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Estimating the contribution of enslaved workers to output and growth in the United States during the first half of the nineteenth century is a crucial building block to better understand the contours of nineteenth‐century US economic history, and more generally, the connection between slavery and capitalism. Existing estimates only present a partial picture and are potentially problematic. In this paper, we use data on enslaved person valuations to calculate the contribution made by enslaved workers to regional and national gross national product (GNP) in 1839 and 1859 and to the growth in per capita output in the 20 years before the Civil War. We find that in the United States, enslaved workers were responsible for somewhere between 12.49 per cent and 18.0 per cent of the increase in output per capita between 1839 and 1859. [ABSTRACT FROM AUTHOR]

Recent research has shown that the “spirit of capitalism”—a preference for wealth itself, in addition to consumption—has important implications for growth and asset pricing. This paper explores how the spirit of capitalism affects saving and consumption behavior. We demonstrate that the spirit of capitalism may reduce the importance of precautionary savings. It can also explain the excess sensitivity puzzle: the spirit of capitalism causes dramatic deviations from a random walk. It may also offer a partial explanation of the excess smoothness puzzle. [ABSTRACT FROM AUTHOR]

This paper presents redistributive taxation and economic growth as a noncooperative differential game in which the politically powerful poor (workers) control redistribution whereas the economically powerful rich (capitalists) control accumulation. Both groups are assumed to be interested in maximizing the sum of their own discounted consumption over an infinite horizon. The players use trigger strategies which permit the construction of threats designed to sustain cooperation as an equilibrium, The properties of the trigger strategies and the dependence of sustainable cooperative policies on the technology preferences and development history of the economy are discussed. [ABSTRACT FROM AUTHOR]

The paper presents a simple model of growth and accumulation in a pure capitalist economy. The model integrates Keynesian ideas on effective demand with a Marxian emphasis on class struggle and the reserve army of labour. For reasonable parameter values the model has a unique (non-trivial) balanced growth equilibrium, the equilibrium is unstable and using the PoincareBendixson theorem it is shown that the economy will exhibit perpetual fluctuations around the balanced growth path. [ABSTRACT FROM AUTHOR]

We build an overlapping generations model to analyse the evolution of inequality as an economy develops. Our model economy resembles a 'very capitalist society'. Initially, wealth is exclusively concentrated in a rich dynasty. We ask whether or not this type of capitalist economy contains a fundamental contradiction, as claimed by Piketty in his recent book. We derive a condition under which the economy is driven to a state of perpetual inequality. However, we also show that an economy where capital deepening triggers the development process is very unlikely to be absorbed in that state. [ABSTRACT FROM AUTHOR]

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The article presents the author's comments in response to a recent paper entitled "Corporate Governance, Stakeholding, and the Company: Towards a Less Degenerate Capitalism?," by Paddy Ireland. According to the author, Ireland presents a Marxist criticism of the concept of stakeholding. The author says that Marxism leads to economic developments within the capitalist mode of production that will lead to socialism.

What is the relationship between the economy's long‐run growth rate, its capital‐income ratio, and its factor income distribution? A satisfactory answer requires an endogenous growth and savings rate. We scrutinize Piketty's (2014) theory in a richly parameterized variant of Romer's (1990) seminal model with and without population growth. The economy's growth and savings rate are exogenous in Piketty's theory and endogenous in Romer's. In contrast to Piketty's Second Fundamental Law of Capitalism a smaller growth rate may be associated with a smaller capital‐income ratio. Moreover, it may go together with a greater or a smaller capital share. [ABSTRACT FROM AUTHOR]

British and American debates on the relationship between slavery and economic growth have had little interaction with each other. This article attempts intellectual arbitrage by joining these two literatures. The linkage turns on the neglected part two of the 'Williams thesis': that slavery and the slave trade, once vital for the expansion of British industry and commerce, were no longer needed by the nineteenth century. In contrast to recent assertions of the centrality of slavery for US economic development, the article argues that part two of the Williams thesis applies with equal force to nineteenth‐century America. Unlike sugar, cotton required no large investments of fixed capital and could be cultivated efficiently at any scale, in locations that would have been settled by free farmers in the absence of slavery. Cheap cotton was undoubtedly important for the growth of textiles, but cheap cotton did not require slavery. The best evidence for this claim is that after two decades of war, abolition, and Reconstruction, cotton prices returned to their prewar levels. In both countries, the rise of anti‐slavery sentiment was not driven by the prospect of direct economic benefits, but major economic interest groups acquiesced in abolition because they no longer saw slavery as indispensable. [ABSTRACT FROM AUTHOR]

