nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2014‒03‒30
seventeen papers chosen by
Carlo D'Ippoliti
La Sapienza University of Rome

  1. Profit for Marxists By Kakarot-Handtke, Egmont
  2. The laws of imitation and invention: Gabriel Tarde and the evolutionary economics of innovation By Faridah Djellal; Faïz Gallouj
  3. Just a Matter of Prospect (Theory)? - The Ecological Rationality of the Traditional Accounting Principles By Eduard Braun
  4. Le reporting sur la diversite du genre dans les rapports annuels des banques francaises: quels changements? By Amel Ben Rhouma; Marie-José Scotto
  5. Are Moral Islamic Economics an Answer to the Global Financial Crisis ? By Jean-Yves Moisseron; Frederic Teulon
  6. Contextual and Structural Representations of Market-mediated Economic Value By Bradly Alicea
  7. Social Exchange Concept As A Methodological Framework For Employment Relations Analysis By Azer Efendiev; Anna Gogoleva; Evgeniya Balabanova
  8. A caring interpretation of stakeholder management for the social enterprise. Evidence from a regional survey of micro social cooperatives in the Italian welfare mix By Lorenzo Dorigo; Giuseppe Marcon
  9. On open identity; otherness, distance and self-command; Smith and the view of justice By Gianni Vaggi; Sara Stefanini
  10. CEO compensation and topmanagement incentives. Internal or social problems ? By Frédéric TEULON
  11. Os sentidos do passado: questão agrária e luta pela terra no interior de São Paulo (Brasil, 1949) By Vagner José Moreira
  12. Europe meets Asia: The transnational construction of access and voice from below By Zajak, Sabrina
  13. Gender in the crisis and prospects for the future By Sile Padraigin O'Dorchai
  14. Finance Ethique et RSE : le cas de trois banques By L. Hikkerova; J. Bortolloti
  15. “Relative Movements of Real Wages and Output” – How does Keynes’s 1939 essay relate to his Principle of Effective Demand? By Jochen Hartwig
  16. Rage and Protest: The case of the Greek Indignant movement By Marilena Simiti
  17. Inputs, Gender Roles or Sharing Norms? Assessing the Gender Performance Gap Among Informal Entrepreneurs in Madagascar By Nordman, Christophe Jalil; Vaillant, Julia

  1. By: Kakarot-Handtke, Egmont
    Abstract: Marxian economics and standard economics are widely different yet they share a central weakness: the respective profit theories are demonstrably false – each one in its own characteristic way. Roughly speaking, Marx tried to explain profit by objective factors while standard economics cites subjective factors. For different reasons, neither route led to satisfactory results. The conclusion is straightforward: one has to do better. The conceptual consequence is to first reconstruct the profit theory from a solid basis with no regard to either Marxian or standard premises. In order to succeed, objective-structural axioms have to be taken as formal point of departure.
    Keywords: new framework of concepts; structure-centric; axiom set; profit theory; surplus value; distribution; real shares
    JEL: B59 E11 E25
    Date: 2014–03–26
  2. By: Faridah Djellal (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS : UMR8019 - Université Lille I - Sciences et technologies); Faïz Gallouj (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS : UMR8019 - Université Lille I - Sciences et technologies)
    Abstract: Gabriel Tarde was a French sociologist and criminologist whose work is rediscovered from time to time. Economists of innovation have paid insufficient attention to an author who devoted a large part of his work to the laws of imitation and invention. The purpose of this paper is threefold. The first is to give a succinct account of these laws of imitation and invention. The second is to re-examine and extend the debates on the similarities between Schumpeter and Tarde. The third and main purpose is to examine the similarities, hitherto unexplored to the best of our knowledge, between Tarde's work and contemporary neo-Schumpteterian and evolutionary theories.
    Keywords: Tarde, Schumpeter, evolutionary theory, innovation, imitation.
    Date: 2014–03–18
  3. By: Eduard Braun (Abteilung für Volkswirtschaftslehre, Technische Universität Clausthal (Department of Economics, Technical University Clausthal))
    Abstract: The principles characterizing the traditional revenue-expense approach to accounting have never been “invented.” They are an institution that is the result of social evolution, not of human design. Therefore, the efforts to defend them against the balance sheet approach endorsed by standard-setters have encountered severe difficulties. The latter is based on a coherent model of the economy, namely neoclassical economics. This paper argues that a solid basis for explaining the rationale of the traditional accounting principles can be found in behavioral economics, especially in Prospect Theory. If one combines this result with a market process view of the economy, the revenue-expense approach turns out to be congenial to the organization of the market economy.
