Monetary Policy Effects in Developing Countries with Minimum Wages

Using a Dynamic General Equilibrium (DGE) model, this study examines the effects of monetary policy in economies where minimum wages are bound. The findings show that the monetary-policy effect on a binding-minimum-wage economy is relatively small and quite persistent. This result suggests that these two characteristics of monetary policy in the minimum-wage model are rather different from those in the union-negotiation model which is often assumed to account for industrial economies.

The Policy Effects of Multilevel Regulation in Europe. Insights from the Energy and Postal Sector

This paper examines the policy effects of multilevel regulation in Europe. It finds that the extent to which negative integration effectively narrows the range of policy options available domestically tends to be overstated. Drawing on empirical evidence from EU-induced reform in electricity supply and postal delivery, the paper illustrates that liberalisation and institutional reorganisation may lead to relatively little policy change. Although a lack of centralised regulatory capacity at the European level is identified as a key explanatory factor for the cases studied, the findings also point to the relevance of sector specificities and the role of exogenous drivers of change.

The housing market channel of monetary policy transmission in the Euro area

Purpose – The purpose of this paper is to explore the role of the housing market in the monetary policy transmission to consumption among euro area member states. It has been argued that the housing market in one country is then important when its mortgage market is well developed. The countries in the euro area follow unitary monetary policy, however, their housing and mortgage markets show some heterogeneity, which may lead to different policy effects on aggregate consumption through the housing market. Design/methodology/approach – The housing market can act as a channel of monetary policy shocks to household consumption through changes in house prices and residential investment – the housing market channel. We estimate vector autoregressive models for each country and conduct a counterfactual analysis in order to disentangle the housing market channel and assess its importance across the euro area member states. Findings – We find little evidence for heterogeneity of the monetary policy transmission through house prices across the euro area countries. Housing market variations in the euro area seem to be better captured by changes in residential investment rather than by changes in house prices. As a result we do not find significantly large house price channels. For some of the countries however, we observe a monetary policy channel through residential investment. The existence of a housing channel may depend on institutional features of both the labour market or with institutional factors capturing the degree of household debt as is the LTV ratio. Originality/value – The study contributes to the existing literature by assessing whether a unitary monetary policy has a different impact on consumption across the euro area countries through their housing and mortgage markets. We disentangle monetary-policy-induced effects on consumption associated with variations on the housing markets due to either house price variations or residential investment changes. We show that the housing market can play a role in the monetary transmission mechanism even in countries with less developed mortgage markets through variations in residential investment.

The sociology of Pierre Bourdieu and researching education policy

Bourdieu did not write anything explicitly about education policy. Despite this neglect, we agree with van Zanten that his theoretical concepts and methodological approaches can contribute to researching and understanding educational policy in the context of globalisation and the economising of it. In applying Bourdieu's theory and methodology to research in education policy, we focus on developing his work to understand what we call 'cross-field effects' and for exploring the emergence of a 'global education policy field'. These concepts are derived from some of our recent research concerning globalisation and mediatisation of education policy. The paper considers three separate issues. The first deals with Bourdieu' s primary 'thinking tools', namely practice, habitus,capitals and fields and their application to policy studies. The second and third sections consider two additions to Bourdieu's thinking tools, as a way to reconceptualise the functioning of policy if considered as a social field. More specifically, the second section develops an argument around cross-field effects, as a way to group together, research and describe policy effects. The third section develops an argument about an emergent global education policy field, and considers ways that such a field affects national education policy fields.

Assessing the impact of adaptive accessibility on the optimal transport policy implementation by using an integrated land-use/transport model for Madrid