Alternative paths to ownership are examined, including starting, purchasing or inheriting a firm, as well as being promoted or brought in by existing owners. It is hypothesized that these involve different 'degrees of entrepreneurship', which will be reflected in the profiles of owner-managers who have followed each path. Data on 1756 owner-managers are used to test hypotheses relating path to ownership to: the entrepreneurs' background characteristics: motivations and attitudes; and previous careers, incubator organizations and processes of starting. [ABSTRACT FROM AUTHOR]

Pacific Island countries face a range of development challenges, including smallness, distance from major markets and capacity constraints. Regional service delivery, or pooling, has been advocated as a means of addressing these challenges. This article presents the findings from the first comprehensive study of pooling initiatives in the Pacific. It draws on a review of the literature pertaining to 20 pooling initiatives identified in the region and on interviews with stakeholders involved in many of those initiatives. The study finds that experience with pooling among Pacific Island countries has not met the optimistic expectations of advocates, including development partners. This is the result of the challenges inherent in voluntary regionalism, which are exacerbated by the diversity of Pacific Island states and political economy constraints. The article concludes that an incremental approach to expansion of regional service provision in the Pacific is both likely and appropriate given these factors. [ABSTRACT FROM AUTHOR]

Empirical research on the determinants of regional economic development typically neglects the influence of culture. This study fills that gap by attempting to establish a causal linkage between culture and economic development in the Chinese context. Our empirical analyses are based on a comprehensive economic statistics of China's provinces and prefectures during 1978 to 2008. We use Protestantism as a proxy for culture because Protestant ethic has been linked to the spirit of capitalism and commercial culture in Weber's famous work. To isolate the exogenous variation in culture measure, historical Protestant dissemination is employed as instruments. The estimation results suggest that Christian commercial culture has a significantly positive impact on economic performance - per capita GDP after other important influences (i.e., capital, population, human resources, institutional quality, trade, infrastructure, geography, etc.) are controlled for. We also find heterogeneous effects of culture on economic development in different regions of China. [ABSTRACT FROM AUTHOR]

This article compares Schumpeter, Veblen, and Commons with regard to institutions setting up the paradigm of institutional evolutionary economics. Their theories are of a complex nature, and as such, it is very difficult to situate them in a clear-cut tradition. The main similarity is their opposition to the thesis that market economy is an independent and self-regulating system, in an attempt to integrate economic, sociological, and political perspectives with regard to the functioning of the system. Also, change per se is in contrast to the notion of equilibrium. Of course, despite the parallels, the existence of differences is undeniable. [ABSTRACT FROM AUTHOR]

China's economic development has been miraculous since the transition from a planned economy to a market economy in 1979. This article provides answers to six related questions: Why was it possible for China to achieve such extraordinary performance during its transition? Why was China unable to attain similar success before its transition started? Why did most other transition economies fail to achieve a similar performance? What costs does China pay for its extraordinary success? Can China maintain dynamic growth in the coming decades? What should other developing countries do to achieve similar success? [ABSTRACT FROM AUTHOR]

We investigate the cross-country key factors of profit reinvestment decisions using data compiled by the World Bank from over 7,000 businesses in 36 developing countries. We find that, compared to the security of property rights, it is a firm's access to external financing that plays an important role in a firm's reinvestment decision in emerging economies. The extent of private ownership and the firm's competitiveness are additional significant factors correlated with its reinvestment decision. Furthermore, we uncover a firm size effect in that the above factors driving firm reinvestment decisions appears to impact small firms more than relatively larger firms. [ABSTRACT FROM AUTHOR]

It is often asserted that, between 1865 and 1914, economic dependence on British capital subjected settler societies to an unofficial imperialism wielded by the City of London. This article argues that both advocates and critics of such models, particularly in the recent controversy over 'gentlemanly capitalism', pay insufficient attention to the City itself. Using the Edwardian City's connections with Australia and Canada, it illustrates the range of financial intermediaries involved and explores their perceptions of political economy in these countries. It concludes that the City's influence (or 'structural power') was limited by its internal divisions and hazy conceptions of political economy. [ABSTRACT FROM AUTHOR]

The percentage of Americans who are obese has doubled since 1980. Most attempts to explain this “obesity epidemic” have been found inadequate, including the “Big Two” (the increased availability of inexpensive food and the decline of physical exertion). This article explores the possibility that the obesity epidemic is substantially due to growing insecurity, stress, and a sense of powerlessness in modern society where high-sugar and high-fat foods are increasingly omnipresent. Those suffering these conditions may suffer less control over other domains of their lives. Insecurity and stress have been found to increase the desire for high-fat and high-sugar foods. After exploring the evidence of a link between stress and obesity, the increasing pace of capitalism's creative destruction and its generation of greater insecurity and stress are addressed. The article ends with reflections on how epidemic obesity is symptomatic of a social mistake—the seeking of maximum efficiency and economic growth even in societies where the fundamental problem of material security has been solved. [ABSTRACT FROM AUTHOR]

