scholarly journals Sustainability as an Economic Issue: A BioPhysical Economic Perspective

2020 ◽  
Vol 12 (1) ◽  
pp. 364 ◽  
Author(s):  
Kent Klitgaard
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Behavioral Economics ◽  
Capital Accumulation ◽  
Allocative Efficiency ◽  
Energy Resources ◽  
Theoretical Perspectives ◽  
Biophysical Economics ◽  
The Stability

This essay focuses upon how questions of sustainability are integrated into the teaching of introductory economics. While economics is insufficient by itself to understand the efforts we must take in order to live within nature’s limits, an understanding of economic theory is a vital part of a larger interdisciplinary whole. Yet sustainability is not well integrated into economic theory, especially mainstream, neoclassical, economics. Allocative efficiency and the rate of economic growth are the fundamental metrics while sustainability questions such as the stability of earth systems and the quality of energy resources are relegated to secondary status, if addressed at all. However, in order to address questions such as the earth’s continuing ability to support life, economists need to consider a variety of theoretical perspectives. In the late 1970s, Robert Carson published Economic Issues Today. It presents various economic topics from liberal, radical, and conservative viewpoints, and looking at crucial issues such as sustainability from various ideological perspectives could be an important teaching tool in this era of polarization. This article contends that environmental concerns today are no longer simply microeconomic but biophysical. Biophysical economics sees a sustainable economic theory as one that is grounded in the unity of social and natural sciences. The economy is embedded in a finite and non-growing biophysical system and is subject to its laws and its limits. The accumulation of carbon dioxide in the atmosphere, and the decline in the quality of energy resources limit further economic growth. So does the internal structure of capital accumulation. A system in overshoot cannot grow its way into sustainability, but a non-growing capitalist economy is mired in stagnation. We must develop new economic theories in order to achieve a sustainable future. Valuable insights can be found in behavioral economics, heterodox political economy, and natural science. Questions drawn from behavioral economics concerning how people think in difficult situations should be of great interest to sustainability educators.

Are Jobs and the Quality of the Environment Mutually Exclusive?

1995 ◽  
Vol 27 (5) ◽  
pp. 781-791 ◽  
Author(s):  
O Izraeli ◽  
L Mobley
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Empirical Evidence ◽  
Environmental Quality ◽  
General Public ◽  
Maintenance Costs ◽  
Trade Off

In this paper it is shown that there is no support in economic theory for the suggested trade-off between jobs and the environment. Moreover, improved environmental quality may accelerate economic growth via improved health and productivity of workers, lower maintenance costs, and enhanced productivity of capital inputs. Also, empirical evidence is presented on the preference of the general public regarding environmental quality. The empirical evidence indicates that people are ready to trade part of their income for improved environmental quality.

scholarly journals THE IMPACT OF INCREASING RETIREMENT AGE ON HEALTH SERVICES AND ECONOMIC GROWTH IN BRAZIL

2018 ◽  
Vol 16 (1) ◽  
pp. 29-41
Author(s):  
André Berardo Coelho ◽  
Nelson Leitão Paes
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Health Sector ◽  
Point Of View ◽  
Retirement Age ◽  
Human Capital Accumulation ◽  
The Impact ◽  
Health Care Production

This paper uses the Zon and Muysken (2001) model to investigate the effect of increasing the retirement age on health care production, human capital accumulation, and economic growth. All three sectors are interrelated, since the overall level of health affects both workers and the accumulation of human capital, while a higher level of human capital is related to better quality of health. And, finally, health and human capital affect the output of the economy. From the economic growth point of view the results seem to be positive. Increasing labor availability raises productivity in the health sector, which ultimately improves labor productivity, resulting in increased capital accumulation and economic growth. On the other hand, it is estimated a reduction in the propensity to consume and a smaller portion of the labor force allocated in the health sector.

scholarly journals The Impacts of Chinese FDI and China–Africa Trade on Economic Growth of African Countries: The Role of Institutional Quality

