Is GDP a good proxy for social welfare? Building on economic theory, this book confirms that it is not, but also that most alternatives to it share its basic flaw, i.e., a focus on specific aspects of people's lives without sufficiently taking account of people's values and goals. A better approach is possible.

We construct novel measures to assess (i) the extent to which European Union member states are using common standards in recognizing asylum seekers and (ii) the extent to which the responsibilities for asylum applications, acceptances and refugee populations are equally shared among the member states, taking into account population size, gross domestic product (GDP) and GDP expressed in purchasing power parity (GDP-PPP). We track the progression of these measures since the implementation of the Treaty of Amsterdam (1999). These measures display (...) divergent trends and we try to provide an interpretation of the dynamics that are constitutive of these trends. (shrink)

How do we measure economic growth? In the eighteenth century, well before the birth of Gross Domestic Product commonly used today, looking at the sign of the balance of trade was a way to take the pulse of a nation's economy. Adam Smith rejects this measure and instead suggests that we should look at population growth. Nations that are able to produce enough to support the life of a growing population have growing economies, nations with constant population have stagnant economies, (...) and nations that face a declining population have contracting economies. Thus, population for Adam Smith is a proxy for our Gross Domestic Product, indicating the changes in production in a country over time. (shrink)

A Geographical Approach for Measuring the Creative Capital. Case Study: Creative Capital Index of Slovakia Calculation of creativity index is a part of a modern quantification wave, in some cases also formulation of the spatial differentiation of social and economic phenomena required from the academic sphere by the decisive sphere. Policy makers have interest by this means to help themselves in obtaining public for their objectives. The creative capital as a sum of quantifiable creativity indicators is in this contribution operationalized (...) including the social capital, which is out of accord with a traditional understanding of creativity following the Florida's concept of the creative class. Methods for creativity index formation are introduced at the global level of states as well as at the regional level of a given state. There are substantial differences among both indexes results and statistical data on export of creative goods that are well documented on example of USA and China. Terminological chaos associated with the concepts of creative class and economy is thus extended with a chaos in the interpretation of findings, what contributes to the critique of the Florida's concept of creative class. There arise doubts that the quantification of creativity indexes with correlation quantification with other economic and social factors as GDP, entrepreneurship, inequality, Index HDI1) ; is maybe right in terms of mathematics, but it does not reveal the casual connections. The research purpose of the contribution is a geographical approach to the creative capital. The case study incorporates the Slovak regions, creativity index calculation and its spatial differentiation in form of map expression. The scientific goal lies in a confirmation of hypothesis about a dominant position of Bratislava region, and thus the capital of Slovakia. A limit of calculation is the choice of indicators which were strongly determined by the accessibility of statistical data. (shrink)

Abstract:What is progress and what is not progress? We can talk about progress in lots of different arenas; we will focus primarily on economic and scientific progress, but also make brief reference to cultural and moral progress. In our discussion, we want to distinguish, especially, between overall, long-term progress and narrower, shorter-term progress or regress. We will refer to these as “global” and “local” progress, respectively. Of course, one can also regress; therefore, we will also look at instances where progress, (...) along some dimension, slows or even moves backwards. Generally, such regress is local, and often still in a context of broader, global progress. In scientific progress, for example, there are many instances of short-term progress which, if not completely discarded or disproved, are at least substantially modified or fundamentally challenged. And yet, those research paths, even when later abandoned, still contributed to the overall progress of the field. In that sense, the regress (that is, rejection or modification of previous theories) is corrected by, but not in conflict with, the overall progress. In the case of economic progress, the concept of regress usually takes on a different form in which things that aren’t advancing progress don’t necessarily stop it, but are simply retarding progress — that is, making the rate of progress less efficient. The consequence, we suggest, is that when talking about economic progress, objections to certain consequences of economic progress (for instance, income inequality — a type of regress, in our terminology) should not be cordoned off and dealt with independently, but should be incorporated into the way we think about economic progress itself — as instances of local regress within a context of global progress. We explore the effects of these different relations between progress and regress to suggest some of the challenges those seeking to broaden the standard measure, GDP, to incorporate other social values of well-being will face moving forward. (shrink)

If ‘well-being’ is to be the key concept in political economy, then economists are placed, from a methodological viewpoint, in an uncomfortable position. A well-being approach requires consideration of several non-economic dimensions strongly interrelated with the economic process, and failure … More ›.

