The Age of Diminished Expectations: U.S. Economic Policy in the 1990s

Rivlin, Alice M.; Krugman, Paúl; Penner, Rudolph G.

doi:10.2307/3325374

Cited by 9 publications

(11 citation statements)

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“…Moreover, we also analyze the mechanisms involved, which not only helps us to understand the problem but also provides a factual basis for how to solve the problem. Third, the existing literature on city level and TFP studies has mostly focused on short-term effects, but as Krugman stated, productivity is noteverything, but in the long run, it is almost everything [6]. Therefore, this paper provides an important addition and useful extension to the existing literature by showing the long-term effect.…”

Section: Introductionmentioning

confidence: 89%

Political Hierarchy and Long-Term Effects on TFP: Evidence from a Provincial Elevation in China

Yang

2023

Sustainability

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This paper examines the effects of political hierarchy on firms’ long-term total factor productivity using evidence from the elevation of Chongqing to provincial-level government in China. Using the elevation as an exogenous shock and the Sichuan-Chongqing border as a dividing line, we utilized the spatial regression discontinuity approach to identify the causal link. We found that before Chongqing’s elevation to a provincial-level municipality, the TFP of Chongqing firms was not significantly different from that of Sichuan firms, but after the elevation, the TFP of Chongqing firms near the border was significantly lower than that of Sichuan firms. The mechanism analysis shows that the land transaction price in Chongqing is significantly lower than that in Sichuan Province, which leads to an abundance of low-productivity firms and the “crowding out” of high-productivity firms. We also found that government intervention in Chongqing exacerbates the degree of resource misallocation at the firm level, which together lead to a decline in firm TFP.

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Section: Introductionmentioning

confidence: 89%

Political Hierarchy and Long-Term Effects on TFP: Evidence from a Provincial Elevation in China

Yang

2023

Sustainability

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“…Lowering commuting costs induces people to leave over-populated areas, likely reducing adverse agglomeration effects in a set of neighbors and boosting output per worker in a typical city. As the output per worker is the primary determinant of the per capita income in the long run (Krugman, 1997), the data suggest likely a new indirect source of alleviating poverty.…”

Section: Poverty Responsementioning

confidence: 97%

“…Brazilian data show that labor productivity has stagnated in the last four decades of economic policy, preventing the Brazilian per capita income from getting closer to developed countries. In a recent contribution, Costa and Marcolino (2021) present empirical findings showing that output per worker in Brazil has grown at a rate of 4.04% over the period 1950-1980 and only 0.16% in 1980-2010. In the long run, the output per worker is the primary source of per capita income growth (Krugman, 1997). In turn, as this study documents, per capita income growth is still an important driver of poverty reduction in many circumstances and places (Krugman, 1997;World Bank, 2018, World Bank, 2020ILO, 2003) [2].…”

Section: Introductionmentioning

confidence: 99%

Poverty, population growth and agglomeration effects in all Brazil cities

M. Marques

2023

ECON

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PurposeThis paper aims to test three hypotheses in city growth literature documenting the poverty reduction observed in Brazil and exploring a rich spatial dataset for 5,564 Brazilian cities observed between 1991 and 2010. The large sample and the author's improved econometric methods allows one to better understand and measure how important income growth is for poverty reduction, the patterns of agglomeration and population growth in all Brazilian cities.Design/methodology/approachThe author identifies literature gaps and use a sizeable spatial dataset for 5,564 Brazilian cities observed in 1991, 2000 and 2010 applying instrumental variables methods. The bias-corrected accelerated bootstrap percentile interval supports the author's point estimates.FindingsThis manuscript finds that Brazilian data for cities does not support Gibrat's law, raising the scope for urban planning and associated policies. Second, economic growth on a sustainable basis is still a vital source of poverty reduction (The author estimates the poverty elasticity at four percentage points). Lastly, agglomeration effects positively affect the city's productivity, while negative externalities underlie the city's development patterns.Originality/valueData for cities in Brazil possess unique characteristics such as spatial autocorrelation and endogeneity. Applying proper methods to find more reliable answers to the above three questions is a desirable procedure that must be encouraged. As the author points out in the manuscript, dealing with endogenous regressors in regional economics is still a developing matter that regional scientists could more generally apply to many regional issues.

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“…Productivity indicates the amount of output produced from a certain amount of inputs. Paul Krugman (1992) famously asserted that "productivity is not everything, but in the long run, it's almost everything". The enhancement of productivity is essential for there to be sustainable enterprises and decent jobs -both core elements of any development strategy whose main objective is the improvement of people's lives (ILO 2020a).…”

Section: Productivity Trends Across the Globe And Structural Shiftsmentioning

confidence: 99%

3 Global productivity trends: Reviving growth through the digital economy?

Samaan¹,

Martinez²

2023

World Employ Soc Outlook

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This Chapter provides an overview of the current state of productivity growth across regions of the world. It showcases the generalized nature of the global productivity slowdown and the close relationship between productivity and various social justice indicators. It explores some of the drivers behind the observed stagnation, including labour market factors. Finally, a number of policy messages stemming from the analyses presented are provided.

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The Age of Diminished Expectations: U.S. Economic Policy in the 1990s

Cited by 9 publications

References 0 publications

Political Hierarchy and Long-Term Effects on TFP: Evidence from a Provincial Elevation in China

Political Hierarchy and Long-Term Effects on TFP: Evidence from a Provincial Elevation in China

Poverty, population growth and agglomeration effects in all Brazil cities

3 Global productivity trends: Reviving growth through the digital economy?

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