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41. A Policy Matrix for Inclusive Prosperity

Author:
Dani Rodrik and Stefanie Stantcheva
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
One of the biggest challenges that countries face today is the very unequal distributions of opportunities, resources, income and wealth across people. Inclusive prosperity – whereby many people from different backgrounds can benefit from economic growth, new technologies, and the fruits of globalization – remains elusive. To address these issues, societies face choices among many different policies and institutional arrangements to try to ensure a proper supply of productive jobs and activities, as well as access to education, financial means, and other endowments that prepare individuals for their participation in the economy. In this paper we offer a simple, organizing framework to think about policies for inclusive prosperity. We provide a comprehensive taxonomy of policies, distinguishing among the types of inequality they address and the stages of the economy where the intervention takes place. The taxonomy clarifies the differences among contending approaches to equity and inclusion and can help analysts assess the impacts and implications of different policies and identify potential gaps.
Topic:
Economics, Labor Issues, Economic Inequality, Macroeconomics, Job Creation, Polarization, Productivity, Inclusion, Workforce, and Production
Political Geography:
United States

42. Majoritarian versus Proportional Representation Voting

Author:
Ethan Kaplan
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
What kind of voting system should countries have? This policy brief discusses the two main electoral systems in modern political democracies. It makes an argument that majoritarian systems such as what exists in the United States fail to properly represent voters. It suggests replacing the U.S. majoritarian political system with a proportional representation system and shows how this could be done within the context of current U.S. law. Both economists and political scientists have worked on the impact of electoral systems. Empirical methods from economics as well as economic analysis of the incentives created by different political systems have contributed to our understanding of the consequences of electoral systems on representation. Additionally, economists have estimated the impact of electoral system on fiscal expenditures, something we will discuss towards the end of the policy brief. There are two main voting systems in modern democratic societies: majoritarian systems and proportional representation systems. Federal voting in the United States is majoritarian though some states such as Maryland have proportional representation at the state level. In a majoritarian system, also known as a winner-take-all system or a first-past-the-post system, the country is divided up into districts. Politicians then compete for individual district seats. The candidate who receives the highest vote share wins the election and represents the district.
Topic:
Economics, Democracy, Representation, Macroeconomics, Voting, and Electoral Systems
Political Geography:
United States

43. EfIP Online Panel: A New Macroeconomics?

Author:
Jón Steinsson
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
There is a narrative within our field that macroeconomics has lost its way. While I have some sympathy with this narrative, I think it is a better description of the field 10 years ago than of the field today. Today, macroeconomics is in the process of regaining its footing. Because of this, in my view, the state of macroeconomics is actually better than it has been for quite some time. The most important problem with macro over the past few decades has been that it has been too theoretical. When I say this, I don‘t at all mean to say that theory is useless. To the contrary, theory is an essential element of a healthy science. But a healthy science needs a balance between theory and empirical work. Macro lost this balance in the 1980s and is only regaining it now. Most narratives about the evolution of macro focus on the evolution of macroeconomic theory and the rational expectations revolution in particular. An under-appreciated part of this story is that the rational expectations revolution shifted the field away from empirical work. This was partly because building models that met the higher standards of rigor set by Lucas and his co-revolutionaries was a challenging and therefore highly absorbing task. But that isn’t the only reason. For reasons that are not entirely clear to me, a very substantial fraction of macroeconomists came to believe that the Lucas critique implied that quasi-experimental empirical methods could not be used in macro. The idea that changes in policy could radically alter empirical regularities (i.e., the Lucas critique) somehow came to be interpreted to mean that the only way to do empirical work in macro was to write down fully specified general equilibrium models of the whole economy and evaluate the entire model (either by full-information inference methods or moment matching). Sargent, for example, placed enormous emphasis on the idea of “cross-equation restrictions.“ It seems that this line of thinking led large numbers of macroeconomists astray in terms of how to think about empirical work in macro for several decades.
Topic:
Economics, Political Economy, and Macroeconomics
Political Geography:
United States