    Keywords: Financial Accounting, Prospect Theory, Fair Value, Historical Costs
    JEL: D03 M41 M48
    Date: 2014
  4. By: Amel Ben Rhouma; Marie-José Scotto
    Abstract: The aim of this paper is to investigate the reporting of the information concerning a specific dimension of diversity: gender and more precisely employment of women in the French’ banks corporate annual documents of the between 1999 and 2009. Although we concentrate on a single sector and banks of equivalent sizes, our findings show different reporting models. We also observe that the word “women” was not used in the reporting before the enactment of the French NRE law of 2001. The rise of the women employment indicators is strongly linked with diversity charts and labels. The neo-institutional theory can be used as an explanatory framework of women employment reporting.
    Keywords: diversity, gender, CSR reporting, equality, bank
    Date: 2014–02–25
  5. By: Jean-Yves Moisseron; Frederic Teulon
    Abstract: One may think that Islam has not much to say on the Crisis of Capitalism because the corpus underpinning the Islamic thought: The Coran and the Sunnah were established long before the development of capitalism. Islamic economy would be then adapted to Pre-capitalist societies. Zakat may be useful to undeveloped society and prohibition of Riba may be convenient only with traditional economy based mainly on trade. One can stand that Islamic thought is not convenient for developed capitalism and for modern societies. The history of Islamic economics proves the contrary.
    Date: 2014–02–25
  6. By: Bradly Alicea
    Abstract: How do we assign value to economic transactions? To answer this question, we must consider whether the value of objects is inherent, is a product of social interaction, or involves other mechanisms. Economic theory predicts that there is an optimal price for any market transaction, and can be observed during auctions or other bidding processes. However, there are also social, cultural, and cognitive components to the assignation of value, which can be observed in both human and non-human Primate societies. While behaviors related to these factors are embedded in market interactions, they also involve a biological substrate for the assignation of value (valuation). To synthesize this diversity of perspectives, we will propose that the process of valuation can be modeled computationally and conceived of as a set of interrelated cultural evolutionary, cognitive, and neural processes. To do this, contextual geometric structures (CGS) will be placed in an agent-based context (minimal and compositional markets). Objects in the form of computational propositions can be acquired and exchanged, which will determine the value of both singletons and linked propositions. Expected results of this model will be evaluated in terms of their contribution to understanding human economic phenomena. The paper will focus on computational representations and how they correspond to real-world concepts. The implications for evolutionary economics and our contemporary understanding of valuation and market dynamics will also be discussed.
    Date: 2014–03
  7. By: Azer Efendiev (National Research University Higher School of Economics); Anna Gogoleva (National Research University Higher School of Economics); Evgeniya Balabanova (National Research University Higher School of Economics)
    Abstract: The goal of the paper is to suggest the methodological framework of social exchange for analysis of employment relations. Our literature review revealed confusion concerning the definition of social exchange in the context of labor processes and employee-organization relations. The latter are complex and imply all elements of reciprocal and negotiated exchange as well as economic and social forms of exchange. We focus on rules and means of exchange as well as power-dependence relations during the work process. The concept of “psychological contracts” that embodies the social exchange approach in empirical studies is also under consideration. Methodological limitations of current concepts and measures based on exchange methodology are discussed. The authors argue that deepening and specification of key parameters of social exchange approach could be very analytically productive in sociological research of employment relations seen as employee-employer mutual obligations.
    Keywords: social exchange theory, employment relations, social interactions, psychological contracts, employee-organization relations.
    JEL: M54 M51 J59
    Date: 2014
  8. By: Lorenzo Dorigo (Dept. of Management, Università Ca' Foscari Venice); Giuseppe Marcon (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: The stakeholder literature on the social enterprise is still a nascent and largely under investigated field of knowledge. This literature is characterized by the existence of two persistently divergent theorizings, broadly, the ÔcorporateÕ and the Ôsocio-politicalÕ approach. We assume that the reason of this divergence lies in the absence of proper moral justifications underpinning the notion of stakeholder legitimacy, which results in devaluations and misinterpretations of the normative foundations of stakeholder management. In order to bridge this gap, we propose to conceive of the two theorizings as if they were empirical streams of research of a common normative framework of stakeholder thought. A special focus is given to the feminist theory, and, especially, to the Ôethics of careÕ (Gilligan 1982, Noddings 1984, 1999; Held, 2003), as meaningful moral grounding for advancing descriptions and managerial interpretations of the particular nature and functions of firm stakeholder relationships in social enterprises. To the purpose, we draw from the specialized literature on caring both insights and criteria of an ideal architecture of firm as Ôcaring organizationÕ (Liedtka, 1996), in order to offer an operationally meaningful conceptualization of how social enterprises might simultaneously enhance both the effectiveness and the moral quality of stakeholder management. Then, we test these assumptions on a regional survey of micro social co operatives in the Italian welfare mix. Findings reveal that the caring for attribute of ÔproximityÕ shaping firm stakeholder relationships offers a lot of useful insights to conceive of caring as suitable moral grounding for a common stakeholder theorizing of social enterprise.
