Found 1323 article(s) in category 'Economic Growth'

What I do support in a new tax plan

What I do support in a new tax plan. Lawrence Summers, October 25, 2017, Opinion, “I have been very sharply critical of what I regard as unprofessional exaggeration by advocates of the Trump tax proposal. Reasonably enough, people have asked what I am for. I strongly support tax reform in general and especially corporate tax reform on the model of the highly successful bipartisan 1986 tax reform, which achieved very large rate reductions, spurred economic growth and improved the efficiency of the economy while being revenue- and distribution-neutral.Link

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The Business Roundtable’s outlandish tax cut claims

The Business Roundtable’s outlandish tax cut claims. Lawrence Summers, October 23, 2017, Opinion, “I think of myself as pro-business. I frequently counseled the Obama administration that “business confidence is the cheapest form of stimulus,” and during my times in government have found meetings with business leaders very helpful in understanding economic policy challenges. So when the Business Roundtable (BRT) does an analysis, I pay close attention.Link

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One last time on who benefits from corporate tax cuts

One last time on who benefits from corporate tax cuts. Lawrence Summers, October 22, 2017, Opinion, “I recently asserted that Kevin Hassett deserved a failing grade for his “analysis” projecting that the Trump administration proposal to reduce the corporate tax rate from 35 to 20 percent would raise the wages of an average American family between $4,000 to $9,000. I chose harsh language because Hassett had, for what seemed like political reasons, impugned the integrity of people like Len Burman and Gene Steuerle who have devoted their lives to honest rigorous evaluation of tax measures by calling their work “scientifically indefensible” and “fiction.” Since there have been a variety of comments on the economics of corporate tax reduction, some further discussion seems warranted.Link

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Advances in Economics and Econometrics: Volume 1: Eleventh World Congress

Advances in Economics and Econometrics: Volume 1: Eleventh World Congress. Ariel Pakes, October 2017, Book, “This is the first of two volumes containing papers and commentaries presented at the Eleventh World Congress of the Econometric Society, held in Montreal, Canada in August 2015. These papers provide state-of-the-art guides to the most important recent research in economics. The book includes surveys and interpretations of key developments in economics and econometrics, and discussion of future directions for a wide variety of topics, covering both theory and application. These volumes provide a unique, accessible survey of progress on the discipline, written by leading specialists in their fields. The first volume includes theoretical and applied papers addressing topics such as dynamic mechanism design, agency problems, and networks.Link

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Counting and Caring

Counting and Caring. Lawrence Summers, October 17, 2017, Paper, “The article presents the author’s views on economist Howard Raiffa who is known for his contributions to both decision sciences and negotiation analysis. Topics include the impact of Howard’s book “Decision Analysis” on the author in developing intellectual interests; and the role of his book in helping the author learn about Bayesian models and group decision making.Link

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China’s Export Restrictions and the Limits of WTO Law

China’s Export Restrictions and the Limits of WTO Law. Mark Wu, October 2017, Paper, “In recent years, China has enacted export restrictions on a range of minerals and other raw materials. They include export quotas, export duties, export licenses, and other administrative actions. Although such export restrictions have already been found to be inconsistent with China’s WTO obligations, the practice persists. This article advances an explanation for why this is the case. It argues that the problem lies with the lack of retrospective remedies in WTO dispute settlement. Consequently, China is able to breach its WTO obligations temporarily with minimal consequence. Although such restrictions may have negative consequences for upstream extraction firms, China is able to implement the restrictions because several upstream firms are state-owned enterprises.” Link

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Building Emergency Savings Through Employer-Sponsored Rainy Day Savings Accounts

Building Emergency Savings Through Employer-Sponsored Rainy Day Savings Accounts. John Beshears, David Laibson, October 2017, Paper, “Many Americans live paycheck to paycheck, carry revolving credit balances, and have little liquidity to absorb financial shocks (Angeletos et al. 2001; Kaplan and Violante 2014). One consequence of this financial vulnerability is that many individuals use a portion of their retirement savings during their working years. For every $1 that flows into 401(k)s and similar accounts, between 30¢ and 40¢ leaks out before retirement (Argento, Bryant, and Sabelhaus 2015). We explore the practical considerations and challenges of helping households accumulate liquid savings that can be deployed when urgent pre-retirement needs arise. We believe that this can be achieved cost effectively by automatically enrolling workers into an employer-sponsored payroll deduction “rainy day” or “emergency” savings account, and present three specific implementation options.Link

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American Danger: United States Empire, Eurafrica, and the Territorialization of Industrial Capitalism, 1870–1950

American Danger: United States Empire, Eurafrica, and the Territorialization of Industrial Capitalism, 1870–1950. Sven Beckert, October 2017, Paper, “During the last third of the nineteenth century, a debate emerged in a number of European countries on the “American danger.” Responding to the rapid rise of the United States as the world’s most important economy, some European observers feared their nations’ declining competitiveness in the face of the territorial extent of the United States, and its ability to integrate a dynamic industrial sector with ample raw material supplies, agriculture commodities, markets, and labor into one national economy. This “second great divergence” provoked a range of responses, as statesmen, capitalists, and intellectuals advocated for territorial rearrangements of various European economies, a discussion that lasted with greater or lesser intensity from the 1870s to the 1950s.Link

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Do Fire Sales Create Externalities?

Do Fire Sales Create Externalities? Adi Sunderam, October 12, 2017, Opinion, “We develop three novel measures of how much of the price impact of their trading different mutual funds internalize. We show that mutual funds that internalize more of their price impact hold larger cash buffers and use these buffers more aggressively to accommodate inflows and outflows. As a result, stocks held by these funds have lower volatility, and flows out of these funds have smaller spillover effects on other funds holding the same securities. Our results suggest that there are meaningful fire sale externalities in the mutual fund industry, and that a planner coordinating among funds would choose different liquidity management policies.Link

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Political institutions and economic growth in Africa’s ‘Renaissance’

Political institutions and economic growth in Africa’s ‘Renaissance’. Robert H. Bates, October 11, 2017, Paper, “In the late twentieth and early twenty-first centuries, many African states replaced authoritarian political regimes with competitive electoral systems; the economies of many also began to grow, some for the first time in decades. We argue that democratic reform led to economic growth, as did Acemoglu, Naidu, Restrepo and Robinson in an earlier paper. Our approach differs from theirs in that while we to seek to identify a causal relationship between democracy and development, we build our analysis around the qualitative accounts of regional specialists and the reasoning of political economists. Where others test for the existence of a causal account, we test for the existence of specific casual mechanisms.Link

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