AN ANALYSIS OF THE SHORT AND LONG-RUN TRADE-OFFS BETWEEN UNEMPLOYMENT AND INFLATION AND ESTIMATES OF THE EQUILIBRIUM STEADY STATE UNEMPLOYMENT RATE IN AUSTRALIA

1977 ◽  
Vol 16 (29) ◽  
pp. 273-284 ◽  
Author(s):  
B. BHASKARA RAO
Keyword(s):  
Steady State ◽  
Unemployment Rate ◽  
Trade Offs ◽  
Long Run ◽  
State Unemployment Rate ◽  
State Unemployment

Inflation-Unemployment Trade-Offs In ASEAN-10

2020 ◽  
Vol 9 (2) ◽  
pp. 241-256
Author(s):  
Nurul Lisani ◽  
Raja Masbar ◽  
Vivi Silvia
Keyword(s):  
Unemployment Rate ◽  
Inflation Targeting ◽  
Phillips Curve ◽  
Panel Cointegration ◽  
Vector Error Correction ◽  
Trade Offs ◽  
Long Run ◽  
Panel Cointegration Test ◽  
Short Run ◽  
Variance Decompositions

This study empirically explores the nature of inflation-unemployment dynamic causal relationships both in the short and long-run in the ASEAN-10 over the 1989-2018 period. Based on the panel cointegration test, the study documented a long-run equilibrium between inflation and unemployment. Using the Vector Error Correction Model (VECM) analysis, the study found an insignificant inflation-unemployment relationship in the short-run. However, in the long-run, inflation is found to affect the unemployment rate positively. Our results from the Variance Decompositions (VDCs) analysis also supported these findings, where the unemployment responded at the more significant percentage to shocks in inflation compared to the response of inflation to shocks in unemployment. These findings only supported the relevance of the Phillips curve theory in the long-run. Overall, these findings imply that although inflation targeting policy is not relevant to the short-run, it becomes crucial and effective to reduce the unemployment rate in ASEAN-10 in the long-run.JEL Classifications: E52, E58, J64 How to Cite:Lisani, N., Masbar, R., & Silvia, V. (2020). Inflation-Unemployment Trade-Offs In Asean-10. Signifikan: Jurnal Ilmu Ekonomi, 9(2), 241-256. https://doi.org/10.15408/sjie.v9i2.16346.

The Olympic Games as a News Shock

2017 ◽  
Vol 19 (6) ◽  
pp. 884-906 ◽  
Author(s):  
Viktoria C. E. Langer ◽  
Wolfgang Maennig ◽  
Felix Richter
Keyword(s):  
Steady State ◽  
Olympic Games ◽  
Structural Models ◽  
Adjustment Process ◽  
Dynamic Adjustment ◽  
Economic Variables ◽  
Long Run ◽  
News Shock ◽  
Steady State Levels ◽  
The Olympic Games

The awarding of the Olympic Games to a certain city or the announcement of a city’s Olympic bid may be considered as a news shock that affects agents’ market expectations. A news shock implies potential impacts on the dynamic adjustment process that change not only the volatility but also the long-run steady-state levels of endogenous economic variables. In this study, we contribute to and extend previous researchers’ attempts to empirically test for the Olympic Games as a news shock by implementing full structural models and by matching Olympic hosts and bidders to structurally similar countries.

