Showing papers on "Purchasing power published in 2017"

Geographies of injustice: the socio-spatial determinants of energy poverty in Poland, the Czech Republic and Hungary

Abstract: Falling real incomes, rising utility prices and the historically poor thermal quality of the housing stock are some of the main factors that have driven the rise of systemic injustices surrounding energy poverty in the post-communist states of Eastern and Central Europe (ECE) We undertake a socio-spatial and temporal assessment of energy poverty in Hungary, the Czech Republic and Poland, using Household Budget Survey micro-data and the consolidated national results of the EU Survey of Income and Living Conditions Our results indicate that increases in domestic energy prices and expenditures during the last decade have not been offset by purchasing power gains or energy efficiency improvements, resulting in sustained and growing levels of energy poverty Capital city regions have fared better than rural areas even if traditional macroeconomic performance indicators do not easily match domestic energy deprivation metrics We thus question policy approaches that favour income-based solutions and fa

False Alarmism: Technological Disruption and the U.S. Labor Market, 1850–2015

Abstract: This report reviews U.S. occupational trends from 1850 to 2015, drawing on Census data compiled by the University of Minnesota’s demographic research program, the Minnesota Population Center, to compare the changes in occupational job levels from decade to decade. We also assign a code to each occupation to judge whether increases or decreases in employment in a given decade were likely due to technological progress or other factors. Overall, three main findings emerge from this analysis. First, contrary to popular perception, rather than increasing over time, the rate of occupational churn in recent decades is at the lowest level in American history — at least as far back as 1850. Occupational churn peaked at over 50 percent in the two decades from 1850 to 1870 (meaning the absolute value sum of jobs in occupations growing and occupations declining was greater than half of total employment at the beginning of the decade), and it fell to its lowest levels in the last 15 years — to around just 10 percent. When looking only at absolute job losses in occupations, again the last 15 years have been comparatively tranquil, with just 70 percent as many losses as in the first half of the 20th century, and a bit more than half as many as in the 1960s, 1970s, and 1990s. Second, many believe that if innovation only accelerates even more then new jobs in new industries and occupations will make up for any technology-created losses. But the truth is that growth in already existing occupations is what more than makes up the difference. In no decade has technology directly created more jobs than it has eliminated. Yet, throughout most of the period from 1850 to present, the U.S. economy as a whole has created jobs at a robust rate, and unemployment has been low. This is because most job creation that is not explained by population growth has stemmed from productivity-driven increases in purchasing power for consumers and businesses. Such innovation allows workers and firms to produce more, so wages go up and prices go down, which increases spending, which in turn creates more jobs in new occupations, though more so in existing occupations (from cashiers to nurses and doctors). There is simply no reason to believe that this dynamic will change in the future for the simple reason that consumer wants are far from satisfied. Third, in contrast to the popular view that technology today is destroying more jobs than ever, our findings suggest that is not the case. The period from 2010 to 2015 saw approximately 6 technology-related jobs created for every 10 lost, which was the highest ratio — meaning lowest share of jobs lost to technology — of any period since 1950 to 1960. Many believers in the inaccurately named so-called “fourth industrial revolution” will argue that this relative tranquility is just the calm before a coming storm of robot- and artificial-intelligence-driven job destruction. But projections based on this view — including from such venerable sources as the World Economic Forum and Oxford University — are either immaterial or inaccurate. Policymakers should take away three key points from this analysis: 1. Take a deep breath, and calm down. Labor market disruption is not abnormally high; it’s at an all-time low, and predictions that human labor is just one tech “unicorn” away from redundancy are likely vastly overstated, as they always have been. 2. If there is any risk for the future, it is that technological change and resulting productivity growth will be too slow, not too fast. Therefore, rather than try to slow down change, policymakers should do everything possible to speed up the rate of creative destruction. Otherwise, it will be impossible to raise living standards faster than the current snail’s pace of progress. Among other things, this means not giving in to incumbent interests (of companies or workers) who want to resist disruption. 3. Policymakers should do more to improve labor-market transitions for workers who lose their jobs. That is true regardless of the rate of churn or whether policy seeks to retard or accelerate it. Likewise, it doesn’t matter whether the losses stem from short-term business-cycle downturns or from trends that lead to natural labor-market churn. While this report lays out a few broad proposals, a forthcoming ITIF report will lay out a detailed and actionable policy agenda to help workers better adjust to labor-market churn.

