Capital, wages and growth: Theory and evidence

Returns to scale to capital and the strength of capital externalities play a key role for the empirical predictions and policy implications of different growth theories. We show that both can be identified with individual wage data and implement our approach at the city-level using US Census data on individuals in 173 cities for 1970, 1980, and 1990. Estimation takes into account fixed effects, endogeneity of capital accumulation, and measurement error. We find no evidence for human or physical capital externalities and decreasing aggregate returns to capital. Returns to scale to physical and human capital are around 80 percent. We also find strong complementarities between human capital and labor and substantial total employment externalities.

Convertibility, currency controls and the cost of capital in Western Europe, 1950-1999

For most of the post-war period, Europe s capital markets remained largely closed to international capital flows. Thispaper explores the costs of this policy. Using an event-study methodology, I examine the extent to which restrictions ofcurrent and capital account convertibility affected stock returns. The delayed introduction of full currency convertibilityincreased the cost of capital. Also, a string of measures designed to reduce capital mobility before the ultimate collapseof the Bretton Woods System had considerable negative effects. These findings offer an explanation for the mountingevidence suggesting that capital account liberalization facilitates growth.

Capital formation in machinery in Latin America, 1890-1930

Investment in machinery is a key aspect in the analysis of long-term economic growth during the era of the spread of industrialisation. But, historiography has only revealed what the pace of capital accumulation was in a few Latin American economies. This article offers continuous (annual) and consistent series on the magnitude of this investment in all of the Latin American countries for the period at the height of the first globalisation, 1890-1930. The paper gives special attention to comparative analysis, showing the differences that exist at the heart of the Latin American community, in the levels of capital formation in machinery as well as in the national development of this over time. The differences in the levels appear very indicative of the unequal degree of development reached by these economies. This article puts to test the hypothesis of intraregional divergence, obtaining the tentative result that there was divergence until 1913, but that there was convergence from 1914-1930.

A comment on the cost of capital for investments with non-homogeneous components

In this paper, the expression for the cost of capital is derived when net and replacement investments exhibit differences in their effective prices due to a different fiscal treatment. It is shown that, contrary to previous results in the literature, the cost of capital should be constructed under an opportunity cost criterion rather than a historical one. This result has some important economic consequences, since the optimizing firm will take into account not only the effective price for the new investments but also consider the opportunity cost of replacing them.

User cost of capital with delayed investment grants

The usual assumption when considering investment grants is that grant payments are automatic when investments are undertaken. However, evidence from case studies shows that there can exist some time lag until funds are received by granted firms. In this paper the effects of delays in grant payments on the optimal investment policy of the firm are analyzed. It is shown how these delays lead not only to a higher financing cost but to an effective reduction in the investment grant rate, and in some cases, how benefits from investment grants could be canceled due to interactions with tax effects.

Greece and Platonic Love in E. M. Forster's Maurice, or the greatness and limits of Antiquity as a source of inspiration.

The aim of this article is to show how, although the evident idealization of Greece and Platonic love throughout the Victorian-Edwardian England, both also show their limits. In order to make it clear the author refers constantly to the implicit Greek texts such as Plato's Symposium and Phaedrus and perhaps even to Plutarch¿s Eroticus in search of a Classical Tradition which is highly significant in order to understand that England at the beginning of the twentieth century.