HENDRIK VAN DEN BERG argues that Rand's claim that evidence of capitalism's success is "incontrovertible" cannot be confirmed using familiar annual GDP per capita figures. This article argues that annual GDP per capita cannot logically represent individual welfare because it measures an annual income flow while individuals judge their welfare by their lifetime income. Data are available to measure an economy's capacity to enhance individual lifetime welfare. Not only does this measure come closer to Rand's focus on the individual, it (...) also suggests that the past 200 years of capitalist development have raised individual welfare even more than the familiar, but misleading, annual GDP measures show. (shrink)

In the article we made an attempt to estimate the impact of structural economic changes on inequalities of earnings in Poland. The processes of structural changes were represented by GDP per one employee. Inequalities of earnings were measured with Lorenz coefficient. Additionally we used a variable, representing the health human capital  infant death rate in a thousand living births. On the basis of 19802006 sample we proved Kuznets’ hypothesis about the parabolic impact of GDP per one employee on inequalities (...) of earnings. In the studied period economy was found on the left arm of the parabola. The increase of GDP level per one employee favoured the increase of inequalities. Our estimates resulted in the fact that inequalities of earnings can maximally increase by about 1.4 percentage point. We think that according to Kuznets’ hypothesis inequalities will start to fall when GDP per one employee exceeds 103,000 PLN worth. The studies confirm the negative impact of the human capital measure  infant birth rate on inequalities. We hope that this article enables to better understand market mechanisms influencing inequalities of earnings. (shrink)

The study aims to ascertain how different levels of society have been influenced by the impact of pandemics over the last many years. The study also determines the societal implications of the COVID-19 pandemic. The integrative literature survey method is adopted to extract the secondary data pertinent to the socio-economic effect of pandemics and COVID-19 on society. Primary data is collected to diagnose the impact of the COVID-19 pandemic and lockdown on employees (N = 210) working in the Indian organized (...) sector. Findings of the study suggest that pandemics have been a cause of economic slowdown measured with a fall in gross domestic product (GDP) at the macro level. The reduced level of economic activity is found to be negatively related to an individual socio-economic status building their psychological distress. The descriptive analysis of the data reveals that although employees have managed their jobs and finances during COVID-19, they have experienced stress in their lives due to the pandemic. The study assimilates the pandemic effect using inductive reasoning to develop a COVID quadrilateral conceptual framework. (shrink)

This article proposes a new social welfare measure based on Aristotle’s theory of reciprocity. Unlike existing metrics of social welfare, the proposed Aristotelian social welfare function measures reciprocity in a society, that is, the degree to which members of a society cooperate to benefit each other. We provide numerical estimates of the welfare function using data from income distribution quintiles in the recent past for the U. S., Germany, Russia, Ukraine, and Iran. The numerical results show that, starting from different (...) initial values, the U. S. and Germany have experienced declining social welfare, while Iran and Ukraine have experienced increasing social welfare. GDP per capita appears to be inversely correlated with social welfare in the U. S. and Germany. Europeans seem to enjoy higher social welfare than Americans. The article introduces its topic by advancing criticism that contemporary approaches to social welfare, such as the capabilities approaches, estimate a presumed welfare of individuals, rather than social welfare. (shrink)

Inequality increased in Ethiopia from 2004 to 2015: The national income share of the lowest quintile of the population declined 40 % during that period. The national income share of the lowest 80 % has dropped 35 % during the same period, so that in 2015 it was lower than it was under the Communist-led Derg in 1981. While GDP per capita has increased in the country, the majority of the population is receiving a smaller percentage of national income than (...) in the 1990s, as the distance between them and the wealthy widens. Reciprocity, that is, cooperation among social classes, has declined since 2004. This study explains the anomaly where GDP per capita can rise but the share in national income of the majority of the population declines. It applies Aristotle’s critique of political economy and proposes a new metric for growth as a function of Aristotle`s measure of reciprocity and GDP per capita. (shrink)

The definition and measurement of social welfare have been a vexed issue for the past century. This book makes a constructive, easily applicable proposal and suggests how to evaluate the economic situation of a society in a way that gives priority to the worse-off and that respects each individual's preferences over his or her own consumption, work, leisure and so on. This approach resonates with the current concern to go 'beyond the GDP' in the measurement of social progress. (...) Compared to technical studies in welfare economics, this book emphasizes constructive results rather than paradoxes and impossibilities, and shows how one can start from basic principles of efficiency and fairness and end up with concrete evaluations of policies. Compared to more philosophical treatments of social justice, this book is more precise about the definition of social welfare and reaches conclusions about concrete policies and institutions only after a rigorous derivation from clearly stated principles. (shrink)

The study aims to measure the link between CSR and economic growth. This study investigates whether CSR expenses shown by the banks are contributing to the sustainability of an emerging economy like India. For this study, CSR spending of 21 commercial banks, on nine development areas of the Indian economy, the human development index of India, and its indicators along with the growth rate of GDP of India and state-wise GDP for the year 2014-2015 to 2017-2018 have been taken as (...) secondary data. The research techniques used are the case analysis method, correlation, and descriptive analysis. The study highlights that CSR activities are more of a myth and a far-reaching possibility in developing nations like India, where most institutions are engrossed in such activities to gain laurels and secure investors from the globe. (shrink)

