Michael Clemens (Washington) on the Economics of Migration

Dr Michael Clemens

Dr Michael Clemens

In this podcast we meet Dr Michael Clemens from the Center for Global Development in Washington. Dr Clemens is a passionate advocate of greater migration flows due to the economic benefits such flows bring, be it in spillovers to education and technology, or via direct reductions in labour costs. Dr Clemens’ recent work exploited a lottery system which was used to provide a temporary working visa to a sub-set of Indian software workers from a single firm, allowing Clemens to differentiate between place of work, whilst keeping all other aspects constant (type of work, firm policies and practices, etc.). Like other workers, Dr Clemens found that a large component of wage differentials was place-based, the so-called ‘Big-Mac Theory’ of development.

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Briefing: Economic Complexity - of Robots, T-Shirts and Iron Ore

Of Robots, T-Shirts and Iron Ore

complexity_detail

Have you ever wondered what goes into the making of a t-shirt, business shirt or blouse – like the one you are most likely wearing right now?

Obviously there are the raw materials – cotton most probably, some plastics perhaps – but what else is important when making a piece of clothing? Most probably the shirt was made with a sewing machine; in a factory; which sat at the end of a road-way or a train-line enabling the raw materials to arrive at the factory gate, and the shirts to leave for sale; the factory probably ran on electricity; the workers were trained to use the sewing machines, in the company culture and values; whilst other workers generated the design and plans for each shirt; whilst still other workers focused on efficient management, incentive schemes, productivity improvements, finance, risk analysis, marketing, sales and surveys.
As you can see, there is a lot going on to make the humble t-shirt.

But what about something more complicated, like a production-line robot? Or something less complicated to find, but just as complicated to make commercially available like iron ore? Robots need similar inputs to t-shirts – labour, raw materials, designs, electricity roads and so on – but they need different raw materials, and more precise scientific knowledge. Iron ore needs mining equipment, engineering knowledge, and of course, an endowment of iron ore to discover and extract.

Now consider the fact that t-shirts, robots and iron-ore are not made in the same place, by the same country. A likely source for your shirt is Pakistan, whilst the manufacturing robotics comes from Germany, yet Australia is the home of global iron ore production. It is worth pausing to consider why should that be? Why should some countries produce only some goods or services to the exclusion of others?

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Pietro Peretto (Duke) on The Economics of Prosperity on a Finite Planet

Pietro Peretto (Duke)

Pietro Peretto (Duke)

Pietro Peretto, Professor of Economics, Duke University, is tackling the very biggest topic in Economics — How can humanity experience increasing living standards in a world of finite resources? Or more particularly, does the stabilisation of population levels imply the cessation of economic prosperity gains? Professor Peretto is a theorist who has been developing analytical models of human output and interaction with the environment. Professor Peretto was in Melbourne recently for the 17th Australasian Macroeconomic Workshop, at Monash University.

Read the paper on which this Podcast is based: Peretto, Pietro F. and Valente, Simone, Growth on a Finite Planet: Resources, Technology and Population in the Long Run (June 29, 2011). Economic Research Initiatives at Duke (ERID) Working Paper No. 103.

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Rebecca Morton (NYU) on Voting and Personal Attributes

Rebecca Morton (NYU)

Rebecca Morton (NYU)

What about you impacts on your voting choice?

Professor Rebecca Morton, Professor of Politics at New York University joins us today on EconomicsNow! to talk voting. Specifically, she has recently finished a study on what contributes to a person’s preferences for leftist or rightist political platforms. Interestingly, Becky considers both the direct effects of attributes such as income and educational level, but also the direct and indirect effects that personality type, and intelligence can have on a person’s voting behaviour. In this podcast, we discuss the study and its possible implications for voter behaviour, political parties, and the conduct of other studies on voting.

Read the paper on which this Podcast is based: Morton, Rebecca, Tyran, Jean-Robert and Wengström, Erik, Income and Ideology: How Personality Traits, Cognitive Abilities, and Education Shape Political Attitudes (January 27, 2011). Univ. of Copenhagen Dept. of Economics Discussion Paper No. 11-08.

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Andreas Lange (U Hamburg) on Why Fairness Principles Matter to International Climate Change Negotiations

Andreas Lange

Andreas Lange

Why does fairness matter to international climate change negotiations?

