nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2011‒04‒16
twelve papers chosen by
Frederic S. Lee
University of Missouri-Kansas City

  1. Boosting the employment rate of older men and women By Vincent VANDENBERGHE
  2. Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment By Stampini, Marco; Verdier-Chouchane, Audrey
  3. Community Enterprises - An Institutional Innovation By Bruno S. Frey; Roger Lüthi; Margit Osterloh
  4. Marx in 1869: Notebook B113, The Economist and The Money Market Review By João Antonio de Paula; Hugo E. A. da Gama Cerqueira; Alexandre Mendes Cunha; Carlos Eduardo Suprinyak; Leonardo Gomes de Deus; Eduardo da Motta e Albuquerque; Guilherme Habib Santos Curi; Marco Túlio Vieira
  5. Financeirização como desenvolvimento do capital fictício : a crise financeira internacional e suas conseqüências no Brasil By Maria de Lourdes Rollemberg Mollo
  6. Acumulação de Capital, Metas de Inflação e Política Fiscal num Modelo Kaldoriano By Artur Henrique da Silva Santos; José Luis Oreiro
  7. Local Food Procurement and Promotion Strategies of Food Cooperatives By Katchova, Ani L.; Woods, Timothy A.
  8. Producers Cooperative Oil Mill: A Case Study in Strategic Planning for a Cooperative By Kenkel, Philip L.; Holcomb, Rodney B.
  9. "Buying Local" Means "Selling Local" - Using a Transportation Alliance of environmental and Food Horticulture Producers in Georgia By Stegelin, Forrest; Houston, Jack E.; Compte, Javier Mantilla; Thomas, Paul; Chappell, Matthew
  10. Entry decisions after deregulation: the role of incumbents' market power By Lorenzo Ciari; Riccardo De Bonis
  11. Price and wage setting in Portugal: learning by asking By Fernando Martins
  12. What about the Women? Female Headship, Poverty and Vulnerability in Thailand and Vietnam By Stephan Klasen; Tobias Lechtenfeld; Felix Povel

  1. By: Vincent VANDENBERGHE (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: European countries need to expand employment among older individuals. Many papers have examined this issue from different angles. However, very few seem to have considered its gender dimension properly, despite evidence that lifting the overall senior employment rate requires significantly raising that of women older than 50. The key issue examined by this paper is whether employers are willing to employ more older workers, in particular older women. The answer depends to a large extent on the ratio of older individuals’ productivity to their cost to employers. To address this question we tap into a unique firm-level panel of Belgian data to produce robust evidence on the causal effect of age/gender on productivity and labour costs. We take advantage of the panel structure to identify age/gender-related differences from within-firm variation. Moreover, inspired by recent developments in the production function estimation literature, we address the problem of endogeneity of the age/gender mix, using a structural production function estimator (Olley & Pakes, 1996; Levinsohn & Petrin, 2003) alongside IV-GMM methods where lagged value of labour inputs are used as instruments. Our results indicate a small negative impact of larger shares of older men on the productivity-labour cost ratio. An increment of 10%-points of in their share causes a 0.17 to 0.69%-point contraction. However, the main result is that the equivalent handicap with older women is larger, ranging from 1.3 to 2.0%-points. This is not good news for older women’s employability. And the vast services industry does not seem to offer working conditions that mitigate older women’s disadvantage, on the contrary.
    Keywords: Ageing, Labour Productivity, Panel Data Analysis
    JEL: J24 C33 D24
    Date: 2011–03–25
  2. By: Stampini, Marco (African Development Bank); Verdier-Chouchane, Audrey (African Development Bank)
    Abstract: This paper analyzes the dynamics of the youth labor market in Tunisia using unique labor force survey data from 2005 to 2007 that include a longitudinal component. It first shows that sustained economic growth will reduce youth unemployment over the next few years. Second, forecasts indicate that the growth of private sector services has the highest potential to reduce youth unemployment. Third, the analysis of labor market characteristics reveals that young graduates experience long unemployment as they cue for high-skill jobs. Moreover, the public sector remains the main provider of employment opportunities for many graduates, in particular for women.
    Keywords: labor market, unemployment, youth, Tunisia
    JEL: J21 J64 J68 J71
    Date: 2011–03
  3. By: Bruno S. Frey; Roger Lüthi; Margit Osterloh
    Abstract: Management research has long focused on the theory of the firm, studying for-profit organizations that produce privately owned resources based on central authority and within well-defined boundaries. In recent times, a new kind of enterprise has emerged that we call Community Enterprises. They are barrier free and extend beyond the reach of strong, personal relationships and are characterized by the production of appropriation-free resources and the absence of boundaries. Wikipedia is the most successful example of such a Community Enterprise. Assumptions and principles underneath related fields such as organizational theory, innovation economics, and industrial organization should therefore be critically examined.
