What was it like to live in America during the colonial period

The Levy Economics Institute of Bard College is a non-profit, nonpartisan, public policy think tank
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The Theory of Economics in Colonial America | I Love Claims

This paper examines the growth experience of the Central Asian economies after the breakup of the Soviet Union. In particular, it evaluates the impact of being landlocked and resource rich. The main conclusions are: (1) Over the period 1994–2006, the landlocked resource-scarce developing countries of Central Asia grew at a slower pace than other landlocked resource-scarce developing countries; on the other hand, resource-rich developing countries in Central Asia grew at the same pace as other resource-rich developing economies. (2) Having “good” neighbors pays off in the form of growth spillovers; this calls for greater regional cooperation and enhanced regional integration through regional transport infrastructure, improved trade facilitation, and enhanced and coordinated economic policies. And (3) countries with a higher share of manufacturing exports in GDP grow faster, and the more sophisticated a country’s export basket, the higher its future growth; Central Asian countries should, therefore, take a more aggressive stance in supporting export diversification and upgrading.

The third section deals very briefly with the implications of the model for the analysis of macroeconomic policy.
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The most important economic rationale for mercantilism in ..

Some time ago, Goodwin (1967) offered an elegant and influential model to represent part of Marx's thinking on business cycles. In that model he was able to show how the interaction of the reserve army of labor and the process of capital accumulation could produce self-sustaining oscillatory behavior. Increases in the real wage cause decreases in the rate of growth of the capital stock, since all wages are consumed and all profits invested. The declining rate of accumulation in turn causes a decline in the employment rate, which eventually causes the wage rate to decline. The eventual expansion in the growth rate of the capital stock begins the process over again. This behavior was described by fitting a model of one good economy into the Lotka-Volterra equations, the solution to which is well known. While it has proved extremely fruitful, this model also has some well-known limitations. It is, first of all, a center, so that no limit cycle produced by the model is stable. Second, it takes a rather asocial approach to the creation of the labor force, assuming that it is governed exclusively by an exogenously given rate of population growth. Also, the model assumes that all technical change occurs at a constant, autonomously given rate, and allows for no induced components.

Rugged nature of the colonists was one that did not take well to be told what to do by a King (or anyone for that matter.).
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I was motivated to address this subject by the rich irony of last year's Nobel Prize in Economics. The end of the LBO era was crowned by the recognition of work which purported to demonstrate that the value of an enterprise is independent of the volume of its debt. In response, this paper is an attempt to inform the post-Keynesian critique of Modigliani-Miller with the experience of one whose profession it is to invest equity capital in Imperfect markets under conditions of uncertainty. The "regulation and intervention" with which I am professionally concerned is that of a proprietary venture investor, prepared to forego liquidity and to accept strategic responsibility for the performance of the enterprises we control.

Free Online Library: Constitutional theory and the constitutional history of colonial America
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British America in the Colonial Period

This paper is an extension of an earlier working paper ("Finance and the Macroeconomic Process in a Classical Growth and Cycles Model," Working Paper No. 253). The basic structure of the model remains unchanged in that it is based on a social accounting matrix (SAM) with endogenous money. Investment in circulating capital adds to output and investment in fixed capital adds to potential output. Driving the model's which describes the disequilibrium adjustment between aggregate demand and supply, is the relationship in which the excess of monetary injections over desired money holdings fuels spending in the markets for goods and services. This excess also spills over into the bond market and lowers the interest rate. The model's entails adjustments in fixed investment so that actual and normal (desired) capacity utilization fluctuate around each other. Over the long run investment is internally financed and regulated by the rate of profit. The current paper has three innovations. First, inventory investment is treated explicitly. Second, the SAM itself has been split into a current and capital account, thereby making it easier to derive the balance sheet counterpart of the flow matrix. Third, the paper discusses the stability properties of the 4 x 4 nonlinear differential equation system that describes the fast adjustment process. The key to stability is the negative feedback effect of business debt on investment. In the 4 x 4 case, a condition for stability is that the reaction coefficient h2 on the debt term in the circulating investment equation be positive; condition is that h23h2* where h2* is some critical value. In crossing this critical value, the system undergoes a Hopf bifurcation. Finally, if the model is reduced to a 3 x 3 system by considering a budget deficit that is wholly bond financed, then conditions for stability can be derived using the "modified" Routh-Hurwitz conditions. These stability conditions, in this case, imply that h2 > 0.

Reflexivity (social theory) - Wikipedia

This paper addresses two broad questions. The first one relates to the for the existence of the welfare state. To address this question, we review the marginalist arguments and then counterpose a historical and institutional analysis of the rise of the US welfare state. The second question concerns the of welfare spending. We examine the standard neoclassical macroeconomic arguments for and against welfare cutbacks and then propose an alternative growth framework, rooted in the classical and Harrodian traditions, to evaluate social policy. We argue that the alternative framework provides both demand-side and supply-side mechanisms whereby social spending can be supported without harmful long-run macroeconomic effects. Our analysis suggests that, in general, because growth and crises are endogenous, there may be no tension between social policy and economic performance. Specifically, the recent cutbacks in the US are hard to justify on purely economic grounds.