Understanding the linkages between migration and household food security in India

Abstract: This paper argues for the need to integrate migration in future food policy research and practice and, in doing so, examines the role of internal migration as a livelihood strategy in influencing food security among rural households. Migration has become a key component of livelihood strategies for an increasing number of rural households across the developing world. Importantly, there is emerging consensus among academics and policy makers on migration's potentially positive effects in reducing poverty and promoting sustainable human development. Concurrently, the significance of the catch-cry ‘food security for all’ as an important development objective has been growing, particularly since the 2007–08 global food crisis. However, academic and policy discussions on these two issues have tended to proceed largely in silos, with little attention devoted to the relationship they bear with each other. Using primary survey data collected from 392 rural households from a district in western Bihar in India, this paper seeks to fill this gap in relational dynamics. It first reviews plausible reasons for this disconnect between migration and food security in the wider developing countries' context, and then draws on a primary survey of rural Indian households to provide empirical household-level insights on the linkages between people's movements and households' capacity to secure food. In particular, the paper focuses on the often-overlooked role of migrants' remittances for food security of rural households at points of origin. The findings show that, by equipping households with improved purchasing power and enabling investment in agriculture, remittances contribute positively to household food security.

A free lunch with robots – can a basic income stabilise the digital economy?:

Abstract: The discussion on the possible implications of the digital economy for labour continues unabated. An essential dimension of the discussion is the widely shared view that a basic income could guarantee sufficient purchasing power for unemployed, underemployed and precarious workers should technological unemployment and labour market insecurity increase. A budget-neutral basic income has serious limitations as an economic stabilisation grant, but if financing proposals are revised, these limitations can be tackled. Even though guaranteeing sufficient purchasing power for unemployed, underemployed and precarious workers does not necessarily require an unconditional universal benefit, it seems clear that traditional activation based on strict means-testing and obligations will not be a strategy flexible enough to guarantee sufficient consumer demand in fluctuating labour markets. An economically sustainable solution might be to reduce means-testing gradually and to study carefully the effects.

