Achieving Dynamism in an Anaemic Europe (eBook)

Luigi Paganetto (Herausgeber)

eBook Download: PDF

2015 | 2015
VI, 302 Seiten
Springer International Publishing (Verlag)
978-3-319-14099-5 (ISBN)

Infos

This book explores the reasons behind Europe's poor performance in terms of overall growth and its progressively diminishing role in the global context. Recognizing that the big challenge is to restore confidence and hope in Europe, potential solutions are discussed. The volume comprises a selection of contributions to the XXVI Villa Mondragone International Economic Seminar (Rome, 2014), the most recent of a series of seminars that have provided outstanding scholars with an opportunity to discuss key topics in economic research.

In recent years the persistence of high unemployment and low growth has increased the Euroscepticism that has targeted the euro and the Brussels bureaucracy. Readers will find this book a fascinating source of information on current thinking regarding topics such as European industrial policy, European governance, unemployment, the euro and competitiveness, trade and financial integration, the Transatlantic Trade and Investment Partnership, anticorruption policies, and energy and climate policies. In particular, it examines the structural reforms and commitment to development that will be required for Europe to become a region characterized by social justice, dynamism, and opportunities for all.

Luigi Paganetto is Emeritus Professor and Full Professor of European Economics at the University of Rome Tor Vergata, and President of the Economics Foundation Tor Vergata for Economic Research. He participates as an expert in European and International working groups. He is the author of articles and books in the fields of Macroeconomics, International Economics, Italian and European Industrial Economics, and Energy and Environment.