Economies ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 53
Author(s):  
Miao Miao ◽  
Qiaoqi Lang ◽  
Dinkneh Gebre Borojo ◽  
Jiang Yushi ◽  
Xiaoyun Zhang
Keyword(s):  
Economic Growth ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
African Countries ◽  
Policy Action ◽  
Mediating Role ◽  
Theoretical Perspectives ◽  
Chinese Foreign Direct Investment

While there is a consensus on the expanding importance of the China–Africa economic relationship, there is much more debate on how to portray the relationship. Thus, this study is aimed to examine the impacts of the China–Africa trade and Chinese foreign direct investment (FDI) on the growth of African countries controlling the mediating role of institutional quality. The two-step system Generalized method of moments (GMM) model is applied using robust data for the period of 2003–2017. Drawing on complementary theoretical perspectives, this study took into account the conditional effect of China–Africa trade and Chinese FDI subject to the institutional quality of African countries and the interdependence of China–Africa trade and Chinese FDI to African countries. The benign impacts of the China–Africa trade and Chinese FDI on economic growth to African countries remain contingent upon appropriate policy action to improve the institutional quality of African countries and the synergies between the China–Africa trade and Chinese FDI to African countries.

Why Institutions Matter: From Economic Development to Development Economics

2014 ◽  
Vol 22 (3) ◽  
pp. 469-490 ◽  
Author(s):  
Cosmin Marinescu
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Economic Development ◽  
Development Economics ◽  
Capital Accumulation ◽  
Value Systems ◽  
Neoclassical Theory ◽  
Useful Knowledge ◽  
Essential Step ◽  
Production Growth

The last few decades have seen a significant growth of economists’ interest in studying institutions. They are generally preoccupied with explaining institutions using instruments that are specific for an economist, and especially with discerning the significance of institutions for both economic development and development economics. Therefore, the integration of institutions into economic theory is an essential step in our continuous attempt to refine and improve scientific explanations. The neoclassical theory of economic growth only identifies the conditions needed for material production growth, such as capital accumulation and technical progress. In order to explain ‘why’ people save, invest, learn and seek useful knowledge, special attention must also be paid to institutional and value systems.

scholarly journals The Impact of Financial Sector Development and Sophistication on Sustainable Economic Growth

2019 ◽  
Vol 11 (6) ◽  
pp. 1713 ◽  
Author(s):  
Cristian Paun ◽  
Radu Musetescu ◽  
Vladimir Topan ◽  
Dan Danuletiu
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Capital Accumulation ◽  
Value Added ◽  
Financial Sector ◽  
Sustainable Growth ◽  
Financial Sector Development ◽  
And Performance ◽  
Classical Economic ◽  
The Impact

The drivers of economic growth and development are among the most important issues explored by economic theory. Sustainability of economic development was previously linked by various economic schools of thought to natural resources (agriculture, land, minerals, metals etc.), labor force (including skills, productivity, and education), entrepreneurship or technology and innovation. Capital was later introduced by classical economic theory as the key element. Without significant capital accumulation, all other production factors remain idle. The value added of the production process is a result of the existence, the accessibility and the cost of capital. Therefore, the development and the sophistication of the financial sector has gradually become very important for any nation interested in sustainable growth. This paper investigates the impact of financial sector development, sophistication and performance on economic growth based on a panel regression methodology. We found statistically significant results that confirm the importance of this connection and that are very consistent with economic theory and previous relevant articles and studies.