This article aims to measure both the economic and social value of Tecnocampus, a Science and Technology Park in its region of influence. Our results show that the impact of Tecnocampus has a socioeconomic cost–benefit ratio of 2.39. Measuring the impact of this multifaceted centre requires a diverse approach. Although the methods used are not new, the combination of them presents a novel approach to measure the impact of an institution of this nature. We have measured the economic value with (...) the Input–Output model, including the Social Accounting Matrix. On the other hand, for social value calculations, we have used cost–benefit analysis adding measurements of firm localisation to estimate externality effects. Our main results present an economic value of more than 0.054% of the Catalan GDP, whereas the employment impact represents almost 0.37% of total employment in the region. The total economic multiplier of Tecnocampus activity is estimated to be 1.89. Social value generates an additional 0.50 euros to the multiplier according with our analysis. This additional social value represents an increase of productivity estimated in 20 million euros of operational income for Catalan firms and the creation of seven additional firms in the Maresme region as a result of knowledge spillovers. The social value also includes reduction of over-education caused by a better matching between graduates and enterprises, a more direct application of research, and an increase in consumer surplus. Finally, we discuss the policy implications of our findings to promote investments in this kind of infrastructures. (shrink)

This study investigated the relationship between cultural value orientations and country-specific changes in mobility during the Covid-19 pandemic. The aim was to understand how cultural values relate to mobility behavior during the initial stages of the pandemic. The aggregated data include Schwartz's cultural orientations, Gross Domestic Product (GDP) per capita, number of Covid-19 cases per million, and mobility change during the Covid-19 pandemic (Google Mobility Reports; percentage decrease in retail and recreation mobility, transit station mobility, workplace mobility and percentage mobility (...) increase in residential areas). Regression analyses showed that, after controlling for economy and severity of disease, hierarchy was the primary factor reducing mobility, such as staying at home, and mobility in public spaces, such as avoiding retail and recreation sites (marginally significant). The results are discussed in the light of previous literature and the implications for social distancing measures. (shrink)

Living in cities has numerous comparative advantages than living in the countryside or in small villages and towns, most notably better access to education, services and jobs. However, it is also associated with a roughly twofold increase in some mental disorders rate incidence compared with living in rural areas. Economic assessments reported a forecasted loss of more than 19 trillion dollars in global GDP between 2011 and 2030 and of around 7 trillion for the year 2030 alone when measured by (...) the human capital method. If we exclude self-selection processes and make the hypothesis to be able to level down the mental illness rate incidence in urban areas to these of the rural by better urban-societal planning, around € 1.2 trillion could be saved yearly worldwide. Even a reduction of only 20% in urban mental illness rate would save around 250 billion dollars yearly. (shrink)

This study extends previous literature on the association between Confucianism and corporate decisions by examining Confucianism’s influence on board gender diversity. Using a sample of Chinese listed firms during the period of 2001–2011 and geographic-proximity-based Confucianism variables, I provide strong and consistent evidence to show that Confucianism is significantly negatively associated with board gender diversity, suggesting that the proportion of women directors in the boardroom is significantly lower for firms surrounded by strong Confucianism atmosphere than for firms located in regions (...) with weak Confucianism atmosphere. This finding also implies that Confucian philosophical system has important impacts on business ethics and women’s status in corporate governance. Moreover, GDP per capita, the proxy for economic development level in a province in which a firm is located, attenuates the negative association between Confucianism and board gender diversity. Above results are robust to different measures of Confucianism and board gender diversity and are still valid after controlling for the potential endogeneity between Confucianism and board gender diversity. (shrink)

This paper discusses obligations of international distributive justice-specifically, obligations rich countries have to transfer resources to poor countries. It argues that the major seven OECD countries each have an obligation to transfer at least one percent of their GDP to developing countries. -/- The strategy of the paper is to defend this position without having to resolve the many debates that attend questions of international distributive justice. In this respect, it belongs to the neglected category of nonideal theory. The key (...) to the strategy is to show that a significant amount of good would be accomplished by a one percent transfer, despite the fact that one percent is quite a small amount. -/- To make this showing, the paper takes health as a fundamental measure of individual well-being and examines the improvement in life expectancy that would likely result from devoting the one percent transfer to the major determinants of health. It adduces data indicating that substantial progress towards raising life expectancy in developing countries to the global average of 64.5 years can be expected from expenditures of $125 per capita, divided between health care, education, and basic nutrition and income support. A one percent transfer from the major seven is enough to cover expenditures on that scale for the poorest fifth of the world's population. (shrink)

Auty (1993) and Sachs and Warner (1997) reignited the line of argument of the resource curse: the idea that natural resource wealth has negative net effects on the development of nations. However, the result has been found to be highly dependent on the types of variables used to represent natural resource wealth (Brunnschweiler, 2007) and similar questions can raised about variables used to represent being “cursed”. In this paper we pursue the hunt for better variables by looking at the relationship (...) between average income from natural resources per person and a wide array of key development indicators: Adjusted National Net Income, GDP per capita, an aggregate of services and industrialized goods, inequality measured by the Gini index, Poverty, the Human Development Index, the Prosperity Index, the Social Progress Index and the Fragile State Index. We do this on a global scale between 1970 and 2010. On the contrary, we find that natural resource wealth is positively linked to development. We suggest, alternatively, that much of the actual cases where abundant natural resources hurt nations have been cases of common theft by tyrants, often backed by imperial powers. (shrink)

