Financial system, innovation and regional development: a study on the relationship between liquidity preference and innovation in Brazil

This paper discusses and assesses the features of the Brazilian Financial System, as well as the impacts of Liquidity Preference on Regional Development in Brazil. In the post-Keynesian literature, money is considered endogenous to the economic system, introduced in the economic activity through the credit provided by banks. Taken as non-neutral, banks are economic agents which can present lower or higher liquidity preference. Because of that, banks are also particularly important to the development process. Precisely, we tested the influence of credit and the role of banks in regional development. We estimate a panel across states in Brazil in order to test the impact of liquidity preference and other financial variables on Brazilian states’ number of patents, aiming at testing the importance of the bank system to technological progress and regional development. Conclusions confirm both hypotheses.Monetary System, National Innovation System, Credit, Brazil

Financial system, innovation and regional development: a study on the relationship between liquidity preference and innovation in Brazil

This paper discusses and assesses the features of the Brazilian Financial System, as well as the impacts of Liquidity Preference on Credit and Regional Development in Brazil. Precisely, we test the relationship between credit and development, and the role of banks in regional development. We estimate a panel across states in Brazil in order to test the impact of liquidity preference and other financial variables on Brazilian states credit level. We have also tested the relationship between liquidity preference and other financial variables across states and the number of patents, aiming at testing the importance of technology and innovation on regional development by means of bank system. Conclusions confirm both hypotheses.Monetary System, National Innovation System, Credit

Does unconscious bias effect higher ed hiring?

Nobody wants to be called a racist or a misogynist. Most people think that they are not. However, we are constantly making decisions that are influenced by unconscious biases. Unconscious biases are defined as social stereo- types that are formed about certain groups of people by individuals from outside their own conscious awareness. Psychologists agree that everyone holds unconscious beliefs about various social and identity groups, and that these biases stem from one’s tenden- cy to organize social worlds by categorizing

Declining financial support drives students away.

Cutting taxes in order to spur economic development is an idea still making its way around the political landscape. It doesn’t seem to matter how many times “trickle down” economics has been debunked not only by economists, but also by history, it seems to linger. Yet, this is part of an ideology that is considered as gospel by many politicians. Of course the idea has one superficial appeal and one superficial appeal only. It promises to cut taxes, even if the ones who benefit the most from such policies are the ones who need them the least

The higher purpose of higher education is real

In the last few months we have witnessed a number of political debates that have become part of the national discussion on issues such as healthcare, immigration, infrastructure, freedom of speech, the media and truth itself. What is the connection between these topics and higher education? It is much more obvious than you might think. National progress – economic, social and individual – depends on winning these debates. Social Security, Medicare, Medicaid, large parts of the nation’s transportation system, as well as the public higher education system, have all been heavily funded by the federal government through taxation. The rationale for this funding is that all of these programs and institutions provide services for the common good. The government has developed legislation that set the parameters under which they operate and are funded

Trade wars are bad for higher ed

In the last few weeks we have heard a lot about trade wars (taking place or looming) between the U.S. and virtually every economically important nation in the world. This is surprising in today’s world where the tendency has been over the past few decades to eliminate trade barriers. Mainstream economists have pointed out for years the benefits of free trade: international economic growth, improved financial performance of investments, lowered business risks, more competition that lowers prices while increasing choices for the consumers, and diversification of revenues. Although there are some risks associated with free trade, such as the environmental and labor abuses that accompanied free trade agreements such as NAFTA (North American Free Trade Agreement), but they have usually incorporated side agreements, such as the creation of the Commission for Environmental Cooperation, to deal with that type of issues