I examine the role of political institutions in facilitating the adoption of a long-term surplus-maximizing policy when the economy is in transition. In the model I consider, a transition process gradually restructures economic institutions so that the population’s long-term preference may differ from its short-term preference. A democracy may fail to implement the optimal policy if the elector...

Measuring preferences via stated methods remains the only technique to obtain the total economic value of a non-marketed good or service. This study examines if alternative causes of an environmental problem affect individual statements of compensation demanded. Making use of a unique sample drawn from the Netherlands, we find that Hicksian equivalent surplus (ES) is not significantly affected ...

Stock market provides the bridge through which the savings of surplus units may be transformed into medium and long-term investments in the deficits units. It is reputed to perform critical functions, which promote economic growth and prospects of the economy. Empirical evidence linking stock market development to economic growth has been inconclusive even though the balance of evidence is in f...

Using survey data and an equilibrium displacement model, we estimate the market and economic impacts of the American Forest and Paper Association’s Sustainable Forestry Initiative (SFI) on stumpage markets in the US South. We examine four timber product markets: softwood pulpwood, softwood sawtimber, hardwood pulpwood, and hardwood sawtimber. In each market we calculate changes in producer and ...

This paper argues that Arthur Lewis originally presented the problem of economic development in terms of an open system, in the sense that it focused on a number of possible pitfalls and socio-economic constraints in the process of capital accumulation and industrialization in a labour-surplus economy. In the hands of the neoclassical economists, who were predominantly interested in achieving d...

In this paper, we present a model economy that can account for the changes in the current account balance in China since the early 2000s. Our results suggest that the increase in the household saving rate and tighter financial constraints facing the firms played equally important roles in the increase in the current account surplus until 2008. We argue that inadequate insurance through governme...

The basic concern of the Capitalistic approach manufacturing industry is to minimize costs and maximize profit. Through uncontrolled rate exploitation, manufacturer creates large quanta social surplus. This ultimately results in economic injustice inequality among classes. current article makes an initiation develop production quantity model with deterioration under Marxian socio-political econ...

The Austrian calculation argument suggests that inability to engage in economic calculation worsened outcomes in socialist states. We suggest that this is hardly the case. When Austrian assumptions of benevolence are relaxed, inability to engage in economic calculation prevents the non-benevolent planner from fully extracting all available surplus from the citizenry. Consequently, when planners...

The paper examines the contentious issue of the extent of surplus labour that remains in China. China was an extreme example of a surplus labour economy, but the rapid economic growth during the period of economic reform requires a reassessment of whether the second stage of the Lewis model has been reached or is imminent. The literature is inconclusive. On the one hand, there are reports of mi...