John M. Luiz

Abstract: Summary Productive public expenditure in the area of infrastructure (such as roads, transportation, and housing) can play an important role in promoting economic growth and encouraging private investment. Developments in endogenous growth theory introduce the possibility of a productive role for public expenditure. This paper seeks to explain the relationship between investment in economic infrastructure and long-run economic growth by examining the experience of South Africa in a time-series context. The main findings that emerge from our examination of economic growth and economic infrastructure in South Africa may be summarized as follows: investment in infrastructure does appear to lead economic growth in South Africa and does so both directly and indirectly (the latter by raising the marginal productivity of capital); there is weak evidence of feedback from output to infrastructure; while the finding of an infrastructure growth impact is robust.

Abstract: This paper analyses long-term trends in the development of South Africa's economic infrastructure and discusses their relationship with the country's long-term economic growth. A database covering national accounts data, railways, roads, ports, air travel, phone lines and electricity was established for this purpose, and may facilitate further quantitative research. PSS (Pesaran, Shin and Smith, 1996, 2001) F-tests are used to identify directions of association between economic infrastructure and economic growth. These indicate long-run forcing relationships from public-sector economic infrastructure investment and fixed capital stock to gross domestic product (GDP), from roads to GDP, and from GDP to a range of other types of infrastructure. There is also evidence of potential simultaneity between specific types of infrastructure and GDP. The evidence suggests three main findings. Firstly, the relationship between economic infrastructure and economic growth appears to run in both directions. Inadequate investment in infrastructure could create bottlenecks, and opportunities for promoting economic growth could be missed. Secondly, South Africa's stock of economic infrastructure has developed in phases. Policymakers should focus on choosing or encouraging the right type of infrastructure at the right time. Thirdly, the need for investment in economic infrastructure never goes away. The maintenance and expansion of infrastructure are important dimensions of supporting economic activity in a growing economy, provided that individual projects are chosen on the basis of appropriate cost-benefit analyses. JEL: H54, L91, L92, L93, L94, L96, L98, N47, N77, E62

Abstract: This paper analyses various data on the South African schooling system since 1910. The data collected for the study cover a wide range of education indicators, from pupil enrolments, pupil teacher ratios, real expenditure (aggregate and per capita), matriculation pass rates, to some indicators of the quality of matriculation passes. The authors provide an indication of both inputs into and outputs of the educational system. In broad terms, the data indicate that from an educational perspective South Africa followed a modernisation trajectory that, although it drew ever larger numbers of pupils into the schooling system, was partial, distorted and fundamentally dysfunctional. The educational process was strongly affected by racial factors. To the extent that education is an important determinant of long run growth performance of economies, this implies that South Africa's educational policies were inimical to its long run growth.

Abstract: Les AA. etudient la relation qui unit croissance economique et capital social. Ils s'efforcent de definir cette derniere notion. Les societes disposent de structures normatives qui regulent la cooperation entre les individus. Les AA. se demandent s'il existe des formes sociales universelles et necessaires independantes du contexte historique et s'il existe des formes sociales specifiques appropriees aux differentes phases du developpement economique. Ils considerent que le capital social assure la «transparence» de l'interaction sociale. La rationalisation contribue a la formalisation des regles codifiees, des normes et des valeurs. Les AA. analysent le role de l'Etat dans la formation du capital social et de la culture politique. Ils decrivent de quelle maniere le capital humain peut affecter le developpement economique. Ils proposent une theorie du changement endogene du capital social

Abstract: NUDGE: IMPROVING DECISIONS ABOUT HEALTH, WEALTH, AND HAPPINESS by Richard H. Thaler and Cass R. Sunstein Penguin Books, 2009, 312 pp, ISBN 978-0-14-311526-7This book is best described formally as a general explanation of and advocacy for libertarian paternalism, a term coined by the authors in earlier publications. Informally, it is about how leaders, systems, organizations, and governments can nudge people to do the things the nudgers want and need done for the betterment of the nudgees, or of society. It is paternalism in the sense that "it is legitimate for choice architects to try to influence people's behavior in order to make their lives longer, healthier, and better", (p. 5) It is libertarian in that "people should be free to do what they like - and to opt out of undesirable arrangements if they want to do so", (p. 5) The built-in possibility of opting out or making a different choice preserves freedom of choice even though people's behavior has been influenced by the nature of the presentation of the information or by the structure of the decisionmaking system. I had never heard of libertarian paternalism before reading this book, and I now find it fascinating.Written for a general audience, this book contains mostly social and behavioral science theory and models, but there is considerable discussion of structure and process that has roots in mathematical and quantitative modeling. One of the main applications of this social system is economic choice in investing, selecting and purchasing products and services, systems of taxes, banking (mortgages, borrowing, savings), and retirement systems. Other quantitative social choice systems discussed include environmental effects, health care plans, gambling, and organ donations. Softer issues that are also subject to a nudge-based approach are marriage, education, eating, drinking, smoking, influence, spread of information, and politics. There is something in this book for everyone.The basis for this libertarian paternalism concept is in the social theory called "science of choice", the study of the design and implementation of influence systems on various kinds of people. The terms Econs and Humans, are used to refer to people with either considerable or little rational decision-making talent, respectively. The various libertarian paternalism concepts and systems presented are tested and compared in light of these two types of people. Two foundational issues that this book has in common with another book, Network of Echoes: Imitation, Innovation and Invisible Leaders, that was also reviewed for this issue of the Journal are that 1 ) there are two modes of thinking (or components of the brain) - an automatic (intuitive) process and a reflective (rational) process and 2) the need for conformity and the desire for imitation are powerful forces in human behavior. …

Abstract: Preface to the Second Edition Part 1: Philosophical Bearings 1. Aims and Strategy 2. The Underlabourer Conception of Philosophy 3. Philosophy and Science 4. The Philosopher's Concern with Language 5. Conceptual and Empirical Enquiries 6. The Pivotal Role of Epistemology in Philosophy 7. Epistemology and the Understanding of Society 8. Rules: Wittgenstein's Analysis 9. Some Misunderstandings of Wittgenstein Part 2: The Nature of Meaningful Behaviour 1. Philosophy and Sociology 2. Meaningful Behaviour 3. Activities and Precepts 4. Rules and Habits 5. Reflectiveness Part 3: The Social Studies as Science 1. J.S. Mill's 'Logic of the Moral Sciences' 2. Differences in Degree and Differences in Kind 3. Motives and Causes 4. Motives, Dispositions and Reasons 5. The Investigation of Regularities 6. Understanding Social Institutions 7. Prediction in the Social Studies Part 4: The Mind and Society 1. Pareto: Logical and Non-Logical Conduct 2. Pareto: Residues and Derivations 3. Max Weber: Verstehen and Causal Explanation 4. Max Weber: Meaningful Action and Social Action Part 5: Concepts and Actions 1. The Internality of Social Relations 2. Discursive and Non-Discursive 'Ideas' 3. The Social Sciences and History 4. Concluding Remark