nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2014‒09‒05
fifteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Schumpeter's Idea of a Universal Science By Bögenhold, Dieter
  2. La mesure de l'impact social : facteur de transformation du secteur social en Europe By Nicole ALIX; Adrien BAUDET
  3. Hierarchical causality in financial economics By Diane Wilcox; Tim Gebbie
  4. Aid and Support for the Social Economy in Poland – The Case of Social Cooperatives By Karolina MAJDZINSKA
  5. Gender Equality and the Labor Market: Cambodia, Kazakhstan and the Philippines By Asian Development Bank (ADB); ; ;
  6. The Domestic Segment of Global Supply Chains in China under State Capitalism By Tang, Heiwai; Wang, Fei; Wang, Zhi
  7. INDIA: Gender Equality Diagnostic of Selected Sectors By Asian Development Bank (ADB); ; ;
  8. On the modeling of size distributions when technologies are complex By Jakub Growiec
  9. A LINEAR PRICE MODEL WITH EXTRACTIONS By Ana-Isabel Guerra; Ferran Sancho
  10. Gender and Ethnicity in Bolivia, Ecuador, and Guatemala By Carla Canelas; Silvia Salazar
  11. Vertu retrouvée ou survie imposée, les banques coopératives dans l’après Coop Bank By Jean-Louis BANCEL; Olivier BONED
  12. Labour Market Progression of Canadian Immigrant Women By Alicia Adsera; Ana Ferrer
  13. Socioeconomic consumption modelling in an input-output model By Britta Stoever; Thomas Drosdowski; Ulrike Lehr; Marc Ingo Wolter
  14. The Construction of the 2010 Input-Output Tables for the Jordanian Economy and its Applications and Uses By Hashim Al-Ali; Orouba Sabbagh
  15. Fragility of the Commons under Prospect-Theoretic Risk Attitudes By Ashish R. Hota; Siddharth Garg; Shreyas Sundaram

  1. By: Bögenhold, Dieter
    Abstract: This paper deals with methodological principles of Schumpeter’s academic writings. Those principles led Schumpeter to create diverse works and were reflected systematically in some of his writings, where Schumpeter emerged as a theorist of science. Besides working on specific topics, Schumpeter dealt systematically with methodological issues in different works. Schumpeter’s History of Economic Analysis, in particular, must be regarded as the one study among his diverse works, which is considered not only his latest but also his most relevant analysis concerning social sciences and the role of economics in relation to sociology, history and other academic branches. The substantial preface of the History of Economic Analysis can be regarded as a manual on how to refer to different academic branches and integrate them into a coherent universal social science, which is far removed from being an autistic, narrow economic science of some modern representation. Although Schumpeter’s History of Economic Analysis has been extensively printed in several editions, the idea is that the preface especially reveals somewhat neglected thoughts in Schumpeterian discourse. While Schumpeter is mostly regarded as a pioneer of evolutionary economics, this paper argues that Schumpeter could also, perhaps primarily, be interpreted as a well-reasoning institutionalist aiming at a universal social science. From today’s point of view, Schumpeter is a truly interdisciplinary theorist.
    Keywords: economics; sociology; Joseph A. Schumpeter; social science; history of economic thought; methodology
    JEL: A14 B31
    Date: 2014–03
    Abstract: In order to provide guidance for the European Social Entrepreneurship Funds and the Programme for Social Change and Innovation, the European Commission decided to “develop a methodology to measure the socio-economic benefits created by social enterprises” and “their impact on the community”. For whom and for which purpose will measuring impact be useful? What are the consequences for the decisions to be taken by the European institutions? This paper focuses on the different conceptions of measuring “social impact of social enterprises” and on the consequences of the public regulation being prepared. The trend towards the development of social impact assessment on the European level is currently driven by international financial institutions. Stakeholders of the European social economy sector (such as governments or NGO’s) are essentially reacting to a financial trigger. In order to better understand the framework of current European debates, the paper provides: 1) an historical insight of the social impact phenomenon, 2) a mapping of the different stakeholders (social enterprises, governments and financial institutions) and their expectations towards measurement tools and 3) foreseeable evolutions call for public action.
