Introduction References and Suggested Readings PART I REAL DYNAMIC MACROECONOMIC MODELS 1. Dynamic Programming A General Intertemporal Problem A Recursive Problem Bellman's Equations Nonstochastic Examples The Optimal Linear Regulator Problem Stochastic Control Problems Examples of Stochastic Control Problems The Stochastic Linear Optimal Regulator Problem Dynamic Programming and Lucas's Critique Dynamic Games and the Time Inconsistency Phenomenon Conclusions Exercises References and Suggested Readings 2. Search Nonnegative Random Variables Stigler's Model of Search Sequential Search for the Lowest Price Mean-Preserving Spreads Increases in Risk and the Reservation Price Intertemporal Job Search Waiting Times Firing Jovanovic's Matching Model Conclusions Exercises References and Suggested Readings 3. Asset Prices and Consumption Hall's Random Walk Theory of Consumption The Random Walk Theory of Stock Prices Lucas's Model of Asset Prices Mehra and Prescott's Finite-State Version of Lucas's Model Asset Pricing More Generally The Modigliani-Miller Theorem Government Debt and the Ricardian Proposition Remarks on Testing and Estimation Conclusions Exercises References and Suggested Readings PART II MONETARY ECONOMICS AND GOVERNMENT FINANCE 4. Currency in the Utility Function The Price of Inconvertible Government Currency in Lucas's Tree Model Issues and Models in Monetary Economics Government Debt in the Utility Function Government Currency in the Utility Function Seignorage and the Optimum Quantity of Currency A Neutrality Proposition Conclusions References and Suggested Readings 5. Cash-in-Advance Models A One-Country Model Fisher Equations Inflation-Indexed Government Debt Interactions of Monetary and Fiscal Policies Interest on Reserves A Two-Country Model Exchange Rate Indeterminacy Conclusions Exercises References and Suggested Readings 6. Credit and Currency with Long-Lived Agents The Physical Setup Optimal Allocations Competitive Equilibrium A Digression on the Balances of Trade and Payments The Ricardian Doctrine about Taxes and Government Debt The Model with Valued Currency and No Private Debt An Interventionist Optimal Monetary Equilibrium Townsend's \"Turnpike\" Interpretation Conclusions Exercises References and Suggested Readings 7. Credit and Currency with Overlapping Generations The Overlapping-Generations Model The Ricardian Doctrine about Taxes and Government Debt Again A Ricardian Proposition Currency, Bonds, and Open-Market Operations Computing Equilibria Interpretations as Currency Equilibria Optimality Four Examples on Inflation and Its Causes Seignorage and the Laffer Curve Dynamics of Seignorage Forced Saving International Exchange Rates Conclusions Exercises References and Suggested Readings 8. Government Finance in Stochastic Overlapping-Generations Models The Economy Some Examples A General Irrelevance Theorem Wallace's Modigliani-Miller Theorem for Open-Market Operations Chamley and Polemarchakis's Neutrality Theorem Interpretation as a Constant Fiscal Policy Indexed Government Bonds A Ricardian Proposition Further Irrelevance Theorems Conclusions Exercises References and Suggested Readings Appendix. Functional Analysis for Macroeconomics Metric Spaces and Operators First-Order Linear Difference Equations A Formula of Hansen and Sargent A Quadratic Optimization Problem in R A Discounted Quadratic Optimization Problem Predicting a Geometric Distributed Lead of a Stochastic Process Discounted Dynamic Programming A Search Problem Exercises References and Suggested Readings Index

Dynamic Macroeconomic Theory

We develop the institutional configuration perspective to understand which national contexts facilitate social entrepreneurship (SE). We confirm joint effects on SE of formal regulatory (government activism), informal cognitive (postmaterialist cultural values), and informal normative (socially supportive cultural norms, or weak-tie social capital) institutions in a multilevel study of 106,484 individuals in 26 nations. We test opposing propositions from the institutional void and institutional support perspectives. Our results underscore the importance of resource support from both formal and informal institutions, and highlight motivational supply side influences on SE. They advocate greater consideration of institutional configurations in institutional theory and comparative entrepreneurship research.

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Institutions and social entrepreneurship: The role of institutional voids, institutional support, and institutional configurations

We model and test the relationship between social and commercial entrepreneurship drawing on social capital theory. We propose that the country prevalence rate of social entrepreneurship is an indicator of constructible nation-level social capital and enhances the likelihood of individual commercial entry. We further posit that both social and commercial entrepreneurial entry is facilitated by certain formal institutions, namely strong property rights and (low) government activism, albeit the latter impacts each of these types of entrepreneurship differently. We apply bivariate discrete choice multilevel modeling to population-representative samples in 47 countries and find support for these hypotheses.