Cash Transfers and Child and Adolescent Development

Abstract: Poverty has significant, detrimental, and long-ranging effects on child development (Walker and others 2011). Programs and policies around the world have attempted to address poverty to improve outcomes for children and adolescents, and one popular approach is to use cash transfer (CT) programs (Engle and others 2011). CT programs support vulnerable populations by distributing transfers to low-income households to prevent shocks; protect the chronically poor; promote capabilities and opportunities for vulnerable households; and transform systems of power that exclude certain marginalized groups, such as women or children (Devereux and Sabates-Wheeler 2004). The economic rationale for CT programs is that they can be an equitable and efficient way to address market failures and reach the most vulnerable populations (Fiszbein and others 2009).When the provision of CTs is tied to mandatory behavioral requirements, they are conditional cash transfer (CCT) programs, which operate by giving cash payments to families only if they comply with a set of requirements (the “conditions” of the cash transfer), usually related to health and education (de Janvry and Sadoulet 2006). For example, many CCT programs distribute benefits conditional on the use of preventive health care services, attendance at health and nutrition education sessions designed to promote positive behavioral changes, or school attendance for school-age children (Barrientos and DeJong 2006; Lagarde, Haines, and Palmer 2007). Definitions of age groupings and age-specific terminology used in this volume can be found in chapter 1 (Bundy and others 2017).Unconditional cash transfer (UCT) programs are those in which families receive cash benefits because the household falls below a certain income cutoff or lives within a geographically targeted region; however, no conditions are tied to the transfer (Barrientos and DeJong 2006). Given that UCTs do not monitor the behavior of households or require visits to health clinics, these programs are operationally less complex and easier for governments to implement because they do not require a well-functioning health care sector. Thus, administrative costs are often substantially lower for UCTs than for CCTs. School feeding is an example of a noncash transfer and is discussed in chapter 12 of this volume (Drake and others 2017).Both CCTs and UCTs assume that parents are income constrained, and thus do not have the money to spend to meet the most pressing needs of their families (for example, nutritious food, medical treatment). Providing greater purchasing power allows parents to choose what goods to buy and in what quantity and of what quality. The economic rationale for conditioning transfers on certain behaviors is that individuals or households do not always behave rationally because they have imperfect information, they behave myopically, or there are conflicts of interest between parents and children (Fiszbein and others 2009). In addition, conditioning transfers on human capital creates positive externalities and usually has more political support. However, many argue that conditioning transfers is paternalistic and costly to monitor and that the neediest households might find it too costly to comply (Grimes and Wangnerud 2010; Handa and Davis 2006; Popay and others 2008; Shibuya 2008).Mexico’s Prospera (previously Progresa and Oportunidades) and Brazil’s Bolsa Familia were among the first CCTs to be designed in the late 1990s and have been models for programs throughout Africa, Latin America, and the United States (Aber and Rawlings 2011; Fiszbein and others 2009). By 2011, CT programs covered an estimated 750 million to 1 billion people worldwide; India (48 million households), China (22 million households), Brazil (12 million households), and Mexico (5 million households) were among the countries with the largest programs (DFID 2011). In spite of the common features of many CTs, there is a large degree of heterogeneity across countries and programs with regard to program benefits, conditions, requirements, payments, and targets. For example, in Ecuador and Peru, the transfer is a fixed payment per family per month that does not vary by household size, whereas in Brazil, Malawi, and Mexico the benefits depend on the number, age, and gender of children in the household. In some programs (for example, Prospera in Mexico and Familias en Accion in Colombia), the payment is greater for secondary-school-age children than for primary-school-age children. Similarly, the average transfer amount varies greatly, ranging from 6 percent in Brazil to 22 percent to 29 percent in Mexico and Nicaragua to 200 percent of pretransfer consumption in Malawi (Fiszbein and others 2009; Miller, Tsoka, and Reichert 2010). The size of the transfer reflects the goal of the program, which can be to move households to a minimum level of consumption (Colombia, Jamaica, Mexico) or to base the size of the transfer on the opportunity cost of health care (Honduras) or on the transportation costs to the public health facility (Nepal) (Gaarder, Glassman, and Todd 2010).This chapter first reviews the evidence from CT programs, both conditional and unconditional, throughout low- and middle-income countries (LMICs), focusing specifically on the direct effects on child and adolescent health and education outcomes. It then discusses the design of CT programs and why and how they could theoretically affect outcomes for young children and adolescents. Although there are other types of social safety net programs, such as voucher schemes, food transfers, and user fee removals, we focus on CTs because many countries are switching to such programs given that they are easier to distribute. In addition, the evidence for many other types of programs is too sparse for them to be included in the analysis.CT programs are hypothesized to improve child and adolescent outcomes via the family investment model, according to which families have more money to spend on inputs (Guo and Harris 2000; Yeung, Linver, and Brooks-Gunn 2002) or more time to spend with children (Del Boca, Flinn, and Wiswall 2014), and the family stress model, according to which maternal depression and stress are lower because household resources are higher (Mistry and others 2004).CCT and UCT programs can vary widely in their objectives, design, and context. While many programs have the broad goals of reducing poverty and improving human capital, some are more focused on decreasing poverty, some on improving education outcomes, some on improving health outcomes, and some on improving nutrition outcomes. Program designs reflect these differences in objectives with differences in conditions, targeting, transfer size, beneficiaries, and complementary components. Consequently, although CCT and UCT programs have the potential to effect multiple outcomes by lessening a household’s budget constraints, some programs and contexts may be better suited to improving child and adolescent health and education outcomes. For example, programs in a handful of countries are beginning to experiment with the integration of parenting support or nutritional support—a direct intervention to promote child development—within CT programs (for example, in Colombia, see Attanasio and others 2014; in Mexico, see Fernald and others 2016).The literature review proceeded as follows. We began by examining the conclusions in the 2011 Lancet series on early child development in LMICs (Engle and others 2011; Walker and others 2011) and in five systematic reviews addressing CCTs published since 2011 (Bassani and others 2013; Fernald, Gertler, and Hidrobo 2012; Glassman, Duran, and Koblinsky 2013; Manley, Gitter, and Slavchevska 2013; Ruel, Alderman, and Maternal and Child Nutrition Study Group 2013). We then conducted a literature search to find papers that had been published since those systematic reviews. The search used Google Scholar, JSTOR, and PubMed for peer-reviewed articles and websites of the International Food Policy Research Institute, United Nations Children’s Fund, and the World Bank for gray papers. The search was restricted to studies that used experimental or quasi-experimental techniques such as randomization, regression discontinuity, propensity score matching, or difference-in-differences.We found evidence from studies examining the effects of CTs on birth weight (3 studies); infant mortality (6 studies); height-for-age (or stunting) (23 studies); weight-for-age (or underweight) (12 studies); weight-for-height (or wasting) (10 studies); hemoglobin (or anemia) (10 studies); morbidity (16 studies); cognitive, language, and behavioral development (11 studies); and sexual and reproductive health (9 studies) (table 23.1).

