Is the great decoupling real?

The great decoupling is real. Productivity and employment/wages link changed after 1980 in many countries, not just the U.S. This study investigates the productivity and employment/wages link (1950–2014) looking for empirical proof of the “great decoupling” put forward by Brynjolfsson and Mcafee (2013). The results should stimulate policymakers to openly question why real wages and productivity don’t line up with the theory. We use the Hodrick and Prescott (1997) filter to isolate trends in real wages, labor share in GDP, and labor productivity and rolling correlation to explore if the great decoupling is real. We have found that the great decoupling i.e. The divergence between real wages/employment and productivity is present in all countries (10 in the sample). The dynamics of the great decoupling are however different between the countries although year 1980 seems to be a dominant breaking point for the start of the phenomena. This paper provides multicounty empirical proof of the presence of the great decoupling phenomena and explores its dynamics over 1950–2014. Policy makers as well as firms and unions should take the existence of this phenomena seriously since it can have significant consequences on economic growth and labor markets’ functioning

LJUDSKI KAPITAL KAO IZVOR RASTA - MIT ILI STVARNOST

Članak istražuje da li se ekonomski rast zemlje odnosi na promjene zaliha ljudskog kapitala osnovane na teoriji modela endogenoga rasta. Rezultati dobiveni analizom dostignute stope rasta u Hrvatskoj za razdoblje 1952.-1990. bazirani na podacima Državnog zavoda za statistiku ukazuju da ulaganja u obrazovanje imaju jak pozitivan utjecaj na ekonomski rast zemlje. Što je još važnije, ulaganja u osnovna sredstva (ljudski kapital) i rad, u negativnom su odnosu prema povratu proizvodnje. Kroz ekonometrijski model endogenog rasta dokazali smo da ljudski kapital jako utječe na ekonomski rast zemlje. Članak daje dva dodatna uvida koja bi trebala biti korisna u budućem istraživanjuekonomskog rasta, dokazujući da ljudski kapital pozitivno i jako utječe (najveći utjecaj) na ekonomski rast u usporedbi s tradicionalnim faktorima rasta

A non-linear analysis of Gibson's paradox in the Netherlands, 1800-2012

This paper adopts a multivariate, non-linear framework to analyse Gibson’s paradox in the Netherlands over the period 1800-2012. Specifically, SSA (singular spectrum) and MSSA (multichannel singular spectrum) techniques are used. It is shown that changes in monetary policy regimes or volatility in the price of gold by themselves cannot account for the behaviour of government bond yields and prices in the Netherlands over the last 200 years. However, the inclusion of changes in the real rate of return on capital, M1, primary credit rate, expected inflation, and money purchasing power enables a nonlinear model to account for a sizeable percentage of the total variance of Dutch bond yields

Employment Growth, Inflation and Output Growth: Was Phillips Right? Evidence from a Dynamic Panel

In this paper we analyse the short- and long-run relationship between employment growth, inflation and output growth in Phillips’ tradition. For this purpose we apply FMOLS, DOLS, PMGE, MGE, DFE, and VECM methods to a nonstationary heterogeneous dynamic panel including annual data for 119 countries over the period 1970-2010, and also carry out multivariate Granger causality tests. The empirical results strongly support the existence of a single cointegrating relationship between employment growth, inflation and output growth with bidirectional causality between employment growth and inflation as well as output growth, giving support to Phillips’ Golden Triangle theory.employment growth, inflation, output growth, Golden Triangle theory

MONUMENT ANNUITY AS ECONOMIC INSTRUMENT – FROM THEORY TO CROATIAN PRACTICE

An annuity is a payment for the use of a fixed resource, such as land, natural resources or in our case a cultural monument. The theory of annuities has been developed by numerous economic theorists, primarily examining land annuities, amongst them W. Petty, A. Smith, D. Ricardo, T. R. Malthus, K. Marx, P. A. Samuelson and others. Monument annuity, therefore, represents an irreplaceable economic instrument through which the economic value of the monument is asserted on the market. Through its functions the annuity enables the management of protected built heritage as well as the realization of the most important objective of protection, and that is not only the preservation of the monument value of built heritage but also the "wise use" of built heritage in economic development