Accessibility is an essential concept widely used to evaluate the impact of land-use and transport strategies in transport and urban planning. Accessibility is typically evaluated by using a transport model or a land-use model independently or successively without a feedback loop, thus neglecting the interaction effects between the two systems and the induced competition effects among opportunities due to accessibility improvements. More than a mere methodological curiosity, failure to account for land- use/transport interactions and the competition effect may result in large underestimation of the policy effects. With the recent development of land-use and transport interaction (LUTI) models, there is a growing interest in using these models to adequately measure accessibility and evaluate its impact. The current study joins this research stream by embedding an accessibility measure in a LUTI model with two main aims. The first aim is to account for adaptive accessibility, namely the adjustment of the potential accessibility due to the effect of competition among opportunities (e.g., workplaces) as a result of improved accessibility. LUTI models are particularly suitable for assessing adaptive accessibility because the competition factor is a function of the number of jobs, which is related to land-use attractiveness and the number of workers which is related, among other factors, to the transport demand. The second aim is to identify the optimal implementation scenario of policy measures on the basis of the potential and adaptive accessibility and analyse the results in terms of social welfare and accessibility. The metropolitan area of Madrid is used as a case-study and two transport policy instruments, namely a cordon toll and bus frequency increase, have been chosen for the simulation study in order to present the usefulness of the approach to urban planners and policy makers. The MARS model (Metropolitan Activity Relocation Simulator) calibrated for Madrid was employed as the analysis tool. The impact of accessibility is embedded in the model through a social welfare function that includes not only costs and benefits to both road users and transport operators, but also costs and benefits for the government and society in general (external costs). An optimisation procedure is performed by the MARS model for maximizing the value of objective function in order to find the best (optimal) policy imp lementations intensity (i.e., price, frequency). Last, the two policy strategies are evaluated in terms of their accessibility. Results show that the accessibility with competition factor influences the optimal policy implementation level and also generates different results in terms of social welfare. In addition, mapping the difference between the potential and the adaptive accessibility indicators shows that the main changes occur in areas where there is a strong competition among land-use opportunities.

Effects of Economic Factors on Adoption of Robotics and Consequences of Automation for Productivity Growth of Dairy Farms. Factor Markets Working Paper No. 32, December 2012

In the long term, productivity and especially productivity growth are necessary conditions for the survival of a farm. This paper focuses on the technology choice of a dairy farm, i.e. the choice between a conventional and an automatic milking system. Its aim is to reveal the extent to which economic rationality explains investing in new technology. The adoption of robotics is further linked to farm productivity to show how capital-intensive technology has affected the overall productivity of milk production. The empirical analysis applies a probit model and an extended Cobb-Douglas-type production function to a Finnish farm-level dataset for the years 2000–10. The results show that very few economic factors on a dairy farm or in its economic environment can be identified to affect the switch to automatic milking. Existing machinery capital and investment allowances are among the significant factors. The results also indicate that the probability of investing in robotics responds elastically to a change in investment aids: an increase of 1% in aid would generate an increase of 2% in the probability of investing. Despite the presence of non-economic incentives, the switch to robotic milking is proven to promote productivity development on dairy farms. No productivity growth is observed on farms that keep conventional milking systems, whereas farms with robotic milking have a growth rate of 8.1% per year. The mean rate for farms that switch to robotic milking is 7.0% per year. The results show great progress in productivity growth, with the average of the sector at around 2% per year during the past two decades. In conclusion, investments in new technology as well as investment aids to boost investments are needed in low-productivity areas where investments in new technology still have great potential to increase productivity, and thus profitability and competitiveness, in the long run.

Factors affecting farmland prices in Finland

The purpose of the study was to analyse factors affecting the differences in land prices between regions. The key issue was to find out the policy effects on farmland prices. In addition to comprehensive literature review, a theoretical analysis as well as modern panel and spatial econometric techniques were utilized. The study clearly pointed out the importance of taking into account the possible spatial dependence. The data were exceptionally large, comprising more than 6 000 observations. Thus, it allowed a thorough econometric estimation including the possibility to take into account the spatial nature of the data. This study supports the view that there are many other factors that affect farmland prices besides pure agricultural returns. It was also found that the support clearly affects land prices. However, rather than assuming the discount rates for support and market returns to be similar, the rough analysis refers to the discount rate for support being a little lower. If this were true it would indicate that farmers rely more on support income than market returns. The results support the view presented in literature that land values are more responsive to government payments when these payments are perceived to be permanent. An important result of this study is that the structural differences between regions and the structural change in agriculture seemed to have a considerable role in affecting land prices. Firstly, the present structure affects the competition in the land market: the more dense farms are in the region the more there are potential buyers, and the land price increases. Secondly, the change in farm structure (especially in animal husbandry) connected to the policy changes that increase area-based support affects land prices. The effect comes from two sources. Growing farms need more land for the manure, and the proportion of retiring farmers may be lower. The introduction of the manure density variable proved to be an efficient way to aggregate the otherwise very difficult task of taking into account the environmental pressure caused by structural change in animal husbandry. Finally, infrastructure also has a very important role in determining the price level of agricultural land. If other industries are prospering in the surrounding area, agricultural viability also seems to improve. The non-farm opportunities offered to farm families make continuing and developing farming more tempting.

