Why we need an allocative (and resourceful) welfare state

ABSTRACT In this essay, I propose an agenda for the welfare state of the 21st century that emphasizes its role as a mechanism of resource allocation. Since social and environmental problems are getting out of hand, the time for mere compensation is over: we need a mechanism for directly influencing systems of production and patterns of consumption in the direction of addressing those problems. This partially translates into a decisive sectoral shift towards public social services led by the welfare state. Among the advantages of this move, in addition to more socially balanced outcomes, are quality jobs and fulfillment of social needs in an environment-friendly way. The allocative task which gives the welfare state a constitutive role in shaping the socioeconomy complements its classic function as problem fixer. The allocative welfare state must be prepared to limit the domain of market allocation.

Nexus Between Sectoral Shift and Stock Return

The objective of this study is to examine the impact of sectoral shift on the stock return of Bangladesh. This study employs auto-regressive distributive lag (ARDL) approach using the weekly data of various sectoral indices of Bangladesh over the period from May 1999 to September 2016. The findings tend to indicate that there has possible sectoral portfolio diversification in the market and ‘general product industry' is the most exogenous and profitable sector from the rest. This study is one of the first attempts of the sectoral analysis and its impact on the stock return with the reference to Bangladesh. Furthermore, this study can be a benchmark for the policymakers of emerging economies to find the impact of economic transformation in the stock returns of the equity markets.

ANALISIS PERGESERAN SEKTOR PERTANIAN DI KABUPATEN LANGKAT PROVINSI SUMATERA UTARA

Principally the sectoral shift and development in a region is a sustainable activityto realize a good condition collectively and continuously. The objective of thisresearch is to analyze the change and shift of agricultural sector to the localeconomic condition in Regency of Langkat. The data applied in this research issecondary data collected from any institution/organization related to the studiedproblem since 2007 up to 2012. The applied data analysis method is Shift Share Analysis. This method is applied to observe the economic structure and its shift by focus to sectoral development in region than the same one in the higher regional level or in national level. The results of research indicates that (a) agricultural sector is a sector with the bigger role in the Gross Regional Domestic Product (GRDP) of Langkat regency, (b) the national share value for agricultural sector and industry with a rapid growth than the other sectors, (c) the value of differential shift, agricultural sector, industry, electricity and gas, building, transportation and financial is a sector with higher competitive or sector with the rapid shift growth than other sector, and (d) the results of shift share analysis indicates that there is development of GRDP for 93.50 percent.

The Causes and Consequences of Increased Female Education and Labor Force Participation in Developing Countries

Two important recent trends in most developing countries are the rise in female labor force participation and the closing of gender gaps in school enrollment. This article begins by exploring the causes of the increases in female education, which include greater job availability and policy interventions that have promoted girls’ education. The article then explores the causes of increased female employment, which include a sectoral shift from “brawn-based” industries to services, as well as policies that have increased girls’ education. The article also discusses the effects of these increases in female education and labor supply, particularly for the well-being of women.

CAPITAL MISALLOCATION AND AGGREGATE FACTOR PRODUCTIVITY

We propose a sectoral–shift theory of aggregate factor productivity for a class of multisector economies with AK technologies and a constant production possibilities frontier. Loans are partly secured by collateral and partly based on reputation. We find that both the growth rate and total factor productivity (TFP) respond to random and persistent endogenous fluctuations in the sectoral distribution of physical capital, which, in turn, responds to reversible exogenous shifts in relative sector productivities. Endogenous debt limits on secured and unsecured loans slow down capital reallocation, preventing the equalization of risk-adjusted equity yields across sectors. Economywide factor productivity and the aggregate growth rate are both negatively correlated with the dispersion of sectoral rates of return, sectoral TFP, and sectoral growth rates. We also find highly volatile limit cycles in economies with small amounts of collateral.

A new theoretical analysis of deindustrialisation

The analysis of deindustrialisation has been led by heterodox economists, especially those in the structuralist and Kaldorian traditions, based on a conception of sectoral specificity and the role of manufacturing in growth. Sectors are not the units of Marxian economic analysis, but thinking through the meaning of sectors in Marxian terms allows for an analysis of the meaning and implications of a change in sectoral structure. Deindustrialisation is the sectoral shift that has been most prominent in recent decades and which is likely to have significant implications for the future of capitalism. This article develops an original Marxian theorisation of deindustrialisation. This conceptualisation includes a distinction between two forms of deindustrialisation. As well as taking into account changes in sectoral structure, the proposed typology considers whether such changes are associated with a shift between those activities that produce surplus value and those that do not or only a shift in the composition of surplus-value-producing activities. The distinction between different forms of deindustrialisation allows for an arguably richer analysis of this phenomenon than in more narrowly sector-based approaches.

SECTORAL SHIFT, WEALTH DISTRIBUTION, AND DEVELOPMENT

Two phenomena are widely observed when an economy departs from an underdeveloped state and starts rapid economic growth. One is the shift of production, employment, and consumption from the traditional sector to the modern sector, and the other is a large increase in educational levels of the population. The question is why some economies have succeeded in such structural change, but others do not. To examine the question, an overlapping generations (OLG) model that explicitly takes into account the sectoral shift and human capital accumulation as sources of development is constructed. It is shown that, for a successful structural change, an economy must start with a wealth distribution that gives rise to an adequate size of the “middle class.” Once the economy initiates the “take-off,” the sectoral shift and human capital growth continue until it reaches the steady state with high income and equal distribution. However, when the productivity of the traditional sector is low, irrespective of the initial distribution and the productivity of the modern sector, it fails in the sectoral shift and ends up in one of steady states with low income and high inequality. Thus, sufficient productivity of the traditional sector is a prerequisite for development.