- Development Economics, Macroeconomics, Economic Development, Health Economics, Human Development, Global Governance, and 27 moreCompetition, Poverty traps, i) Innovation in developing countries ii) Economic History of Mexico, Marxist Economics, Economics, History, Mathematical Biology, Marxian Economics, Schumpeter, Financial Sector, Optical Sectioning, Hyman Minsky, Political Science, Globalization, International organizations, Neoliberalism, International Politics, Democratic Theory, Global Justice, Multinational Corporations, Global Civil Society, Economic Growth, International Economics, Political Economy, International Trade, Economic History, and World Economyedit
- David Mayer-Foulkes, mathematician by training. Research Professor in Economics at CIDE in Mexico City for twenty fiv... moreDavid Mayer-Foulkes, mathematician by training. Research Professor in Economics at CIDE in Mexico City for twenty five years. Director of the Journal Economia Mexicana for eight years. His interests include long-term intergenerational health, nutrition and educational poverty traps, their impact on economic growth, and globalization. His multiple steady state models of technological change highlight the importance of the technological gradient. They represent human and economic underdevelopment as a long-term, dynamic poverty trap. They also describe inequality and inefficiency in the mass market economy and globalization. He has conducted research for PAHO, UNDP and the Mexican Commission on Macroeconomics and Health, amongst others, and visited the UCLA, Brown University and Kiel Institute Economics Departments, and the UCLA Blum Center on Poverty and Health in Latin America. He now includes data science methodologies in his research, and has used the twin processes of migration and firm growth in Mexico as an example.edit
ABSTRACT I show that the evolution of cross-country incomes is characterized by global divergence. To do this, the sample of non-mainly-petroleum-exporting countries having market economies during the period 1960-1997 is divided into five... more
ABSTRACT I show that the evolution of cross-country incomes is characterized by global divergence. To do this, the sample of non-mainly-petroleum-exporting countries having market economies during the period 1960-1997 is divided into five clusters of countries by a regression clustering algorithm according to the levels and rates of change of income and life expectancy. The five clusters correspond to advanced countries, especially fast growing countries, and three tiers of less developed countries with qualitatively different development paths. I show that the following properties hold for these clusters. 1) Growth rates across groups of countries are globally divergent; some successive groups converge while most diverge. 2) Income inequality between these groups of countries has increased while income inequality within the groups has remained almost unchanged. 3) The five groups of countries exhibit beta and sigma income divergence between groups and convergence within groups. Besides, the implied steady state growth rates across groups of countries are globally divergent, the five-club convergence model is much more significant than the one-club model, and the distributions of country-specific convergence regression coefficients are significantly different across groups of countries. The convergence found within groups is consistent with the relative convergence (to steady state trajectories) found in the literature. However, relative convergence only means that there are a series of perhaps distinct, local equilibrium processes going on. Indeed, these may themselves be due to economic forces that prevent global convergence. The empirical facts are consistent only with theories of economic growth explaining divergence and proposing multiple steady states or other explanations for prolonged transitions Such models usually reflect advantages of the rich and disadvantages of the poor. A descriptive study of the five groups of countries suggests, as a stylized fact, that there are three large-scale steady states or convergence clubs, semi-stagnation (low income and life expectancy), semi-development (middle income and high life expectancy) and development (high income and life expectancy), according to whether countries have overcome barriers to human development and to technological innovation. Three of the five groups lie in each of these steady states and the other two transit between them.
