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Most explanations of stock market booms and busts are based on contrasting the underlying ‘fundamental’ logic of the economy with the exogenous, non-economic factors that presumably distort it. Our paper offers a radically different model, examining the stock market not from the mechanical viewpoint of a distorted economy, but from the dialectical perspective of capitalized power. The model demonstrates that (1) the valuation of equities represents capitalized power; (2) capitalized power is dialectically intertwined with systemic fear; and (3) systemic fear and capitalized power are mediated through strategic sabotage. This triangular model, we posit, can offer a basis for examining the asymptotes, or limits, of capitalized power and the ways in which these asymptotes relate to the historical and ongoing transformation of the capitalist mode of power. [ABSTRACT FROM AUTHOR]

Behavioral economics has applied psychology concepts related to cognitive analysis, which gives little importance to environmental effects. In contrast, the analysis of behavior gives a central role to the environment, and therefore employs concepts such as reinforcement schedules and stimuli control. In this document presents the cognitive-behavioral discussion about choice behavior. In addition, we compare their methods through two experiments dealing with the base-rate fallacy. In the experiments, the characteristics of the stimuli (verbal and non-verbal) are varied and contrasted. The paper concludes that this fallacy occurs on a smaller scale when there are less irrelevant stimuli. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyze, with a new institutional economics framework, regulatory activity and its motivations. Better regulatory frameworks contribute to create an environment of legitimacy for the actions of the State. Nevertheless, this legitimacy can only be achieved by ensuring the efficiency and effectiveness of such frameworks in relation to the aim pursued such as correct market failures, reduce inequity failures, or generation of more competitive environments. [ABSTRACT FROM AUTHOR]

This paper uses Colombian data to compare the impact of inflation on the elderly and the general population. On average, the elderly spend a greater proportion on housing and health and less on education. Between December 2008 and May 2015, they experienced a higher inflation rate than the rest of the population. Lower income elderly households spend a higher share of their income on housing and food, and face higher inflation than wealthier elderly households. [ABSTRACT FROM AUTHOR]

Even though copyright is an institution which dates back to the 18th century, the economic analysis of copyright is relatively new; paradoxically it was not until 1934 with Plant's work when copyright economics started to emerge as a specialized field. This paper aims to draw an historical outline of copyright economics as a new area of economic analysis, focusing on its dilemmas and approaches, as well as on the main challenge for this institution in the digital era, unauthorized copy. [ABSTRACT FROM AUTHOR]

In this paper we note a complementary relationship between the Austrian school, based on the individual's role and markets, and institutional economics, which emphasizes the role of institutions in economic behavior. The idea of continuous improvement in corporate governance takes place in a system of complex and interrelated production in which the contributions of the various actors are necessary and difficult to quantify. Our working hypothesis is that institutions can to solve the distributional conflict and generate more productive organizations, while stimulating the entrepreneurial spirit. [ABSTRACT FROM AUTHOR]

This paper, examines the political costs that will have to be borne by farc; the Colombian military; Colombia's rightist politicians and elite and vested interests, internally-displaced people, the coca farmers, and Colombia's middle class. The analysis also touches on the roles and impacts of various other actors, such as bandas criminales and militant groups continuing to operate in Colombia, including the ELN. [ABSTRACT FROM AUTHOR]

Capital flows have increased significantly in recent years and are a key aspect of the global monetary system. They offer potential benefits to countries, but their size and volatility can also pose policy challenges. The Fund needs to be in a position to provide clear and consistent advice with respect to capital flow and policies related to them. In 2011, the International Monetary and Financial Committee called for “further work on a comprehensive, flexible, and balanced approach for the management of capital flows". This paper proposes an institutional view to underpin this approach, drawing on earlier Fund policy papers, analytical work, and Board discussions on capital flow. [ABSTRACT FROM AUTHOR]

This paper presents the first application to Colombia of culturomics, a novel research method in the social sciences that describes cultural, social and linguistics trends based on the quantitative analysis of millions of digitized texts. The paper uses all news and editorials published during the past two decades in three national periodicals in order to analyze the trajectories of several social and economic phenomena: corruption, economic optimism, the relative power of the judicial branch, etc. Beyond its specific findings, this paper showcases how culturomics can be used to describe the changing reality of a developing country. [ABSTRACT FROM AUTHOR]

