Search Results (9)

In recent years, the global economy has been hit by a sequence of severe shocks that affected the two largest economies, the USA and the Euro Area, severely. Uncertainties about the future abound. While the challenges are similar for both economies and the policy tools resemble each other, they apply to different economic landscapes. What can they learn from each other? This paper looks at the basic structural facts, the nature of uncertainty shocks, and the efficiency of policy tools in the two economies. The key to understanding recent developments is uncertainty. This paper argues that the channel through which uncertainty influences inflation, wage cost, and unemployment is the markup firms charge to cover their cost of capital. While the measurements of uncertainty are uncertain, adding a proxy for uncertainty can improve the estimates of the basic New Keynesian model. The Federal Reserve Bank has been more successful because it operates in a more integrated capital market. In the Euro Area, uncertainty is higher than in the US and this could make disinflation in Europe more painful in terms of unemployment. Full article

Unemployment insurance provides temporary cash benefits to eligible unemployed workers. Benefits are sometimes extended by discretion during economic slumps. In a model that features temporary benefits and sequential job opportunities, a worker’s reservation wages are studied when policymakers can make discretionary extensions to benefits. A worker’s optimal labor-supply choice is characterized by a sequence of reservation wages that increases with weeks of remaining benefits. The possibility of an extension raises the entire sequence of reservation wages, meaning a worker is more selective when accepting job offers throughout their spell of unemployment. The welfare consequences of misperceiving the probability and length of an extension are investigated. Properties of the model can help policymakers interpret data on reservation wages, which may be important if extended benefits are used more often in response to economic slumps, virus pandemics, extreme heat, and natural disasters. Full article

This study aims to help managers develop a proper strategy and policy for their company’s future. After the global COVID-19 pandemic, developed countries decided to change their production and relocate and re-industrialize. The U.S.’s big electronics and automobile companies are not an exception to this rule. The lithium batteries are the main instrument of mobile phone and electric vehicles. The leading lithium battery supplier for the U.S mobile phone companies is China. Argentina, Bolivia, and Chile (in South America) have some of the largest lithium mines in the world; these countries are known as the lithium triangle. Among the 86 million tonnes of lithium resources worldwide, 49.9 million tonnes exist in this area. The researchers in this study surveyed the best country for constructing a battery for companies in the U.S. Because of the growth of electric vehicles and their use of the lithium battery, the world is facing astronomical prices for lithium. To emphasize this issue and help managers create good policy, this study combined multiple methods. The improved suitability-feasibility-acceptability (SFA) strategy is integrated with the Bayesian best-worst method (BBWM) and measurement of alternatives and rankings according to compromise solution (MARCOS) multicriteria methods to determine the best destination. For comparison, based on the SFA strategy, seven criteria are introduced: commercially viable reserves, national minimum wage, corporate income tax, accessibility to mining companies, accessibility to the waterway, population, and political stability index. The Bayesian BWM analysis reveals that the foremost factor is corporate income tax, whereas MARCOS’s findings indicate that Chile is the best country to construct the lithium battery industry. To verify the proposed approach, a comparison analysis also is performed. Full article

This article examines access to an economically important forest product (Brazil nuts) and its relationship with livelihood strategies in the Cazumbá–Iracema Extractive Reserve (CIER), Acre, Brazil. The objective is twofold: (i) to clarify how social mechanisms regulating access to Brazil nuts operate and (ii) to analyse the relationship between differential access to Brazil nuts and livelihood diversification in terms of cash income. For this, we conducted 55 semi-structured interviews with household heads in three rubber tapper (seringueiro) communities. Our findings indicate that Brazil nuts are important to seringueiro livelihoods, although both access to Brazil nuts and livelihood strategies are highly variable between households and communities. Limited access to Brazil nuts is partly overcome through informal arrangements and investment in wage labour, swidden agriculture, and cattle raising, as part of highly diversified livelihood portfolios. However, restrictions to agriculture and cattle raising generate considerable tensions between many seringueiros and environmental managers. We highlight the importance of viewing livelihood diversification and adaptability as important components of the long-term viability of the extractive reserve model, particularly in the context of the growing uncertainties and risks associated with accelerating climate and socio-environmental change as well as amidst ongoing political dynamics in Brazil. Full article

