The political economy of inequality and growth: Essays on sovereign debt, democracy and saving

This dissertation addresses three issues in the political economy of growth literature. The first study empirically tests the hypothesis that income inequality influences the size of a country's sovereign debt for a sample of developing countries for the period 1970–1990. The argument examined is that governments tend to yield to popular pressures to engage in redistributive policies, partially financed by foreign borrowing. Facing increased risk of default, international creditors limit the credit they extend, with the result that borrowing countries invest less and grow at a slower pace. The findings do not seem to support the negative relationship between inequality and sovereign debt, as there is evidence of increases in multilateral, countercyclical flows until the mid 1980s in Latin America. The hypothesis would hold for the period 1983–1990. Debt flows and levels seem to be positively correlated with growth as expected. ^ The second study empirically investigates the hypothesis that pronounced levels of inequality lead to unconsolidated democracies. We test the existence of a nonmonotonic relationship between inequality and democracy for a sample of Latin American countries for the period 1970–2000, where democracy appears to consolidate at some intermediate level of inequality. We find that the nonmonotonic relationship holds using instrumental variables methods. Bolivia seems to be a case of unconsolidated democracy. The positive relationship between per capita income and democracy disappears once fixed effects are introduced. ^ The third study explores the nonlinear relationship between per capita income and private saving levels in Latin America. Several estimation methods are presented; however, only the estimation of a dynamic specification through a state-of-the-art general method of moments estimator yields consistent estimates with increased efficiency. Results support the hypothesis that income positively affects private saving, while system GMM reveals nonlinear effects at income levels that exceed the ones included in this sample for the period 1960–1994. We also find that growth, government dissaving, and tightening of credit constraints have a highly significant and positive effect on private saving. ^

Ahorro para el retiro en Colombia: patrones y determinantes

La decisión de los individuos acerca del ahorro para el retiro ha sido abordada teóricamente bajo la hipótesis de que el sistema de seguridad social se comporta como un sustituto de otros mecanismos de ahorro. Este documento presenta evidencia de los patrones y determinantes del ahorro para el retiro en Colombia a partir de la Gran Encuesta Integrada de Hogares de 2007. Los resultados muestran que el 63% de los ocupados declaran no ahorrar para su vejez. A partir de modelos de selección discreta se encuentra que individuos jóvenes, de sexo masculino, con menor nivel educativo, residentes en zonas rurales, y trabajadores cuenta propia, presentan menores probabilidades de ah orrar para el retiro; además las características socioeconómicas resultan significativas en la determinación del mecanismo de ahorro utilizado.

Retirement income policy and the taxation of superannuation in Australia

Superannuation is a form of savings for retirement. The savings are invested and earn income, but the proceeds are generally not available until the beneficiary reaches retirement age} The federal government's retirement income policy has three components, two of which relate to superannuation: the age pension, which provides income support to men aged 65 and over and to women aged 62 and over.2 The pension is means tested and does not depend on previous labour force participation or individual contributions; a compulsory superannuation scheme (under the Superannuation Guarantee Charge (Administration) Act 1992 (SGA Act)), which requires contributions to be made by employers on behalf of all employees, whether full-time, part-time or casual;3 and encouragement, through the taxation system, of voluntary contributions to approved superannuation funds.4 In May 2002, the government released a report, the "Intergenerational Report", 5 which identifies issues associated with Australia's ageing population and considers the fiscal implications of those changes. The Report noted that a steadily ageing population is likely to place significant pressure on government finances. It also noted that one of the key priorities for ensuring fiscal sustainability should be "maintaining a retirement income policy that encourages private saving for retirement and reduces the future demand for the Age Pension". 6 The main way the government has sought to encourage that private saving is through the tax system, primarily by the use of tax concessions. Over the past 20 years, however, the taxation of superannuation has grown in an extremely ad hoc manner and is now inequitable, inefficient and overly complex. This article suggests that the taxation of superannuation in Australia is in urgent need of a complete review. The article further asserts that, if an appropriate framework can be devised, changes could be introduced as budgetary pressures allow.

How potent is fiscal policy in Australia?

