All these premises having, as I think, been clearly made out, it is impossible that the rulers now on earth should make any benefit, or derive any the least shadow of authority from that, which is held to be the fountain of all power, Adam's private dominion and paternal jurisdiction; so that he that will not give just occasion to think that all government in the world is the product only of force and violence, and that men live together by no other rules but that of beasts, where the strongest carries it, and so lay a foundation for perpetual disorder and mischief, tumult, sedition and rebellion, (things that the followers of that hypothesis so loudly cry out against) must of necessity find out another rise of government, another original of political power, and another way of designing and knowing the persons that have it, than what Sir Robert Filmer hath taught us.

Two Treatises of Government.

Business cycles are both less volatile and more synchronized with the world cycle in rich countries than in poor ones. We develop two alternative explanations based on the idea that comparative advantage causes rich countries to specialize in industries that use new technologies operated by skilled workers, while poor countries specialize in industries that use traditional technologies operated by unskilled workers. Since new technologies are difficult to imitate, the industries of rich countries enjoy more market power and face more inelastic product demands than those of poor countries. Since skilled workers are less likely to exit employment as a result of changes in economic conditions, industries in rich countries face more inelastic labour supplies than those of poor countries. We show that either asymmetry in industry characteristics can generate cross-country differences in business cycles that resemble those we observe in the data. We are grateful to Daron Acemoglu and Fabrizio Perri for useful comments. The views expressed here are the authors' and do not necessarily reflect those of The World Bank. Business cycles are not the same in rich and poor countries. A first difference is that fluctuations in per capita income growth are smaller in rich countries than in poor ones, in the top panel of Figure 1 , we plot the standard deviation of per capita income growth against the level of (log) per capita income for a large sample of countries. We refer to this relationship as the volatility graph and note that it slopes downwards. A second difference is that fluctuations in per capita income growth are more synchronized with the world cycle in rich countries than in poor ones. In the bottom panel of Figure 1 , we plot the correlation of per capita income growth rates with world average per capita income growth, excluding the country in question, against the level of (log) per capita income for the same set of countries. We refer to this relationship as the comovement graph and note that it slopes upwards. Table 1 , which is self-explanatory, shows that these facts apply within different sub-samples of countries and years. 1 Why are business cycles less volatile and more synchronized with the world cycle in rich countries than in poor ones? Part of the answer must be that poor countries exhibit more political and policy instability, they are less open or more distant from the geographical center, and they also have a higher share of their economy devoted to the production of agricultural products and the extraction of minerals. Table 1 shows that, in a statistical sense, these factors explain a substantial fraction of the variation in the volatility of income growth, although they do not explain much of the variation in the comovement of income growth. More important for our purposes, the strong relationship between income and the properties of business cycles reported in Table 1 is still present after we control for these variables. In short, there must be other factors behind the strong patterns depicted in Figure 1 beyond differences in political instability, remoteness and the importance of natural resources. With the exception that the comovement graph seems to be driven by differences between rich and poor countries and not within each group. Acemoglu and Zilibotti (1997) also present the volatility graph. They provide an explanation for it based on the observation that rich countries have more diversified production structures. We are unaware of any previous reference to the comovement graph. In this paper, we develop two alternative but non-competing explanations for why business cycles are less volatile and more synchronized with the world in rich countries than in poor ones. Both explanations rely on the idea that comparative advantage causes rich countries to specialize in industries that require new technologies operated by skilled workers, while poor countries specialize in industries that require traditional technologies operated by unskilled workers. This pattern of specialization opens up the possibility that cross-country differences in business cycles are the result of asymmetries between these types of industries. In particular, both of the explanations advanced here predict that industries that use traditional technologies operated by unskilled workers will be more sensitive to country-specific shocks. Ceteris paribus, these industries will not only be more volatile but also less synchronized with the world cycle since the relative importance of global shocks is lower. To the extent that the business cycles of countries reflect those of their industries, differences in industrial structure could potentially explain the patterns in Figure 1 . One explanation of why industries react differently to shocks is based on the idea that firms using new technologies face more inelastic product demands than those using traditional technologies. New technologies are difficult to imitate quickly for technical reasons and also because of legal patents. This difficulty confers a cost advantage on technological leaders that shelters them from potential entrants and gives them monopoly power in world markets. Traditional technologies are easier to imitate because enough time has passed since their adoption and also because patents have expired or have been circumvented. This implies that incumbent firms face tough competition from potential entrants and enjoy little or no monopoly power in world markets. The price-elasticity of product demand affects how industries react to shocks. Consider, for instance, the effects of country-specific shocks that encourage production in all industries. In industries that use new technologies, firms have monopoly power and face inelastic demands for their products. As a result, fluctuations in supply lead to opposing changes in prices that tend to stabilize industry income. In industries that use traditional technologies, firms face stiff competition from abroad and therefore face elastic demands for their products. As a result, fluctuations in supply have little or no effect on their prices and industry income is more volatile. To the extent that this asymmetry in the degree of product-market competition is important, incomes of industries that use new technologies are likely to be less sensitive to country-specific shocks than those of industries that use traditional technologies. Another explanation for why industries react differently to shocks is based on the idea that the supply of unskilled workers is more elastic than the supply of skilled workers. A first reason for this asymmetry is that non-market activities are relatively more attractive to unskilled workers whose market wage is lower than that of skilled ones. Changes in labour demand might induce some unskilled workers to enter or abandon the labour force, but are not likely to affect the participation of skilled workers. A second reason for the asymmetry in labour supply across skill categories is the imposition of a minimum wage. Changes in labour demand might force some unskilled workers in and out of unemployment, but are not likely to affect the employment of skilled workers. The wage-elasticity of the labour supply also has implications for how industries react to shocks. Consider again the effects of country-specific shocks that encourage production in all industries and therefore raise the labour demand. Since the supply of unskilled workers is elastic, these shocks lead to large fluctuations in employment of unskilled workers. In industries that use them, fluctuations in supply are therefore magnified by increases in employment that make industry income more volatile. Since the supply of skilled workers is inelastic, the same shocks have little or no effects on the employment of skilled workers. In industries that use them, fluctuations in supply are not magnified and industry income is less volatile. To the extent that this asymmetry in the elasticity of labour supply is important, incomes of industries that use unskilled workers are likely to be more sensitive to country-specific shocks than those of industries that use skilled workers To study these hypotheses we construct a stylized world equilibrium model of the cross-section of business cycles. Inspired by the work of Davis (1995), we consider in section one a world in which differences in both factor endowments a la Heckscher-Ohlin and industry technologies a la Ricardo combine to determine a country's comparative advantage and, therefore, the patterns of specialization and trade. To generate business cycles, we subject this world economy to the sort of productivity fluctuations that have been emphasized by Kydland and Prescott (1982). 2 In section two, we characterize the cross-section of business cycles and show how asymmetries in the elasticity of product demand and/or labour supply can be used to explain the evidence in Figure 1 . Using available microeconomic estimates of the key parameters, we calibrate the model and find that: (i) The model exhibits slightly less than two-thirds and one-third of the observed cross-country variation in volatility and comovement, respectively; and (ii) The asymmetry in the elasticity of product demand seems to have a quantitatively stronger effect on the slopes of the volatility and comovement graphs, than the elasticity in the labour supply. We explore these results further in sections three and four. In section three, we extend the model to allow for monetary shocks that have real effects since firms face cash-in-advance constraints. We use the model to study how cross-country variation in monetary policy and financial development affect the cross-section of business cycles. Once these factors are considered, the calibrated version of the model exhibits roughly the same cross-country variation in volatility and about 40 percent of the variation in comovement as the data. In section four, we show th