    Keywords: social enterprise, social economy, investment, social impact, public policies
    Date: 2014
  3. By: Diane Wilcox; Tim Gebbie
    Abstract: Hierarchical analysis is considered and a novel, multilevel model is presented in order to explore causality, chance and complexity in financial economics. A coupled system of models is used to describe multilevel interactions, consistent with market data: the top-level is described by shared risk factors, the next level combines shared risk factors with information variables and bottom-up agent generated structure based on the framework of arbitrage pricing theory, the lowest level is that of agents generating the prices of individual traded assets and a mechanism for emergence or innovation is considered. Concepts in the hierarchy of complexity are interrogated via five causation classes and the concept of actors, who serve as exemplars for types of causation, is reviewed.
    Date: 2014–08
  4. By: Karolina MAJDZINSKA (Institute of Social Economy, Collegium of Socio-Economics, Warsaw School of Economics, Poland)
    Abstract: The aim of this paper is to describe the aid and support provided for social economy in Poland, especially with respect to social cooperatives. In Poland idea of social economy spread after 1989. One example of social economy entity in Poland is new type of cooperative – social cooperative. Social cooperatives in the Polish legal order are the only type of a social enterprise entered in the legal system by a separate act in 2006. The Polish legislative body followed the model of social cooperatives type B, operating in Italy. Polish social cooperatives are an example not only of a social enterprise, but also a very good active social policy tool to actively counteract unemployment according to the principle “Jobs instead of benefits”. Due to this aspect, social cooperatives can also be interpreted in two ways – firstly, as a place of social employment (or supported employment) and secondly – simply as a subject of social economy. Those two ways of interpretation are connected with the possible aid and support for this kind of enterprises. These organizations may aid and support from different sources like: from authority/state – the governmental aid (e.g. special funding, special taxation rules), from European Union (EU) – EU funds, from others civil society organizations or non – governmental organizations (NGO’s) and at least from private sector. This paper starts with short description of polish model of social economy and the regulation about it. Author presents the information, regulation and data about actual position and situation of social economy in Poland. A key point of this part is the act of April 27th, 2006 on social cooperatives (Social Cooperatives Law Act of April 27th, 2006 – Journal of Laws of 2006 no. 94, item 651 as amended). Afterwards there are presented the dynamics of the aid and support and theirs influence on social cooperatives. Those analysis are at first more theoretical, but subsequently are also presented examples of the aid and support. In the summary author gives answers to four questions. Firstly, is the provision of aid and support rightful (in relation to fair/unfair competition)? Secondly, is the aid and support provided in the same manner in each Polish region? If there are any differences, how do they influence social cooperatives? Finally, is the aid and support delivered efficiently and, therefore, is the development of social cooperatives stimulated?
    Keywords: Aid, support, social cooperatives, social economy, social enterprise, Poland, active social policy, unemployment
    JEL: L38 P13 J68
    Date: 2014–11
  5. By: Asian Development Bank (ADB); (Regional and Sustainable Development Department, ADB); ;
    Abstract: Based on an analysis of gender inequalities, strategies and promising initiatives to countergender discrimination and promote equality between men and women in Cambodia, Kazakhstan, and the Philippines, as well as an inventory of global good legal, economic, and social practices, this report summarizes the findings and recommendations for these countries. It shows how to improve equitable employment opportunities, remuneration, and treatment for women and men at work to support the development of decent work and gender equality good practices in Cambodia, Kazakhstan, and the Philippines. The report is part of a series consisting of: •Good Global Legal Practices to Promote Gender Equality in the Labor Market •Good Global Economic and Social Practices to Promote Gender Equality in the Labor Market •Gender Equality and the Labor Market: Cambodia, Kazakhstan, and the Philippines •Gender Equality in the Labor Market in Cambodia •Gender Equality in the Labor Market in the Philippines.
