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Energy is pivotal for sustainable economic growth. Undoubtedly, the role of the composition of the export basket (measured as economic complexity) is one of the crucial variables influencing energy consumption. Despite its importance, the existing body of literature does not intensively study the relationship between economic complexity and total energy consumption. Therefore, this study's primary aim was to examine the effect of economic complexity on energy consumption in a case study of 21 developed and 44 developing countries for the period 1971–2014. In this context, economic complexity expresses the level of sophistication of a country's export basket. This paper considers energy prices and income as explanatory variables in Durbin‐H panel cointegration analysis and applies a cointegration test with structural breaks to check for the long‐run relationships. For the long‐run estimations, we employ the augmented mean group method and dynamic seemingly unrelated regression. The findings reveal that economic complexity increases energy consumption in developing countries while it decreases energy consumption in developed countries. This is an important insight for countries concerned about their energy dependence. The diversification of their production and export baskets can reduce energy needs. The paper finally presents policy recommendations based on the empirical estimates. [ABSTRACT FROM AUTHOR]

The article presents a request for the submission of reports on sustainable development and identity. The increasing rate of consumption negatively affected the ecological system. Sustainability needs to be contextualized in terms of identities. Identities are influenced by social reality. The papers should examine the aesthetic, emotional. communicative and social aspects of consumption and organizing in different social and cultural contexts. The papers could either be based on empirical findings or be conceptual.

This paper examines the evolution of consumption practices in Venice in the long eighteenth century through the combined use of post‐mortem inventories and household budgets. Although Italy experienced a period of relative decline between the seventeenth and eighteenth centuries, our findings suggest that Venetian households enjoyed a rich and vibrant material culture that was fully comparable with those of the most advanced European urban economies. However, although new products, practices, and fashions were adopted by Venetian society, the architecture of consumption did not undergo sudden and extreme changes; rather, consumption was gradually refined, following the path that it had begun during the Renaissance. We therefore argue that the Venetian economy did not experience a consumer revolution but, instead, consumer evolution. Moreover, this study shows that sophisticated consumption practices were not exclusive to the more dynamic economies of the continent but were widespread even in those regions that were victims of the Little Divergence. We thus suggest that the relationship between consumption development and economic development was not necessarily causal and that the diffusion of new consumption practices throughout society was a necessary, but insufficient, prerequisite for economic take‐off. [ABSTRACT FROM AUTHOR]

The paper by Lucas (1978) "Asset Prices in an Exchange Economy" initiated a paradigmatic change in the Theory of Equilibrium Pricing of Risky Assets. It was followed by several papers including those by Brock (1979, 1982), Prescott and Mehra (1980) and Donaldson and Mehra (1984) who generalize Lucas' model to a production setting. In this paper, we examine a variation of Lucas' pure exchange model. In Lucas' model the level of consumption follows a Markov process. Observing the large increases in per capital consumption in the past, we postulate that the growth rate of consumption follows a Markov process, an assumption that enables us to capture the nonstationarity in the consumption series. Our extension is particularly relevant for empiricists interested in testing consumption-based asset pricing models in the Lucas-Prescott research tradition. [ABSTRACT FROM AUTHOR]

Identifying three prevalent approaches-Richard Florida's consumption-related Creative Class thesis, clustering of the creative industries, and global production networks of these industries-to understand the geography and development of the creative industries in existing literature, this paper reviews the significance and limitations of these approaches. It argues that existing literature treat these approaches 'stand alone' from each another, without acknowledging the importance of other actors and forces. Instead, these three dynamics do not function separately, but are interdependent and complementary. It points to a critical agenda for future research, arguing that it is the intersection and synergy between these three dynamics that together shapes the development of the creative industries. This paper calls for further research, first, to examine the interrelationship between the local and the global scales of the creative industries by adopting the Global Production Networks (GPN) approach and, second, to study the association between the consumption-related urban amenities and the production of the creative industries. [ABSTRACT FROM AUTHOR]

In a Ramsey-Cass-Koopmans growth framework it is shown that for an optimum a benevolent social planner cannot have an excessive "love of wealth". With a "right" "love of wealth" an optimum exists and implies higher long-run per-capita capital, income, and consumption relative to the standard model. This has important implications for comparative development trajectories. The optimum implies dynamic efficiency with the possibility of getting arbitrarily close to the golden rule where long-run per-capita consumption is maximal. It is shown that the optimal path attains its steady state more slowly. Thus, the beneficial effects of love of wealth materialize later than in the standard model. Furthermore, the economy can be decentralized as a competitive private ownership economy. One can then identify "love of wealth" with the "spirit of capitalism." The paper thus implies that one needs a "right" level of the "spirit of capitalism" to realize any beneficial effects for the long run. [ABSTRACT FROM AUTHOR]

