Heterogeneous mark-ups, growth and endogenous misallocation

The recent work on misallocation argues that aggregate productivity in poor countries is low because various market frictions prevent marginal products from being equalized. By focusing on such allocative inefficiencies, misallocation is construed as a purely static phenomenon. This paper argues that misallocation also has dynamic consequences because it interacts with firms’ innovation and entry decisions, which determine the economy’s growth rate. To study this link between misallocation and growth, I construct a tractable endogenous growth model with heterogeneous firms, where misallocation stems from imperfectly competitive output markets. The model has an analytical solution and hence makes precise predictions about the relationship between growth, misallocation and welfare. It stresses the importance of entry. An increase in entry reduces misallocation by fostering competition. If entry also increases the economy-wide growth rate, static misallocation and growth are negatively correlated. The welfare consequences of misallocation might therefore be much larger once these dynamic considerations are taken into account. Using firm-level panel data from Indonesia, I present reduced form evidence for the importance of imperfect output market and calibrate the structural parameters. A policy, which reduces existing entry barriers, increases growth and reduces misallocation. The dynamic growth effects are more than four times as large as their static counterpart

Philosophy, globalization and the future of the university: A conversation between Sharon Rider and Michael A. Peters

Sharon Rider is Professor of Logic and Metaphysics at the Department of Philosophy at Uppsala University. She is currently Vice Dean for the Faculty of Arts and Director for Higher Education Studies at the Center for Science and Technology Studies. She studied Philosophy at Pennsylvania State University, the University of Louvain and Uppsala University, and has taught as Visiting Professor at Åbo Academy and Turku University (Finland) and Gävle University College (Sweden)

"Internet universality": Human rights and principles for the internet

This paper details proposals by UNESCO to manufacture and draft a concept of “Internet Universality” that adopts a human-rights framework as a basis for articulating a set of principles and rights for the Internet. The paper discusses various drafts of this concept before examining the Charter of Human Rights and Principles for the Internet put forward by The Internet Rights & Principles Dynamic Coalition based at the UN Internet Governance Forum, and the working law Marco Civil da Internet introduced by Brazil

Managerialism and the neoliberal university: Prospects for new forms of "open management" in higher education

The restructuring of state education systems in many OECD countries during the last two decades has involved a significant shift away from an emphasis on administration and policy to an emphasis on management. The "new managerialism" has drawn theoretically, on the one hand, on the model of corporate managerialism and private sector management styles, and, on public choice theory and new institutional economics (NIE), most notably, agency theory and transaction cost analysis, on the other. A specific constellation of these theories is sometimes called "New Public Management," which has been very influential in the United Kingdom, Australia, Canada and New Zealand. These theories and models have been used both as the legitimation for policies that redesigning state educational bureaucracies, educational institutions and even the public policy process. Most importantly, there has been a decentralization of management control away from the center to the individual institution through a "new contractualism" - often referred to as the "doctrine of self-management" - coupled with new accountability and competitive funding regimes. This shift has often been accompanied by a disaggregation of large state bureaucracies into autonomous agencies, a clarification of organizational objectives, and a separation between policy advice and policy implementation functions, together with a privatization of service and support functions through "contracting out". The "new managerialism" has also involved a shift from input controls to quantifiable output measures and performance targets, along with an emphasis on short-term performance contracts, especially for CEOs and senior managers. In the interests of so-called "productive efficiency," the provision of educational serviceshas been made contestable; and, in the interests of so-called allocative efficiency state education has been progressively marketized and privatized. In this paper I analyze the main underlying elements of this theoretical development that led to the establishment of the neoliberal university in the 1980s and 1990s before entertaining and reviewing claims that new public management is dead. At the end of the paper I focus on proposals for new forms of "the public" in higher education as a means of promoting "radical openness" consonant with the development of Web 2.0 technologies and new research infrastructures in the global knowledge economy

