The evolution of aggregate stock ownership : [Version December 2010]

Since World War II, direct stock ownership by households has largely been replaced by indirect stock ownership by financial institutions. We argue that tax policy is the driving force. Using long time-series from eight countries, we show that the fraction of household ownership decreases with measures of the tax benefits of holding stocks inside a pension plan. This finding is important for policy considerations on effective taxation and for financial economics research on the long-term effects of taxation on corporate finance and asset prices. JEL Classification: G10, G20, H22, H30 Keywords: Capital Gains Tax, Income Tax, Stock Ownership, Bond Ownership, Inflation, Bracket Creep, Pension Fund

Explaining Anglo-German productivity differences in services since 1870

Germany overtook Britain in comparative productivity levels for the whole economy primarily as a result of trends in services rather than trends in industry. Britain's productivity lead in services before World War II reflected external economies of scale in a highly urbanised economy with an international orientation. Low productivity in Germany reflected the underdevelopment of services in an economy that was slow to move out of agriculture. As German agricultural employment contracted sharply from the 1950s, catching-up occurred in services. This was aided by a sharp increase in human and physical capital accumulation, underpinned by the institutional framework of the postwar settlement

Tibor Barna: the redistributive impact of taxes and social policies in the UK 1937-2005

Regular annual studies made by the Office of National Statistics in the UK are intended to show how far taxing household incomes and giving benefits in cash and kind to households redistributes income from rich to poor. The first attempt to do this in the UK was made by Tibor Barna for the year 1937. Subsequently his approach has been replicated and elaborated. This study reworks and compares data from various studies to see how the scale and nature of the state’s redistributive role has changed over the past seventy years. Differences in methods and data make comparisons difficult but some broad conclusions can be drawn. Some methodological issues are also discussed on the question of how to approach household equivalisation when services in kind are treated as income

The demand for military expenditure in authoritarian regimes

We investigate how the influence of the military differs across authoritarian regimes and verify whether there are actually systematic differences in military expenditures amongst different forms of dictatorships. We argue that public choices in autocracies result from a struggle for power between the leader and the elite. Elites matter because they control the fates of dictators, since most dictators are overthrown by members of their inner circle. Both actors want to ensure their continued political influence through a favourable allocation of the government budget. Moreover, the control over the security forces gives access to troops and weaponry, and affects the ease with which elites can unseat dictators. Autocratic rulers employ different bundles of co-option and repression for staying in power, and thus differ in the extent that they are required to buy off the military. Therefore, the institutional makeup of dictatorships affects the nature of leader-elite interaction, and in turn the share of the government budget allocated to military spending. Drawing on a new data set that sorts dictatorships into 5 categories from 1960 to 2000, our empirical results suggest that while military and personalist regimes have respectively the highest and lowest level of military spending among authoritarian regimes, monarchies and single-party regimes display intermediate patterns of spending

Behavioral and Network Origins of Wealth Inequality: Insights from a Virtual World

Almost universally, wealth is not distributed uniformly within societies or economies. Even though wealth data have been collected in various forms for centuries, the origins for the observed wealth-disparity and social inequality are not yet fully understood. Especially the impact and connections of human behavior on wealth could so far not be inferred from data. Here we study wealth data from the virtual economy of the massive multiplayer online game (MMOG) Pardus. This data not only contains every player's wealth at every point in time, but also all actions of every player over a timespan of almost a decade. We find that wealth distributions in the virtual world are very similar to those in western countries. In particular we find an approximate exponential for low wealth and a power-law tail. The Gini index is found to be $g=0.65$, which is close to the indices of many Western countries. We find that wealth-increase rates depend on the time when players entered the game. Players that entered the game early on tend to have remarkably higher wealth-increase rates than those who joined later. Studying the players' positions within their social networks, we find that the local position in the trade network is most relevant for wealth. Wealthy people have high in- and out-degree in the trade network, relatively low nearest-neighbor degree and a low clustering coefficient. Wealthy players have many mutual friendships and are socially well respected by others, but spend more time on business than on socializing. We find that players that are not organized within social groups with at least three members are significantly poorer on average. We observe that high `political' status and high wealth go hand in hand. Wealthy players have few personal enemies, but show animosity towards players that behave as public enemies.Comment: 22 pages, 8 figures, 8 pages S

John Maynard Keynes, man or myth? The incident of the Spanish pesetas

John Maynard Keynes was and still is one of the world’s most famous economists. One of the most fascinating stories about Keynes appeared in his obituary in the 1946 Proceedings of the British Academy. The story stated that during World War I with minimal financial resources Keynes broke the Spanish-British foreign exchange market, a manipulation that is illegal today. This research investigates if the story is myth or truth. Archival materials suggest Keynes did manipulate this foreign exchange market in April of 1918 and he potentially earned £8 million on his trades.First author draf

2. Economics

The study of the way in which man makes a living — a short definition of economics — or of how he makes use of limited resources to satisfy unlimited wants -- another definition — has been traced in this work from Aristotle through the Middle Ages and mercantilism to the nineteenth century, when the classicists and their numerous critics, under the influence of industrialization and the intellectual trends of the day, created a large body of economic thought. In Chapter XIV we saw how, at the end of the century, Alfred Marshall (1842-1924) attempted to reformulate classical theory to bring it up to date. He was aware of the criticism that what the classicists had produced was a science of wealth which was not at all a science of welfare. This, many of them had insisted, was their true purpose, to limit themselves to treating what is to the exclusion of what ought to be. [excerpt

Peace education, militarism and neo-liberalism: conceptual reflections with empirical findings from the UK

This article explores ‘peace days’ in English schools as a form of peace education. From a historical overview of academic discussions on peace education in the US and Great Britain since the First World War, we identify three key factors important for peace education: the political context, the place in which peace days occur and pedagogical imperatives of providing a certain narrative of the sources of violence in politics. Although contemporary militarism and neoliberalism reduce the terrains for peace studies in English schools, peace days allow teachers to carve out spaces for peace education. Peace days in Benfield School, Newcastle and Comberton Village College, Cambridgeshire, are considered as case studies. We conclude with reflections on the opportunities and limitations of this approach to peace education, and on how peace educators and activists could enlarge its reach

The price of admission: football players' sacrificial conceptions of career and health through metaphors of war, religion, and family

textWith the recent discovery of traumatic brain injuries developing in retired professional football players, this study seeks to explore players’ perceptions of their careers in the sport, and how this may reflect notions of personal health over the long-term. Current and former football players, athletic staff, and other members of the football community were interviewed with the goal of learning about the full trajectory of a football career. Using grounded metaphorical analysis to examine the interview data, our study found the use of metaphor by participants to be integral in players’ descriptions of their careers. Participants likened aspects of their careers to enduring a war, having a religious experience, and being part of a family unit. Long-term, post-career health implications are discussed in relation to players’ conceiving of their experiences through these metaphors, along with limitations of the study and directions for future research.Communication Studie