Economic Policy

2019 ◽  
pp. 173-195
Author(s):  
William Keech ◽  
William Scarth
Keyword(s):  
United States ◽  
Economic Growth ◽  
Economic Policy ◽  
Fiscal Policy ◽  
Income Distribution ◽  
Political Institutions ◽  
Productivity Growth ◽  
The United States ◽  
Economic Policies ◽  
Sustainable Fiscal Policy

This chapter identifies the differing policies and outcomes that Canadians and Americans have pursued with respect to economic growth, stabilization, and income distribution, and it analyzes several factors that can partially explain why divergent policy choices have emerged. The United States (U.S.) has recorded better productivity growth, while Canada has achieved a more sustainable fiscal policy, a less fragile financial sector, and more generous distributional policies. These contrasting outcomes are related to differences in size and geography, in political culture, and in political institutions. The analysis also considers how much it may be possible for each country’s policymakers to benefit from the other’s experiences. While identifying some lessons in this regard, the authors conclude that the sheer difference in the size of the two economies affects which economic policies can be expected to be effective. As a result, it is concluded that convergence in economic policymaking will remain somewhat limited.

Income Distribution

2013 ◽  
Author(s):  
Joel Blau
Keyword(s):  
United States ◽  
Economic Growth ◽  
Income Distribution ◽  
Social Welfare ◽  
Welfare Policy ◽  
The United States ◽  
Social Welfare Policy ◽  
Political Democracy ◽  
Policy Issues ◽  
Measurement Issues

Income distribution is defined as both the process of distributing income to individuals and families and as the statistical consequences of that distribution. After examining the measurement issues that enter into this distribution, the discussion highlights the evidence for rising inequality in the United States. It finds the top quintile, and even more starkly, the top 5% and 1% of all households, to have made most of the gains. Identifying the effects of globalization as the prime cause for this shift, income distribution is then correlated with other social welfare policy issues such as economic growth, health, and political democracy.

Increasing Impact Of Stock Market Performance On Government Tax Revenues

2017 ◽  
Vol 1 (2) ◽  
pp. 333
Author(s):  
Tomáš Plíhal ◽  
Tomáš Urbanovský
Keyword(s):  
United States ◽  
Economic Growth ◽  
Fiscal Policy ◽  
Stock Market ◽  
Decomposition Analysis ◽  
The United States ◽  
Current Approach ◽  
Stock Market Development ◽  
Tax Revenues ◽  
Stock Market Performance

<p class="AbstractText">The aim of this paper is to investigate the relationship between fiscal policy, economic growth and stock market in the United States. This issue has gained importance in the last decade because the market has changed. A significance break has been detected which impacts the nature of the nexus between certain variables. The correlation between the tax revenues and the stock market has increased noticeably, encouraging the revision of the current approach to fiscal policy. This study examines relationship between three variables, namely real GDP, federal government current tax receipts and the stock market represented by the Wilshire 5000 Total Market Index. Quarterly data from 1971 to 2015 are used, divided into two subsets in the year 2000, because there is an obvious change in trend and volatility of the variables. The analysis uses ADF and KPSS unit root tests to find the order of the integration of the data. Subsequent analysis applies Johansen cointegration test, vector error correction model, Granger causality tests and variance decomposition analysis. The results demonstrate that the selected variables are cointegrated, and performance of the stock market significantly increases its influence on government tax revenues in the second period. The findings of this paper are significant for policy makers. Understanding how stock market development and economic growth influence tax revenues and vice versa is crucial for the efficient implementation of successful fiscal policy. Investors in the economy of the United States will be also able to benefit from these results which will help them to understand economic conditions and improve their investment decisions. </p>

Testing the efficacy of the economic policy uncertainty index on tourism demand in USMCA: Theory and evidence

2019 ◽  
Vol 26 (8) ◽  
pp. 1344-1357 ◽  
Author(s):  
Cem Işık ◽  
Ercan Sirakaya-Turk ◽  
Serdar Ongan
Keyword(s):  
United States ◽  
Economic Policy ◽  
Explanatory Power ◽  
The United States ◽  
Policy Uncertainty ◽  
Economic Policies ◽  
Tourism Demand ◽  
Economic Policy Uncertainty ◽  
Demand Models ◽  
The Impact

