nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2011‒05‒07
thirteen papers chosen by
Frederic S. Lee
University of Missouri-Kansas City

  1. Innovation Activities and Competitiveness: Empirical Evidence on the Behaviour of Firms in the New EU Member States and Candidate Countries By Iraj Hashi; Nebojsa Stojcic; Shqiponja Telhaj
  2. LABOR MOBILITY AND SPATIAL DENSITY By Andersson, Martin; Thulin, Per
  3. El control social y su relación con los procesos de formación de capital social y movilidad social: algunos indicios a partir de experiencias en Bogot By Julián F. Bautista R.; Londra T. Niño M.; Gemma V. Truke O.; Jairo Santander A.
  4. Déséquilibres, système bancaire et chômage involontaire By Stéphane Mussard; Bernard Philippe
  5. Budget for Gender Equity By Government of India Ministry of Women and Child Development
  6. Gender Responsive Budgeting: The Case of Kerala By Aleyamma Vijayan; Mariamma Sanu George
  7. WIC Participation Patterns: An Investigation of Delayed Entry and Early Exit By Jacknowitz, Alison; Tiehen, Laura
  8. Estimating the Impact of Food and Drug Administration Regulation of Cigarette Package Warning Labels and the Potential Added Impact of Plain Packaging: Evidence From Experimental Auctions Among Adult Smokers By Thrasher, Jim; Rousu, Matthew; Hammond, David; Navarro, Ashley; Corrigan, Jay
  9. Transcending the Limitations of Environmental Economic Framing: Toward a Metaeconomics of Environmental Choice By Czap, Natalia V.; Czap, Hans J.; Khachaturyan, Marianna; Lynne, Gary D.; Burbach, Mark E.
  10. Smiley or Frowney: The effect of emotions and framing in a downstream water pollution game By Czap, Hans; Czap, Natalia; Khachaturyan, Marianna; Burbach, Mark; Lynne, Gary
  11. Trends in the Employment of Married Mothers of Preschool-Aged Children in Taiwan By Yu-Han Jao; Jui-Chung Allen Li
  12. Growth Elasticity of poverty in the globe By Das, Kumar B
  13. The Rate and Direction of Invention in the British Industrial Revolution: Incentives and Institutions By Ralf Meisenzahl; Joel Mokyr

  1. By: Iraj Hashi; Nebojsa Stojcic; Shqiponja Telhaj
    Abstract: This paper aims to explore the factors influencing the ability of firms to compete in globalised markets. The Austrian and evolutionary economics and the endogeneous growth literature highlight the role of innovation activities in enabling firms to compete more effectively - and expand their market share. On the basis of these theories, and using a large panel of firms from several Central and East European Countries (CEECs), this paper attempts to identify the factors and forces which determine the ability of firms to compete in conditions of transition. The competitiveness of firms, measured by their market share, is postulated to depend on indicators of firms' innovation behaviour such as improvements in cost-efficiency, labour productivity and investment in new machinery and equipment as well as characteristics of firms and their environment such as location, experience, technological intensity of their industries and the intensity of competition. To control for the dynamic nature of competitiveness and the potential endogeneity of its determinants, and to distinguish between short and long run effects of firm behaviour, a dynamic panel methodology is employed. The results indicate that the competitiveness of firms in transition economies is enhanced with improvements in their cost efficiency, productivity of labour, investment and their previous business experience while stronger competition has a negative impact on it.
    Keywords: competitiveness, restructuring, transition economies, market share, dynamic panel analysis
    JEL: O31
    Date: 2011–04
  2. By: Andersson, Martin (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Thulin, Per (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper focuses on a much cited but seldom measured micro-foundation for agglomerations: inter-firm labor mobility. Labor mobility has been advanced as a vehicle for knowledge flows and labor market efficiency, and is often maintained to be an important source of agglomeration economies. Based on matched employer-employee data, we estimate the influence that spatial employment density has on the probability of inter-firm job-switching, while controlling for ample attributes of each worker and employer. The rate of inter-firm labor mobility varies substantially across regions and we document a systematic and robust positive influence of density on the probability of job switching. The likelihood that such switching is intra-regional is significantly higher if the employees operate in denser regions, verifying that labor mobility (and thus the effects mediated by it) is indeed localized. Higher rates of inter-firm labor mobility appear as a likely mechanism behind the empirically verified productivity advantage of dense regions.
    Keywords: job-switching; inter-firm labor mobility; agglomeration economies; external economies; micro-foundations; density
    JEL: J61 J62 R11 R12
    Date: 2011–04–26
  3. By: Julián F. Bautista R.; Londra T. Niño M.; Gemma V. Truke O.; Jairo Santander A.
    Abstract: Este documento presenta un acercamiento analítico a los posibles efectos provocados por la práctica y el proceso institucional de control social sobre quienes tienen una relación directa o indirecta con estos mecanismos, que se despliegan desde la Contraloría General de la República para cumplir con lo dispuesto en la Constitución Nacional. Estos efectos se establecen a partir de mediciones de percepciones subjetivas y condiciones objetivas de vida, relacionadas con los conceptos de movilidad social y capital social. Se pretende establecer impactos que trasciendan la medición de la cantidad de veces que se utilizan los mecanismos de participación en control social o de las incidencias que conlleva su uso; además, se presenta un estado de la situación para evaluar los efectos colaterales que provoca el ejercicio de la ciudadanía que controla el quehacer de lo público, en procura de apropiar y ajustar estos mecanismos para el fortalecimiento del tejido social en el contexto colombiano.
