SAGE Journal Articles

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Article 1: Vera, L. (2015). The Distribution of Power and the Inflation-Unemployment Relationship in the United States: A Post-Keynesian Approach. Review of Radical Political Economics, 49(2), 265-285.

Abstract: This paper presents a theoretical explanation for the enigmatic discontinuity of the relationship between inflation and unemployment that has registered the U.S. economy since the early 1950s onwards. I argue that by distinguishing between two different historical episodes after World War II, the Golden Age and the Age of Decline, some insights in the Phillips curve puzzle can be gained and the analysis helps us to substantiate the existence of both downward sloping and upward sloping species of the curve. The regime change is illustrated here by building on a commonly used Post-Keynesian model of distribution and growth, which is enhanced to allow for an inflation process based on a conflicting claims approach and a growth rate form of Okun’s law. The model shows that the long-run Phillips curve can be either downward-sloping or upward-sloping, conditioned to the distribution of market power between business and labor.

Article 2: Goel, R. K. & Saunoris, J. W. (2015). Casting a Long Shadow? Cross-Border Spillovers of Shadow Economy across American States. Public Finance Review, 44(5), 610-634.

Abstract: This article examines the determinants of the shadow economy across American states, with emphasis on cross-border spillover effects. Results show positive spillovers of shadow activities across state borders with different specifications. In other effects, greater unionization in a state induces businesses to go underground, while states without a sales tax had a smaller shadow economy, ceteris paribus. Greater state product checked shadow growth, with military and nonmilitary state products having opposite effects. Finally, states bordering Canada and Mexico had different flows from the shadow sector.