MODEL OPĆE RAVNOTEŽE REPUBLIKE HRVATSKE

Computable General Equlibrium models or CGE models, are one of the most useful models in a global development planning and macroeconomic analysis. CGE models are discovered in 1960., but there was no major development until 1978. These models have become a standard tool of empirical economic analysis. These models dominate in major part of applied econometric analysis, which is involved on problem solving in economic development and local economic policies. They are inevitable tools for analysis in international trade and government planning, changes in oil markets, and at the same time they are used in the analysis in tax reforms, welfare distributions, and even in the analysis of global warming. From that it concludes that uses of CGE models are very wide-spread. In the last few years, improvements in a specification of the model, availability of data and development in computer technology results in increased efficiency and reduced cost of analysis, which is based on CGE models. CGE models are most commonly used for analysis in countries that are in transition, but basic framework and specification of a model can be used from global to the local level.Computable General Equilibrium modeli ili CGE modeli, odnosno modeli opće ravnoteže su jedni od najkorištenijih modela u globalnom razvojnom planiranju i makroekonomskoj analizi. CGE modeli su otkriveni 1960. godine, međutim do njihovog većeg razvoja došlo je tek nakon 1978. godine. Ti modeli dominiraju u velikom dijelu primjenjivih ekonometrijskih analiza koje se bave problemima ekonomskog razvoja i lokalne ekonomske politike. Oni su neizbježni alati za analizu u međunarodnoj razmjeni i državnom planiranju, previranja na tržištu nafte, a ujedno su i korišteni u analizama porezne reforme, distribuciji blagostanja, te u zadnje vrijeme čak i utjecaja globalnog zagrijavanja. Iz toga vidimo da je vrlo raširena primjena CGE modela. U nekoliko posljednjih godina, napredak u specifikaciji modela, dostupnosti podataka i računalnoj tehnologiji je povećao isplativost i smanjio troškove analiza koje su se temeljile na CGE modelima, što je postavilo preduvjete za sve masovniju i rašireniju upotrebu samih modela. Iako su se CGE modeli najčešće upotrebljavali kod analiza za zemlje u razvoju, osnovni okvir i obilježja modela se mogu primjenjivati i korišteni su od svjetske razine do razine pojedine države, regije, sela ili čak pojedinog kućanstva

CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE FINANCIAL PERFORMANCE – IS THERE A LINK?

The “business as usual” model is no longer possible. Globalization, technological and demographical changes have lead to the change in the internal organization structures, processes and behaviour. Environmental, social and governance issues are becoming extremely powerful means of gaining competitive advantage on the global market. The purpose of the paper is to underline the importance of socially responsible business practices for the corporation. In order to emphasize the importance of socially responsible behaviour with regards to financial performance, the research was enriched with of the comparative analysis of the financial performances of 45 corporations listed on Dow Jones Sustainability World Index 2009/2010 that represent the top 10% of the leading sustainability companies out of the biggest 2500 companies in the Dow Jones Global Total Stock Market Index compared with non CSR corporations – not listed on DJSWI. Authors are presenting results of the econometric model which further confirmed that CSR firms in the average enjoy better financial performance that non-CSR firms

How important are CSR companies for nations’ growth?

The paper provides new empirical evidence on the positive link between corporate social responsibility and income growth. Using available data for 26 countries over 2000–2008 we investigate cross-country growth differences by adding new variable (corporate social responsibility) to the standard growth regression model. We show that corporate social responsibility impact on growth is statistically significant but limited in size. Moreover, the inclusion of corporate social responsibility variable improves the fit of the regression. Countries with higher corporate social responsibility penetration as India achieve higher income growth rates. Evidence of the positive link between corporate social responsibility presented in this study encourage but further research on mechanism how socially responsible behavior affects growth is necessary

MONUMENT ANNUITY AS ECONOMIC INSTRUMENT – FROM THEORY TO CROATIAN PRACTICE

An annuity is a payment for the use of a fixed resource, such as land, natural resources or in our case a cultural monument. The theory of annuities has been developed by numerous economic theorists, primarily examining land annuities, amongst them W. Petty, A. Smith, D. Ricardo, T. R. Malthus, K. Marx, P. A. Samuelson and others. Monument annuity, therefore, represents an irreplaceable economic instrument through which the economic value of the monument is asserted on the market. Through its functions the annuity enables the management of protected built heritage as well as the realization of the most important objective of protection, and that is not only the preservation of the monument value of built heritage but also the "wise use" of built heritage in economic development

Gibson paradox revisited – liquidity chain effect

Gibson paradox remains a puzzle in the discipline of economics. Previous studies attempted to resolve the paradox looking separately at the gold standard, changing monetary regimes, inflation expectations, risk and uncertainty. Our study shows Gibson paradox holds for the Netherlands 1800-2012 with real long interest rates and prices diverging after 2008. This paper offers empirical evidence (nonlinear cointegration) on the integrity of the Gibson paradox. Single factor cannot explain the paradox itself (because of its nonlinear nature) as previous studies attempted. Empirical link between long interest rates and prices is caused by complex interaction between purchasing power, liquidity, gold prices, market turnover, stocks accumulation, productivity, short-term interest rates. This approach analysis the purchasing power and price relation, resulting in firms’ turnover and liquidity shifts, leading to short-term borrowings changes and pressures on interest rates in the short as well as in long-term. Actually, the model enables us to track the series of price change effects finally resulting in interest rates shifts, via a set of microeconomic and financial laws, which taken at the aggregate level could offer the Gibson paradox explanation. Further studies must explore nonlinear nature of the paradox in order to explain it. Study results have important implications for policy makers and firm governance policy