To help us answer this question, Andreas Lange, a Professor of Economics from the University of Hamburg joins us on EconomicsNow!. Andreas also holds positions at the Centre for European Economic Research, Mannheim, University of Maryland, and the National Bureau of Economic Research. Andreas has worked on a number of issues in public and environmental economics, applying theory, lab experiments and applied econometrics to the task. Most recently, Andreas has conducted research on international climate change negotiations and the notion of fairness that each nation or region takes to the negotiations.

Read the paper on which this Podcast is based: Lange, Andreas, Andreas Löschel, Carsten Vogt and Andreas Ziegler, “On the Self-Serving Use of Equity Principles in International Climate Negotiations”, European Economic Review 54, 2010, 359-375.

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Markus Brueckner (U of Adelaide) on Economic Growth, Foreign Aid and Causality

Markus Brueckner (University of Adelaide)

Markus Brueckner (University of Adelaide)

Markus Brueckner is a senior lecturer at the School of Economics, University of Adelaide, and has research interests including economic growth, political economy and applied econometrics. Along with a number of articles published in highly respected academic journals, Dr Brueckner has written for the New York Times, The Economist and the Wall Street Journal.

In his most recent work, Dr Brueckner has been looking at the link between foreign aid and growth, or more specifically growth and foreign aid. I began our discussion for EconomicsNow! by asking Markus to outline the present consensus view amongst academic economists on the relationship between foreign aid and economic growth.

Read the paper on which this Podcast is based: “On the Simultaneity Problem in the Aid and Growth Debate.” Journal of Applied Econometrics (Forthcoming).

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Craig Mawdsley (OneSeed) on Sweatshops, Textiles, and Micro-business for development

Craig Mawdsley is Director of OneSeed a textiles importing business bringing hand-made dresses, bags and other textiles from Cambodia to the markets of Australia. The business began around 6 years ago with Craig’s $500 tax return as seed capital and growing ever since with sales in 2011 expected to hit $100,000. In this podcast Craig explains the philosophy behind OneSeed, and what OneSeed does for the Cambodians employed by it. Along the way, we discuss international trade theory, labour laws, specialisation, micro-business and the notorious sweat-shops of Cambodia. Craig is also a graduate of Monash University and the second-year economics unit, “Prosperity, Poverty and Sustainability”.

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Glenn Harrison (Georgia State) on Experimental Economics

Prof Glenn Harrison

Prof Glenn Harrison

Glenn Harrison is the C.V. Starr Chair of Risk Management & Insurance and Director of the Center for the Economic Analysis of Risk (CEAR), in the Department of Risk Management & Insurance, J. Mack Robinson College of Business, Georgia State University. His research includes diverse topics such as law and economics, international trade policy, environmental policy and experimental economics.

Glenn’s research in experimental economics has included the study of bidding behavior in auctions, market contestability and regulation, bargaining behavior, and the elicitation of risk and time preferences. Most recently it has examined the complementarities between laboratory and field experiments.

During our discussion, the matter of one dead salmon arose. Here’s a figure from the scientific research relating to the fish:
The Neuroeconomics of a dead Atlantic Salmon

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Briefing: Is Economics a Science? Explaining the resurgence of Experimental Economics

In this post, our Economist on the ground, Jeremy Kamil, brings us a background piece on Experimental Economics. Which reminds me, have you ever heard the one about the guy who asks you to push a button or pull a lever in the name of ’science’ (pic on website):

Source: http://www.economics.com/

Source: http://www.economics.com.au/

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Andy Seltzer (University of London) on wages, glass-ceilings and business cycles

Prof Andy Seltzer

Prof Andy Seltzer

Andy Seltzer is a Professor in the Department of Economics, Royal Holloway, University of London. Professor Seltzer is an Economic Historian first and foremost and has been working on questions in labour economics by studying, amongst other things, the payroll tabulations from large bank and railway employers during the first part of the 20th century. Professor Seltzer’s work has shed some analytical light on whether employees were rewarded for effort or just years of tenure, and whether a gender pay gap was evident in levels of pay. He’s also been starting to use laboratory experiments to tease out the motivations at play in the historical data. I began our time together by asking him about the nature of payroll data.

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