Summary: Product/service‐systems (PSS) that focus on selling service and performance instead of products are often mentioned as means to realize a circular economy (CE), in which economic growth is decoupled from resource consumption. However, a PSS is no implicit guarantee for a CE, and CE strategies do not necessarily lead to decoupling economic growth from resource consumption in absolute terms. Absolute resource decoupling only occurs when the resource use declines, irrespective of the growth rate of the economic driver. In this forum paper, we propose a two‐step framework that aims to support analyses of PSS and their potential to lead to absolute resource decoupling. In the first step, we present four PSS enablers of relative resource reduction that qualify as CE strategies. In the second step, three subsequent requirements need to be met, in order to successfully achieve absolute resource decoupling. Conditions and limitations for this accomplishment are discussed. Danish textile cases are used to exemplify the framework elements and its application. We expect that the framework will challenge the debate on the necessary conditions for CE strategies to ensure absolute resource decoupling. [ABSTRACT FROM AUTHOR]

Many authors have estimated and found that the productivity growth in agriculture is higher than that in non-agriculture in today's richest countries. Several papers suggested that growth in agricultural productivity was essential for today's richest countries to take off early. However, few articles noticed that growth in agricultural productivity is critical in driving structural change in today's richest countries. This paper studies a two-sector neoclassical growth model with subsistence agricultural consumption and shows that growth in agricultural productivity plays a more important role than growth in non-agricultural productivity in governing massive structural change in today's richest countries. [ABSTRACT FROM AUTHOR]

Abstract: Domestic savings remain low in Ghana despite several attempts to improve this situation. Whereas existing studies on private savings have identified several determinants, the role of financial literacy in saving decisions has not been explored. In this paper, we build on existing studies and provide evidence supporting our hypothesis that financial literacy is key to promoting domestic saving. The study relies mainly on primary data, and the binary probit regression model is employed as the estimation technique. Our results show that improving financial literacy among Ghanaians should be incorporated into the broad policy package aimed at increasing domestic saving which is a prerequisite for investment and subsequently sustainable economic growth. Copyright © 2018 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Abstract: This paper explores the matrix demand multiplier in Sraffian frameworks and shows that it involves an autonomous demand‐transfer payments curve, which exhibits formal similarities with the well‐known consumption (wage)‐growth (profit) curve in steady‐state capital and growth theory. [ABSTRACT FROM AUTHOR]

One potential consequence of rising top‐income concentration is borrowing by less‐affluent households attempting to maintain relative living standards. This paper evaluates the “keeping up with the Joneses” phenomenon, examining the responsiveness of payment‐to‐income ratios for different debt types across the income distribution to changes in income among affluent households. The analysis provides evidence for the responsiveness of debt to rising top incomes. Middle‐ and upper‐middle‐income households take on more housing‐related debt and have higher payments in places with higher top‐income levels. Among lower‐income households non‐mortgage borrowing and debt payments decline, consistent with restrictions in the supply of credit. (JEL D63, D14) [ABSTRACT FROM AUTHOR]