Well-being is becoming an increasingly popular issue in economics. The aim of the article is to present the concept of well-being and the methods of its measurement and to examine the statistical significance between the results obtained by specific indicators. The article was written based on the meta-analysis of the books and scientific papers on the subject, as well as well-being and welfare measurement reports. The study shows that there is a very wide range of theories and concepts (...) related to well-being which are sometimes exceptive. The most important conclusion from the study is that the correlation between welfare and well-being represented respectively by GDP and HDI is very strong, while the correlation between welfare and life satisfaction as well as well-being and subjective well-being are negligible. (shrink)

The evidence of culture’s impact on corruption and its consequences is still inconclusive despite several investigations: Sometimes, theory is lacking and causes and consequences seem exchangeable. Based on psychological research on the distribution and use of power, we predicted that a steeper distribution of power induces more corruption and elaborated its negative consequences in a complex causal model. For measuring power distribution, pervading national culture, we augmented Hofstede’s ‘Power Distance’ with three additional indicators into a reversed, more reliable and valid (...) culture composite called “Power Balanced Freedom”. Instead of the usual regression and instrument approaches, which cannot estimate multiple causal chains including causal feedback, a non-recursive path analysis was employed with data from 85 nations. PBF predicted less national Corruption, with positive effects on Gross Domestic Product and Inequality Adjusted Human Development. The often expected reverse effect of GDP on Corruption was not significant. Contrary to influential authors from economics, culture variables are the most important predictors of corruption and its consequences. Nonetheless, our extended model supports the main thrust of their ideas and adds more precision. Our conceptual distinction of the uses of power and our empirical measure PBF reflect Kant’s ethical imperative: freedom and autonomy for everyone. Widely shared life chances as measured by IHDI reflect utilitarian, consequentialist ideas. These different ethical approaches are connected in the confirmed causal model, in line with Rawls’ first and second principle of justice. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Herman Daly’s Economics for a Full World: His Life and Ideas by Peter VictorJeroen Van Den Bergh (bio)Victor, Peter (2022). Herman Daly’s Economics for a Full World: His Life and Ideas. Routledge, Oxon UK and New York USA (ISBN: 978–0–367-55694-5).Herman Daly (1938–2022) spent a lifetime thinking about how to achieve a sustainable economy. In an inclusive biography, Canadian economist and environmental scientist Peter Victor discusses his ideas, critiques (...) and debates with others, while clarifying his motivations and struggles. Daly has greatly influenced others, as reflected by numerous prizes awarded to him. This influence is confirmed by original text boxes in the book that contain statements of many colleagues about his work and person, obtained through a questionnaire survey by the author.As a young man, Daly decided to study economics as he imagined it combined humanities and science. He was disappointed in it being less scientific than hoped, but his environmental concern motivated him to work on reestablishing the foundations of the field in environmental science and ethics. Daly is best known for his critique of economic growth and his alternative of the “steady-state economy.” He contributed, however, many other novel concepts and ideas during his lifetime, such as the ends-means spectrum, empty vs full world, uneconomic growth and optimal scale.Victor explains these ideas in a calm pace, showing a deep knowledge of Daly’s work. He, moreover, is able to connect it to ongoing sustainability research. He does all this in the course of thirteen chapters, covering Daly’s early life, education and career, his views on economics, his personal philosophy and the role of religion, his proposal for a steady-state economy, and his opinions on economic growth, population and migration, money and banking, and the perils of trade. [End Page 117]Ultimate endsMany consider Herman Daly to be a heterodox and even heretic economist. He associates himself with ecological economics, the field he co-founded. But while some of his ideas seem radical, many of his core proposals do not deviate substantially from mainstream economics. For instance, his “ultimate ends” concept is perfectly consistent with the broad notion of “welfare” in standard economics. In line with this, many welfare economists—such as Samuelson (1961), Mishan (1967), Hirsch (1976), Sen (1976), Scitovsky (1976) and Frank (1985)—have expressed themselves as critical of GDP (gross domestic product) dominance and growthmania (van den Bergh 2009). In fact, neoclassical economics is not married to economic growth—this is more the empirical side of macroeconomics. While Daly recognizes these subtleties, some of his followers do not.Daly sees his Protestant religion as delivering the ultimate ends, but Victor notes that this has not led to concrete suggestions. Ultimate ends based in Christian religion may be motivated by the promise of eternal (after)life, which in effect means gratifying selfish preferences. Instead, a humanistic perspective—which Daly also seems to embrace—would stress solidarity with future generations and a bioethical view of solidarity with other species. These distinct viewpoints, combined with diversity of human preferences and experiences, suggest that it will be difficult if not impossible for democratic societies to agree upon ultimate means.The Index of Sustainable Economic Welfare (ISEW), a kind of greened or sustainable GDP metric, is Daly’s most concrete elaboration of ultimate means (Daly and Cobb 1989). For many OECD (Organization for Economic Cooperation and Development) countries, it indicates a stabilization of welfare, despite continued GDP growth (Lawn 2003; Posner and Costanza 2011). As clarified by Victor, The ISEW remains close to GDP, produces a monetary measure, has a simple and transparent calculation method, and received considerably attention from theoretical and empirical angles. In view of this, it may well represent the best candidate for a beyond-GDP metric that can replace the GDP. What urgently fails is an effective institutional procedure to achieve its widespread adoption (van den Bergh 2022).Religion, evolution and biodiversityDaly’s religious standpoint make him skeptical of the modern scientific worldview which regards the world to be governed by materialism and evolution, with no role for a higher purpose or an ultimate end. This led him... (shrink)

