On the welfare costs of business-cycle fluctuations and economic-growth variation in the 20th century

Lucas (1987) has shown a surprising result in business-cycle research: the welfare cost of business cycles are very small. Our paper has several original contributions. First, in computing welfare costs, we propose a novel setup that separates the effects of uncertainty stemming from business-cycle fluctuations and economic-growth variation. Second, we extend the sample from which to compute the moments of consumption: the whole of the literature chose primarily to work with post-WWII data. For this period, actual consumption is already a result of counter-cyclical policies, and is potentially smoother than what it otherwise have been in their absence. So, we employ also pre-WWII data. Third, we take an econometric approach and compute explicitly the asymptotic standard deviation of welfare costs using the Delta Method. Estimates of welfare costs show major differences for the pre-WWII and the post-WWII era. They can reach up to 15 times for reasonable parameter values -β=0.985, and ∅=5. For example, in the pre-WWII period (1901-1941), welfare cost estimates are 0.31% of consumption if we consider only permanent shocks and 0.61% of consumption if we consider only transitory shocks. In comparison, the post-WWII era is much quieter: welfare costs of economic growth are 0.11% and welfare costs of business cycles are 0.037% - the latter being very close to the estimate in Lucas (0.040%). Estimates of marginal welfare costs are roughly twice the size of the total welfare costs. For the pre-WWII era, marginal welfare costs of economic-growth and business- cycle fluctuations are respectively 0.63% and 1.17% of per-capita consumption. The same figures for the post-WWII era are, respectively, 0.21% and 0.07% of per-capita consumption.

On the welfare costs of business-cycle fluctuations and economic-growth variation in the 20th century

Lucas(1987) has shown a surprising result in business-cycle research: the welfare cost of business cycles are very small. Our paper has several original contributions. First, in computing welfare costs, we propose a novel setup that separates the effects of uncertainty stemming from business-cycle uctuations and economic-growth variation. Second, we extend the sample from which to compute the moments of consumption: the whole of the literature chose primarily to work with post-WWII data. For this period, actual consumption is already a result of counter-cyclical policies, and is potentially smoother than what it otherwise have been in their absence. So, we employ also pre-WWII data. Third, we take an econometric approach and compute explicitly the asymptotic standard deviation of welfare costs using the Delta Method. Estimates of welfare costs show major diferences for the pre-WWII and the post-WWII era. They can reach up to 15 times for reasonable parameter values = 0:985, and = 5. For example, in the pre-WWII period (1901-1941), welfare cost estimates are 0.31% of consumption if we consider only permanent shocks and 0.61% of consumption if we consider only transitory shocks. In comparison, the post-WWII era is much quieter: welfare costs of economic growth are 0.11% and welfare costs of business cycles are 0.037% the latter being very close to the estimate in Lucas (0.040%). Estimates of marginal welfare costs are roughly twice the size of the total welfare costs. For the pre-WWII era, marginal welfare costs of economic-growth and business-cycle uctuations are respectively 0.63% and 1.17% of per-capita consumption. The same gures for the post-WWII era are, respectively, 0.21% and 0.07% of per-capita consumption.

On the welfare costs of business-cycle fluctuations and economic-growth variation in the 20th century and beyond

The main objective of this paper is to propose a novel setup that allows estimating separately the welfare costs of the uncertainty stemming from business-cycle uctuations and from economic-growth variation, when the two types of shocks associated with them (respectively,transitory and permanent shocks) hit consumption simultaneously. Separating these welfare costs requires dealing with degenerate bivariate distributions. Levis Continuity Theorem and the Disintegration Theorem allow us to adequately de ne the one-dimensional limiting marginal distributions. Under Normality, we show that the parameters of the original marginal distributions are not afected, providing the means for calculating separately the welfare costs of business-cycle uctuations and of economic-growth variation. Our empirical results show that, if we consider only transitory shocks, the welfare cost of business cycles is much smaller than previously thought. Indeed, we found it to be negative - -0:03% of per-capita consumption! On the other hand, we found that the welfare cost of economic-growth variation is relatively large. Our estimate for reasonable preference-parameter values shows that it is 0:71% of consumption US$ 208:98 per person, per year.

