Which factor bears the cost of currency crises?

This paper identifies which of the two factors, namely labour and capital, bears the cost of currency crises and for what reasons. It analyzes two main types of effects that currency crises may have on the labour share: across sector effects and within sector effects. We build a descriptive model with a tradable sector and a non-tradable one which can differ in their capital intensities so that structural changes occurring during currency crises may change the aggregate level of the labour share. The model also highlights that crises erode the bargaining power of workers so that within sectors, crises lower the labour share. We perform estimations on manufacturing sectoral panel data for 20 countries which have experienced currency crises. We conclude that currency crises lower the aggregate manufacturing labour share by 2 points on average and that this decline reflects mostly changes within sectors.Currency crisis ; Labour share ; Factor reallocation ; Matching frictions

FINANCIAL DEVELOPMENT AND INSTABILITY:THE ROLE OF THE LABOUR SHARE

This paper examines the role of the labour share in creating instability in a small open economy. We assume that financial markets are imperfect so that entrepreneurs are credit constrained, and that this constraint is tighter for low levels of financial development. Aghion, Bacchetta and Banerjee (2004) have shown that as the degree of financial development increases, output rises but instability appears for intermediate levels of financial development. Crucially, they assume that labour is paid before production takes place, and hence crises are solely due to the increased cost of debt repayment as firms accumulate capital. We show that under the more reasonable assumption that wages are paid at the end of the period, changes in the labour share also play a role in eroding profitability. Our analysis also predicts that financial crises are associated with substantial movements in the sharing of value added between capital and labour.Financial liberalization, Volatility, Labour share, Credit constraint

GINI DP 12: Factor Components of Inequality. A Cross-Country Study

This paper uses data from the Luxembourg Income Study to examine some of the forces that have driven changes in household income inequality over the last three decades of the 20th century. We decompose inequality for 6 countries (Canada, Germany, Norway, Sweden, the UK, and the US) into the three sources of market income: earnings, property income and income from self-employment. Our findings indicate that although changes in the distribution of earnings are an important aspect of recent increases in inequality, they are not the only one. In some countries the contribution of self-employment income to inequality has been on the rise. In others, increases in inequality in capital income –probably caused by tax changes- account for a substantial fraction of the observed changes in the distribution of income. JEL classification numbers: D31, D33

FINANCIAL DEVELOPMENT AND INSTABILITY:THE ROLE OF THE LABOUR SHARE

This paper examines the role of the labour share in creating instability in a small open economy. We assume that financial markets are imperfect so that entrepreneurs are credit constrained, and that this constraint is tighter for low levels of financial development. Aghion, Bacchetta and Banerjee (2004) have shown that as the degree of financial development increases, output rises but instability appears for intermediate levels of financial development. Crucially, they assume that labour is paid before production takes place, and hence crises are solely due to the increased cost of debt repayment as firms accumulate capital. We show that under the more reasonable assumption that wages are paid at the end of the period, changes in the labour share also play a role in eroding profitability. Our analysis also predicts that financial crises are associated with substantial movements in the sharing of value added between capital and labour

Dynamics of parametric fluctuations induced by quasiparticle tunneling in superconducting flux qubits

We present experiments on the dynamics of a two-state parametric fluctuator in a superconducting flux qubit. In spectroscopic measurements, the fluctuator manifests itself as a doublet line. When the qubit is excited in resonance with one of the two doublet lines, the correlation of readout results exhibits an exponential time decay which provides a measure of the fluctuator transition rate. The rate increases with temperature in the interval 40 to 158 mK. Based on the magnitude of the transition rate and the doublet line splitting we conclude that the fluctuation is induced by quasiparticle tunneling. These results demonstrate the importance of considering quasiparticles as a source of decoherence in flux qubits.Comment: 12 pages, including supplementary informatio

Factor Components of Inequality: A Cross-Country Study

This paper uses data from the Luxembourg Income Study to examine some of the forces that have driven changes in household income inequality over the last three decades of the 20th century. We decompose inequality for 6 countries (Canada, Germany, Norway, Sweden, the UK, and the US) into the three sources of market income (earnings, property income and income from self-employment) and taxes and transfers. Our findings indicate that although changes in the distribution of earnings are an important aspect of recent increases in inequality, they are not the only one. Greater earnings dispersion has in some cases been accompanied by a reduction in the share of earnings that dampened its impact on overall household income inequality. In some countries the contribution of self-employment income to inequality has been on the rise, while in others, increases in inequality in capital income account for a substantial fraction of the observed distributional changes

Factor components of inequality: Cross-country differences and time changes

Recent work on inequality has examined either changes in the distribution of income or in that of earnings, without examining how the latter affects the former. In this paper we perform a factor decomposition of income inequality in order to assess the importance of earnings and income from other sources in recent changes in inequality. We examine data for 8 industrial countries over the last three decades of the 20th century. Our findings indicate that although changes in the distribution of earnings are an important aspect of recent increases in inequality, they are not the only one. In some countries the contribution of self-employment income to inequality has been on the rise. In others, increases in inequality in capital income - probably caused by tax changes - account for a substantial fraction of changes in the distribution of income

Pyrosequencing analysis of fungal assemblages from geographically distant, disparate soils reveals spatial patterning and a core mycobiome

Identifying a soil core microbiome is crucial to appreciate the established microbial consortium, which is not usually subjected to change and, hence, possibly resistant/resilient to disturbances and a varying soil context. Fungi are a major part of soil biodiversity, yet the mechanisms driving their large-scale ecological ranges and distribution are poorly understood. The degree of fungal community overlap among 16 soil samples from distinct ecosystems and distant geographic localities (truffle grounds, a Mediterranean agro-silvo-pastoral system, serpentine substrates and a contaminated industrial area) was assessed by examining the distribution of fungal ITS1 and ITS2 sequences in a dataset of 454 libraries. ITS1 and ITS2 sequences were assigned to 1,660 and 1,393 Operational Taxonomic Units (OTUs; as defined by 97% sequence similarity), respectively. Fungal beta-diversity was found to be spatially autocorrelated. At the level of individual OTUs, eight ITS1 and seven ITS2 OTUs were found in all soil sample groups. These ubiquitous taxa comprised generalist fungi with oligotrophic and chitinolytic abilities, suggesting that a stable core of fungi across the complex soil fungal assemblages is either endowed with the capacity of sustained development in the nutrient-poor soil conditions or with the ability to exploit organic resources (such as chitin) universally distributed in soils