Misery Index Corrected by Informality: Applicable to Venezuela
Main Article Content
Keywords
Misery index, Poverty, Employment in the informal sector, Venezuela
Abstract
This paper suggests a variation of the IMO index (Okun's Misery Index), adapting it to markets with these characteristics, adding the ESI level (Employment in the Informal Sector) to the unemployment level. This research compares the evolution of several standard misery indexes in several zones during the last decades, with emphasis on the case of Venezuela, for which the new proposed index is also estimated. Results show improvement in the well-being of groups of countries under study, compared to the deterioration of the indicator in Venezuela. In general terms, the IMO is controlled by unemployment, except in Venezuela. However, preponderance of inflation over unemployment in this country seems to occur by the underestimate that the unemployment rate has on the Venezuelan labor market situation.
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References
Banco Mundial (1998). Stylized facts and the characteristics of the labor supply in Venezuela. What can be done to improve the outcome? Report No. 17901 - VE.
Barro, R. (febrero 21 de 1999). Reagan vs Clinton: Who is the Economic Champ? Recuperado el 10 de octubre de 2012, de Businessweek web site: http://www.businessweek.com/ stories/1999-02-21/reagan-vs-dot-clinton-whos-the-economic-champ
Becchetti, L.; Castriota, S. y Osea, G. (2005). The Effects of Age and Job Protection on the Welfare Costs of Inflation and Unemployment: a Source of ECB anti-inflation bias? Roma, Italia: Universidad de Roma Tor Vergata.
Bell, D. N. F. y Blanchflower, D. G. (septiembre de 2011). The Trade-off between Unemployment and Inflation. IZA, 22.
Castillo, L. D. (noviembre de 2008). La economía informal en Venezuela: una aproximación a sus causas, consecuencias y tamaño. (Tesis de grado). Escuela de Economía, Faces-ULA, Mérida, Venezuela.
Clark, A. y Oswald, A. (1994). Unhappiness and Unemployment. Economic Journal, 104, 648-659.
Dao, M. C. y Prakash, L. (diciembre de 2010). The Tragedy of Unemployment. Finance & Development, 22-25.
Davis, K. y Trebilcock, M. J. (octubre 20 de 1999). What Role do Legal Institutions Play in Development? International Monetary Fund’s Conference on Second Generation Reforms.
Di Tella, R.; MacCulloch, R. J. y Oswald, A. (2001). Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness. American Economic Review, 91(1), 335-341.
Fabrizio, S. y Ashoka, M. (marzo de 2008). Breaking the Impediments to Budgetary Reforms: Evidence from Europe. International Monetary Fund, WP 08/82, 33.
Gaddo, F. (junio 17 de 2011). An International Analysis of the Misery Index. Fondazione Magna Carta, Londra, 23.
Hanke, S. H. (agosto 26 de 2009). The Misery Index: A Reality Check. Recuperado el 10 de octubre de 2012, The Cato Institute web site: http://www.cato.org/publications/commentary/ misery-index-reality-check
Hufbauer, G. C. y Muir, J. (septiembre de 2012). “Augmented Misery Index: First Half of 2012”. Recuperado el 11 de noviembre de 2012, de Peterson Institute for International Economics site: http://www.iie.com/publications/papers/paper.cfm?ResearchID=1467.
Instituto Nacional de Estadística, INE (1 de noviembre de 2012). Ficha técnica de las necesidades básicas insatisfechas. Recuperado de: http://www.ine.gov.ve/index.php?option= com_content&id=353&Itemid=45&view=article%20%20%20%20
Lechman, E. (2009). Okun`s and Barro`s Misery Index as an Alternative Poverty Assessment Tool. Recent Estimations for European Countries. Munich Personal RePEc Archive, 11.
Lovell, M. C. y Pao-Lin, T. (2000). Economic Discomfort and Consumer Sentiments. Eastern Economic Journal, 26, 1-5.
Organización Internacional del Trabajo, OIT (11 de mayo de 1993). Decimoquinta Conferencia Internacional de Estadísticos del Trabajo. Ginebra, Suiza.
Quijano, A. (2004). El laberinto de América Latina: ¿hay otras salidas? Revista Venezolana de Economía y Ciencias Sociales, 10(1), 75-97.
Ramoni, J. (2012). Descripción y análisis de los principales indicadores laborales. Mérida, Venezuela: Consejo de Publicaciones ULA-BCV.
Sen, Amartya (1989). Development as Capability Expansion. Journal of Development Planning, 19, 41-58.
Sen, Amartya (1993). Capability and Well-Being. En M. Nussbaum y A. Sen (Eds.), The Quality of Life (pp. 30-53). Nueva York, NY: Oxford Clarendon Press.
