach and data collected from Chinese public manufacturing firms between 1999 and 2011 to investigate the impacts of business life cycle stages on capital structure. We find that cash flow patterns capture more information on business life cycle stages than firm age and have a stronger impact on capital structure decision-making. We also find that the adjustment speed of capital structure varies significantly across life cycle stages and that non-sequential transitions over life cycle stages play an important role in the determination of capital structure. Our study indicates that it is important for policy-makers to ensure that products and financial markets are well-balanced.

Railway promotion in Victorian Britain: engineering triumph or waste of capital?

A key issue in UK railway history is whether the railway system was an efficient response to the traffic requirements of the economy. The UK railway system was constructed entirely by private enterprise with minimal state subsidies. This chapter considers whether the railway system was 'over-built' because the government ignored the advice of the Railway Committee of the Board of Trade. The chapter suggests that the system was over-built by about 35 per cent. The causes of this over-building are investigated and are found to be mainly social and political failures arising from distrust between MPs and civil servants and public pressure on local MPs to ensure that their constituencies were well served by railways.

Immigration, security and the public debate on US language policy : a critical discourse analysis of language attitudes in the United States of America

The narrative of the United States is of a "nation of immigrants" in which the language shift patterns of earlier ethnolinguistic groups have tended towards linguistic assimilation through English. In recent years, however, changes in the demographic landscape and language maintenance by non-English speaking immigrants, particularly Hispanics, have been perceived as threats and have led to calls for an official English language policy.This thesis aims to contribute to the study of language policy making from a societal security perspective as expressed in attitudes regarding language and identity originating in the daily interaction between language groups. The focus is on the role of language and American identity in relation to immigration. The study takes an interdisciplinary approach combining language policy studies, security theory, and critical discourse analysis. The material consists of articles collected from four newspapers, namely USA Today, The New York Times, Los Angeles Times, and San Francisco Chronicle between April 2006 and December 2007.Two discourse types are evident from the analysis namely Loyalty and Efficiency. The former is mainly marked by concerns of national identity and contains speech acts of security related to language shift, choice and English for unity. Immigrants are represented as dehumanised, and harmful. Immigration is given as sovereignty-related, racial, and as war. The discourse type of Efficiency is mainly instrumental and contains speech acts of security related to cost, provision of services, health and safety, and social mobility. Immigrants are further represented as a labour resource. These discourse types reflect how the construction of the linguistic 'we' is expected to be maintained. Loyalty is triggered by arguments that the collective identity is threatened and is itself used in reproducing the collective 'we' through hegemonic expressions of monolingualism in the public space and semi-public space. The denigration of immigrants is used as a tool for enhancing societal security through solidarity and as a possible justification for the denial of minority rights. Also, although language acquisition patterns still follow the historical trend of language shift, factors indicating cultural separateness such as the appearance of speech communities or the use of minority languages in the public space and semi-public space have led to manifestations of intolerance. Examples of discrimination and prejudice towards minority groups indicate that the perception of worth of a shared language differs from the actual worth of dominant language acquisition for integration purposes. The study further indicates that the efficient working of the free market by using minority languages to sell services or buy labour is perceived as conflicting with nation-building notions since it may create separately functioning sub-communities with a new cultural capital recognised as legitimate competence. The discourse types mainly represent securitising moves constructing existential threats. The perception of threat and ideas of national belonging are primarily based on a zero-sum notion favouring monolingualism. Further, the identity of the immigrant individual is seen as dynamic and adaptable to assimilationist measures whereas the identity of the state and its members are perceived as static. Also, the study shows that debates concerning language status are linked to extra-linguistic matters. To conclude, policy makers in the US need to consider the relationship between four factors, namely societal security based on collective identity, individual/human security, human rights, and a changing linguistic demography, for proposed language intervention measures to be successful.

