scholarly journals Intangible Investment and Low Inflation

2020 ◽  
Vol 20 (190) ◽  
Author(s):  
Subir Lall ◽  
Li Zeng
Keyword(s):  
Technological Change ◽  
Economic Activity ◽  
Phillips Curve ◽  
Market Concentration ◽  
Distinguishing Characteristic ◽  
Marginal Costs ◽  
Aggregate Supply ◽  
Show Evidence ◽  
Intangible Investment ◽  
A Share

Intangible investment is growing as a share of economic activity. We present a simple framework incorporating its distinguishing characteristic of generally greater scalability and lower marginal costs than tangible investment. We show evidence that this may have contributed to more elastic aggregate supply in recent years, which is consistent with lower inflation and a flattening of the Phillips curve. This framework also highlights the channels through which technological change, a large constituent of intangible investment, may be leading to wage stagnation and greater market concentration.

Analysis of Externalities of Economic Activity of the Enterprise

2021 ◽  
Vol 2021 (2) ◽  
pp. 86-94
Author(s):  
Dmytro V. Kozlov
Keyword(s):  
Transaction Costs ◽  
Economic Activity ◽  
Environmental Externalities ◽  
Negative Externalities ◽  
Time Duration ◽  
Marginal Costs ◽  
Positive Externalities ◽  
State And Market ◽  
The Impact

The problems of research of internalities and externalities with the further development of the general classification of externalities of economic activity of the enterprise are defined. The influence of negative and positive externalities on society and enterprise is considered. The concept of negative externalities differs from transaction costs. It is noted that transaction costs can be reflected in cash and can be offset by market inclusion in the price of the products, but this is not possible for externalities. It is emphasized that the purpose of economic activity of any enterprise is to exceed the positive externalities over the negative and achieve the maximum difference between them. The different time duration of the impact of the enterprise on third parties is given. The sign of externalities on the scale of action is emphasized. The externalities of the enterprise are considered in their essence according to the principles of sustainable development, highlighting economic, social and environmental externalities. It is emphasized that economic externalities can arise in the course of the whole business cycle of full-fledged work of all parts of the enterprise. In contrast to economic, social externalities affect people both within the enterprise, that is workers and citizens of the society in which the enterprise operates. And when it comes to environmental externalities, the mediator between the source and recipient of externalities is the environment. Externalities are distinguished according to the means of accounting and the degree of influence on the subject of perception. The necessity of regulation of externalities through internalization and actions of the enterprise with the help of state and market instruments is substantiated. It is emphasized that internalization is the transformation of negative externalities into positive ones in terms of convergence of marginal costs and benefits of the enterprise to marginal social costs and utility.

scholarly journals Inflation and the steeplechase between economic activity variables: evidence for G7 countries

2016 ◽  
Vol 17 (1) ◽  
Author(s):  
Jaromír Baxa ◽  
Miroslav Plašil ◽  
Bořek Vašíček
Keyword(s):  
Economic Activity ◽  
Phillips Curve ◽  
Model Averaging ◽  
Real Economy ◽  
G7 Countries ◽  
Real Activity ◽  
The Great Recession ◽  
The Us ◽  
Activity Measures ◽  
Dynamic Model Averaging

AbstractA sharp increase in unemployment accompanied by a relatively muted response of inflation during the Great Recession and a consecutive inflationless recovery cast further doubts on the very existence of the Phillips curve as a systemic relation between real activity and inflation. With the aid of dynamic model averaging, this paper aims to highlight that this relation resurfaces if (i) inflationary pressures are captured by a richer set of real activity measures, and (ii) one accounts for the existence of a non-linear response of inflation to the driving variable. Based on data for the US and other G7 countries, our results show that the relation between economic activity and inflation is quite sturdy when one allows for more complex assessment of the former. We find that measures of economic activity describe inflation developments to a varying degree across time and space. This can blur the picture of inflation–real economy comovements in models where only a single variable of economic activity is considered. The output gap is often outperformed by unemployment-related variables. Our results also confirm a weakening of the inflation–activity relationship (i.e. a flattening of the Phillips curve) in the last decade that is robust both across activity measures and across countries.