This paper uses an intertemporal optimizing model with country-specific risk premium to evaluate the real effects of inflation in a small open developing economy. In the model, a central bank targets inflation, and the consumer requires real balances in advance for consumption spending. We show that a positive inflation shock (either due to growth in money supply or depreciation of the domestic currency) yields a decrease in real output and consumption-as inflation creates a tax wedge in the intratemporal condition between consumption and leisure-leading to a decrease in the stock of real debt in domestic currency. Employing these theoretical predictions and using annual data from a set of six developing countries (Chile, Ghana, Indonesia, Kenya, Malaysia and Thailand), we estimate a sign-restriction based structural vector autoregression model along with a panel vector autoregression model for robustness analysis. The empirical results support the trade-off of inflation with reference to the key real variables including the external debt position, which is a significant result given the ambiguity in the empirical literature as to whether governments can escape from debt crisis via higher inflation. Copyright © 2016 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper estimates a model in which persistent fluctuations in expected consumption growth, expected inflation, and their time-varying volatility determine asset price variation. The model features Epstein-Zin recursive preferences, which determine the market price of macro risk factors. Analysis of the US nominal term structure data from 1953 to 2006 shows that agents dislike high uncertainty and demand compensation for volatility risks. Also, the time variation of the term premium is driven by the compensation for inflation volatility risk, which is distinct from consumption volatility risk. The central role of inflation volatility risk in explaining the time-varying term premium is consistent with other empirical evidence including survey data. In contrast, the existing long-run risks literature emphasizes consumption volatility risk and ignores inflation-specific time-varying volatility. The estimation results of this paper suggest that inflation-specific volatility risk is essential for fitting the time series of the US nominal term structure data. Copyright © 2012 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The paper offers a theoretical analysis of long-run economic growth as an outcome of structural changes. We model the microeconomic behaviour of firms in the final good and capital sectors, and the evolution of classes of workers/consumers. We carefully craft economic behaviour onto empirical evidence, and solve the model numerically. The results illustrate the microeconomic properties of the simulated growth patterns. In particular, we observe and explain the interactions between technological change, firm organization, income distribution, consumption behaviour and growth. We confirm the relevance and interdependence of these structural changes, and underline their microeconomic sources. [ABSTRACT FROM AUTHOR]

Based on material flow (MF) theory, this paper proposes two kinds of relationships between MF and economic development in an economic–MF system. First, the relationship between MF input and economic output, weighed by the two indexes ‘MF economic efficiency (MF economic effect coefficient)’ and ‘MF input coefficient (MF consumption coefficient)’; and second, the relationship between MF input increment rate and economic output increment rate, weighed by the index ‘MF input elasticity coefficient’. Using a mathematical interpretation among the above three indexes, the authors propose the developing and changing patterns of the three indexes with demonstration analysis. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper uses a combination of nationally representative individual level time use, household and community data to further our understanding of time poverty. With a common, and growing, perception in the empirical literature being that Sub Saharan African females are typically disadvantaged in market-based activities because of the large time burden of having to undertake both formal work and domestic duties, it is important to understand some of the key processes and issues that underpin, and link with, poverty reduction. Using nationally representative data from Lesotho we are able to provide unique insights into gender-related, formal and informal, work allocations and specifically obtain insights regarding the main determinants of those who are “time poor”, and how key infrastructural elements impact on this. [ABSTRACT FROM AUTHOR]

In this paper we examine the implication of a simple class of fiscal rules for long-run economic growth and welfare. The Golden Rule of Public Finance that we examine is motivated by institutional arrangements in countries such as Germany and the UK. We find that rules that seek to limit government borrowing to productive investment spending have a clear justification in terms of growth and welfare when government-provided goods are otherwise excessively provided. Even in the case where it is private consumption that is excessive, the Golden Rule of Public Finance is likely to be good from a growth perspective, but the welfare effects are more ambiguous. [ABSTRACT FROM AUTHOR]

Copyright of Kyklos is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this paper we show that consumption externalities reduce the degree of increasing returns needed to generate indeterminacy in a two-sector optimal growth model. In equilibrium, consumption externalities operate as if the utility function is (close to) linear. If these externalities are strong, the minimum necessary increasing returns approach zero. Therefore, this paper—in a stylized fashion—provides an example of how microbehavior, i.e. interactions at the household level, can generate aggregate instability. Consumption externalities also help to eliminate the counterfactual cyclical behavior of consumption in the two-sector model. [ABSTRACT FROM AUTHOR]

Using a state-space model, this paper examines time variation in the predictive regressions for stock returns, dividend growth and consumption growth. Moreover, we linked time variation explicitly to movements in economic factors that can account for risk and cash flow. Results support the view that stock return predictability is enhanced when risk is high (negative growth, higher volatility and positive growth/return covariance). In contrast, dividend growth and consumption growth predictability is enhanced during economic expansions. These results are supported by subsample analysis and a vector autoregressive approach. Furthermore, these latter exercises may uncover differences in the stock return predictability relationship when viewed over different time horizons. Overall, the paper contributes to the literature by highlighting the different nature of returns predictability, which arises largely through the risk channel, and dividend and consumption growth predictability, which arise through the cash flow channel. Copyright © 2015 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This rejoinder is a rebuttal of the claims made by Dávila‐Fernández, Oreiro, and Punzo (in press) in their comment on Lavoie (). All three points that they make are mistaken: I did not pretend that the introduction of autonomous noncapacity expenditures would on its own allow the neo‐Kaleckian growth model to converge toward the normal rate of capacity utilization; the 'Keynesian' message is not eliminated when investment expenditures are essentially induced in a neo‐Kaleckian model; and the equations that they provide to endogenize the normal rate of capacity utilization are meaningless. [ABSTRACT FROM AUTHOR]

