Adam Smith’s economic system followed his philosophical convictions. The policy conclusions came ... more Adam Smith’s economic system followed his philosophical convictions. The policy conclusions came before the analysis. To support his policy of Free Trade, or rather, the ‘system of liberty’, Adam Smith gradually built up his economic system , from the Lectures on Jurisprudence to the Wealth of Nations. In the process, he had to exorcise the impact of unemployment. This paper shows how Smith was enabled to come to such a conclusion. Smith argued that employment was set by technology and prior capital accumulation. Even if Government wished to do so, it could not increase aggregate employment. Much of the paper concerns the various ways in which Smith made such an argument plausible. It also shows how Smith is related to the general equilibrium models of today.
Universal environmental policies adopt strategies that enhance and encourage the production and u... more Universal environmental policies adopt strategies that enhance and encourage the production and usage of electric vehicles (EVs). Universal cooperation is evident in the framework of agreements or protocols so as to successfully lead countries towards the predetermined goals. The question is whether this trend can reduce global warming or CO2 emissions worldwide. By adopting game theory, this study analyses electricity carbon life cycle in leading EV countries. Results show that although the spread of EVs in Europe and the USA can mitigate carbon emissions, the production and use of electric vehicles in some countries, such as China and India, become a new source of such emissions. This reverse effect is due to the emission of greenhouse gases from electricity sources in these countries. Game theory also suggests that countries with unclean electricity sources should reconsider their plans to produce and use EVs. This study confirms that although carbon emission and global warming a...
Hast thou observed him who belies his religion That is he who repels the orphan And urges not the... more Hast thou observed him who belies his religion That is he who repels the orphan And urges not the feeding of the needy Ah! woe be unto worshippers Who are heedless of their prayers Who would be seen at worship Yet refuse small kindness Surah al Maaun Al-Quran To our ...
This paper uses annual US data to examine the causal relationship between immigration and real GD... more This paper uses annual US data to examine the causal relationship between immigration and real GDP. Despite its implications for policy, a statistically robust relationship between these two series has been difficult to pin down. Our tests reveal that both the series are break-stationary. Therefore, we apply the Gregory-Hansen (1996) residual based cointegration approach to these series to establish a long run relation between them in the presence of regime shifts. Standard Granger causality test shows that the relation flows from economic growth to immigration in the short run, but not the reverse. However, the Error Correction Models within Vector Error Correction framework shows a bidirectional feedback relationship in the long run which is intuitively more appealing.
This account of the Asian Financial Crisis is meant to provide a quick introduction to the role o... more This account of the Asian Financial Crisis is meant to provide a quick introduction to the role of Banking and to suggest by this example that real world events can be understood without much theoretical machinery.1 Throughout I have relied primarily on financial journalists and secondarily on the expository accounts of economists. The journalists provided a clear and comprehensible account and the economists added some details and historical depth; but the economists added no significant theoretical insight. I spent, or rather wasted, some years of reading on Money and Banking, convinced that herein must lie a great mystery. Eventually it dawned on me that the only complexity lay in the execution of policy, not at all in the principles that should guide it. This field is thus another illustration of the need for sound judgement in economics. The forthright words of an experienced banker,— whose straightforward analysis, laced with a variety of delightful anecdotes and helpful tables, is good reading— gave me considerable comfort.2
Adam Smith’s economic system followed his philosophical convictions. The policy conclusions came ... more Adam Smith’s economic system followed his philosophical convictions. The policy conclusions came before the analysis. To support his policy of Free Trade, or rather, the ‘system of liberty’, Adam Smith gradually built up his economic system , from the Lectures on Jurisprudence to the Wealth of Nations. In the process, he had to exorcise the impact of unemployment. This paper shows how Smith was enabled to come to such a conclusion. Smith argued that employment was set by technology and prior capital accumulation. Even if Government wished to do so, it could not increase aggregate employment. Much of the paper concerns the various ways in which Smith made such an argument plausible. It also shows how Smith is related to the general equilibrium models of today.
Universal environmental policies adopt strategies that enhance and encourage the production and u... more Universal environmental policies adopt strategies that enhance and encourage the production and usage of electric vehicles (EVs). Universal cooperation is evident in the framework of agreements or protocols so as to successfully lead countries towards the predetermined goals. The question is whether this trend can reduce global warming or CO2 emissions worldwide. By adopting game theory, this study analyses electricity carbon life cycle in leading EV countries. Results show that although the spread of EVs in Europe and the USA can mitigate carbon emissions, the production and use of electric vehicles in some countries, such as China and India, become a new source of such emissions. This reverse effect is due to the emission of greenhouse gases from electricity sources in these countries. Game theory also suggests that countries with unclean electricity sources should reconsider their plans to produce and use EVs. This study confirms that although carbon emission and global warming a...
Hast thou observed him who belies his religion That is he who repels the orphan And urges not the... more Hast thou observed him who belies his religion That is he who repels the orphan And urges not the feeding of the needy Ah! woe be unto worshippers Who are heedless of their prayers Who would be seen at worship Yet refuse small kindness Surah al Maaun Al-Quran To our ...
This paper uses annual US data to examine the causal relationship between immigration and real GD... more This paper uses annual US data to examine the causal relationship between immigration and real GDP. Despite its implications for policy, a statistically robust relationship between these two series has been difficult to pin down. Our tests reveal that both the series are break-stationary. Therefore, we apply the Gregory-Hansen (1996) residual based cointegration approach to these series to establish a long run relation between them in the presence of regime shifts. Standard Granger causality test shows that the relation flows from economic growth to immigration in the short run, but not the reverse. However, the Error Correction Models within Vector Error Correction framework shows a bidirectional feedback relationship in the long run which is intuitively more appealing.
This account of the Asian Financial Crisis is meant to provide a quick introduction to the role o... more This account of the Asian Financial Crisis is meant to provide a quick introduction to the role of Banking and to suggest by this example that real world events can be understood without much theoretical machinery.1 Throughout I have relied primarily on financial journalists and secondarily on the expository accounts of economists. The journalists provided a clear and comprehensible account and the economists added some details and historical depth; but the economists added no significant theoretical insight. I spent, or rather wasted, some years of reading on Money and Banking, convinced that herein must lie a great mystery. Eventually it dawned on me that the only complexity lay in the execution of policy, not at all in the principles that should guide it. This field is thus another illustration of the need for sound judgement in economics. The forthright words of an experienced banker,— whose straightforward analysis, laced with a variety of delightful anecdotes and helpful tables, is good reading— gave me considerable comfort.2
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