    Keywords: gender, gender equality, labor market, employment, employment policies, women, cambodia, kazakhstan, philippines, gender development, informal employment, gender gaps, labor force, formal employment, labor support policies, women work, women agriculture
    Date: 2013–12
  6. By: Tang, Heiwai (Johns Hopkins University and CESIfo); Wang, Fei (University of International Business and Economics); Wang, Zhi (United States International Trade Commission)
    Abstract: This paper proposes methods to incorporate firm heterogeneity in the standard IO-table based approach to portray the domestic segment of global value chains in a country. Using Chinese firm census data for both manufacturing and service sectors, along with constrained optimization techniques, we split the conventional IO table into sub-accounts, which are used to estimate direct and indirect domestic value added in exports of different types of firm. We find that in China, both state-owned enterprises (SOEs) and small and medium domestic private enterprises (SMEs) have much higher shares of indirect exports and ratios of value-added exports to gross exports (VAX), compared to foreign-invested and large domestic private firms. Based on IO tables for both 2007 and 2010, we find increasing VAX ratios for all firm types, particularly for SOEs. By extending the method proposed by Antràs et al. (2012), we find that SOEs are consistently more upstream while SMEs are consistently more downstream within industries. These findings suggest that SOEs still play an important role in shaping China’s exports.
    Keywords: China; input-output; trade
    JEL: C67 C82 F1
    Date: 2014–06–01
  7. By: Asian Development Bank (ADB); (South Asia Department, ADB); ;
    Abstract: Concerns about persisting gender-based exclusion from the benefits of development have encouraged the Government of India and its partner institutions and donor agencies to mainstream gender in its policies, programs, and projects. This publication provides a gender analysis of six priority sectors—agriculture, energy, education, finance and public sector management, transport, and urban development—and suggests possible further actions to strengthen ADB approaches in these sectors. It is expected to provide the basis for increased attention to gender issues and opportunities in developing the India partnership strategy for 2013–2017.
    Keywords: india, Gender equality, gender mainstreaming, india women, gender equality diagnostic, gender gaps, gender inequalities, violence against women, discrimination against women, poor women
    Date: 2013–03
  8. By: Jakub Growiec
    Abstract: Most technologies used nowadays are complex in the sense that the production processes (and products themselves) consist of a large number of components which might interact with each other in complementary ways. Based on this insight, the current paper assumes that the total productivity of any given technology is functionally dependent on the individual productivities of its n components as well as the elasticity of substitution between them, s. Productivities of the components are in turn drawn from certain predefined probability distributions. Based on this set of assumptions, we obtain surprisingly general results regarding the implied cross-sectional distributions of technological productivity. Namely, drawing from the Central Limit Theorem and the Extreme Value Theory, we find that if the number of components of a technology, n, is sufficiently large, these distributions should be well approximated either by: (i) the log-normal distribution – in the case of unitary elasticity of substitution between the components (s=1); (ii) the Weibull distribution – in the case of perfect complementarity between the components (the “weakest link” assumption, s=0), (iii) the Gaussian distribution – in the (empirically very unlikely) case of perfect substitutability between the components (s?8), (iv) a novel “CES/Normal” distribution – in any intermediate CES case, parametrized by the elasticity of substitution between the components (s>0, s?1). We supplement our theoretical results with numerical simulations allowing us to assess the rate of convergence of the true distribution to the theoretical limit with n as well as the dependence of the “CES/Normal” distribution on the degree of complementarity between the technology components, s. Potential empirical applications of the theoretical result – which remain on the research agenda – include providing answers to the following research questions: How well does the “CES/Normal” distribution fit the data on firm sizes, sales, R&D spending, etc.? What is the implied value of s? Do industries seem to differ in terms of their technology complexity as captured by n? Do industries seem to differ in terms of the complementarity of technology components as captured by s? See above See above