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Understanding the effort of saving as part of labor effort means that the labor value of a product is the discounted sum of the amounts of labor that produce it. Thus, the price of any product is the sum of its labor value plus the sum of... more
Understanding the effort of saving as part of labor effort means that the labor value of a product is the discounted sum of the amounts of labor that produce it. Thus, the price of any product is the sum of its labor value plus the sum of discounted profits integrated in its costs and sale. Hence surplus value is identical with profits, whose existence derives from market power. Integrating into conventional economics an ethical analysis, political economy, and a basically pragmatic perspective, achieves an initial synthesis of Marxism and conventional economics. Since Walrasian analysis assumes zero profits, it also assumes zero surplus value, inconsistently with the actual existence of profits. Technological innovation is the main source of market power. A model with technological differences between large and small-scale sectors yields an analysis of the industrial economy with features very similar to Marx’s surplus value and low wages, in which capital is primarily technology. It also shows that the technological level of small producers is a public good. Ethical analysis distinguishes between optima that can only be achieved by perfectly ethical participants and second-best optimums with selfish participants. This analysis can in principle also be applied to the State, which also produces surplus value, alienation, and oppression. Together with results on underdevelopment as a poverty trap in technology and in human capital, this means that public policies in technology and education are fundamental to eliminate poverty and achieve sustainable development. These must also be consistent with the rural urban transition. We propose some minimum points of economic policy to achieve egalitarian technological development. Eliminating the abuse of power encompasses both democratic and socialist ideals and ethics and requires developing both political and economic equality.
Research Interests: Development Economics, Macroeconomics, Political Economy, Ethics, Marxism, and 10 moreMarxist Economics, Politics, Social Network Analysis (Social Sciences), Social Science Research Network, Ethical Economy, Technological Development, Labor Theory of Value, Marxist EconomiCs, Mainstream, and Mainstream Economics
ABSTRACT We study the horizon and magnitude of the effects of life expectancy and mortality by age and gender groups on economic growth in Mexico, 1950-1995, using a Granger causality for longer periods up to 25 years. The effects have a... more
ABSTRACT We study the horizon and magnitude of the effects of life expectancy and mortality by age and gender groups on economic growth in Mexico, 1950-1995, using a Granger causality for longer periods up to 25 years. The effects have a high magnitude of about 2% annual growth for this period. Conditions under which this magnitude is consistent with a series of other studies are discussed. Especially important are: considering many channels of long-term affects and context of strong economic growth. Significant causality from income to life expectancy is also detected.// Estudiamos aquí el horizonte y magnitud de los efectos de la esperanza de vida y de mortalidad por grupos de edad y género en el crecimiento económico de México en el periodo 1950-1995, utilizando una prueba de causalidad de Granger en ecuaciones del crecimiento económico. Los resultados indican una causalidad más sólida para periodos más largos de hasta 25 años. Los efectos tienen una magnitud alta de cerca de 2% de crecimiento anual para ese periodo. Examinamos las condiciones en las cuales es congruente esta magnitud con una serie de otros estudios. Son en particular importantes la consideración de muchos medios de los efectos a largo plazo y un contexto de gran crecimiento económico. Se detecta también una causalidad significativa del ingreso respecto a la esperanza de vida.
Research Interests: Economics and Humanities
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Recently, several authors have reported statistical evidence for deterministic dynamics in the flux of genetic information, suggesting that evolution involves the emergence and maintenance of a fractal landscape in DNA chains. Here we... more
Recently, several authors have reported statistical evidence for deterministic dynamics in the flux of genetic information, suggesting that evolution involves the emergence and maintenance of a fractal landscape in DNA chains. Here we examine the idea that motif repetition lies at the origin of these statistical properties of DNA. To analyse repetition patterns we apply a modification of the BDS statistic, devised to analyze complex economic dynamics and adapted here to DNA sequence analysis. This provides a new method to detect structured signals in genetic information. We compare naturally occurring DNA sequences along the evolutionary tree with randomly generated sequences and also with simulated sequences with repetition motifs. For easier understanding, we also define a new statistic for a DNA sequence that constitutes a specific fingerprint. The new methods are applied to exon and intron DNA sequences, finding specific statistical differences. Moreover, by analysing DNA sequences of different species from Bacteria to Man, we explore the evolution of these linguistic DNA features along the evolutionary tree. The results are consistent with the idea that all the flux of DNA information need not be random, but may be structured along the evolutionary tree. The implications for evolutionary theory are discussed.
