dunnettreader + rents   14

Noah Smith - The Illusion of Lagging Productivity | Bloomberg View - August 2016
Re Dietrich Vollrath's recent posts on how part of it may be statistical illusion from industry collecting rents due to increased industry concentration, IP etc., which makes the stats on production look too capital-heavy.
economic_growth  US_economy  21stC  2010s  productivity  rents  rent-seeking  competition  statistics  from instapaper
august 2016 by dunnettreader
Political Rents and Profits in Regulated Industries - ProMarket July 2016
A new working paper by James Bessen from Boston University finds that much of the rise in corporate profits since 2000 was caused by political rent seeking.
profit  business-and-politics  utilities  consumer_protection  competition  regulation  anti-trust  rents  market_failure  political_economy  paper  from instapaper
july 2016 by dunnettreader
Corey Robin - David Ricardo: Machiavelli of the Margin - Nov 2014
In my course this semester at the Graduate Center, “The Political Theory of Capitalism,” we’ve been exploring how some of the classics of modern political economy translate, traduce, transmit, efface, revise, and/or sublimate traditional categories of and concepts in Western political theory: consent, obedience, rule, law, and so forth. Through economic thinkers like Smith, Ricardo, Keynes, Schumpeter, Jevons, and the like, we try and read political economy as the distinctively modern idiom of political theory. In the same way that religion provided a distinctive language and vocabulary for political thought after Rome and before the Renaissance, might not economics provide modern political theory with its own distinctive idiom and form? In other words, our interest in the political moment of economic discourse is not when the state intervenes or intrudes; it’s when economic discourse seems to be most innocent of politics. That’s when we find the most resonant and pregnant political possibilities. -- see site for some interesting comments -- downloaded pdf to Note
intellectual_history  political_philosophy  political_economy  18thC  19thC  20thC  Ricardo  rents  rent-seeking  surplus  labor_share  labor_theory_of_value  marginalists  downloaded 
october 2015 by dunnettreader
Caspar Siegert and Matthew Willison - Estimating the extent of the ‘too big to fail’ problem – a review of existing approaches | Bank of England -- Financial Stability Paper 32: 13 February 2015
​How big is the ‘too big to fail’ (TBTF) problem? Different approaches have been developed to estimate the impact being perceived as TBTF might have on banks’ costs of funding. One approach is to look at how the values of banks’ equity and debt change in response to events that may have altered expectations that banks are TBTF. Another is to estimate whether debt costs vary across banks according to features that make them more or less likely to be considered TBTF. A third approach is to estimate a model of the expected value of government support to banks in distress. We review these different approaches, discussing their pros and cons. Policy measures are being implemented to end the TBTF problem. Approaches to estimating the extent of the problem could play a useful role in the future in evaluating the success of those policies. With that in mind, we conclude by outlining in what ways we think approaches need to develop and suggest ideas for future research. -- didn't download
paper  banking  financial_crisis  bank_runs  financial_system-government_back-stop  too-big-to-fail  rents  rent-seeking  risk_premiums  capital_markets  margin_requirements  equity_markets  leverage 
may 2015 by dunnettreader
Eric Rauchway, review - Martin Wolf, The Shifts and the Shocks (2014) | TLS Jan 2015
... his analysis, which holds that we knew how to avoid, counter and cure these troubles; we have simply – largely out of wilful ignorance and lack of courage – failed to do more than the barest minimum of what was necessary. Governments, banks and international institutions did “just enough, almost too late” to prevent the worst possible result, which would have been a note-for-note replay of the 1930s including a slide into fascism and world war. But having done no more than avoid world-historic catastrophe, we find ourselves mired in a dim morass of our own making, with no sunlit uplands in sight. Wolf offers a persuasive account that is also clear, though he relies on no single factor but several: hence the title of the book. It took both long-term shifts and a series of shocks to cause a crisis of such magnitude. Our world was born in the end of the Cold War. With capitalism triumphant, the victors liberalized their economies and so did the Communist nations, particularly China. Yet all was not well in this brave new world; international finance and trade threatened the stability of smaller, emerging economies, as the crises of the 1990s demonstrated.
financialization  bad_history  shadow  banking  Pocket  risk  global  economy  money  markets  global_imbalance  keynesian  business_influence  bad_economics  books  financial_regulation  liquidity  deregulation  minsky  investment  economic_growth  reviews  fed  Bank_of_England  great_recession  us_politics  leverage  capital_flows  race-to-the-bottom  business  ethics  political_economy  ecb  rents  uk  central_banks  investors  financial  crisis  financial_system  austerity  capital  economic_theory  us_economy  eurozone 
january 2015 by dunnettreader
Barry Bosworth - Sources of Real Wage Stagnation | Brookings Dec 2014
The new phenomenon is the decline in labor’s share of income for which we have no satisfactory explanation. It may reflect the huge rents that accrued to commodity producers during the boom of the last decade, and as that comes to an end labor’s share may rise toward the historical norm. However, some analysts point to the development of a highly competitive global market for labor combined with a more general reduction in product-market competition through reliance of mergers, IT patents, and regulations that suggest a reduced labor share may be a longer-lasting phenomenon.
rents  economic_growth  labor  inequality  productivity  21stc  wages  20thc  monopolies  profits  globalization  ip  economic_history  us_economy  Pocket 
january 2015 by dunnettreader
Some Considerations of the Consequences of the Lowering of Interest and the Raising the Value of Money, by John Locke 1691
Part 1: Whether the Price of the Hire of Money can be regulated by Law *--* Part 2: Interest makes not Money Exchange for less of any Commodity. *--* Part 3: The Price of Land. -**- Part 4: An infallible sign of your decay of Wealth is the falling of Rents. *--* Part 5: This business of Money and Coinage is by some Men thought a great Mystery
etexts  Locke  monetary_policy  economic_history  economic_theory  17thC  1690s  currency  landowners  rents  agriculture  prices  interest_rates  EF-add 
may 2014 by dunnettreader
Izabella K: The robot economy and the new rentier class | FT Alphaville Dec 2012
It seems more top-tier economists are coming around to the idea that robots and technology could be having a greater influence on the economy (and this crisis in particular) than previously appreciated. Paul Krugman being the latest.But first a quick backgrounder on the debate so far (as tracked by us).

