nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2014‒12‒13
thirteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. One million miles to go: taking the axiomatic road to defining exploitation By Veneziani, Roberto; Yoshihara, Naoki
  2. Schumpeter and Goodwin By Hanappi, Hardy
  3. The unsolved contradictions of the modernists. Economic policy expectations and political crisis in France 1978-2012 By Bruno Amable
  4. The Ricardian rent theory two centuries after By Christian Bidard
  5. Institutions and Diversification: Related versus Unrelated Diversification in a Varieties of Capitalism framework By Ron Boschma; Gianluca Capone
  6. Housework Share between Partners: Experimental Evidence on Gender Identity By Auspurg, Katrin; Iacovou, Maria; Nicoletti, Cheti
  7. The Sustainable Choice: How Gendered Difference in the Importance of Ecological Benefits Affect Production Decisions of Smallholder Cacao Producing Households in Ecuador By Useche, Pilar; Blare, Trent
  8. Collateral imbalances in intra-european trade? Accounting for the difference between gross and value added trade balances By Nagengast, Arne J.; Stehrer, Robert
  9. Do women earn less even as social entrepreneurs? By ESTRIN, Saul; STEPHAN, Ute; VUJIC, Suncica
  10. Nachhaltigkeit als Bestandteil der Unternehmensstrategie von Genossenschaftsbanken: Eine Verknüpfung mit dem Konzept des MemberValues By Klein, Florian
  11. What Do Field Experiments of Discrimination in Markets Tell Us? A Meta Analysis of Studies Conducted since 2000 By Rich, Judy
  12. Gender and the Labor Market: What Have We Learned from Field and Lab Experiments? By Ghazala Azmat; Barbara Petrongolo
  13. Varieties of knowledge-based bioeconomies By Urmetzer, Sophie; Pyka, Andreas

  1. By: Veneziani, Roberto (School of Economics and Finance, Queen Mary University of London); Yoshihara, Naoki (The Institute of Economic Research, Hitotsubashi University)
    Abstract: This paper analyses the Marxian theory of exploitation. A general axiomatic approach is developed which is appropriate to study the concept of exploitation - what it is and how it should be captured empirically. Two properties are presented that capture some fundamental Marxian insights. It is shown that, contrary to the received view, there exists a nonempty class of definitions of exploitation that preserve the relation between exploitation and profits - called Profit-Exploitation Correspondence Principle - in general economies with heterogeneous agents, complex class structures, and production technologies with heterogeneous labour inputs. However, among the main approaches, only the so-called ‘New Interpretation’ satisfies the Profit-Exploitation Correspondence Principle in general.
    Keywords: Exploitation, profits, axiomatic analysis
    JEL: B51
    Date: 2014
  2. By: Hanappi, Hardy
    Abstract: This paper discusses the works of Joseph Schumpeter and Richard Goodwin using the common perspective that both were theoretical mavericks of mainstream economic theory development in the 20th century. In particular the fact that their activities overlapped during their cooperation at Harvard University is explored. Their contributions are interpreted as entrepreneurial activity in the domain of theory building - with some spillovers to economic policy intervention. It is argued that maverick theoretical activity is indispensable for progress in evolutionary political economy.
    Keywords: Evolutionary political economy, Schumpeter, Goodwin, history of thought
    JEL: B3 B31 B41 B50 O31
    Date: 2014–11–12
  3. By: Bruno Amable (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, CEPREMAP - Centre pour la recherche économique et ses applications - Centre pour la recherche économique et ses applications, IUF - Institut Universitaire de France - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique)
    Abstract: This paper analyses the French political crisis since the late 1970s by investigating the links between the social structure and the economic policy expectations of the electorate. To this end, data on post-electoral survey are used to estimate structural models of political support to political parties for 1978 and 2012, and the estimation results are used to propose an analysis of the French crisis. The enduring French political crisis is found to be the expression of contradictions between the economic policies implemented by the successive governments and the existence of a dominant social bloc, i.e. a coalition of social groups that would politically support the dominant political strategy. Since 1978, both the right and the left have failed to find a solution to the contradictions between the policies they implemented and the expectations of their social bases, which are themselves inhabited by tensions and contradictions that evolve with the structure of French capitalism. The failure of all governing coalitions so far is a new expression of that of the "modernists" to take into account the expectations of the popular classes.
    Keywords: France; political crisis; political economy; social base
    Date: 2014–03
  4. By: Christian Bidard
    Abstract: We propose to re-read Ricardo's theory of rent and its modern versions. Ricardo's dynamic approach follows the transformations of a long-term equilibrium with demand. Sraffa adopted the same framework while substituting a value criterion for a physical criterion to determine the incoming marginal method, but he did not state the law of succession of methods explicitly. This prevented him to realize that his critique opens the door to all complications of capital the ory, with the consequence that the Ricardian dynamics fail when a divergence appears between profitability and productivity. Contemporary studies have cast doubts on the validity of some of Ricardo's and Sraffa's over-optimistic conclusions, but the abandonment of the dynamic approach does not allow them to explain the ultimate reason of the phenomena they have pointed at. Ricardo's method has been recently rediscovered by mathematicians.