Muslim entrepreneurs from Kerala, South India, are at the forefront of India's liberalizing economy, keen innovators who have adopted the business and labour practices of global capitalism in both Kerala and the Gulf. They are also heavily involved in both charity and politics through activity in Kerala's Muslim public life. They talk about their ‘social mindedness’ as a combination of piety and economic calculation, the two seen not as excluding but reinforcing each other. By promoting modern education among Muslims, entrepreneurs seek to promote economic development while also embedding economic practices within a framework of ethics and moral responsibilities deemed to be ‘Islamic’. Inscribing business into the rhetoric of the ‘common good’ also legitimizes claims to leadership and political influence. Orientations towards self-transformation through education, adoption of a ‘systematic’ lifestyle, and a generalized rationalization of practices have acquired wider currency amongst Muslims following the rise of reformist influence and are now mobilized to sustain novel forms of capital accumulation. At the same time, Islam is called upon to set moral and ethical boundaries for engagement with the neoliberal economy. Instrumentalist analyses cannot adequately explain the vast amounts of time and money which Muslim entrepreneurs put into innumerable ‘social’ projects, and neither ‘political Islam’ nor public pietism adequately captures the possibilities or motivations for engagement among contemporary reformist-orientated Muslims. Résumé Les entrepreneurs musulmans de l’état indien du Kerala sont en première ligne dans l’économie indienne en voie de libéralisation. Ces innovateurs ont adopté les pratiques d’entreprise et de gestion de la main-d’œuvre du capitalisme global, aussi bien dans le Kerala que dans le Golfe Persique. Ils sont également très engagés dans la bienfaisance et la politique, par leur activité dans la vie publique des musulmans du Kerala. Ils parlent de leur « esprit social » comme d’une combinaison de piété et de calcul économique, lesquelles sont perçues non pas comme mutuellement exclusives mais comme se renforçant mutuellement. En promouvant une éducation moderne des musulmans, ils tentent de favoriser le développement économique tout en plaçant leurs pratiques économiques dans un cadre d’éthique et de responsabilités morales considéré comme « islamique ». En inscrivant les affaires dans la rhétorique du « bien commun », ils légitiment du même coup leurs revendications de leadership et d’influence politique. L’orientation vers la transformation de soi par le biais de l’éducation, l’adoption d’un mode de vie « systématique » et une rationalisation généralisée des pratiques ont été largement adoptées parmi les musulmans sous l’effet de l’influence croissante des réformistes, et elles sont à présent mobilisées à l’appui de nouvelles formes d’accumulation de capital. Dans le même temps, on invoque l’islam pour fixer des limites morales et éthiques à l’engagement dans l’économie néolibérale. Les analyses instrumentalistes ne suffissent pas à expliquer la masse de temps et d’argent que les entrepreneurs musulmans consacrent à d’innombrables projets « sociaux ». Ni l’islam « politique » ni le piétisme public ne peuvent non plus rendre compte de façon adéquate des possibilités ou motivations d’engagement des musulmans réformistes contemporains. [ABSTRACT FROM AUTHOR]

This article evaluates critically the meta-narrative that capitalism is becoming totalizing and hegemonic. Recently, an emerging corpus of postdevelopment thought has begun to deconstruct this discourse, but only in relation to Western economies and the majority (third) world. To further contribute to this emerging critique, the aim is to analyze the degree to which capitalist economic practices have permeated postsocialist societies through a case study of Moscow. Based on face-to-face interviews with 313 households during 2005/06 concerning their work practices, a relatively shallow penetration of capitalism in this city is identified, with only a minority of households relying on the capitalist economy in particular, and the formal economy more generally, to secure their livelihood. The vast majority of the population is found to depend heavily on an array of noncapitalist economic practices; and capitalist and noncapitalist practices are identified as operating in tandem with, rather than in opposition to, each other. The outcome is a call to refute the universality of capitalist hegemony and to rethink the nature of economic development from a perspective that recognizes the persistence of economic pluralism. [ABSTRACT FROM AUTHOR]

The article discusses the global economy, which the article asserts is suffering from serious imbalances characterised by a deterioration of the U.S. current account deficit, rapid increases in oil and raw material prices, and excessive international liquidity. The article compares these issues with the rapidly growing Chinese economy, which is suffering from serious imbalances of another kind, characterised by rapid increases in the so-called "twin surpluses" (current account and capital account surpluses), persistence of excessive investment, acute energy shortages, deterioration of the environment, and the rapid widening of income gaps. Programs adopted by the Chinese government aimed at achieving a more balanced and sustainable growth pattern are discussed.

