scholarly journals Wealth Discrimination Theory

2018 ◽  
Vol 2 (2) ◽  
pp. 1
Author(s):  
James Edward Curtis Jr.
Keyword(s):  
Civil War ◽  
Wealth Inequality ◽  
Summer Program ◽  
Material Wealth ◽  
Howard University ◽  
Long Run ◽  
Economic Association ◽  
Future Consumption ◽  
The Ohio State University ◽  
The Impact

One approach to analyzing inequality is to compare average economic choices from a classical theoretical framework. Another approach considers the impact of the formation of society, through statutes and institutions, on average economic outcomes. This paper studies the effects of slavery on black-white wealth inequality upon the emancipation of slaves in the US using historical data. The purpose of wealth has varied from over time. From an economics perspective, wealth is the accumulation of resources that have market value and can be liquidated for present and future consumption. This study proceeds based on the most measurable assumption: households reside in a country with a mixed economy of markets and social planning, such that they have an incentive to accumulate material wealth for intertemporal household consumption and social influence. Becker (1957) and Arrow (1972) developed the most general theories of wage discrimination and favoritism. Oaxaca (1973) and Blinder (1973) have mechanized their theories for empirical analysis. While their findings are insightful, they cannot be directly applied to studying wealth differences since wealth is a complex combination of wages and other variables. Finally, since unexplained differences in states that abolished slavery after the Civil War were 10 percent higher than unexplained effects in states that abolished slavery well before the Civil War and the magnitudes of the unexplained effects were similar over the long-run, we cannot reject the existence of a negatively bounded correlation between the duration of time from enslavement and the magnitude of unexplained differences in wealth. This research was funded in part by the National Science Foundation under Grant SES 0096414. I would like to thank John Ham, Richard Steckel, Randall Olsen, Bruce Weinberg, Audrey Light, Nori Hashimoto, James Peck, Patricia Reagan, Charles Kirwin, Rebecca Blank, Charles Betsey, Alvin Thornton, Leibert Morris, Maude Toussaint-Comeau, Simone Wegge, James Wilbanks, Thomas Maloney, and William Collins for their insightful comments. I would also like to thank participants in workshops and seminars at the Ohio State University, Howard University, University of Michigan, American Economic Association Summer Program and Pipeline Conferences, Western Economics Association International meetings, and Social Science History Association meetings. I would also like to thank James Curtis Sr, K D Curtis, Karen Curtis (deceased), Lariece Grant-Brown, Barbara Broadnax, Dwayne Broadnax, Rudy Broadnax, Zee Curtis-Grant, Raymond Tillery, Chris Cooper, Dr. K A Troy, Dr. H. Beecher Hicks, Reverend Charles Lewis, Reverend Cornelius Wheeler, Reverend James Lewis, Elder David Treadwell, Dr. Stephen Tucker and Roberta Tucker, Minister Charles Webb, Minister David Surles, and Elder Gregory Strong for their support. This draft is a revision of a November 2010 paper and August 2001 paper. 

Economic persistence despite adverse policies: Evidence from Kyrgyzstan

2021 ◽  
Author(s):  
Catherine Guirkinger ◽  
Gani Aldashev ◽  
Alisher Aldashev ◽  
Mate Fodor
Keyword(s):  
20Th Century ◽  
Wealth Inequality ◽  
Well Being ◽  
Early 20Th Century ◽  
Material Wealth ◽  
Long Run ◽  
Generational Transmission ◽  
Relative Status ◽  
Geographic Sorting ◽  
Economic Well Being

Abstract We study the long-run persistence of relative economic well-being under adverse government policies using a combination of historical and contemporaneous data from Kyrgyzstan. After controlling for unobservable local effects, the economic well-being of Kyrgyz households in the 2010s correlates with the early 20th-century average wealth of their tribes. Inequality at the tribe level in the 2010s correlates with wealth inequality in the early 20th century. The likely channels of persistence are the inter-generational transmission of human capital, relative status, political power, and cultural traits. Transmission of material wealth, differences in natural endowments, or geographic sorting cannot explain persistence.