Off-Label Use of Medicines: A Comparative Study on the Regulation of Medicinal Products in Selected European Union Member States

2020 ◽  
pp. 1-22
Author(s):  
Wolney da Cunha SOARES JÚNIOR
Keyword(s):  
European Union ◽  
Off Label Use ◽  
Off Label ◽  
Pharmaceutical Firms ◽  
Regulatory Systems ◽  
Trade Offs ◽  
Long Run ◽  
Drug Regulations ◽  
European Union Member States ◽  
Label Use

Many governments have implemented a controlled off-label use of medicines as a tool combined with reimbursement decisions, among other policies, to avoid pharmaceutical firms gaming regulatory systems based on the requirement for marketing authorisation. This article aims to compare the drug regulations in selected European Union countries (France, Italy and Germany) in order to identify specific provisions and concrete solutions implemented by them regarding that matter. The employment of an economic analysis of the law as a theoretical framework allows for the identification of the incentives created in the long run by the referred regulations. The scholarly literature identifies a myriad of drawbacks and advantages associated with off-label practices, and a welfare analysis is ambiguous. Off-label practices are a reality; thus, it is advisable to elaborate policy measures in order to address these practices and condition them on some requirements, taking into account that off-label practices imply trade-offs among access to healthcare, protection of public health, competitiveness and innovation in the industry.

Teacher Attrition and Mobility Over Time

2021 ◽  
pp. 0013189X2110608
Author(s):  
Dan Goldhaber ◽  
Roddy Theobald
Keyword(s):  
Teacher Attrition ◽  
Negative Relationship ◽  
Public School Teachers ◽  
School Teachers ◽  
Unemployment Rates ◽  
The Past ◽  
State Unemployment Rate ◽  
Strong Negative Relationship ◽  
State Unemployment ◽  
Over Time

We use 35 years of data on public school teachers in Washington to calculate several different measures of teacher attrition and mobility. We explore how these rates vary over time and their relationship with the state unemployment rate. Annual rates of teacher attrition from the workforce have been between 5% and 8% for each of the past 35 years, and there is a strong negative relationship between unemployment rates and these rates of attrition. This history suggests that teacher attrition is likely to increase as the economy recovers after the pandemic, but this increase is likely to be modest.

The top-heavy shape of authoritarian bureaucracy: evidence from Russia and China

2021 ◽  
pp. 002085232110588
Author(s):  
Tao Li ◽  
Zhenyu M. Wang
Keyword(s):  
Steady State ◽  
Soviet Union ◽  
Rent Seeking ◽  
Tournament Theory ◽  
The Soviet Union ◽  
Long Run ◽  
Public Sector Reforms ◽  
Micro Level ◽  
Heavy Structure ◽  
Theory Framework

The prevalence of top-heavy bureaucracies in non-democracies cannot be explained by the theories of Parkinson, Tullock, Niskanen, or Simon or by classical managerial theories. When bureaucracy positions carry rents, the competition for promotion becomes a rent-seeking process. Borrowing the career-tournament theory framework from managerial scholarship, we argue that top-heavy bureaucracy resembles a tournament with too many finalists. When rent is centralized at the top (i.e. power centralization), as is the case in many non-democracies, the optimal bureaucracy should be top-heavy, accommodating and encouraging relatively more finalists at the top to compete for the final big prize. We provide suggestive evidence by analyzing ministry organizations in China (1993–2014) and Russia (2002–2015). After some fluctuations, the shape of Russian ministries eventually converged with that of China. In the steady state, their ministry shapes are far more top-heavy than what is prescribed by managerial theories. At the micro-level, ministry power centralization, measured by the perceived influence of the ministers, is correlated with ministry top-heaviness in Russia. Points for practitioners Our theory suggests that a top-heavy authoritarian bureaucratic structure naturally follows from a back-loaded sequential career tournament and an effort-maximizing bureaucratic leader. Our findings also suggest that Chinese and Russian ministries both converge to a highly top-heavy structure in the long run. We demonstrate that the top-heavy structure first arose during the planned-economy experiment in the Soviet Union. Our research sheds new light on public-sector reforms that aim to reduce bureaucracy top-heaviness in autocracies.

