21 Jul 2015
by Jim Rose
in economic history, economics of regulation, global financial crisis (GFC), job search and matching, labour economics, labour supply, law and economics, minimum wage, politics - USA, unions
Tags: British economy, employment law, employment regulation, Eurosclerosis, France, Germany, Index of Economic Freedom
The writers of the Index of Economic Freedom at the Heritage foundation really loves the USA and didn’t think much of the Conservative Party – Liberal Democratic Party coalition government because labour market freedom actually fell in the UK during their administration. Bring back Tony Blair, all is forgiven. The information on their website throws no insight into why this reduction in labour market freedom in Britain happened.
Figure 1: Index of Economic Freedom, Argentina, Brazil, Chile and Venezuela, 95 – 2015 
Source: Index of Economic Freedom 2015.
Fortunately for Germany, labour market freedom increased over the course of the global financial crisis and its aftermath. This helps explains low unemployment in Germany during that period. Nothing much happened in France in regard to labour market freedom.
19 Jul 2015
by Jim Rose
in business cycles, economic growth, economic history, fiscal policy, job search and matching, labour economics, macroeconomics, unemployment
Tags: Celtic Tiger, equilibrium unemployment rate, Eurosclerosis, Germany, Ireland, Italy, natural unemployment rate, Rance, Spain
Figure 1 shows large contrasts in time path of equilibrium unemployment rates. For example, French and Italian equilibrium unemployment rates haven’t changed much since about 1986.
Figure 1: equilibrium unemployment rates, France, Germany, Italy, Ireland and Spain, 1968 – 2016
Source: OECD Economic Outlook June 2015 via OECD StatExtract..
Figure 1 also shows some fortuitous ups and downs in the German equilibrium unemployment rate. This estimate was available only from after German unification.
The equilibrium German unemployment rate rose from 6% to above 8% on the eve of the global financial crisis. Fortunately for Germany, major labour market reforms brought the equilibrium unemployment rate down as Germany moved into the global financial crisis.
The Spanish equilibrium unemployment rate had been terrible since about 1980, started to fall in the 1990s, then skyrocketed even before the onset of the global financial crisis – see figure 1.
There have been ups and downs in the Irish equilibrium unemployment rate – see figure 1. It was as high as 14% at the end of the Irish great depression of the 1970s and 1980s. The equilibrium Irish unemployment rate was 8% at the heyday of the Celtic tiger then slowly rose in the lead up to the global financial crisis.
17 Jul 2015
by Jim Rose
in economics of regulation, industrial organisation, international economics, politics - USA
Tags: border costs, British economy, Canada, Common market, Common markets, customs unions, EU, France, free trade areas, Germany, Italy, NAFTA, trade costs
Figure 1: World Bank Doing Business rankings and sub rankings for trading across the French, German, Italian, British, Canadian and US borders, 2014
Source: World Bank Doing Business database; note: cost of importing and exporting not included.
Figure 2: World Bank Doing Business rankings – cost of importing and exporting across the French, German, Italian, British, Canadian and US borders, 2014
Source: World Bank Doing Business database; note: cost of importing and exporting not included.
13 Jul 2015
by Jim Rose
in applied price theory, applied welfare economics, economics of religion, law and economics, politics - USA, property rights
Tags: British economy, doing business, France, Germany
Figure 1: registering property rankings, USA, UK, Germany and France – World Bank Doing Business rankings, 2014
Source: Doing Business – Measuring Business Regulations – World Bank Group.
11 Jul 2015
by Jim Rose
in applied price theory, applied welfare economics, comparative institutional analysis, economics of regulation, industrial organisation, law and economics, politics - USA, property rights
Tags: British economy Doing Business, France, Germany, World Bank
Figure 1: Starting a business rankings, USA, UK, Germany and France – World Bank Doing Business rankings, 2014
Source: Doing Business – Measuring Business Regulations – World Bank Group.
I have no idea why you have to pledge one third of German per capita income to start a business in Germany. It takes about a week and a half a dozen procedures to start a business in the other countries.
In New Zealand, you can start a business within the hour by registering for GST and registering your company online.
10 Jul 2015
by Jim Rose
in economic history, economics of media and culture
Tags: Berlin wall, Cold War, collapse of communism, East Germany, fall of the Berlin wall, German unification, Germany, Greece, public intellectuals, West Germany
10 Jul 2015
by Jim Rose
in applied price theory, applied welfare economics, comparative institutional analysis, economics of regulation, industrial organisation, law and economics, property rights
Tags: British economy, doing business, France, Germany, World Bank
Figure 1: World Bank Doing Business rankings, France, Germany and the UK, 2014
Source: Doing Business – Measuring Business Regulations – World Bank Group.
Some things are decidedly harder to do in Germany and France than for businesses in the UK. On the other hand, it is surprisingly hard to register property in all three countries including the UK after 700 years of the blessings of the British common law.
Paying taxes in Germany and France are far harder than in the UK. Don’t have anything to do with construction permits in France unless you must. It is surprisingly hard to get the electricity on in the UK and France.
The European Union must have some benefits when it comes to trading across the borders of all three countries. Only problem is in Germany where it is very difficult to start a business in the first place. Why is for a later posting.
09 Jul 2015
by Jim Rose
in applied price theory, applied welfare economics, comparative institutional analysis, economics of regulation, industrial organisation, law and economics, politics - Australia, politics - New Zealand, politics - USA, property rights
Tags: British economy, doing business, France, Germany, Italy, World Bank
Figure 1: Starting a business rankings – World Bank Doing Business rankings, OECD countries, 2014
Source: Doing Business – Measuring Business Regulations – World Bank Group.
There is surprising wide range in the World Bank Doing Business ranking of the difficulty and delays in starting a business across the OECD.
Germany is ranked 114 from the world for starting a business. New Zealand is ranked first with the USA, Italy and the UK ranked in the mid 40s in the Doing Business database.
06 Jul 2015
by Jim Rose
in budget deficits, business cycles, currency unions, economic growth, Euro crisis, financial economics, fiscal policy, global financial crisis (GFC), macroeconomics
Tags: bank runs, banking panics, Eurosclerosis, Germany, Greece, sovereign defaults
Greece is a tiny part of the European economies so it doesn’t matter that much to the rest of the European Union what happens to Greece. The only people will notice the sovereign default of Greece once the breathless journalism has died down are Greeks themselves as they rebuild their banking and monetary system against a background of a government run by coffee shop Marxists.
10 Jun 2015
by Jim Rose
in business cycles, currency unions, economic growth, Euro crisis, global financial crisis (GFC), great recession, macroeconomics
Tags: Eurosclerosis, France, Germany, Italy, Spain
04 Jun 2015
by Jim Rose
in economic history, labour economics, unions
Tags: British economy, France, Germany, Italy, trade union density, union power
Figure 1: French, German, Italian and British trade union densities, 1960 – 2013
Source: OECD Stat Extract
03 Jun 2015
by Jim Rose
in economic growth, economic history, job search and matching, labour economics, labour supply, macroeconomics, unemployment
Tags: Eurosclerosis, France, Germany, Italy
Figure 1: French, German and Italian unemployment rates, 1956 – 2013
Source: OECD StatExtract.
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