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We face a public goods challenge spanning urgent environmental, economic and social problems on a national and global scale. The question arises, what is the best way to produce public goods in a market economy setting? Their... more
We face a public goods challenge spanning urgent environmental, economic and social problems on a national and global scale. The question arises, what is the best way to produce public goods in a market economy setting? Their under-provision is due not only to a lack of political will, but to the inherent market failures in the public goods sector. Opportunely, information technologies provide new means for coordinating business, government, and individual preferences to raise public goods demand and therefore also supply and innovation in this sector. Essential ingredients for developing these needed coordination tools with the public good in mind are market design and public goods knowledge in general. An Institute or School of Public Goods can bring together the expertise to: construct the capabilities for prioritizing public goods; design instruments for individual choice; generate theoretical knowledge, best practice guidelines and concrete proposals; train public goods professionals; and evaluate ongoing projects; in order to make public goods a vibrant sector of society.
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Abstract: A production market with given preferences, technology and competition technology is vulnerable if it admits both perfect competition and monopoly or oligopoly. Under decreasing returns, sunk costs combined with a potential for... more
Abstract: A production market with given preferences, technology and competition technology is vulnerable if it admits both perfect competition and monopoly or oligopoly. Under decreasing returns, sunk costs combined with a potential for monopoly profits ...
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Trade and investment liberalization policies put in place in the 1980's ushered in a new era of globalization and currently form the mainstay of global development policy. However, underdevelopment itself originated in the... more
Trade and investment liberalization policies put in place in the 1980's ushered in a new era of globalization and currently form the mainstay of global development policy. However, underdevelopment itself originated in the context of globalization in the 19th century. I first summarize the ...
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In an industrial market economy, the interaction between monopolistic and competitive sectors results in within-country productivity differences, inequality and inefficiency. We demonstrate this using a two-sector mass market economy... more
In an industrial market economy, the interaction between monopolistic and competitive sectors results in within-country productivity differences, inequality and inefficiency. We demonstrate this using a two-sector mass market economy model. The monopolistic sector represents large-scale, mass production and is associated with innovation and market power, while the competitive sector represents small-scale production and engages instead in technological absorption. The endogenous dynamics of technological change between the two sectors generate a steady state technology gradient, with the competitive sector lagging behind. This technology gradient is a key endogenous feature of the industrial market economy, associated with economic growth, that generates inequality and inefficiency. Inequality is generated in two ways: innovation profits are concentrated among a few owners of large-scale innovation, while economy-wide wage levels reflect the lagging small-scale technological level. The model shows there are innovative-distributive policies that can increase efficiency in production, innovation, and absorption, and restore income equality, increasing wages and reducing profits. A cointegration and weak exogeneity panel study of the US states between 1997 and 2011 corroborates that the large-scale sector drives aggregate employment, wages and inequality, while top income inequality makes the technology gradient steeper.
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Research Interests: Economics, Development Economics, Macroeconomics, Health Economics, Poverty, and 15 moreEconomic Growth, Political Science, Child Development, Human Development, Human Capital, Latin America, Population, Poverty traps, Market Failure, Increasing returns, Human Development (humanity), Secondary School, World Development, Poverty Trap, and Multiple equilibria
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The fact that some firms innovate while others absorb technologies creates income differences and inefficiencies both within and between countries. We model the industrial market economy, characterized by the coexistence of: 1) large... more
The fact that some firms innovate while others absorb technologies creates income differences and inefficiencies both within and between countries. We model the industrial market economy, characterized by the coexistence of: 1) large firms with innovation, as in manufacturing and technology, concentrating income and wielding market power, with profits accruing to a small mass of people; and 2) small, approximately competitive firms with little innovation capacity, mainly absorbing technologies. This economy is unequal and inefficient. Free market policies are suboptimal in levels, growth rates, wages, capital accumulation and equity. Their levels depend on the steady state of the innovation-absorption dynamics between the two sectors, and can all be improved by taxing profits and subsidizing both innovation and absorption, or by lowering profit margins through a market power tax with zero equilibrium revenues. Innovators access a higher return to their investment than the interest rate. Now, consider a second industrial economy whose large scale sector absorbs technologies from the first industrial economy. The first is a developed technological leader and the second an underdeveloped technological follower, that might grow in parallel or diverge. The underdeveloped industrial economy is also inefficient and unequal. Moreover, its small scale sector lags relatively further behind than in the developed economy. Technological policies for equitable, pro-poor growth in industrial economies, developed or underdeveloped, must be two-pronged: supporting both innovation and absorption.
