THE EFFECTS OF IMMIGRATION IN A DISTORTED TWO-SECTOR ECONOMY

This paper examines the income, employment and distributional impact of immigration on a recipient economy facing an administered wage distortion. It is found that immigration increases the unemployment rate of the native population and shifts income distribution against labor and in favor of the nonlabor input. Its effect on the total income of the non-immigrants is, however, ambiguous, and depends on the relative importance of the increase in unemployment versus the net increase in the rent received by the owners of the non-labor input.     

THE ETHICS OF ECONOMIC INTERACTIONS IN THE NETWORK ECONOMY

The rise of the network economy brought about the strong conviction that economic interactions in the network economy could be based on cooperative, informed and transparent communication, which would counteract the negative welfare effects of unequal bargaining power, the opacity of the intentions of the parties, opportunistic behaviors, monopolies and market failures. So the contracts of the network economy nowadays do not at all remind us of agreements based on the cooperation of free, equal individuals who follow their values and self-interest, during which they take into consideration the increase of each other's well-being as well as the mutual sharing of benefits and risks. The network economy reached the limits set by the segmentation of network architecture, the restrictive regimes of copyrights, the digital privatizations of the public domains, the right holder's control over digitalized contents, the regulatory furors of the different states and international organizations, the 'private legislation' of the corporations, and so forth. The commoditization of knowledge, information and communication and the monopolies have had negative welfare effects. Of course, this in itself does not overthrow the validity of the philosophical, moral-philosophical and economic arguments brought up to support the contractual coordination of economic interactions. On the contrary: On the basis of the current setback of the development of the network economy, we could, rather, conclude that the business model, which is trying to expropriate the positive externalities of the network effect with legal and technical means, leads to a general decrease of social profit. So, not only does this model of the new economy violate rights and is also contrary to moral principles but it cannot, either, be maintained in the long run from the point of view of the market.     

A STUDY OF INTER-ETHNIC RELATIONSHIPS: THE GROWING ETHNIC COMPLEXITY IN THE JAPANESE CITY

Abstract  In examining the growing inter-ethnic complexity as an issue of social change in major Japanese cities since the mid-1980s, it is essential that in addition to learning from the experience of Western society.

• 1) 

  this discussion be carried out in the context of research on Korean residents in Japan, and
• 2) 

  the analysis include an examination of the inter-ethnic relationships.

These two essential points have largely been ignored in previous research on the internationalization of the Japanese city. This paper is based on field research from the Ikaino district of Osaka city, which is the largest non-Japanese "ethnic" community in Japan. The research reveals hitherto neglected aspects of contemporary urban internationalization by examining the Korean community from the point of view of the relationship between the Korean and Japanese communities. We find that:

• 1) 

  A Japanese community exists within Ikaino (widely known as "Korea town").
• 2) 

  The Korean and Japanese communities live side by side but emphasize their separate identities.
• 3) 

  The only condition which offers hope for cooperation between the two groups is a common feeling of loss and deprivation.

Arguments for and against the employment of unskilled foreign laborers continue to be heard. It is the task of the sociologist to provide an objective, unbiased analysis and to accumulate relevant data, rather than to attempt a quick resolution by supporting one side or the other.     

THE PECULIAR EXTERNALITIES OF PROFESSIONAL TEAM SPORTS

The economics literature has long been divided regarding whether competing sports teams can achieve the same, efficient allocation of playing skills that a revenue-maximizing league monopolist would choose despite the external effects the teams impose on each other in their pursuit of athletic talent. In this article an explicit consideration of the arbitrage incentives that underlie the marketing and pricing of playing skills indicates that decentralized franchises generally fail to allocate talent efficiently. For fans concerned about the championship prospects of their preferred team, the popular complaint has merit: "Big-city teams win too much."(JEL L83 )     

EXTERNALITIES, PROPERTY RIGHTS AND THE ALLOCATION OF RESOURCES IN MAJOR LEAGUE BASEBALL

Most economists who have analyzed professional baseball have concluded that two distinctive features of its labor market—the reserve clause and player draft—influence the distribution of wealth between players and owners but do not affect the allocation of playing talent among teams. Such conclusions, which are strongly at variance with laymen's views of such matters, are derived from theoretical considerations rather than empirical examinations. Our paper examines data from the two decades of major league history and concludes that, on the basis of that data, the empirical generalizations of previous economists do not appear to be justified.     

THE SOCIAL CONTROL OF EMOTIONS IN THE DEVELOPMENT OF THERAPY RELATIONS

A study of therapy relations demonstrates how emotions are shaped by the more powerful member, the therapist. Emotional expressions are encouraged and regulated by the therapist in such a way that they support the nascent commitment structure. The targets of emotional expression shift as the therapeutic relationship takes shape until, in the final stage, they construct a shared sentiment regarding the relationship itself. This analysis identifies emotions as more than an indicator of power in a relationship, but as a tool in the development of power and commitment.     