What happens when IKEA comes to town

Abstract: What happens when IKEA comes to town? Regional Studies. The effects of a new IKEA store on retail revenues, employment and inflow of purchasing power in the entry municipalities as well as in neighbouring municipalities were investigated using data from 2000–11. A propensity score-matching method was used to find non-IKEA entry municipalities that were as similar as possible to the entry municipalities based on the situation before entry. The results indicate that IKEA entry increased entry municipality durable goods revenues by about 20% and employment by about 17%. Only small and, in most cases, statistically insignificant effects were found in neighbouring municipalities.

Regional Price Parities and Real Regional Income for the United States

Abstract: The success and expansion of the International Comparison Program (ICP) has led to an increase in interest and effort on the estimation of sub-national price levels and purchasing power parities (PPPs). The ICP highlighted a difficulty that large countries such as Brazil, Russia, India and China face during the price-collection phase, namely how to obtain average prices when there are large disparities in many types of expenditure categories, such as housing prices between rural and urban settings. The fact that such disparities were in evidence led to more research on within-country PPPs, or regional price parities (RPPs). The difference between a RPP and the PPPs is simply that the former are in the same currency, while PPPs are usually converted to a reference country or currency by the exchange rate, such as the United States Dollar or the Euro. This paper describes the methodology used to estimate the RPPs within the United States, and shows their effect on measures of income adjusted to constant dollars, termed real regional incomes.

Estimating Cross Province and Municipal City Price Level Differences in China: Some Experiments and Results

Abstract: The estimation of Sub-national purchasing power parities (PPPs) for countries where the regions and provinces have different level of development is fundamental for income, consumption, standard of living real term comparisons, as well as for measuring cross-region welfare inequality. This is even truer for large countries like China, where the above aggregates exhibit great variability among provinces. The aim of this paper is to compute the price level differences, measured by the PPPs, for 31 Chinese Provinces and Municipal Cities, based on a sample of 62 goods and services for the year 2014. To our knowledge, this is the first attempt to do it since many years. After a short review of previous studies on China cross-province and municipal cities price level differences measurement and the illustration of methodology and data used, the results of our elaborations are presented and discussed. Taking Beijing as the base area, there is evidence that the PPP max/min ratio is 1.74, confirming the common belief that China cross-province and municipal cities price levels are significantly different.