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The 2008 economic crisis has long-term causes that are rooted in the economic dynamics of globalization. I construct a Solow-style endogenous model of capital accumulation, technological change, trade and cheap-factor-seeking foreign... more
The 2008 economic crisis has long-term causes that are rooted in the economic dynamics of globalization. I construct a Solow-style endogenous model of capital accumulation, technological change, trade and cheap-factor-seeking foreign direct investment (FDI), based on myopic agents. Combining advanced technologies with low costs, FDI yields extraordinary profits that generate asymmetric innovation incentives that explain the following stylized facts. Globalization (a) increases capital accumulation; (b) is consistent with development, underdevelopment and miracle growth; (c) increases inequality in leading countries; (d) generates a transition path along which the interest rate diminishes if capital accumulates at a faster rate than technological change. Over the period 1980-2007, liberalization unleashed a wave of globalization, and the international sector experienced miracle growth. Profits rose to all time highs and global saving exceeded global investment. This savings glut or investment shortfall fueled a global housing appreciation, after which excessive risk in a deregulated financial market led to a financial meltdown. While restoring financial markets and reducing the housing market fallout are immediate priorities for the US, economic growth can only be recovered by restoring global investment. Lowering interest rates cannot generate very much investment, nor will consumption flows from fiscal spending. To stimulate the global economy, whole new economic sectors and technologies must be developed in advanced countries, and economic development deepened in underdeveloped countries. A global harmonization of taxes, which is eventually necessary anyway, is required to fund publicly provided goods, to balance incentives between local and international production, to reduce the polarization between developed and underdeveloped countries, to balance global markets with global governance, and to reinforce global cooperation. Developing the green energy sector is consistent with these aims.
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Welfare, market power, inequality, optimality, mass production, bienestar, poder de mercado, desigualdad, optimalidad, produccion en gran escala
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Las colecciones de Documentos de Trabajo del CIDE representan un medio para difundir los avances de la labor de investigación y para permitir que los autores reciban comentarios antes de su publicación definitiva. Se agradecerá que los... more
Las colecciones de Documentos de Trabajo del CIDE representan un medio para difundir los avances de la labor de investigación y para permitir que los autores reciban comentarios antes de su publicación definitiva. Se agradecerá que los comentarios se hagan llegar ...
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Las colecciones de Documentos de Trabajo del CIDE representan un medio para difundir los avances de la labor de investigación, y para permitir que los autores reciban comentarios antes de su publicación definitiva. Se agradecerá que los... more
Las colecciones de Documentos de Trabajo del CIDE representan un medio para difundir los avances de la labor de investigación, y para permitir que los autores reciban comentarios antes de su publicación definitiva. Se agradecerá que los comentarios se hagan llegar ...
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La aglomeración industrial es caracterizada por fuerzas centrípetas y centrífugas que pueden medirse con la variedad industrial y el promedio de firmas por ramo. Una revisión de la teoría de geografía económica explica cómo estos... more
La aglomeración industrial es caracterizada por fuerzas centrípetas y centrífugas que pueden medirse con la variedad industrial y el promedio de firmas por ramo. Una revisión de la teoría de geografía económica explica cómo estos indicadores se correlacionan con mayores ...
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Studies in Nonlinear Dynamics & Econometrics is produced by The Berkeley Electronic Press (bepress). All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or... more
Studies in Nonlinear Dynamics & Econometrics is produced by The Berkeley Electronic Press (bepress). All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, ...
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Page 1. NÚMERO 503 DAVID MAYER Y GRODECZ RAMÍREZ Ciclo de vida humano y ciclo de vida urbano: Urbanización y desarrollo económico www.cide.edu MAYO 2011 Page 2. Las colecciones de Documentos de Trabajo ...