THE POLITICAL ECONOMY OF BITCOIN

The recent proliferation of bitcoin has been a boon for users but might pose problems for governments. Indeed, some governments have already taken steps to ban or discourage the use of bitcoin. In a model with endogenous matching and random consumption preferences, we find multiple monetary equilibria including one in which bitcoin coexists with official currency. We then identify the conditions under which government transactions policy might deter the use of bitcoin. We show that such a policy becomes more difficult if some users strictly prefer bitcoin because they can avoid other users holding the official currency in the matching process. (JEL C78, E41, E42, E50)     

ENVIRONMENTAL PROTECTION IN THE FEDERALIST SYSTEM: THE POLITICAL ECONOMY OF NPDES INSPECTIONS

This paper examines the consequences of the delegation of regulatory authority to local officials. The study evaluates three hypotheses of the role delegation plays in the implementation of regulatory policy: (1) the federal case, which predicts that delegation has no effect, (2) the state/local model predicts that delegation is, in fact, abdication, and (3) the full impact model predicts that both interests determine how environmental policy is implemented. The results provide evidence that while delegation does not completely remove national policy maker's ability to alter regulatory policy, it does allow local interests to alter national standards. (JEL L51, Q28)     

WELFARE IMPLICATIONS OF 'SOCIAL INCOME' IN A CHANGING ECONOMY

Samuelson (1961) concluded that in a dynamic setting any scalar concept of current economic activity is inherently myopic with respect to the relevant welfare-space. This conclusion, which virtually undermines any welfare foundations for the concept of income, is shown to be based on an incomplete and inconsistent concept of capital formation. When this is amended, the alleged welfare contradiction in the concept of income vanishes .     

THE WELFARE COST OF THE UNDERGROUND ECONOMY

This paper estimates the welfare cost of taxes that create an incentive for resources to flow to the underground, or untaxed, sector in the United States. Using a general equilibrium model of the American economy, the welfare cost is found to be large and growing in absolute and relative terms over time. In 1980 the welfare cost may be as much as $220 billion, or over 9 percent of output; even conservative estimates place the loss at nearly $100 billion. It also is found that small reductions in tax rates substantially reduce the welfare cost.     

THE POLITICAL ECONOMY OF TIME IN THE INTERNET ERA: FEMINIST PERSPECTIVES AND CHALLENGES

This paper examines the gender matrix of time, arguing for cross-disciplinary consideration of political economy, globalization and technology to achieve a detailed understanding of gendered hierarchies of time and the ways in which public/private identifications of social space and time have variously constructed and maintained them. It is argued that women are alienated from their own time, which is identified as most legitimately allocated to the service of others both in the home and at work. The inter-relationship of technologies and gendered identities is explored in relation to public/private divisions and the political-economic and scientific-technological knowledge processes that contribute to upholding them. ICTs reflect these historically established gendered patterns, but international projects such as 'Women on the Net' also demonstrate the capacities of these technologies for disrupting the gender matrix of time through their use by women for women.     

A MACROECONOMIC ANALYSIS OF ENERGY SUBSIDIES IN A SMALL OPEN ECONOMY

We construct a dynamic model of a small open economy to analyze the effects of large energy subsidies. The model includes domestic energy production and consumption, trade in energy at world market prices, as well as private and public sector production. The model is calibrated to Egypt and used to study reforms such as reductions in energy subsidies with corresponding reductions in various tax instruments or increases in infrastructure investment. We calculate the new steady states, transition paths to the new steady state, and the size of the associated welfare losses or gains. Our main results for a 15% cut in energy subsidies are: (1) Steady state gross domestic product drops in most of our experiments as less energy is used in production. (2) Steady state consumption rises in most of our experiments. (3) Welfare can rise by as much as 0.6% in consumption equivalent terms. (4) The largest gains in terms of output and of welfare can be obtained when savings from energy subsidy cuts are used to fund additional infrastructure investment. (JEL E21, E63, H55, J26, J45)     

THE STATE OF THE FEDERAL BUDGET AND THE STATE OF THE ECONOMY

This paper tests systematic responses of the Federal budget to forecasts of inflation and unemployment. Estimated coefficients from fiscal policy reaction functions are examined to determine whether there are such systematic responses. Additionally, the coefficients of these estimated fiscal policy reaction functions are used to test several hypotheses concerning fiscal policy which have been advanced in the political business cycle and public choice literatures.     

FORWARD GUIDANCE AND THE STATE OF THE ECONOMY

This paper analyzes forward guidance in a nonlinear model with a zero lower bound (ZLB) on the nominal interest rate. Forward guidance is modeled with news shocks to the monetary policy rule, which capture innovations in expectations from central bank communication about future policy rates. Whereas most studies use quasi‐linear models that disregard the expectational effects of hitting the ZLB, we show how the effectiveness of forward guidance nonlinearly depends on the state of the economy, the speed of the recovery, the degree of uncertainty, the policy shock size, and the forward guidance horizon when households account for the ZLB. (JEL E43, E58, E61)     

POLITICAL ECONOMY AND THE SOCIAL MARGINAL COST OF PUBLIC FUNDS: THE CASE OF THE MELTZER‐RICHARD ECONOMY

In previous studies on the social marginal cost of public funds (SMCF), the existing tax system has been assumed to be either arbitrary or optimal. This note explores another possibility: the existing tax system itself represents a political equilibrium. Our exploration proceeds in Meltzer and Richard’s (1981) political economy of redistributive taxation. An interesting feature of our finding is that the degree of income inequality as measured by the ratio of mean to median income can play an important role in estimating the SMCF and judging whether the level of redistribution is excessive or inadequate. (JEL D61, D72, H21)