44. New Directions in Macroeconomics

Author:
Gillian Brunet
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Economics for Inclusive Prosperity (EfIP)
Abstract:
Without being overly prescriptive, macro research must meet two standards to keep the field moving in a productive direction: models must be tested empirically and researchers must think carefully about how underlying assumptions restrict the set of questions that can be answered with a given model. Models move knowledge forward through rigorous empirical testing. Matching moments in model calibration is not enough—nor should it be considered true empirics. When economics is done well, theory and empirics are complements: empirical research disciplines models and theory disciplines empirical research. In recent decades, macro research has tilted very heavily towards theory, forgoing the feedback generated by rigorous empirical testing and, as a consequence, dramatically reducing the ratio of insight to effort. Macro as a field must value empirical contributions to flourish fully. There has been significant progress in the last decade, but the balance still tilts heavily towards theory. Macroeconomists must stop dismissing empirical contributions as trivial for macro theory to reach its potential. It’s not an accident that many of today’s best macroeconomists stand out for their work in both theory and empirics: empirical work disciplines their theoretical research. Over the past 40-50 years, research in short-run macroeconomics has focused on the goal of creating unified, internally consistent models of the macroeconomy. While this is a worthy goal, it has perhaps become too dominant—and imposes hidden costs on research. The emphasis on developing a central baseline model to which idiosyncratic features are added for addressing a specific problem discourages many researchers from considering the suitability of the underlying model to the specific question being asked. As economists we are taught that every model is a simplification, so that the relevant question is not whether a model is good or bad but whether it is good or bad for answering a specific question. Yet choosing a single baseline model of the macroeconomy tends to obscure the closeness of the relationship between the model and the question it is used to answer. Often macroeconomists think carefully about the relationship between their question and the idiosyncratic features they add to the baseline model, but many of the assumptions underlying the baseline model become invisible and thus unquestioned. This is understandable given the complexity of modern macro models, but it has high costs. More careful consideration of the assumptions underlying baseline models and their appropriateness to individual research questions can help move the field forward.
Topic:
Economics, Political Economy, Macroeconomics, and Models
Political Geography:
United States

45. How Syria Changed Turkey’s Foreign Policy

Author:
Francesco Siccardi
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Between August 2016 and the present, Turkey has launched four military operations in northern Syria. Each operation has served specific objectives and was designed to respond to rapidly changing scenarios on the ground. It is possible to identify the key priorities that have informed Turkey’s Syria policy over the years. Boiled down to its core, the Turkish government’s activism in Syria has been driven by domestic politics and has helped Turkish President Recep Tayyip Erdoğan and his Justice and Development Party (AKP) preserve power. Domestically, Ankara has used the Syrian conflict as a pretext to suppress the rights of the Kurds living in Turkey and limit their parliamentary representation to secure a landmark constitutional reform in 2017. In the following years, successive military operations in Syria have helped Erdoğan connect with increasingly nationalistic constituencies and drum up support around key electoral dates. Finally, after the failed coup in July 2016, the Turkish government’s Syria policy played a major role in rebuilding the credibility of the Turkish Armed Forces while redrawing the balance between civilian and military power. In foreign policy terms, Turkey’s military operations in Syria have resulted in increasingly tense relations with the United States. Washington’s support for the Syrian Kurds has alienated Ankara to an extent that U.S. policymakers failed to anticipate. The thorniest topic of the day in the U.S.-Turkey bilateral relation—Ankara’s decision to deploy the Russian S-400 missile system—is also deeply related to the Syrian crisis. This decision was made in the context of a strategic realignment between Turkey and Russia that has helped both countries pursue their respective objectives in Syria: the survival of Syrian leader Bashar al-Assad’s regime for Moscow and the weakening of the Syrian Kurds for Ankara. Finally, Ankara’s involvement in Syria has also given Turkey new leverage over the EU when it comes to the management of refugee flows. Solving the question of Syrian refugees in Turkey has been a priority of the Turkish government since the early stages of the Syrian civil war—and a main driver of Ankara’s policies toward both Syria and the EU. Overall, Ankara’s involvement in Syria has not only been a source of conflict—or rapprochement—with its traditional partners and neighbors across the region. It has also equipped Turkey with new tools for conducting a more aggressive, nationalistic foreign policy. The strategies Turkey has employed in Syria have boosted the country’s image and international role. These operations have secured a seat for Turkey at the negotiating table with Russia and the United States. Ankara has used these tools, these lessons learned, and its new capabilities to inform its revisionist foreign policy posture. Going forward, and with an eye on the country’s 2023 presidential election, Turkey will continue to use these tools to reinforce its position in the international arena.
Topic:
Foreign Policy, European Union, Syrian War, and Military
Political Geography:
Russia, United States, Turkey, Middle East, and Syria