    Keywords: Classical theory, land, rent, Ricardo, Sraffa.
    JEL: B12 B51 C61 D33
    Date: 2014
  5. By: Ron Boschma; Gianluca Capone
    Abstract: The Varieties of Capitalism literature has drawn little attention to industrial renewal and diversification, while the related diversification literature has neglected the institutional dimension of industrial change. Bringing together both literatures, the paper proposes that institutions have an impact on the direction of the diversification process, in particular on whether countries gain a comparative advantage in new sectors that are close or far from what is already part of their existing industrial structure. We investigate the diversification process in 23 developed countries by means of detailed product trade data in the period 1995-2010. Our results show that relatedness is a stronger driver of diversification into new products in coordinated market economies, while liberal market economies show a higher probability to move in more unrelated industries: their overarching institutional framework gives countries more freedom to make a jump in their industrial evolution. In particular, we found that the role of relatedness as driver of diversification into new sectors is stronger in the presence of institutions that focus more on ‘non-market’ coordination in the domains of labor relations, corporate governance relations, product market relations, and inter-firm relations.
    Keywords: varieties of capitalism, institutions, relatedness, diversification, evolutionary economic geography
    JEL: B52 L16 O43 P16 P51
    Date: 2014–11
  6. By: Auspurg, Katrin (Goethe University Frankfurt); Iacovou, Maria (University of Cambridge); Nicoletti, Cheti (University of York)
    Abstract: Using an experimental design, we investigate the reasons behind the gendered division of housework within couples. In particular, we assess whether the fact that women do more housework may be explained by differences in preferences deriving from differences in gender identity between men and women. We find little evidence of any systematic gender differences in the preference for housework, suggesting that the reasons for the gendered division of housework lie elsewhere.
    Keywords: gender, housework, unpaid work, division of labor, experiment
    JEL: J16 J22 C35
    Date: 2014–10
  7. By: Useche, Pilar; Blare, Trent
    Abstract: Our research examines how the changing cultural norms and legal status in Ecuador have impacted women’s empowerment in the agricultural sector and in rural communities. Cacao provides a particularly relevant case because of its economic and ecological importance to Ecuador and the region. The traditional cacao agroforests also provide many ecological services such as habitat for many endangered plants and animals. However, they are not as profitability as the monoculture systems. Because of these economic and ecological concerns, promotion of cacao agroforests has been the focus of development efforts by the Ecuadorian government, nongovernmental organizations, and international donor agencies, many of whom also have goals of empowering Ecuadorian women (Suarez 2013). Thus, women’s involvement in cacao production would be an important indicator of women’s status in rural Ecuador. To determine the value that men on women place on these nonmarket benefits and ability of women to influence household production decisions, we conducted 350 household interviews throughout coastal Ecuador from February through July, 2013. We implemented a choice experiment separately with the principle male and female member of the household. The choice experiment consisted of the household member choosing between pictures of two parcels to determine how much more profit the participant would need to receive in order to prefer the monoculture system over the agroforestry system. By employing a Random Effects Logit regression, we were able calculate men and women’s average willingness to pay for the attributes of the cacao agroforests (Birol et al. 2006). We found that both genders place a higher value on the agroforests than monoculture corps; however, women place a higher value on these benefits than men do.
    Keywords: gender, cacao, Ecuador, willingness to pay, choice experiment, agroforestry, Environmental Economics and Policy, Food Security and Poverty, International Development,
    Date: 2014
  8. By: Nagengast, Arne J.; Stehrer, Robert
    Abstract: One of the main stylised facts that has emerged from the recent literature on global value chains is that bilateral trade imbalances in gross terms can differ substantially from those measured in value added terms. However, the factors underlying the extent and sign of the differences between the two measures have so far not been investigated. Here, we propose a novel decomposition of bilateral gross trade balances that accounts for the differences between gross and value added concepts. The bilateral analysis contributes conceptually to the literature on double counting in trade by identifying the trade flow in which value added is actually recorded for the first time in international trade statistics. We apply our decomposition framework to the development of intra-EU27 trade balances from 1995-2011 and show that a growing share of intra-EU bilateral trade balances is due to demand in countries other than the two direct trading partners. JEL Classification: F1, F2, C67, R15
    Keywords: global value chains, input-output tables, trade balances, value added, vertical specialisation
    Date: 2014–07
  9. By: ESTRIN, Saul; STEPHAN, Ute; VUJIC, Suncica
    Abstract: Based upon unique survey data collected using respondent driven sampling methods, we investigate whether there is a gender pay gap among social entrepreneurs in the UK. We find that women as social entrepreneurs earn 29% less than their male colleagues, above the average UK gender pay gap of 19%. We estimate the adjusted pay gap to be about 23% after controlling for a range of demographic, human capital and job characteristics, as well as personal preferences and values. These differences are hard to explain by discrimination since these CEOs set their own pay. Income may not be the only aim in an entrepreneurial career, so we also look at job satisfaction to proxy for non-monetary returns. We find female social entrepreneurs to be more satisfied with their job as a CEO of a social enterprise than their male counterparts. This result holds even when we control for the salary generated through the social enterprise. Our results extend research in labour economics on the gender pay gap as well as entrepreneurship research on women’s entrepreneurship to the novel context of social enterprise. It provides the first evidence for a “contented female social entrepreneur” paradox.
