Showing papers on "Purchasing power published in 2012"

Financial crisis and global imbalances: its labour market origins and the aftermath

Abstract: The objective of this paper is to articulate how the 2007--09 economic crisis is rooted in the uneven income distribution and inequality caused by the current finance-led model of growth. The process of financialisation that took place in the 1980s in the USA and then in the European Union was coupled with labour flexibility, wage moderation and soaring profits. The flexibility agenda of the labour market and the end of wage increases, along with the contraction of indirect wages (i.e. public social expenditure), diminished workers' purchasing power. This was partly compensated with increased borrowing opportunities and the boom of credit consumption, all of which helped workers to maintain unstable consumption capacity. However, in the long term, unstable consumption patterns derived from precarious job creation, job instability and poor wages have weakened aggregate demand. Hence, labour market issues such as flexibility, uneven income distribution, poor wages and the financial crisis are two sides of the same coin. Both have a direct impact on the economic crisis and the current global imbalances. Copyright The Author 2012. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.

In from the Shadow: Integrating Europe's Informal Labor

Abstract: This book is about Magda and Jacek and millions of others like them, who earn a living working full- or part-time in Europe's untaxed markets for goods, services, and labor. Magda was certified as a hairdresser years ago, and she's very proud of the salon apprenticeship she did shortly after. She learned a lot and made good friends but was never fully comfortable working for somebody else. Jacek's clients pay him in cash, and he pays his men in cash as well. He sometimes needs to show a license to get the trade price on parts and materials. But he can keep it up-to-date by declaring only part of what he actually earns to the tax office. This book ventures a general conclusion about what policy makers can do to bring more economic activity in from the shadow: Although it may be necessary to improve the structural incentives created by taxation, social protection policies, and labor market regulation, doing so is not sufficient for substantive improvement to be achieved. To back up this general conclusion, the book presents a large body of evidence indicating that much more than the fairly mechanical incentive structures of taxation, social policy, and labor market regulation is at work in shaping the circumstances that lead people into the shadowy unregulated and untaxed markets for goods, services, and labor.

Contribution of Agricultural Exports to Economic Growth in Pakistan

Abstract: The main objective of the present analysis is to explore and quantify the contribution of agricultural exports to economic growth in Pakistan. We have estimated the relationship between Gross domestic product (GDP) and agricultural and non agricultural exports for Pakistan employing Johansen co-integration technique for the period 1972 - 2008. The findings of the study show that the agricultural exports have negative and significant effect on economic growth while agricultural exports elasticity is 0.58. Moreover there is bidirectional causality in agricultural exports and real GDP. It is suggested that non agricultural exports should be promoted. 1. Introduction The most important and crucial aim of the underdeveloped countries is rapid economic growth and development and exports are generally perceived as an engine for economic growth. The desire for rapid economic growth in underdeveloped countries is attained through more trade. There is no shortage of empirical and theoretical studies regarding the role of exports in raising the economic growth and development. The classical economists like Adam Smith and David Ricardo have argued that international trade is main source of economic growth and more economic gain is attained from specialization. According to the export led growth hypothesis, exports are the major source of economic growth, has many theoretical justifications. First, in Keynesian theory more exports generate more income growth through foreign exchange multiplier in the short run. Second, Export raises more foreign exchange which is used to purchase manufactured goods, capital goods and technology. These things contribute to economic growth. Third, exports indirectly promote growth via increased competition, economies of scale, technological development, and increased capacity utilization. Fourth, many positive externalities like more efficient management or reduction of organizational inefficiencies, better production techniques, positive learning from foreign rivals and technical expertise about product design are accrued due to more exports, lead to economic growth. Pakistan is considered the 27 th largest economy of the world because of more purchasing power albeit an underdeveloped country. The mainstay of Pakistan's economy is agriculture sector. Pakistan's major exports comprises on agricultural produce like wheat, rice, cotton, and other main crops. According to economic survey of Pakistan (2009 - 10), there exhibits a mixed picture of a comparative analysis of product wise shares in

The Impact of Publicly Provided Services on the Distribution of Resources

Abstract: This paper looks at how the income distribution in countries changes when the value of publicly-provided services to households is included. We consider five major categories of public services: education, health care, social housing, childcare and elderly care. On average across OECD countries, spending on these "in-kind" benefits accounts for about 13% of GDP, slightly more than the spending on cash transfers – but with considerable cross-country variation. Broadening the income concept to account for in-kind benefits considerably increases households’ economic resources: in a typical OECD country, the average annual household income would be close to USD 28 000, rather than USD 22 000 in purchasing power parities. But public services also contribute to reducing income inequality, by between one-fifth and one-third depending on the inequality measure. Mexico and, according to most inequality measures, the United States, Portugal, Ireland, and the United Kingdom record higher reduction rates, while Slovenia records lower ones. Across all countries, redistributive effects are stronger among specific population groups at higher risk of poverty. Between 2000 and 2007, the redistributive impact of public services remained stable overall. However, the impact became stronger in countries where the share of services in household income increased significantly, while it weakened in those countries where this share decreased. The paper suggests that publicly provided services fulfil an important direct redistributive role in OECD countries.