Crypto-currencies – An introduction to not-so-funny moneys

Abstract: This paper introduces the distributed ledger technology of crypto-currencies. We aim to increase public understanding of these technologies, highlight some of the risks involved in using cryptocurrencies, and discuss some of the potential implications of these technologies for consumers, financial systems, monetary policy and financial regulation. Crypto-currencies have no physical existence, but are best thought of as electronic accounting systems that keep track of people’s transactions and hence remaining purchasing power. Cryptocurrencies are typically decentralised, with no central authority responsible for maintaining the ledger and no central authority responsible for maintaining the code used to implement the ledger system, unlike the ledgers maintained by commercial banks for example. As crypto-currencies are denominated in their own unit of account, they are like foreign currencies relative to traditional fiat currencies, such as dollars and pounds.

GNI per capita, PPP (current international $)

Abstract: GNI per capita based on purchasing power parity (PPP). PPP GNI is gross national income (GNI) converted to international dollars using purchasing power ...

Buyer Beware: How Market Structure Affects Contracting and Company Performance in the Private Military Industry

Abstract: Private military and security companies are integral components of the defense and intelligence operations of some of the world's most powerful states. Despite the increasingly pivotal role of contractors, analysts have yet to develop theories explaining when governments should outsource national security responsibilities or what conditions cause private defense markets to function efficiently. This inquiry addresses this gap in the literature by demonstrating that varying market structures—that is, the quantity of firms providing similar services and the number and purchasing power of those buying these services—have significant effects on costs, oversight, and company performance in the private defense industry. A principal–agent framework is developed to explain variation in the performance of firms in different markets across the industry. Evaluation of three private defense markets yields the surprising conclusion that monopsony, rather than a competitive market, is the ideal structure for go...

Economic trends of business actors on daily newspaper market: case of the Slovak Republic

Abstract: Since 1989, daily press in Slovakia has been characterised by dynamic development, reflected, besides others, in a number of systemic changes, ownership relationships, typology, contents, circulations, readership, prices, advertising volumes or the number of dailies Over the last years, the development of daily newspapers has been affected not only by legislation and economic impact (business environment, effects of the financial crisis, purchasing power of population, etc) but also revolution in social habits of people resulting from the development of information and communications technology The main objective of the research study is to analyse trends on the Slovak daily newspaper market between 2000 and 2014, focusing on analysing the development of the number of national dailies, their average price and advertising volume as independent variables and their overall single average circulation as a dependent variable and finding relationships between selected variables

Trends in Higher Education and Library Consortia

Abstract: Public higher education is going through dramatic changes in terms of student demographics, public funding and changing perceptions on the value of higher education. Libraries are embedded in this ecosystem and must adjust to changing requirements and expectations. To help mitigate the impacts from these changes, libraries are collaborating through regional consortia to extend their purchasing power, provide services and do what they can to minimize negative impacts.

Purchasing Power Parities of Currencies and Real Expenditures from the International Comparison Program: Recent Results and Uses

Abstract: The International Comparison Program (ICP) is a worldwide statistical initiative designed to estimate purchasing power parities (PPPs) that can be used as currency converters to compare the performance of countries around the world, thereby providing in-depth views of the distribution of resources worldwide. The 2011 round of the ICP was leveraged on the successful outcome of the 2005 round that included 146 countries, introducing various methodological improvements. The summary report and results from the 2011 round were released in April 2014 and provided PPPs, price levels indices, and expenditures in PPP terms for the GDP and major aggregates for 199 participating countries. More detailed results were released in June 2014 and a final comprehensive report in October 2014. The final report provided a more in-depth analysis of volume and per capita indices. The results stirred a strong debate among the user community because of their finding that the world has become more equal than previously thought. The purpose of this paper is to provide an overview of the main results and findings of ICP 2011, its governance framework and partnership with the Eurostat-Organization for Economic Co-operation and Development (OECD) PPP program, and the major methodological innovations that were implemented. The paper reviews the major uses of the PPPs generated by the ICP 2011 and the Eurostat-OECD PPP program, and concludes with thoughts about the future of the ICP.