The theory of optimum economic growth that has been developed in the past few years is concerned primarily with the division of the national product between consumption and investment in order to attain the pattern of capital accumulation which the society as a whole prefers to all the alternative schedules. It has been discussed within the conceptual framework originated with Frank Ramsey's classic work, where the basic premises are those of a planned economy within which decisions concerning the allocation of scarce resources are made by central planning authorities. The emphasis placed upon the role of centralized planning is partly due to the growing awareness, based upon both the prewar experiences of the more advanced countries and the postwar experiences of the less developed countries, of the inadequacy of the market mechanism to bring about the desired pattern of economic growth. In a static environment, the (Pareto-) optimality of the allocation achieved in a perfectly competitive market has long been established as one of the basic propositions in welfare economics, but the analysis has not been extended to the case of a greying economy, except for a number of studies originating with Samuelson and Lerner. The purpose of the present paper is to compare the relationships of the growth pattern achieved under the market mechanism with these of optimum growth, in terms of the analytical apparatus recently developed by Koopmans, Cass and others. The concept of optimum economic growth adopted here, however, differs from that commonly used in the optimum growth literature, where the welfare criterion by which various time-paths of consumption are compared with each other is assumed to be exogenously given, in general independently of the preference schedule of the members of the society. In the present paper, we shall instead postulate that the aggregative behavior of the economy may be described by that of the representative individual unit, possessing a... [ABSTRACT FROM AUTHOR]

This paper explores the localness of Greek prefectures according to the methodological approach of economic base and, specifically, the minimum requirements technique, which leads to the estimation of a localness index for each group of prefectures of similar population size. Hence, through the definition of the types of areas that enhance their localness, the determination of the spatial pattern and the causes of these changes could be better investigated. According to the results of the research, a growing localness in all groups of prefectures during the period 2000-2009 has emerged. Localness seems high in a group with the highest population and largest urban concentrations, enhancing their ability to be largely self-powered locally. Localness is high in the smallest group too, which is characterized by the pattern of integrated spatial development. Thus, without underestimating the importance of exports and imports, it makes more sense to look at localness and extroversion together in order to achieve greater development. [ABSTRACT FROM AUTHOR]

Geographers first identified aquaculture as an important field of study during the 1990s, pointing to a 'net deficit' in geographical knowledge about the activity. This paper examines how far geographers have come in bridging this knowledge deficit in the last 20 years. While increasing attention has focused on the political economy of export products consumed in the global North, 'everyday' geographies of aquaculture production and consumption in the global South have been neglected. We argue that paying greater attention to everyday aquaculture in the global South provides opportunities for geographers to engage with wider questions around development and change that extend far beyond aquaculture. By focusing on changing patterns of aquaculture production for Southern domestic markets, geographers can provide a counterpoint to Northern dominated agro-food studies by re-emphasising the importance of consumption, urbanisation and agrarian transitions from a more place-based perspective and, in doing so, support the development of theory that reflects Southern realties. [ABSTRACT FROM AUTHOR]

Throughout history, agriculture and natural resources have been used for the production of food, feed, fibre, fuel, and environmental goods. Recent developments in demand both in terms of quantity and quality, technology, and traditional energy and chemistry markets have reinforced the demand for nonfood applications. These developments, in combination with increased consumer demands for various food characteristics, have led to a rapidly growing and globally integrated 'bio-economy.' This article introduces and summarizes the plenary papers on the opportunities and challenges for the bio-economy that were presented at the 28th triennial conference of the International Association of Agricultural Economists (IAAE) in Brazil. The following aspects of the bio-economy are covered: finance, volatility, poverty, conflict, productivity, investment, resource constraints, and governance. [ABSTRACT FROM AUTHOR]

Using changes in the possession of household assets over the past 20 years, several recent papers have argued that economic growth and poverty reduction in Africa was substantially better than suggested by national income data and income poverty statistics, which suffer from well-known weaknesses. We scrutinize these claims and first argue that trends in assets provide biased proxies for trends in incomes or consumption. In particular we show that the relationship between growth in assets and growth in incomes or consumption is extremely weak; instead, we find evidence of asset drift using macro and micro data, which is consistent with the claims we make about possible biases in the use of asset indices. As a result, we find no evidence supporting the claim of an African growth miracle that extends beyond what has been reported in official GDP/capita and consumption figures. [ABSTRACT FROM AUTHOR]