Tang, C. F. y Hooi, H. L. (febrero de 2009). New evidence from the misery index in the crime function. Economics Letters, 102(9), 112-115.
Winkelmann, L. y Winkelmann, R. (1998). Why Are the Unemployed So Unhappy? Evidence from Panel Data. Economica, 65(257), 1-15.
Barro, R. (febrero 21 de 1999). Reagan vs Clinton: Who is the Economic Champ? Recuperado el 10 de octubre de 2012, de Businessweek web site: http://www.businessweek.com/ stories/1999-02-21/reagan-vs-dot-clinton-whos-the-economic-champ
Becchetti, L.; Castriota, S. y Osea, G. (2005). The Effects of Age and Job Protection on the Welfare Costs of Inflation and Unemployment: a Source of ECB anti-inflation bias? Roma, Italia: Universidad de Roma Tor Vergata.
Bell, D. N. F. y Blanchflower, D. G. (septiembre de 2011). The Trade-off between Unemployment and Inflation. IZA, 22.
Castillo, L. D. (noviembre de 2008). La economía informal en Venezuela: una aproximación a sus causas, consecuencias y tamaño. (Tesis de grado). Escuela de Economía, Faces-ULA, Mérida, Venezuela.
Clark, A. y Oswald, A. (1994). Unhappiness and Unemployment. Economic Journal, 104, 648-659.
Dao, M. C. y Prakash, L. (diciembre de 2010). The Tragedy of Unemployment. Finance & Development, 22-25.
Davis, K. y Trebilcock, M. J. (octubre 20 de 1999). What Role do Legal Institutions Play in Development? International Monetary Fund’s Conference on Second Generation Reforms.
Di Tella, R.; MacCulloch, R. J. y Oswald, A. (2001). Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness. American Economic Review, 91(1), 335-341.
Fabrizio, S. y Ashoka, M. (marzo de 2008). Breaking the Impediments to Budgetary Reforms: Evidence from Europe. International Monetary Fund, WP 08/82, 33.
Gaddo, F. (junio 17 de 2011). An International Analysis of the Misery Index. Fondazione Magna Carta, Londra, 23.
Hanke, S. H. (agosto 26 de 2009). The Misery Index: A Reality Check. Recuperado el 10 de octubre de 2012, The Cato Institute web site: http://www.cato.org/publications/commentary/ misery-index-reality-check
Hufbauer, G. C. y Muir, J. (septiembre de 2012). “Augmented Misery Index: First Half of 2012”. Recuperado el 11 de noviembre de 2012, de Peterson Institute for International Economics site: http://www.iie.com/publications/papers/paper.cfm?ResearchID=1467.
Instituto Nacional de Estadística, INE (1 de noviembre de 2012). Ficha técnica de las necesidades básicas insatisfechas. Recuperado de: http://www.ine.gov.ve/index.php?option= com_content&id=353&Itemid=45&view=article%20%20%20%20
Lechman, E. (2009). Okun`s and Barro`s Misery Index as an Alternative Poverty Assessment Tool. Recent Estimations for European Countries. Munich Personal RePEc Archive, 11.
Lovell, M. C. y Pao-Lin, T. (2000). Economic Discomfort and Consumer Sentiments. Eastern Economic Journal, 26, 1-5.
Organización Internacional del Trabajo, OIT (11 de mayo de 1993). Decimoquinta Conferencia Internacional de Estadísticos del Trabajo. Ginebra, Suiza.
Quijano, A. (2004). El laberinto de América Latina: ¿hay otras salidas? Revista Venezolana de Economía y Ciencias Sociales, 10(1), 75-97.
Ramoni, J. (2012). Descripción y análisis de los principales indicadores laborales. Mérida, Venezuela: Consejo de Publicaciones ULA-BCV.
Sen, Amartya (1989). Development as Capability Expansion. Journal of Development Planning, 19, 41-58.
Sen, Amartya (1993). Capability and Well-Being. En M. Nussbaum y A. Sen (Eds.), The Quality of Life (pp. 30-53). Nueva York, NY: Oxford Clarendon Press.
Tang, C. F. y Hooi, H. L. (febrero de 2009). New evidence from the misery index in the crime function. Economics Letters, 102(9), 112-115.
Winkelmann, L. y Winkelmann, R. (1998). Why Are the Unemployed So Unhappy? Evidence from Panel Data. Economica, 65(257), 1-15.
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Published
Nov 29, 2013
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How to Cite
Ramoni Perazzi, J., & Orlandoni Merli, G. (2013). Misery Index Corrected by Informality: Applicable to Venezuela. Ecos De Economía, 17(37), 29–49. https://doi.org/10.17230/ecos.2013.37.2
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