    Keywords: NA, Modeling: new developments, Modeling: new developments
    Date: 2013–06–21
  9. By: Ana-Isabel Guerra; Ferran Sancho
    Abstract: The problem of lack of competitiveness has become one of the main concerns of European governments. This is reflected trough out the Europe 2020 Strategy that includes as key priority the promotion and efficient and productive use of inputs. Differently to other “well-behaved” European “neighbours”, in Spain productivity growth closely connected to competiveness improvements has been remarkably slow during the last decade. Some analysts consider that the bad evolution of Spanish competiveness levels is basically due to the increase in labour costs during these years. Consequently, this paper pursues to shed some light on the possible main reasons that explains the lack of competiveness in the Spanish economy. In doing so, we use a multi-sectoral approach employing yearly Input-Output data for this economy that covers the 2000-2007 time-frame. This is the empirical contribution of our paper. In terms of methodology, to the best of our knowledge, the contribution of this paper relating to the Hypothetical Extraction Method (HEM) is two-fold. Differently to what is common practise, the first contribution has to do with evaluating endogenous price impacts using the HEM. Expanding the application of the original approach first proposed by Leontief (1949), the second contribution consists in introducing an inter-temporal analysis within the HEM. This helps in the analysis of the evolution and the main determinants of the rise in price levels that has generated a decline in Spanish competitiveness levels. Applied General Equilibrium Models. Input-Output Analysis Key Sectors Analysis methodology applied to price determination. In this paper we therefore propose to implement the HEM in the Leontief price model to evaluate hidden cost linkages. Furthermore, we also explore the inter-temporal dimension of these cost linkages by using SDA (structural decomposition analysis) to Spanish input-output data for the years 2000 to 2007.
    Keywords: Spain, Impact and scenario analysis, General equilibrium modeling
    Date: 2013–06–21
  10. By: Carla Canelas (Paris School of Economics, Universit´e Paris 1, Centre d’Economie de la Sorbonne, France.); Silvia Salazar (Paris School of Economics, Universit´e Paris 1, Centre d’Economie de la Sorbonne, France.)
    Abstract: This article examines the structure of gender and ethnic wage gaps, and the distribution of both paid and unpaid work in LAC countries. The results indicate that women are highly discriminated in the job market and undertake most of the domestic activities of the households. The indigenous population also suffers from discrimination, but the wage gap is mainly explained by the difference in endowments, highlighting their limited access to education. The wage quantile decomposition results suggest the presence of sticky floors effects for both women and indigenous workers.
    Keywords: Discrimination; ethnicity; gender; time-use
    JEL: J22 J31 J71
    Date: 2014
  11. By: Jean-Louis BANCEL (Association internationale des banques coopératives); Olivier BONED (Université du Mans et Président du Centre des Jeunes, des Dirigeants, des acteurs de l’économie sociale, France)
    Abstract: The scandal of the Coop Bank appeals to the other cooperative banks to pursue their own economic activity with the goal to promote the members' interests. For the rest of the cooperative banks, the period looks to revitalize themselves. Their challenge is now to create links between the members and people who manage the coops. In few words to put again democracy and the governance at the centre of the coops model, otherwise the main risk for the coops models to disappear.
    Keywords: cooperative banks, governance, identity
    Date: 2014
  12. By: Alicia Adsera (Woodrow Wilson School, Princeton University); Ana Ferrer (Department of Economics, University of Waterloo)
    Abstract: We use the confidential files of the 1991-2006 Canadian Census, combined with information from O*NET on the skill requirements of jobs, to explore whether Canadian immigrant women behave as secondary workers, remaining marginally attached to the labour market and experiencing little career progression over time. Our results show that the labor market patterns of female immigrants to Canada do not fit the profile of secondary workers, but rather conform to patterns recently exhibited by married native women elsewhere, with rising participation (and wage assimilation). At best, only relatively uneducated immigrant women in unskilled occupations may fit the profile of secondary workers, with slow skill mobility and low-status job-traps. Educated immigrant women, on the other hand, experience skill assimilation over time: a reduction in physical strength and an increase in analytical skills required in their jobs relative to those of natives.
