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on Business, Economic and Financial History |
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Issue of 2005‒01‒09
thirteen papers chosen by |
| By: | Hortlund, Per (The Ratio Institute) |
| Abstract: | In the classical monetary debates, the Banking School held that notes would be equally demand-elastic whether supplied by many or a single issuer. The Free Banking School held that notes would be less demand-elastic if supplied by a single issuer. These assertions have rarely, if ever, been subject to more stringent statistical testing. In this paper I compare the elastic properties of the note stock of the Swed-ish note banking system in 1878–1901 with those of the regime in 1904–1914, when the Bank of Sweden held a note monopoly. Evi-dence suggests that notes did not become less elastic after monopoli-sation, thus lending support to the views of the Banking School. |
| Keywords: | Banking School; Free Banking School; Elastic currency; Clearing mechanism; Note competition; Needs of trade; Law of Reflux; Speed of redemption; Real bills doctrine |
| JEL: | B12 E42 E51 E58 N13 N23 |
| Date: | 2005–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0061&r=his |
| By: | Keiichiro Kobayashi |
| Abstract: | This paper proposes a simple model that formalizes a variant of Ohanian's (2001) conjecture explaining the productivity declines observed in the Great Depression. If a large payment shock like an asset-price collapse renders many firms insolvent, other economic agents become exposed to a higher risk of not being paid (payment uncertainty). The payment uncertainty causes endogenous disruptions of the division of labor among firms, thereby lowering macroeconomic productivity. The prediction of the model is that productivity correlates negatively with bankruptcies and positively with the cost share of intermediate inputs, which is consistent with the data from depression episodes. The model implies that the so-called failure of macroeconomic policy in the United States during the early 1930s, when a rash of bankruptcies occurred, could actually have been welfare enhancing, since the quick exit of insolvent agents can resolve payment uncertainty quickly. |
| Date: | 2004–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:04037&r=his |
| By: | Leandro Prados de la Escosura |
| Abstract: | This paper explores the connections between independence from Spain and Portugal and economic backwardness in Latin America. The release of the fiscal burden was offset by higher costs of self-government, while opening up to the international economy represented a handmaiden of growth. Independence had a very different impact across regions and widened regional disparities. The commitment to the colonial mercantilism conditioned the new republics’ performance but, on the whole, GDP per head increased in the half a century after emancipation. It appears that inherited Iberian institutions cannot be blamed for Latin America’s poor performance relative to the US, especially if the scope is widened to include the post-independence performance of former European colonies in Africa and Asia. It is suggested that before jumping to the usual negative assessment of nineteenth century Latin America, a comparison of post-independence performance in other world regions will be required. |
| Date: | 2004–12 |
| URL: | http://d.repec.org/n?u=RePEc:cte:whrepe:wh046816&r=his |
| By: | Thomas Gottschang (Department of Economics, College of the Holy Cross) |
| Keywords: | currencies, free banking, Manchuria |
| Date: | 2004–12 |
| URL: | http://d.repec.org/n?u=RePEc:hcx:wpaper:0409&r=his |
| By: | Hortlund, Per (The Ratio Institute) |