Risco operacional - modelos de alocação de capital aplicados aos bancos no Brasil

Nos últimos tempos, mensurar o Risco Operacional (RO) tornou-se o grande desafio para instituições financeiras no mundo todo, principalmente com a implementação das regras de alocação de capital regulatório do Novo Acordo de Capital da Basiléia (NACB). No Brasil, ao final de 2004, o Banco Central (BACEN) estabeleceu um cronograma de metas e disponibilizou uma equipe responsável pela adaptação e implementação dessas regras no sistema financeiro nacional. A Federação de Bancos Brasileiros (FEBRABAN) também divulgou recente pesquisa de gestão de RO envolvendo vários bancos. Todo esse processo trouxe uma vasta e crescente pesquisa e atividades voltadas para a modelagem de RO no Brasil. Em nosso trabalho, medimos o impacto geral nos banco brasileiros, motivado pelas novas regras de alocação de capital de RO envolvendo os modelos mais básicos do NACB. Também introduzimos um modelo avançado de mensuração de risco, chamado Loss Data Distribution (LDA), que alguns especialistas, provenientes do Risco de Mercado, convencionaram chamar de Value-at-Risk Operacional (VaR Operacional.). Ao final desse trabalho apresentamos um caso prático baseado na implementação do LDA ou VaR

Testes de estrutura ótima de capital em empresas brasileiras: o efeito de liquidez, desempenho do mercado acionário e assimetria de informação nas decisões de financiamento

Este trabalho busca explorar, através de testes empíricos, qual das duas principais teorias de escolha de estrutura ótima de capital das empresas, a Static Trade-off Theory (STT) ou a Pecking Order Theory(POT) melhor explica as decisões de financiamento das companhias brasileiras. Adicionalmente, foi estudado o efeito da assimetria de informações, desempenho e liquidez do mercado acionário nessas decisões. Utilizou-se no presente trabalho métodos econométricos com dados de empresas brasileiras de capital aberto no período abrangendo 1995 a 2005, testando dois modelos representativos da Static Trade-off Theory (STT) e da Pecking Order Theory(POT). Inicialmente, foi testado o grupo amplo de empresas e, posteriormente, realizou-se o teste em subgrupos, controlando os efeitos de desempenho e liquidez do mercado acionário, liquidez das ações das empresas tomadoras e assimetria de informações. Desta forma, os resultados obtidos são indicativos de que a Pecking Order Theory, na sua forma semi-forte, se constitui na melhor teoria explicativa quanto à escolha da estrutura de capital das empresas brasileiras, na qual a geração interna de caixa e o endividamento oneroso e operacional é a fonte prioritária de recursos da companhia, havendo algum nível, embora baixo, da utilização de emissão de ações. Os estudos empíricos para os subgrupos de controle sugerem que a liquidez do mercado e liquidez das ações das empresas são fatores de influência na propensão das empresas emitirem ações, assim como a assimetria de informação. O desempenho do mercado acionário, com base nos dados analisados, aparenta ter pouca influência na captação de recursos via emissões de ações das empresas, não sendo feito no presente estudo distinções entre emissões públicas ou privadas

Growth, increasing returns, and public infrastructure : time series evidence

Initial endogenous growth models emphasized the importance of external effects and increasing retums in explaining growth. Empirically, this hypothesis can be confumed if the coefficient of physical capital per hour is unity in the aggregate production function. Previous estimates using time series data rejected this hypothesis, although cross-country estimates did nol The problem lies with the techniques employed, which are unable to capture low-frequency movements of high-frequency data. Using cointegration, new time series evidence confum the theory and conform to cross-country evidence. The implied Solow residual, which takes into account externaI effects to aggregate capital, has its behavior analyzed. The hypothesis that it is explained by government expenditures on infrasttucture is confIrmed. This suggests a supply-side role for government affecting productivity.