Calculating Rural-Urban Food Price Differentials from Unit Values in Household Expenditure Surveys: A Comparison with Existing Methods and A New Procedure

Abstract: While purchasing power parity (PPP) between countries has received a great deal of attention, PPP calculations within countries have received less attention. The idea that one unit of currency has the same purchasing power in all regions in large countries is false. This paper addresses this limitation by proposing a methodology for calculating rural-urban PPP in India. The paper introduces a concept of item-specific PPP that exploits the analogy with an item-specific equivalence scale. The methodology relies on demographically-varying preferences to estimate PPP. The results underline the need to incorporate spatial differences in PPP calculations in countries with heterogeneous preferences. Copyright 2012, Oxford University Press.

Financialization, neo-liberalism, and securitization

Abstract: The financial crisis can be explained as the ultimate result of the gradual move towards neoliberal policies and the acceptance of neoliberal economic theories. The purchasing power of ordinary workers and consumers has been constrained by the evolution of six economic features: environmental issues, globalization, sound finance, the focus of central banks on inflation, and the new views on corporate governance, based on shareholder value and money manager capitalism. The generalization of securitization also played a large negative role—a role that was not well identified by heterodox economists.

Happy in the Service of the Company: The Purchasing Power of VOC Salaries at the Cape in the 18th Century

Abstract: This paper contributes to the debate on the level and trajectory of welfare at the Cape of Good Hope during the 18th century. Recent scholarship (for example, Allen 2005) has calculated and compared the levels and evolution of real wages in various European and Asian economies since the early modern period. To this literature we add evidence for unskilled and skilled workers of the Dutch East India Company at the Cape of Good Hope during the 18th century, following De Zwart (2009; 2011), who recently presented evidence for unskilled workers in the Cape for the latter half of the 17th century and the 18th century. We calculate job-specific real wages in a three-step argument; from the narrowest international comparison of wage rates in terms of silver content to one based on a basket of widely consumed goods. This paper adds to this literature by adapting the consumption basket for local circumstances (due to both diet and relative prices) and the comparison for local demographics. We also provide a broader range of comparative statistics on real wages. Finally, we add the real wages of skilled workers to the comparison of unskilled workers offered in the literature to date. While the paper is based on real wages for VOC officials the mechanism we identify as the cause of this rising prosperity (sustained lower prices of consumption goods) would have raised the prosperity of all colonists at the Cape.

Towards a European Union Child Basic Income? Within and between country effects

Abstract: This paper explores the within and between country distributional implications of an illustrative Child Basic Income (CBI) operated at EU level. Using EUROMOD, we establish that a universal payment of €50 per month per child aged under 6 could take 800,000 children in this age group out of poverty. It could be financed by an EU flat tax of 0.2% on all household income, assuming that it would also be taxed nationally as income. Most member states and virtually all families with children aged under 6 would be net gainers. We simulate two versions of EU CBI, with the benefit rate of €50 per month adjusted or not for differences in purchasing power between member states. In general, fiscal flows between member states, and also poverty reduction, would be smaller under the adjusted version. The political feasibility of such a scheme might be questioned, especially within the net contributor countries. Nevertheless, for those seeking ways to strengthen solidarity across national boundaries, a scheme supporting the incomes of families with young children, wherever in the EU they might reside "could be a demonstration of the EU's commitment to children, to the future" (EC 2012a: 62).

The Opportunities and Challenges of FDI in Retail in India

Abstract: The spectacular and unprecedented growth of FDI in the global economic landscape over the last two decades has made it an integral part of the development strategy of both the developed and developing nations. It acts as a major catalyst in the development of a country through up-gradation of technology, managerial skills and capabilities in various sectors. Rise in purchasing power, growing consumerism and brand proliferation has led to retail modernization in India. The growing Indian market has attracted a number of foreign retailers and domestic corporate to invest in this sector. FDI in the retail can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers and suppliers (farmers). Oppositions have raised concerns about employment losses, promotion of unhealthy competition among organized domestic retailers resulting in exit of small domestic retailers from the market and distortion of urban cultural development. The present paper focuses on the overview of the Indian retail sector along with the opportunities of expansion of FDI in retail in India and the major challenges that it faces.

Designing online deals leveraging collective buyer purchasing power in online marketplace

Abstract: A market system in which buyers and sellers design deals for goods and services, and buyers attain discounts by leveraging their collective purchasing power. Buyers or sellers can design a new deal (“proposed deal”), which is then broadcasted to other system users, inviting buyers to join the purchasing pool and informing relevant sellers of a possible business opportunity. The seller meets contractual terms with the purchasing pool or a segment of the purchasing pool (“deal acceptance”) at which point transactions are executed at the designated price cut (“deal consummation”). The system facilitates the processes of initiating the right deal at a realistic discount, accumulating group-buying power, negotiating terms, and closing the deal. The system also registers buyer and seller information, monitors transactional and browsing history, and records various rates of conversion from deal participation to actual purchases. This data is analyzed and available as an informational service to market participants.