    Keywords: Social entrepreneur, Gender pay gap, Social enterprise, Earnings, Job satisfaction
    JEL: J28 J31 J71 L32
    Date: 2014–11
  10. By: Klein, Florian
    Abstract: Das Leitbild der Nachhaltigkeit gewinnt angesichts der steigenden ökologischen, ökonomischen und sozialen Herausforderungen immer mehr an Bedeutung. Dieses Arbeitspapier widmet sich der Fragestellung, inwieweit dieses Leitbild für Genossenschaftsbanken, denen ein traditionell nachhaltiges Wirtschaften attestiert wird, von strategischer Relevanz ist. Es wird herausgestellt, dass Genossenschaftsbanken ihre Unternehmensstrategie nicht ausschließlich am Leitbild der Nachhaltigkeit ausrichten, sondern dieses in eine MemberValue-Strategie integrieren sollten. Dabei kann gezeigt werden, dass umfassende Nachhaltigkeitsleistungen die Voraussetzung für die Schaffung eines unmittelbaren, mittelbaren und nachhaltigen MemberValues sind.
    Abstract: With the increasing environmental, economical and social challenges, the concept of sustainability is becoming more and more important. This working paper analyses the strategic relevance of the concept for cooperative banks, who are considered to be traditionally sustainable. The paper shows that cooperative banks should not simply implement the concept of sustainability in the center of their business strategy. It is advised to integrate this concept into their MemberValue-strategy, since comprehensive sustainable activities are the requirement for the creation of a direct, indirect and sustainable MemberValue.
    Date: 2014
  11. By: Rich, Judy (University of Portsmouth)
    Abstract: Sixty-seven field experiments of discrimination in markets conducted since 2000 across seventeen countries were surveyed. Significant and persistent discrimination was found on all bases in all markets. High levels of discrimination were recorded against ethnic groups, older workers, men applying to female-dominated jobs and homosexuals in labour markets. Minority applicants for housing needed to make many more enquiries to view properties. Geographical steering of African-Americans in US housing remained significant. Higher prices were quoted to minority applicants buying products. More information made no significant improvement to minority applicant outcomes. Clear evidence of statistical discrimination was found only in product markets.
    Keywords: field experiments, discrimination, survey, meta analysis
    JEL: J7 C93
    Date: 2014–10
  12. By: Ghazala Azmat (Queen Mary University of London and CEP (LSE)); Barbara Petrongolo (Queen Mary University of London and CEP (LSE))
    Abstract: We discuss the contribution of the experimental literature to the understanding of both traditional and previously unexplored dimensions of gender differences and discuss their bearings on labor market outcomes. Experiments have offered new findings on gender discrimination, and while they have identified a bias against hiring women in some labor market segments, the discrimination detected in field experiments is less pervasive than that implied by the regression approach. Experiments have also offered new insights into gender differences in preferences: women appear to gain less from negotiation, have lower preferences than men for risk and competition, and may be more sensitive to social cues. These gender differences in preferences also have implications in group settings, whereby the gender composition of a group affects team decisions and performance. Most of the evidence on gender traits comes from the lab, and key open questions remain as to the source of gender preferences -nature versus nurture, or their interaction- and their role, if any, in the workplace.
    Keywords: Gender, Field experiments, Lab experiments, Discrimination, Gender preferences
    JEL: J16 J24 J71 C91 C92 C93
    Date: 2014–09
  13. By: Urmetzer, Sophie; Pyka, Andreas
    Abstract: Governments around the world seek for strategies to overcome the reliance on fossil resources and provide solutions for the most challenging contemporary global issues: food shortage, depletion of natural resources, environmental degradation and climate change. A very recent and widely diffused proposition is to transform economic systems into bio-based economies, which are based on new ways of intelligent and efficient use of biological resources and processes. If taken seriously, such endeavour calls for the creation and diffusion of new knowledge as basis for innovation and behavioural change on various levels and therefore often is referred to as knowledge-based bioeconomy. In the current debate, the requirement for innovation is mostly seen in the advance of the biotechnology sector. However, in order to fulfil the requirement of sustainability, which implicitly is connected with the bio-based economy, the transformation towards a bioeconomy requires a fundamental socio-economic transition and must comprise changes in technology as well as in markets, user practices, policy, culture and institutions. To illustrate a nation's capability for this transition, we refer to the concept of national innovation systems in its broad approach. With the help of an indicator-based multivariate analysis we detect similarities and dissimilarities of different national systems within the European Union as basis for a transition towards a knowledge-based bioeconomy. The analysis allows to compare the different strategies and to identify bottlenecks as well as success factors and promising approaches in order to design policy instruments to foster this imperative transformation.
    Date: 2014

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