Juizados Especiais Criminias da Comarca da Capital do Estado do RIo de janeiro: Desafios organizacionais

The Judicial Authority has more and more prominence for the principal place on the public discussion. His role performed as political institution and agency in charged of the jurisdiction installment has been object of discussion. Frequently diagnostics are made about a crisis that include the Judicial System. At the same way are made diverse changes, searching transform from formalities until the ritual of fill a job of Judge. We¿re certainly, by this point of view, far from the period that the judicial questions were corresponded to jurisconsult. The discussion has increased, calling to order not only jurisconsult but also members of Congress, press and of the civil organisms. Thus international organisms, despite their economic issues, entered at the discussion being watchful to the emergency reforms to be taken by the Judicial Authority. However, although the changes end the relative agreement of the emerging crisis, the Judicial System continue to be unknown. Still now with the beginning of the Juizados Especiais Criminais, the organizational form originated in 1995. The main core of the discussion about Juizados Especiais Criminais is centralized in isolated cases instead of a global analysis, resulting of the join between data and observations about historic series. The final object of this dissertation is centered on the analysis of the activities of the organizational variables of the Juizados Especiais Criminais da Comarca da Capital do Estado do Rio de Janeiro in its first years of functioning.

A estrutura de capital das empresas brasileiras do setor industrial listadas em bolsa de valores-período de 1995 a 2007

Esta dissertação analisa os principais trabalhos e discussões sobre a estrutura de capital das empresas. O objetivo é identificar o que influencia as empresas na tomada de decisão sobre as formas de financiamento. Após a revisão das literaturas teórica e empírica sobre o tema, é elaborado um estudo que analisa as empresas brasileiras industriais com ações negociadas em bolsa de valores. Busca-se identificar as principais fontes de financiamento utilizadas, os fatores determinantes da estrutura de capital e a influência do setor das firmas nos resultados. Sempre que possível, os resultados obtidos são comparados com os estudos anteriores e com as premissas das diferentes teorias.

Public investment in basic education and economic growth

The main objective of this paper was to visualize the relation between government spending on basic education and the human capital accumulation process, observing the impacts of this spending on individual investments in higher education, and on economic growth. It is used an overlapping-generations model where the government tax the adult generation and spent it in basic education of the next generations. It was demonstrated that the magnitude of the marginal effect of government spending in basic education on growth crucially depends on public budget constrains. The paper explains why some countries with a lot of public investment in basic education growth at low rates. In that sense if a country has only a lot of public investment in basic education without investment in higher education it may growth at low rates because the taxation can cause distortions in the agents incentives to invest in higher education.

Inflation, welfare and public expenditures

This paper studies welfare effects of monetary policy in an overlapping generations model with capital and no form of taxation other than inflation. Public expenditures have a positive effect on labor productivity. The main result of the paper is that an expansive monetary policy can be welfare improving, at least for ìsmall enoughî inflation rates, and that there is an optimal inflation rate. Growth maximization, however, is never optimal. Steady-state capital and output increase with inflation, reproducing the so-called Tobin effect. For large inflation rates, however, the government authorities cannot affect real variables and there are only nominal effects.

Public versus private provision of infrastructure in a neoclassical growth model

This article studies the welfare and long run allocation impacts of privatization. There are two types of capital in this model economy, one private and the other initially public (“infrastructure”). A positive externality due to infrastructure capital is assumed, so that the government could improve upon decentralized allocations internalizing the externality, but public investmentis …nanced through distortionary taxation. It is shown that privatization is welfare-improving for a large set of economies and that after privatization under-investment is optimal. When operation inefficiency in the public sectoror subsidy to infrastructure accumulation are introduced, gains from privatization are higherand positive for most reasonable combinations of parameters.

Inflationary financing of public investment and economic growth

a theoretical model is constructed in order to explain particular historical experiences in which inflation acceleration apparently helped to spur a period of economic growth. Government financed expenditures affect positively the productivity growth in this model so that the distortionary effect of inflation tax is compensated by the productive effect of public expenditures. We show that for some interval of money creation rates there is an equilibrium where money is valued and where steady state physical capital grows with inflation. It is also shown that zero inflation and growth maximization are never the optimal policies.

Pré-ipo capital infusion and underwriting in Brazil: a study on conflicts of interests in the universal banking system

Mercados financeiros e finanças corporativas