This paper thoroughly analyzes stagflation and recession along with their causes, effects and approaches to resolve them. Detailed literature on stagflation and recession provides value added ...analysis. In-depth review provides analysis about the history of stagflation, its effects and approaches to solve it. In addition, detailed reviews of recession, causes of major recessions, major sources of pressure for recession are thoroughly covered. Findings suggest that economies cannot completely avoid stagflation and recession, but they can reduce the effect of these factors on the economy.
What are the sources of popular opposition to economic globalization? A common answer in the literature is the adverse impact of trade liberalization on some people's labor market standing and ...earning prospects. Recent studies also note a correlation between nationalist and ethnocentric sentiments and support for trade protectionism, yet do not test whether these non-economic sentiments are actually a cause of the opposition to freer trade. I argue that many individuals fear not only the oft-cited material consequences of trade openness, but also what they perceive to be its social and cultural consequences. I use cross-national survey data and a survey experiment to test this causal claim. The argument also helps explain why less-educated individuals are consistently more apprehensive about international economic integration than more educated individuals, even in the countries in which economic theory predicts otherwise. The findings have implications for the debate over the policy tools for compensating globalization's losers and sustaining popular support for further economic integration.
A critical review of neoclassical and new economic theories on their correspondence to empirical results for economic development has been made. In the light of these theories, three leading ...hypotheses for convergence have been considered -- "unconditional β-convergence", "conditional β-convergence" and "club convergence". An assessment was made, for the existence of economic convergence in the EU countries at different levels EU-28, EU-15 and the new member states of Central and Eastern Europe, for the period 2007 - 2017 Based on the obtained results, some summaries and conclusions are made.
The electoral consequences of the Great Recession are analysed in this article by combining insights from economic voting theories and the literature on party system change. Taking cues from these ...two theoretical perspectives, the impact of the Great Recession on the stability and change of Western, Central and Eastern European party systems is assessed. The article starts from the premise that, in order to fully assess the impact of the contemporary crisis, classic economic voting hypotheses focused on incumbent parties need to be combined with accounts of long‐term party system change provided by realignment and dealignment theories. The empirical analysis draws on an original dataset of election results and economic and political indicators in 30 European democracies. The results indicate that during the Great Recession economic strain was associated with sizable losses for incumbent parties and an increasing destabilisation of Western European party systems, while its impact was significantly weaker in Central and Eastern European countries, where political rather than economic failures appeared to be more relevant. In line with the realignment perspective, the results also reveal that in Western Europe populist radical right, radical left and non‐mainstream parties benefited the most from the economic hardship, while support for mainstream parties decreased further.
When attempting to manage a large social system, it is necessary to have an overview of how the society functions and how economic theories describe this functioning. Recent discussions of higher ...orders of cybernetics are helping to define a multi‐disciplinary, multi‐level point of view. Knowledge from several disciplines is needed—systems science, management, engineering, cognitive studies and the various social science disciplines all have contributions to make. In this paper, we apply cybernetic ideas to further develop economic theories. The paper also uses economics to illustrate ideas in cybernetics. Similar thinking can be applied to other disciplines thus advancing the unification of science. The paper illustrates a transdisciplinary approach to knowledge development. The implications of the paper are improved understanding among scholars from several disciplines. The intent is to expand the range of conceptual possibilities available for problem‐solving.
This article aims to study to what extent the share of immigrants in a country influences individuals' perceptions of ethnic threat and how this can be explained by theories of economic and cultural ...threat. Following an economic logic, people with a weak socio-economic position should have a greater perception of ethnic threat. This would be more so if the share of low-educated immigrants in a country was relatively high. Following a cultural logic, greater perceptions of ethnic threat should be found among individuals with a weak cultural position, which would apply more strongly if the share of non-Western immigrants in a country was relatively high. Both theories are studied using data from the first round of the European Social Survey, enriched with country-specific variables. The results are discussed in terms of their implications for the theories under scrutiny and in the light of current scientific debates about the influence of immigration on Western societies.
