Report of Recommendation to the Iowa Department of Economic Development, June 30, 2005

State Audit Reports

Economic Booms, Trade Deficits, and Economic Policy

Many economic booms have been accompanied by real exchange rate appreciations, large trade defcits -which have sometimes persisted after the return to the initial exchange rate parity- and a deteriorating traded sector. Those circumstances have typically raised the question of the de-sirability of some stabilization policy. We show that the dynamics induced by an expected productivity shock in an economy where the capital stock is non-mobile across sectors, match those circumstances. Furthermore, we obtain that credit market imperfections tend to exacerbate trade deficits, and to cause an inefficient capacity reduction in the traded sector. Some stabilization policies are explored.

Les parlementaires suisses entre démocratisation et professionnalisation (1910-2010). Biographie collective des élus fédéraux et réformes du Parlement helvétique

Notre travail de thèse vise à analyser, d'une part, les principales réformes du Parlement fédéral adoptées au cours du 20e siècle et, d'autre part, l'évolution du profil sociographique pour six cohortes d'élus fédéraux (1910, 1937, 1957, 1980, 2000 et 2010), sous l'angle de sa démocratisation et de sa professionnalisation. La thèse comprend trois axes de recherche principaux. Premièrement, nous nous penchons sur les deux réformes institutionnelles censées favoriser la démocratisation du recrutement parlementaire, à savoir l'adoption de la proportionnelle pour l'élection du Conseil national en 1918 et l'introduction du suffrage féminin à l'échelon fédéral en 1971. Nous abordons également les réformes du Parlement visant, depuis les années 1970, à sa revalorisation et à sa professionnalisation. Le deuxième axe porte sur la réalisation d'un portrait collectif des élus fédéraux pour la période 1910-1980, dans le but de vérifier l'impact des réformes des règles électorales (proportionnelle et suffrage féminin) sur le profil des députés et sénateurs. Enfin, dans le troisième axe, nous abordons les transformations du profil socio-professionnel des parlementaires pendant la période plus récente (1980-2010), en lien avec la professionnalisation accrue de l'Assemblée fédérale et les changements des rapports de force partisans. Nos résultats permettent de mettre en évidence plusieurs éléments de continuité (prédominance de la catégories des indépendants, notamment des avocats, des chefs d'entreprise et des agriculteurs, et sous-représentation des salariés du secteur public ; fort ancrage local), ainsi que certains facteurs de rupture (présence accrue des femmes, moindre importance de la carrière militaire). D'autres changements dans le profil sont liés au processus récent de professionnalisation, contesté et inachevé, qui a favorisé néanmoins l'émergence de nouveaux profils sociologiques d'élus, en termes de formation, de profession (apparition du groupe des parlementaires professionnels) et de cumul des mandats économiques et politiques, avec cependant de fortes variations entre les partis et entre les deux Chambres. - Our PhD thesis aims at analysing, on the one hand, the main reforms of the Federal Parliament adopted during the 20th century and, on the other hand, the evolution of sociographical profile for six cohorts of Swiss MPs (1910, 1937, 1957, 1980, 2000 and 2010) in terms of their democratization and professionalization. Our research is composed of three main parts. Firstly, we analyse two institutional reforms which intended to promote the democratization of parliamentary recruitment, namely the adoption of proportional representation (PR) in 1918 for the election of the National Council and the introduction of women's suffrage at the federal level in 1971. We also deal with parliamentary reforms that, since the 1970s, have aimed at reasserting the political status of the Federal Assembly and at professionalizing its members. Secondly, we carry out a collective biography of Swiss MPs during the period 1910-1980, in order to verify the impact of electoral reforms (PR and women's suffrage) on the profiles of deputies and senators. Finally, we discuss the transformation of the MPs' socio-_professional profiles during the recent period (1980-2010) in connection with the increased professionalization of the Federal Assembly and the changes of the power relations within the Parliament. Our results allow us to highlight several elements of continuity (the predominance of self-employed persons, especially lawyers, business managers and farmers, and the underrepresentation of public employees; stronger background in local politics), as well as some factors of discontinuity (increased presence of women and lesser importance of the military career). Other changes of the parliamentarians' profile are related to the recent process of professionalization. Although contested and unfinished, it has promoted new sociological profiles in terms of educational background, profession (growth of the professional parliamentarians) and number of political and economic mandates held simultaneously, however with important variations between parties and between Lower and Upper House.