http://link.springer.com/content/pdf/10.1007/BF01322868.pdf

Business cycles: A methodological approach

ChatGPT is not only fun to chat with, but it also searches information, answers questions, and gives advice. With consistent moral advice, it can improve the moral judgment and decisions of users. Unfortunately, ChatGPT's advice is not consistent. Nonetheless, it does influence users' moral judgment, we find in an experiment, even if they know they are advised by a chatting bot, and they underestimate how much they are influenced. Thus, ChatGPT corrupts rather than improves its users' moral judgment. While these findings call for better design of ChatGPT and similar bots, we also propose training to improve users' digital literacy as a remedy. Transparency, however, is not sufficient to enable the responsible use of AI. 

/pdf/chatgpts-inconsistent-moral-advice-influences-users-judgment-3e33a96c.pdf

ChatGPT’s inconsistent moral advice influences users’ judgment

Generative Artificial Intelligence (AI), such as ChatGPT by OpenAI, has revolutionized the business world, with benefits including improved accessibility, efficiency, and cost reduction.This article reviews recent developments of generative AI in business and finance, summarizes its practical applications, provides examples of the latest generative AI tools, and demonstrates that generative AI can revolutionize data analysis in industry and academia.To test the ability of generative AI to support decision-making in financial markets, we use the ChatGPT to capture corporate sentiments towards environmental policy by inputting text extracted from corporate financial statements.Our results demonstrate that the sentiment scores generated by ChatGPT can predict firms' riskmanagement capabilities and stock return performance.This study also highlights the potential challenges and limitations associated with generative AI.Finally, we propose several questions for future research at the intersection of generative AI with business and finance. 