Economic growth is mostly explained by investments and employment growth. Since the mid 1990s various social categories have been introduced into the economic growth analysis such as trust, crime and income inequality etc. According to sociology and psychology, it is the family that constitutes interpersonal ties and is an indicator of happiness and quality of life. It can be said that happy people better fulfil their social roles and also work better. We set a hypothesis that the family ties have (...) an influence on economic growth. More precisely: the more divorces (compared to newly couples), the slower economic growth. This hypothesis was confirmed in an analysis of Poland’s economy in the years 1967–2006. Due to the disintegration of family ties measured by the above mentioned divorce rate Poland’s annual economic growth was slowed by about a 0.6 percentage point on average. This estimation is based on a GDP growth model which, along with the divorce rate, also includes employment dynamics, invest rate and crime rate. (shrink)

In developing the basis on which climate change should be priced, I do five things. First, I review the ethical foundations for valuing future consumption relative to present consumption (i.e. social discount rates). Second, I report that the criterion for both assessing and prescribing economic policies should not be an economy's GDP, but an inclusive measure of an economy's wealth adjusted for the distribution of wealth. Third, I apply the resulting analysis to the problem of pricing carbon concentration in the (...) atmosphere. I give prominence to future uncertainties. Fourth, I show that the existing models of human behaviour on the basis of which these questions have been analysed by economists have serious deficiencies, in as much as the idea of personhood embodied in them has been built on the psychology of confirmed egotists. Fifth, I sketch the motivations of a social being and show how the altered specification of the human person affects the social price of climate change. (shrink)

This study aims to examine the relationship between public financial management and indicators of well-being among 29 Economic Co-operation and Development (OECD) countries using a balanced panel dataset over the period between 2005 and 2019. This study used a matrix of seven proxy measures of public financial management, which works as an integrated financial system to improve the objective quality of well-being measured by employment, education level, productivity, and wages. Using the generalised method of moments, the estimator's results, indicate that (...) higher government revenues, expenses (% of GDP) lead to lower well-being while the higher net lending /net borrowing, cost of business start-up procedures, and adjusted gross savings (% of GNI) lead to increase well-being measured by spending on education. The higher government revenues, regulatory quality, government effectiveness, and higher net lending /net borrowing lead to improved well-being, while the higher cost of business start-up procedures (% of GNI per capita) leads to lower well-being measured by wages. The higher government revenues, government effectiveness, and higher net lending/net borrowing lead to increased well-being. In contrast, the higher expense (% of GDP) leads to lower well-being measured by productivity labor. The higher government revenues, government effectiveness, regulatory quality, net lending /net borrowing and adjusted gross savings lead to lower well-being, while the higher cost of business start-up procedures leads to increased well-being measured by employment rates. The OECD countries should prepare fiscal policies to ensure the sustainability of public finances in the long run and identify emergency response mechanisms to overcome the challenges of improving the objective quality of well-being. (shrink)

This research paper aims to investigate. the impact of inflation. on financial sector performance in Western. Balkan. countries. The topic was chosen considering the financial sector’s fundamental role and its. impact on sustainable economic growth. This impact is measured through the effect that macroeconomic determinants of financial. performance such. as inflation, GDP. growth, general government final consumption expenditure, trade, and the lending interest rate have on credit to private sector as a share of GDP and broad definition of money as (...) a ratio of GDP, which were used to proxy financial sector development. The data are provided by the World Bank as well as the Central. Banks. of the respective countries, for the period 2002–2021. The research methodology consists of different panel regression models such as OLS, OLS robust, Fixed effects, Random effects, and Generalized method of moments (GMM). Findings indicate that domestic credit to the private sector and inflation are positively correlated, whereas broad money and inflation are negatively correlated. (shrink)

When making a decision, humans consider two types of information: information they have acquired through their prior experience of the world, and further information they gather to support the decision in question. Here, we present evidence that data from search engines such as Google can help us model both sources of information. We show that statistics from search engines on the frequency of content on the Internet can help us estimate the statistical structure of prior experience; and, specifically, we outline (...) how such statistics can inform psychological theories concerning the valuation of human lives, or choices involving delayed outcomes. Turning to information gathering, we show that search query data might help measure human information gathering, and it may predict subsequent decisions. Such data enable us to compare information gathered across nations, where analyses suggest, for example, a greater focus on the future in countries with a higher per capita GDP. We conclude that search engine data constitute a valuable new resource for cognitive scientists, offering a fascinating new tool for understanding the human decision-making process. (shrink)