Trade, Extent of the Market, and Economic Growth 1960-1996

We find that trade and domestic market size are robust determinants of economic growth over the 1960-1996 period when trade openness is measured as the US dollar value of imports and exports relative to GDP in PPP US$ ('real openness'). When trade openness is measured as the US dollar value of imports and exports relative to GDP in exchange rate US$ ('nominal openness') however, trade and the size of domestic markets are often non-robust determinants of growth. We argue that real openness is the more appropriate measure of trade and that our empirical results should be seen as evidence in favor of the extent-of-the-market hypothesis.

The Evolution of Inequity in the Access to Health Care in Spain: 1987-2001

This paper reports an analysis of the evolution of income related health inequalities in Spain over the period 1987-2001. We use recently developed methods in order to cardinalise and model self assessed health within a regression framework, decompose the sources of inequality and explain the observed differences between 1987 (one year after the 1986 General Health Act was approved) and 2001 (the latest available representative data on health for the Spanish population). The results show that the period has witnessed a reduction in income related health inequality. The driver of such reduction has been the weakening of the income health gradient, which lends support to the hypothesis that the important health policy reforms implemented over the period have been successful in the objective of reducing socio-economic inequalities in health. Our results also suggest that actions aimed at improving the health of those with low levels of education and of those who are not actively participating in the labor market would lead to further reductions in income related health inequality.

Transitory Economic Shocks and Civil Conflict

I examine whether civil conflict is triggered by transitory negative economic shocks. My approach follows Miguel, Satyanath, and Sergenti (2004) in using rainfall as an exogenous source of economic shocks in Sub-Saharan African countries. The main difference is that my empirical specifications take into account that rainfall shocks are transitory. Failure to do so may, for example, lead to the conclusion that civil conflict is more likely to break out following negative rainfall shocks when conflict is most probable following years with exceptionally high rainfall levels.

Adesão de Cabo Verde à Organização Mundial do Comércio - Problemas, Desafios e Perspectivas

A dinâmica de desenvolvimento de Cabo Verde vem sendo uma constante, com ganhos significativos para o país, como atestam a recente adesão à Organização Mundial do Comércio, a graduação a País de Rendimento Médio e a Parceria Especial com a União Europeia. No dia 23 de Julho de 2008, Cabo Verde tornou-se no 153º Estado membro da Organização Mundial do Comércio, sendo que nesta conquista foi o primeiro país Africano e o terceiro País Menos Avançado a conseguir este importante marco via negocial. As vantagens advenientes desta adesão são muitas, sendo de destacar a maior confiança dos investidores no país ao propiciar-se a expansão do mercado e a realização de negócios num ambiente mais seguro e estável, e ainda a possibilidade de melhoria da qualidade de prestação de serviços, uma vez que tudo passou a ser norteado por padrões e regras do comércio internacional. Este trabalho foi elaborado com base em pesquisa bibliográfica e exploratória necessária à construção de um referencial teórico sobre o assunto em questão, tendo como base artigos, livros, revistas e consultas em websites. Finalizando, para avaliação, apresentamos uma componente prática com base num questionário aplicado ao tecido empresarial, com perguntas abertas e de múltipla escolha, onde os inquiridos puderam fazer a sua apreciação relativa ao processo de adesão, e às expectativas advenientes. Os resultados obtidos no final do trabalho mostraram de forma clara e inequívoca a necessidade de Cabo Verde se reorganizar, reforçar o sector privado e a competitividade das empresas, através de, designadamente: melhoria do ambiente fiscal das empresas, fomento e apoio às pequenas e médias empresas. Outrossim, há que dar seguimento as reformas no sector comercial, capacitando e formando quadros nacionais uma vez que estes desempenham um papel essencial no crescimento económico do país e permitem dar maior previsibilidade aos investidores, sendo este último um dos pilares decisivos no requisito do investimento externo. The dynamics of the development of Cape Verde is becoming a constant, with significant gains to the country, as attests the recent adhesion to the World Trade Organization, the graduation to Country of Medium Revenue, as well as the Special Partnership with the European Union. On July 23, 2008, Cape Verde became the 153rd State member of the World Trade Organization, and in this conquest it was the first African country and the third Less Advanced Country to get this mark through negotiable way. The advantages proceeding from this adhesion are many, highlighting the investors' largest trust in the country when propitiating the expansion of the market and the accomplishment of business in a safer and stable atmosphere, and still the possibility of improvement of the quality of installment of services, once everything started being guided by patterns and rules of the international trade. This work was elaborated based on bibliographical and exploratory researches necessary to the construction of the theoretical referential about the subject in question, based on articles, books, magazines and website researches. Concluding, for evaluation, we presented a practical component based on a questionnaire applied to the managerial stuff, with open and multiple choice questions, where the inquired could make his appreciation related to the adhesion process, and the proceeding expectations. The results obtained at the end of the work, showed in a clear way the need of Cape Verde to organize, to reinforce the private sector and the competitiveness of the companies, through, namely: the improvement of the fiscal atmosphere of the companies, fomentation and support of the small and medium companies. Meanwhile, it is important to continue the reforms in the commercial sector, qualifying and forming national staff once they play an essential part in the economic growth of the country and allow giving a larger previsibility to the investors, being this last one, one of the decisive pillars in the requirement of the external investment.