Pentingnya profesi wirausaha di indonesia

Abstract: Entrepreneur is a subject that has been widely discussed because it has long been recognized to have played a significant role in not only increasing one’s income but more than that it has been noted to improve people’s quality of life and nation’s prosperity as it has been shown in the experiences of many developed and developing countries such as Malaysia, Singapore, Taiwan, Hongkong, Japan, South Korea, the United States of America, and most of European countries. At present governments of those countries are providing a great deals of attention and efforts to increase number of entrepreneurs in these countries including Indonesian Government. As noted in this article that it requires at least 2% of a country’s population are entrepreneurs to reach a prosperity level of a country and to increase purchasing power of the population. Those experiences have led many experts and governments in many countries are very keen to study nature and characteristics of entrepreneurs and looking for right answers to questions as to why is it so important to be an entrepreneur?, why society need entrepreneur?, and what are the elements of becoming successful entrepreneurs?. Answers to these questions will be found in this article. But what interest to some quarters to note is that (1) successful entrepreneur are characterized as to have strong willingness to take risk and to undertake strategic changes as required to make progress, and (2) there are specific skills such as skills to produce products and services, to market, and to calculate cost and profit quickly required by any successful entrepreneurs.

The Growing Economic Power of Cities

Abstract: Amid the gloomy context of the global recession, there is a ray of light: a massive wave of urbanization propelling growth throughout the developing world. By 2025, many of the six hundred cities expected to generate 60 percent of global GDP growth will be in the South and especially the East. The group will not just contain well-known megacities but a new breed of dynamic "middleweights"--midsized cities that are among the most powerful forces for global growth today. The rise of emerging-market cities is significant because these urban centers are proving to be the world's economic dynamos, attracting workers and productive businesses. This article explores the rise of both middleweight cities and megacities in the developing world. Drawing lessons from cities that have successfully blazed the trail to urbanization, the authors will demonstrate how local governments can impact the scale and speed of economic development in their regions and how private investment in buildings and infrastructure today will shape the global economy in future decades. Today, world economic growth faces a number of powerful negative forces. Rapidly rising levels of public and private debt in developed economies have led to a prolonged period of deleveraging, depressing consumption. After decades of decline, volatile resource prices are squeezing the purchasing power of households and increasing costs for businesses. Aging populations in the United States, Europe, Japan and China are causing the global demographic dividend to decline-sucking even more vigor out of consumption and growth. (1) However, the massive wave of urbanization rolling across the developing world is counteracting these headwinds. (2) For instance, the scale and pace of urban expansion in Asia are unprecedented. More than half of the global population lives in cities today, according to the United Nations. By 2025, more than half of the world's urban population--two-and-a-half billon people--will live in Asian cities. (3) By that date, the number of urbanites in India and China will, respectively, double and triple that in the United States. China's economic transformation, driven by urbanization and industrialization, is happening at a hundred times the scale of transformation seen in Britain, the world's first country to urbanize, and in just one-tenth of the time. (4) CITIES AS ECONOMIC DYNAMOS For centuries, cities have offered higher standards of living than rural areas. (5) Economists estimate that from the birth of cities until at least the Industrial Revolution, the average income of city dwellers ranged from one-and-a-half to three times that of their rural counterparts. (6) In China and India today, average urban incomes are roughly three times greater than rural incomes (Figure 1). This income gap reflects both the capacity of cities to attract skilled workers and productive business and the capacity of economies of scale to reduce the cost of supplying basic services and enable workers in cities to be more productive. (7) Cities--and particularly large cities with populations of 150,000 or more--can reduce the average costs of delivering basic services. Research performed in India by the McKinsey Global Institute (MGI) has found that it is 30 percent to 50 percent less expensive for cities to deliver basic services like water, housing and education than it is for sparsely populated rural areas (Figure 2). This is because large cities can deploy common supply depots to decrease distribution costs. They also tend to be magnets for highly skilled, productive businesses. For instance, financial services often cluster in regionally established financial centers; nearly 95 percent of global-equity market capitalization is based in twenty-four cities (Figure 3). [FIGURE 2 OMITTED] Companies often recognize higher-profile international cities far sooner than smaller, lesser-known cities. For example, the Polish capital, Warsaw, is a highprofile city that capitalized on its integration into the European Union and soon became the entry point for foreign investors looking for opportunities in Poland. …

Relationships among Export, Fdi and Growth in India: An Application of Auto Regressive Distributed Lag (Ardl) Bounds Testing Approach

