A new discussion paper by Amrit Amirapu, KDPE 1706, February 2017.
Commerce and manufactures can seldom flourish long in any state which does not enjoy a regular administration of justice, ... in which the faith of contracts is not supported by law... Adam Smith, The Wealth of Nations, Book V, Chapter III
Are well-functioning formal judicial institutions important for growth and development? Some - including Adam Smith - have argued that they are needed to ensure efficient contract enforcement. Others have argued that informal contracting arrangements such as relational contracts, social norms or kinship networks can provide workable substitutes (Acemoglu and Johnson(2005)).
A new discussion paper by Masaru Inaba and Keisuke Otsu, KDPE 1705, March 2017.
The objective of this paper is to construct a dataset of Japanese prefecture level production, income and expenditure data and analyze the Japanese regional growth and business cycle features. The 47 prefectures are analyzed individually and also as 10 regional groups; Hokkaido, Tohoku, Kanto, Chubu, Kinki, Chugoku, Shikoku, Kyushu and Okinawa.
A new discussion paper by Konstantinos Angelopoulos, Wei Jiang and James Malley, KDPE 1704, January 2017.
The evolution of inequality has been well documented in the data. Inequality in earnings has increased in recent decades and, in particular, wage inequality has increased dramatically since the beginning of the 20th century. As a result of this rise and its deleterious implications for the welfare of a large part of the population, societies and policymakers at large are paying increasing attention to better understanding causes and consequences of inequality.
A new discussion paper by Kevin S. Nell and A. P. Thirlwall, KDPE 1703, March 2017.
‘New’ (endogenous) growth theory seeks to explain growth rate differences between countries outside the confines of orthodox neoclassical growth theory, but also to rehabilitate the neoclassical model with diminishing returns to capital by introducing other variables into the equations to explain why there has not been unconditional convergence of per capita incomes across the world as predicted by the basic neoclassical (Solow) growth model.
"If you had been a canny investor back in 2008, you could have done a lot worse than make a substantial bet on upmarket ice cream futures. The price of vanilla beans has rocketed from as little as US$25 per kilo eight years ago up to US$240 at the end of 2016. Some forecasts predict it will reach as much as US$450 per kilo by the middle of 2017. Even by the standards of volatile prices in agricultural commodities such as rice and grains this is exceptional.
Unlike other price increases that were shortlived and the result of policy decisions, the price of vanilla beans is being driven by something else. In short, it is all down to us, the fickle consumer and our love of authentic cones, custard and crème brûlée..."