Financialization

Does financial sector develop in line with its nature? Does part of financial development, which is in line with its nature, approve mainstream opinion in regard to finance-growth relationship? By considering financialization phenomenon within an ARDL-Bounds testing approach, this study re-examined the causal relationship between financial development and economic growth in the USA during the period 1961–2012. Using Principal Component Analysis (PCA), indicators of financial sector development (FD) and financialization (FIN) were created. After that, Granger causality test was applied using the ARDL-ECM methodology. According to the results: 1) a bilateral relationship between financial development and economic growth was observed; while financial development had negative and significant impact on economic growth, the influence of economic growth on financial development was not significant although it was positive; 2) financialization significantly affected financial development through efficiency channel. Obtained results can be used by policy makers in different countries, although the study is applied for the USA.

Does financial sector develop in line with its nature? Does part of financial development, which is in line with its nature, approve mainstream opinion in regard to finance-growth relationship? By considering financialization phenomenon within an ARDL-Bounds testing approach, this study re-examined the causal relationship between financial development and economic growth in the USA during the period 1961–2012. Using Principal Component Analysis (PCA), indicators of financial sector development (FD) and financialization (FIN) were created. After that, Granger causality test was applied using the ARDL-ECM methodology. According to the results: 1) a bilateral relationship between financial development and economic growth was observed; while financial development had negative and significant impact on economic growth, the influence of economic growth on financial development was not significant although it was positive; 2) financialization significantly affected financial development through efficiency channel. Obtained results can be used by policy makers in different countries, although the study is applied for the USA. JEL Classification: O11; O16; O51; G20.

American Dream is a national ethos of the United States, which was first coined by James Truslow Adams in the 20 th century, meaning everyone should have the opportunity to reach what s/he desires according to his/her abilities and attempts. Although the concept of American Dream existed from the beginning days of the establishment of the United States, it has undergone significant changes throughout the country’s history. This study investigates the effect of the financialization of the economy (the increase of the importance and the size of the financial sector relative to the entire economy) in the 21 st century on the three key elements of the American Dream—homeownership, employment, and income—from George Bush’s presidency in 2001 to the end of Barack Obama's presidency in 2016. The theoretical framework of the study is the American Dream Theory and the financialization of capitalization, and its methodology consists of a qualitative historical analysis. The result of the study indicate that financialization of the economy in the 21 st century caused the American Dream to become more financialized: while presidents Bush and Obama promised to realize American Dream for all Americans, in practice, their administration policies were more in the interest of financial institutions and the rich, rather than low and middle-class Americans.

Purpose - The ecological crisis of Lake Urmia began in 1995, and its critical state was announced in 2014. Previous studies have demonstrated that farmers and water management in agriculture sector are the main contributors to the crisis. Therefore, the purpose of this study is to investigate the role of neoliberalization in water financing, commodification, and privatization programs in reducing the water level of Lake Urmia. Design/methodology/approach - This research is descriptive-analytical in terms of method. The method of data collection is also documentary and field interviews. The documents include the laws of First Plans (1990) to the Fifth (2011) of the Islamic Republic of Iran, the Fair Water Distribution Acts (1982), and the Provincial Agricultural, and Water Development Documents. The documentary analysis approach corresponds to the interpretive analysis paradigm of information analysis. Findings - What the represented results and the discussions indicate is that when politics and economics are together (as it always is today), separation becomes a neoliberal trick to restore order and self-preservation, and it causes, “The separation of the elements of water, the exploiter, the private interest from the public interest, and from each other”. In this way, by using fake tricks in the name of development and protection, it uses the environment and water resources to gain legitimacy and capital accumulation and transfers the costs of these conspiracies to the environment and the water source. Original/value- Nevertheless, it seems that the policies of structural adjustment and implementation of programs in different governments have created different "separations" and they have imposed enormous environmental costs on water resources.