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1. Introduction Gaspare M. Genna and David A. Mayer-Foulkes Part I: Determinants of Integration 2. What Will it Take to Build a North American Community? Gaspare M. Genna 3. The Mess They Made: How Conservatism Wrecked North America... more
1. Introduction Gaspare M. Genna and David A. Mayer-Foulkes Part I: Determinants of Integration 2. What Will it Take to Build a North American Community? Gaspare M. Genna 3. The Mess They Made: How Conservatism Wrecked North America Julian Castro-Rea 4. Immigration and Institutional Voids: North American Citizenship and Human Rights in Conflict Emma R. Norman 5. Mexico Labor Cooperation and the NAALC Institutions Kimberly A. Nolan Garcia 7. Citizenship at the Margins: The Canadian Seasonal Agricultural Worker Program and Civil Society Advocacy Christina Gabriel and Laura MacDonald 8. Organizing the Mexican Diaspora: Can it Strengthen North American Integration? Jane Bayes and Laura Gonzales 9. What Does the 2010 Affordable Care Act Mean for Securing Immigrant Health in North America? Nielan Barnes Part III: Economic and Security Issues in Integration 10. Obstacles to Security Cooperation in North America Rafael Velazquez and Roberto Dominguez 11. Secure Borders & Uncertain Trade Coral Snodgrass and Guy Gessner 12. Drug-Related Violence and Forced Migration from Mexico to the United States Eva Olimpia Arceo-Gomez 13. Wage Differentials, Public Policies, and Mexico-US Migration Ernesto Aguayo-Tellez, Arun K. Acharya and Crhistian I. Rivera-Mendoza 14. Conclusion Gaspare M. Genna and David A. Mayer-Foulkes
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Research Interests: Economics, Development Economics, Macroeconomics, Health Economics, Globalization, and 15 moreGlobal Governance, Human Development, Foreign Direct Investment, Human Capital, Conflict of Interest, Free Trade, Latin America, Poverty traps, Investment, Steady state, Global Economy, Growth rate, Liberalization, Human capital Investment, and Latin Americans
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Understanding the effort of saving as part of labor effort means that the labor value of a product is the discounted sum of the amounts of labor that produce it. Thus, the price of any product is the sum of its labor value plus the sum of... more
Understanding the effort of saving as part of labor effort means that the labor value of a product is the discounted sum of the amounts of labor that produce it. Thus, the price of any product is the sum of its labor value plus the sum of discounted profits integrated in its costs and sale. Hence surplus value is identical with profits, whose existence derives from market power. Integrating into conventional economics an ethical analysis, political economy, and a basically pragmatic perspective, achieves an initial synthesis of Marxism and conventional economics. Since Walrasian analysis assumes zero profits, it also assumes zero surplus value, inconsistently with the actual existence of profits. Technological innovation is the main source of market power. A model with technological differences between large and small-scale sectors yields an analysis of the industrial economy with features very similar to Marx’s surplus value and low wages, in which capital is primarily technology. It also shows that the technological level of small producers is a public good. Ethical analysis distinguishes between optima that can only be achieved by perfectly ethical participants and second-best optimums with selfish participants. This analysis can in principle also be applied to the State, which also produces surplus value, alienation, and oppression. Together with results on underdevelopment as a poverty trap in technology and in human capital, this means that public policies in technology and education are fundamental to eliminate poverty and achieve sustainable development. These must also be consistent with the rural urban transition. We propose some minimum points of economic policy to achieve egalitarian technological development. Eliminating the abuse of power encompasses both democratic and socialist ideals and ethics and requires developing both political and economic equality.