Abstract: INTRODUCTION India is an interesting and increasingly important case for the study of relationship among growth, Trade and Foreign Direct Investment. India is the second largest country in the world, with a population of over 1.123 billion (in 2007) which is more than one-sixth of all the people in the world. The output of India accounts for almost 8% of global GDP when measured appropriately. In particular, when National Income is measured using PPP (purchasing power parity) reflecting the actual purchasing power of a country's currency, India is fourth after the US, China, and Japan (with PPP GNI $3078.7 billion compared to only 2782.7 billion for Germany in the fifth position and $4,420.6 for Japan in the third position in 2007: see World Development Report 2009). Moreover, India alone has accounted for roughly one fifth of global GDP growth in the last five years. During the period between 2000 and 2007, the growth rate of Indian Economy was an impressive 7.8% per year compared to only 3.2% for the world, only 2.4% for High Income, only 4.3% for upper middle Income, and only 5.6% for low Income countries (World Development Report, 2009). India is fast catching up in overall growth with the champions, the East Asia and Pacific region countries, which have so far been ahead and above (8.9% during this period). Relatively low wages and vast reservoir of trained manpower make India a natural destination for foreign direct investment (FDI). Until recently, however, India has attracted only a small share of global FDI, primarily due to government restrictions on foreign involvement in the economy. But beginning in 1991 and accelerating rapidly since 2000, India has liberalized its investment regulations and actively encouraged new foreign investment: a sharp reversal from decades of discouraging economic integration with the global economy. India's recent liberalizations and foreign investment de-regulations have generated strong interest by foreign investors, turning India into one of the fastest growing destinations for global foreign direct investment (FDI) inflows. Foreign firms are setting up joint ventures and wholly owned enterprises in various services and manufacturing sectors. Net foreign direct investment (FDI) flows into India reached $22.8 billion in 2007, more than five times the $4.0 billion recorded during 2001. In 2008 it is recorded to jump to $34.4 billion. India has emerged as the second most attractive destination for FDI after China and ahead of the US, Russia and Brazil. According to the News report published in October 2009 by the Trade Council of Denmark, India achieved a stunning 85.1% increase in foreign direct investment flows in 2008, the highest increase across all countries, even as global flows declined by 14.5%, says the findings (quoting a recent UNCTAD study--Assessing the impact of the current financial and economic crisis on global FDI flows). Similarly, export volume has increased from a mere $16.6 billion in 1990 to $ 163.1 billion in 2008 (an increase of over 1000 % in 18 years!). Policy makers and Research scholars have been touting this impressive export and FDI growth in recent decades as the vehicles for India's accelerated growth in the recent years and possibly in decades to come. In the last two decades there have been several studies on such relationships investigating Export led or Foreign Investment led growth in India, but all suffer from methodological issues. Most studies ignore the time series nonstationarity properties of these macro variables which can lead to spurious Regressions and Correlations. Some do investigate the nonstationarity properties but then perform the Granger Causality Tests using simple VAR or VECM or Johansen-Juselius cointegration procedures with the exception of Shirazi and Abdul-Manap (2005), which does not include FDI. But Toda and Phillips (1993) have provided evidence that the Granger causality tests in error correction Models (ECMs) still contain the possibility of incorrect inference and suffer from nuisance parameter dependency asymptotically (Lutkephol 2004, p. …

Food Prices, Government Subsidies and Fiscal Balances in South Mediterranean Countries

Abstract: Soaring food and energy prices sparked the revolts in Northern African countries at the end of 2010. Despite government subsidies, consumer price inflation rose, which reduced consumers’ purchasing power. This article empirically investigates the impact of world food prices on inflation and government subsidies for Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the occupied Palestinian territories and Tunisia during the ten-year period 2002-2011. Our findings show an asymmetry in the response of consumer price inflation to world food price shocks, in that soaring world food prices made inflation rise fast while nominal rigidities prevented inflation from falling. Moreover, this paper shows that government balances deteriorated up to 2% of GDP in 2008 and 2011 due to the incremental government food subsidies while they hardly improved in value terms when world food prices sharply fell in 2009.

Trends in Natural Resource Commodities: Statistics of Prices, Output, Consumption, Foreign Trade, and Employment in the United States, 1870-1957

Abstract: With the publication of this volume Resources for the Future, Inc. has been the analogue of the National Bureau of Economic Research as far as providing basic data to researchers in the natural resource field is concerned. The authors have compiled time series spanning 88 years of the basic economic variables-price, output, consumption, foreign trade, and employment-covering about 90 percent of the natural resource commodities of the United States. In addition, they have provided standard series of population, Gross National Product, price indexes, etc., to be used for purposes of comparison and adjustment. The mere availability of this basic data-495 pages of it-is sufficient to justify a place for Trends in Natural Resource Commodities on the shelves of many research organizations. Messrs. Potter and Christy have also prepared summary charts for 32 of the most important commodities. In these logarithmic vertical scale charts, deflated price, the ratio of employment to output, per capita output and per capita consumption are plotted against time to give the reader a method of determining quickly the relative changes which have taken place since 1870. The commodity prices have been deflated by the Bureau of Labor Statistics wholesale price index in an attempt to compensate for variations in the purchasing power of money. In this reviewer's opinion, however, the series of charts would have been even more useful if a graph of the actual, non-deflated prices had also been included. Variations in the deflated price can occur with the market price remaining constant if the wholesale price index changes. In order to provide a reference standard, the employment-output ratios for each commodity are computed relative to the employment-output ratio in manufacturing for that year. The more casual reader is likely to be most interested in the first few pages which contain the "Highlights of the Data". Here, the authors have aggregated the commodities into the categories of agricultural, mineral, and forest products and calculated various indexes for these categories. The resulting movements of price, output, consumption, foreign trade and employment in these resource sectors are presented in easy-to-read charts such as the one reproduced below.

