Journal Information
EISSN : 1864-6042
Published by: Walter de Gruyter GmbH (10.1515)
Total articles ≅ 539
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Published: 1 January 2021
Economics, Volume 15, pp 43-59;

This study analyzes the nature of money through the lens of the international principles of accounting and lays the foundations of what it calls the accounting view of money (AVM). Using international accounting principles, the AVM argues that the fiat monies issued by the state (typically, cash, banknotes, and central bank money) are not debt and that in fractional reserve regimes, only a share of commercial bank money can be regarded as debt. The AVM argues, instead, that state monies and the nondebt share of commercial bank money are net wealth of their holders and net worth (equity) of their issuers and determines how the seigniorage associated with money issuance should be accounted for correctly in the financial statements of the issuing institutions. The AVM points to the correct way to account for the various forms of money in the financial statements of the issuing institutions, clarifies what the different accounting treatments imply for a correct understanding of the concept of money, and evaluates the related economic and economic policy implications.
Published: 1 January 2021
Economics, Volume 15, pp 28-42;

The methods used in economic research are analyzed on a sample of all 3,415 regular research papers published in 10 general interest journals every 5th year from 1997 to 2017. The papers are classified into three main groups by method: theory, experiments, and empirics. The theory and empirics groups are almost equally large. Most empiric papers use the classical method, which derives an operational model from theory and runs regressions. The number of papers published increases by 3.3% p.a. Two trends are highly significant: The fraction of theoretical papers has fallen by 26 pp (percentage points), while the fraction of papers using the classical method has increased by 15 pp. Economic theory predicts that such papers exaggerate, and the papers that have been analyzed by meta-analysis confirm the prediction. It is discussed if other methods have smaller problems.
Joonhyuk Song, Doojin Ryu
Published: 1 January 2021
Economics, Volume 15, pp 3-27;

As Korea’s household debt has increased rapidly since the mid-2000s, concerns that its economy’s hard-wired leveraging may negatively impact economic activity have grown. Calls are being made for policy actions to return the economy to its long-run trend. Housing preferences and monetary shocks can both trigger deleveraging, as most household debt is profoundly connected to the housing market, and debt growth increases sensitivity to interest rates. Constructing a dynamic stochastic general equilibrium model with heterogeneous households and the housing production sector, we simulate and analyze the macroeconomic effects of deleveraging. Because a lower loan-to-value (LTV) ceiling limits the size of household debt, the deleveraging effect caused by borrowers’ re-optimization is alleviated as the LTV ceiling decreases. When the housing price is included as an additional operating target in an otherwise standard monetary policy (MP) rule, economy-wide welfare increases when the MP is proactive to demand shocks and inactive to supply shocks. These findings suggest that deleveraging risk can be attenuated by adopting a lower LTV ceiling and maneuvering MP asymmetrically depending on the source of a shock.
Katharine Rockett
Published: 1 January 2021
Economics, Volume 15, pp 1-2;

, Komal Iftikhar
Published: 1 January 2021
Economics, Volume 15, pp 60-71;