ISMs matter. They reflect underlying philosophical points of departure and are rooted in specific explicit assumptions about how the world works. The very different expectations and conclusions of ...diverse theories often stem from the fact that those theories were derived from distinct and contrasting paradigmatic roots. To be aware of those foundations is to understand the likely strengths, weaknesses, limitations, controversies, and specific attributes of the various theories. In contemporary international relations (IR) scholarship there is a common claim that we are past paradigms, and many younger scholars are expected to recite this mantra. But making such a claim is a political act, not an intellectual one. It reflects the hegemony of one particular paradigmatic perspective—one with specific analytical building blocks of individualism, materialism, and hyperrationalism—an approach that is a paradigm and one so powerful that it has been described as an “intellectual monoculture.”
8. Inequality and Economic Growth Stiglitz, Joseph E.
The Political quarterly (London. 1930),
December 2015, 2015-12-00, 20151201, Volume:
86, Issue:
S1
Journal Article
Peer reviewed
Open access
In the middle of the twentieth century, it came to be believed that ‘a rising tide lifts all boats’: economic growth would bring increasing wealth and higher living standards to all sections of ...society. At the time, there was some evidence behind that claim. In industrialised countries in the 1950s and 1960s every group was advancing, and those with lower incomes were rising most rapidly. In the ensuing economic and political debate, this ‘rising-tide hypothesis’ evolved into a much more specific idea, according to which regressive economic policies—policies that favour the richer classes—would end up benefiting everyone. Resources given to the rich would inevitably ‘trickle down’ to the rest. It is important to clarify that this version of old-fashioned ‘trickle-down economics’ did not follow from the postwar evidence. The ‘rising-tide hypothesis’ was equally consistent with a ‘trickle-up’ theory—give more money to those at the bottom and everyone will benefit; or with a ‘build-out from the middle’ theory—help those at the centre, and both those above and below will benefit.Today the trend to greater equality of incomes which characterised the postwar period has been reversed. Inequality is now rising rapidly. Contrary to the rising-tide hypothesis, the rising tide has only lifted the large yachts, and many of the smaller boats have been left dashed on the rocks. This is partly because the extraordinary growth in top incomes has coincided with an economic slowdown. The trickle-down notion—along with its theoretical justification, marginal productivity theory—needs urgent rethinking. That theory attempts both to explain inequality—why it occurs—and to justify it—why it would be beneficial for the economy as a whole. This chapter looks critically at both claims. It argues in favour of alternative explanations of inequality, with particular reference to the theory of rent-seeking and to the influence of institutional and political factors, which have shaped labour markets and patterns of remuneration. And it shows that, far from being either necessary or good for economic growth, excessive inequality tends to lead to weaker economic performance. In light of this, it argues for a range of policies that would increase both equity and economic well-being.
Economic theories of voting argue that party popularity and vote are heavily influenced by the performance of the economy. Inferences about the direction of causality between perceptions of the ...economy and party support remain questionable, however. This article evaluates the microfoundations of economic theories of voting and party popularity using multiwave panel data. We model the dynamic relationships between party support and retrospective economic perceptions—both sociotropic and egocentric—through the 1992–97 British electoral cycle. Our findings indicate that sociotropic perceptions are strongly conditioned by prior opinions of the incumbent Conservative Party and once this temporal relationship is taken into account, they have little affect on incumbent party popularity. Throughout the electoral cycle, lagged political support has a substantially stronger effect on sociotropic perceptions than the latter have on concurrent party support. Moreover, egocentric perceptions appear to be neither strongly affected nor influenced by party support. The findings of these dynamic individual-level analyses indicate that conventional wisdom is likely to considerably overstate the importance of retrospective economic considerations for political preferences.
Amartya Sen addresses the question why he is disinclined to provide a fixed list of capabilities to go with his general capability approach. Capability assessment can be used for different purposes ...(varying from poverty evaluation to the assessment of human rights or of human development), and public reasoning and discussion are necessary for selecting relevant capabilities and weighing them against each other in each context. It would be a mistake to build a mausoleum for a "fixed and final" list of capabilities usable for every purpose and unaffected by the progress of understanding of the social role and importance of different capabilities. PUBLICATION ABSTRACT
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