Background Previous analyses of democracy and population health have focused on broad measures, such as life expectancy at birth and child and infant mortality, and have shown some contradictory results. We used a panel of data spanning 170 countries to assess the association between democracy and cause-specific mortality and explore the pathways connecting democratic rule to health gains. -/- Methods We extracted cause-specific mortality and HIV-free life expectancy estimates from the Global Burden of Diseases, Injuries, and Risk Factors Study 2016 (...) and information on regime type from the Varieties of Democracy project. These data cover 170 countries and 46 years. From the Financing Global Health database, we extracted gross domestic product (GDP) per capita, also covering 46 years, and Development Assistance for Health estimates starting from 1990 and domestic health spending estimates starting from 1995. We used a diverse set of empirical methods—synthetic control, within-country variance decomposition, structural equation models, and fixed-effects regression—which together provide a robust analysis of the association between democratisation and population health. -/- Findings HIV-free life expectancy at age 15 years improved significantly during the study period (1970–2015) in countries after they transitioned to democracy, on average by 3% after 10 years. Democratic experience explains 22·27% of the variance in mortality within a country from cardiovascular diseases, 16·53% for tuberculosis, and 17·78% for transport injuries, and a smaller percentage for other diseases included in the study. For cardiovascular diseases, transport injuries, cancers, cirrhosis, and other non-communicable diseases, democratic experience explains more of the variation in mortality than GDP. Over the past 20 years, the average country's increase in democratic experience had direct and indirect effects on reducing mortality from cardiovascular disease (−9·64%, 95% CI −6·38 to −12·90), other non-communicable diseases (−9·14%, −4·26 to −14·02), and tuberculosis (−8·93%, −2·08 to −15·77). Increases in a country's democratic experience were not correlated with GDP per capita between 1995 and 2015 (ρ=–0·1036; p=0·1826), but were correlated with declines in mortality from cardiovascular disease (ρ=–0·3873; p<0·0001) and increases in government health spending (ρ=0·4002; p<0·0001). Removal of free and fair elections from the democratic experience variable resulted in loss of association with age-standardised mortality from non-communicable diseases and injuries. -/- Interpretation When enforced by free and fair elections, democracies are more likely than autocracies to lead to health gains for causes of mortality (eg, cardiovascular diseases and transport injuries) that have not been heavily targeted by foreign aid and require health-care delivery infrastructure. International health agencies and donors might increasingly need to consider the implications of regime type in their efforts to maximise health gains, particularly in the context of ageing populations and the growing burden of non-communicable diseases. (shrink)

As a tool for regulating the environment in China, does environmental information disclosure reduce pollutant discharge? To answer this question, we empirically analyzed the emission data of “the three wastes” in unit industrial GDP in 31 provincial units. As a measure to reduce institutional emission, environmental information disclosure only slightly influenced waste discharge reduction in the implementation period of the Eleventh Five-Year Plan of China. Instead, command control and market-based tools significantly affected waste discharge reduction. Representative measures included penalties and (...) charges. With the continuously enhanced pressure of control, environmental information disclosure facilitates the effects of command control tools on waste discharge reduction. Content analysis of environmental information disclosed by sample listed companies in Jiangsu Province was conducted. The disclosure of insufficient environmental information on emission reduction can be attributed to “adverse selection” in system performance and to the limited quality of overall environmental information disclosure. This study provides empirical evidence for Chinese policy makers to improve the system for environmental information disclosure of listed companies. (shrink)

Environmental ethics is a major topic of discussion and enactment in China. The government is committed to work toward an “ecological civilization,” a society in which concerns for a healthy natural environment are interwoven with concerns for a healthy human society and healthy human relations with nature. Whereas in the United States concern for the environment is rarely consciously philosophical, Chinese history has made people aware that philosophy underlies and shapes public policy. Whitehead’s thought has been welcomed as a way (...) of clarifying and supporting the commitment to ecological civilization, which has been strongly reemphasized by President Xi. It also helps in reviving and incorporating classical Chinese thought without threatening the great advances China has made in science. This organic thinking has expressed itself in government policy in shifting from the industrialization of agriculture to support for eco-villages and in dethroning GDP as the measure of progress. The interest in Whitehead is expressed by thirty-six universities setting up Centers for Process Studies, extensive discussion of a process book—Organic Marxism—and numerous other publications. (shrink)