Abstract: This paper deals with the problem of new intermediate products within a simple model, where production is circular and goods enter into the production of other goods. It studies the process by which the new good is absorbed into the economy and the structural transformation that goes with it. By means of a long‐period method the forces of structural transformation are examined, in particular the shift of existing means of production towards the innovation and the mechanism of differential growth in terms of alternative techniques and their associated systems of production. We treat two important Schumpeterian topics: the question of technological unemployment and the problem of ‘forced saving’ and the related problem of an involuntary reduction of real consumption per capita. It is shown that both phenomena are potential by‐products of the transformation process. [ABSTRACT FROM AUTHOR]

This paper uses a fractional methodology to assess convergence in terms of differences in health quality measures, based on six primary criteria, across the English regions. Hence, it uses the English Longitudinal Study of Ageing database and the retrospective interviews from 16,894 participants, aged 50+, with data from three waves-2004/5, 2006/7 and 2008/9, to establish that health quality is characterized by divergences across six health quality criteria. When the overall sample is differentiated through income, education and employment, the evidence favors convergence, indicating that certain socioeconomic factors impose a uniform behavioral attitude of the population toward health quality criteria. [ABSTRACT FROM AUTHOR]

This paper examines the degree to which creative industries stimulate regional productivity growth in a developing country, Indonesia. The Indonesian government promotes long-established 'traditional' craft businesses as creative industries, but they pay less attention to new knowledge creation and focus on highlighting heritage values as selling points. Our findings show that the 'real' creative industries are still scarce and found mostly in fairly advanced urban regions. These industries are more likely to be an indicator than a driver of regional economic development. Meanwhile, those traditional businesses are much larger than creative industries and potentially contribute to regional productivity through consumption activities, thereby requiring different policy strategies. [ABSTRACT FROM AUTHOR]

In this paper, I consider an economy that is constrained by the use of natural resources and driven by knowledge accumulation. Resources are essential inputs in all sectors. I show that population growth and poor input substitution are not detrimental but, on the contrary, are even necessary to obtain a sustainable consumption level. I find a general rule to define the conditions for a constant innovation rate. The rule does not apply to capital but to labor growth, which is the crucial input in research. Furthermore, the rule relates to the sectoral structure of the economy, and to demographic transition. The results continue to hold with a backstop technology, and are extended for the case of minimum resource constraints. [ABSTRACT FROM AUTHOR]

Over the past two decades, the consumption of animal products has increased rapidly in China and India, driven by rising income and large populations. Such strong demand for animal products could have substantial impacts on both their own and global food and feed demand and supply. This paper examines the nature of rising demand for animal products in China and India and discusses national and global implications. [ABSTRACT FROM AUTHOR]

Using panel data for provinces compiled from household expenditure microdata, the present paper empirically investigates the relationships among growth, poverty and inequality in Thailand and the Philippines. The empirical model avoids the potential bias due to the fact that the entire distribution of individual-level consumption changes over time and empirical variables for growth, poverty and inequality are often compiled from the consumption distribution. The system generalized method of moments estimation results strongly suggest that inequality reduced the growth rate of per-capita consumption, and that differences in inequality explain a substantial portion of the Philippine-Thai difference in growth and poverty reduction since the late 1980s. [ABSTRACT FROM AUTHOR]

In this paper we re-examine the Feldstein–Horioka finding of limited international capital mobility by using a broader view (i.e. including human capital) of investment and saving. We find that the decline in the economic significance of the Feldstein–Horioka result, found in studies using more recent data, holds also for our broader definition of saving and investment. [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]

In this paper, the author proposes a basic theory in technological economics—Theory of Six Forces of Essential Factors of Production (SFEFP) for the first time. This theory includes six principles: (1) the principle of material and value of six forces; (2) the principle of possession and consumption of six forces; (3) the principle of spatial unification of six forces; (4) the principle of common interactions of six forces; (5) the principle of inter-replacement of six forces and (6) the principle of cooperative development of six forces. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