From fiction to fact: the growing role of generative AI in business and finance

Several seminal ethics initiatives have stipulated sets of principles and standards for good technology development in the AI sector. However, widespread criticism has pointed out a lack of practical realization of these principles. Following that, AI ethics underwent a practical turn, but without deviating from the principled approach and the many shortcomings associated with it. This paper proposes a different approach. It defines four basic AI virtues, namely justice, honesty, responsibility and care, all of which represent specific motivational settings that constitute the very precondition for ethical decision making in the AI field. Moreover, it defines two second-order AI virtues, prudence and fortitude, that bolster achieving the basic virtues by helping with overcoming bounded ethicality or the many hidden psychological forces that impair ethical decision making and that are hitherto disregarded in AI ethics. Lastly, the paper describes measures for successfully cultivating the mentioned virtues in organizations dealing with AI research and development.

pdf/ai-virtues-the-missing-link-in-putting-ai-ethics-into-3fykp2cnat.pdf

AI virtues - The missing link in putting AI ethics into practice.

During the last decade there has been burgeoning research concerning the ways in which we should think of and apply the concept of responsibility for Artificial Intelligence. Despite this conceptual richness, there is still a lack of consensus regarding what Responsible AI entails on both conceptual and practical levels. The aim of this paper is to connect the ethical dimension of responsibility in Responsible AI with Aristotelian virtue ethics, where notions of context and dianoetic virtues play a grounding role for the concept of moral responsibility. The paper starts by highlighting the important difficulties in assigning responsibility to either technologies themselves or to their developers. Top-down and bottom-up approaches to moral responsibility are then contrasted, as we explore how they could inform debates about Responsible AI. We highlight the limits of the former ethical approaches and build the case for classical Aristotelian virtue ethics. We show that two building blocks of Aristotle’s ethics, dianoetic virtues and the context of actions, although largely ignored in the literature, can shed light on how we could think of moral responsibility for both AI and humans. We end by exploring the practical implications of this particular understanding of moral responsibility along the triadic dimensions of ethics by design, ethics in design and ethics for designers.

/pdf/understanding-responsibility-in-responsible-ai-dianoetic-16ipootetj.pdf

Understanding responsibility in Responsible AI. Dianoetic virtues and the hard problem of context

Blame It on the AI? On the Moral Responsibility of Artificial Moral Advisors

With AI permeating our lives, there is widespread concern regarding the proper framework needed to morally assess and regulate it. This has given rise to many attempts to devise ethical guidelines that infuse guidance for both AI development\nand deployment. Our main concern is that, instead of a genuine ethical interest for AI, we are witnessing moral diplomacies resulting in moral bureaucracies battling for moral supremacy and political domination. After providing a short overview\nof what we term ‘ethics washing’ in the AI industry, we analyze the 2021 UNESCO Intergovernmental Meeting of Experts (Category II) tasked with drafting the Recommendation on the Ethics of Artificial Intelligence and show why the term ‘moral diplomacy’ is better suited to explain what is happening in the field of the ethics of AI. Our paper ends with some general considerations regarding the future of the ethics of AI.

The emperor is naked

/pdf/how-to-assess-the-emergence-of-the-european-pirate-parties-2py4ezfugy.pdf

How to assess the emergence of the European Pirate Parties. Towards a research agenda

In the following paper we will talk about the issue of the access of the poor countries of the world to pharmaceuticals and it could be solved just by wholly renouncing the current Intellectual Property regime. The first section of the paper will be concerned with an outline of the problem at hand, namely how the TRIPS agreement was detrimental to the medical conditions of the impoverished from less-developed country. The second section of the paper will outline Thomas Pogge's and Aidan Hollis' solution to this global justice problem: The Health Impact Fund. We will also sketch some criticisms of this proposed solution from a libertarian perspective. The final section of the paper, and the largest, will summarize what we think is the better solution for this conundrum, one that involves dropping patents because, as we will try to show, intellectual monopoly is not a necessary way to incentivize creativity and innovation in the pharmaceutical industry.

The Clash between Global Justice and Pharmaceutical Patents: A Critical Analysis 1

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