This paper presents evidence that macroeconomic accounting models helped to anticipate the credit crisis and economic recession, whereas equilibrium models, ubiquitous in mainstream policy and research, did not. This study traces the intellectual pedigree of the accounting approach as an alternative to neo-classical economics, and the postwar rise and decline of flow-of-funds models in policy use. The paper includes contemporary case studies of both types of models, and considers why the accounting approach has remained outside mainstream economics. Finally, it provides constructive recommendations for revising financial stability evaluation methods, and advocates an 'accounting of economics'. [ABSTRACT FROM AUTHOR]

The economic theory of rational choice was accepted for decades as a general theory to explain human behaviour which other social sciences lack. This paper reviews some limitations of the former. Through cognitive psychology, the paper describes the cognitive biases of people when assessing data and making choices, which puts into question the idea that the human mind is programmed to follow the assumptions of rational choice. On the other hand, the increased risks in modern civilization (monetary, ecological, geopolitical) and their global character define our society as "the society of global risk". The author discusses the limits of our rationality in regard to making choices as a troubling issue for coping with increasing global risks. [ABSTRACT FROM AUTHOR]

This paper reviews the current evidence on the incidence of the corporate tax from Harberger-type general equilibrium models, with special attention to the open economy. The analysis identifies the major drivers of the results from open-economy models and compares estimates from four major studies that have examined corporate tax incidence in an open economy. Adjusting estimates from the studies to reflect central empirical estimates of key elasticities suggests that capital bears the majority of the corporate tax burden. The paper also presents an alternative method, based on the new view of property tax incidence, for allocating the corporate tax burden that distinguishes between the global effects of corporate taxes and excise effects that vary among nations. [ABSTRACT FROM AUTHOR]

The paper reviews and discusses the literature on the concept of incentive in management; the visions of ancient Greek philosophers, classical economists, scientific management, agency theory, contracts, property theory and transaction costs theory. The discussion shows that the transaction costs theory, with its central idea of forms of governance, constitutes a comprehensive view of incentives that explains what are the inexplicable paradoxes for other theoretical perspectives. The paper analyzes the relations between incentives and helps to build up a theoretical and useful formal model of incentives. [ABSTRACT FROM AUTHOR]

This paper offers a detailed presentation of the Skaperdas and Syropoulos model; one of the main models of the theory of conflict and state emergence. First, it describes the model's Nash equilibrium and the relevant effects of comparative analysis. And second, from a new interpretation of the equilibrium and comparisons with other similar models, the paper concludes that it constitutes the most general analytical framework in the subject, which can be understood as the foundations for a general theory of conflict and state emergence. [ABSTRACT FROM AUTHOR]

This paper suggests that the best way to evaluate and drive development policy is to understand the root causes that explain the political economy restrictions limiting the developmental effectiveness of multilateral and bilateral institutions. To mitigate the deleterious effects of collective action restrictions this paper recommends a twopronged interdependent strategy: an enhanced use of ex ante evaluation in all interventions and through a more intensive application of the paper trail approach; and changes of constitutional rules or macro-institutional conditions which determine the decisions made in all institutions. [ABSTRACT FROM AUTHOR]

Recently, some papers have been published that examine the relation between economic history and institutional economics, and propose a closer relation between these two disciplines. This article shows how the theoretical and methodological foundations of the different institutionalist programs are enriching research in economic history, giving it more rigor. Furthermore, using papers from Hodgson, North and Greif, this article reviews the contributions of traditional institutionalism, New Institutional Economics and Historical and Comparative Institutional Analysis. It ends by proposing a research program that emphasizes the historical studies of institutions and enriches economic analysis. Economic history should not be seen as a subaltern discipline; it should be treated at the same level as economics, as Schumpeter wanted it. [ABSTRACT FROM AUTHOR]

This empirical research analyzes the determinants of Colombian household revenues and expenditures. Using a life cycle model with data from the national household survey 1994-1995, the paper shows how the behavior of household income is mainly affected by demographic characteristics and by the social-occupational characteristics of its members. Expenditure behavior is determined principally by income and secondly by the social characteristics of the household and by the expenditure of other households with similar characteristics. The paper also analyzes the influence of income uncertainty on households expenditure, to see if the effect is due to a motive of precaution. [ABSTRACT FROM AUTHOR]

