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on Heterodox Microeconomics |
| By: | Gil, Ricard (IESE Business School) |
| Abstract: | This paper empirically examines whether regulation decreases market competition. For this purpose, I use data from Spanish local TV stations for 1996, 1999 and 2002. During this period of time, this industry transitioned from a state of alegality (no regulation in place whatsoever), to being highly regulated and finally to being liberalized. I estimate station population entry thresholds by number of entrants across years to proxy by the nature of competition by determining the necessary market size to sustain an extra station. I find that stations soften competition the most under no regulation and they seem to compete the hardest when highly regulated. I explain in the paper that, even though this is at odds with previous literature, this result is explained by the industry institutions, its low profitability and the nature of the first regulation and its consequent liberalization. |
| Keywords: | regulation; market; competition; TV industry; liberalization; |
| Date: | 2011–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0895&r=hme |
| By: | Isabelle Agier; Ariane Szafarz |
| Abstract: | Women entrepreneurs are known not only to reimburse loans swifter than men, but also to receive smaller loans. However, on average women have smaller-scope business projects and are poorer than men. A deeper investigation is thus required in order to assess the existence of gender discrimination in small-business lending. This is precisely the aim of this paper. Its contribution is twofold. Firstly, it proposes a new estimation method for assessing discrimination in loan allocation. This method operationalizes the theoretical “double standard” approach developed by Ferguson and Peters (1995, Journal of Finance). Secondly, this paper applies the new methodology to an exceptionally rich database from a Brazilian microfinance institution. The empirical results point to gender discrimination. Additionally, it is shown that reducing the information asymmetry through relationship brings no remedy to the curse of the trustworthier sex. |
| Keywords: | Small Business; Microcredit; Gender; Loan Size; Denial Rate; Default |
| JEL: | G24 L26 O16 M13 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/76871&r=hme |
| By: | Paul Makdissi; Myra Yazbeck; Hugo Coldeboeuf |
| Abstract: | This paper uses a fuzzy-fuzzy stochastic dominance approach to compare patients’ leakages in the Canadian and the U.S. health care systems. Leakages are defined in terms of individuals who are in bad health and could not have access to health care when needed. To carry his comparison we rely on the assumption that Canada is a strong counterfactual for the U.S. We first develop a class of fuzzy leakages indices and incorporate them in a stochastic dominance framework to derive the dominance criterion. We then use the derived criterion to perform inter-country comparisons on the global level. To provide more insight, we decompose the analysis with respect to gender, ethnicity, income and education. Intra-country comparisons reveal the presence of income based leakage inequalities in both countries yet, gender, ethnic and education based disparities appear to be present in the U.S. only. As for inter-country comparisons, results are in general consistent with the hypothesis that leakages are less important under the Canadian health care system. |
| Keywords: | Health care resources, Fuzzy sets, Leakage |
| JEL: | D63 I18 I19 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:1107&r=hme |
| By: | Zinovyeva, Natalia (IPP-CSIC); Bagues, Manuel F. (Universidad Carlos III de Madrid) |
| Abstract: | Several countries have recently introduced gender quotas in hiring and promotion committees at universities. This paper studies whether these policies increase the presence of women in top academic positions. The identification strategy exploits the random assignment mechanism in place between 2002 and 2006 in all academic disciplines in Spain to select the members of promotion committees. We find that a larger proportion of female evaluators increases the chances of success of female applicants to full professor positions. The magnitude of the effect is large: each additional woman on a committee composed of seven members increases the number of women promoted to full professor by 14%. Conversely, when committee members decide on promotions to associate professor positions, we do not observe any significant interaction between the gender of evaluators and the gender of candidates. If anything, in this case a larger share of female evaluators is associated with fewer successful female applicants. The evidence is consistent with the existence of ambivalent sexism. |
| Keywords: | academic promotion, gender discrimination, randomized natural experiment |
| JEL: | J71 J45 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5537&r=hme |
| By: | Augusto Velásquez Forero |