scholarly journals Who Benefits from Affirmative Action? The Case of the AEA Summer Minority Program 1986–1990

1992 ◽  
Vol 6 (2) ◽  
pp. 149-156 ◽  
Author(s):  
Michael A Leeds
Keyword(s):  
Affirmative Action ◽  
Value Added ◽  
Summer Program ◽  
Intensive Training ◽  
Undergraduate Instruction ◽  
Temple University ◽  
Admissions Policy ◽  
Economic Association ◽  
And Mathematics ◽  
The Impact

Since 1974, the American Economic Association Summer Minority Program (AEASMP) has provided minority undergraduates with intensive training in the core areas of economics. From 1986 to 1990, while the program was at Temple University, this consisted of advanced undergraduate instruction in microeconomics, macroeconomics, econometrics, and mathematics. As a form of affirmative action aimed at increasing the number of minority economists, the AEASMP is subject to many of the controversies surrounding more standard affirmative action programs. Upon becoming managing director of the AEASMP in 1989, I explicitly attempted to alter the admissions policy in favor of students from lesser backgrounds, favoring those from poorer families and coming from less prestigious institutions. Access to the records of all students who applied to the AEASMP while it was at Temple provides a unique chance to analyze the effect of a change in the underlying philosophy of an affirmative action program. Specifically, I examine the impact of the change in philosophy on who was admitted to the AEASMP. Then, using the grades of students admitted to the summer program, I estimate the effect of the change in admissions procedures on the performance of students in the program. Finally, I test whether students in 1989–1990 performed better than students with similar characteristics in 1986–1988, to see whether there was greater “value-added” by the program in its last two years.

scholarly journals Land and Racial Wealth Inequality

2011 ◽  
Vol 101 (3) ◽  
pp. 371-376 ◽  
Author(s):  
Melinda C Miller
Keyword(s):  
United States ◽  
Civil War ◽  
Home Ownership ◽  
Wealth Inequality ◽  
Southern United States ◽  
Cherokee Nation ◽  
Racial Wealth Gap ◽  
Wealth Gap ◽  
Using Data ◽  
The Impact

Could racial wealth inequality have been reduced if freed slaves had been granted land following the Civil War? This paper exploits a plausibly exogenous variation in policies of the Cherokee Nation and southern United States to identify the impact of free land on the size of the racial wealth gap. Using data on land, livestock, and home ownership, I find evidence that former slaves who had access to free land were absolutely wealthier and experienced lower levels of racial wealth inequality in 1880 than former slaves who did not. Furthermore, their children continued to experience these advantages in 1900.

scholarly journals Dynamic Labor Reallocation with Heterogeneous Skills and Uninsured Idiosyncratic Risk

2021 ◽  
pp. 01-74
Author(s):  
Ester Faia ◽  
◽  
Ekaterina Shabalina ◽  
Marianna Kudlyak ◽  
◽  
...  
Keyword(s):  
Choice Model ◽  
Occupational Mobility ◽  
Adjustment Costs ◽  
Wealth Inequality ◽  
Function Optimization ◽  
Income Risk ◽  
Labor Reallocation ◽  
Long Run ◽  
The Impact

Occupational specificity of human capital motivates an important role of occupational reallocation for the economy's response to shocks and for the dynamics of inequality. We introduce occupational mobility, through a random choice model with dynamic value function optimization, into a multi-sector/multi-occupation Bewley-Aiyagari model with heterogeneous income risk, liquid and illiquid assets, price adjustment costs, and in which households differ by their occupation-specific skills. Labor income is a combination of endogenous occupational wages and idiosyncratic shock. Occupational reallocation and its impact on the economy depend on the transferability of workers' skills across occupations and occupational specialization of the production function. The model matches well the statistics on income and wealth inequality, and the patterns of occupational mobility. It provides a laboratory for studying the short- and long-run effects of occupational shocks, automation and task encroaching on income and wealth inequality. We apply the model to the pandemic recession by adding an SIR block with occupation-specific infection risk and a ZLB policy and study the impact of occupational and aggregate labor supply shocks. We find that occupational mobility may tame the effect of the shocks but amplifies earnings inequality, as compared to a model without mobility.