Accounting for Unrepresentative Products and Urban-Rural Price Differences in International Comparisons of Real Income: An Application to the Asia-Pacific Region

Abstract: The International Comparisons Program (ICP) run by the World Bank compares the purchasing power of currencies and real income across countries. Using a unique data set consisting of over 600,000 ICP price quotes drawn from nine countries in the Asia-Pacific region, we consider a number of ways of improving the basic heading price indexes that form the building blocks of ICP. In particular, we show how the results can be adjusted to take account of unrepresentative products, urban-rural price differences and differing outlet-type mixes across countries. We also consider the plausibility of the most striking result that emerged from ICP 2005 – that China came out 40 percent smaller than previously thought. Our results suggest that part of this discrepancy can be attributed to excessive sampling in China of unrepresentative products in urban locations.

The Determinants of Output Expansion in the Nigerian Manufacturing Industries

Abstract: The study investigates the determinants of output expansion in the Nigerian manufacturing industries between 1980-2010. OLS method was adopted and important determinants were detected. One of the important findings of the preceding analysis is that inflation rate plays the highest significant role in explaining manufacturing output expansion between 1980 -2010. Any policy measure that can curb inflation will surely increase output. Real GDP and per capita real GDP have positive and significant roles to play in the manufacturing output expansion. The inverse relationship between output expansion and capacity utilization in manufacturing is not surprising. Low demand due to ineffective purchasing power caused by inflation will result into excess capacity. A negative relationship between this variable and manufacturing output expansion is not surprising, simply because, if inflation is growing there will be higher prices which could increase the value of output at the expense of lower capacity and lower demand. The significance of the study lies on the fact that if the determinants of output expansion in the manufacturing industries are known, then, policies could be introduced to take care of them and thereby strengthened the position of the manufacturing sector. This could lead to output expansion and employment generationKeywords: manufacturing, capacity utilization, labour supply, export, competitiveness(ProQuest: ... denotes formulae omitted.)INTRODUCTIONManufacturing plays a dominant role among other sectors of the economy. It signifies modernization in terms of production and distribution. This singular sector has many dynamic benefits that are crucial for economic transformation. It is one of the sectors where forward and backward linkages can effectively take place. According to Ogwuma (1995), the manufacturing sector has a wider and more effective linkage among different sectors. This sector also create investment capital at a faster rate than any other sector of the economy. In terms of its contribution to GDP, the manufacturing sector is very important.Early effort in the manufacturing sector were actually oriented towards the adoption of an import substitution strategy in which light industries and assembly related manufacturing ventures were embarked upon by the former colonial masters companies. Being a leading sector in any economy, this position must be maintained. To maintain it will depend on the productivity of this sector, the level of output and its competitive position. The focus of this study is on the determinants of output expansion in the Nigerian manufacturing sector. The objective is to determine those factors that the determine output expansion, whereby improvement could be recommended for greater output in this sector. The whole essence is to promote economic development at national level.The structural Adjustment Programme (SAP) which was introduced in 1986 by the Nigerian government was partly designed to address some of the problems of the manufacturing sector. The aim was to revitalize the manufacturing sector by shifting emphasis on the domestic sourcing of inputs by this sector. A way of motivating the sector to adopt this strategy, incentives were given to firms that comply. These incentives included monetary and fiscal incentives. Looking at the manufacturing sector over the years, it could be seen that the contribution of the sector in terms of its shares in GDP has been relatively low recording in 1970 (9%) in 1980 (10%) in 1990 (8%) in 1998 (6%) in 2004 (3.7), in 2008 (4.9).The capacity utilization fell below54% in 2008 and 2010 respectively. (CBN documents).OBJECTIVE OF THE STUDYThe main objective of this study is to establish those determinants of manufacturing output expansion and also to determine the extent of the impact of each of the determinants of manufacturing output performance.LITERATURE REVIEWThe importance of manufacturing can be examined from various angles. …

Optimal Fiscal Devaluation

Abstract: We study fiscal devaluation in a small-open economy with labor market search frictions. Our analysis shows the key role of both dimensions in shaping the optimal tax scheme. By reducing labor market distortions, the tax reform is welfare-improving. Yet, as it makes imports more expensive, fiscal devaluation lowers the agents' purchasing power, which is welfare-reducing. These contrasting effects give rise to an optimal tax scheme. Besides, transition matters. If the economy is better off in the long run, the required transitional saving effort increases the cost of the reform, thereby calling for a moderate magnitude of fiscal devaluation.