    Date: 2011–02–17
  4. By: Stéphane Mussard; Bernard Philippe
    Abstract: Afin de lutter contre le chômage « ...qui, en dehors de courts intervalles d’emballement, est une conséquence, et à notre avis une conséquence inévitable, de l’individualisme tel qu’il apparaît dans le régime capitaliste moderne. » (Keynes J.M., 1968, p. 394-395), Keynes propose de réguler le fonctionnement de la composante marché des capitaux des systèmes financiers. Nous montrons que cette conclusion peut être étendue à la composante bancaire de ces systèmes. Notre argumentation repose sur un constat. Il n’est guère raisonnable de supposer que ‘l’équilibre mouvant’ étudié dans la Théorie générale puisse être conçu et atteint dans les économies capitalistes. Ce constat incite à envisager une analyse hors équilibre des déterminants du chômage involontaire. C’est la tentative que nous proposons qui nous conduit à étendre au fonctionnement des banques la proposition formulée par Keynes à propos des marchés des capitaux.
    Date: 2010–10
  5. By: Government of India Ministry of Women and Child Development
    Abstract: The budgetary policy of the Government has a major role to play in achieving objectives of gender equality and growth through content and direction of Fiscal and Monetary Policies, measures for resource mobilization and affirmative action for under-privileged sections. URL: [].
    Keywords: equality, under-privileged, budget, gender equity, government, monetary policies, resource mobilization, growth, fiscal,
    Date: 2011
  6. By: Aleyamma Vijayan; Mariamma Sanu George
    Abstract: This paper we make an attempt to understand and analyze the budget from a gender perspective. The paper looks into the different areas of allocations, how far it is ‘pro woman’ budget or a ‘gender responsive’ budget and whether the budget reflects the commitments made in the women’s policy announced by the government in 2009. URL:[].
    Keywords: budget, gender, kerala, finance, government, perspective, women's policy, allocations, pro woman, India, schemes,
    Date: 2011
  7. By: Jacknowitz, Alison; Tiehen, Laura
    Abstract: USDAâs Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) provides nutritious foods, nutrition counseling, and referrals to health and other social services to low-income women and their infants/children up to age 5. Despite the health benefi ts of WIC participation, many eligible women do not participate during pregnancy, and many households exit WIC when a participating child turns 1 year old. The authors of this report use the fi rst two waves of the Early Childhood Longitudinal Study-Birth Cohort (ECLS-B) to understand these transitions into and out of WIC. Findings show that households that are more economically advantaged are more likely to delay entry into the program or exit after a child turns 1 year old. Some of the mothers exiting the program reported that WIC requires too much effort and that its benefi ts are not worth the time (26.2 percent of those exiting) or that they have scheduling and transportation problems (almost 10 percent of those exiting), suggesting that the costs of participation may be a barrier to continued WIC participation.
    Keywords: Special Supplemental Nutrition Program for Women, Infants, and Children, WIC, participation dynamics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty,
    Date: 2010–12
  8. By: Thrasher, Jim; Rousu, Matthew; Hammond, David; Navarro, Ashley; Corrigan, Jay
    Abstract: Objective: To estimate differences in demand for cigarette packages with different packaging and health warning label formats. Methods: Adult smokers (n=404) in four states participated in experimental auctions. Participants bid on two of four experimental conditions, each involving a different health warning label format but with the same warning message: 1. text on 50% of pack side; 2. text on 50% of the pack front and back; 3. text with a graphic picture on 50% of the pack front and back; and 4. same as previous format, but without brand imagery. Results: Mean bids decreased across conditions (1. $3.52; 2. $3.43; 3. $3.11; 4. $2.93). Bivariate and multivariate random effects models indicated that there was no statistically significant difference in demand for packs with either of the two text only warnings; however, demand was significantly lower for both packs with prominent pictorial warnings, with the lowest demand associated with the plain, unbranded pack. Conclusions: Results suggest that prominent health warnings with graphic pictures will reduce demand for cigarettes. Regulators should not only consider this type of warning label, but also plain packaging policies for tobacco products.