Algeria - Mali trade : the normality of informality

Abstract: This paper estimates the volume of informal trade between Algeria and Mali and analyzes its determinants and mechanisms, using a multi-pronged methodology. First, the authors discuss how subsidy policies and the legal framework create incentives for informal trade across the Sahara. Second, the authors provide evidence of the importance of informal trade, drawing on satellite images and surveys with informal traders in Mali and Algeria. The authors estimate that the weekly turnover of informal trade fell from approximately United States (U.S.) 2 million dollars in 2011 to U.S. 0.74 million dollars in 2014, but continues to play a crucial role in the economies of northern Mali and southern Algeria. Profit margins of 20-30 percent on informal trade contribute to explaining the relative prosperity of northern Mali. The authors also show that official trade statistics are meaningless in this context, as they capture less than 3 percent of total trade. Finally, the authors provide qualitative evidence on informal trade actors and mechanisms for the most frequently traded products.

Premature deindustrialization and inequality

Abstract: Purpose The purpose of the paper is to determine why premature deindustrialization is occurring in many developing countries. Design/methodology/approach A theoretical structure for explaining premature deindustrialization is utilized. Then the comparative experiences of a number of developing countries are used to illustrate the operation of the theory. Findings The results indicate that increasing inequality among a number of developing countries has reduced the domestic market for labor intensive manufactured goods, resulting in stagnation in manufacturing. Also, the increasing inequality in developed countries has reduced international demand for labor intensive manufacturing. Thus developing countries have fewer opportunities to export labor intensive manufacturing. Research limitations/implications Data on inequality is limited and it is very difficult to determine causality. However, intuition indicates that causality is most likely bi-directional. Practical implications Strategies of economic development must concern themselves with the effects that increasing inequality will likely have on the development of labor intensive manufacturing. Social implications Social programs that bolster the purchasing power of poor families are likely to be important (social safety net). Broad-based agricultural growth will provide a basis for labor intensive manufacturing. Originality/value The originality stems from the linking of deindustrialization with rising inequality.

Relationship Between Domestic Production in Agricultural and Industrial Sectors and Purchasing Power by Controlling for International Trade Variables (Iran)

Abstract: Foreign trade is one of the important subjects in any economy. Due to the close relationship between economy, technology, culture, and governance, business has a significant effect on economies. This study analyses the relationship between domestic production and purchasing power which is proxied by inflation rate by considering certain indexes of intranational trade. Our targeted country is Iran and data are between1973 and2013. Because of limited access to data our sample size was small which motivate us to use Autoregressive Distributed Lag (ARDL) technique that is appropriate for the small sample size analysis. The estimated coefficient of GDP, value-added agriculture and industry were negative and significant. Therefore, it was claimed that there is a negative and significant relationship between domestic production and purchasing power which is proxied by inflation rate by controlling for certain variables of international trade.

A little help from my friends: how purchasing gains influence in complex business-to-business services: the case of legal

Abstract: Purpose The purpose of this research is to develop an understanding of how purchasing can become meaningfully involved in complex business-to-business service purchases. Design/methodology/approach A single in-depth case study method of an exemplar organization was applied to better understand the purchasing function’s role in adding to the value proposition in complex, non-traditional business-to-business service purchases. Findings Powerful allies or advocates can mediate purchasing involvement in service procurement. However, once the involvement is initiated, purchasing must make a positive contribution with respect to the specific needs and expectations of the budget owner to retain its influence. Research limitations/implications This research extends institutional theory to show how powerful allies or advocates can mediate purchasing involvement in the complex services spend. Practical implications This study describes the potential impact of purchasing’s involvement in complex services spend and highlights the opportunities for purchasing managers to improve supplier management and drive out additional costs. Originality/value For the business practitioner, this research provides evidence regarding how individual functions can gain influence in the organization. A conceptual model describes the meaningful involvement of purchasing in complex business-to-business service purchases.

Calculating the real return on a sovereign wealth fund

Abstract: We present a new methodology for calculating the real return on sovereign wealth funds (SWF) that share the investment objective of maximizing international purchasing power in terms of goods and services. Specifically, we modify the traditional approach for deflating the nominal return along three dimensions: the aggregator formula, the measure of international prices and the weighting scheme. We argue that a geometric average of price levels is an appropriate aggregator formula for capturing the deflationary effects of imports increasingly originating from low-cost countries, and that import prices paid by the SWF owner and weights reflecting the owner's import pattern are consistent with the investment objective. Our proposed approach, using the Norwegian Government Pension Fund Global as an illustration, raises the estimated average annual real rate of return over the sample period of 1998–2012 from 3.1% to 4.9%.