Social Capital in the Latvian Transition: Trust and Other Managerial Values

1998 ◽  
Vol 26 (4) ◽  
pp. 687-703 ◽  
Author(s):  
Gundar J. King ◽  
J. Thad Barnowe
Keyword(s):  
Public Policy ◽  
Social Capital ◽  
Technological Change ◽  
Economic Activity ◽  
Information Transfer ◽  
Frames Of Reference ◽  
Business Culture ◽  
Technological Changes ◽  
Economic Activities ◽  
Managerial Values

Values play an important role in any culture, shaping attitudes and aspirations, and supporting economic activities. They are widely acknowledged to be defining elements of business culture for managers and workers alike, despite difficulties in tracing the exact linkages they have with behaviors and events (Connor and Becker 1994). They impact individuals’ ability to make critical adjustments under conditions of accelerating technological change and unprecedented expansion of information transfer (Rothschild 1992). They also are thought to affect how well technological changes and economic activity are integrated with dominant social-political structures, helping to make public policy harmonious with frames of reference individuals hold, and lending meaning to appeals for courses of action (Buchholtz 1986).

Reformulating the Development Theory of Welfare

1984 ◽  
Vol 13 (4) ◽  
pp. 447-465
Author(s):  
Stephen Uttley
Keyword(s):  
Health Care ◽  
Economic Development ◽  
Technological Change ◽  
Technological Innovation ◽  
Economic Activity ◽  
Health Care Services ◽  
Welfare States ◽  
Development Theory ◽  
Care Services ◽  
History Of

ABSTRACTIndustrialization, technological change and overall economic development are often cited as important factors in the development of welfare states. This article examines the importance of cycles in economic activity and cycles in technological innovation to enhancing our understanding of welfare. The history of technological change in health-care services is used to illustrate the argument.

scholarly journals Phillips curve in Brazil: an unobserved components approach

2014 ◽  
Vol 44 (4) ◽  
pp. 787-814 ◽  
Author(s):  
Vicente da Gama Machado ◽  
Marcelo Savino Portugal
Keyword(s):  
Economic Activity ◽  
Inflation Targeting ◽  
Inflation Rate ◽  
Phillips Curve ◽  
Capacity Utilization ◽  
Reduced Form ◽  
Utilization Rate ◽  
Subprime Crisis ◽  
Unobserved Components ◽  
Using Data

This paper estimates reduced-form Phillips curves for Brazil with a framework of time series with unobserved components, in the spirit of Harvey (2011). However, we allow for expectations to play a key role using data from the Central Bank of Brazil's Focus survey. Besides GDP, we also use industrial capacity utilization rate and IBC-Br index, as measures of economic activity. Our findings support the view that Brazilian inflation targeting has been successful in reducing the variance of both the seasonality and level of the inflation rate, at least until the beginning of the subprime crisis. Furthermore, inflation in Brazil seems to have responded gradually less to measures of economic activity in recent years. This provides some evidence of a flattening of the Phillips curve in Brazil, a trend previously shown by recent studies for other countries.

scholarly journals Using a Civil (Economic) Judicial Collateral Estoppel as a Means of Self-Defense for Entrepreneurs in Tax Disputes

2019 ◽  
Vol 8 (2S9) ◽  
pp. 1053-1057
Keyword(s):  
Economic Activity ◽  
State Intervention ◽  
Economic Activities ◽  
Judicial Practice ◽  
Current State ◽  
European Court ◽  
Show Evidence ◽  
Business Entities ◽  
Effective Use ◽  
Court Practice

In an environment where governments require more and more money to fulfill social obligations, and the business opportunity to pay taxes is decreasing, there are dangers of pressure from the authorities on business entities to increase payments. Therefore, the current state of relations between enterprises and the state is characterized by an increased level of state intervention in the affairs of enterprises, including control over their activities. This requires the development of protective preventive mechanisms in economic activity, which should be aimed at resolving issues of protecting the rights of business entities in relations with state bodies and preventing violations of these rights. The paper aims to clarify the develop protective preventive mechanisms in economic activity, which will be based on using a civil (economic) judicial collateral estoppel. Tasks of the study: a) determine the strategies, methods and techniques for the use of favorable court practice; b) to prepare recommendations on the use of favorable court practice. The methodic of research is based on the systematization of approaches to the consideration of tax disputes in courts, of ways and methods of effective use of favorable court practice for the implementation of protective preventive mechanisms in economic activity. When doing work studied and summarized Decisions of European Court of Human Rights, 3000 decisions of Ukrainian courts, and the authors' own court practice. The research results – it developed a methodology allowing to provide of effective use of favorable civil (economic) judicial practice for the implementation of protective and preventive mechanisms in the economic activities of taxpayers to prevent and decide tax disputes. The widespread use of these measures by entrepreneurs will ensure the formation of judicial practice in civil (economic) courts, which would confirm the legality of deals and, accordingly, their protection from modification in the interest of greater taxation, which would make it possible to show evidence of such legality of deals in administrative courts.

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