In this paper we explore three important areas where deeper trade and financial integration in East Asia can influence: (1) business cycle co-movements in the region, (2) the extent of risk sharing across countries and (3) price co-movements across countries. We find evidence that trade integration enhances co-movements of output but not of consumption across countries. Especially the fact that trade integration does not raise co-movements of consumption as much as that of output is interpreted as trade integration does not improve the extent of risk sharing. Co-movements of price arise most significantly as trade integration deepens, lowering the border effects and allowing better opportunities for resource reallocation across countries. In contrast, financial integration demonstrates much weaker evidence of enhancing co-movements across countries. Deeper financial integration improves price co-movements weakly but does not enhance output or consumption co-movements at all. However, since the current level of financial integration in East Asia is quite low, our evidence is too early to firmly determine the role of financial integration. [ABSTRACT FROM AUTHOR]

This paper explores how the occurrence of local indeterminacy and endogenous business cycles relates to dynamic inefficiency, as defined by Malinvaud (1953), Phelps (1965) and Cass (1972). We follow Reichlin (1986) and Grandmont (1993) by considering a two-period overlapping generations model of capital accumulation with labor–leisure choice into the first-period of an agent's life and consumption in both periods. We first show that local indeterminacy and Hopf bifurcation are necessarily associated with a capital–labor ratio that is, at steady state, larger than the Golden Rule level. Consequently, paths converging asymptotically towards the steady state are shown to be dynamically inefficient, as there always exists another trajectory that starts with the same initial conditions and produces more aggregate consumption at all future dates. More surprising, however, is our main result showing that stable orbits, generated around a dynamically inefficient steady state through a supercritical Hopf bifurcation, may, in contrast, be dynamically efficient. [ABSTRACT FROM AUTHOR]

Copyright of Kyklos is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper investigates the channels through which the middle class may matter for consumption growth. Using several different middle-class measures and a panel of 105 developing countries spanning the period 1985-2013, we find that a larger middle class influences consumption growth primarily through higher levels of human capital accumulation. There is also a significant direct effect of middle-class size on consumption growth, which is more pronounced in the latter half of the sample, the 2000-2013 period. [ABSTRACT FROM AUTHOR]

This paper applies the standard 2 x 2 trade model to an inter-temporal context, to demonstrate that previous (macro) optimization models of international borrowing for LDCs are special cases of a more general (and more flexible) model of optimal borrowing. It demonstrates that previous models involve only inter-temporal consumption smoothing and prohibit inter-temporal specialization in production. [ABSTRACT FROM AUTHOR]

This article presents an analysis of the dynamic effects of monetary shock on the level of output of a small and open economy. The adjustment path following monetary expansion is characterized by rising wages and prices which contribute to a rising real wage for labour as it returns to its previous long-run level, increasing output. As prices rise, the rate of inflation falls. Thus, the adjustment path is characterized by falling inflation and rising output. This analysis is significant as a contribution towards integrating modern labour market theory with exchange rate and balance of payments work. Expectations are important in the dynamic analysis of the paper. It is desirable that expectations be endogenous as they should be affected by recent and current disturbances. The domestic country is large enough in the market for the domestic good to affect its price but it is small in the market for the foreign good leaving foreign currency prices exogenous to domestic activity. Domestic wages and prices are assumed to adjust slowly to their long-run equilibrium values implying short-run disequilibrium in goods and labour markets. Output is assumed to be determined by the minimum of demand and supply.