/pdf/entrepreneurship-social-capital-and-institutions-social-and-1c4q460k75.pdf

Entrepreneurship, Social Capital, and Institutions: Social and Commercial Entrepreneurship Across Nations

Why nations fail? The origins of Power, Prosperity and Poverty

Comparative International Entrepreneurship A Review and Research Agenda

Lately, some questions relating to Corporate social responsibility (CSR) have become relevant. The European Commission defines CSR as the enterprises’ contribution to sustainable development. In the field of cooperation, there are numerous examples of enterprises very closely engaged in sustainable development that apply very strict ethical codes to their regular operations. This work tries to think about: (1) the necessity of taking upon, again, the moral teachings of some fathers of economics as Adam Smith or Robert Owen, most of which were scorned since the triumph of utilitarianism and rationalism; (2) the slide of society through post-modern values; and (3) the role of cooperative principles and values in the new cultural environments.

Corporate Social Responsibility, Values, and Cooperation

This paper contributes to the existing debate on the determinants of non-profit activity. The main theories have been centered in (1) the study of the individual behavior of people (donors, non-profit entrepreneurs), (2) one single factor or (3) one single country. To quantify this approach, data for 38 countries have been used, extracted from World Values Survey, United Nations Development Program and Global Entrepreneurship Monitor. A structural modeling approach based in partial least squares (PLS) has been applied. The results provide evidence of the strength of environmental factors such as trust, economic development and social care public expenditures in non-profit activity. The model doesn’t confirm the existence of a positive relationship between entrepreneurship and non-profit activity. Nevertheless, the authors consider that the supply side theories and the idea of spatial production of entrepreneurship are quite consistent and find some signs evidencing a positive relationship between these variables.

Drivers of non-profit activity: a cross-country analysis

Purpose – The aim of this paper is to contribute to knowledge on innovation from a gender perspective, and to investigate how environment affects the process of innovation by women Design/methodology/approach – The empirical study uses a Structural Equations Model of a Partial Least Squared (PLS) technique Data of 40 countries from around the world were collected from 2008 Findings – Institutional environment matters for innovative activity by women An innovative thinking is required for integrating the gender perspective in innovative milieus in order to enrich, diversify and promote stronger innovation activities, mobilising unexploited opportunities for managers in the business sector, and for policy makers in the public one Research limitations/implications – A new sex-disaggregated dataset will allow us to enlarge and improve upon this study A longitudinal study would be extremely useful, but for the moment, there are no available data of this kind Practical implications – Policies designed to

Gender gap in innovation: an institutionalist explanation

Specialized literature shows that internationalization, innovation, and entrepreneurship have positive effects on economic growth. Moreover, there is a positive relationship between them. In addition, female entrepreneurship is a key contributor to economic growth, not only by its creation of wealth and employment, but by the diversification of entrepreneurial activity. Nevertheless, evidence shows that female entrepreneurs are less likely to export and to participate in research and technology. The goal of this chapter is to contribute to the knowledge of entrepreneurial behavior, separating by gender. Special attention will be given to the gender-related differences in innovation and internationalization of entrepreneurs. To achieve this goal, we use a dataset of 42 countries from 5 continents that participated in Global Entrepreneurship Monitor in 2008. This study is an original large-scale empirical study about gender and entrepreneurial performance, focused on innovation and internationalization.

Women Entrepreneurship, Innovation, and Internationalization

Usually moral conscience has been forgotten after the individualist and utilitarian analysis. However, many people guide their behavior by a value system that is sensitive to social problems, such as equilibrium with nature, respect of human rights, and the equality of opportunities. People have the power to change the society: As consumers and as savers. As savers, people have the opportunity to choose, in financial markets, between institutions and products. In this paper, we will summarize the economic trends that observe a moral conscience in humans. Then, we will analyze if this moral conscience can have a translation in the financial sector. Can ethical banks and investment funds survive in the competitive financial sector? Can moral conscience be incorporated into financial business?

Inmaculada Carrasco

Papers

Corporate Social Responsibility, Values, and Cooperation

Drivers of non-profit activity: a cross-country analysis

Gender gap in innovation: an institutionalist explanation

Women Entrepreneurship, Innovation, and Internationalization

Ethics and Banking