..... For what Rogoff is saying is that if we are experiencing technology stagnation, it’s not because humanity has suddenly become less innovative. Rather, it’s because incumbent interests now have the biggest incentive ever to impose artificial scarcity, which is stopping the speed of innovation.

Our own personal view is that this is because we’ve now arrived at a point where technology begins to threaten return on capital, mostly by causing the sort of abundance that depresses prices to the point where many goods have no choice but to become free. This is related to the amount of “free working” hours now being pumped into the economy .... as everyone tries to keep up with the competition by doing yet more hours voluntarily.

Patent wars, meanwhile… and the rise of companies whose entire raison d’etre is focused on protecting patents… is the ultimate counter force. As a recent Fed paper spelled out, there is real evidence to suggest that idea monopolisation has become a hugely counter-productive force in the economy.

We particularly enjoyed this opinion piece by Steven Levy at Wired Magazine on what he described as the emerging “patent problem“.
21stC  global_system  international_economics  international_political_economy  technology  economic_growth  economic_history  Labor_markets  macroeconomics  capitalism  rents  intellectual_property  Innovation  consumerism  competition  investment  monopolies  plutocracy  links  EF-add 
june 2013 by dunnettreader
Josh Bivens & Lawrence Mishel: The Pay of Corporate Executives and Financial Professionals as Evidence of Rents in Top 1 Percent Incomes | Economic Policy Institute June 2013
The debate over the extent and causes of rising inequality of American incomes and wages has now raged for at least two decades. In this paper, we will make four arguments.

First, the increase in the incomes and wages of the top 1 percent over in the last three decades should largely be interpreted as driven by the creation and/or redistribution of economic rents, and not simply as the outcome of well-functioning competitive markets rewarding skills or productivity based on marginal differences. This rise in rents accruing to the top 1 percent could be the result of increased opportunities for rent-shifting, increased incentives for rent-shifting, or a combination of both.

Second, this rise in incomes at the very top has been the primary impediment to living standards growth for low and moderate-income households approaching the growth rate of economy-wide productivity.

Third, because this rise in top incomes is largely driven by rents, there is the potential for checking (or even reversing) this rise through policy measures with little to no adverse impact on overall economic growth.

Lastly, this analysis suggests two complementary approaches for policymakers wishing to reverse the rise in the top 1 percent’s share of income: dismantling the institutional sources of their increased ability to channel rents their way and/or reducing the return to this rent-seeking by significantly increasing marginal rates of taxation on high incomes.
US_economy  political_economy  inequality  rents  rent-seeking  taxes  Labor_markets  plutocracy  downloaded  EF-add 
june 2013 by dunnettreader
Paul Krugman: Profits Without Production - NYTimes.com June 21 2013
rising monopoly rents can and arguably have had the effect of simultaneously depressing both wages and the perceived return on investment.

You might suspect that this can’t be good for the broader economy, and you’d be right. If household income and hence household spending is held down because labor gets an ever-smaller share of national income, while corporations, despite soaring profits, have little incentive to invest, you have a recipe for persistently depressed demand
US_economy  political_economy  rents  capitalism  financialization  intellectual_property  plutocracy  Labor_markets 
june 2013 by dunnettreader

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