    Keywords: experimental auctions, cigarette labels, grotesque images, Food Consumption/Nutrition/Food Safety, Health Economics and Policy, C93,
    Date: 2011
  9. By: Czap, Natalia V.; Czap, Hans J.; Khachaturyan, Marianna; Lynne, Gary D.; Burbach, Mark E.
    Abstract: This paper further tests dual interest theory and the metaeconomics approach to environmental choice, recognizing a possible role for empathy-sympathy (the basis for an internalized, shared other-interest) in tempering and conditioning the more fundamental tendency to pursue self-interest. To test, we focus on rivers flowing through agricultural areas carrying sediments, chemicals, and fertilizers which are making their way into downstream rivers and lakes. We use data from a framed experiment. Farmers decide on the usage of conservation technology to lessen impacts on the water quality in downstream areas, which is more costly. The results confirm our hypotheses, demonstrating that upstream farmers who practice conservation are tempering profit maximization with empathy-based, environmentally conscious behavior that better serves the farmersâ own-interest, and thus also serves downstream users. Environmental economics models need to explicitly include empathy-sympathy and the moral-ethical context it produces, providing a more scientific basis for conservation policy and programs.
    Keywords: dual-interest model, metaeconomics, empathy, sympathy, selfism, environmental experiment, behavioral economics, water quality, conservation tillage, conservation policy, Environmental Economics and Policy, Institutional and Behavioral Economics, C9, D03, Q25, Q53, Q57.,
    Date: 2011
  10. By: Czap, Hans; Czap, Natalia; Khachaturyan, Marianna; Burbach, Mark; Lynne, Gary
    Abstract: Common-pool resources and other shared resources frequently suffer from overextraction/overuse and associated negative externalities. In this paper we design a framed laboratory experiment on downstream water pollution to investigate (a) the importance of framing in determining the behavior of upstreamers regarding the negative externalities, and (b) the potential of downstreamers to influence the choices of upstreamers using non-monetary sanctions and rewards, alleviating the need for intervention by the local governments and regulatory institutions. Our results show that framing has a significant impact on the behavior of subjects. Subjects behaved more profit-oriented in the self-interest framing and more egalitarian in the empathy framing. In addition, we show that nudging subjects to âwalk in the shoes of othersâ significantly increased empathetic behavior. Lastly, negative emotional feedback is a powerful tool for changing behavior of subjects towards more environmentally friendly and empathetic behavior. Interestingly, positive emotional feedback is counterproductive in that it instead decreases environmentally friendly and empathetic behavior. In general our results indicate that explicit emotional feedback, even though not expressed by everyone, works similarly to the implicit appeal to emotions through framing.
    Keywords: empathy framing, self-interest framing, emotions, water pollution, environmental experiment, reward and punishment., Environmental Economics and Policy, Institutional and Behavioral Economics, Land Economics/Use, C9, D03, Q25, Q53, Q57,
    Date: 2011
  11. By: Yu-Han Jao; Jui-Chung Allen Li
    Abstract: Using data from eleven waves of WomenÕs Marriage, Fertility, and Employment Survey, the authors examine trends in labor force participation among married mothers of preschool-aged children in Taiwan. The estimates indicate an upward period trend and an unexpected downward cohort trend. The results show that (1) changes in the population composition of womenÕs education and (2) changes in behavior for women of different levels of education, both associated with educational expansion, as well as (3) changes in economic opportunities in the labor market help explain the trends. However, changes in gendered family norms, as indicated by husbandÕs education, and changes in family composition factors, are largely independent of the trends. They also find that the unexpected cohort trend may be due to sample selectionÑwomen in recent birth cohorts who chose to marry and have children tend to be less committed to employment than their counterparts in earlier birth cohorts on whom the cultural constraints imposed greater pressure for them to stay home. They conclude that two major social changesÑeducational expansion, and industrial and economic developmentsÑare associated with the increase in employment among married mothers of preschool-aged children in Taiwan from 1983 to 2006.
    Date: 2011–04
  12. By: Das, Kumar B
    Abstract: This paper highlights the global economic prosperity and portrays the anatomy of poverty in developing countries. It analyses the incidence of rural and urban poverty persisting in fourteen countries including India. It address the contradiction of coexistence of poverty and hyper economic growth in the globe. It is found that the growth elasticity of poverty is very low in developing countries. It argues that economic growth process can be inclusive and sustainable only by curbing the process of marginalization, corruption and exploitation
    Keywords: growth Elasticity; Poverty ;Asia; Europe
    JEL: A10
    Date: 2010–09
  13. By: Ralf Meisenzahl; Joel Mokyr
    Abstract: During the Industrial Revolution technological progress and innovation became the main drivers of economic growth. But why was Britain the technological leader? We argue that one hitherto little recognized British advantage was the supply of highly skilled, mechanically able craftsmen who were able to adapt, implement, improve, and tweak new technologies and who provided the micro inventions necessary to make macro inventions highly productive and remunerative. Using a sample of 759 of these mechanics and engineers, we study the incentives and institutions that facilitated the high rate of inventive activity during the Industrial Revolution. First, apprenticeship was the dominant form of skill formation. Formal education played only a minor role. Second, many skilled workmen relied on secrecy and first-mover advantages to reap the benefits of their innovations. Over 40 percent of the sample here never took out a patent. Third, skilled workmen in Britain often published their work and engaged in debates over contemporary technological and social questions. In short, they were affected by the Enlightenment culture. Finally, patterns differ for the textile sector; therefore, any inferences from textiles about the whole economy are likely to be misleading.
    JEL: N13 N73 O31 O34 O43
    Date: 2011–04

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