Inhalt

Contents 5
1 Perspectives on Growth, Trade, and Social Agenda Expenditures in the Eurozone During the Rest of this Decade, With and Without the EU-US Transatlantic Trade and Investment Partnership (TTIP) 7
Abstract 7
1 Introduction 8
2 The Economic Model 8
3 The Outcome for GDP by Expenditure 9
4 Projections of the National Savings Share in GDP 12
5 Projections of Net Exports as a Share in GDP 13
6 Projections of Government Expenditure 14
7 Potential Trade Expansion with TTIP 16
8 Conclusions 16
References 17
2 Can Trade Become Again an Engine of Growth for Europe and the World? 18
Abstract 18
1 Introduction 19
2 Trade as an Engine of Global Growth 19
3 The Puzzle of Lower Trade Elasticities 21
4 Unlocking the Trade Potential 24
5 The Transatlantic Trade and Investment Partnership (TTIP): A 21st Century Trade Agreement? 27
6 Conclusions 30
References 31
3 Trade Margins and Exchange Rate Regimes: New Evidence from a Panel VARX Model 33
Abstract 33
1 Introduction 33
2 Empirical Strategy 36
2.1 Data 36
2.2 Panel VARX 37
2.3 Diagnostic Tests 39
3 Results 41
3.1 Real Shocks 45
3.2 Monetary Policy Shocks 48
4 Conclusions 50
References 51
4 Rebalancing and the Euro 53
Abstract 53
1 Introduction 53
2 What Is Driving the Euro Area Current Account Surplus? 54
3 Why Has the Euro Exchange Rate Been so Resistant? 58
4 Why Is It so Difficult Politically to Rein in the Current Account Surplus? 62
5 Concluding Remarks 64
Appendix: Econometrics 65
Methodology and Data 65
Estimation Results 67
References 71
5 What Kind of Financial Integration Under Banking Union? 72
Abstract 72
1 Introduction 73
2 Main Benefits of Financial Integration 73
3 Main Elements of the Banking Union 75
4 Financial Integration at the Euro Area Level 76
5 Financial Integration at Disaggregated Level and Possible Impact of the Banking Union 80
5.1 Developments Before the Crisis 81
5.2 Developments During the Crisis 85
5.3 Developments Through the Cycle 89
6 Conclusions 91
References 93
6 Structural Reforms in the Eurozone: A Case of Self-defeating Expectations? 95
Abstract 95
1 Introduction 95
2 Relevant Literature 97
3 The Basic Model 103
3.1 Firms Producing the (Internationally) Tradable Good 104
3.2 Firms Producing the (Internationally) Non-tradable Good 105
3.3 Households 105
3.4 Government 106
4 Equilibrium, Expectations and Rationality 107
4.1 Equilibrium Conditions 107
4.2 Number of Firms and Price of Licenses in the Non-tradable Sector 109
4.3 Pessimistic Expectations 110
4.4 Optimistic Expectations 111
4.5 Self-defeating Expectations 112
5 Three Realistic Extensions of the Model 113
5.1 Probability of a Regulatory Change 113
5.2 Distributive Conflict 114
5.3 Possibility of Default 116
6 Closing Remarks 118
Appendix 119
Derivation of the Equilibrium Output of the Representative Firm Operating in the Non-tradable Sector and of the Equilibrium Price of its Output 119
Numerical Example 120
Pessimistic Expectations 120
Optimistic Expectations 121
References 121
7 Transatlantic Austerity 2010--13. A Comparative Assessment 124
Abstract 124
1 Introduction 124
2 Gauging Austerity 128
2.1 An Austerity Indicator 129
2.2 Timing and Intensity 130
2.3 Composition 134
3 Assessing Austerity 136
3.1 An Assessment Framework 136
3.2 Public Finances 138
3.3 Interest Rates 142
3.4 Output and Growth: Where Do We Stand, and Why? 145
3.5 Unemployment 153
4 Conclusions 159
Appendix 160
References 161
8 What Went Wrong with Western Europe? An Essay on the Causes of Its Economic Decline and on Possible Remedies 163
Abstract 163
1 Introduction 163
2 The Growth of Government Expenditures and Real GDP in Western Europe Since the 1950s 164
3 The Effects According to Classical Economic Theory of an Increase in Government Expenditures on the Cost of Labour 167
4 Taxes on Wages are Taxes on Profits: Their Effects on Capital Accumulation, Foreign Direct Investment, Private Employment and Economic Growth According to Classical Economic Theory 169
5 Tensions in the Euro Area and Important Differences in EU Countries 172
6 A 10-year Plan of Reductions in Government Expenditures Keynes Versus the Proponents of Austerity and Concluding Comments
References 175
9 Revitalising Europe's Economy: Towards Growth 176
Abstract 176
1 Introduction 176
2 Highlights of the Main Economic Challenges 178
3 Overview of the Europe 2020 Strategy 179
4 Assessment of Europe 2020 179
5 Suggestions for a New Approach to Europe 2020 181
6 Deepening the EU Single Market for Services, Networks and the Digital Economy 183
7 Finance for Growth 184
8 Greening of Growth 185
9 Imbalances Versus Integration 185
10 Finding the Appropriate Policy Mix 186
11 Conclusions 192
Appendix 192
References 194
10 The Corporatist Antagonism to Economic Dynamism 196
Abstract 196