Economic growth in Latin America in the late 20th century: evidence and interpretation

Includes bibliography

Progress and the Lack of Progress in Addressing Infant Health and Infant Health Inequalities in Ireland during the 20th Century

There is a growing literature which documents the importance of early life environment for outcomes across the life cycle. Research, including studies based on Irish data, demonstrates that those who experience better childhood conditions go on to be wealthier and healthier adults. Therefore, inequalities at birth and in childhood shape inequality in wellbeing in later life, and the historical evolution of the mortality and morbidity of children born in Ireland is important for understanding the current status of the Irish population. In this paper, I describe these patterns by reviewing the existing literature on infant health in Ireland over the course of the 20th century. Up to the 1950s, infant mortality in Ireland (both North and South) was substantially higher than in other developed countries, with a large penalty for those born in urban areas. The subsequent reduction in this penalty, and the sustained decline in infant death rates, occurred later than would be expected from the experience in other contexts. Using records from the Rotunda Lying-in Hospital in Dublin, I discuss sources of disparities in stillbirth in the early 1900s. Despite impressive improvements in death rates since that time, a comparison with those born at the end of the century reveals that Irish children continue to be born unequal. Evidence from studies which track people across the life course, for example research on the returns to birthweight, suggests that the economic cost of this early life inequality is substantial.

Re-strengthening 20th century architectural heritage : A case study of Brisbane City Hall restoration

Restoring old buildings to conform the current building policies and standards is a great challenge to engineers and architects. The restoration of the Brisbane City Hall, a heritage building listed by the State of Queensland in Australia, developed an innovative approach to upgrade the building using the method called ‘concrete overlay’ following the guidelines of both the International Council on Monuments and Sites and the Burra Charter of Australia. Concrete overlay is a new method of structural strengthening by drilling new reinforcement and placing new concrete on top of the existing structure, akin to a bone transplant or bone grafting in the case of a human being. This method is popularly used for newer bridges which have suffered load stresses. However, this method had never been used on any heritage buildings which were built on different conditions and standards. The compatibility of this method is currently being monitored. Most of the modern historic buildings are rapidly deteriorating and require immediate interventions in order to be saved. As most of these heritage buildings are on the stage of advanced deterioration, significant attempts are being made and several innovations are being applied to upgrade these structures to conform with the current building requirements. To date, the knowledge and literature in regarding ‘concrete cancer’ in relation to rehabilitating these reinforced concrete heritage structures is significantly lacking. It is hoped that the method of concrete overlay and the case study of Brisbane City Hall restoration will contribute to the development of restoration techniques and policies for Modern Heritage Buildings.

Business busts and U.S. auditors' interest in fraud detection: Evidence from the 20th century

We find evidence that U.S. auditors increased their attention to fraud detection during or immediately after the economic contractions of the 20th century, based on a content analysis of the 12 volumes of the 20th-century auditing reference series Montgomery’s Auditing. Contractions, however, do not seem to have affected auditors’ attention to the formal goal of fraud detection. The study suggests that auditors’ aversion to the heightened risks of fraud during economic downturns leads them to focus more on fraud detection at those times regardless of the particular guidance in formal audit standards. This study is the first to find some evidence of a recession-influenced difference between fraud detection practices and formal fraud detection goals.

Socio-economic conditions of the pond owners of Demra, Dhaka

On the basis of fish culture status 96 ponds of the study area were classified into 4 categories like wild stock (27%), extensive culture (24%), improved extensive culture (33%) and semi-intensive culture (16%). Percentage of small, medium and large ponds were 38, 44, and 18 respectively whereas education levels below SSC, below Bachelor and above were 43, 38 and 19 respectively and single owners belonged to 54% of the ponds. Per hectare yields of extensive, improved extensive and semi-intensive categories of culture were 1.3, 2.12 and 4.0 metric tons respectively and their net return were 46, 63 and 92 thousand taka respectively. Considering the problems of fish culture, multiple ownership was found to be the most important one.

Projecting marine fish production and catch potential in Bangladesh in the 21st century under long-term environmental change and management scenarios

