Vol. 25 No. 2 (2005): Apr-Jun / 2005

Vol. 25 No. 2 (2005)

Apr-Jun / 2005
Published April 1, 2005


Innovation, competition and financial vulnerability in economic development
Leonardo Burlamaqui, Jan Kregel
Brazilian Journal of Political Economy

The financial sector has been viewed traditionally as either providing the “oil” for the “wheels of commerce” or as a parasite on the real sector of the economy where real productivity gains provide for increasing real wages and per capita incomes. The present paper takes a different route and attempts to an analysis of financial institutions on a par with the production sector of the economy. It also develops a link which amalgamates “the knowledge-based” perspective on firms’ operations with Schumpeterian financial leverage to exploit productivity enhancing innovations, and Minsky’s tendency towards financial fragility. The analysis also leads to some policy recommendations concerning financial regulation, risk management and financial institution’s building.

JEL Classification: F, F02, F37, F4, O20.

The return of Ulysses´: Notes on the Logic of Plans and Commitments
Ana Maria Bianchi, Roberta Muramatsu
Brazilian Journal of Political Economy

This paper criticizes the conventional theory of choice for being grounded on a minimal set of rationality axioms. We claim that this theory does not take due account of the fact that agents are driven by motives other than the pursuit of material self-interest. Our departure point is logic of commitments and planned action, which helps us to identify some puzzles in the conventional theory of choice. As a way out, we discuss the Kantian perspective and the notions of metapreference and metaranking. We then build a model of choice which points to the possibility of a systematic treatment of higher order preferences and incommensurable objectives.

JEL Classification: B41, D01.

Amit Bhaduri
Brazilian Journal of Political Economy

The paper is divided into three parts, and a summary at the end. Part one explains how policies conditioned by historical circumstances moved away from the objective of high employment. Part two deals with the theoretical controversies in support or against particular policies. Part three sets out the basics in theory needed for a high employment policy. The paper concludes with a summary suggestion of some operational steps and observations.

JEL Classification: E24, E61, E62, E66.

The impact on advanced economics of north-south trade in manufacturing and services
Robert Rowthorn
Brazilian Journal of Political Economy

Many types of production are being transferred from the rich economies of the North to the poorer economies of the South. Such changes began in manufacturing but are now spreading to services. This paper provides estimates of their past and future impact on employment in the North. About 5 million manufacturing jobs have been lost over the past decade because of trade with low-wage economies. A similar number of service jobs may be lost to low-wage economies over the next decade. Although small compared to total employment, such losses may seriously harm certain localities or types of worker.

JEL Classification: F16, M55, L60, L80.

Foreign direct investment, accumulation of productive capital and income distribution a post-keynesian approach
Mário Augusto Bertella, Gilberto Tadeu Lima
Brazilian Journal of Political Economy

It is developed a macrodynamic model in the post-keynesian tradition of political economy of the productive capital accumulation and income distribution to analyze some of the impacts of the (flow of) foreign direct investment and the (stock of) foreign productive capital on capital accumulation, economic growth and functional income distribution in a stylized economy. Alongside a usual demand effect, the impacts of such an internationalization of local capital through labor productivity and market concentration are taken into account as well.

JEL Classification: E22, E25.

Inflation Bias: an appraisal
Helder Ferreira de Mendonça
Brazilian Journal of Political Economy

This short paper offers a brief appraisal of the conventional inflation bias and Cukierman’s new inflation bias. It may also be seen that a lack of equilibrium in the balance of payments represents another reason for the emergence of the inflationary bias in an economy.

JEL Classification: E31, E52.

Exchange regimes: an alternativa model for Brasil
Manoel Carlos de Castro Pires
Brazilian Journal of Political Economy

After the collapse of the Bretton Woods system, many frameworks of exchange rate have been proposed. The aim of this paper is to propose an alternative rule of exchange rate and evaluate the case for Brazil. The analysis of the Brazilian case made necessary the evaluation of auxiliary instruments for its implementation. The paper proposes the use of capital controls or scape clauses.

JEL Classification: F33, F41.

Ownership and control structure of publicly traded companies in Brazil
Dante Mendes Aldrighi, Roberto Mazzer Neto
Brazilian Journal of Political Economy

This paper has as its main objective to measure the magnitude of deviations between control rights and cash-flow rights for the ultimate shareholder with the largest voting rights of limited liability companies in Brazil. Furthermore, it pinpoints how these discrepancies are generated, evaluating the relative importance of the issuance of preferred stocks with no voting rights, pyramidal arrangements of ownership, and cross-shareholdings. The data set embraces 602 companies that in 2001 complied with the mandatory requirement of filing to the CVM.

JEL Classification: G32.


Articles in the press on Celso Furtado
Luiz Carlos Bresser-Pereira, Francisco de Oliveira, Yoshiaki Nakano, Fernando Ferrari Filho, José Serra, Pedro Malan, Marco Maciel, Arturo Guillén R., Ricardo Bielschowsky
Brazilian Journal of Political Economy

Celso Furtado died on November 20, 2004, in Rio de Janeiro. Here we publish some of the articles that were immediately published in the press about his life and work.


Obituary: Celso Furtado
Brazilian Journal of Political Economy