Neoliberal Optimism: Applying Market Techniques to Global Health.

Abstract: Global health and neoliberalism are becoming increasingly intertwined as organizations utilize markets and profit motives to solve the traditional problems of poverty and population health. I use field work conducted over 14 months in a global health technology company to explore how the promise of neoliberalism re-envisions humanitarian efforts. In this company's vaccine refrigerator project, staff members expect their investors and their market to allow them to achieve scale and develop accountability to their users in developing countries. However, the translation of neoliberal techniques to the global health sphere falls short of the ideal, as profits are meager and purchasing power remains with donor organizations. The continued optimism in market principles amidst such a non-ideal market reveals the tenacious ideological commitment to neoliberalism in these global health projects.

Rethinking prices during an economic crisis: Calculation as a new mode of consumer behaviour in Russia

Abstract: Using qualitative data, this study explores Russians’ reactions to increases in consumer prices caused by the current economic crisis. The financial turbulence has reinforced doubts about the fairness of market prices and the overall legitimacy of the market order in Russia. Suspicion and cynicism about the State and seller behaviour become the main mode of price perception, encouraging proactive, calculating price behaviour. Respondents’ narratives reveal that proactive price behaviour is considered to be a sign of social competence, financial independence, and high cognitive capacity. Proactive pricing behaviour allows consumers to use their purchasing power for resistance to market injustice and social insecurity and to increase personal chances for sustainability.

The Contribution of Argentine Exports to the Economy, 1875–1929

Abstract: This chapter evaluates the impact of Argentine exports to the economy between 1875 and 1929 by analyzing several indicators. As well as calculating the extent to which GDP growth was generated by exports, the authors quantify the indirect contribution of the export sector by estimating the return value, the fiscal contribution, the purchasing power of exports, positive externalities, industrial linkages, and the use of modern energies. The new evidence is oriented to discuss some of the notions held by conventional interpretations dealing with the trajectory and performance of the Argentine economy during the first Age of Exports.

Can Gold Investments Provide a Good Hedge Against Inflation? An Empirical Analysis

Abstract: It is widely accepted that inflation erodes purchasing power of retirement savings, redistributes wealth from lenders to borrowers, and threatens private investors' long-term objectives. Thus, there is a high demand on diversifying investors portfolio for both individuals and institutions in order to hedge against inflation. This paper aims to examine the effectiveness of gold investments to hedge against consumer inflation risks in the United States (US). Using monthly data from April, 1986 to June, 2016, that covers more than 30 years, unit root testing approach robust for finite samples, the Johansen multivariate cointegration test procedure and vector error correction model (VECM) have been employed to examine the long-run relationship between gold return and consumer inflation in the US. The key finding suggests that gold investments in the US provide an effective hedge against inflation for investors who are willing to keep their investments for long-run. However, it does not provide any hedge if investors hold it for only short-term. Keywords: Hedge, Investments, Gold prices, Inflation, Cointegration JEL Classifications: C22; C52; G15; Q02

Latin America’s First Export Era: Reassessing Its Economic Contribution

Abstract: This initial chapter offers the general framework for the collective research project whose results are presented in this volume. It summarizes central proposals from conventional and current interpretations of Latin America during the first export era that have moved us to undertake this endeavor. Then, it describes the set of parameters that contributors employ in order to assess the economic contribution of exports in the seven study cases that conform this volume. They include descriptive indicators (nominal and real value series, terms of trade) and a set of analytical parameters on exports, like their direct contribution to economic growth, their purchasing power and return value, positive externalities, linkages with industrial and other activities, and energy transition.