| Abstract: | La utilización de las matemáticas como herramienta para comprender la evolución de un sistema económico como el capitalismo ha reducido las categorías económicas del marxismo a la simplicidad. El desconocimiento de las magnitudes del valor en la determinación de la tasa de ganancia pretende dejar sin validez los aportes de Marx a la crítica de la economía política burguesa, simplemente porque a través de la «racionalidad instrumental» se pueden obtener los mismos guarismos sin tener que apelar a explicaciones de orden histórico y social. Los argumentos de Steedman, y las nuevas corrientes del pensamiento económico empecinadas en demostrar todo mediante el lenguaje tecnocrático no reconocen al trabajo como una variable social, ni tampoco que la lucha de clases y los conflictos sociales en la historia se regulan por la evolución de las relaciones de producción y las fuerzas productivas. |
| Date: | 2011–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:col:000418:008004&r=hme |
| By: | José Luis Oreiro (Departamento de Economia (Department of Economics) Faculdade de Economia, Administração, Contabilidade e Ciência da Informação e Documentação (FACE) (Faculty of Economics, Administration, Accounting and Information Science) Universidade de Brasília); Marcos Tostes Lamônica (Economics Department, Fluminense Federal University (UFF).); Carmem Aparecida Feijo (Economics Department, Fluminense Federal University (UFF).) |
| Abstract: | Brazilian economy was the most dynamic in terms of growth among developed and developing economies from post-War until 1980, when a severe external constraint interrupted this trend. We propose in this paper a model, based on Kaldor, where capital accumulation, technological gap and long run external constraint are connected. Our hypothesis is that capital accumulation, under certain circumstances, can overcome external constraint if the accumulation effort promotes structural change increasing the importance of sectors more technological-intensive. It is expected that the structural change in this direction will contribute to an increase in the income-elasticity of exports and to a decrease in income-elasticity of imports, resulting in the increase in the growth rate of real product compatible with the balance of payments equilibrium in the long period. The last part of the paper shows that the high investment rate observed in the Brazilian economy from the post-War until the end of the 1970s resulted in the deepening of the import substitution process, what, in our interpretation, contributed to partially increase the long run growth rate of the Brazilian economy compatible with the balance of payment equilibrium. |
| Keywords: | structural change, technological progress, industrialization, external restriction |
| JEL: | O11 F43 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:brs:wpaper:355&r=hme |
| By: | Kurt Dopfer |
| Abstract: | The paper discusses recent trends in the sister sciences of evolutionary economics and complexity economics. It suggests that a unifying approach that marries the two strands is needed when reconstructing economics as a science capable of tackling the two key questions of the discipline: complex economic structure and evolutionary economic change. Physics, biology and the cultural sciences are investigated in terms of their usefulness as both paradigmatic orientation and as toolbox. The micro–meso–macro architecture delineated puts meso centre stage, highlighting its significance as structure component and as process component alike, thereby allowing us to handle the key issues of structure and change. |
| Keywords: | Length 39 pages |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2011-02&r=hme |
| By: | Xose Luis Quiñoa, (Departamento de Economía Cuantitativa, Universidad de Santiago de Compostela); Laia Pié Dols (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona) |
| Abstract: | Dado un sistema tipo Leontief (o Leontief - Sraffa), se demuestra que puede ser transformado en uno estructuralmente equivalente que denominaremos sistema homogeneizado en el que la matriz tecnológica A así como la inversa de Leontief poseen propiedades matemáticas relevantes relacionadas con el autovalor máximo a de A. Para un sistema homogeneizado es condición necesaria y suficiente para que los precios relativos en el sentido Sraffa permanezcan invariantes al modificar el tipo de beneficio, que los coeficientes de trabajo directo sean iguales. Asimismo para este tipo de sistemas, la razón entre la suma de las mercancías que componen el excedente y la suma de las mercancías utilizadas como medios de producción coincide con el tipo máximo de beneficio. Es lo que Sraffa denomino “razón patrón” (global) en su Sistema Patrón. |
| Keywords: | Homogeneización, sistema de Leontief, Leontief-Sraffa, tipo de beneficio, excedent,capital, trabajo |
| JEL: | C67 D57 R15 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1104&r=hme |
| By: | Efstratoglou, Sophia; Giannakis, Elias; Psaltopoulos, Demetris |