The global economic outlook is more uncertain than ever before and sensitive to uncertainties related to a variety of economic policies decisions of all stakeholders and governments. These perceived uncertainties may be the culprit in shrinking the size of overall economic activity. Under increasing uncertainties, travel and vacation plans of consumers can be canceled or postponed. Therefore, policy-related economic uncertainties are expected to affect tourism demand beyond well-established economic and noneconomic factors. In this study, we explore the efficacy and the impact of the economic policy uncertainty (EPU) index in predicting the tourism demand on international tourist arrivals (a measure of tourism demand) to the United States from Mexico and Canada over the period of January 1996–September 2017. The findings of the study reveal that EPU is a significant predictor as increases in the EPU index lead to decreases in tourism demand to the United States. Canadian tourists seem to be more sensitive to EPUs. Increases in the EPU index cause them to reduce Canadians’ vacations to the United States proportionally more than the Mexicans. To enhance the explanatory power of current models, the uncertainty can be a theoretically significant construct thus needs to be included when calibrating demand models.

scholarly journals Should China’s Economic Policy Be Resisted?

2021 ◽  
Author(s):  
Valentin K. POSPELOV ◽  
Valentina N. MIRONOVA ◽  
Petr I. CHUVAKHIN
Keyword(s):  
United States ◽  
Economic Policy ◽  
World Economy ◽  
The United States ◽  
Economic Policies ◽  
The Public ◽  
Reform Period ◽  
The World ◽  
Free Trade Policy ◽  
Economic Strengthening

China's economic policies were transformed during the reform period that started in 1979, when the most populated country in the world adopted market-based reforms. Currently, China not only has grown to become the second largest and mid income economy in the world from one of the world's poorest countries, but also actively advances the free trade policy and fills the developing niches, although the latter has caused some concerns. The Chines active economic policy along with its economic and political strengthening in addition to the tensions with the United States rise the question whether the Chinese economic policy should be resisted? This paper analyses the different aspects of China’s economic policy and intents to answer the question based on the importance of the Chinese role in the world economy and development while the public opinion toward China’s economic strengthening has been considered as well.

scholarly journals United States: “National Egoism” Policy under the COVID-19 Pandemic

2020 ◽  
Vol 13 (5) ◽  
pp. 145-157
Author(s):  
L. F. Lebedeva
Keyword(s):  
United States ◽  
Economic Policy ◽  
Well Being ◽  
The United States ◽  
Economic Policies ◽  
Many Instruments ◽  
The Us ◽  
Us Government ◽  
New Policies ◽  
National Economies

The rising “national egoism” in the US economic policy has been taken place since D. Trump’s inauguration (January 20, 2017), with focus on protectionist measures, priorities for domestic production; on encouraging US companies to invest at home instead of foreign markets; control the fields of foreign investors in the American economy, etc. Covid-19 pandemic seems to have a massive impact on global diffusion of “national egoism” practices, making states more isolationist. The outbreak of the coronavirus has already become an important factor of influence on the national economies and relations between them. The article reviews the ways COVID 19 pandemic is intensifying the economic policies of President D. Trump based on nationalism, pointing out the trade and investment restrictions, their global effects. In light of the uncertainty about the pandemic’s duration and its economic impact, the paper is focusing on the immediate and more long-term global consequences of the US economic policy. All sorts of US government policy innovations during Trump’s presidency, including imposing and threatening to impose sanctions (which become usual, as to the US policy, before pandemic), tariff protections have their effects, spreading around the globe. Most of the new policies have become even more important under coronavirus pandemic, particularly concerning major strategic competitors of the United States. The American approaches to developing new rules and updating existing ones for the international connections, new import and export control actions are designed to promote economic objectives and political objectives as well. Being a powerful political and economic actor US have many instruments to influence the relations between countries. At the same time reinforced “national egoism” practices can make the economic and international trade recovery even more sluggish in the post – pandemic world.

America’s Great Decoupling

2018 ◽  
Author(s):  
Lane Kenworthy
Keyword(s):  
United States ◽  
Economic Growth ◽  
Income Distribution ◽  
The United States ◽  
Living Standards ◽  
Significant Extent ◽  
Real Wages ◽  
Main Factor

This chapter sets out the significant extent to which the fruits of economic growth since the late 1970s have gone to the very top of the income distribution in the case of the United States. There has been little growth in real wages and incomes for most households, with dual earning being the main source of any such increase. The chapter identifies the growth in incomes at the very top as the main factor accounting for stagnation across the rest of the distribution, and discussed the range of channels through which this relationship operates, more and less directly. It also discusses broader debates about the extent to which real incomes are likely to reflect changes in living standards, and concludes that, while not telling the whole story, they remain central.

