Search results for: Social
Kam Yu, World Economics, June 2020
The spread of the COVID-19 around the world started in January 2020. Many countries implemented an activity lockdown after the World Health Organization announced pandemic status. Businesses have been ordered by governments to impose severe restrictions on their activities and transactions. Office workers shift their work home, schools are closed, and many factories are shut down. Just before economic lockdown and social distancing policies were announced, total consumer expenditures ?rst spiked, owing to panic buying, and then collapsed after about two weeks. These large ?uctuations in shares of relative expenditure have a profound impact on data collection and calculation of official statistics. This short article focuses on the consumer price index (CPI).
World Economics, March 2020
The accuracy of population data varies widely across countries. The most comprehensive data on the number of people living in a territory and their demographic profile, a vital component for public sector economic and social planning and also for private sector needs, is usually available from the result of a census.
Heba Farida Ahmed Fathy El-laithy & Dina Magdy Armanious, World Economics, March 2019
This study assesses poverty dynamics in Egypt during 2010-2015 and examines the characteristics of transient poor people. Reliability Index, Relative and Absolute mobility are used to assess mobility. The results showed that there is a substantial amount of mobility between 2010 and 2015 and deterioration in the relative positions is larger than the improvement in the same period. Households with uneducated heads, with temporary jobs, outside establishments and with no social protection are more likely to remain poor.
Giovanna Maria Dora Dore, World Economics, March 2019
The informal economy is one of the most complex economic and political phenomena of our time. It exists in rich and poor countries alike, and currently employs almost half of the world’s workers, about 1.8 billion people. •At a value of US$10 trillion, the informal economy is the second-largest economy in the world, after the economy of the United States (at US$14 trillion) and before that of China (at US$8.2 trillion). High taxes, labour costs and social security infrastructures, undeclared work and underreporting are among the most powerful drivers of informality. Measures promoting behavioural changes can help counter its growth, even though controls and penalties remain more popular as tools in the fight against the informal economy. The informal sector remains the fastest-growing part of the world economy and we need a better understanding of what it means for business and society and why it is the preferred operating sector for many entrepreneurs.
Michael Chibba & John M. Luiz, World Economics, March 2019
A comprehensive treatise on inequality from economic, social, business and metrics/data perspectives is lacking in the literature and this treatise fills that void. We posit that: (a) neoclassical economics has failed to address inequality within nations; (b) the social theories on inequality are of ancillary importance; (c) businesses have contributed to inequality in several ways but have also made a positive contribution towards a fairer, more equitable society; (d) data on inequality is not up to date. Taxation and social programs offer an inadequate approach to tackling inequality without a proper framework and supporting approaches. In addition, complementarity between neoclassical economics and behavioural economics would be a positive factor in addressing inequality and should be pursued. Issues of inequality metrics and data reliability have moved to the forefront of discussions as the data currently available is the basis of much dissent. Robust metrics and reliable and up to date inequality data (as well as related statistics) are indispensable for designing, implementing, monitoring, and evaluating inequality interventions and policies.
Thomas Burch, World Economics, June 2018
Statistical data consumed, analysed and produced contain errors from more sources than is often recognised and the commercialisation of survey and other statistical research and ‘inventions’ such as ‘big data’ has led to naïve and faulty analysis and propaganda. Oskar Morgenstern has noted that, in contrast to physics, there is no estimate of statistical error within economics and the various sources of error that come into play in the social sciences suggest that the error in economic observations is substantial. It is important to recognise the phenomenon of the propagation of errors; errors in our results may be disproportionate to errors in our input data. Despite documented problems social scientists cannot give up on quantitative data since many of the most important questions in social science are matters of more or less, not either/or.
Neil Gregory, World Economics, June 2016
Despite great investor interest in impact investing, actual investment flows have remained modest. This is largely due to insufficient investment opportunities which offer a financially sustainable risk-return balance. A focus on de-risking impact investments can enable investors to find more assets which offer commercial returns on a risk-adjusted basis, without sacrificing impact. By cutting off the lower tail of the risk distribution, impact investments can offer comparable returns to other investments, as has been the International Finance Corporation’s (IFC’s) experience. Successful impact investing involves selecting assets and structuring investments differently to realize their potential to deliver both financial and social returns. We segment the supply and demand of impact investing funds, and identify the causes of elevated risks in prevalent approaches to impact investing. Drawing on IFC’s investment experience, we identify seven ways to reduce these risks. With these approaches, we provide evidence that investment opportunities can be generated that meet the requirements of investors seeking both commercial financial returns and social impact without trading one off for the other.
Mark Esposito & Terence Tse, World Economics, March 2015
This paper considers the importance of measurement in complex societies and notes that the concept of measuring macroeconomic variables such as GDP was grounded in the impact of the 1929 Wall Street Crash on America. Simon Kuznets, a Harvard economist, produced a report for the National Bureau of Economic Research (NBER) which was published in 1934. Despite warnings of the limitations of GDP, its use has expanded to include government expenditures while to Kuznets government activities were an intermediate service and not part of final output. This paper considers particular inadequacies in using GDP as a measure of welfare when it includes, prison funding, natural disaster relief or expenditure on big sports events. The paper also argues that we should move beyond GDP while still recognizing its benefits as an organized methodology. Climate change, environmental disasters and international terrorism, transcend the assumption that economic growth is all we need. It concludes that an index capable of measuring social progress, independent from economic activity is needed.
Swati Dutta, World Economics, September 2013
In order to formulate policy to target the correctly identified rural poor in India, focus on an income poverty measure alone is insufficient. The purpose of this research is to study a new area of poverty measurement based on data that detail a household’s access to basic assets. The study has used the secondary data source provided by the Demographic and Health Survey (DHS) for the time period of 1992, 1998 and 2005. In order to construct the asset index the technique of multiple correspondence analysis is used. A discussion of trends in asset poverty in various states in India follows, together with the policies they need to adopt depending on their state of poverty.