The Cost of High Food Prices in West Africa

Abstract: West African households were particularly affected by the food price crisis of 2007-08. As these households depend on markets for two-thirds of their food supplies, prices have become a key determinant of access to food. However, food prices are 30-40% higher in sub-Saharan Africa than in the rest of the world at comparable levels of per capita income. These price levels have a negative impact on the purchasing power of households and are a major factor of food and nutrition insecurity. Price monitoring systems need to be updated and strengthened. Increasing productivity, promoting regional trade and supporting food value chain development are three of the policy options available to decision-makers to drive down food prices sustainably.

Czynniki ekonomiczne warunkujące aktywność i destynacje turystyczne chicagowskiej Polonii

Abstract: Time free from education and work results in an increase in demand for tourist goods and services, however, an important factor of the realized demand and not only remaining in the sphere of dreams is purchasing power of the population (Gaworecki, 2007). Economic conditions mainly decide about consumption of tourist goods and services, which is often emphasized by various authors dealing with this topic, e.g. R. Brudnicki (2006). It must be added here that practising tourism does not have to be connected with huge expenditures, particularly when a tourist is a student and the standard of services is not high. However, the analyses conducted at the macroeconomic level confirm that there is a correlation between a high level of the economic development in a specific country and high tourist activity of its citizens. High tourist activity constitutes one of the basic features of the economically developed societies. The main objective of the article is to present the economic factors conditioning activity and tourist destinations among Chicago Polonia. Among these factors the following aspects have been differentiated: a level of income of the respondents, their expenditures on travelling, their assessment of the financial situation and professional status. The objective of the research was also to check whether a price, cost of travelling constitutes an important indicator for Chicago Polonia that influences tourist activity and their choice of tourist destination. The main research method was a quantitative and qualitative one. The method of diagnostic survey in the form of surveys in the amount of 1014 (including the internet survey online 347, the so-called CASI) among Polonia in the Polish and English language will be presented in the article. The results of the research confirming that the amount of money spent on journeys and frequency of travelling during the year as well as duration of tourist relaxation increase with monthly rising income levels whereas increased monthly income does not influence the choice of the tourist destination of Chicago Polonia will be presented in the thesis.

Impact of increases in food prices on consumer welfare in Lesotho

Abstract: During 2015 and 2016, Lesotho experienced a large increase in the price of cereals, the main staple food in the country. This has led to an erosion of purchasing power and to a decrease in the consumption of staple foods. For the study, we used a demand system to simulate the effects of an increase in the price of staple foods. We based our analysis on data collected for the evaluation of the Child Grants Programme, which offers unconditional cash transfers to poor households with orphans and vulnerable children. We estimated the necessary increase in total income that is needed to counter the impacts of the current price hike and to maintain households’ utility unchanged. In particular, every percentage increase in the price of cereals would need to be matched by a 0.4% increase in income. As for the possible policy measures, we suggest the country’s social protection system as the source for the extra income.

The Market Institution and the State in Islamic Economics: From Past to Present and Future

Abstract: The market institution determines mutual cooperation, division of labor and coordination among producers and consumers. Free functioning of the market institution supplies information and knowledge to buyers and sellers thus enabling them to make economic decisions for their transaction according to the purchasing power of buyers and the amount of marketable goods and services. Free market institution enables buyers and sellers to use their resources efficiently. The market institution has played crucial roles in arranging balanced relations among demand and supply. The free market does not deceive buyers and sellers. Obstacles created by the state political or capitalist monopolistic powers prevent the market institution from functioning efficiently in providing the right information to sellers and buyers to establish balance between supply and demand. The free market has paved ways for effective mobilization of human and natural resources, whereas the controlled market either by bureaucratic or capitalist monopolies has hindered economic development by wasting and leaving idle some human and natural resources. Islamic economics emphasizes the crucial role of free market institution in arranging a suitable atmosphere for buyers and sellers to meet at a platform called the market. In Islamic economics, one of the main economic duties of the state is to arrange this suitable atmosphere for free functioning of the market institution. Within the limited framework of this article, we will try to give some brief theoretical information about the role of the state in establishing an atmosphere for free market institution functioning in the economic history of the Muslim world. The main duties of the state concerning the free market institution in our time will be evaluated and discussed according to the main economic principles of Islamic economics.