This paper studies the evolution of violence in South America. It analyzes and discusses the influence of different economic variables on homicide rates, using an econometric test based on data of some South American countries during the period 1995-2000. It shows that this economic approach can be usefull but can also be dangerous when it leads to the wrong policies of social exclusion. Furthermore, it also shows how variables such rapid urbanization, low education, and inefficient regulations, together with corruption, play an important role in the generation of violence in South America. Finally, the paper recommends changing the way of perceiving economics and its social implications, by examining the interaction of this discipline with other social sciences. [ABSTRACT FROM AUTHOR]

This paper shows one type of asymmetric information problems, their theoretical implications, the design of contracts that mitigate them, as well as some experimental evidence. Furthermore, by extrapolating the results, the paper tries to illustrate certain macroeconomic implications obtained under a controlled environment. [ABSTRACT FROM AUTHOR]

Entrepreneurship has become a prominent and strategically important issue when talking about the driving forces of prosperity and job creation. However, entrepreneurship seems to be poorly defined. The paper studies central assumptions by questioning what many contemporaries take for granted. The paper shows that it is necessary to define the term "entrepreneurship". Recent arguments should distinguish the difference, sometimes contradictory, between the phenomenon of dynamic fast growing firms and that of the emergence of new microenterprises of the self-employed that have neither the intention nor the possibility of growing. Economic policy debate should specify more precisely what is really meant when talking about entrepreneurship. [ABSTRACT FROM AUTHOR]

The Colombian Government has adopted a policy to improve communication skills in English at all education levels and especially in higher education, but little has been written about the achievements of the policy. This paper examines changes in the distribution of students' English proficiency level between the start and completion of their higher education programs. The results suggest an improvement in the distribution after graduating from higher education, characterized by a greater impact at higher scoring levels and an increased polarization. [ABSTRACT FROM AUTHOR]

For several years, without any justification and against all available evidence, it has been said that in Colombia 400,000 clandestine abortions are performed each year. This paper seeks to test the validity of this number. First, it provides an overview of what could have been the original source of this figure, and then it shows that this hasty calculation is inconsistent with a rigorous study of induced abortion made in 1992. Also, it analyses different sources of information that contradict those assessments; exposes the difficulties inherent in estimating the magnitude of illegal activities; and criticizes one methodology. Finally, it estimates the range of the number of annual abortions based on the Demographic and Health Surveys. [ABSTRACT FROM AUTHOR]

This paper uses a new measure of financial development to show that many benefits in terms of growth and stability can still be reaped from further financial development in most emerging markets. First, it defines financial development as a combination of depth, access and efficiency. Second, it highlights that the economic growth weakens at higher levels of financial development. Third, it indicates that the pace of financial development matters. Forth, it provides a new angle related to the tradeoffs of financial regulation. Finally, it finds that there is no "one-size-fits-all" in the sequencing of developing financial institutions versus markets, though as economies evolve the relative benefits from institutions decline and those from markets increase. [ABSTRACT FROM AUTHOR]

Economic and demographic growth in Colombia has been dominated by the largest cities. This has resulted in the common belief that Colombia is mainly an urban country. The aim of this paper is to show how economic and demographic growth has evolved, especially in terms of population density, since the mid-eighties. Using Markov transition chains and their spatial counterpart, we show that since the mid-eighties, municipalities have experienced a highly persistent pattern in which the main cities have maintained their position as the most densely populated. In contrast, municipalities that exhibited low levels of population density have remained relatively stagnant. [ABSTRACT FROM AUTHOR]

This paper is a review of the notions of value in economics and anthropology. In this review, the greater difficulty has been, indeed, the historical separation between disciplines that frequently have developed their theoretical conceptualizations about economic fact separately, while the cooperation attempts have had to overcome important methodological and formal differences. However, the analysis of the main anthropological and economic contributions has shown the necessity to re-examine the foundations about value and to reflect on the use of this concept. [ABSTRACT FROM AUTHOR]