46. Inclusive American Economic History: Containing Slaves, Freedmen, Jim Crow Laws, and the Great Migration

Author:
Trevon Logan and Peter Temin
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
This paper records the path by which African Americans were transformed from enslaved persons in the American economy to partial participants in the progress of the economy. The path was not monotonic, and we organize our tale by periods in which inclusiveness rose and fell. The history we recount demonstrates the staying power of the myth of black inferiority held by a changing white majority as the economy expanded dramatically. Slavery was outlawed after the Civil War, and blacks began to participate in American politics en masse for the first time during Reconstruction. This process met with white resistance, and black inclusion in the growing economy fell as the Gilded Age followed and white political will for black political participation faded. The Second World War also was followed by prosperity in which blacks were included more fully into the white economy, but still not completely. The Civil Rights Movement proved no more durable than Reconstruction, and blacks lost ground as the 20th century ended in the growth of a New Gilded Age. Resources that could be used to improve the welfare of whites and blacks continue to be spent on the continued repressions of blacks.
Topic:
Economics, Race, History, Capitalism, and Slavery
Political Geography:
United States and Global Focus

47. On Sovereignties and Solidarities

Author:
Julio César Guanche Zaldívar and Sara Kozameh
Publication Date:
03-2020
Content Type:
Commentary and Analysis
Institution:
The North American Congress on Latin America (NACLA)
Abstract:
The United States must abandon Cold War-era foreign policies and accept that Cuba is a sovereign nation free to define its political future— even if that means continuing socialism.
Topic:
Foreign Policy, Cold War, Sovereignty, Socialism/Marxism, and Capitalism
Political Geography:
United States and Cuba

48. Empathic Humanitarianism: Understanding the Motivations behind Humanitarian Work with Migrants at the US–Mexico Border

Author:
Ricardo Gomez, Bryce Clayton, and Sara Vannini
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Journal on Migration and Human Security
Institution:
Center for Migration Studies of New York
Abstract:
The growing numbers of vulnerable migrants seeking shelter and refuge in the United States and Europe are finding increased racism and xenophobia as well as renewed efforts by humanitarian volunteers to offer them aid, sanctuary, and protection. This article sets forth a typology to better understand the motivations of volunteers working to help migrants in need of humanitarian assistance. Why do people go out of their way to offer humanitarian aid to someone they do not know and, in some cases, they will never meet? What are the drivers of altruistic behavior of humanitarian volunteers in the face of rising injustice, nationalism, and xenophobia? In answer to these questions, we offer a typology centered on empathic concern, differentiating secular/faith-based motivations, and deontological/moral-virtue motivations, with particular behaviors in each of the four resulting categories: the Missionary Type, the Good Samaritan Type, the Do Gooder Type, and the Activist Type. We also suggest four additional self-centered (non-altruistic, or not-other-centered) types (Militant, Crusader, Martyr, and Humanitarian Tourist). The nuances offered by this typology can help organizations working with migrants and refugees better understand and channel the enthusiasm of their volunteers and better meet the needs of the vulnerable populations they serve. This is especially important at a time when migration is being criminalized and when humanitarian aid is deemed unpatriotic, if not outright illegal. In the face of increased nationalistic and xenophobic messages surrounding migration, we need to articulate the altruistic humanitarian motivations of volunteers in the context of migration aid. Our typology may also be used to understand altruistic behaviors in other contexts such as disaster relief, community organization and activism, international adoptions, or organ donations to strangers, among others, in which altruistic empathic concern can be an important motivation driving people to act for the well-being of distant others.
Topic:
Humanitarian Aid, Migration, Nationalism, and Xenophobia
Political Geography:
United States and North America

