Earth economics studies the economy of our planet from the perspective of an autarkic system (a “closed economy”). It ignores the constituent national and regional parts of the planet economy and focuses on the whole. The book respects the heritages of IS/LM (Keynes) and neoclassical growth (Solow) not out of economic respect but because these tools are very useful in understanding the crisis and the policy response to that crisis.
is blamed for many socio-economic shortcomings. I discuss the consequences of
globalization by surveying the empirical globalization literature. My focus is
on the KOF indices of globalization (Dreher 2006a and Dreher et al. 2008a),
that have been used in more than 100 studies. Early studies using the KOF index
reported correlations between globalization and several outcome variables.
Studies published more recently identify causal effects. The evidence shows
that globalization has spurred economic growth, promoted gender equality, and
improved human rights. Moreover, globalization did not erode welfare state
activities, did not have any significant effect on labor market interaction and
hardly influenced market deregulation. It increased however within-country
income inequality. The consequences of globalization thus turn out to be
overall much more favorable than often conjectured in the public discourse. Book: 152-154