    Keywords: care management, stakeholder theory, social enterprise, feminis ttheory, stakeholder involvement
    JEL: M14 M29 B54
    Date: 2014–02
  9. By: Gianni Vaggi (Department of Economics and Management, University of Pavia); Sara Stefanini (Department of Economics and Management, University of Pavia)
    Keywords: Justice, A.Sen, A.Smith
    Date: 2014–03
  10. By: Frédéric TEULON
    Abstract: This paper analyzes the income of french top managers taking as a sample firms that made the CAC 40 in 2009. The pay gap between CEOs and unskilled workers have never been higher. In our view, explanations of this trend are not solely related to economic causes (transformation of the labor market, failure of control systems…), they also result from transformation of the ruling classes and from the modification of their place in the society (loss of morality, inbreeding, collusion public/private). We must return to principles of common sense (an incentive payment but not abusive) in a societal perspective. Different solutions are presented and discussed
    Keywords: Agency problem, CEO compensation, Corporate governance, Top-management incentives, Rent seeking
    Date: 2014–02–25
  11. By: Vagner José Moreira
    Abstract: In this article, search the memories of the communist uprising of 1949, Fernandópolis, in the Northwest of São Paulo, Brazil. The dispute around the memory and the construction of meanings is related to the hiding the historical struggle for land and against exploitation in the country. The official versions about the movement are marked for limited communism memories. Other memories relate to the struggle of workers during the decades of 1940-50 to the land struggles of rural landless contemporary. This interpretive act is relevant, since attributes meaning to fact and constitute in evidence plural experiences.
    Keywords: workers, memory, social movement, agrarian revolution, Communist Party
    JEL: J43 J81 J83 P32
    Date: 2014–05
  12. By: Zajak, Sabrina
    Abstract: This paper contributes to the debate on the role of democratic participation in complex systems of governance. It takes a process-oriented constructivist approach asking how transnational activism over time contributes to the construction of access and voice from below and uses the Asia-Europe Meetings (ASEM) to analyze how interactions between civil society and global governance institutions shape concrete forms of participation. The paper shows that transnational activism triggers both discursive and institutional changes within the official ASEM process leading to an informal, fragmented, and fragile institutionalization of civil society participation. However, the paper reveals a division between civil society organizations with some, such as business representatives, having preferential access and voice in comparison to more contentious organizations. The paper explains this fragmented form of democratization as the result of three interrelated processes: the particular history and economic origins of the ASEM; international developments particularly in the ongoing economic crisis; and domestic developments within individual countries (in particular China) which have begun to favor controlled access for civil society participation. -- Vor dem Hintergrund der Debatte um die Rolle und Funktion demokratischer Partizipation in globalen Governance-Regimen fragt dieser Aufsatz, welchen Einfluss transnationale Mobilisierung auf die Konstruktion von Partizipations- und Mitbestimmungsmöglichkeiten haben kann. Am Beispiel der Asien-Europa-Treffen (ASEM) wird gezeigt, wie die Interaktion zwischen zivilgesellschaftlichen Organisationen und globalen Governance-Institutionen verschiedene Partizipationsformen hervorbringt. Dabei wird argumentiert, dass ein qualitatives sozialkonstruktivistisches Vorgehen gut geeignet ist, Prozesse der Demokratisierung von unten zu verstehen. Die Analyse zeigt, dass transnationale Mobilisierung im Zeitverlauf zu diskursivem und institutionellem Wandel in den ASEM-Institutionen beigetragen hat, und veranschaulicht, dass sehr informelle und sporadische Partizipationsmöglichkeiten entstehen, die teilweise auch zu einer diskursiven Annäherung zwischen Kritikern und politischen Eliten führen. Gleichzeitig lässt sich jedoch zwischen wirtschaftsintegrationsfreundlichen Organisationen (Wirtschaftsverbänden) und kritischeren Organisationen (Gewerkschaften, NGOs) eine starke Trennung von Partizipations- und Einflussmöglichkeiten feststellen. Insgesamt wird die Entstehung von polarisierten, informellen und sporadischen Partizipationsformen mit drei Faktoren erklärt: der ökonomischen Orientierung des ASEM-Prozesses, den internationalen Wirtschaftskrisen und dem Wandel einzelner Staaten in ihrem Verhältnis zur Zivilgesellschaft.