The long-run stability of a small, open economy under crawling peg regime

2002 ◽  
Vol 52 (1) ◽  
pp. 57-78
Author(s):  
S. Çiftçioğlu
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Risk Premium ◽  
Small Open Economy ◽  
Exchange Rate Policy ◽  
Price Stability ◽  
Output Stability ◽  
Long Run ◽  
The Exchange Rate ◽  
The Impact

The paper analyses the long-run (steady-state) output and price stability of a small, open economy which adopts a “crawling-peg” type of exchange-rate regime in the presence of various kinds of random shocks. Analytical and simulation results suggest that with the exception of money demand shocks, an exchange rate policy which involves a relatively higher rate of indexation of the exchange rate to price level is likely to lead to the worsening of price stability for all types of shocks. On the other hand, the impact of adopting such a policy on output stability depends on the type of the shock; for policy shocks to the exchange rate and shocks to output demand, output stability is worsened whereas for the shocks to risk premium of domestic assets, supply price of domestic output and the wage rate, better output stability is achieved in the long run.

Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Time Series Data ◽  
Oil Prices ◽  
Oil Price ◽  
Series Data ◽  
Sovereign Bond ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

An Econometric Analysis on the Relationship between Globalisation and Inequality in South Africa

2020 ◽  
Vol 11 (1) ◽  
pp. 89-89
Author(s):  
Jacques de Jongh
Keyword(s):  
South Africa ◽  
Well Being ◽  
Causality Analysis ◽  
Global Integration ◽  
Development Indicators ◽  
Long Run ◽  
The World ◽  
Distribution Of Resources ◽  
Short Run ◽  
The Impact

Globalisation has had an unprecedented impact on the development and well-being of societies across the globe. Whilst the process has been lauded for bringing about greater trade specialisation and factor mobility many have also come to raise concerns on its impact in the distribution of resources. For South Africa in particular this has been somewhat of a contentious issue given the country's controversial past and idiosyncratic socio-economic structure. Since 1994 though, considerable progress towards its global integration has been made, however this has largely coincided with the establishment of, arguably, the highest levels of income inequality the world has ever seen. This all has raised several questions as to whether a more financially open and technologically integrated economy has induced greater within-country inequality (WCI). This study therefore has the objective to analyse the impact of the various dimensions of globalisation (economic, social and political) on inequality in South Africa. Secondary annual time series from 1990 to 2018 were used sourced from the World Bank Development indicators database, KOF Swiss Economic Institute and the World Inequality database. By using different measures of inequality (Palma ratios and distribution figures), the study employed two ARDL models to test the long-run relationships with the purpose to ensure the robustness of the results. Likewise, two error correction models (ECM) were used to analyse the short-run dynamics between the variables. As a means of identifying the casual effects between the variables, a Toda-Yamamoto granger causality analysis was utilised. Keywords: ARDL, Inequality, Economic Globalisation; Social Globalisation; South Africa

The Impact of Monetary and Fiscal Policies on the Stock Market in the United States (U.S); Evidence from Linear ARDL Framework

2020 ◽  
Vol 11 (1) ◽  
pp. 132-132
Author(s):  
Aref Emamian
Keyword(s):  
United States ◽  
Stock Market ◽  
The United States ◽  
Real Effective Exchange Rate ◽  
Annual Data ◽  
Fiscal Policies ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
The Impact

This study examines the impact of monetary and fiscal policies on the stock market in the United States (US), were used. By employing the method of Autoregressive Distributed Lags (ARDL) developed by Pesaran et al. (2001). Annual data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, the results show that both policies play a significant role in the stock market. We find a significant positive effect of real Gross Domestic Product and the interest rate on the US stock market in the long run and significant negative relationship effect of Consumer Price Index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Keywords: ARDL, monetary policy, fiscal policy, stock market, United States

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