How Pigou Solved a Fundamental Theoretical Problem

In this paper, the author critically analysed a unique passage of Pigou's 1933 “The Theory of Unemployment”. Here he is faced with a fundamental theoretical problem in the definition of the national dividend or national income, which has far-reaching consequences on the comprehension of the circulation of money. Pigou is one of the few economists who have noticed this problem and discussed it in the history of economics. The problem can be stated as follows: the part of the value of output that makes up for depreciation; is or is not up for division? Does or does not it become income (that is, wages and profits) in the aggregate? The passage analysed in this paper is exceptional in the history of economics. It is so, first, because it faces the problem. Secondly, but no less important, because Pigou, despite his hesitations, holds the nowadays minoritarian position that the value of the part of the output that makes up for depreciation does not become income for any economic factor. This view implies that this part of the output is not up for division and, therefore, is not a part of aggregate income.

Agglomeration, Misallocation, and (the Lack of) Competition

Industrial agglomeration policies may limit competition. We develop, validate, and apply a novel approach for measuring competition based on the comovement of markups and market shares among firms in the same location and industry. Then we develop a model of how this reduction in competition affects aggregate income. We apply our approach to the well-known special economic zones (SEZs) of China. We estimate that firms in SEZs exhibit cooperative pricing almost three times as intensively as firms outside SEZs. Nevertheless, we model the aggregate consequences of SEZs and find positive effects because markups become higher but also more equal. (JEL D22, L60, O14, O18, P25, P31, R32)

Education, work participation and income in Agriculture Industri In Indonesia

This study examines the relationship of agricultural education in encouraging work participation in agriculture which in turn can increase the aggregate income of people who work in agriculture as indicated by an increase in Employment Income in Agriculture in Indonesia. To achieve this goal, the Quantitative Threshold Autoregressive method is used to predict the behavior of the data so that the behavior of the relationship between the data can be seen and can be seen the growth of community income and work participation in agriculture with education as the driving factor. The hope is that knowing past behavior data can be an indicator of decisions that can be taken in the future. We found that Education in agriculture is an effort to increase human resources in agriculture. Agriculture with a lot of potentials needs to be empowered and developed. Where agriculture can absorb labor and improve welfare in Indonesia.

Incorporating a monetary variable into the Schelling model addresses the issue of a decreasing entropy trace

The Schelling model of segregation has been shown to have a simulation trace which decreases the entropy of its states as the aggregate number of residential agents surrounded by a threshold of equally labeled agents increases. This introduces a paradox which goes against the second law of thermodynamics that states how entropy must increase. In the efforts to bring principles of physics into the modeling of sociological phenomena this must be addressed. A modification of the model is introduced where a monetary variable is provided to the residential agents (sampled from reported income data), and a dynamic which acts upon this variable when an agent changes its location on the grid. The entropy of the simulation over the iterations is estimated in terms of the aggregate residential homogeneity and the aggregate income homogeneity. The dynamic on the monetary variable shows that it can increase the entropy of the states over the simulation. The path of the traces with both variables in the results show that the shape of the region of entropy is followed supporting that the decrease of entropy due to the residential clustering has a parallel and independent effect increasing the entropy via the monetary variable.

Organization of primary, analytical and synthetic accounting of biological assets and agricultural products

The article substantiates the provisions of appraisal, primary, analytical and synthetic accounting of biological assets and agricultural products at fair value less costs of sale. The methodology is recommended for determining the fair value less costs of selling biological assets and the commercial and non-commercial agricultural products collected (received) from biological assets. Forms of primary documents, accounting registers and, accordingly, recommendations for the organization of primary, analytical, synthetic accounting and analysis of biological assets assessed at fair value less costs of sale and results from their biotransformation (agricultural products, income, expenses and financial results) have been developed. A method is proposed for determining the aggregate financial results (aggregate income, aggregate expenses and aggregate profit) from the biotransformation of biological assets. The methodology for assessing changes in the fair value of biological assets as of the end of the next reporting period is recommended.