    Date: 2014
  13. By: Sile Padraigin O'Dorchai
    Abstract: The aim of this paper is to illustrate how the crisis has affected current and future perspectives for job quantity and quality from a gender standpoint. It starts with a summarised overview of existing literature on the gendered effects of economic downturns. It continues with a statistical analysis of how European labour markets were hit by the crisis analyzing developments in labour market indicators that capture both quantitative and qualitative dimensions of female and male employment and poverty. The aim of the third section is to come to a better understanding of the general job potential that has been shaped by the crisis for both female and male workers in Europe focusing particularly on smart jobs, green jobs, and white jobs. Finally, the paper presents a critical assessment of both the policies that have been adopted throughout the EU in response to the crisis and the indicators that are currently being used to monitor progress towards or away from gender equality on Europe’s labour markets. In this critical assessment of the gendered impact of anti-crisis measures and policies due attention is given both to job quantity and job quality. As such the “theoretical” job potential is put to the test of recent policy developments in order to distil the real-life post-crisis gendered job potential as it is supported by policy-makers throughout the EU
    Keywords: austerity; gender; crisis; policies; labour markets
    JEL: J16 J08
    Date: 2013–11–07
  14. By: L. Hikkerova; J. Bortolloti
    Abstract: La fin du XXe siècle a connu une profonde mutation socio - économique et politique qui a favorisée une interrogation sur le rôle social des entreprises. Celles-ci se doivent aujourd’hui d’assumer la responsabilité des conséquences de leurs activités, de répondre à des attentes ou des obligations face aux enjeux du développement durable. Des enjeux qui ne sont pour l’heure pas entourés par un cadre juridique très strict. En effet, le concept du développement durable, popularisé depuis le rapport Brundtland de 1987, a donné naissance à un paradigme large et malléable.
    Date: 2014–02–25
  15. By: Jochen Hartwig (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: Keynes’s essay “Relative Movements of Real Wages and Output” is widely believed to be an important amendment to his General Theory because, in this essay, Keynes relaxed his core assumption of decreasing marginal returns to labour. Non-decreasing marginal returns, however, do not sit comfortably with the prime innovation of the General Theory: the Principle of Effective Demand. This will be demonstrated by performing – for the first time in the literature – numerical simulations with Keynes’s Aggregate-Demand-Aggregate-Supply (D/Z) model. The view that Keynes’s 1939 essay constitutes an important amendment to his General Theory thus has to be put into perspective.
    Keywords: Keynes, effective demand, D/Z model, marginal returns to labour
    JEL: B31 E12
    Date: 2014–03
  16. By: Marilena Simiti
    Abstract: In Greece a mass movement known as the Aganaktismeni (the Indignant) became the main agent of social resistance to the memorandum signed by the Greek government, the European Union and the International Monetary Fund. The Greek movement did not take the form of a social movement sharing a minimum collective identity. Left-wing protestors played a prominent role. Protestors embracing right-wing populist frames also participated actively in collective mobilizations, while segments of the extreme right attempted to manipulate rage to their advantage. This unique feature of the Greek movement posed a completely different challenge to the principles of diversity and inclusiveness than the one debated within the Spanish Indignados and the Occupy protests. Furthermore, it illustrates that rage and indignation may spark dissimilar, even conflicting forms of political contention.
    Keywords: Protest; Austerity; Emotions; Frames; Collective Identity
    Date: 2014–02
  17. By: Nordman, Christophe Jalil (IRD, DIAL, Paris); Vaillant, Julia (World Bank)
    Abstract: We use a representative sample of informal entrepreneurs in Madagascar to add new evidence on the magnitude of the gender performance gap. After controlling for business and entrepreneur characteristics, female-owned businesses exhibit a value added 28 percent lower than their male counterparts. Correcting for endogenous selection into informal self-employment raises the gap by 5 percentage points. We then investigate the role of sharing norms and gender-differentiated allocation of time within the household in the gender performance gap, by estimating their effect on the technical inefficiency of female and male entrepreneurs. Only male entrepreneurs seem subject to pressure to redistribute from the distant network. Our findings are consistent with situations where women working at home would essentially feel negatively the burden of their own community due to intense social norms and obligations in their workplace but also of domestic chores and responsibilities. We find evidence of females self-selecting themselves into industries in which they can combine market-oriented and domestic activities.
    Keywords: gender, entrepreneurship, informal sector, sharing norms, household composition, Madagascar
    JEL: D13 D61 O12 J16
    Date: 2014–03

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