Vetting Sexual Offenders: State Over-extension, the Punishment Deficit and the Failure to Manage Risk

This article examines the state regulation of sexual offenders in the particular context of pre-employment vetting. A successive range of statutory frameworks have been put in place, culminating in the Safeguarding Vulnerable Groups Act 2006, to prevent unsuitable individuals from working with the vulnerable, and children in particular. Contemporary legislative and policy developments are set against a backdrop of broader concerns in the area of crime and justice, namely risk regulation, preventative governance and ‘precautionary logic.’ Proponents of these approaches have largely ignored concerns over their feasibility. This article specifically addresses this fissure within the specific field of vetting. It is argued that ‘hyper innovation’ and state over-extension in this area are particularly problematic and have resulted in exceptionally uncertain and unsafe policies. These difficulties relate principally to unrealistic public expectations about the state’s ability to control crime; unintended and ambiguous policy effects; and ultimately the failure of the state to deliver on its self-imposed regulatory mandate to effectively manage risk.

Rural markets and school choice

This thesis examines how families and schools in a rural Victorian setting engage with education markets and policies of school choice. Focusing on federal funding and state conveyancing policies, the study employs policy sociology and social geographies perspectives to examine policy effects on social relations and the implications for equity.

Efeitos de política fiscal nos EUA em um modelo FAVAR

O objetivo desse artigo é analisar o impacto da política fiscal sobre diversas variáveis macroeconômicas dos EUA. A metodologia do trabalho empírico baseia-se em um modelo VAR estrutural que incorpora fatores latentes (FAVAR) e para o qual desenvolve-se um esquema de identificação específico. Visto que os fatores são estimados por principal components, estes aproximam-se muito das séries observadas de produção industrial e taxa de juros. Como será visto, este resultado é de fundamental importância para a hipótese de identificação e a escolha dos instrumentos do modelo VAR. Por meio das funções de resposta ao impulso analisa-se os efeitos de um aumento do gasto do governo sobre variáveis de produto e consumo e, por sua vez, corroborando a hipótese de que tanto o PIB quanto as despesas de consumo das famílias aumentam depois desse choque exógeno. Em particular esse efeito sobre o consumo também é verificado quando separamos os indivíduos em várias classes de acordo com renda. Olhando cuidadosamente no entanto pode-se perceber que um aumento no gasto público possui mais impacto sobre os consumidores de renda mais baixa. Ou seja, é provável que por estarem sujeitas a restrições de crédito, as classes mais baixas tem mais dificuldade em suavizar o consumo após um choque agregado.

Do Integration Policies Affect Immigrants' Voluntary Engagement? An Exploration at Switzerland's Subnational Level

This paper investigates whether integration policies influence immigrants' propensity to volunteer, the latter being an important element of immigrants' integration into the host society. By distinguishing different categories of integration policies at Switzerland's subnational level and applying a Bayesian multilevel approach, our results suggest varying policy effects: while policies fostering socio-structural rights enhance immigrants' propensity to volunteer, we observe a negative curvilinear relationship between cultural rights and obligations and immigrants' volunteerism implying that a combination of cultural entitlements and obligations is most conducive to immigrants' civic engagement.

Mortalidad evitable y políticas en salud: Colombia, 1985-2002

Introducción: La confianza en la capacidad de evitar algunas muertes o diferir su aparición es el fundamento de toda política de salud, uno de cuyos principales resultados debe ser reducir las muertes evitables, y controlar las condiciones que aumentan el riesgo de morir. Objetivos: Establecer variaciones en la tendencia de la mortalidad evitable (ME) registrada en Colombia entre 1985 y 2002, como indicadoras del impacto efectivo que las reformas en la política sanitaria pudieran haber tenido sobre sus determinantes. Métodos: Estudio de la ME con base en los registros oficiales de defunción y en las proyecciones censales de Colombia entre 1985-2002. Para determinar la evitabilidad, se aplicó un inventario de causas de ME (ICME) ajustado a las condiciones epidemiológicas del país durante el período que se analiza. Resultados: De las muertes registradas, 75.3% se clasificaron como evitables. Se identificaron siete patrones de tendencia que reflejan, de manera particular, los efectos de las políticas públicas sobre los determinantes de la mortalidad. Conclusiones: En general, la ME viene disminuyendo en Colombia desde 1985 en la población general y entre los hombres, sin variaciones significativas durante el período. Las variaciones en la tendencia de las tasas ajustadas de varios grupos de causas hacen pensar en un deterioro en el control de sus determinantes, especialmente desde 1990. Los cambios aplicados en las políticas públicas durante los últimos años no se reflejaron en un mejor control de las muertes evitables, aunque el gasto en salud aumentó de modo muy notable en el país.

State Social Safety Net Programs and the Great Recession: The First Line of Defense and the Last Resort for the Economically Disadvantaged

Thesis (Ph.D.)--University of Washington, 2016-06