The fisheries sector is crucial to the Bangladeshi economy and wellbeing, accounting for 4.4% of national Gross Domestic Product (GDP) and 22.8% of agriculture sector production, and supplying ca.60% of the national animal protein intake. Fish is vital to the 16 million Bangladeshis living near the coast, a number that has doubled since the 1980s. Here we develop and apply tools to project the long term productive capacity of Bangladesh marine fisheries under climate and fisheries management scenarios, based on downscaling a global climate model, using associated river flow and nutrient loading estimates, projecting high resolution changes in physical and biochemical ocean properties, and eventually projecting fish production and catch potential under different fishing mortality targets. We place particular interest on Hilsa shad (Tenualosa ilisha), which accounts for ca.11% of total catches, and Bombay duck (Harpadon nehereus), a low price fish that is the second highest catch in Bangladesh and is highly consumed by low income communities. It is concluded that the impacts of climate change, under greenhouse emissions scenario A1B, are likely to reduce the potential fish production in the Bangladesh Exclusive Economic Zone (EEZ) by less than 10%. However, these impacts are larger for the two target species. Under sustainable management practices we expect Hilsa shad catches to show a minor decline in potential catch by 2030 but a significant (25%) decline by 2060. However, if overexploitation is allowed catches are projected to fall much further, by almost 95% by 2060, compared to the Business as Usual scenario for the start of the 21st century. For Bombay duck, potential catches by 2060 under sustainable scenarios will produce a decline of less than 20% compared to current catches. The results demonstrate that management can mitigate or exacerbate the effects of climate change on ecosystem productivity.

The City Passing by the River. The San Francisco River Canalization and Construction of Avenida Jiménez de Quesada in Bogota at the Beginning of the 20th Century

The document refers to the San Francisco river canalization and subsequent construction of the Avenida Jiménez de Quesada. Understanding that the project was ascribed to the modernizing policy of the time, the investigation identifies the different stages in the canalization process, and shows its relations with the spatial structure of the city and the local conditions that developed on the river surroundings. The financing of the project through the “property increase duty” permits an illustration of the progress of canalization and construction of the Jiménez Avenue process, providing a less technical and more social meaning to the sequence in which the project executed. Consequently, the document approaches the shaping dynamics of Bogotá´s spatial structure at the beginning of the XX century.

20th century intraseasonal Asian monsoon dynamics viewed from Isomap

The Asian summer monsoon is a high dimensional and highly nonlinear phenomenon involving considerable moisture transport towards land from the ocean, and is critical for the whole region. We have used daily ECMWF reanalysis (ERA-40) sea-level pressure (SLP) anomalies to the seasonal cycle, over the region 50-145°E, 20°S-35°N to study the nonlinearity of the Asian monsoon using Isomap. We have focused on the two-dimensional embedding of the SLP anomalies for ease of interpretation. Unlike the unimodality obtained from tests performed in empirical orthogonal function space, the probability density function, within the two-dimensional Isomap space, turns out to be bimodal. But a clustering procedure applied to the SLP data reveals support for three clusters, which are identified using a three-component bivariate Gaussian mixture model. The modes are found to appear similar to active and break phases of the monsoon over South Asia in addition to a third phase, which shows active conditions over the Western North Pacific. Using the low-level wind field anomalies the active phase over South Asia is found to be characterised by a strengthening and an eastward extension of the Somali jet whereas during the break phase the Somali jet is weakened near southern India, while the monsoon trough in northern India also weakens. Interpretation is aided using the APHRODITE gridded land precipitation product for monsoon Asia. The effect of large-scale seasonal mean monsoon and lower boundary forcing, in the form of ENSO, is also investigated and discussed. The outcome here is that ENSO is shown to perturb the intraseasonal regimes, in agreement with conceptual ideas.

Development cycles, political regimes and international migration: Argentina in the 20th century