This article examines the efficacy of fiscal policy in Australia, focusing on the relationship between changes in the economy’s consolidated fiscal imbalance and private sector saving over recent decades. We first examine the macroeconomic significance of the offset coefficient between public and private savings, whose size effectively determines the effectiveness of fiscal activism. The approach innovatively suggests that these estimates simultaneously reflect Ricardian and other non-Keynesian explanations of private consumption, such as the lifecycle and permanent income theories. Econometric estimation of the offset coefficient for Australia over the period 1980–2008 yields values between 0.75 and near unity, which imply a small or near-zero fiscal multiplier, and that running budget surpluses to lift national saving is ineffective.

Estabilidade institucional, credibilidade e poupança privada: uma análise de economia política

O objetivo desta pesquisa é mostrar que há uma relação positiva entre a estabilidade política-institucional, a credibilidade e a taxa de poupança privada. Parte da literatura recente sobre disparidades entre taxas de poupança usa um argumento de economia política para explicar como a instabilidade política-institucional pode afetar as decisões públicas que determinam a poupança pública, mas não sugere da mesma forma que tal instabilidade pode atingir negativamente a poupança privada. Analisar-se-á esta lacuna da teoria partindo-se do referencial teórico da Nova Economia Institucional (NEI), onde salienta-se, nos processos de decisão privada de acumulação de ativos, o papel do governo gartantindo (i) a estabilidade das regras de mercado e (ii) os direitos de propriedade. A pesquisa envolverá uma análise teórica microeconômica da determinação da poupança privada usando a visão da NEI. O interesse prático fundamental da pesquisa é tentar justificar, em parte, os baixos níveis de poupança na América Latina usando um argumento institucionalista e, desta forma, propor ações de governo e reformas.

As entidades fechadas de previdência complementar enquanto instrumentos de atuação do Estado na economia

Com as transformações ocorridas nas últimas décadas do século XX, notadamente a expansão financeira pela qual passou o capitalismo, o enfraquecimento fiscal dos Estados nacionais e o questionamento aos sistemas de previdência pública por repartição, ganham importância em todo o mundo os fundos de pensão. Estes fundos, ao lado de outros investidores institucionais, como seguradoras e fundos de investimentos, passam a cumprir papel central no mercado acionário e também no mercado de títulos públicos e privados. Com o objetivo de realizar lucros para pagar benefícios de aposentadoria para os seus participantes, os fundos de pensão arrecadam e concentram poupança privada pulverizada, transformando-a em um ativo poderoso. No Brasil, as Entidades Fechadas de Previdência Complementar nomenclatura jurídica dos fundos de pensão possuem um total de 702 bilhões de reais em ativos, que se concentram nas três maiores entidades do país: Previ, Petros e Funcef. Em comum, estes três fundos têm o fato de serem patrocinados por empresas estatais, o que, pela legislação vigente, dá ao Poder Executivo a competência de indicar metade de seus dirigentes, incluindo o seu presidente que possui voto de desempate. O presente trabalho pesquisou o papel que estas três EFPCs cumprem enquanto instrumento de atuação do Estado no domínio econômico, especialmente para o provimento de fundos para o desenvolvimento. Para isso, primeiramente, o estudo explora o movimento de expansão financeira do capitalismo e a crise no padrão de desenvolvimento brasileiro. Depois, investiga de maneira sistemática o arcabouço jurídico que regula os fundos de pensão; e, por fim, analisa a alocação dos seus investimentos e o perfil dos seus dirigentes.

Filmljudets funktioner i krigsfilm : En audio-visuell analys av Apocalypse Now och Saving Private Ryan