International comparisons of cost and productivity in construction: a bad example

Abstract: In a report published in June 2012 the Business Council of Australia (BCA) reported that it costs considerably more to build a variety of types of infrastructure in Australia than it does in the US. Airports (90% more costly) and hospitals (62%) were quoted as the worst cases with other projects ranging from 26% to 43% more. They used these figures to conclude that Australia is a high cost, low productivity environment for building infrastructure projects. These claims were based on cost/m2 figures published by a major international construction consultancy. The method used by the BCA is flawed in two ways: one is the in the use of costs that are recognised as giving only the broadest of indications of probable costs and the second is the use of exchange rates to convert Australian construction costs to US dollars. Careful analysis of the methodology used, supported by a series of other comparisons based on other data sources and other conversion factors (purchasing power parities or PPPs), suggests that in real terms it probably costs no more to build in Australia than it does in the US and that it may well be cheaper to build in Australia than it is in the US.

The Aggregation Problem in the Employment Theory: The Representative Individual Model or Individual Employees Model?

Abstract: Employment theory does lacks a consensus concerning whether employment variation should be expressed as a change in the hours worked as a representative individual or as a change in the population of employed individuals. By appling the OLG model developed by Lucas [1] and Otaki ([2-4]), the present article describes a serious theoretical conesquence of distinction. The crucial factor that different employment theories are the intertemporal substitution effect and the indivisibility of labor force. Monetary expansion increases the rate of return for money if it is credible in the sense of Otaki [5]. This enhances the hours worked in the representative individual model, and thus, aggregate supply causes demand. Conversely, in the indivisible employees model, such an intertemporal substitution effect does not exist. The monetary expansion directly improves the purchasing power of money and thereby increases the aggregate demand for goods by the older generation. Thus, demand derives supply.

The determinants of and barriers to critical consumption: a study of Addiopizzo

Abstract: ‘Addiopizzo’ (Goodbye protection money) is a grassroots anti-mafia movement based in Palermo that stresses the individual consumer's responsibility for maintaining the Sicilian mafia's pizzo system. If you purchase products from a business that pays the pizzo you are indirectly supporting the mafia. By encouraging Palermitans to buy from ‘pizzo-free’ businesses, Addiopizzo uses the purchasing power of the consumer to fight organised crime. The community of ‘pizzo-free’ businesses is small but steadily growing whilst the number of critical consumers pledging to buy their products appears to have peaked. This article aims to investigate the reasons why consumers may be reluctant to support ‘pizzo-free’ businesses by asking those who have already made public their decision to do so. Whilst critical consumers cannot fully explain why the majority of Palermo's citizens continue to tolerate the pizzo system their attitudes towards them do highlight differences that may help to account for wider non-participatio...

Trends, Realities and Prospect of Housing Delivery through Mortgage Financing in Nigeria

Abstract: Housing is one of the basic human needs. This accounts for the value and the attention given to it in all countries of the world. In Nigeria, it is noted as an integral part of every Nigerian‟s dream, thus, high premium is placed on it as a measure of success and economic freedom. Housing is perceived and actually seen as a long term investment that gives a hedge against high inflation. But the nonavailability of public land for housing in order to meet the demand of ever increasing population of the country is building up tremendous pressure on the built environment. High cost of materials; inflation induced decreased purchasing power and lack of public and corporate finance in the sector can be considered as the most significant reasons among others. Finance, however, is the major hindrance to effective production or acquisition of affordable housing especially among the low and medium income earners in Nigeria. This paper reviews the trends of housing delivery in Nigeria through the intermediation of mortgage financing system. It discusses the challenges, proffers probable solutions as well as proposes recommendations for strategic repositioning of mortgage institutions for effective housing delivery in Nigeria.

Prospects and Problems of Indian Rural Markets

Abstract: In recent years, rural markets have acquired significance, as the overall growth of the economy has resulted into substantial increase in the purchasing power of the rural communities. Rural Markets are defined as those segments of overall market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labor economics. Typically, a rural market will represent a community in a rural area with a population of 2500 to 30000. On account of green revolution, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing has emerged to satisfy the needs of rural consumers. Hence, it is proposed to undertake this study to find out various ways to tap the potential rural markets. The main aim of this study is to observe the potentiality of Indian Rural Markets and finding out various problems are being faced by rural markets. This paper attempts to provide a brief literature on rural marketing and finally offers policy recommendations for better performance of rural markets by adopting SWOT analysis matrix to rural markets.