SUMMARY It is the purpose of the present paper to replace the traditional theory of industrial stages by a better model based on the criteria of capital and control. In constructing the new model we became aware of the fact it is necessary to distinguish between 'capital'-intensive and 'capital'-extensive industries and again within the latter between those which worked for local consumption and for the export trade, respectively. Only for the 'capital'-extensive industries working for the export trade something like stages in the industrial development can be discovered. In fact, the stage reached in these industries in the eighteenth century brought them organizationally close to the older 'capital'-intensive industries, so that for that period we subsume both under the head of protofactory. The protofactory of the model based on capital and control shows the essential characteristics of the factory, although in reality there were some elements distinguishing the protofactory from the full-fledged factory. In the second section of the paper we describe in detail the organizational features of the protofactory after clearing up the etymological confusion in that ZUSAMMENFASSUNG Der Beitrag zielt darauf ab, die traditionelle Theorie der industriellen Stufen durch ein auf den Kriterien ≪Kapital≫ und ≪KontroIle≫ basierendes, besseres Modell zu ersetzen. Beim Aufbau dieses neuen Modells zeigte sich die Notwendig-keit einer Unterscheidung zwischen kapitahntensiven und kapitalextensiven Industrien, welche letztere wiederum unterteilt werden mussen in solche, die fiir den einheimischen Verbrauch arbeiten, und solche, die fiir den Export produ-zieren. Nur fiir die im Export tatigen kapitalextensiven Industrien lasst sich so etwas wie Stadien der industriellen Entwicklung entdecken. In der Tat brachte das Stadium, welches diese Industrien im 18. Jahrhundert erreicht hatten, sie organisatorisch in enge Verbindung zu den alteren, kapitahntensiven Industrien, so dass fiir jene Periode beide unter dem Oberbegriff'Ur-Fabrik' (protofactory) zusammengefasst werden konnen. Das auf ≪Kapital≫ und ≪K.ontrolle≫ aufge-baute Modell der Urfabrik bringt wesentliche Merkmale der Fabrik zum Aus-druck, obwohl sich in Wirklichkeit die Urfabrik von der fliigge gewordenen Fabrik in einigen Punkten unterschied. Im zweiten Teil der Arbeit werden die organisatorischen Grundziige der Urfabrik im Detail beschrieben; zuvor wird die in diesem Bereich herrschende etymologische Verwirrung geklart. Abschliessend wird gezeigt, dass weder der im organisatorischen Aufbau der Industrie tatige Geschaftsmann noch der zeit-genossische Okonom erfasst hatten, was sich vor ihren Augen abspielte. Es brauchte Jahrzehnte, bis der Industrielle die Notwendigkeit regelmassiger Ab-schreibungen erkannte, und der klassische Okonom lehrte noch lange die inverse Korrelation zwischen Lohn und Profit und die Vcrschiebbarkeit des Kapitals von Industrie zu Industrie, nachdem diese beidenfiir das putting-out system typischen Wesensziige mit dem Erscheinen der Urfabrik verschwunden waren. RÉSUMÉ Cet article a pour but, de remplacer la théorie traditionelle des stades industriels par un modèle meilleur, basé sur les critères de capital et de contrǒ1e. En construisant ce nouveau modèle, nous nous rendons compte de la nécessité, de distinguer entre industries intensives en capital et celles extensives en capital et ces dernieres de nouveau, en celles qui travaillent pour la consommation interne, et celles qui produisent pour l'exportation. C'est uniquement pour les industries extensives en capital produisant pour l'exportation, qu'on peut d^couvrir des soi-disants stades du developpement industriels. En fait, le stade atteint dans ces industries au dix-huitieme siecle les amenait du point de vue de I'organisation en relation étroite avec les industries plus vieilles et intensives en capital, de facon a ce que pour cette periode, les deux pouvaient ětre résumés sous le terme de ≪protofabrique≫. La protofabrique du modele, basee sur le capital et le contrdle met en relief les principales caracteristiques de l'usine, malgre que la protofabrique se distingue en realite en beaucoup de points de l'usine evoluée. Dans la deuxieme partie de cet article, les elements organisateurs de la protofabrique sont decrits en detail, apres avoir eclairci les confusions etymologiques. Finalement l'auteur montre, que ni le commercant actif dans le developpement organisateur de l'industrie, ni l'economiste classique contemporain ont saisi ce qui se deroulait devant leurs yeux. II a fallu des dixaines d'annees jusqu'a ce que I'industriel reconnaisse Futility d'amortisations regulieres, et l'econome classique enseignait encore longtemps la correlation inverse entre le salaire et le profit et Pajustement du capital d'une industrie a l'autre, malgre que ces deux faits typiques par le 'putting-out system', avaient disparu avec l'apparition de la protofabrique. [ABSTRACT FROM AUTHOR]

We analyse the influence of financial openness on the level of aggregate consumption, a research question that has been left surprisingly unexplored by the previous literature. We construct a complete and balanced panel data set of 88 countries for the period 1980-2010, and then differentiate between four groups of countries. Models for non-stationary heterogeneous panels, as well as panel threshold regression models, are used to estimate the determinants of aggregate consumption. The core finding of the paper is that the financial openness effect on consumption changes in the course of economic development, with the level or per capita income acting as a threshold which is consistently estimated within the model. The openness effect is non-homogeneous across groups, stronger for low levels of per capita income and diminishes as income rises. These findings provide new insights into the welfare effect of financial liberalization. [ABSTRACT FROM AUTHOR]