scholarly journals ENDOGENOUS BORROWING CONSTRAINTS AND WEALTH INEQUALITY

2016 ◽  
Vol 20 (6) ◽  
pp. 1413-1431 ◽  
Author(s):  
Joydeep Bhattacharya ◽  
Xue Qiao ◽  
Min Wang
Keyword(s):  
Steady State ◽  
Credit Market ◽  
Wealth Inequality ◽  
Borrowing Constraints ◽  
Initial Distribution ◽  
The Other ◽  
Capital Investments ◽  
Loan Default ◽  
Long Run ◽  
Human Capital Investments

This paper studies the evolution of wealth inequality in an economy with endogenous borrowing constraints. In the model economy, young agents need to borrow to finance human capital investments but cannot commit to repaying their loans. Creditors can punish defaulters by banishing them permanently from the credit market. At equilibrium, loan default is prevented by imposing a borrowing limit tied to the borrower's inheritance. The heterogeneity in inheritances translates into heterogeneity in borrowing limits: endogenously, some borrowers face a zero borrowing limit, and some are partly constrained, whereas others are unconstrained. Depending on the initial distribution of inheritances, it is possible that all lineages are attracted either to the zero-borrowing-limit steady state or to the unconstrained-borrowing steady state—long-run equality. It is also possible that some lineages end up in one steady state and the rest in the other—complete polarization.

Indigenous Self-Governance and Development on American Indian Reservations

2021 ◽  
Vol 111 ◽  
pp. 233-237
Author(s):  
Dustin Frye ◽  
Dominic P. Parker
Keyword(s):  
American Indian ◽  
Indigenous People ◽  
Income Growth ◽  
Indian Reservations ◽  
Indian Reorganization Act ◽  
Trade Offs ◽  
Long Run ◽  
Per Capita ◽  
Will Self ◽  
American Indian Reservations

The UN Declaration on the Rights of Indigenous People promotes self-governance as a matter of justice rather than economics. How will self-governance affect the incomes of indigenous people? To gain insight, we compare long-run income growth on American Indian reservations with and without federal oversight through the 1934 Indian Reorganization Act. Reservations with more autonomy had 12-15 percent higher income per capita in 2016, even conditional on 1930s income. However, these more autonomous reservations also experienced wider income variance with more downside risk. The findings are consistent with theory emphasizing the development trade-offs between local and centralized governance.

Factors affecting level of unemployment in South Asia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aiza Shabbir ◽  
Shazia kousar ◽  
Muhammad Zubair Alam
Keyword(s):  
South Asian ◽  
Unemployment Rate ◽  
Significant Relationship ◽  
Good Governance ◽  
Asian Countries ◽  
Economic Variables ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Government

PurposeThis study aims to investigate the short-run and long-run relationship between economic variables and the unemployment rate in South Asian countries.Design/methodology/approachA panel Vector Error Correction (VECM) model is used to establish the long-run and the short-run relationship between unemployment rate and selected economic variables. Data were collected from WDI, WGI and FDSD for the year's 1994–2016.FindingsThe finding of the study showed a negative and significant relationship at the 5% level of significance among governance, internet users, mobile cellular subscriptions, fixed broadband subscriptions and human capital with an unemployment rate of South Asian economies. On the other hand, financial activity (credit) and population growth have a positive and significant relationship with the unemployment rate.Research limitations/implicationsIn the light of our findings clear that employment problems can only be created if the government does not put in place adequate measures to control the population and allocate resources equitably, giving a sense of belonging to all citizens. Therefore, to provide the controlled population with the necessary employment opportunities, it is necessary to allocate resources efficiently and to launch projects aimed at creating jobs.Practical implicationsTransparency or merit is the basis of good governance and the very first step to achieving the goal of good governance is to fight against corruption. It provides a complete justification for providing good quality management records, financial controlling and managerial systems.Originality/valueThe connections between governance and unemployment are complex and need to be studied in a detailed manner. There is the absence of literature that strongly interfaces good governance to unemployment; the fundamental work in this regard is Farid (2015). They locate a solid relationship between good governance and improving external debt situation by in Pakistan a time series analysis. But there is no research in the context of South Asian countries between governance and unemployment.

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