Distributional impacts of greenhouse gas emissions trading: alternative allocation and recycling strategies in california

Abstract: I. INTRODUCTION Thirty U.S. states have completed or are in the process of drafting climate action plans. Emissions trading, or "cap and trade," features are integrated into most of these plans, including collaboration among states in regional greenhouse gas (GHG) trading consortia (Regional Greenhouse Gas Initiative--RGGI 2007). Forward movement has been slowed by the current recession, but cap and trade remains attractive to many state governments because it provides a much-needed source of additional revenue when GHG emission allowances are auctioned to the highest bidder. Revenues can be used for a variety of purposes such as cutting state budget deficits, offsetting existing distorting or burdensome taxes, investment in research and development of clean technologies, and compensating key groups adversely affected by the policy. The distributional impacts of policy alternatives are important for two reasons. First is the normative goal of equity, or fairness. Of special concern is the impact of GHG mitigation on low-income households because they tend to be more vulnerable to economic losses. Lower income groups spend a higher proportion of their income on necessities, such as electricity and gasoline, and these goods are among those most likely to have their prices affected by climate policy (Parry and Williams 2010). Revenue recycling can help overcome negative income impacts. Second, distributional impacts are important for reasons of positive economics of predicting the outcome of the policymaking process (Parry and Williams 2010; Rose, Stevens, and Davis 1988). This perspective typically shifts many policy makers' attention to powerful special interest groups. It has led to greater willingness to consider the free granting of GHG emission allowances to emitters, mostly businesses. A fairness aspect arises here as well in that many emitters see free granting as a way of compensating them for potential economic losses from undertaking GHG mitigation. The distributional impacts are complicated by the workings of climate action plans. GHG mitigation polices will have a major effect at the site of their implementation. Some of the options, such as energy efficiency, can result in cost savings directly to businesses, households, non-profit institutions, and government operations that implement them, and they can also provide gains to business and household customers if the savings are passed on in the form of lower prices. It is likely that other options will incur costs to businesses or households, thereby affecting their competitiveness or purchasing power. Many entities will try to recoup these cost increases by raising their prices and passing the burden on to their customers. Net impacts will be affected by various types of indirect effects stemming from economic interdependence. Increases in demand ripple through the economy generating a set of successive rounds of positive multiplier effects on suppliers. Cost savings are passed along to several rounds of customers to add further to the stimulus. Cost increases and decreases in demand in other sectors will have their own ripple effects on different sets of suppliers and customers. The interactive sum of all of these price and quantity effects for the entire economy represents a set of macroeconomic effects whose outcome cannot easily be predicted a priori. In this study, we analyze four GHG emission allowance allocation/recycling alternatives for the California Global Warming Solutions Act for the target Year 2020. We adapt the Regional Economic Models, Inc. (REMI) Policy Insight Plus (PI+) model (REMI 2010), and supplement it with a Multisector Income Distribution Matrix (MSIDM) to update and heighten the resolution of income distribution considerations. First, we examine the recycling of revenues through proportional income tax relief and a per capita dividend (lump sum transfer). Then we examine the distributional impacts of free allocation under conditions where the opportunity costs of free allowances can and cannot be passed on to purchasers of products generating the emissions. …

China Currency Appreciation Could Boost U.S. Agricultural Exports

Abstract: U.S. exports of soybeans and cotton to China have boomed in recent years, but the undervalued exchange rate for the Chinese yuan keeps prices of most other U.S. food and agricultural products more expensive than Chinese products. On average, Chinese retail food prices are about a fourth of U.S. prices. Land-extensive commodities like soybeans, cotton, corn, and wheat have relatively high prices in China, but soybeans and cotton are the only major crops that China imports in significant quantities. With an undervalued exchange rate China’s prices are not high enough to attract imports of grains or most livestock products. Appreciation of the Chinese currency would increase the purchasing power of Chinese consumers on world markets and increase China’s demand for imported commodities. However, Chinese policymakers are likely to maintain a cautious approach to currency appreciation, motivated in part by farm income and food security concerns.

Purchasing power of credit, social mobility, and economic mobility

Abstract: Lawrence P. Shao, Marshall University, Huntington, WV, USA Ralph E. McKinney, Jr., Aston University, Birmingham, United Kingdom Dale H. Shao, Marshall University, Huntington, WV, USA Because barriers to wealth and limitations on purchasing power have a negative effect on career mobility, individuals planning their careers need to understand the factors that may influence their long term job prospects and attainable career goals. This paper takes a qualitative approach to examine how purchasing power can limit social and economic mobility. While occupational choice provides a primary path to wealth accumulation and access to social networks, financial decisions and other influences can limit career, social, and wealth building opportunities.