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Entender el esfuerzo del ahorro como parte del esfuerzo laboral significa que el valor trabajo de un producto es la suma descontada de las cantidades de trabajo que lo producen. Así, el precio de cualquier producto es la suma del valor... more
Entender el esfuerzo del ahorro como parte del esfuerzo laboral significa que el valor trabajo de un producto es la suma descontada de las cantidades de trabajo que lo producen. Así, el precio de cualquier producto es la suma del valor trabajo más la suma de ganancias descontadas integradas en sus costos y venta. Esto es, la plusvalía es idéntica con las ganancias, cuya existencia deriva del poder de mercado. Integrar además a la economía convencional un análisis ético, economía política, y una perspectiva básicamente pragmática, logra un comienzo de síntesis entre marxismo y economía convencional. Puesto que el análisis Walrasiano asume que no hay ganancias, asume que no hay plusvalía, inconsistentemente con la realidad económica. La innovación tecnológica es la fuente principal de poder de mercado. Un modelo de diferencias tecnológicas entre sectores de gran y pequeña escala reproduce un análisis de la economía industrial con características muy semejantes a la plusvalía y salarios bajos de Marx, en que el capital es principalmente tecnología. Este muestra además que el nivel tecnológico de los pequeños productores es un bien público. El análisis ético distingue entre óptimos que sólo logran participantes perfectamente éticos y óptimos segundo mejores con participantes egoístas. Este análisis puede aplicarse también al estado, que también produce plusvalía, enajenación y opresión. Conjuntamente con resultados sobre el subdesarrollo como trampa de pobreza en tecnología y en capital humano, esto significa que las políticas públicas en tecnología y educación son fundamentales para eliminar la pobreza y lograr el desarrollo sostenible. Estas deben también ser consistentes con la transición rural urbana. Proponemos algunos puntos mínimos de política económica para lograr un desarrollo tecnológico igualitario. Eliminar el abuso del poder abarca los ideales y ética tanto democráticos como socialistas y requiere desarrollar igualdad tanto política como económica.
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Entender el esfuerzo del ahorro como parte del esfuerzo laboral significa que el valor trabajo de un producto es la suma descontada de las cantidades de trabajo que lo producen. Así, el precio de cualquier producto es la suma del valor... more
Entender el esfuerzo del ahorro como parte del esfuerzo laboral significa que el valor trabajo de un producto es la suma descontada de las cantidades de trabajo que lo producen. Así, el precio de cualquier producto es la suma del valor trabajo más la suma de ganancias descontadas integradas en sus costos y venta. Esto es, la plusvalía es idéntica con las ganancias, cuya existencia deriva del poder de mercado. Integrar además a la economía convencional un análisis ético, economía política, y una perspectiva básicamente pragmática, logra un comienzo de síntesis entre marxismo y economía convencional. Puesto que el análisis Walrasiano asume que no hay ganancias, asume que no hay plusvalía, inconsistentemente con la realidad económica. La innovación tecnológica es la fuente principal de poder de mercado. Un modelo de diferencias tecnológicas entre sectores de gran y pequeña escala reproduce un análisis de la economía industrial con características muy semejantes a la plusvalía y salarios bajos de Marx, en que el capital es principalmente tecnología. Este muestra además que el nivel tecnológico de los pequeños productores es un bien público. El análisis ético distingue entre óptimos que sólo logran participantes perfectamente éticos y óptimos segundo mejores con participantes egoístas. Este análisis puede aplicarse también al estado, que también produce plusvalía, enajenación y opresión. Conjuntamente con resultados sobre el subdesarrollo como trampa de pobreza en tecnología y en capital humano, esto significa que las políticas públicas en tecnología y educación son fundamentales para eliminar la pobreza y lograr el desarrollo sostenible. Estas deben también ser consistentes con la transición rural urbana. Proponemos algunos puntos mínimos de política económica para lograr un desarrollo tecnológico igualitario. Eliminar el abuso del poder abarca los ideales y ética tanto democráticos como socialistas y requiere desarrollar igualdad tanto política como económica.