    Date: 2011–04
  4. By: João Antonio de Paula (Cedeplar-UFMG); Hugo E. A. da Gama Cerqueira (Cedeplar-UFMG); Alexandre Mendes Cunha (Cedeplar-UFMG); Carlos Eduardo Suprinyak (Cedeplar-UFMG); Leonardo Gomes de Deus (Cedeplar-UFMG); Eduardo da Motta e Albuquerque (Cedeplar-UFMG); Guilherme Habib Santos Curi (Cedeplar-UFMG); Marco Túlio Vieira (Cedeplar-UFMG)
    Abstract: This paper presents Notebook B113, one of Marx’s unpublished manuscripts, and suggests its importance for highlighting the monetary and financial issues which Marx was investigating after 1867. A combination of deciphering an index prepared by Marx and reading the 1868 editions of The Economist and The Money Market Review may help to improve the understanding of Part Five, Volume III of Capital. A preliminary investigation of Marx’s references to the crisis of 1866 in Notebook B113, and the lack of references to this same crisis in Volume III of Capital supports the conjecture of this paper.
    Keywords: Karl Marx; Friedrich Engels; MEGA
    JEL: B14 B31
    Date: 2011–04
  5. By: Maria de Lourdes Rollemberg Mollo (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)
    Abstract: The article analyses the notion of fictitious capital in Marx, and the idea of autonomy of circulation in relation to production. It explores, after this theoretical analysis, the evolution of financialization of the economies as development of fictitious capital and its relation with the current crisis. Finally, it analyses the impacts of crisis and its recovery in the case of Brazil.
    Keywords: Financialization, Fictitious Capital, Crises, Brazil.
    Date: 2011–04
  6. By: Artur Henrique da Silva Santos (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); 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)
    Abstract: o objetivo do presente artigo é analisar a relação entre a política fiscal e a política monetária numa economia que opera sob o regime de metas de inflação e com plena-utilização da capacidade produtiva. Para tanto, iremos apresentar um modelo macrodinâmicoKaldoriano no qual o ajuste entre investimento e poupança é feito por intermédio de variações da participação dos lucros na renda nacional. A inflação resulta do conflito entre capitalistas e trabalhadores pela repartição da renda, de tal forma que um aumento da participação dos lucros induzido pelo acréscimo da taxa de investimento irá levar os trabalhadores a reivindicar aumentos de salário, os quais serão devidamente repassados para os preços, resultando assim numa “espiral preços-salários” e numa taxa de inflação de equilíbrio de curto-prazo, a qual poderá ser maior do que a meta de inflação definida pela autoridade monetária. No longo-prazo, o aumento da taxa de inflação e da participação dos lucros na renda nacional irá induzir ajustes tanto na taxa de juros como no grau desejado de utilização da capacidade produtiva. Uma política fiscal contracionista irá resultar numa redução do valor de equilíbrio de longo-prazo da taxa de juros, com efeito nulo ou levemente negativo sobre o grau de utilização da capacidade produtiva. Já uma política de flexibilização do regime de metas de inflação será compatível tanto com a redução do valor de equilíbrio da taxa de juros como com um aumento (não-desprezível) do grau de utilização da capacidade.
    Keywords: Investimento, Taxa de Juros, Inflação, Política Fiscal.
    Date: 2011–04
  7. By: Katchova, Ani L.; Woods, Timothy A.
    Abstract: This study examines the role that food consumer cooperatives play in the local food networks. Data are collected from three case studies with leading food cooperatives and a national survey of the general managers of food cooperatives. We identify the emerging business practices in local sourcing as a differentiation and member recruitment strategy for food cooperatives. Our analysis identifies several clusters of strategies used for local food procurement, based on the extent to which the co-op is involved in procurement activities upstream (at the farm), mid-stream (at the distribution center) or downstream (at the food cooperative). The results also show that when compared to other grocers, food co-ops have clear advantages in working with local producers and oftentimes play a key role in the producersâ business viability.