Critical limits of soil penetration resistance in a rhodic Eutrudox

Soil penetration resistance is an important indicator of soil physical quality and the critical limit of 2 MPa has been widely used to characterize the soil physical quality, in both no-tillage and conventional systems. The aim of this study was to quantify the influence of different tillage and cropping systems on the soil penetration resistance in a Rhodic Eutrudox. The experiment was carried out in a 5 × 2 factorial, completely randomized block design (tillage systems vs cropping systems), with four replications. The tillage systems consisted of: conventional tillage disk harrow; minimum tillage with annual chiseling; minimum tillage with chiseling every three years; no-tillage for 11 consecutive years; and no-tillage for 24 consecutive years. The factor cropping systems was represented by: crop rotation and crop succession. The soil penetration resistance (SPR) was determined in 20 soil samples per treatment and layer (0.0-0.10; 0.10-0.20 and 0.20-0.30 m) for each soil matric potential: -6, -10, -33, -100, -500 kPa. The SPR was determined at a volumetric soil water content equivalent to the fraction of plant-available water of 0.7. There were no differences of soil penetration resistance between the two cropping systems. Differences in soil penetration resistance among tillage systems were related to the matric potential at which the samples were equilibrated. The critical SPR limit of 2 MPa normally used for conventional tillage should be maintained. However, this value of 2 MPa is inappropriate for the physical quality characterization of Rhodic Eutrudox under no-tillage and/or minimum tillage with chiseling. Regardless of the cropping systems, the critical SPR limit should be raised to 3 MPa for minimum tillage with chiseling and to 3.5 MPa for no-tillage.

The limits of brain determinacy.

The genes do not control everything that happens in a cell or an organism, because thermally induced molecular movements and conformation changes are beyond genetic control. The importance of uncontrolled events has been argued from the differences between isogenic organisms reared in virtually identical environments, but these might alternatively be attributed to subtle, undetected differences in the environment. The present review focuses on the uncontrolled events themselves in the context of the developing brain. These are considered at cellular and circuit levels because even if cellular physiology was perfectly controlled by the genes (which it is not), the interactions between different cells might still be uncoordinated. A further complication is that the brain contains mechanisms that buffer noise and others that amplify it. The final resultant of the battle between these contrary mechanisms is that developmental stochasticity is sufficiently low to make neurobehavioural defects uncommon, but a chance component of neural development remains. Thus, our brains and behaviour are not entirely determined by a combination of genes-plus-environment.

A comment on the cost of capital for investments with non-homogeneous components

In this paper, the expression for the cost of capital is derived when net and replacement investments exhibit differences in their effective prices due to a different fiscal treatment. It is shown that, contrary to previous results in the literature, the cost of capital should be constructed under an opportunity cost criterion rather than a historical one. This result has some important economic consequences, since the optimizing firm will take into account not only the effective price for the new investments but also consider the opportunity cost of replacing them.

User cost of capital with delayed investment grants

The usual assumption when considering investment grants is that grant payments are automatic when investments are undertaken. However, evidence from case studies shows that there can exist some time lag until funds are received by granted firms. In this paper the effects of delays in grant payments on the optimal investment policy of the firm are analyzed. It is shown how these delays lead not only to a higher financing cost but to an effective reduction in the investment grant rate, and in some cases, how benefits from investment grants could be canceled due to interactions with tax effects.

Road Safety Audit for IA 28 from the South Corporate Limits of Norwalk in Warren County through the IA 5 Interchange in Polk County, Iowa, November 2012

In response to local concerns, the Iowa Department of Transportation (DOT) requested a road safety audit (RSA) for the IA Highway 28 corridor through the City of Norwalk in Warren County, Iowa, from the south corporate limits of Norwalk through the IA 5 interchange in Polk County, Iowa. The audit included meeting with City staff to discuss concerns, review crash history and operational issues, observe the route under daylight and nighttime conditions, and analyze available data. This report outlines the findings and recommendations of the audit team for addressing the safety concerns and operational matters along this corridor.

Limites des procédés d'investigation de la fonction érectile dans le cadre d'expertises médicolégales [Limits of the processes of investigation of the erectile function in forensic expertises].

Résumé La responsabilité d'un expert chargé d'apprécier la capacité érectile d'un prévenu est importante, car la peine infligée par le tribunal peut dépendre de ses conclusions. Sa tâche est en plus ardue car les procédés d'investigations de la fonction érectile ont tous des limites. Malgré toutes ces limites qui sont décrites dans cet article, l'expert peut aider à la recherche de la vérité comme les auteurs le démontrent. Summary The responsability of the expert in charge to appreciate the erectile capacity of an accused is considerable, as the sentence inflicted by the Tribunal could depend directly on his conclusions. His duty is harder as all the investigation procedures of the erectile functions have limits. Despite these limits, described in this article, the expert can help to discover the truth, as demonstrated by the authors.