The aim of this paper is to examine whether and how business ethics is connected with the well-being of a nation. There has been active research in the well-being of nations across the globe in the last two decades, resulting in substantial theoretical progress and a wealth of empirical data on the well-beings of different nations across the globe. Dissatisfied with the conventional measures such as the GDP, well-being researchers have been developing alternative measures that can better capture the true (...) nature of the well-being of a country. The paper begins by examining why the GDP is inadequate as a good measure of the well-being of a country. Major alternative proposals on well-being or similar measures are summarized. Objective well-being of a nation refers to the conditions of well-being of a country. Subjective wellbeing of a nation is the perceptions of its citizens with regard to their satisfaction with the major conditions of living in that nation. The paper presents two central arguments leading to the conclusion that business ethics is an integral part of the well-being of a country. The first argument utilizes the concept of workplace well-being to establish the linkage. The second argument uses evidence from a recent survey of the perceptions of Taiwanese people on business ethics in relation to the well-being of a nation. The paper also reveals that common values tie the two together at a deeper level. (shrink)

This paper proposes an index of national levels of “intergenerational solidarity”, defined as “investments or sacrifices that are intended to increase or sustain the wellbeing of future generations”. This is measured by examining changes to the value and stability of various capital flows and stocks. Nine indicators are drawn from national-level statistics: forest degradation rate, share of low-carbon energy consumption, and carbon footprint in the environmental dimension; adjusted net savings, current account balance, and wealth in equality in the economic dimension; (...) and primary pupil-teacher ratio, fertility rate, and GDP-adjusted child mortality in the social dimension. This returns a comparative index score of intergenerational solidarity for 120 countries covering 92% of the world’s population. Throughout, the state of the current research on intergenerational transfers and on the individual metrics used is discussed, and suggestions are made for further improvements and work in measuring intergenerational solidarity. As it stands, the index provides the widest coverage of indicators and nations aimed at measuring any similar concept. As such, it is particularly useful for those who wish to investigate the causes of intergenerational solidarity through cross-cultural comparisons. Online Appendix. (shrink)

This note evaluates the claim of Steven Pinker in The Better Angels of Our Nature that the advent of strong states led to a decline in violence. I test this claim in the modern context, measuring the effect of the strength of government in lower-income countries on reductions in homicide rates. The strength of government is measured using Polity IV, Worldwide Governance Indicators, and government consumption as a percentage of GDP. The data do not support Pinker’s hypothesis.

International large-scale assessments, such as PISA, provide structured and static data. However, due to its extensive databases, several researchers place it as a reference in Big Data in Education. With the goal of exploring which factors at country, school and student level have a higher relevance in predicting student performance, this paper proposes an Educational Data Mining approach to detect and analyze factors linked to academic performance. To this end, we conducted a secondary data analysis and built decision trees (C4.5 (...) algorithm) to obtain a predictive model of school performance. Specifically, we selected as predictor variables a set of socioeconomic, process and outcome variables from PISA 2018 and other sources (World Bank, 2020). Since the unit of analysis were schools from all the countries included in PISA 2018 (n= 21,903), student and teacher predictor variables were imputed to the school database. Based on the available student performance scores in Reading, Math, and Science, we applied k-means clustering to obtain a categorized (three categories) target variable of global school performance. Results show the existence of two main branches in the decision tree, split according to the schools’ mean socioeconomic status (SES). While performance in high-SES schools is influenced by educational factors such as metacognitive strategies or achievement motivation, performance in low-SES schools is affected in greater measure by country-level socioeconomic indicators such as GDP, and individual educational indicators are relegated to a secondary level. Since these evidences are in line and delve into previous research, this work concludes by analyzing its potential contribution to support the decision making processes regarding educational policies. (shrink)

The article discusses approaches to welfare under no-growth conditions and against the background of the growing significance of climate change as a socio-ecological issue. While most governments and scholars favor “green deal” solutions for tackling the climate crisis, a growing number of discussants are casting doubt on economic growth as the answer to it and have provided empirical evidence that the prospects for globally decoupling economic growth and carbon emissions are very low indeed. These doubts are supported by recent contributions (...) on happiness, well-being and alternative measures of measuring prosperity, which indicate that individual and social welfare is by no means equivalent to GDP growth. If the requirements of prosperity and welfare go well beyond material sustenance, then approaches that aim to conceptualize welfare under the circumstances of a “stable state economy” become more relevant. A qualitatively different environmental and welfare policy governance network would need to integrate the redistribution of carbon emissions, work, time, income and wealth. Since social policies will be necessary to address the emerging inequalities and conflicts, this article considers the roles that the various “no-growth” approaches dedicate to social policy and welfare instruments. (shrink)

The United States, as a leading world power, has to face China – an emerging powerful rival. The potential of both states’ power is measured by universal indicators. On a military level, these indicators are: military expenditure, soldiers/reserve/soldiers abroad, offensive weapons, nuclear warheads. On an economic level: GDP value, reserve currency/public debt to GNP, direct investment home and abroad. With regard soft power, six categories have been taken into consideration: diplomacy, socio-political, socioeconomic, education, high and popular culture. All of the (...) three researched levels were correlated with both states’ political system specificity and the character of the international arena’s relations. It allowed for the assessment of the current levels of both states’ power as well as their future prospects. (shrink)