| Abstract: | Current considerations for the post-2013 CAP create the need for the investigation and evaluation of alternative CAP scenarios and their effects on agriculture, environment and regional development in EU rural areas. To this end, a system-dynamics model is developed and utilized to evaluate the impacts of alternative CAP scenarios in a Greek rural area (prefecture of Trikala). This particular model features four basic subsystems (agriculture, environment, regional economy and human resources) specified and analyzed through a linear programming model, a dynamic input-output model and an age-cohort demographic model, respectively. Four alternative policy scenarios are specified, dealing with possible developments on Pillars 1 and 2. Model simulations produce scenario-specific effects for the 2007-2013 period, and up to 2020 in the form of changes in land use and farm output, environmental indicators associated with farm activity, economy-wide impacts and impacts on local population. Results show that different future orientations for the CAP are associated with different impacts on agricultural activity, the environment and total economic activity in this area. A reduction of Pillar 1 funds and a dedication of Pillar 2 spending on Axis 2 generate negative effects on local agriculture, but benefit the local environment and economy-wide incomes. On the other hand, a more âproductiveâ orientation of Pillar 2 positively affects local employment (compared to the current CAP) but does not create any positive or negative effects on the environment of this region |
| Keywords: | CAP, policy impact assessment, rural development, system dynamics, Agricultural and Food Policy, C61, C67, Q18, R58, |
| Date: | 2011–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaa122:99361&r=hme |
| By: | Pascucci, Stefano; Capitanio, Fabian; Del Giudice, Teresa |
| Abstract: | In this paper we analyse different strategies used by Italian organic farmers to create value from credence food production. More specifically, we consider the following strategies: participation in policy support programmes (i.e. rural development measures and agroâenvironmental schemes), direct marketing (i.e. shortâchains, onâfarm businesses, agroâtourism), onâfarm processing and being a member of a marketing and/or processing cooperative. We use data from the 2006 Italian FADN (Farm Accountancy Data Network) related to 981 organic farmers. To estimate the factors affecting farmersâ strategies and to evaluate them simultaneously we implement a multivariate probit model (MVP). The results could be helpful to implement guidelines for public and private intervention in the next CAP programming period. Allowing for differences in farmersâ goals and their impact on the choice of farming method and strategies is important in a modern competitive scenario. |
| Keywords: | Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Institutional and Behavioral Economics, Marketing, Production Economics, Research Methods/ Statistical Methods, |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iefi10:100474&r=hme |
| By: | Parker, Frederick |
| Abstract: | Cooperative business firms are prevalent in agribusiness, yet no concise generalized model exists to demonstrate how and why cooperative firms differ from, and may be selected over, the more common investor owned business firm. It is shown within a generic transaction game that cooperatives fill both producer and consumer roles as an aggregated player that is expected to maximize aggregate producer and consumer payoffs rather than maximizing either payoff separately, which contrasts with investor owned firms as essentially two player games between separate and competing producers and consumers where each player seeks to maximize their separate payoff individually. A cardinally valued game theoretic matrix is used to demonstrate the expected differences between these one-player versus two-player games, which clearly demonstrates that cooperatives are expected to achieve greater total payoffs and social welfare relative to investor owned firms, because investor owned firms generate dead weight loss when maximizing producer surpluses as expected under prevailing microeconomic theory. The use of cardinal payoff values rather than ordinal is important because it permits aggregation of payoffs within the model, and because it directly reflects the cardinal payoffs actually used in agribusiness decisions, such as revenue, expense and profit measures. The results may indicate the reason that cooperative firms are selected and have been successful in agribusiness. However, weaknesses of the cooperative model are also discussed, conjecturing that cooperatives may be preferable to investor owned businesses under limited circumstances but because these circumstances occur frequently in agribusiness the cooperative model is observed more frequently there. |
| Keywords: | Cooperatives, Game Theory, Collective Action, Agricultural Economics, Theory of the Firm, Agribusiness, B5, C7, D7, L2, L3, Q1, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100691&r=hme |
| By: | Cooper, Bethany; Crase, Lin |
| Abstract: | Notwithstanding the neoclassical predilection for markets as a means of allocating scarce resources, it remains the case that state-devised attenuation of behaviour is the norm for many resource allocation decisions. This is particularly apparent in the case of water in urban areas in Australia, where mandated water restrictions limit the forms of water use that are permissible. Whilst there has been much debate about the efficacy of this approach, an important underlying question relates to the motivations for individuals to comply. More specifically, if a restriction regime is broadly in line with underlying motivations then, prima facie, it will generate less severe welfare losses than one which is largely at odds with individual drivers of behaviour. |
| Keywords: | Mandatory Urban Water Restrictions, Compliance Behaviour, Ordered Logit, Environmental Economics and Policy, Institutional and Behavioral Economics, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aare11:100539&r=hme |