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Understanding the effort of saving as part of labor effort means that the labor value of a product is the discounted sum of the amounts of labor that produce it. Thus, the price of any product is the sum of its labor value plus the sum of... more
Understanding the effort of saving as part of labor effort means that the labor value of a product is the discounted sum of the amounts of labor that produce it. Thus, the price of any product is the sum of its labor value plus the sum of discounted profits integrated in its costs and sale. Hence surplus value is identical with profits, whose existence derives from market power. Integrating into conventional economics an ethical analysis, political economy, and a basically pragmatic perspective, achieves an initial synthesis of Marxism and conventional economics. Since Walrasian analysis assumes zero profits, it also assumes zero surplus value, inconsistently with the actual existence of profits. Technological innovation is the main source of market power. A model with technological differences between large and small-scale sectors yields an analysis of the industrial economy with features very similar to Marx’s surplus value and low wages, in which capital is primarily technology. It also shows that the technological level of small producers is a public good. Ethical analysis distinguishes between optima that can only be achieved by perfectly ethical participants and second-best optimums with selfish participants. This analysis can in principle also be applied to the State, which also produces surplus value, alienation, and oppression. Together with results on underdevelopment as a poverty trap in technology and in human capital, this means that public policies in technology and education are fundamental to eliminate poverty and achieve sustainable development. These must also be consistent with the rural urban transition. We propose some minimum points of economic policy to achieve egalitarian technological development. Eliminating the abuse of power encompasses both democratic and socialist ideals and ethics and requires developing both political and economic equality.
Research Interests:
We face a public goods challenge spanning urgent environmental, economic and social problems on a national and global scale. The question arises, what is the best way to produce public goods in a market economy setting? Their... more
We face a public goods challenge spanning urgent environmental, economic and social problems on a national and global scale. The question arises, what is the best way to produce public goods in a market economy setting? Their under-provision is due not only to a lack of political will, but to the inherent market failures in the public goods sector. Opportunely, information technologies provide new means for building marketplaces that can coordinate business, government, and individual preferences to raise public goods demand and therefore also supply and innovation in this sector. Essential ingredients for developing these needed coordination tools with the public good in mind are market design and public goods knowledge in general. An Institute or School of Public Goods can bring together the expertise to: construct the capabilities for prioritizing public goods; design instruments for individual choice; generate theoretical knowledge, best practice guidelines and concrete proposals; train public goods professionals; and evaluate ongoing projects; in order to make public goods a vibrant sector of society.
Research Interests:
The Random Forest Classifier and Regressor, machine learning tools, are applied to understanding the interaction between municipal Firm Growth and Population Growth/Migration in Mexico for the period 2012-2016. Preliminary exploration of... more
The Random Forest Classifier and Regressor, machine learning tools, are applied to understanding the interaction between municipal Firm Growth and Population Growth/Migration in Mexico for the period 2012-2016. Preliminary exploration of the data and the results of this analysis show that Firm and Population Growth are deeply interlinked in Mexico. Firm numbers grow exponentially with municipal population. Migration and growth in firm numbers are very costly processes in which firms establish workplaces and find markets, while people find work, build homes, find schools and so on, all at the same time. It is no surprise that the construction sector is very prominent in Mexico. Indeed many migrant workers first become construction workers when they move. We conclude that:
An integral part of development policy in Mexico must be facilitating and planning ahead for the movement of the population and urbanization, in a flexible but effective format.
A competitive context rewarding excellence in public services can be defined across municipalities that can help to make both public service and the growth process more efficient.
An integral part of development policy in Mexico must be facilitating and planning ahead for the movement of the population and urbanization, in a flexible but effective format.
A competitive context rewarding excellence in public services can be defined across municipalities that can help to make both public service and the growth process more efficient.
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Development, underdevelopment and globalization have had a common history since the Great Discoveries led to colonization, trade, and with the Industrial Revolution, to unequal technological development. This book first summarizes the... more
Development, underdevelopment and globalization have had a common history since the Great Discoveries led to colonization, trade, and with the Industrial Revolution, to unequal technological development. This book first summarizes the long term history of globalization. It then develops a theory of multiple equilibria in technological change (technological poverty traps) to explain how the market economy can generate wide income differences between countries. Next, it shows how poverty traps in education and health can further widen inequality. It then shows that technology traps can exist in the context of trade, explaining the impact of the colonial diktat on the emergence of underdevelopment. Technology traps can also exist in the context of foreign direct investment, characterizing contemporary globalization. Finally, the industrial or mass market economy in general is shown to be characterized by a technology gradient akin to a poverty trap that generates inefficiency and inequality. Free market policies need to be complemented with distributive and innovative policies to improve economic performance and equality. The necessary tax funding can be provided at the national level compatibly with globalization under appropriate International agreements.