49. Reverse Migration to Mexico Led to US Undocumented Population Decline: 2010 to 2018

Author:
Robert Warren
Publication Date:
02-2020
Content Type:
Journal Article
Journal:
Journal on Migration and Human Security
Institution:
Center for Migration Studies of New York
Abstract:
This report presents estimates of the undocumented population residing in the United States in 2018, highlighting demographic changes since 2010. The Center for Migration Studies of New York (CMS) compiled these estimates based primarily on information collected in the US Census Bureau’s American Community Survey (ACS). The annual CMS estimates of undocumented residents for 2010 to 2018 include all the detailed characteristics collected in the ACS. [1] A summary of the CMS estimation procedures, as well as a discussion of the plausibility of the estimates, is provided in the Appendix. The total undocumented population in the United States continued to decline in 2018, primarily because large numbers of undocumented residents returned to Mexico. From 2010 to 2018, a total of 2.6 million Mexican nationals left the US undocumented population; [2] about 1.1 million, or 45 percent of them, returned to Mexico voluntarily. The decline in the US undocumented population from Mexico since 2010 contributed to declines in the undocumented population in many states. Major findings include the following: The total US undocumented population was 10.6 million in 2018, a decline of about 80,000 from 2017, and a drop of 1.2 million, or 10 percent, since 2010. Since 2010, about two-thirds of new arrivals have overstayed temporary visas and one-third entered illegally across the border. The undocumented population from Mexico fell from 6.6 million in 2010 to 5.1 million in 2018, a decline of 1.5 million, or 23 percent. Total arrivals in the US undocumented population from El Salvador, Guatemala, and Honduras — despite high numbers of Border Patrol apprehensions of these populations in recent years — remained at about the same level in 2018 as in the previous four years. [3] The total undocumented population in California was 2.3 million in 2018, a decline of about 600,000 compared to 2.9 million in 2010. The number from Mexico residing in the state dropped by 605,000 from 2010 to 2018. The undocumented population in New York State fell by 230,000, or 25 percent, from 2010 to 2018. Declines were largest for Jamaica (−51 percent), Trinidad and Tobago (−50 percent), Ecuador (−44 percent), and Mexico (−34 percent). The results shown here reinforce the view that improving social and economic conditions in sending countries would not only reduce pressure at the border but also likely cause a large decline in the undocumented population. Two countries had especially large population changes — in different directions — in the 2010 to 2018 period. The population from Poland dropped steadily, from 93,000 to 39,000, while the population from Venezuela increased from 65,000 to 172,000. Almost all the increase from Venezuela occurred after 2014.
Topic:
Migration, Border Control, and Domestic Politics
Political Geography:
United States, Central America, North America, Mexico, Honduras, Guatemala, and El Salvador

50. What’s Wrong with Temporary Protected Status and How to Fix It: Exploring a Complementary Protection Regime

Author:
Bill Frelick
Publication Date:
02-2020
Content Type:
Journal Article
Journal:
Journal on Migration and Human Security
Institution:
Center for Migration Studies of New York
Abstract:
Temporary Protected Status (TPS) became part of the US protection regime in 1990 to expand protection beyond what had been available under the US Refugee Act of 1980, which had limited asylum to those who met the refugee definition from the United Nations’ 1951 Refugee Convention. The TPS statute authorized the attorney general to designate foreign countries for TPS based on armed conflict, environmental disasters, and other extraordinary and temporary conditions that prevent designated nationals from returning in safety. While providing blanket protection that very likely has saved lives, TPS has nonetheless proven to be a blunt instrument that has frustrated advocates on both sides of the larger immigration debate. This article evaluates the purpose and effectiveness of the TPS statute and identifies inadequacies in the TPS regime and related protection gaps in the US asylum system. It argues that TPS has not proven to be an effective mechanism for the United States to protect foreigners from generalized conditions of danger in their home countries. It calls for changing the US protection regime to make it more responsive to the risks many asylum seekers actually face by creating a broader “complementary protection” standard and a more effective procedure for assessing individual protection claims, while reserving “temporary protection” for rare situations of mass influx that overwhelm the government’s capacity to process individual asylum claims. The article looks at alternative models for complementary protection from other jurisdictions, and shows how the US asylum and TPS system (in contrast to most other jurisdictions) fails to provide a mechanism for protecting arriving asylum seekers who do not qualify as refugees but who nevertheless would be at real risk of serious harm based on cruel, inhuman, or degrading treatment or punishment or because of situations of violence or other exceptional circumstances, including natural or human-made disasters or other serious events that disturb public order, that would threaten their lives or personal security. The article proposes that the United States adopt an individualized complementary protection standard for arriving asylum seekers who are not able to meet the 1951 Refugee Convention standard but who would face a serious threat to life or physical integrity if returned because of a real risk of (1) cruel, inhuman, or degrading treatment or punishment; (2) violence; or (3) exceptional situations, for which there is no adequate domestic remedy.
Topic:
Immigration, Border Control, Citizenship, and Domestic Policy
Political Geography:
United States, Central America, and North America