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This essay tests Milton Friedman’s conjecture that capitalism is a necessary condition for political freedom. For the decade around 2000 indices of the degree of capitalism and the degree of political freedom are highly correlated and provide plausibility for Friedman’s conjecture. In...
Persistent link: https://www.econbiz.de/10014197318
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In his 2014 book, Thomas Piketty argues that wealth inequality is sharply increasing in r-g and refers to rg as ‘the central contradiction of capitalist economics', where r is asset returns and g is real income growth. To assess whether inequality is increasing in the (r-g)-gap this paper: 1)...
Persistent link: https://www.econbiz.de/10012944904
unofficial economy. And countries with a larger unofficial economy tend to grow more slowly. Johnson, Kaufmann, and Shleifer … (1997) found that, in post-communist economies, the unofficial economy's share of GDP is determined by the extent of control … unofficial economy accounts for a larger share of GDP where there is great bureaucratic inefficiency and discretion, and where …
Persistent link: https://www.econbiz.de/10014042648
This Article is written as two discrete, independently accessible topical sections. The first topical section, presented in Part I of this Article, is a case study of Bank of America's acquisition of Merrill Lynch and the impact of a flawed merger execution on the board's subsequent decisions....
Persistent link: https://www.econbiz.de/10013039377
This paper proposes that the global financial and economic crisis has a single cause underlying all other causes. The single cause is attributed to the economic paradigm which drives individual behaviour, business, government and education. We define the economic paradigm and explain its power...
Persistent link: https://www.econbiz.de/10013109184
a lack of a hard budget constraint, exports this feature to the economy organizations it oversees. The channel through …This paper develops the theory of entangled political economy by outlining a process by which the political … which it does so is the repeated interactions of economy and polity organizations' agents during times of crisis. The …
Persistent link: https://www.econbiz.de/10013035230
Defining rules politically poses the general question of which aspects of social ordering are tractable to public institutional resolution. But not all institutions emerge from the same processes of spontaneous ordering; self-interest subject to market discipline looks very different than...
Persistent link: https://www.econbiz.de/10014093254
We establish the relationship between property rights and income inequality within 22 former European colonies. The key, unexpected result is: stronger property rights are associated with higher income inequality levels. We provide plausible explanations for these findings
Persistent link: https://www.econbiz.de/10012718026
development (GDP per capita) seems to be the most important. Foreign aid and trade openness show less clear results. Noneconomic …
Persistent link: https://www.econbiz.de/10012723025