What do economists mean when they talk about 'capital accumulation'? Surprisingly, the answer is anything but clear. The conventional view is that there are two types of capital, real and financial; that these two capitals should correspond to one another; and that, unfortunately, most of the time they don't: in general, goes the argument, the growth of financial capital tends to mismatch and distort the accumulation of real capital. The paper shows this 'mismatch thesis' - and therefore the ability of economists to explain accumulation - to be built on foundations of sand. Economists, it argues, cannot measure real capital in the first place, and the proxies they devise for that purpose entangle them in logical circularities and empirical impossibilities. [ABSTRACT FROM AUTHOR]

The analysis of innovative processes such as securitization leads to asking if the behavior of economic agents is a response to the institutional changes with specific objectives, or if the changes in the regulatory regime are the result of market behaviour or needs of the economy. The objective of this paper is to apply the theory of institutional change of North (agent, source, process and way of change) to examine the Colombian market in the period 1993-2013 in order to explore the main events which had an influence on the performance of securitization in general, and mortgage securitization in particular. [ABSTRACT FROM AUTHOR]

Cooperation among firms can be analyzed from different theoretical perspectives. The objective of this paper is to analyze firm networks from the perspective of team theory and club theory. Even though these theories are not recent in economics, using them as a theoretical framework for the characterization of firm networks could be a novel contribution. We can infer that aspects of both theories could be combined to explain cases of cooperation. [ABSTRACT FROM AUTHOR]

This paper is an approach to the study of the working poor in Colombia. The purpose is to analyze poverty linked to types of labor insertion, Using data from the Continuous Household Survey and the Large Integrated Household Survey, it analyses main poverty indicators for the workers, and poverty decomposition by geographical area between 2002 and 2012. In addition, it offers a socio-demographic and occupational characterization of the working poor, concluding that the composition of the labor market and the type of labor insertion are determinants of low income. [ABSTRACT FROM AUTHOR]

The 1949 World Bank mission headed by Lauchlin Currie recommended an integral attack on the interlocking vicious circles of underdevelopment through a widening of domestic and international markets and a reform of macroeconomic policy formulation. In 1950 Currie was invited by the Colombian Government to return as adviser to a new national planning board. In 1952 Albert Hirschman was also hired as an adviser to this board. This paper discusses the heated disagreements between these two distinguished economists, their influence on the theory and practice of economic development in Colombia and of the World Bank, and in particular their focus on planning based on an integral program versus individual project approaches to planning. [ABSTRACT FROM AUTHOR]

This paper proposes a new theoretical model to unerstand how defence and corruption networks associated to drug trafficking operate. Based on game theory and social network theory strategic interactions between drug dealers and their agents are analyzed. The model shows that network density is a main determinant of the survival probability of drug dealers and of wages paid to their security agents; and that the efficacy of law enforcement policies depends on network density. [ABSTRACT FROM AUTHOR]

The paper presents a newly compiled and improved database of national household surveys between 1988 and 2008. In 2008, the global Gini index is at 70.5 percent having declined by approximately 2 Gini points over this twenty year period. When it is adjusted for the likely under-reporting of higher? incomes in surveys by using the gap between national accounts consumption and survey means in combination with a Pareto-type imputation of the upper tail, the estimate is a much higher global Gini of almost 76 percent. With such an adjustment the downward trend in the Gini almost disappears. Tracking the evolution of individual country- deciles shows the underlying elements that drive the changes in the global distribution: China left the bottom ranks, modifying the overall shape of the global income distribution in the process and creating an important global "median" class that transformed a twin-peaked 1988 global distribution into a single-peaked one. The "winners" were country-deciles which in 1988 stood at the median of the global income distribution, 90 percent of which are from Asia in terms of population. The "losers" were the country-deciles in 1988 were around the 85th percentile of the global income distribution, almost 90 percent of which are from mature economies in terms of population. [ABSTRACT FROM AUTHOR]

This paper analyzes the political nature of taxation, which helps to explain why adoption from the model sponsored by the IMF in Latin America, especially after the debt crisis, has not been homogeneous. Colombia is taken as a case study to show how tax reforms depend on the political process in Congress, which opens a gap between the bills, inspired by IMF, and the final laws. Finally, it raises some arguments that suggest the special interests' role in the design and application of tax policy, which interact without being necessarily reconcilable and can also explain the divergence between bills and laws. [ABSTRACT FROM AUTHOR]