| By: | Saroj Bhattarai; Raphael Schoenle |
| Abstract: | In this paper, we establish three new facts about price-setting by multiproduct firms and contribute a model that can explain our findings. Our findings have important implications for real effects of nominal shocks and provide guidance for how to model pricing decisions of firms. On the empirical side, using micro-data on U.S. producer prices, we first show that firms selling more goods adjust their prices more frequently but on average by smaller amounts. Moreover, the higher the number of goods, the lower is the fraction of positive price changes and the more dispersed the distribution of price changes. Second, we document substantial synchronization of price changes within firms across products and show that synchronization plays a dominant role in explaining pricing dynamics. Third, we find that within-firm synchronization of price changes increases as the number of goods increases. On the theoretical side, we present a state-dependent pricing model where multiproduct firms face both aggregate and idiosyncratic shocks. When we allow for firm-specific menu costs and trend inflation, the model matches the empirical findings. |
| Keywords: | Price levels ; Productivity |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddgw:73&r=hme |
| By: | Gaëlle Ferrant (Centre d'Economie de la Sorbonne) |
| Abstract: | This paper assumes that gender inequality hinders economic and human development : a one standard deviation change in the Gender Inequality Index (GII) will increase long term income per capita by 9,1% and Human Development Index (HDI) by 4%. Gender inequality may be a explanation of economic development differences : 16% of the long term income difference between South Asia and East Asia & Pacific can be accounted for by the difference in gender inequality. Moreover, this paper provides evidence of a vicious circle between gender inequality and long term income. The multi-dimensional concept of gender inequality is measured by a composite index with endogenous weightings : the Gender Inequality Index (GII). To correct endogeneity and simultaneity problems, the two-stage and three-stage least square methods are used separately. In this way, the steady state per capita income and the human development levels are estimated for 109 developing countries. |
| Keywords: | Growth, Gender Inequality, development economics. |
| JEL: | J16 O11 C43 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:11012&r=hme |
| By: | Gonzalo Hernández (University of Massachusetts Amherst) |
| Abstract: | This paper explores the importance of the terms of trade to explain output fluctuations in Colombia, a developing country where almost 60% of the exports correspond to four commodities: oil (32%), coal (17%), coffee (5%) and nickel (2%), and where 80% of its imports are intermediate and capital goods. This research is motivated fundamentally by the particular importance of short run fluctuations in developing economies, the fact that the Colombian terms of trade are procyclical and the current debate in Colombia about eventual economic policies toward sterilization of the effects of changes in commodities prices in a context of an appreciation of the nominal exchange rate. The study includes a time series analysis, for the period 1994-2009 with quarterly data, which follows the Box-Jenkins methodology for an ARMAX model. I find robust evidence that indicates that the quarterly growth of GDP is positively and significantly affected by variations in the terms of trade, which explain 1/3 of GDP growth variability. This result is consistent with the possible outcome of the three-goods model for an open small economy in which the terms of trade can be the source of the aggregate output fluctuations. JEL Categories: |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:ums:papers:2011-04&r=hme |
| By: | Amit Basole and Deepankar Basu (University of Massachusetts Amherst) |
| Abstract: | This paper uses aggregate-level data, as well as case-studies, to trace out the evolution of some key structural features of the Indian economy, relating both to the agricultural and the informal industrial sector. These aggregate trends are used to infer: (a) the dominant relations of production under which the vast majority of the Indian working people labour, and (b) the predominant ways in which the surplus labour of the direct producers is appropriated by the dominant classes. This summary account is meant to inform and link up with on-going attempts at radically restructuring Indian society. JEL Categories: B24, B51 |
| Keywords: | relations of production, forms of surplus extraction, mode of production, India |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:ums:papers:2011-01&r=hme |
| By: | Schenkelberg, Heike |