Argentina: Economic Disaster and the Rejection of the Political Class

2005 ◽  
Vol 4 (1-2) ◽  
pp. 175-206 ◽  
Author(s):  
Marita Carballo ◽  
Frederick Turner
Keyword(s):  
Economic Growth ◽  
Income Distribution ◽  
Economic Crisis ◽  
Political Institutions ◽  
The Political ◽  
Economic Policies ◽  
Political Class ◽  
Political Constraints

AbstractThe Argentine economic crisis of 1999-2003 caused GDP to drop precipitously and levels of poverty and unemployment to rise greatly. Although more profound, this crisis resembled three others since 1966, and it led Argentines overwhelmingly to reject the members of their political class. In 1999, the confidence of Argentine citizens in politicians and political institutions was already very low, reflecting in part the earlier crises and the fact that income distribution in the country had become far more unequal in the 1990s. Causes for the economic crisis include economic policies, political constraints, and the structure of Argentine society and values. Although some economic growth has returned under the presidency of Néstor Kirchner since 2003, the depth of the rejection of the political class is so great that it may lead to some change in Argentine values.

Book Reviews

2017 ◽  
Vol 55 (4) ◽  
pp. 1627-1630
Keyword(s):  
United States ◽  
Economic Growth ◽  
Latin American ◽  
Productivity Growth ◽  
Growth And Development ◽  
The United States ◽  
Economic Research ◽  
Industry Level ◽  
The World ◽  
Level Production

Markus Poschke of McGill University reviews “The World Economy: Growth or Stagnation?” by Dale W. Jorgenson, Kyoji Fukao, and Marcel P. Timmer. The Econlit abstract of this book begins: “Fourteen papers analyze the long-term process of structural change and productivity growth across the world using World KLEMS (capital, labor, energy, materials, and purchased services) Initiative research and provide comparisons of industries and economies in order to investigate the impact of international trade and investment. Papers discuss US economic growth—a retrospect, prospect, and lessons from a prototype industry-level production account for the United States, 1947–2012; the structural causes of Japan's lost decades; productivity growth in Europe before and since the 2008–09 economic and financial crisis; Latin American KLEMS (LA–KLEMS)—economic growth and productivity in Latin America; China's strategic move for a new stage of development—a productivity perspective; productivity growth in India under different policy regimes; whether mining is fueling long-run growth in Russia—industry productivity growth trends in 1995–2012; intangibles, information and communications technology, and industry productivity growth—evidence from the European Union; whether intangibles contribute to productivity growth in East Asian countries—evidence from Japan and the Republic of Korea; a Bureau of Economic Analysis–Bureau of Labor Statistics industry-level production account for the United States—integrated sources of growth, intangible capital, and the US recovery; measuring human capital—country experiences and international initiatives; a half-century of trans-Pacific competition—price-level indices and productivity gaps for Japanese and US industries, 1955–2012; searching for convergence and its causes—an industry perspective; and the rise of global manufacturing value chains—a new perspective based on the World Input–Output Database. Jorgenson is Samuel W. Morris University Professor at Harvard University. Fukao is Professor with the Institute of Economic Research at Hitotsubashi University and Program Leader at the Research Unit for Statistical and Empirical Analysis. Timmer is Professor of Economic Growth and Development and Director of the Groningen Growth and Development Centre at the University of Groningen. ”

scholarly journals COVID-19 Is Transforming Economic Policy in the United States

2021 ◽  
Vol 56 (4) ◽  
pp. 185-190
Author(s):  
Claudia Sahm
Keyword(s):  
United States ◽  
Economic Growth ◽  
Economic Policy ◽  
Government Spending ◽  
The United States

AbstractCutbacks in government spending slowed the recovery and led to lasting damage to workers and economic growth.

The Keynesian Consensus and Its Limits

2017 ◽  
Author(s):  
Iwan Morgan
Keyword(s):  
United States ◽  
Economic Growth ◽  
Economic Policy ◽  
Soviet Union ◽  
The United States ◽  
Budget Deficits ◽  
The Soviet Union ◽  
Cyclical Fluctuations ◽  
The Cold War ◽  
Static Concept

This chapter argues that a postNew Deal Keynesian consensus shaped U.S. economic policy from 1945 to 1965 based on an evolving rather than static concept of Keynesianism that eventually exceeded the limits of political agreement. With enactment of the Employment Act of 1946, postwar economic policy entered a period of bipartisan consensus over the use of what could be called “compensatory Keynesianism” to limit cyclical fluctuations in the economy.This entailed running compensatory budget deficits during periods of recession (1949, 1953–54, 1957–58) and combating inflation through tight budgets during periods of prosperity.As economic growth slowed, however, new debate arose over the use of fiscal policy to maximize expansion. This became tied into the Cold War debate over how the United States could keep ahead of the Soviet Union in the post–Sputnik era; though more limited than the “compensatory” consensus, pro-growth ideas had attained political ascendancy by 1960.

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