This paper analyzes the characteristics of job flows in the Colombian manufacturing sector between 1994 and 2009, at the industry group level and for the occupational categories. The results suggest high levels of job creation and job destruction in manufacturing firms, which are not usually evident in the figures of net employment growth. Similarly, we find that job creation and job destruction are persistent. Finally, the results at a disaggregated level indicate significant differences by industry group and occupational category. [ABSTRACT FROM AUTHOR]

Hirschman was a great social scientist who was committed to justice and democracy. This paper, a small homage in his memory, analyizes his most important book, The Strategy of Economic Development, and his reflections about late industrialization, inflation, balance of payment deficits, the linkage hypothesis, and relations between development theory and economic theory. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between macroeconomic uncertainty, fiscal governance and economic growth in Venezuela from 1968 to 2010. There is feedback between fiscal volatility and uncertainty, but the latter may be the result of weak governance, particularly volatile fiscal policy. Fiscal volatility affects fiscal outcomes, especially when fiscal policy is discretionary. A VAR model is used to examine these results. [ABSTRACT FROM AUTHOR]

Thorstein Veblen (1857-1929) is one of the founders of American institutional economics. This paper aims to make a presentation of his theory of consumption and his theory of business cycles and crises, through an analytical reading of his works: The Theory of the Leisure Class and The Theory of Business Enterprise. In order to complete this analysis, we also make a general presentation of the author's thought and a brief systematization of his critique of orthodox economic thought. [ABSTRACT FROM AUTHOR]

We explore the traits that characterize the codes of conduct with the aim to understand the parameters of responsibility and ethical performance that Colombian oil companies define for themselves and for their stakeholders. The paper is exploratory and descriptive and uses the method of multiple case study. The codes are grouped in three blocks according to their structure. We show the philosophical roots of codes. codes of global companies are extensive and legal. Local companies with international ambition have less extensive codes, but maintain their legal nature. Codes of small local enterprises are short and mission-focused by this tone. Virtually all codes have their roots in utilitarian ethics. [ABSTRACT FROM AUTHOR]

This paper explores why the type of complex financial regulation developed over recent decades may be a suboptimal response to the increasing complexity of the financial system. Examples from other disciplines illustrate how decision-making in a complex environment can benefit from simple rules of thumb or 'heuristics'. We perform a set of empirical experiments to assess the relative performance of simple versus complex rules in a financial setting. We find that simple metrics, such as the leverage ratio and market-based measures of capital, outperform more complex risk-weighted measures and multiple-indicator models in their capacity to predict bank failure. A consistent message from these experiments is that complexity of models or portfolios can generate robustness problems. We outline five policy lessons from these findings, covering both the design of financial regulation itself and possible measures aimed at reducing complexity of the financial system more directly. [ABSTRACT FROM AUTHOR]

We explore the traits that characterize the codes of conduct with the aim to understand the parameters of responsibility and ethical performance that Colombian oil companies define for themselves and for their stakeholders. The paper is exploratory and descriptive and uses the method of multiple case study. The codes are grouped in three blocks according to their structure. We show the philosophical roots of codes. Codes of global companies are extensive and legal. Local companies with international ambitions have less extensive codes, but maintain their legal nature. Codes of small local enterprises are short and mission-focused by this tone. Virtually all codes have their roots in utilitarian ethics. [ABSTRACT FROM AUTHOR]

This paper explores why the type of complex financial regulation developed over recent decades may be a suboptimal response to the increasing complexity of the financial system. Examples from other disciplines illustrate how decision-making in a complex environment can benefit from simple rules of thumb or 'heuristics'. We perform a set of empirical experiments to assess the relative performance of simple versus complex rules in a financial setting. We find that simple metrics, such as the leverage ratio and market-based measures of capital, outperform more complex risk-weighted measures and multiple-indicator models in their capacity to predict bank failure. A consistent message from these experiments is that complexity of models or portfolios can generate robustness problems. We outline five policy lessons from these findings, covering both the design of financial regulation itself and possible measures aimed at reducing complexity of the financial system more directly. [ABSTRACT FROM AUTHOR]