The new phenomenon called sharing or collaborative consumption emerged a decade ago and is continuously growing. It creates new possibilities for society, and especially for business, is beneficial for the environment, makes more efficient use of resources, and presents a new competitive business model. The scientific literature lacks a more in-depth analysis of the factors influencing sharing activity growth; therefore, the paper’s authors attempt to fill this gap. The authors aim to identify the factors affecting the use of sharing platforms. To reach the goal, the authors developed a regression model and constructed a list of 71 variables. The study used monthly United States data from January 2017 to June 2020 from the publicly available Federal Reserve Economic Data (FRED)and Google trends databases. The comparison to other indexes proves that the proposed index, representing the number of visits to sharing platforms (SEP), is a unique one. The first index allowed us to revise the sharing activity monthly. The authors identified that variables such as wage level, social network users, import level, and personal consumption are critical in affecting the number of visits to sharing platforms. The presented framework could be helpful for practitioners and policymakers analysing the stimulation of sharing or collaborative consumption. It includes indicators representing different areas, such as society, technology, and country, and allows for monthly investigations. Such activity was evident for a long time when online platforms contributed to its wider accessibility. The results help to forecast the number of visits monthly. Sharing is still an emerging area for research; thus, the authors tried to explore the phenomenon of sharing to expand the conceptual level of knowledge. Full article

This study aimed to investigate the socio-economic benefits stemming from bush clearing and restoration projects conducted in the Lephalale municipality, within the Limpopo Province of South Africa. The study was conducted at two sites: the D’Nyala Nature Reserve and a nearby local village, Shongoane. A qualitative thematic content analysis approach and semi-structured interviews were used to gather data from 14 purposively selected participants between the ages of 22 and 55 (male = 9 and female = 5). The results indicated that the nature reserve benefited from the project via the improved visibility of the landscape features and game viewing, which made the reserve more attractive for tourists and resulted in increased revenue. The costs of buying feed for game could also be curbed since the grazing capacity increased. Since the nature reserve sourced temporary labour from the local village to execute the project, the community benefited in terms of members being able to earn a wage, which led to an improvement in their livelihoods. Another indirect benefit was the morale and behavioural changes observed amongst community members. It was obvious that the socio-economic benefits derived from projects such as these far outweigh the negatives and that there is every reason to institute projects of a similar nature elsewhere. Full article

This study explored the shift in land use from livestock farming to game farming in the Eastern Cape, South Africa, from a social-ecological regime shift perspective. A regime shift can be defined as a large, persistent change in the structure and function of the intertwined social and ecological components of a landscape. This research focused on the Amakhala game reserve as a case study to understand how the shift affected the provision of ecosystem services and human wellbeing. We used remote sensing techniques to quantify changes in vegetation and found evidence of vegetation recovery following the shift. We then conducted interviews with both landowners and farmworkers and used participatory mapping to understand their perceptions of the main drivers and social-ecological impacts of the shift in land use. Social narratives revealed stark differences in different stakeholders’ perceptions, highlighting that the change in land use had varied implications for, and were perceived differently by, different stakeholders. Farmworkers emphasized changes in social structures that weakened community bonds and erased valued connections to the land. At the same time, they increased employment of women, skills development, and increased wages as benefits of the new game farming regime. Landowners, on the other hand, indicated financial gains from the land use change. The transition therefore resulted in trade-offs that surfaced as social, economic, and cultural losses and gains. These changes, especially in social relationships and community structures, have implications for resilience and possible future pathways of development in the region. Full article

The permanence of slave labour until the 16th century was a lasting legacy of the late feudal colonization of the Mallorca Island. Through a large set of probate inventories and accounting books, we have documented the use of a great deal of slaves in farming large noble estates during the 14th and 15th centuries. The defeat of the peasant revolt of 1450–1454 offered to nobles and patricians the opportunity to seize much of the land previously colonized by Mallorcan peasants. This creation of a dispossessed peasantry, combined with new trade demands, led to a transition from slave-powered manorial farms to capitalist olive oil-exporting estates that took advantage of the low-wage workforce reserve. A peculiar feature was the massive use of women’s gangs as olive pickers when olive oil became the main cash-crop exported from the 16th century onwards. By linking changes in work and land uses, this study brings to Southern Europe the debate over the driving forces of the emergence of agrarian capitalism. Full article

With data from a household survey covering migrant settlers and indigenous (Kichwa) communities in the Sumaco Biosphere Reserve (SBR), this study analyses the drivers of agricultural diversification/specialisation, focusing on the role of ethnicity and the livelihood strategies (LS) they follow. Data were collected using the Poverty and Environment Network methodology of the Center for International Forestry Research (CIFOR-PEN). In order to establish the drivers of agricultural diversification, the number of crops and the Shannon index of crops areas were used as the dependent variables in ordinary least square (OLS) models, while a multinomial logit model (MLM) was used to assess a household’s degree of diversification. The results of the OLS regression provides evidence supporting the notion that households, with Livestock-based and Wage-based livelihood strategies (LS) are less diversified and more specialized than households with Crop-based LS. Ethnicity has a positive and significant effect on agricultural diversification, with Kichwa farms more diversified than those of their migrant colonist counterparts. The results of the multinomial logit model (MLM) show that large Kichwa households, with Crop-based and Forest-based LS are more likely to adopt a highly diversified agricultural strategy. Based on these findings, we recommend a redirection of agricultural incentives, towards the adoption of diversified agricultural systems, as a strategy to promote more sustainable production systems in the Ecuadorian Amazon Region. Full article