Purchasing power

About: Purchasing power is a research topic. Over the lifetime, 2714 publications have been published within this topic receiving 36866 citations. The topic is also known as: adjusted for inflation.

Income effects of investments and wages when saving rates differ

Abstract: Macroeconomic reasoning often postulates a uniform saving rate Yet, this approach is only consistent with two special cases: either all households spend the same fraction of earnings or the shares in national income are held constant by assumption Both premises lead astray It is shown that fluctuations in investments (as a synonym for autonomous demand) generally affect distribution In addition, the impacts of a changing wage bill on domestic product (‘purchasing power argument’) or profits (‘wage–profit trade-off’) are revealed 1E ffective Demand in Short Supply Standard textbooks on macroeconomics lack a profound analysis of the mutual relationships between income and expenditures Accordingly, a full explanation of the circular flow is missing Thus, a fundamental question of the field is blended out: how are the decrease in net funds (‘investment’) of some subjects and the accumulation of pecuniary wealth (‘saving’) of others connected? The problem arises because all payments turn completely into earnings, but the received money will be spent neither entirely every time nor always to 100 per cent in the real sector of the economy Disciples of the prevailing approach rest their expositions on the opposing forces of supply and demand; that is to say, they apply their usual microeconomic tools to tackle macroeconomic issues Consequently, the flow-balance conditions are largely neglected In so far as multiplier effects appear, they are restricted to simple income–expenditure exercises, where uniform saving rates are presupposed 1 The subsequent analysis uncovers that the popular depictions do not merely oversimplify matters; more severely, they misinform in principle In the present paper we deal with the impact of spending decisions and the wage bill on the nominal values of domestic product and profits, ie amounts of money per period of time 2 In this respect, the ‘purchasing power argument’ deserves scrutiny It is quite often put forth by trade unions’

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.

Globalization and the Political Benefits of the Informal Economy

Abstract: Does global market integration help or hinder government efforts to improve the livelihoods of the world's poorest citizens? Standard trade theories suggest that government interventions become less imperative as developing countries liberalize. This is because labor in developing economies is abundant and cheap; export products that utilize this factor of production will employ large populations of low-skilled workers who will experience increases in the purchasing power of their wage income. Consumption increases, and the country as a whole is better off. For several decades now, developing economies have embraced this rationale for free trade and its welfare-enhancing effects on the majority. Empirical data and research provides some confirmation for a number of these predictions. Developing countries have joined the global economy and raised their shore of total world exports from 21% to 43% between 1992 and 2008 (Hanson 2012). Moreover, absolute poverty as measured by the percent of people earning below $1.25 per day (2005 PPP) has dropped substantially, from around 36% in 1990 to 14.5% in 2011. With liberalization and concomitant global market integration, economic growth rates in developing economies have been improving, and absolute poverty shows signs of declining (Dollar and Kraay 2004; Owen and Wu 2007). Yet, the United Nations Secretary-General Bank Ki-moon recently presented a report to all member states entitled A Life of Dignity for All , underscoring the many dimensions of poverty that still persist in the current era of globalization. The Report was consistent with the development community's efforts to encourage scholars to turn away from the standard measures of growth and poverty and critically assess progress in broader aspects of basic human development. Among the list of the General Secretary's appeals to governments of developing countries, ensuring “decent work for all” ranked among the top. To date, we have very little understanding …

International Tourism Marketing in Africa: An Assessment of Price Competitiveness Using the Purchasing Power Parities of the ICP

Abstract: Price of tourism is one of the major determinants of demand for international tourism. This paper assessed the relative price competitiveness of African countries in the international tourism market. It used a measure of price assessment that is based on the purchasing power parities of the ICP to ensure adequate comparability. Ethiopia, Malawi, and Zimbabwe were found to be the most price competitive; while the least price competitive countries proved to be Botswana, Tanzania, and Egypt. Changes in price competitiveness between 1985 and 2000 were analyzed according to sources of such changes. Policy and managerial implications of findings are discussed, and directions for future research are given.

Sustainable Public Procurement: Realization of the Social Aspect in Republic of Lithuania

Abstract: Public procurement concentrates large public sector’s purchasing power, and has a significant impact on each country’s economic development. The purpose of public procurement procedure is transparency, non-discrimination and accordance to the principles of fair competition in acquisition of goods, services and works necessary for the smooth functioning of the public administration. Besides, public procurement can be one of the most important instruments for sustainable development and other purposes useful to the whole society and the economy of the country. This article briefly discusses the concept of sustainable public procurement, reveals its main ideas and applications. One of them, the social sphere, was chosen the main object of the research. The possibility to decrease unemployment, to increase an integration of socially vulnerable group, and to achieve other socially-oriented goals through an effective implementation of the social aspect of sustainable public procurement has been illustrated. Thus, the article analyses the concept of social procurement, assesses the current situation in Lithuania, overviews the good practice of other countries and provides recommendations for measures to extend the application of socially oriented procurement.