Neuroeconomics gives a material foundation to economics. The basic framework of this paper is one that takes into account cognitive psychology, economics, biology and neuroscience in general. Specifically, it is a review of findings which aim to make explicit the idea that it is the body and brain that determine individual economic behaviour. In other words, decisions are a function of revealed biology. The basic hypothesis is that a rational organism must be consistent with its revealed biology. [ABSTRACT FROM AUTHOR]

This paper aims to study the differences in the degree of professionalization of teachers in Colombian educational institutions. We break down the inequalities in the supply of teachers according to their degree of professionalization using the Theil index. Next, we estimate the determinants of professionalization, taking into account characteristics of the school and the municipalities where the institutions operate. We evaluate two hypotheses: first, whether more public spending on education personnel by local authorities has helped to improve the level of teacher training in government institutions; and we assess the impact of the teacher professionalization law of 2002 on the degree of teacher professionalization. [ABSTRACT FROM AUTHOR]

All economists should be conversant with "what happened?" during the financial crisis of 2007-2009. We select and summarize 16 documents, including academic papers and reports from regulatory and international agencies. This reading list covers the key facts and mechanisms in the build-up of risk, the panics in short-term-debt markets, the policy reactions, and the real effects of the financial crisis. [ABSTRACT FROM AUTHOR]

This paper contrasts the concept of a complex, adaptive agent with the idea of a programmed agent, and develops a new vision of agent learning and structure. The concept of the agent is analyzed through a consideration of internal models, practice, the concept of routine and its influence on the agent's behavior, and the importance of ex ante and ex post learning. Finally, it demonstrates how problem solving is subject to the restrictions of the agent, and describes the different ways to explore solutions space with three types of scanning: exhaustive, random and selective. [ABSTRACT FROM AUTHOR]

In this paper, we build an index to measure the extent to which displaced households can effectively realize their economic and social rights. Based on the results of the index, we conclude that during the reparations and resettlement process, a displaced household, on average, is able to exercise 60% of the rights associated with economic and social stability. This result is four points below the average level at which poor nearby households are able to exercise their rights. Using panel data on a group of households, our technical work illustrates that between 2007 and 2008, the ability of displaced households to exercise their rights deteriorated to the point where, in effect, 45% of the households saw a regression in their ability to exercise at least one right during this period. We also identified other factors threatening the sustainability of the socio-economic stabilization policy, and some recommendations are made. [ABSTRACT FROM AUTHOR]

This paper presents the results of research on socioeconomic inequality in Bogota's secondary education (year 2009). The results show that socioeconomic student level is significantly associated both to educational access (public or private), and to educational quality (ranking in State test - ICFES). This demonstrates that in Bogotá not only does each social class study separately, but also that rich people have access to a better education than poor people. This situation of social segregation (apartheid) aggravates some of the already pervasive Colombian problems: lack social mobility, economic inequality and illegitimacy of the political system. [ABSTRACT FROM AUTHOR]

In contracts for construction of public services infrastructure, the private sector has strong incentives to reduce costs over the life of the project, which affects the quality of service. This paper extends the Hart's model to evaluate the benefits of public-private partnership, examining different types of ownership and introducing a simple mechanism for renegotiation. The exercise shows that government involvement is not justified by its ability to make innovations in quality, but because it internalizes the costs and benefits of investment in cost reduction by the private sector. [ABSTRACT FROM AUTHOR]

This paper analyses how the announcement of changes in corporate control (tender offer) of Endesa, Hidrocantábrico and Scottish Power have affected their stock prices and the impact that these events have on the stock market returns of competitors of the target firm. Using an "event study" methodology we find that takeovers positively and significantly affect, at the 1% level, the stock market return of the target firm. Results are robust across several econometric specifications such as GARCH and MCO models. Also, the results suggest the announcement of a tender offer positively and significantly affects the stock market return of the target firm's competitors. [ABSTRACT FROM AUTHOR]

This paper present two basic ideas. The first one is that the model of rationality applied to fertility and the interaction between quantity and quality were not originally proposed by Becker, as many of those interested in the subject tend to believe; and even that if this relation could seem clear, it is not obvious. The second one is that from the beginning the analysis of fertility has considered the institutional context. Criticism of Becker's model and more recent work strengthen the importance of institutional analysis for the study of the rationality of families in decisions on the number of children. [ABSTRACT FROM AUTHOR]