nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2013‒09‒26
ten papers chosen by
Frederic S. Lee
University of Missouri-Kansas City

  1. A Journey through the Corridors of a Labyrinth -- Borge's Library, Simon's Mazes and Turing's Librarian By K. Vela Velupillai
  2. HUMBUGS and other Exotica -- Celebrating Anwar Shaikh By K. Vela Velupillai
  3. Il problema del tempo libero nell’ambito della civiltà del capitale By Nicolò Bellanca; Hervé Baron
  4. Computability Theory in Economics - Frontiers and a Restrospective By K. Vela Velupillai
  5. The Location of the UK Cotton Textiles Industry in 1838: a Quantitative Analysis By Nicholas Crafts; Nikolaus Wolf
  6. Input-Output-based Measures of Systemic Importance By Aldasoro, Iñaki; Angeloni, Ignazio
  7. Wage posting or wage bargaining? Evidence from the employers' side By Brenzel, Hanna; Gartner, Hermann; Schnabel, Claus
  8. Locally owned: Do local business ownership and size matter for local economic well-being? By Anil Rupasingha
  9. Playing Favorites: How Firms Prevent the Revelation of Bad News By Lauren Cohen; Dong Lou; Christopher Malloy
  10. The importance of HUMBUG in the Cambridge - Cambridge controversies in capital theory By Geoff C Harcourt