    Keywords: food consumer cooperatives, local foods, Agribusiness, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, Marketing, Q13,
    Date: 2011
  8. By: Kenkel, Philip L.; Holcomb, Rodney B.
    Abstract: This study examines the strategic issues and decisions of Producers Cooperative Oil Mill, a regional oilseed processing cooperative located in Oklahoma City, Oklahoma. The process of strategic planning and strategy implementation in agribusiness has been the topic of numerous research studies and case studies. While cooperative firms have been the subject of case studies focusing on strategic issues, the unique aspects of strategic decisions in a cooperative firm have not been highlighted. The formulation and implementation of strategy in cooperative organizations is impacted by their business structure. This case study provides unique examples of how strategy formulation and implementation is impacted by the unique structure and values of a cooperative firm. The article is formatted such that it can be used in educational programs as three inter-related mini-case studies. Questions for students are included.
    Keywords: cooperative, strategic planning, oilseed processing, Agribusiness, Teaching/Communication/Extension/Profession,
    Date: 2011–01–14
  9. By: Stegelin, Forrest; Houston, Jack E.; Compte, Javier Mantilla; Thomas, Paul; Chappell, Matthew
    Abstract: The costs of transporting agricultural products to market and of the acquisition of production inputs are of concern to environmental and food horticulture crops producers. This study is to determine if transportation alliances would reduce shipping costs, increase distribution efficiencies and reduce carbon dioxide emissions among floriculture, ornamental plants, and fruit and vegetable producers in Georgia. Using data from surveys and the ArcLogistics 9.3 GIS software, routing systems were developed to show cost savings opportunities. The results indicated nearly ten percent reductions in average total cost savings to producers, average total miles driven savings, average number of trucks savings, average hours driving savings, and average carbon dioxide (carbon footprint) savings.
    Keywords: transportation alliance, buying local, economic savings, food and environmental horticulture, Agribusiness, Marketing, Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession,
    Date: 2011
  10. By: Lorenzo Ciari (European University Institute - Firenze (I)); Riccardo De Bonis (Banca d'Italia, Economics and International Relations Area)
    Abstract: This paper investigates the role of incumbents' market power in shaping the entry decisions of Italian banks after branching liberalization in 1990. Using a unique dataset on 260 banks, we find that entry over the 1990-1995 period was targeted towards markets that were more competitive to begin with, i.e. where banking spreads were smaller. The results confirm the entry deterrent role of market power in the short-run and show a long run effect of regulation that survives after the removal of administrative barriers. The capacity of market power to discourage entry is confirmed in instrumental variables specifications, where we use the characteristics of the local banking markets in 1936, a proxy for tightness of banking regulation, to identify an exogenous source of variation in the spreads.
    Keywords: banking, barriers to entry, deregulation, market power
    JEL: G28 L1 L5
    Date: 2011–04
  11. By: Fernando Martins (Banco de Portugal (Research Department), ISEG (Technical University of Lisbon) and Universidade Lusíada de Lisboa.)
    Abstract: This paper presents the main findings of a survey conducted on a sample of Portuguese firms. The main aim was to identify some relevant characteristics about the dynamics of prices and wages in Portugal. The most important conclusions are: i) changes to wages are more synchronized than changes to prices; ii) most wages are defined using inflation as a yardstick, even though there are no formal rules; iii) the wages of most workers are defined in terms of sector-related collective agreements; iv) a considerable proportion of workers receive wages above those been agreed under the collective agreement; v) firms make frequent use of other mechanisms to cut payroll costs as a way of overcoming the restrictions imposed by downward nominal wage rigidity. JEL Classification: D21, E30, J31.
    Keywords: survey data, wage rigidity, price rigidity, indexation, institutions.
    Date: 2011–04
  12. By: Stephan Klasen (Georg-August-University Göttingen); Tobias Lechtenfeld (Georg-August-University Göttingen); Felix Povel (Georg-August-University Göttingen)
    Abstract: This paper investigates whether heterogeneous subgroups of female-headed households are worse off than traditional households headed by men. We analyze the determinants of consumption, shock exposure and vulnerability to poverty. Using unique panel data of over 4000 rural households from Thailand and Vietnam, we find strong signs of heterogeneity among the subgroups of female-headed households. In particular, in both countries de facto female-headed households are consumption richer and less vulnerable to poverty than households with a male head. In Vietnam de jure female-headed households are consumption poorer and more vulnerable to poverty. In Thailand de jure female-headed households do not differ significantly from male-headed households in terms of the analyzed welfare dimensions. These results show how widows and singles in Vietnam are not well protected against uncertainties. The results also indicate that differentiation by subgroups of headship is important for policy targeting and future research. We interpret this as a first step towards a more complete picture of vulnerability of female-headed households in the developing world.
    Keywords: Gender; Poverty; Shocks; Vulnerability to Poverty
    JEL: I32 I O12
    Date: 2011–04–11

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