Citizenship, democracy and social justice: A conversation with Maria Olson

Maria Olson is a researcher and lecturer in Education at Stockholm University and the University of Skövde, Sweden. Her areas of interest include democracy and citizenship in relation to education. Her major fields are educational theory and educational philosophy. Her current publications include most recently a series of papers that develop themes of citizenship, democracy and social justice, including: “Citizenship Education without Citizenship? The Migrant in EU Policy on Participatory Citizenship – Toward the Margin through ‘Strangification,’” in R. Hedke and T. Zimenkova (eds.), Education for Civic and Political Participation: A Critical Approach (pp. 155–170). London: Routledge, 2012; “Citizenship ‘in Between’: The Local and the Global Scope of European Citizenship in Swedish Educational Policy,” in S. Goncales and M. A. Carpenter (eds.), Intercultural Policies and Education (pp. 193–203). New York: Peter Lang, 2012; “The European ‘We’: From Citizenship Policy to the Role of Education,” Studies in Philosophy and Education 31(1), 77–89, 2012; “Opening Discourses of Citizenship Education: Theorizing with Foucault” (with Nicoll, K., Fejes, A., Dahlstedt, M. & Biesta, G. J. J.), Journal of Education Policy, 2013 (forthcoming); “Democracy Lessons in Market-oriented Schools: The Case of Swedish Upper Secondary Education,” Education, Citizenship and Social Justice, online first, Doi: 10.1177/17461979134836842013 (with Lundahl, Lisbeth), 2013; “What Counts as Young People’s Civic Engagement in Times of Accountability? On the Importance of Maintaining Openness about Young People’s Civic Engagement in Education,” in M. Olson (ed.), Theme: Citizenship Education under Liberal Democracy. Utbildning & Demokrati [Education & Democracy] 21(1), 29–55, 2012

The last post? Post-postmodernism and the linguistic u-turn

This paper adopts an autobiographical tone to review the linguistic turn and its demise at the hands Richard Rorty. Rorty, along with Continental philosophers like Lyotard rescued us from a philosophical delusion that we might achieve a neutral analysis resulting in linguistic and conceptual hygiene. This view became the basis of a highly influential doctrine in philosophy of education during the 1970s under R. S. Peters and the London school. I review the Wittgensteininspired movement and its conceptual affinities with postpositivism, postmodernism and postcoloniality as the dominating motifs of the age we have now passed beyond. © Michael A. Peters.This paper adopts an autobiographical tone to review the linguistic turn and its demise at the hands Richard Rorty. Rorty, along with Continental philosophers like Lyotard rescued us from a philosophical delusion that we might achieve a neutral analysis resulting in linguistic and conceptual hygiene. This view became the basis of a highly influential doctrine in philosophy of education during the 1970s under R. S. Peters and the London school. I review the Wittgenstein inspired movement and its conceptual affinities with postpositivism, postmodernism and postcoloniality as the dominating motifs of the age we have now passed beyond

On the Revelation Principle and Reciprocal Mechanisms in Competing Mechanism Games

This paper provides a set of mechanisms that we refer to as emph{reciprocal mechanisms. }These mechanisms have the property that every outcome that can be supported as a Bayesian equilibrium in a competing mechanism game can be supported as an equilibrium in reciprocal mechanisms. In this sense, reciprocal mechanisms play the same role as direct mechanisms do in single principal problems. The advantage of these mechanisms over alternatives like the universal set of mechanisms is that they are conceptually straightforward and no more difficult to deal with than the simple direct mechanisms used in single principal mechanism design.competing mechanisms, revelation principle

Non-cooperative foundations of hedonic equilibrium

This paper studies Bayesian equilibrium in a worker firm matching problem in which workers choose their human capi- tal investment and firms choose wages before the matching process occurs. Symmetric equilibrium exists, and supports assortative matching. However, when the number of traders is large, low types tend to invest too much, while higher types invest in a way that is bilaterally efficient. In this sense the upper end of the market be- haves in a manner that is similar to the way they would behave in a competitive (hedonic) equilibrium. The lower end of the market, however, does not. All types end up investing more and being paid higher wages than they are in a simple hedonic equilibrium. In the limit, the Bayesian game supports and outcome that looks like a Truncated Hedonic Equilibrium as described in Peters (2006).bayesian equilibrium, pre-match investment, assortative matching

Innis Lecture: Hedonic Equilibrium

This paper describes hedonic equilibrium and shows how and why the concept has to be modified when characteristics of traders on both sides of the market are endogenous.hedonic, matching, ex ante investment