nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2013‒09‒24
seven papers chosen by
Frederic S. Lee
University of Missouri-Kansas City

  1. Towards an Intuitionistic Constructive Mathematical Economics By K. Vela Velupillai
  2. Incomputability, Undecidability & Unsolvability in Economic Theory By K. Vela Velupillai
  3. Demand, Production, and the Determinants of Distribution: A Caveat on “Wage-Led Growth” By Paulo dos Santos
  4. FACTORYLESS GOODS PRODUCERS IN THE US By Andrew B. Bernard; Teresa C. Fort
  5. The Role of Language in Corporate Governance: The Case of Board Internationalization By Piekkari, Rebecca; Oxelheim, Lars; Randøy, Trond
  6. The Nature of Innovation Channels at the Micro-Level: Evidence from Russian Manufacturing Firms By Simachev, Yuri; Kuzyk, Mikhail; Feygina, Vera
  7. Structural Change in Distribution Markets in Peripheral Europe: Spanish Food Retailing, 1950-2007 By Maixe-Altes, J. Carles; Castro Balaguer, Rafael

  1. By: K. Vela Velupillai
    Date: 2013
  2. By: K. Vela Velupillai
    Date: 2013
  3. By: Paulo dos Santos
    Abstract: The incomes of workers and capitalists pertain to different moments of accumulation. Wages are shares of capital outlays sustaining production; profits are shares of commodity sales. If aggregate demand and the scale of productive undertakings are shaped with a measure of mutual autonomy, the class distribution of income and the measure of economic activity are jointly determined by the same processes. In those settings “wage-led growth” has neither analytical nor policy purchase as associations between wage shares and levels of output (or growth) are confounded consequences of distinct effects on each measure of broader developments in the economy. A more appropriate dichotomy is that between “investment-led” and “consumption-led” growth, with the former resulting in comparatively higher wage shares. After advancing and illustrating these points, this paper motivates its approach to class income flows and the role of demand--which draw on the Circuit of Capital--in relation to the equivalent Kaleckian approaches sustaining arguments for “wage-led growth.”
    Keywords: Income Distribution, Circuit of Capital , Marxian Analyses
    Date: 2013
  4. By: Andrew B. Bernard; Teresa C. Fort
    Abstract: This paper documents the extent and characteristics of plants and firms in the US that are outside the manufacturing sector according to official government statistics but nonetheless are heavily involved in activities related to the production of manufactured goods. Using new data on establishment activities in the Census of Wholesale Trade conducted by the US Bureau of the Census in 2002 and 2007, this paper provides evidence on so-called “factoryless goods producers” (FGPs) in the US economy. FGPs are formally in the wholesale sector but, unlike traditional wholesale establishments, FGPs design the goods they sell and coordinate the production activities. This paper documents the extent of FGPs in the wholesale sector and how they differ from traditional wholesalers in terms of their employment, wages, productivity and output. Reclassifying FGP establishments to the manufacturing sector using our definition would have shifted at least 595,000 workers to as many as 1,311,000 workers from wholesale to manufacturing sectors in 2002 and at least 431,000 workers to as many as 1,934,000 workers in 2007.
    JEL: D22 L23 L24 L81
    Date: 2013–09
  5. By: Piekkari, Rebecca (Aalto University); Oxelheim, Lars (Research Institute of Industrial Economics (IFN)); Randøy, Trond (University of Agder)
    Abstract: Multinational corporations internationalize their corporate boardrooms in order to capitalize on their commercial and financial internationalization. Board internationalization provides access to specialized knowledge and skills, broadens social networks and ensures greater transparency of strategic decision-making. The entry of a foreign board member is often coupled with a change in the working language of the board. The purpose of the present study is to explore and explain how increased language diversity influences decision-making and work processes of corporate boards. We draw on previous research on board internationalization, diversity and language in multinational corporations. Based on a multiple case study of nine multinational corporations from four Nordic countries, we find evidence of impoverished and silenced discussions in board meetings in those case companies that were unprepared to switch to English as the new working language of the board. Some board members found it difficult to contribute to board meetings, articulate disagreement and felt socially excluded from the board. Such effects on decision-making and work processes were not found in the well-prepared companies. The study adds to the understanding of different modes to internationalize the board as a response to different forms of internationalization of the firm.
    Keywords: Language diversity; Board internationalization; Commercial internationalization; Financial internationalization; Degree of internationalization; Social exclusion; Silencing effect
    JEL: A10
    Date: 2013–09–10
  6. By: Simachev, Yuri; Kuzyk, Mikhail; Feygina, Vera
    Abstract: The main purpose of the paper is to analyze different channels for innovations. We analyze the influence of various incentives for innovation in Russian companies taking into account the organization of industries — vertical or horizontal orientation, peculiarities of corporate demography, role and motives of different owners (including government and foreign investors), demand trends, customers‘ profile, nature and intensity of competition in relevant markets. An empirical base for our study is provided by two surveys of Russian industrial companies conducted in 2011 and 2012. One of our hypotheses: in vertically organized sectors that define innovation activeness in the economy (for example, mechanical engineering), the innovative development of the head producers is constrained by the risk of technological gap with its partners in the supply chain. We find out that innovations in Russian industry spread in accordance with two main models: vertical through corporate connections, and horizontal, based on the example of foreign companies in the atmosphere of developed competition.
    Keywords: innovation, industrial organization, supply chain, innovation channels
    JEL: D22 L2 O31
    Date: 2013–07–30
  7. By: Maixe-Altes, J. Carles; Castro Balaguer, Rafael
    Abstract: The processes of structural change and modernisation in the food distribution industry have been submitted to different economic and institutional frameworks in European countries. Two essential factors have affected these changes: on one hand, the role of technical, financial and organisational innovations and on the other, institutional factors. The weight of both has varied depending on the historical circumstances of the countries in consideration and their level of development. This paper discusses with the framework of the “latecomers”. In these countries, the factor of innovation has been produced in terms of appropriation, whether this is technological or organisational, usually influenced by foreign models or through direct foreign investment. The impact of these innovations has been highly conditioned by inflexible institutional surroundings. Considering the Spanish food trade in the last sixty years is a good way of dealing with the processes of structural change in Mediterranean Europe. This paper helps one understand the role taken by countries which introduced factors of innovation and growth in less favourable surroundings than those of developed Europe.
    Keywords: Distributive trades, food trade, structural change, innovation, Spain, latecomer
    JEL: L8 L81 N7 N8 N84
    Date: 2013–08

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