| Abstract: | The working of the ”asset currency” provided by the Swedish note banking system in 1878–1901 is described. Natural and institutional conditions caused the demand for currency to peak in March and September, with troughs in July and January. The paper investigates how the Enskilda banks provided liquidity to solve the problem. This is done by describing how the volume of notes varied over the year, and how other balance sheet items co-moved with them. Strong seasonal co-variation is found particularly between lend-ing and foreign payments media, varying like communicating vessels over the sailing season in May–October (when the sea was ice free and shipments were made). |
| Keywords: | Free banking; Elastic currency; Asset currency; Clearing mechanism; Note competition; Needs of trade; Legal restrictions; Lender of last resort; Sailing season |
| JEL: | G21 N13 N23 |
| Date: | 2005–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0062&r=his |
| By: | Hortlund, Per (The Ratio Institute) |
| Abstract: | Contrary to received wisdom, two recent studies report a negative relation-ship between leverage and profitability in banking in the 1980s and early 1990s. This study presents new data on the leverage and profitability of Swedish commercial banks in 1870–2001, and explore the sign of the relation-ship in the long term. In the studied period, the capital-asset ratio decreased by a factor four, while return-on-equity more than doubled. The Leverage Formula postulates a positive linear relation between return-on-equity and the debt-equity ratio. A strong positive linear relationship was found over the period 1871–1980, but not in 1980–2001. Thus, while supporting the re-sults of the previous studies, a long-term “normal” positive relationship be-tween leverage and profitability is also reaffirmed. |
| Keywords: | return-on-equity; leverage; bank capital |
| JEL: | G21 N23 N24 |
| Date: | 2005–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0063&r=his |
| By: | FitzRoy, Felix R. (University of St. Andrews and IZA Bonn); Kraft, Kornelius (University of Dortmund and IZA Bonn) |
| Abstract: | We present the first panel estimates of the productivity effects of the unique German institution of parity, board-level co-determination. Although our data span two severe recessions when labour hoarding costs of co-determination are probably highest, and the panel is too short to capture the likely long run benefits in terms of human capital formation and job satisfaction, we find positive productivity effects of the 1976 extension to parity codetermination in large firms. |
| Keywords: | co-determination, employee involvement, productivity |
| JEL: | D2 J5 L2 |
| Date: | 2004–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1442&r=his |
| By: | Cervellati, Matteo (Universitat Pompeu Fabra and University of Bologna); Fortunato, Piergiuseppe (University of Bologna); Sunde, Uwe (IZA Bonn) |
| Abstract: | We analyze the endogenous evolution of economic and political institutions and the interdependencies with the process of economic development. Favorable economic institutions ensure the appropriability of rents in form of a state of law. We study the conditions under which a state of law can be implemented under oligarchy, and when democratization is necessary. Inequality in endowments and incomes prolongs the absence of good institutions and delays democratization. Conversely, institutions shape the income distribution. Simulations illustrate how inequality affects the development process and may lead to overtaking and divergence. The implications are in line with historical and empirical evidence. |
| Keywords: | inequality, democratization, institutions, state of law, long-term development |
| JEL: | H10 O20 N10 |
| Date: | 2005–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1450&r=his |
| By: | DR. GODWIN CHUKWUDUM NWAOBI (QUANTITATIVE ECONOMIC RESEARCH BUREAU, NIGERIA) |
| Abstract: | AGRICULTURE IN ITS COMMON PARLENCE INCLUDES PRODUCTION, RESEARCH AND TRAINING IN THE FIELDS OF CROPS, FORESTRY, FISHING AND LIVESTOCK. NIGERIAN AGRICULTURE WAS CHARACTERIZED BY LOW FARM INCOMES; LOW CAPACITY LEVEL TO SATISFY FOOD AND FIBRE NEEDS OF THE COUNTRY, AND PRIMITIVE TECHNIQUES OF PRODUCTION. YET, THERE WAS LITTLE CONSENSUS WITH RESPECT TO THE MOST APPROPRIATE STRATEGY FOR SECURING INCREASED FARM OUTPUT AND PRODUCTIVITY IN AN UNDERDEVELOPED AGRICULTURE. THIS PAPER THEREFORE ARGUED THAT CAREFUL PLANNING,SCIENTIFIC FORECASTING AND IMPROVED IMPLEMENTATION MECHANISM ARE FACTORS WHICH WILL YIELD THE NATION MORE DIVIDEND THAN MERE STATEMENTS, PROMISES AND STRATEGIES. |
