The Size Distribution of Farms and International Productivity Differences

There is a 34-fold difference in average farm size (land per farm) between rich and poor countries and striking differences in their size distributions. Since labor productivity is much higher in large relative to small farms, we study the determinants of farm-size differences across countries and their impact on agricultural and aggregate productivity. We develop a quantitative model of agriculture and non-agriculture that features a non-degenerate size distribution of farms. We find that measured aggregate factors such as capital, land, and economy-wide productivity cannot account for more than 1/4 of the observed differences in farm size and productivity. We argue that, among the possible explanations, farm-level policies that misallocate resources from large to small farms have the most potential to account for the remaining differences. Such farm-size distortions are prevalent in poor countries. We quantify the effects of two specific policies in developing countries: (a) a land reform that imposes a ceiling on farm size and (b) a progressive land tax. We find that each individual policy generates a reduction of 3 to 7% in average size and productivity.aggregate productivity, agriculture, farm-size distortions, misallocation

Relative Stagnation alla Turca

Turkey is the only founding member of the OECD that has not converged to the US in terms of per-capita GDP since 1950: its real GDP per capita is stuck at 20% of that of the US. At a proximate level, we show that Turkey's relative stagnation over the past 50 years is due to: (1) the relative decline in its labor force participation, and (2) the relative stagnation of its TFP. We argue that the first fact is due to policies of high personal income taxation, and high social security contributions for both employees and employers. The second fact we argue is due to price support policies in agriculture, which distorted the allocation of resources in favor of agriculture, thereby delayed the process of the structural transformation. We develop a dynamic general equilibrium model with agricultural and non-agricultural sectors. The production of the non-agricultural good can take place in the market or the household sector. We show the extent to which these policies can account quantitatively for Turkey's relative stagnationRelative Stagnation, Labor Force Participation, Income Taxes

Tourism development and economic growth : a comparative study for the G-6 leaders

Purpose: The paper investigates the relationship between tourism development and economic growth for the six richest countries globally for the period 1995-2017 by estimating a simultaneous system equations model. The purpose of this paper is to examine the long-run relationship between these variables by the use of the two-stage least squared methodology. Design/Methodology/Approach: A structural system equation model is estimated for the G-6 leader countries and then we apply a Monte Carlo simulation method, in order to find out the predictive ability of the equation model. Findings: The results of this study indicated that there is a positive relationship between tourism development and economic growth taking into account the negative effect of interest rates and the positive effect of investments, trade openness, and consumption on economic growth. Practical Implications: The group of six leader countries is a group consisting of Canada, France, Germany, Italy, United Kingdom, and USA regarded as the most industrialized countries in the world. Originality/Value: The study offers an in-depth insight into econometric modelling of economic growth.peer-reviewe

Financial development and economic growth : a revised empirical study for Ireland

This study is a revised empirical research examining the relationship between financial development and economic growth for Ireland for the period 1965-2011. The objective of this study is to examine the long-run relationship between financial development and economic growth taking into account the positive effect of industrial production index. For this purpose usual classical econometric methods are adopted. A vector error correction model is estimated based on Johansen cointegration analysis and stationarity tests. Finally, Granger causality method is applied in order to define the direction of causality between the examined variables. The empirical results indicated that there is a bilateral causal relationship between economic growth and industrial production, while there is a unidirectional causality between economic growth and credit market development. Also, stock market development causes economic growth and industrial production. Therefore, it can be inferred that stock market development has a direct causal effect on economic growth taking into account the positive effect of industrial production growth on economic growth for Ireland.peer-reviewe

Statistical analysis op earthquake data

The Statistical properties of earthquake data from 14 different areas have been studied by considering the earthquake occurrence as a one-dimensional stationary point process. A review of the main properties of the Point processes is given and some counting and interval properties of the mutually exciting processes are derived. As a result of an exploratory analysis the Poisson and renewal models are not found adequate to describe the earthquake occurrence and any kind of periodicity is not well established. The Meymann-Scott model with mixed exponential decay is found more suitable than the one with single exponential for describing the earthquake occurrence. The fit of the mutually exciting process is as satisfactory as the fit of the Weymann-Scott with mixed exponential from the spectral analysis viewpoint but not from the viewpoint of the interval analysis. As a result of the interval analysis a four-variate mutually exciting process is proposed for describing the earthquake occurrence, which also takes into account the differences according to depth. Finally an attempt to classify the areas under investigation is made and some ideas about the study of the earthquake phenomenon as a multidimensional point process are put forward

Delusions of Divinity or Political Realism? Understanding the Divine Right Kingship of King James VI and I, and 16th Century Political Thought Regarding Temporal Power

King James VI and I has always been a controversial figure. The question of whether his reign was inferentially beneficial or detrimental for the countries he reigned over, is still present, but what can be stated beyond doubt is that the monarch’s decisions have always been associated with the ideas of the Divine Right of Kings, to a lesser or a greater extent, and that is the starting point, given that many questions arise, regarding it. It is undeniable that King James had a complex and deep personality, one that we need to analyze in depth in order to extract conclusions as to the degree of influence of his ideology on his politics. Therefore, did James’s ideology dictate his course of action, or maybe the difficulties he had to face in order to achieve his goals forced his hand? In order to address this, it is essential to focus almost exclusively on events that preceded James’s ascension to the English throne. There is also a series of questions related to the aforementioned subject: What were the origins of the association of monarchy with divinity? What were the contradicting perceptions and views of monarchy in the sixteenth century regarding its origin, legitimacy and most importantly, its limitations? What was, and what should, be the position of temporal power within society and what was its relationship with spiritual power? How did long-standing concepts of royal power affect sixteenth century theories? An investigation of these issues, leads to the second group of questions, focused on the divine right of kings itself. Was James’s doctrine, arguably articulated most fully in his treatises, a product of vanity? Perhaps a by-product of his religious upbringing and his obsession with protestant beliefs combined with his knowledge of history and the various examples he used as points of reference? Maybe a way to justify the policies he introduced? A defense mechanism against what he regarded as threats? Regardless, James’s theory of monarchy, as it was formulated during the first part of his life and specifically during the last decade of the sixteenth century, undoubtedly foreshadowed the controversy and subsequent turmoil that would occur not only during his reign but also after his death. The latter due to the assumption that the events that unfolded in Charles’ time half a century later were a result of the so-called divine right absolutism of the Stuarts, the foundations of which were supposedly laid by James

From Homer to the 21st Century: Charting the Emergence of the Structure of Interpersonal Meaning

During the last quarter of the 20th century, cross-cultural research established that the meaning of interpersonal behavior can be described in terms of a universal structure that includes, among others, the notions of association (affiliation), superordination (dominance), and intimacy. While researchers generally agree on most of these universal dimensions, little is known about their origins –the whys and the wherefores of these structures. An approach designed to explain the emergence of the meaning of interpersonal behavior is the focus of this chapter. This approach is based on the assumption that social behavior involves the exchange of material and psychological resources, a process guided by a number of natural constraints operating on human interaction. The chapter outlines this theoretical system and discusses the emergence of the primary features of meaning over long periods of time. It reviews formal analyses of information gleaned from literary documents of different historical periods and cultures, including the works of Homer, Hesiod, and Theophrastus, as well as other sources (e.g., medieval European literature). It concludes with a discussion of how this approach can account for various social-psychological phenomena and can lead to the development of a useful theory of culture for psychology