| Abstract: | This paper oers new insights on the price setting behaviour of German retail rms using a novel dataset that consists of a large panel of monthly business surveys from 1991-2006. The rm-level data allows matching changes in rms' prices to several other rm-characteristics. Moreover, information on price expectations allow analyzing the determinants of price updating. Using univariate and bivariate ordered probit specications, empirical menu cost models are estimated relating the probability of price adjustment and price updating, respectively, to both time- and state- dependent variables. First, results suggest an important role for state-dependence; changes in the macroeconomic and institutional environment as well as rm-specic factors are signicantly related to the timing of price adjustment. These ndings imply that price setting models should endogenize the timing of price adjustment in order to generate realistic predictions concerning the transmission of monetary policy. Second, an analysis of price expectations yields similar results providing evidence in favour of state-dependent sticky plan models. Third, intermediate input cost changes are among the most important determinants of price adjustment suggesting that pricing models should explicitly incorporate price setting at dierent production stages. However, the results show that adjustment to input cost changes takes time indicating "additional stickiness" at the last stage of processing. |
| Keywords: | Price setting behaviour; time dependent pricing; state dependent pricing; sticky prices |
| JEL: | E31 E32 E50 |
| Date: | 2011–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:12158&r=hme |
| By: | B. P., Asalatha; Pillai N., Vijayamohanan |
| Abstract: | Though the principle of gender equality is firmly established in the Indian Constitution, translating de jure gender equality and the promise of social, economic and political justice, into de facto reality has been one of India’s major challenges over the years, given a long background of an Asiatic society chained by patriarchal domination. There is still unfortunately a wide gap between the goals enunciated in the Constitution, legislation and policies and the current status of Indian women. Though for the first time, a separate section on `Gender Equity’ was included in the Draft Approach Paper to the 11th Five Year Plan, the Paper has not given enough focus on women’s empowerment issues in the country. The present paper critically examines the Indian experience over time of women in development. |
| Keywords: | Women development; Indian Constitution; Five Year Plans; empowerment |
| JEL: | D6 I3 J16 |
| Date: | 2010–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:29043&r=hme |
| By: | Abdul Majid, Muhamed Zulkhibri |
| Abstract: | This paper examines the interest rate pass-through from money market rates to various retail lending and deposit rates for financial institutions in Malaysia. The evidence shows that vast majority of retail lending rates pass-through is less than complete, while the speed of adjustment varies across administered interest rates. Adjustment in lending rates tended to be more sluggish than that of deposit rates. The finance companies, moreover, are quicker in adjusting their deposit rates than the commercial banks, but are slower in adjusting their loan rates. The empirical analysis also shows that interest rate adjustment is asymmetric and faster in the period of monetary easing rather than in the period of monetary tightening. The evidence suggests the importance of financial institutions in the transmission of monetary policy reflecting the adjustment processes are not uniform across different types of institutions and instruments. |
| Keywords: | Interest rate pass-through; Price rigidity; Monetary Policy; Malaysia |
| JEL: | E43 E52 E44 |
| Date: | 2010–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:29040&r=hme |
| By: | Hanappi, Hardy |
| Abstract: | This paper starts with the methodological assumption that the description of the evolution of political economy needs two distinct components: a model of pulsating growth and a model of morphogenesis. These two elements are alternating in the course of time, deteriorating growth leading to morphogenesis, which in turn consolidates structures on a qualitatively new level from which another kind of growth then can emerge. In a second part Europe’s current economic and political state of affairs is discussed, using the previously developed methodology. In particular the major contradictions preventing a return to business as usual are highlighted and set in relation to global developments. Part 3 then depicts a manageable set of six broad topics as a first step towards a future program for a radically different political economy of Europe. |
| Keywords: | Global economic policy; European model |
| JEL: | P0 A10 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:29062&r=hme |
| By: | Mazzeu, Joao; Otuki, Thiago; Da Silva, Sergio |
| Abstract: | We carry out a statistical physics analysis of the flash crash of May 6, 2010 using data from the Dow Jones Industrial Average index sampled at a one-minute frequency from September 1, 2009 to May 31, 2010. We evaluate the hypothesis of a non-Gaussian Levy-stable distribution to model the data and pay particular attention to the distribution-tail behavior. We conclude that there is non-Gaussian scaling and thus that the flash crash cannot be considered an anomaly. From the study of tails, we find that the flash crash followed a power-law pattern outside the Levy regime, which was not the inverse cubic law. Finally, we show that the time-dependent variance of the DJIA-index returns, not tracked by the Levy, can be modeled in a straightforward manner by a GARCH (1, 1) process. |
| Keywords: | flash crash; econophysics; stable distribution; extreme events |
| JEL: | C46 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:29138&r=hme |