Marga Peeters & Loek Groot, World Economics, June 2012
This paper investigates the fiscal pressure, or the level of public expenditure on old and young economically inactive people, arising from demographic change in relation to the labour market space, or the proportion of the working age population not in full-time employment. The exercise is carried out for 50 countries that cover 75% of the world population. The pressure-to-space indicator ranks Poland, Turkey and Greece high, although, apart from Turkey and India, developing countries generally rank low due to low spending on the old (pensions, healthcare) and on the young (education, family costs). Peculiarly, economies with higher pressure have more space. The hypothesis that ageing economies have started using their labour market space in anticipation of higher demographic pressure is rejected. It is important to note that raising the retirement age in developed economies by five years alleviates fiscal pressure by almost 30% and creates 10% more labour market space.
Friedrich Schneider, World Economics, December 2011
In this paper, the main focus lies on the development and size of the shadow economy labour force in OECD, developing and transition countries. Besides informal employment in the rural and non-rural sector, other measures of informal employment like the share of employees not covered by social security, own account workers or unpaid family workers are also shown. The most influential factors on the shadow labour force are tax policies and state regulation, which, if they rise, increase both. Furthermore the discussion of the recent literature underlines that economic opportunities, the overall situation on the labour market and unemployment are crucial for an understanding of the dynamics of the shadow economy and especially the shadow labour force.
F. Gerard Adams, World Economics, December 2009
The Report of the Commission on Economic Performance and Social Progress considers the issues of establishing a broader measure of human well-being than the per capita GDP currently used. The report evaluates the possibilities for expanding the GDP concept and other measures of well-being, and for evaluating sustainability. The Commission recognises that it will not be possible to rely on one measure, recommending the use of a dashboard of various measures, including adjusted net saving.
Friedrich Schneider, World Economics, December 2001
Estimates of the size of the shadow economy in 21 OECD countries are
presented. The average size of the shadow economy (as a percentage of ‘official’
GDP) over 1999/2000 in these countries is 16.7%. The author concludes that it is
the increasing burden of taxation and social security contributions, combined
with rising state regulatory activities, that are the driving forces for the recent growth in size of the shadow economy in the countries concerned.
Giles Atkinson, World Economics, September 2000
Giles Atkinson replies to Professor Zimmermann’s "A Multi-coloured GDP -or No New GDP at All?"[World Economics, Vol 1 No 3 July-September 2000]
Horst Zimmermann, World Economics, September 2000
This is a reply to Giles Atkinson’s article ‘Re-thinking Economic Progress’ that appeared in the first issue of World Economics (Vol. 1, No. 1, January – March 2000). Atkinson discussed proposals for the construction of ‘green’ alternatives to Gross Domestic Product (GDP). In the same issue, Amanda Rowlatt in her article ‘Extending the UK National Accounts’, discussed the role of ‘satellite accounts’, including measures of effects on the environment. Professor Zimmermann’s contention is that the concept of a ‘green GDP’ would lead to a one-sided measure which cannot be used for the many purposes for which normal GDP as a comprehensive measure can be used. A GDP corrected for depletion of environmental stocks would have to be supplemented by one corrected for changes in human capital, another one dealing with health capital, etc. Completing the set leads to the older concept of Net Economic Welfare or something similar. Only this would again be a comprehensive measure and could replace GDP.
Paul Gregg, Kirstine Hansen & Jonathan Wadsworth, World Economics, June 2000
Analysis of labour market performance using individual level data can reach radically different conclusions to those provided by a household-based analysis, using the same source of information. In Britain and other OECD countries the number of households without access to earned income has grown despite rising employment rates. Built around a comparison of the actual jobless rate in households with that which would occur if work were randomly distributed, the authors show that work is becoming increasingly polarised in many countries.
Changing household structure can only account for a minority of the rise in workless households, so that labour market failure is the dominant explanation. Polarisation of work will have important welfare and budgetary consequences for any country.
Giles Atkinson, World Economics, March 2000
Most national governments have pledged a commitment to sustainable development. The transformation of these pledges into policy is a formidable challenge. Of particular interest are proposals for the construction of green alternatives to Gross Domestic Product (GDP), which it is hoped will provide policy-makers with a consistent and summary signal of "true" trends in the economy both now and into the future. This paper reviews the green accounting debate over the past decade. the author argues that, while initial expectations have, at times, been overstated, there are encouraging signs for policy-makers attempting to make sense of their commitments to sustainable development. One such indication is the increasing emphasis on improved measures of saving, providing a better link between actions in the present and their implications for the future.
Amanda Rowlatt, World Economics, March 2000
The national accounts measure economic activity. The UK is developing "satellite accounts" which use the framework of the national accounts but aim to quantify other aspects of living standards. This article starts by comparing satellite accounts with the use of indicators to measure the quality of life. It then reports on progress with the UK environmental accounts, and with the household accounts, which measure the productive unpaid work done in the home. It concludes with a discussion of the scope for developing a wider range of satellite accounts for the UK.
Jim Thomas, World Economics, March 2000
One answer to the question "How Rich are We?" is to compare levels of National Income either across countries or for a single country over time. However, the relevance of this approach depends on how accurately National Income measures the output of goods and services of a country. While it is difficult to measure, the Black Economy represents the output of goods and services that is not generally captured in the National Income Accounts. This article discusses the problems of measuring the size of the Black Economy and speculates on the questions of who is involved and how. The relative importance of Tax Evasion versus Benefit Fraud is discussed.
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