I denna uppsats har filmljudet i krigsfilmerna Apocalypse Now och Saving Private Ryan undersökts. Detta har gjorts för att försöka bidra med ökad förståelse för filmljudets användningsområde och funktioner, främst för filmerna i fråga, men även för krigsfilm rent generellt. Filmljud i denna kontext omfattar allt det ljud som finns i film, men utesluter dock all ickediegetisk musik. Båda filmerna har undersökts genom en audio-visuell analys. En sådan analys görs genom att detaljgranska båda filmernas ljud- och bildinnehåll var för sig, för att slutligen undersöka samma filmsekvens som helhet då ljudet och bilden satts ihop igen. Den audio-visuella analysmetod som nyttjats i uppsatsen är Michel Chions metod, Masking. De 30 minuter film som analyserades placerades sedan i olika filmljudzoner, där respektive filmljudzons ljudinnehåll bland annat visade vilka främsta huvudfunktioner somfilmljudet hade i dessa filmer. Dessa funktioner är till för att bibehålla åskådarens fokus och intresse, att skapa närhet till rollkaraktärerna, samt att tillföra en hög känsla av realism och närvaro. Intentionerna med filmljudet verkade vara att flytta åskådaren in i filmens verklighet, att låta åskådaren bli ett med filmen. Att återspegla denna känsla av realism, närvaro, fokus samt intresse, visade sig också vara de intentioner som funnits redan i de båda filmernas förproduktionsstadier. Detta bevisar att de lyckats åstadkomma det de eftersträvat. Men om filmljudet använts på samma sätt eller innehar samma funktioner i krigsfilm rent genrellt går inte att säga.I have for this bachelor’s thesis examined the movie sound of the classic warfare movies Apocalypse Now and Saving Private Ryan. This is an attempt to contribute to a more profound comprehension of the appliance and importance of movie sound. In this context movie sound implies all kinds of sounds within the movies, accept from non-diegetic music. These two movies have been examined by an audio-visual analysis. It's done by auditing the sound and picture content separately, and then combined to audit the same sequence as a whole. Michel Chion, which is the founder of this analysis, calls this method Masking. The sound in this 30 minute sequence was then divided into different zones, where every zone represented a certain main function. These functions are provided to create a stronger connection to the characters, sustain the viewers interest and bring a sense of realism and presence. It seems though the intention with the movies sound is to bring the viewers to the scene in hand, and let it become their reality. To mirror this sense of realism, presence, focus and interest, proves to be the intention from an early stage of the production. This bachelor’s thesis demonstrates a success in their endeavours. Although it can’t confirm whether the movie sound have been utilized in the same manner or if they posess the same functions to warefare movies in general.

Seeing, sensing sound: eye tracking soundscapes in saving private Ryan and monsters inc.

Drawing largely on cinematic theories of sound, film aesthetics, and neuroscientific understandings of the eye and the gaze, we undertake a comparative analysis of two film sequences to address these questions: the chase sequence" from the animated film, Monsters, Inc. (Pete Docter, David Silverman, and Lee Unkrich, 2001); and the Omaha Beach landing sequence from Saving Private Ryan (Steven Spielberg, 1998).

Non-industrial private forest landowners’ choices of timber management strategies and potential allowable cut.

In the study, the potential allowable cut in the district of Pohjois-Savo - based on the non-industrial private forest landowners' (NIPF) choices of timber management strategies - was clarified. Alternative timber management strategies were generated, and the choices and factors affecting the choices of timber management strategies by NIPF landowners were studied. The choices of timber management strategies were solved by maximizing the utility functions of the NIPF landowners. The parameters of the utility functions were estimated using the Analytic Hierarchy Process (AHP). The level of the potential allowable cut was compared to the cutting budgets based on the 7th and 8th National Forest Inventories (NFI7 and NFI8), to the combining of private forestry plans, and to the realized drain from non-industrial private forests. The potential allowable cut was calculated using the same MELA system as has been used in the calculation of the national cutting budget. The data consisted of the NIPF holdings (from the TASO planning system) that had been inventoried compartmentwise and had forestry plans made during the years 1984-1992. The NIPF landowners' choices of timber management strategies were clarified by a two-phase mail inquiry. The most preferred strategy obtained was "sustainability" (chosen by 62 % of landowners). The second in order of preference was "finance" (17 %) and the third was "saving" (11 %). "No cuttings", and "maximum cuttings" were the least preferred (9 % and 1 %, resp.). The factors promoting the choices of strategies with intensive cuttings were a) "farmer as forest owner" and "owning fields", b) "increase in the size of the forest holding", c) agriculture and forestry orientation in production, d) "decreasing short term stumpage earning expectations", e) "increasing intensity of future cuttings", and f) "choice of forest taxation system based on site productivity". The potential allowable cut defined in the study was 20 % higher than the average of the realized drain during the years 1988-1993, which in turn, was at the same level as the cutting budget based on the combining of forestry plans in eastern Finland. Respectively, the potential allowable cut defined in the study was 12 % lower than the NFI8-based greatest sustained allowable cut for the 1990s. Using the method presented in this study, timber management strategies can be clarified for non-industrial private forest landowners in different parts of Finland. Based on the choices of timber managemet strategies, regular cutting budgets can be calculated more realistically than before.