The resurgence of gig work: Historical and theoretical perspectives

2017 ◽  
Vol 28 (3) ◽  
pp. 382-401 ◽  
Author(s):  
Jim Stanford
Keyword(s):  
20Th Century ◽  
Business Model ◽  
Theoretical Perspective ◽  
Employment Relationship ◽  
Work Organisation ◽  
Quality Of Work ◽  
Theoretical Perspectives ◽  
The Stability ◽  
Standard Employment Relationship

Digital platform businesses primarily utilise on-call contingent workers, using their own tools and equipment, to perform the productive work associated with the supplied service. The expansion of this business model has led some to proclaim that traditional ‘jobs’ will come to an end. Some welcome this development, others fear its consequences for the stability and quality of work – but most see it as driven primarily by technology, and therefore largely ‘inevitable’. This article provides historical and theoretical perspective on the expansion of digitally mediated work, to better understand the range of forces (technological, economic and socio-political) at work. It shows that the major features of platform work were all visible in earlier periods of capitalism, but they became less prominent with the rise of the ‘standard employment relationship’ in the 20th century. The rise and fall of the standard employment relationship is described with reference to the changing context for the labour extraction effort of private employers. A better understanding of the complete range of forces driving changes in work organisation, and a rejection of the assumption that they are technologically determined and hence inevitable, can inform regulatory and political responses to the rise of platform work.

scholarly journals Our favourite irrationalities

2011 ◽  
Vol 2 (1) ◽  
pp. 123-135
Author(s):  
Gábor Király
Keyword(s):  
Economic Theory ◽  
Behavioral Economics ◽  
Everyday Life ◽  
Cognitive Ability ◽  
Supply And Demand ◽  
Mainstream Economic ◽  
Basic Assumptions ◽  
Starting Point ◽  
The Stability ◽  
Young Researchers

Ariely is one of the young researchers who are at the forefront of the discipline called behavioral economics. Behavioral economics tends to question the basic assumptions of economic theory such as rationality and the infinite cognitive ability of the actor and the stability and fixed nature of our preferences. In connection with these, such general laws as supply and demand also come under scrutiny. The starting point of these researchers is that one should ask how people actually behave and make decisions in everyday life, not how they should behave according to mainstream economic theory.

scholarly journals TECHNOLOGICAL SOURCES OF ECONOMIC GROWTH IN EUROPE AND THE U.S.

2018 ◽  
Vol 24 (3) ◽  
pp. 1178-1199 ◽  
Author(s):  
Benedetto MOLINARI ◽  
José L. TORRES
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Technical Change ◽  
Capital Accumulation ◽  
Structural Growth ◽  
Determinants Of Economic Growth ◽  
Different Sources ◽  
Equilibrium Growth

This paper assesses the role of different sources of technological change as determinants of economic growth in a group of selected OECD countries during the period 1980–2010. We consider three different sources of growth: neutral technical change associated with Total Factor Productivity, investment-specific technical change (ISTC) embodied in capital assets, and improvements in the quality of labor services generated by human capital accumulation. The contribution to growth of each of these sources is computed using two different approaches: the standard (statistical) growth accounting and the structural growth decomposition obtained from a general equilibrium growth model. We found that the effect of ISTC dominates that of neutral technology and human capital in all of the countries considered. On average, more than 50% of productivity growth is explained by ISTC. Contributions to growth from ICT and non-ICT technical change are in general of similar magnitude.

scholarly journals BASIC PRINCIPLES OF BEHAVIORAL ECONOMICS AND PROSPECTS FOR THEIR APPLICATION IN THE PUBLIC HEALTH SYSTEM

2020 ◽  
Vol 73 (9) ◽  
pp. 2026-2030
Author(s):  
Lesia A. Rudenko ◽  
Vladyslav A. Smiianov ◽  
Olha I. Smiianova
Keyword(s):  
Public Health ◽  
Economic Theory ◽  
Behavioral Economics ◽  
Public Health System ◽  
Human Life ◽  
Basic Principles ◽  
The Public ◽  
Interesting Possibility ◽  
Classical Economic

Behavioral economics is a branch of economic theory that studies the influence of psychological factors on people’s decisions in various life situations. At the same time, much attention is paid to situations where people behave differently than predicted by classical economic theory with its assumption of rationality and selfishness. Interesting possibility of application of behavioral economic in various spheres of human life and society, for example, reforms introducing, insurance system, public health and medicine (healthy living, disease prevention, following-up to the doctor’s recommendations, improving the quality of care, etc.).

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