    Keywords: skill assimilation, labour market outcomes of immigrant women, wage gaps, female labor force participation, Canadian migration
    JEL: J01 J61 F22
    Date: 2014–08
  13. By: Britta Stoever; Thomas Drosdowski; Ulrike Lehr; Marc Ingo Wolter
    Abstract: Household specific consumption behavior is of interest for various social and economic problems. The “Poverty Report” of the Federal government of Germany for example uses the information on consumption expenditures by different household types in the context of social participation. Other fields that can be addressed are poverty consumption, sustainable consumption, effects of income redistribution, implications of demographic change etc. These subjects play a major role in the project soeb3 (Sozioökonomische Berichterstattung, Reporting on socioeconomic development, that aims at analyzing the social development in Germany. To quantify the consequences of changes in the household composition the macro-econometric input-output model INFORGE has to be extended by socioeconomic information. This will be done by including a household specific consumption module into the model environment. The paper will describe the methodology, structure and functioning of the consumption module disaggregated by socioeconomic characteristics. The applied method takes into account the availability of data and combines a macroeconomic model with micro-data based information. The socioeconomic consumption module includes 70 consumption purposes and 42 income components from the German Household Budget Survey (Einkommens- und Verbrauchsstichprobe (EVS)). The social dimensions are social status linked with household size. Changes in income estimated in the macro-economic input-output model induce changes in the household specific income composition. These changes affect the households’ consumption expenditures. Summing up the newly calculated consumption expenditures by social characteristics the aggregate consumption by purpose can again be reintegrated into the macroeconomic model. The resulting economic consequences can then be traced and quantified. One significant result is the possibility to model complex socioeconomic interactions with limited data availability. The applied method provides the opportunity to integrate socio-economic structures in an economic model environment and thus reveal the inter-related macroeconomic effects of social characteristics. The combination of micro-based and macro data enhance the original model output. Finally, the implications of demographic change, social transformation and/or changes in income can be analyzed.
    Keywords: Germany, Macroeconometric modeling, Miscellaneous
    Date: 2014–07–03
  14. By: Hashim Al-Ali; Orouba Sabbagh
    Abstract: Establishing a full-fledged input-output tables and carry out various impact and alternative scenarios for socio-economic development of the economy. The modelling approach is based on input-output techniques and methodologies to measure the impact of various policy and scenario alternatives, and forecasting the likely state of the economy thereafter. The model would many answering 'what if" in response of the decision makers alternative policy choices on, i.e. Taxation, subsidies, investment, wages level, energy cost, tariff, import substitution, labour market policy and labour importation, sectoral development, to mention but a few.
    Keywords: Jordan, Impact and scenario analysis, Forecasting and projection methods
    Date: 2014–07–03
  15. By: Ashish R. Hota; Siddharth Garg; Shreyas Sundaram
    Abstract: We study a common-pool resource game where the resource experiences failure with a probability that grows with the aggregate investment in the resource. To capture decision making under such uncertainty, we model each player's risk preference according to the value function from prospect theory. We show the existence and uniqueness of a pure strategy Nash equilibrium when the players have arbitrary (potentially heterogeneous) risk preferences and under natural assumptions on the rate of return and failure probability of the resource. Greater competition, vis-a-vis the number of players, increases the failure probability at the Nash equilibrium, and we quantify this effect by obtaining (tight) upper bounds on the failure probability at the equilibrium for a large number of players with respect to the failure probability under investment by a single player. We further examine the effects of heterogeneity in risk preferences of the players with respect to two characteristics of the prospect-theoretic value function: loss aversion and diminishing sensitivity. Heterogeneity in attitudes towards loss aversion always leads to higher failure probability of the resource at the equilibrium when compared to the case where players have identical risk preferences, whereas there is no clear trend under heterogeneity in the diminishing sensitivity parameter.
    Date: 2014–08

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