An experiment on energy-saving competition with socially responsible consumers: opening the black box

We present results from experimental price-setting oligopolies in which green firms undertake different levels of energy-saving investments motivated by public subsidies and demand-side advantages. We find that consumers reveal higher willingness to pay for greener sellers’ products. This observation in conjunction to the fact that greener sellers set higher prices is compatible with the use and interpretation of energy-saving behaviour as a differentiation strategy. However, sellers do not exploit the resulting advantage through sufficiently high price-cost margins, because they seem trapped into “run to stay still” competition. Regarding the use of public subsidies to energy-saving sellers we uncover an undesirable crowding-out effect of consumers’ intrinsic tendency to support green manufacturers. Namely, consumers may be less willing to support a green seller whose energy-saving strategy yields a direct financial benefit. Finally, we disentangle two alternative motivations for consumer’s attractions to pro-social firms; first, the self-interested recognition of the firm’s contribution to the public and private welfare and, second, the need to compensate a firm for the cost entailed in each pro-social action. Our results show the prevalence of the former over the latter.

Australia`s box - ironbark forests and woodlands : saving the fragments of a threatened ecosystem

Australia's box-ironbark forests and woodlands once covered about 14 per cent of the State of Victoria on the riverine plains and foothills of the Great Dividing Range. But approximately 83 per cent of the total original habitat has been destroyed and what remains of this significant ecosystem is now highly fragmented and vulnerable to further degradation. Moreover, only 14 per cent of the area remaining is on public land. A 10 year campaign on the part of the environmental movement eventually succeeded in forcing the State government to conduct an independent inquiry into this ecosystem and make recommendations on future management. This paper outlines the innovative public participation process adopted by the Victorian State government and the outcomes of the inquiry. A subsequent compensation package for commercial operations disadvantaged by the proclamation of a series of new national parks is also discussed, as are the shortcomings of a process that can have little or no impact on what happens on private land.

Saving Young Lives: Pathfinder International’s Youth-Friendly Postabortion Care Project

As many as 2.5 million adolescent women seek abortion each year, and nearly 70,000 women die from complications related to unsafe abortion, of which almost half are women under the age of 25. A further 5 million women suffer disability due to unsafe abortion yearly. In most developing countries, abortion is legally restricted or highly inaccessible, which leads young women to seek services from unskilled practitioners often leading to incomplete, septic abortions and massive bleeding, which can result in permanent injury, infertility, and death. Based on our deeply held belief that all people, including adolescents, have a right to sexual and reproductive health services and the importance of addressing adolescent needs within Postabortion Care (PAC) services, Pathfinder used private funds to initiate a Youth-Friendly Postabortion Care (YFPAC) program in eight sub-Saharan African countries. Implemented between June 2007 and May 2008, the YFPAC program offered an opportunity to apply the PAC Consortium’s Technical Guidance on Youth-Friendly PAC, generating promising approaches and lessons learned. The goal of the YFPAC initiative was to increase access to PAC services that are responsive to adolescent needs in sub-Saharan Africa. While outcomes varied according to the country, the overall outcomes included: Increased community support for services and activities that prevent unwanted pregnancy, decreased stigma around abortion, and awareness of the issue of unsafe abortion among adolescent women: 311 peer educators reached almost 17,487 youth and other community members; 171 stakeholders (e.g., religious and traditional leaders, health officials, and local government officials) were sensitized on YFPAC, resulting in a positive shift in communities’ attitudes toward youth in need of PAC services. 125 service providers were trained to deliver YFPAC services and three doctors in Ghana were provided with a technical update on YFPAC. YFPAC services are available in Angola, Ghana, Nigeria, Mozambique, Tanzania, Uganda, Ethiopia, and Kenya. Pathfinder introduced YFPAC services into 25 facilities (in 27 service delivery points), and provided more than 3,800 clients with YFPAC services throughout the eight countries. The number of adolescent PAC clients seen at the project facilities increased— 710 clients were seen in the first quarter, 1,144 were seen in the fourth. The number of adolescent PAC clients who adopt a contraceptive method to prevent future unintended pregnancies has increased. Statistics show an average postabortion contraceptive acceptance of 69%, with the highest acceptance being 83% and the lowest being 44%. Evidence-based approaches, tools, and lessons learned are being disseminated and used for scale-up or replication of YFPAC interventions.