| Keywords: | AGRICULTURE, ECONOMY, NIGERIA, GREEN REVOLUTION PROGRAMME, OPERATION FEED THE NATION, CREDIT, FINANCE, POLICIES, DEVELOPMENT, POST- INDEPENDENCE |
| JEL: | Q10 Q18 O13 |
| Date: | 2005–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpdc:0501001&r=his |
| By: | DR. GODWIN CHUKWUDUM NWAOBI (QUANTITATIVE ECONOMIC RESEARCH BUREAU, NIGERIA) |
| Abstract: | THE CONCEPT OF AN INDUSTRY IS IMPORTANT FOR ECONOMIC ANALYSIS. HERE, WE DEFINE SUGAR INDUSTRY AS GROUP OF FIRMS PRODUCING SUGAR THAT ARE CLOSE SUBSTITUTES BY THE USE OF IDENTICAL PRODUCTION PROCESSES AND RAW MATERIALS. HOWEVER, SUGAR INDUSTRY IN NIGERIA WAS STILL IN ITS PIONEERING STAGE. THIS PAPER THEREFORE ARGUES THAT THE STRUCTURE AND ORIENTATION OF NIGERIAN SUGAR INDUSTRY HAVE NOT INDUCED GROWTH AND DEVELOPMENT AND THUS A MORE URGENT ATTENTION WAS NEEDED FROM THE POLICY MAKERS AND GOVERNMENT TO CHECK THE OBSERVED UGLY SITUATION. |
| Keywords: | NIGERIA, SUGAR, INDUSTRY, PRODUCTION, PRICING POLICY, DISTRIBUTION, TECHNIQUES, MARKET STRUCTURE, GOVERNMENT, INCENTIVES |
| JEL: | D40 L10 L60 M00 |
| Date: | 2005–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpio:0501001&r=his |
| By: | Spartak Keremidchiev |
| Abstract: | The paper aims at outlining the existing gaps in Bulgarian corporate governance compared to the standards and the state of corporate governance in developed market economies. The current state of corporate governance, the degree of ownership concentration as well as the strengths and weaknesses of corporate governance are examined for the fulfillment of this goal. On the other hand the current trends in development of corporate governance model in leading market economies are discussed. A conceptual model for modernization of corporate governance in Bulgaria is created. |
| Keywords: | corporate governance, ownership concentration, modernization of corporate governance |
| JEL: | G G32 G34 G38 |
| Date: | 2005–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpio:0501004&r=his |
| By: | DR. GODWIN CHUKWUDUM NWAOBI (QUANTITATIVE ECONOMIC RESEARCH BUREAU, NIGERIA) |
| Abstract: | SINCE 1930, EXPECTATIONS HAVE PLAYED AN IMPORTANT ROLE IN ECONOMIC THEORY AND THIS IS BECAUSE ECONOMICS IS GENERALLY CONCERNED WITH THE IMPLICATIONS OF CURRENT ACTIONS FOR THE FUTURE. THIS PAPER THEREFORE ARGUES THAT THE DEVELOPMENT OF RATIONAL EXPECTATIONS THEORY WILL MAKE A MORE SIGNIFICANT CONTRIBUTION TO ECONOMICS(AND IN PARTICULAR, MONETARY ECONOMICS) IN THE IMPETUS IT GIVES TO RESEARCH ON THE VITAL AREAS OF LEARNING AND PRICE EXPECTATIONS FORMATION |
| Keywords: | RATIONAL EXPECTATIONS, MONETARY THEORY, AUGUMENTED PHILLIPS CURVE, INFLATION, OUTPUT, PRICES |
| JEL: | E10 E50 N10 |
| Date: | 2005–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpma:0501001&r=his |
| By: | DR. GODWIN CHUKWUDUM NWAOBI (QUANTITATIVE ECONOMIC RESEARCH BUREAU, NIGERIA) |
| Abstract: | OIL AS AN ENERGY PROPELLER, IS THE LARGEST INTERNATIONALLY TRADED COMMODITY THAT SHOWS HIGHLY VISIBLE INTERPLAY OF POLITICS AND ECONOMICS IN THE DETERMINATION OF ITS INVESTMENT, PRODUCTION, TRADE AND PRICING POLICIES. THIS UNIQUENESS, NO DOUBT DEMANDS A WELL ARTICULATED OIL POLICY FOR AN OIL PRODUCING NATION. THUS, THE THRUST OF THE PAPER WAS TO EVALUATE THE STATE OF THE NIGERIA'S OIL POLICY IN THE 1970S/80S. THIS PAPER THEREFORE ARGUES THAT IN THE OIL POLICY FORMULATION PROCESS, WE HAVE TO TAKE INTO ACCOUNT THE VARIOUS STAKEHOLDERS WHOSE DECISIONS AND PARTICIPATION HAVE A GREAT IMPACT ON OIL INDUSTRY, AND WHO WANT TO SEE CLEAR TARGETS AND MINIMISE RISKS. |
| Keywords: | NIGERIA, ECONOMY, OIL, POLICY, ENVIRONMENT, NNPC, POLLUTANTS, OPEC, WORLDBANK,ENERGY, PETROLEUM, GOVERNMENT |
| JEL: | E60 F10 L70 L72 N50 N70 Q30 Q40 |
| Date: | 2005–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwppe:0501001&r=his |