The middle class of Vietnam is growing and so is their consumption, especially in urban areas. This is due to the effects of rapid economic growth, industrialization and increasing wealth in combination with a young, growing population. This paper aims to understand current consumption patterns and consumption categories that can provide a start for sustainable lifestyles among the Vietnamese middle class. Data was collected in the capital Hanoi, in the north of Vietnam. The current level of awareness, knowledge and attitude was explored on five specific consumption topics: energy, transport, water, waste, and food. A combination of quantitative and qualitative data was collected: 5 focus groups, 5 in-depth interviews and a survey among 158 Vietnamese urban middle class consumers. The results are discussed according to the MOA model that explains behaviour as a function of three components: Motivation, Opportunity and Ability. The research concludes that awareness and knowledge of the urban middle class in Vietnam on sustainable consumption is generally low. However, the motivation to live healthy lifestyles and protect the planet for their future generations is rather high. In order to support more sustainable lifestyles, the awareness of environmental issues needs to be increased; knowledge needs to be made available and accessible (ability); and role models need to set an example for the urban middle class of Vietnam. Furthermore, health in combination with food is the most important reason for people to pursue a sustainable lifestyle (motivation) and the need to change was expressed. However, a general distrust towards business and governmental actors was also found. Therefore, opportunities for bottom-up initiatives for sustainable food consumption must be explored in the future. This could support in engaging the middle class of Vietnam in sustainable lifestyles. [ABSTRACT FROM AUTHOR]

Cities exist because of the productivity gains that arise from clustering production and workers, a process called agglomeration. How important is agglomeration for aggregate growth? This paper constructs a dynamic stochastic general equilibrium model of cities and uses it to estimate the effect of local agglomeration on aggregate growth. We combine aggregate time-series and city-level panel data to estimate the model's parameters via generalized method of moments. The estimates imply a statistically and economically significant impact of local agglomeration on the growth rate of per capita consumption, raising it by about 10%. [ABSTRACT FROM AUTHOR]

Post-development theorists have reminded us that 'development' is a cultural construct-a set of organising assumptions through which we order the world and understand our place in it. As such, notions of development are not singular but vary between different groups of people. This paper seeks to bring further nuance to these understandings. Drawing on ethnographic fieldwork on Siquijor Island in the Philippines, it explores contending ideals of the good life-one based on material accumulation, the other on austerity-at once valued by most residents. It shows that notions of development vary not only between groups but that individuals can simultaneously hold multiple ideals of development. Copyright © 2011 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper examines the implications of product market imperfection for a dynamic economy in a two-commodity and two-factor open economy model in which the home country produces a consumption good (capital good) in a perfectly competitive (monopolistic) market. Based on a social utility function of constant elasticity of substitution variety, excess demand for the goods, volume of trade, and patterns of specialization are analyzed vis-à-vis the standard case where the capital-good market is perfectly competitive. Further, it is shown that the presence of imperfect capital-good market structure does not preclude the possibility of long-run steady-state economic growth. [ABSTRACT FROM AUTHOR]

ABSTRACT Resistance to ritual practice and related consumption behavior has been under-researched in both marketing and consumer research, although it has significant implications for business and consumers. In this paper, the authors offer an explanation of attitudinal and behavioral resistance by reporting on the findings of a qualitative interpretative study of those self-identifying as high school prom resistors. Four types of resistance are posited, that is, identity-positioning resistors, identity-protecting resistors, emotional resistors, and apathetic resistors. Characteristics of the typology are developed and consequences of their behaviors discussed. Theoretical and managerial consequences are proposed. Understanding resistance to prom may lead to improved service provision, better targeting of communication messages (e.g., advertising), overcoming event dilution as well as generating positive word of mouth, and reducing consumer regret. This research expands the theoretical understanding of attitudinal and behavioral resistance by bringing new evidence as to the individual and social identity processes by which resistance develops. This study helps to better understand opposition to positional consumption as well as extending our understanding of why individuals resist consumption and related practice. Two new concepts are also identified and discussed, namely 'event dilution' and 'regret through resistance'. Managerial implications (contextual and for marketplace rituals) are posited. Copyright © 2013 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper applies recently developed heterogeneous non-linear and linear panel unit root tests that account for cross-sectional dependence to 24 OECD and 33 non-OECD countries' consumption-income ratios over the period 1951-2003. We apply a recently developed methodology that facilitates the use of panel tests to identify which individual cross-sectional units are stationary and which are non-stationary. We find that the majority (78 per cent) of the series are non-stationary with slightly fewer non-OECD countries' (74 per cent) series exhibiting a unit root than OECD countries (83 per cent). [ABSTRACT FROM AUTHOR]

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