MGNREGA: A Critical Assessment of Issues and Challenges

Abstract: Underlining the critical role played by the MGNREGA, this paper exemplifies the issues, challenges and significance of MGNREGA particularly in the context of rural India. Primary Data was collected using structured questionnaire from 153 respondents and Secondary Data has been used mainly from the official website of MGNREGA. The study makes a comparative analysis between the select fifteen states of the Indian Union and provides the framework for policy recommendation for the states with regard to various parameters. F Test indicates that there is a significant effect of social segment on participation rate. Three major issues (a) Governance; (b) Quality of Life; and (c) Wage and Productivity have been found as the most important factors after conducting the factor analysis. A rampant corruption found in many states has been highlighted even among the well performing states manifesting the potent flagship programme to be deceptive and skeptic about its functioning.MGNREGA has been proved to be the largest employment programme particularly for the rural India and has contributed towards the increase in purchasing power by being a major source of income for the bottom of the pyramid people in the Society. It has helped in solving problems of rural distress but a lot needs to be done. The wage rate should be increased and linked with inflation. I was also found that the minimum number of days should be increased from 100 to 180. Women have outperformed men in terms of productivity and their participation should be increased.

Purchasing in power asymmetry - A study of vaccine procurement for developing countries

Abstract: The purpose of this study was to increase the understanding of, and develop a model to explain, interrelations between purchasing strategies carried out by buyers within vaccine supply chains for developing countries and their buyer-supplier power structure. In the humanitarian aid context, availability of required goods (e.g. health related products) at the right time and place is of vital importance to the survival of recipients. For some aid products, buyers have to compete with several others with often, higher purchasing power. Other aid products, with relatively low demand, are usually unattractive for global manufacturers to produce. In addition, historically, developing countries and humanitarian organizations have been considered less powerful compared to their business suppliers. This has resulted in scarcity of supply for some products such as vaccines. With such requirements, ensuring a functioning market can be a complex process. Consequently, the question raised is how organizations and developing countries as buyers can absorb such constraints from the environment, and how they can affect the environment to achieve better availability of affordable products. So, in this study, purchasing strategies carried out by buyers of vaccines were studied, and their effects from, and impact on buyer-supplier power structures examined. The aim was to investigate the interrelation between these strategies and the power structure of buyers relative to their suppliers. A multiple case study design was applied. Seven cases representing different buyers and different purchasing strategies were selected. Cases represent three main sample groups of developing country buyers, humanitarian organizations, and industrial country buyers. Within the first sample group, countries self-purchasing and countries purchasing through humanitarian organizations were selected. Data was gathered using a combination of methods and from primary and secondary sources. The person(s) responsible for planning or procurement of vaccines for each case were interviewed (i.e. interviewed or in written form). Responses were triangulated with a combination of secondary data. Individual case analyses were combined to find patterns and deviations across cases. Findings were matched with theoretical suggestions to infer conclusions. Based on findings from the study a model is developed. In the developed model, it is proposed that buyers practice purchasing strategies in response to buyer-supplier power attributes and in line with overall organizations (or in this context country) strategy. Buyers plan an overall purchase strategy reflecting the organization / country strategy (Nollet et al. 2005). On the other hand, buyers plan and practice purchasing strategies in line with constraints rising from buyer-supplier power structures (Pfeffer and Salancik, 2003) to either absorb, attempt to change, or adapt to constraints. In turn, these practiced purchasing strategies impact power attributes, contributing to new and possibly changed power structures. Other external factors also impact II buyer-supplier power attributes and hence, power structures. Consequently, buyers have to set strategies according to changed buyer-supplier power attributes. From the results of the study we found that for a supply market with only few producers like that of vaccines, strategies that maintain or enforce such concentration are not advisable. Two examples found in this study are in practice of competitive bidding and pooling demand, which can limit the number of suppliers that can win contracts. It is more probable for suppliers with higher production capacities and higher experience to win contracts in practice of these strategies compared to new or smaller suppliers. Buyers are hence recommended to practice purchasing strategies that give way to new market entries, to have higher alternative sources of supply in the long run. Results of the study propose that in situations of high power imbalance between developing country buyers and their suppliers, it is unlikely for the buyer to attempt to change the power structure. It was observed that in such situations, buyers tend to tap into the purchasing process of intermediaries such as humanitarian organizations focusing on vaccine procurement. Based on the findings, we also proposed, that strategies aimed at securing funding and increasing legitimacy of working with humanitarian organizations positively impact the power structure for this group of buyers. (Less)

Foreign Direct Investment in Indian Retail Industry

Abstract: India is one of the largest budding markets, with a population of over one billion. India is one of the biggest economies in the world in terms of purchasing power. The market size of Indian retail industry is about US $312 billion Foreign direct investment has boomed in post-reform India. Moreover, the composition and type of Foreign direct investment has changed considerably since India has opened up to world markets. This has fuelled high expectations that foreign direct investment may serve as a channel to the higher economic growth of India. Foreign direct investment in trade has developed into the fresh theatre of war flank by the pro-reform and anti-reform lobbies. Foreign investors are extremely eager on charisma in Indian retail sector. Incontrovertibly, foreign direct investment in retail is budding as a sort of litmus trial to the government's pledge to liberalization. This paper is going to try to give a better view of what is the Retailing, what are the types of retailing, Retail trade in India also explains different polices of FDI in India, and role of FDI in Indian retail industry, benefits of FDI. This paper also tries to outline impact on country and State-wise Number of Workers Engaged in Retail Trade by Type of Enterprises in India.