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.

Indexed Units of Account: Theory and Assessment of Historical Experience

Abstract: An indexed unit of account is a money analogue, used to express prices; the unit's purchasing power is defined by an index. Indexed units of account are not true money in that they are not used as a medium of exchange. The first successful indexed unit of account, the Unidad de Fomento (UF) has been used in Chile since 1967, and has been copied in Colombia, Ecuador, Mexico, and Uruguay. The reasons for creating such units are discussed from the standpoint of monetary theory. The experience with such units in Chile is discussed. It is argued that important practical problems in implementing indexation are solved by creating such indexed units of account. The author advocates creating such units in other countries, even countries with relatively low rates of inflation such as the United States, and argues that an alternative definition of the units, relating the units to measures of income, may also be advantageous. Ideally, such indexed units of account might someday be "monetized," i.e., institutions such as debit cards may be devised to allow the units to be used for all transactions, so that the role of conventional money might be reduced to clearing-house functions only.(This abstract was borrowed from another version of this item.)

A discourse analysis of yellow-vest resistance against carbon taxes

Abstract: Carbon taxation is a core instrument for climate mitigation. Its implementation, however, faces popular resistance. In this paper we study one of the most emblematic mobilizations triggered by the carbon tax issue, the Yellow Vest movement in France. We use Q-methodology, a mixed-method approach to identify discourses (or viewpoints) held by protesters. We find four statistically-distinctive viewpoints, emphasizing respectively: a systemic critique of capitalism; environmental action that is fair; priority over incomes and purchasing power of common people; and inequality and the responsibilities of corporations. Our research points to the importance of ideology in shaping viewpoints and filtering attitudes towards carbon taxes. Yet beyond ideological differences, we find consensus among all discourses, in that there should be more consultation in energy transition policy; the rich and not the poor should pay the cost of transition; and the government should use tax revenue for the transition only. We conclude that, for bold carbon tax schemes to be implemented with less conflict, a much more participatory, transparent and equitable design would be necessary than the one experienced in France.

Koncepcja efektów mnożnikowych w wyznaczaniu wpływu przedsiębiorstw na otoczenie społeczno-gospodarcze

Abstract: The subject of this paper is presentation of a method of calculating multiplier effects in order to determine the influence of enterprises on their environment. Emergence or development of economic activity in a given area may bring about an increase in income and employment in many other enterprises, as well as to an increase taxes collected by the local authority. This increase is labelled multiplier effects, and its value enables the evaluation of the enterprise’s activity on the functioning of neighbouring firms.In literature, the most frequently discussed types of multiplier effects are the supply and income effects. The first result from the demand created by the emerging and developing enterprises, which fosters the development of their goods and services suppliers. The second type, the income effects, result from the increase in purchasing power of the inhabitants, owing to the employees’ remuneration, and this means fostering the development of firms that satisfy consumers’ needs. These enterprises create greater demand themselves, thus triggering new cycles of multiplier effects.The calculation of created workplaces for the supply effects was conducted by using a designed algorithm. It allows calculating the new workplaces in the supplier firms on the bases of data concerning income of enterprises, participation of supply in the revenue, and employment-related costs. The growth of employment and payment is correlated with the increase in the income multiplier effects, generated by single enterprises. This work presents a scheme for calculation of new workplaces created as a result of new investments.

“Broad-based Employee Stock Ownership and Profit Sharing: History, Evidence, and Policy Implications,”

Abstract: The purpose of this paper is to review the historical background for broad-based ownership in the USA, the development of forms of employee ownership and profit sharing in the USA, the research literature on employee ownership and profit sharing and related employee participation, the development of policy and options for new policies.,It is a literature review.,There are four reasons to be interested in employee stock ownership and profit sharing today: first, employee share ownership and profit sharing can increase worker pay and wealth and broaden the overall distribution of income and wealth, a key ingredient for a successful democracy. To be a tool for reducing inequality, employee stock ownership and profit sharing must be spread more widely and meaningfully than it is today. Second, employee share ownership and profit sharing provide incentives for more effort, cooperation, information sharing and innovation that can improve workplace performance and company productivity. Third, employee share ownership and profit sharing can save jobs by enhancing firm survival and employment stability, with wider economic benefits that come from decreasing unemployment. Fourth, employee share ownership and profit sharing can create more harmonious workplaces with greater corporate transparency and increased worker involvement in their work lives through access to information and participation in workplace decisions.,Growth has been extraordinarily sluggish in the recovery from the Great Recession and has weakened in advanced countries over a longer period, leading some analysts to believe that the authors have entered a new economic era of small to modest growth. This may turn out to be true, which will increase the importance of growth-enhancing policies. The evidence that firms with employee stock ownership and/or profit-sharing perform better than others suggests that policies that extend ownership would boost the country’s lagging growth rate. The evidence that employee share ownership firms preserve jobs and survive recessions better than others suggests that policies that extend ownership could help stabilize the economy when the next recession comes down the pike.,Because there may be informational or institutional barriers about the benefits of ownership and sharing and the ways firms can introduce such programs that government can help overcome. Government has often played a role in promoting performance-enhancing work practices to enhance overall economy-wide outcomes from higher productivity and innovation, such as the long history of agricultural extension services (since 1887) to spread information on best practices in farming, and employer education on safety practices conducted by the Occupational Safety and Health Administration.,Because of the “externalities” – effects that extend beyond the firm and its members – that greater ownership/profit sharing can bring us. If employee ownership and profit sharing lead to fewer layoffs and firm closures, this can reduce recession-created drops in consumer purchasing power and aggregate demand; government expenditures on unemployment compensation and other forms of support; decreased tax base for supporting schools and infrastructure; and potentially harmful social and personal effects, such as marital breakups and alcohol abuse. Apart from unemployment, more broadly shared prosperity and lower inequality may also have wider benefits for macroeconomic growth, stability and societal outcomes, as described by a number of social scientists. To the extent the ownership and profit sharing is a public good, a nudge in policy to consider the idea makes sense.,Because it is hard to find policy options that are as bipartisan as the shares policy. In The Citizens’ Share, and in other articles and venues, the authors lay out the areas in which there is evidence or logic for in-depth development of, and experimentation with, several broad policy directions, with the details to be worked out by members of Congress based on their deliberations.