The substitution toward information technology (IT) capital fueled by the rapid decline in IT prices is regarded as an important source of U.S. economic growth. Using data on 41 U.S. industries for the period from 1984 to 1999, this article examines the degree of substitutability between IT capital and other inputs and quantifies the contribution of IT substitution to the accumulation of IT capital per hour worked. Estimates of various elasticities of substitution indicate that IT capital and other factors of production are substitutes. In particular, the substitution of IT capital for other inputs is salient in the industries with less IT capital. Among the sources of IT capital deepening, IT substitution accounts for about 60% of growth in IT capital per hour worked. [ABSTRACT FROM AUTHOR]

Prior to the Asian financial crisis, the cozy relationships between corporations governments, and banks were seen as a potent force for economic growth and development. In this article we examine the institution of crony capitalism. Under conditions in which the Second Welfare Theorem does not hold, there is a role for government. Some governmental institutions do encourage more risky, high-payoff entrepreneurial activities. Our aim is to -examine crony capitalism as a potential source of government activity that enhances economic productivity. In addition, we explore the conditions under which the government activity can instigate a financial crisis. [ABSTRACT FROM AUTHOR]

Considers an exogenous transition from a self-sufficient traditional economy to a market economy and its consequences on fertility and growth. Factors that lead to the transition; Emergence of markets if per capita output exceeds a certain level given a fixed cost of forming markets; Reduction of fertility and promotion of growth.

The utility of a Marx-Weber synthesis for the study of rural stratification is critically examined through an analysis of Patrick Mooney's recent contributions to rural sociology. First, we review his discussions of contradictory class locations and the resulting detours to rural capitalist development. Second, his theoretical and empirical critique of the Mann-Dickinson thesis is appraised and criticized for its use of an ahistorical positivist methodology. Third, we consider Mooney's Weberian explanation of detours to rural capitalist development and find it inadequate because of its one-sided focus on subjective factors. Finally, Mooney's suggestion that life-cycle analysis may be useful in developing explanations of contemporary rural development is considered through a critical analysis of Chayanov's demographic theory of the family farm. We conclude that sufficient differences exist between Marx and Weber with respect to definitions of social class, the relation of formal to substantive rationality, the value of a voluntaristic social-action approach, and the explanatory power of demographic variables to caution against any premature synthesis of their concepts and ideas in rural sociological research. [ABSTRACT FROM AUTHOR]

The history of Botswana's economy reflects the development of an open, multi-party democracy through which group, class and regional conflicts have been resolved. Four socioeconomic problems have been emerging in ways which challenge this process and thereby threaten the bases for Botswana's material progress and social and economic stability. The problems involve a growing income and asset ownership gap among Botswana, an expanding demand for scarce water, a decreasing output of cereal crops, and a growing economic dependence on the Republic of South Africa. In response to the problems, matters of which the governing class is clearly cognizant, these key development policy measures have been undertaken: the Arabic Lands Development Program; the Tribal Grazing Lands Policy; and the Financial Assistance Program. The measures' contents are designed to expand rural, agricultural employment and generate rural incomes, expand cereal crop production, lessen food dependency on South Africa, and improve water management. However, the measures need to be modified to insure the maximum developmental impact. [ABSTRACT FROM AUTHOR]

Some of the responsibility for the inability of Western-oriented Third World Countries (1) to make democratic economic institutions work rests upon advisers to American and international financial institutions who recommend principles of economic growth distilled out of Keynesian recipes for an over-saving Western society of the 1930s, and out of aspects of American experience with no applicability elsewhere. Applicable aspects of U.S. experience suggest a program relying on capitalistic drives and using fiscal and monetary policy of the type that proved useful in the development of democratic capitalism in the U.S. in the 19th century. [ABSTRACT FROM AUTHOR]

Despite some important similarities, capitalism's informal economy and socialism's second economy are not functional equivalents or structural counterparts. An informal economy is the product of efforts to circumvent accountability to the explicit rationalizations of regulatory bureaucratization. It operates according to principles disparate from those of the rules of internal labor markets but congruent with the market principles that coordinate the formal economy. In the centrally planned economies of state socialism where informalization responds to the contradictions of redistributive bureaucratization, the embryonic market relations of the second economy are the congruent with the bureaucratic principles that coordinate the formal economy, and in fact, stimulate the institutionalization of transactive market relations and the expansion of property rights inside the socialist enterprise. As a sphere of activity relatively autonomous from the state, the second economy is a source of fundamental change remaking the economic institutions of socialism. [ABSTRACT FROM AUTHOR]