A CO2-saving-based methodology to measure the impact of the SUMP in European Cities: Application to the City of Burgos

Urban mobility in Europe is always a responsibility of the municipalities which propose measures to reduce CO2 emissions in terms of mobility aimed at reducing individual private transport (car). The European Commission's Action Plan on Urban Mobility calls for an increase in the take-up of Sustainable Urban Mobility Plans in Europe. SUMPs aim to create a sustainable urban transport system. Europe has got some long term initiatives and has been using some evaluation procedures, many of them through European projects. Nevertheless, the weak point with the SUMPs in Spain, has been the lack of concern about the evaluation and the effectiveness of the measures implemented in a SUMP. For this reason, it is difficult to know exactly whether or not the SUMPs have positively influenced in the modal split of the cities, and its contribution to reduce CO2 levels. The case of the City of Burgos is a very illustrative example as it developed a CiViTAS project during the years 2005-2009, with a total investment of 6M?. The results have been considered as ?very successful? even at European level. The modal split has changed considerably for better, The cost-effectiveness ratio of the SUMP in the city can be measured with the CO2 ton saved, specifically 36 ? per CO2 ton saved, which is fully satisfactory and in line with calculations from other European researchers. Additionally, the authors propose a single formula to measure the effectiveness of the activities developed under the umbrella of a SUMP.

Saving the Monopsony: Exclusivity, Innovation and Market Power in the Media Sector. Research Papers in Law, 7/2006

From the Introduction. The Media Sector has experienced a technological revolution in the last 15 years. Digital encoding of television signals made possible a more efficient use of the radiospectrum. Digital terrestrial television (hereinafter, “DTT”) allows now for the reception of a significant number of free-to-air channels.1 Moreover, the use of new transmission platforms (hereinafter,“platforms”), namely cable and direct-to-home satellite (hereinafter, “DTH”) paved the way for the arrival in Europe of pay-TV operators, which finance their activities mainly via subscription fees. This changing technological landscape is subject to further evolution in the near future, as incumbent telecommunications operators become increasingly interested in making available broadcasting content2 as part of their broadband offer and 3G mobile handsets can be used for the reception of TV signals....The present paper seeks to ascertain whether the Commission “regulatory approach” towards the exclusive sale of premium content is a sound one, in particular in view of the constant technological evolution outlined above. The assumptions underlying landmark Commission decisions will be compared with recent developments of the media sector in Italy. In the NewsCorp./Telepiù case, decided in 2003, the Commission imposed very strict conditions to allow the merger giving birth to Sky Italia, on the assumption that the operation created a lasting near-monopsony in the different upstream markets for the acquisition of premium intervened against the media conglomerate Mediaset (which controls, inter alia, the main three private free-to-air channels in Italy) for an alleged abuse of dominant position.17 In fact, and contrary to the forecasts made by the Commission, Mediaset was in a position to acquire the broadcasting rights of the main Italian football teams, thereby excluding the incumbent (and near-monopolist) pay-TV operator, Sky Italia. This may go to show that the reality of the sector is more complex and evolves faster than one may infer from the Commission practice, thus putting into question its stance regarding exclusivity. The experience of the evolution of the Italian media sector will be used as the starting point for the evaluation of alternative regulatory options.

Saving the Banks: The Political Economy of Bailouts. CES Papers - Open Forum #8, 2012

How much leeway did governments have in designing bank bailouts and deciding on the height of intervention during the 2007-2009 financial crisis? This paper analyzes comparatively what explains government responses to banking crises. Why does the type of intervention during financial crises vary to such a great extent across countries? By analyzing the variety of bailouts in Europe and North America, we will show that the strategies governments use to cope with the instability of financial markets does not depend on economic conditions alone. Rather, they take root in the institutional and political setting of each country and vary in particular according to the different types of business-government relations banks were able to entertain with public decision-makers. Still, “crony capitalism” accounts overstate the role of bank lobbying. With four case studies of the Irish, Danish, British and French bank bailout, we show that countries with close one-on-one relationships between policy-makers and bank management tended to develop unbalanced bailout packages, while countries where banks have strong interbank ties and collective negotiation capacity were able to develop solutions with a greater burden sharing from private institutions.