Includes bibliography

Glaciers and climate in northern Sweden during the 19th and 20th century

Our understanding of the climate of northern Sweden during the late Holocene is largely dependent on proxy-data series. These datasets remain spatially and temporally sparse and instrumental series are rare prior to the mid 19th century. Nevertheless, the glaciology and paleo-glaciology of the region has a strong potential significance for the exploration of climate change scenarios, past and future. The aim of this thesis is to investigate the 19th and 20th century climate in the northern Swedish mountain range. This provides a good opportunity to analyse the natural variability of the climate before the onset of the industrial epoch. Developing a temporal understanding of fluctuations in glacier front positions and glacier mass balance that is linked to a better understanding of their interaction and relative significance to climate is fundamental in the assessment of past climate. I have chosen to investigate previously unexplored temperature data from northern Sweden from between 1802 and 1860 and combined it with a temperature series from a synoptic station in Haparanda, which began operation in 1859, in order to create a reliable long temperature series for the period 1802 to 2002. I have also investigated two different glaciers, Pårteglaciären and Salajekna, which are located in different climatic environments. These glaciers have, from a Swedish perspective, long observational records. Furthermore, I have investigated a recurring jökulhlaup at the glacier Sälkaglaciären in order to analyse glacier-climate relationships with respect to the jökulhlaups. A number of datasets are presented, including: glacier frontal changes, in situ and photogrammetric mass balance data, in situ and satellite radar interferometry measurements of surface velocity, radar measurements, ice volume data and a temperature series. All these datasets are analysed in order to investigate the response of the glaciers to climatic stimuli, to attribute specific behaviour to particular climates and to analyse the 19th and 20th century glacier/climate relationships in northern Sweden. The 19th century was characterized by cold conditions in northern Sweden, particularly in winter. Significant changes in the amplitude of the annual temperature cycle are evident. Through the 19th century there is a marked decreasing trend in the amplitude of the data, suggesting a change towards a prevalence of maritime (westerly) air masses, something which has characterised the 20th century. The investigations on Salajekna support the conclusion that the major part of the 19th century was cold and dry. The 19th century advance of Salajekna was probably caused by colder climate in the late 18th and early 19th centuries, coupled with a weakening of the westerly airflow. The investigations on Pårteglaciären show that the glacier has a response time of ~200 years. It also suggests that there was a relatively high frequency of easterly winds providing the glacier with winter precipitation during the 19th century. Glaciers have very different response times and are sensitive to different climatic parameters. Glaciers in rather continental areas of the Subarctic and Arctic can have very long response times because of mass balance considerations and not primarily the glacier dynamics. This is of vital importance for analyzing Arctic and Subarctic glacier behaviour in a global change perspective. It is far from evident that the behaviour of the glacier fronts today reflects the present climate.

How stable are 20th century calibration models? A high-resolution summer temperature reconstruction for the eastern Swiss Alps back to A.D. 1580 derived from proglacial varved sediments

We found a significant positive correlation between local summer air temperature (May-September) and the annual sediment mass accumulation rate (MAR) in Lake Silvaplana (46°N, 9°E, 1800 m a.s.l.) during the twentieth century (r = 0.69, p < 0.001 for decadal smoothed series). Sediment trap data (2001-2005) confirm this relation with exceptionally high particle yields during the hottest summer of the last 140 years in 2003. On this base we developed a decadal-scale summer temperature reconstruction back to AD 1580. Surprisingly, the comparison of our reconstruction with two other independent regional summer temperature reconstructions (based on tree-rings and documentary data) revealed a significant negative correlation for the pre-1900 data (ie, late ‘Little Ice Age’). This demonstrates that the correlation between MAR and summer temperature is not stable in time and the actualistic principle does not apply in this case. We suggest that different climatic regimes (modern/‘Little Ice Age’) lead to changing state conditions in the catchment and thus to considerably different sediment transport mechanisms. Therefore, we calibrated our MAR data with gridded early instrumental temperature series from AD 1760-1880 (r = -0.48, p < 0.01 for decadal smoothed series) to properly reconstruct the late LIA climatic conditions. We found exceptionally low temperatures between AD 1580 and 1610 (0.75°C below twentieth-century mean) and during the late Maunder Minimum from AD 1680 to 1710 (0.5°C below twentieth-century mean). In general, summer temperatures did not experience major negative departures from the twentieth-century mean during the late ‘Little Ice Age’. This compares well with the two existing independent regional reconstructions suggesting that the LIA in the Alps was mainly a phenomenon of the cold season.

Työmies and Pappi: A Critical Look at the Finnish Socialist Federation and the Suomi Synod in Early 20th Century Michigan

At the dawn of the 20th century, the burgeoning influence of the Finnish immigrant socialist-unionist movement collided with the authoritative, conservative nature of the Suomi Synod. While the Synod, headquartered in Hancock, Michigan, was attempting to recreate the Finnish state church in America, the quickly radicalizing immigrant socialist-unionist movement was attempting to convert the masses to a materialist message of class struggle manifested by then current conditions in Michigan’s Copper Country and industrial America. The most persuasive voice of class struggle for immigrant Finns at this time was the Finnish-language newspaper Työmies (The Workingman) published in Hancock. Caustic editorials on religion, critical examinations of Christian orthodoxy in translations of Marx and Kropotkin, and ribald cartoons lampooning members of the Synod clergy and laity all demonstrated the overwrought interactions between Työmies and the Synod. This paper will highlight these tense interactions through analysis of doctrine, ideology, and imagery by delving into the primary historical record to reveal the vast gulf between two of the major institutions in early 20th century Finnish immigrant social life.