Iowa Department of Economic Development, Agency Performance Plan, 2007

Annual Report, Agency Performance Plan

Economic Aspects of Agricultural and Food Biosecurity in the United States, March 2007

Concerns about biosecurity in the food system raise a variety of issues about how the system is presently organized, why it might be vulnerable, what one could reasonably do to better secure it, and the costs of doing so. After presenting some facts about US agriculture and food, this paper considers three economic aspects of the general problem. One is the global problem, or the way biosecurity measures can affect how countries relate to each other and the global consequences that result. Another is how to best manage the immediate aftermath of a realized threat in order to minimize damage. The third is how to seek to prevent realization of the threat. Some policy alternatives are also presented.

Audit report on the Iowa Department of Economic Development for the year ended June 30, 2006

Audit report on the Iowa Department of Economic Development for the year ended June 30, 2006

The role of moral values in the economic analysis of crime: A general equilibrium approach

In this paper, we develop a general equilibrium model of crime and show thatlaw enforcement has different roles depending on the equilibrium characterization and the value of social norms. When an economy has a unique stable equilibrium where a fraction of the population is productive and the remaining predates, the government can choose an optimal law enforcement policy to maximize a welfare function evaluated at the steady state. If such steady state is not unique, law enforcement is still relevant but in a completely different way because the steady state that prevails depends on the initial proportions of productive and predator individuals in the economy. The relative importance of these proportions can be changed through law enforcement policy.

Entrepreneurship, organization and economic performance among Spanish firms, 1930-1975. The case of the motor industry

Before the Civil War (1936-1939), Spain had seen the emergence offirms of complex organizational forms. However, the conflict andthe postwar years changed this pattern. The argument put forwardin this paper is based on historical experience, the efforts willbe addressed to explain the development of Spanish entrepreneurshipduring the second half of the twentieth century. To illustrate thechange in entrepreneurship and organizational patterns among theSpanish firms during the Francoist regime we will turn to the caseof the motor vehicle industry.

Economic growth with bubbles

We develop a stylized model of economic growth with bubbles. In this model, changes in investorsentiment lead to the appearance and collapse of macroeconomic bubbles or pyramid schemes.We show how these bubbles mitigate the effects of financial frictions. During bubbly episodes,unproductive investors demand bubbles while productive investors supply them. These transfersof resources improve the efficiency at which the economy operates, expanding consumption, thecapital stock and output. When bubbly episodes end, these transfers stop and consumption, thecapital stock and output contract. We characterize the stochastic equilibria of the model and arguethat they provide a natural way of introducing bubble shocks into business cycle models.

A global view of economic growth

This paper integrates in a unified and tractable framework some of the key insights of the field of international trade and economic growth. It examines a sequence of theoretical models that share a common description of technology and preferences but differ on their assumptions about trade frictions. By comparing the predictions of these models against each other, it is possible to identify a variety of channels through which trade affects the evolution of world income and its geographical distribution. By comparing the predictions of these models against the data, it is also possible to construct coherent explanations of income differences and long-run trends in economic growth.