This study assesses the effectiveness of anti-corruption policies of Pakistan by relating the corruption of government officials to the actual and perceived bureaucratic hurdles faced by formal businesses. It offers a unique perspective by focusing on cases in which the accused officers voluntarily disclosed the misuse of public money (or gains acquired through corruption) in order to avail the option of plea-bargaining. The empirical analysis estimates the effect of these policies on the responses of the managers of business firms in Enterprise Surveys. The number of accusations seems to reduce the incidence of bureaucratic corruption. While the amount that is being offered in bargaining has a negative effect overall, it switches sign overtime suggesting the possibility that it may increase corruption in the long run. The core results are robust across various measures of firm-level corruption. The instrumental variable estimates produce similar results.
Robert Sproule
In the study of Giffen behavior or “Giffenity”, there remains a paradox. On the one hand, the Wold-Juréen (1953) utility function has been touted as the progenitor of a multi-decade search for those two-good, particular utility functions, which exhibit Giffenity. On the other hand, there is no evidence that the Wold-Juréen (1953) utility function has ever been fully evaluated for Giffenity, with perhaps one minor exception, Weber (, 1997). But there, Weber showed that the Giffenity of Good 1 depends upon the relative magnitude of income vis-à-vis the price of Good 2. Weber’s precondition is so vague that it lacks broad appeal. This paper offers a new and a clear cut precondition for Giffen behavior under the Wold-Juréen (1953) utility function. That is, we show that if the price of Good 1 is greater than or equal to the price of Good 2, then Good 1 is a Giffen good.
Teresa María García Muñoz, Juliette Milgram Baleix, Omar Odeh Odeh
This paper investigates the relationship between trade openness and income inequality in 11 Latin American countries over the period 1989–2015. The authors use a panel dynamic approach to take into account the high persistence of income inequality. The analysis classifies trade flows, exports and imports according to trading partner’s income level. Then, the authors split trade flows according to different stages of production. The results show that overall trade flows do not statistically affect income inequality in Latin America. However, trade has divergent effects depending on the trade partners: trade with similar- and lower-income countries exacerbates inequality, while trade with higherincome countries reduces income dispersion. The results also emphasise the role of the export channel (in particular in primary commodities) in explaining income inequality in Latin American countries and imports of consumption goods seem to matter more than imports of intermediate and capital goods.
Sergio Nisticò
In contrast with the ‘missing micro-foundations’ argument against Keynes’s macroeconomics, the paper argues that it is the present state of microeconomics that needs more solid ‘Keynesian foundations’. It is in particular Keynes’s understanding of investors’ behaviour that can be fruitfully extended to consumption theory, in a context in which consumers are considered as entrepreneurs, buying goods and services to engage in timeconsuming activities. The paper emphasizes that the outcome in terms of enjoyment is particularly uncertain for those innovative and path-breaking activities, which Keynes discussed in his 1930 prophetic essay about us, the grandchildren of his contemporaries. Moreover, the Keynes-inspired microeconomics suggested in the paper provides an explanation of why Keynes’s prophecy about his grandchildren possibly expanding leisure did not materialize yet. The paper finally points at the need for appropriate economic policies supporting consumers’ propensity to enforce innovative forms of time use.
Santiago Budría, Juliette Milgram Baleix
This paper investigates the effects of offshoring on individual job satisfaction and perceived risk of job loss. The authors merge microdata from the German Socio-economic Panel dataset (SOEP) with indicators of insertion in global value chains at the industry level for the period 2000–2013. They test two hypotheses. First, the authors investigate whether workers in industries with higher offshoring intensity report lower job satisfaction and/or are more prone to be unsecure at their jobs. Second, they test whether these effects differ among four categories of collars. Their findings indicate that offshoring is associated with lower job satisfaction. The results are also indicative of some heterogeneity in the offshoring effect, with high skilled white-collar workers being mostly unaffected by offshoring and low skilled blue-collar workers showing the largest negative effects. Discriminating between manufacturing and services activities, the authors find that the extent of heterogeneity and the offshoring effect is relatively larger in manufacturing industries. They also find that the effect of offshoring intensity upon job satisfaction is more negative and significant in periods of economic decline. Finally, the results show that offshoring is not significantly related with job insecurity, a result that applies to all workers’ categories. Still, in a period of economic decline job insecurity may increase when the offshoring intensity rises.
, Kiumars Shahbazi
In this paper, a conceptual theoretical model is developed to better integrate various dimensions of the firms’ decision to export. The model sheds light on the affirmations of the founding models of the ‘new theory of international trade’, in particular the role of productivity and sunk costs of exporting in the firms’ export decision. It also takes into account two stylized facts that seem difficult to be reconciled with the implications of the founding models: 1) many domestic firms, regardless of their productivity level, enter foreign markets every year with little sales and cease all exporting activities in less than a year; 2) several of high-productivity firms choose to only serve their domestic market.
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