1 The Corporatist Challenge to Open Economic Institutions 196
1.1 The Response to the `Social Question' 198
1.2 Political Parties and the ``Unity of the State'' 199
1.3 Varieties in Corporatism 200
1.4 Corporatism, Pluralism and the Dispersion of Knowledge 200
1.5 Corporatism and Fascism 202
2 The Political Myths of Corporatism 203
3 The Myth of Unity 204
3.1 The Hostility to Constitutional Limitations and Legal Structures 204
4 The Myth of Populism 206
4.1 Corporatism in the Mirror of Populism 206
4.2 Who Are the People? 208
5 The Charismatic Forms of Power 208
5.1 The State, the Common Good and Political Power 208
6 The Myth of Politics as Epic 209
6.1 Epics, Youth and Energy 209
7 The Myth of Progress Against Capitalist Individualism 211
7.1 The Evolution from the Reactionary Thought to Modern Neocorporatism 211
8 The Myth of Autarky, from List to Keynes 214
8.1 A Distant Mirror: Dictator Francia a Hero in Carlyle 214
8.2 List: The National System of Economy 215
8.3 Keynes Through Prebisch: The Closed Economy 216
9 The Myth of Industrialization, the Creation of a National Bourgeoisie and the Iron Law of Oligarchies 217
9.1 Pareto's Theory of the Circulation of Elites 217
9.2 The Iron Law of Oligarchy 219
10 The Myth of Politics as the Dialectics of Friend-Enemy 220
10.1 The ``Anti'' Character of Corporatism 221
10.2 The Opposition to Parliaments and Political Parties 222
11 The Exhaustion and Revival of the Corporatist Organization of Labor 223
11.1 Obligatory Collective Agreements Between Trade Unions and Business Organizations 223
11.2 Corporatism in the International Labor Organizations 224
12 The Economics of Regulation in Corporatism 226
References 227
11 Growing-by-Unleashing Grassroots Entrepreneurship and Alibaba Innovations 230
Abstract 230
1 Introduction 230
2 From ``Small Is Beautiful'' to ``Small Is the New Big'' 231
3 A New Growth Model: Growing-by-Unleashing Grassroots Entrepreneurship 234
4 Alibaba's Creation of Businesses and Jobs 236
5 Credibility, Trust and the Missing Microfinance Market 239
6 The Importance of Rules of Games 243
7 Alibaba's Next 10 Years 245
8 Concluding Remarks 247
Ackowledgments 248
References 248
12 The Evolution of European Energy and Climate Policies: The View of a Market Player 250
Abstract 250
1 Introduction 251
1.1 Unity Makes Strength 251
1.2 Climate on the Rise 252
1.3 A Long-Lasting Marriage? 252
1.4 Decarbonization, the Mantra of European Energy Policy 253
2 Where We Are 253
2.1 Progress on the Internal Energy Market 254
2.2 The Triple-20 Objective 254
3 Impact on the Power Sector 257
4 Lessons Learnt 260
4.1 Unexpected Circumstances or Policy Failures? 261
4.2 The RES Revolution 262
4.3 RES Impact on Wholesale Markets 264
5 Thinking Ahead 268
5.1 Competitiveness Is Back on the EU's Agenda 269
5.2 Toward a Low-Carbon Future 269
6 Remedies 270
6.1 A Dynamic Approach to RES 270
6.2 An `Energy Plus Capacity' Market 270
6.3 Strengthening the EU ETS 271
Acknowledgements 272
References 272
13 Towards a Fair and Rigorous International Emissions Trading System: A Blueprint for Success 274
Abstract 274
1 Introduction 274
2 Simplification 275
3 Finance 276
4 The European Unions' Responsibility and Capacity to Pay 276
5 The United States' Responsibility and Capacity to Pay 277
6 The China's Responsibility and Capacity to Pay 278
7 The India's Responsibility and Capacity to Pay 279
8 Enforceability 280
9 Risk of Underachievement 281
10 Wrapping It up 281
14 Corruption of the Institutional System: Remedies 283
Abstract 283
1 The ``Subjective'' Approach 283
2 The ``Objective'' Approach 284
3 ``Objective'' Corruption to be Removed 284
3.1 Excessive and Inaccessible Legislation 285
3.2 Cumbersome Administrative Procedures and Broad Discretionary Power 286
3.3 Ineffective Public Controls 286
3.4 Public Contracts 287
4 Other Cases of ``Objective'' Corruption to be Overcome 287
5 Conclusion 288
References 288
15 Governance, Moral and Economic Values 289
Abstract 289
1 Introduction 289
2 Measuring Corruption 290
3 Components of Corruption 292
4 Sanctions and Option Value 294
5 The Costs of Repression 296
6 Motivations and Incentives 298
References 299

Produkt-Details

• Erscheint lt. Verlag: 9.4.2015
• Zusatzinfo: VI, 302 p. 89 illus.
• Verlagsort: Cham
• Sprache: englisch
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre
• Schlagworte: Alibaba innovations • Anticorruption policy • banking union • Carbon emission markets • Corruption and growth • Energy and climate policies • EU Integration • European Governance • European Union • Euroscepticism • Eurozone • Growth in Europe • Mass flourishing • Transatlantic trade and investment deal • XXVI Villa Mondragone International Economic Seminar
• ISBN-10: 3-319-14099-X / 331914099X
• ISBN-13: 978-3-319-14099-5 / 9783319140995