  1. By: K. Vela Velupillai
    Date: 2013
  2. By: K. Vela Velupillai
    Date: 2013
  3. By: Nicolò Bellanca (Università degli Studi di Firenze); Hervé Baron
    Abstract: In questo saggio intendiamo discutere la questione del tempo libero nel capitalismo alla luce della problematica della liberazione dal e del lavoro (par. 1). Nel far ciò, dopo aver criticato la concezione dell’essere umano propria della scienza economica, proporremo l’abbozzo di una concezione alternativa (par. 2). Ci chiederemo quindi cosa succederebbe liberando sic et simpliciter del tempo attraverso mere elargizioni di reddito senza rimettere in discussione la concezione dell’essere umano comunemente accettata (par. 3) per poi proporre (par. 4) due real utopias che affrontano congiuntamente il nodo dell’aumento del tempo libero e dell’apertura a forme differenti di società. Infine (par. 5) saranno tratte alcune brevi ma articolate conclusioni. (In this essay we intend to discuss the issue of leisure time in the capitalist system in the light of the issue of the liberation from and of work (par. 1). In doing that, after having criticized the conception of human being wich characterized economics we will propose the sketch of an alternative conception (par. 2). Then, we will wonder what would happen releasing sic et simpliciter some spare time through mere income transferts, without bringing into question the commonly accepted conception of human being (par. 3) to then propose (par. 4) two ‘real utopias’ that jointly deal with the tangle of an increase of leisure time and the opening to different forms of society. Finally (par. 5) some brief but articulated conclusions will be drawn.)
    Keywords: Passion; capitalism; idleness; leisure time; free time; real utopias; social empowerment
    JEL: A13 B51 P17 P27 Z13
    Date: 2013
  4. By: K. Vela Velupillai
    Abstract: This is an outline of the origins and development of the way computability theory was incorporated into formal economic theory. I try to place in the context of the development of computable economics, some of the classics of the subject as well as those that have, from time to time, been credited with having contributed to the advancement of the field. Speculative methodological thoughts and reflections suggest directions in which fruitful research could proceed to reduce the current deficit in the epistemology of computation in economics. Finally, thoughts on where the frontiers of computable economics are, and how to move towards them, conclude the paper. In a precise sense -- both historically and analytically -- it would not be an exaggeration to claim that both the origins of computable economics and its frontiers are defined by two classics, both by Banach and Mazur: that one page masterpiece by Banach and Mazur and the unpublished Mazur conjecture of 1928, and its unpublished proof by Banach. For the undisputed original classic of computable economics is Rabin's effectivization of the Gale-Stewart game; the frontiers, as I see them, are defined by recursive analysis and constructive mathematics, underpinning computability over the computable and constructive reals and providing computable foundations for the economist's Marshallian penchant for curve-sketching and, in general, the contents of Theoretical Computer Science, Vol. 219, Issue 1-2). The former work has its roots in the Banach-Mazur game, at least in one reading of it; the latter in Banach and Mazur (1937), as well as other, earlier, contributions, not least by Brouwer.
    Keywords: Computability, Effectivization, Constructivity, Uncomputability, Computable Economics
    Date: 2013
  5. By: Nicholas Crafts (University of Warwick); Nikolaus Wolf (Humboldt University Berlin)
    Abstract: We examine the geography of cotton textiles in Britain in 1838 to test claims about why the industry came to be so heavily concentrated in Lancashire. Our analysis considers both first and second nature aspects of geography including the availability of water power, humidity, coal prices, market access and sunk costs. We show that some of these characteristics have substantial explanatory power. Moreover, we exploit the change from water to steam power to show that the persistent effect of first nature characteristics on industry location can be explained by a combination of sunk costs and agglomeration effects.
    Keywords: agglomeration; cotton textiles; geography; industry location
    JEL: N63 N93 R12
    Date: 2013–09
  6. By: Aldasoro, Iñaki; Angeloni, Ignazio
    Abstract: The analyses of intersectoral linkages of Leontief (1941)and Hirschman (1958) provide a natural way to study the transmission of risk among interconnected banks and to measure their systemic importance. In this paper we show how classic input-output analysis can be applied to banking and how to derive six indicators that capture different aspects of systemic importance, using a simple numerical example for illustration. We also discuss the relationship with other approaches, most notably network centrality measures, both formally and by means of a simulated network.
    Keywords: banks, input-output, systemic risk, too-interconnected-to fail, networks, interbank markets
    JEL: C67 G00 G01 G20
    Date: 2013–08
  7. By: Brenzel, Hanna; Gartner, Hermann; Schnabel, Claus
    Abstract: Using a representative establishment dataset, this paper is the first to analyze the incidence of wage posting and wage bargaining in the matching process from the employer's side. We show that both modes of wage determination coexist in the German labor market, with about two-thirds of hirings being characterized by wage posting. Wage posting dominates in the public sector, in larger firms, in firms covered by collective agreements, and in part-time and fixed-term contracts. Job-seekers who are unemployed, out of the labor force or just finished their apprenticeship are also less likely to get a chance of negotiating. Wage bargaining is more likely for more-educated applicants and in jobs with special requirements as well as in tight regional labor markets. -- Dieser Aufsatz analysiert erstmals mit Hilfe einer repräsentativen Betriebsbefragung die Verbreitung von fixen Lohnangeboten der Arbeitgeber und von Lohnverhandlungen bei Neueinstellungen. Wir zeigen, dass sowohl individuelle Lohnverhandlungen als auch fixe Lohnangebote in Deutschland vorkommen, wobei bei rund zwei Drittel der Neueinstellungen ein fixer Lohn angeboten wird. Besonders häufig gibt es fixe Lohnangebote im öffentlichen Dienst, in tarifgebundenen Firmen und bei Teilzeit- oder befristeter Beschäftigung. Mit Personen, die vorher nicht erwerbstätig waren oder eine Ausbildung beendet haben, wird seltener über den Lohn verhandelt. Wahrscheinlicher ist eine Lohnverhandlung, wenn die eingestellte Person höher qualifiziert ist, wenn spezielle Qualifikationen verlangt werden oder wenn die regionale Arbeitslosigkeit gering ist.
    Keywords: wage posting,wage bargaining,hiring,matching,Germany
    JEL: E24 J30 J63 M51
    Date: 2013
  8. By: Anil Rupasingha
    Abstract: The concept of “economic gardening”—supporting locally owned businesses over nonlocally owned businesses and small businesses over large ones—has gained traction as a means of economic development since the 1980s. However, there is no definitive evidence for or against this pro-local business view. Therefore, I am using a rich U.S. county-level data set to obtain a statistical characterization of the relationship between local-based entrepreneurship and county economic performance for the period 2000–2009. I investigate the importance of the size of locally based businesses relative to all businesses in a county measured by the share of employment by local businesses in total employment. I also disaggregate employment by local businesses based on the establishment size. My results provide evidence that local entrepreneurship matters for local economic performance and smaller local businesses are more important than larger local businesses for local economic performance.
    Date: 2013
  9. By: Lauren Cohen; Dong Lou; Christopher Malloy
    Abstract: We explore a subtle but important mechanism through which firms manipulate their information environments. We show that firms control information flow to the market through their specific organization and choreographing of earnings conference calls. Firms that “cast” their conference calls by disproportionately calling on bullish analysts tend to underperform in the future. Firms that call on more favorable analysts experience more negative future earnings surprises and more future earnings restatements. A long-short portfolio that exploits this differential firm behavior earns abnormal returns of up to 101 basis points per month. Further, firms that cast their calls have higher accruals leading up to call, barely exceed/meet earnings forecasts on the call that they cast, and in the quarter directly following their casting tend to issue equity and have significantly more insider selling.
    JEL: G0 G12 G14
    Date: 2013–09
  10. By: Geoff C Harcourt (School of Economics, the University of New South Wales)
    Date: 2013–09

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