Ukraine faces a threat of full-fledged default and deep financial and political crisis. The current deep recession is the country's second major economic crisis in ten years. Ukraine was severely affected by the global financial crisis in 2008, with its economy shrinking by 15% in 2009. The economy remained weak in the aftermath, as former government caused the business climate worsening. The lack of reforms limited growth of GDP to just 0.3% in 2012 and remained static in 2013. By the (...) end of 2013, Ukraine was already on the brink of collapse. The conflict in the eastern part of the country has further exacerbated the recession. Today the sources of economic growth in Ukraine have been exhausted, and the country is strongly increasing its debts trying to attract foreign investment. The government’s reform efforts have so far failed to significantly improve the country’s business climate. Ukraine is ranked 83rd out of 189 countries in the latest World Bank's ‘Doing Business’ 2016 index. This score is the second worst in Europe. Ukraine is still considered the most corrupt country in Europe as well. The persistent state of war has disrupted industrial production, which is mainly located in the eastern part. The article elucidates recent events in Ukraine as well as gives a brief historical overview. The influence of misleading governance of economic situation is revealed. The positive scenario, in which Ukraine overcomes default, is unlikely to happen unless the firm measures are to be taken. (shrink)

Inequality of incomes is one of the significant factors forming the social capital. Two views dominate among economists dealing with the influence of inequality of income on economic growth. On the one hand, a too low inequality of income does not motivate people to increase the labour productivity. A low inequality of income might result from an extended social care system and overloading GDP with social transfers. A good example of it may be a situation when the unemployed refuses to (...) accept a job offer and prefers the unemployment benefit rather to a slightly higher salary. Moreover, a lack of incentives for the employee who fails to acknowledge the economic sense of increasing the productivity of his work might lead to the slower growth of economy. On the other hand, a contrary view suggests that an increase of the inequality of income has a negative impact on the economy. The accumulation of wealth by a small number of citizens raises doubts about good use of that wealth for investments necessary for the growth of the economy. An excessive inequality of income is confronted with disapproval of the significant part of society and regarded as unfair and unjustified. It may also increase the crime level and decrease the trust and, more generally, lead to the weakening of social capital. The arguments above lead to a hypothesis that the influence of the inequality of income on the growth of the economy has a non-linear character. We confirmed this hypothesis in growth models of the US and Swedish economies. We assess the historically optimal inequality of income measured by the Gini coefficient at 46% and 24% for the US and Sweden respectively. The optimal inequality of income in Poland was assessed previously at 29%. The dissimilarities may result from the cultural differences, educational level differences, ethnic differences and differences in diligence. (shrink)

The uses of statistical distributions for modeling real phenomena of nature have received considerable attention in the literature. The recent studies have pointed out the potential of statistical distributions in modeling data in applied sciences, particularly in financial sciences. Among them, the two-parameter Lomax distribution is one of the prominent models that can be used quite effectively for modeling data in management sciences, banking, finance, and actuarial sciences, among others. In the present article, we introduce a new three-parameter extension of (...) the Lomax distribution via using a class of claim distributions. The new model may be called the Lomax-Claim distribution. The parameters of the Lomax-Claim model are estimated using the maximum likelihood estimation method. The behaviors of the maximum likelihood estimators are examined by conducting a brief Monte Carlo study. The potentiality and applicability of the Lomax claim model are illustrated by analyzing a dataset taken from financial sciences representing the vehicle insurance loss data. For this dataset, the proposed model is compared with the Lomax, power Lomax, transmuted Lomax, and exponentiated Lomax distributions. To show the best fit of the competing distributions, we consider certain analytical tools such as the Anderson–Darling test statistic, Cramer–Von Mises test statistic, and Kolmogorov–Smirnov test statistic. Based on these analytical measures, we observed that the new model outperforms the competitive models. Furthermore, a bivariate extension of the proposed model called the Farlie–Gumble–Morgenstern bivariate Lomax-Claim distribution is also introduced, and different shapes for the density function are plotted. An application of the bivariate model to GDP and export of goods and services is provided. (shrink)

This essay review of Margaret Atwood's Payback centers on the observation that the book does not dwell on the unnatural face of interest and finance. In this era of financialization, debt has been thoroughly uncoupled from the concept of payback. The least valuable debt is the one that is promptly repaid. It is this aspect of debt—the interest, not the principal—that has attracted the richest tradition of social condemnation. As stable forms of production and exchange were replaced by international arbitrage, (...) the link between debt and sorcery became evident to observers around the world. More profoundly, Atwood's widely shared commonsense impression that consumer debt is a measure of self-indulgence does not hold up empirically. It turns out that our unprecedented levels of household indebtedness were overwhelmingly a function of nondiscretionary spending. Even as Americans owed one hundred percent of GDP in individual debt in 2008, the real Faustian bargain was not a “enjoy now, pay later” scheme for “glitzy, short-term junk.” The truth is much scarier, and points toward a different set of cultural and theological references than the ones Atwood investigates. The dividing line between solvency and insolvency, it turns out, is not consumption but reproduction: the most certain route to financial disaster is having a child. (shrink)