nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2015‒03‒27
eighteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. The Question of Knowledge in Economics* By Hans Christian Garmann Johnsen
  2. Supply and Demand Is Not a Neoclassical Concern By Lima, Gerson P.
  3. The Gender-Career Estimation Gap By Lutz Kaiser
  4. Gender Differences in Time Poverty in Rural Mozambique By Diksha Arora
  5. The Political, Moral, Intellectual and Revolutionary Authority of Africa in Malcolm X's Life and Thought By Tunde Adeleke
  6. Indian Subaltern Feminism and American Black Womanism By Leema Rose
  7. The gold standard for randomised evaluations: from discussion of method to political economics By Florent Bédécarrats; Isabelle Guérin; François Roubaud
  8. Contrasting Paradigms of Energy Security: Which Way for the Future? An Ecological Economics Perspective By Filippos Proedrou
  9. Input Diffusion and the Evolution of Production Networks By Carvalho, Vasco M; Voigtländer, Nico
  10. Shifting Roles of Women: Through the lens of Bollywood By Ruchi Agarwal
  11. Profit-Sharing and Wages: An Empirical Analysis Using French Data Between 2000 and 2007 By Noélie Delahaie; Richard Duhautois
  13. The Right to Strike and the Future of Collective Bargaining in South Africa: an exploratory analysis By Koboro Selala
  14. The many dimensions of child poverty: Evidence from the UK Millennium Cohort Study By Andrew Dickerson; Gurleen Popli
  15. No condition is permanent : middle class in Nigeria in the last decade By Corral Rodas,Paul Andres; Molini,Vasco; Oseni,Gbemisola O.
  16. How do you construct a political agenda? Co-participation patterns of social organizations in 2009-12 chilean protests By Juan Soto; Marcelo Lufin; Gonzalo Ibañez
  17. Towards a Multidimensional Poverty Index for Germany By Nicola Suppa
  18. Das zukünftige Verhältnis von Kapitalismus und Demokratie aus ökonomischer Sicht By Gebhard Kirchgässner

  1. By: Hans Christian Garmann Johnsen (University of Agder)
    Abstract: This article argues that despite the fact that the concept of knowledge and is much discussed, it is underdeveloped in economic theory. It discusses this in relation to three dominant positions in economics; the Neoclassical, Institutional and Austrian. Of the three, the Austrian is the position that has gone deepest into the study of knowledge. However, not even the Austrian position has fully explored how knowledge development can be integrated into its theory. It is therefore argued that economic theory should embrace a broader understanding of knowledge, which draws upon a cross-disciplinary approach and takes into account that knowledge is inherently both a subjective, social and complex phenomenon.
    Keywords: knowledge in economics, economic theory
    Date: 2014–10
  2. By: Lima, Gerson P.
    Abstract: The central point of this paper is the demonstration that there is a real world supply and demand theory, supported by an estimate of the US aggregate supply curve. The fundamental idea is that demand and supply interaction is the smallest economic act, an act without which there would be no economics. Paper’s first point is that what neoclassical textbooks call supply and demand is just a disguising device created to justify a given goal and stresses three mistakes that plague all profit maximisation models thus condemning the neoclassical approach to unfeasibility: the notions of competition and equilibrium and the econometrics of disequilibrium data. The second point is the proposal of rescuing and improving the approach to the supply and demand theory prevailing before the upsurge of the neoclassical doctrine. Fundamental assumptions are three; first, supply and demand generates price and production of all relevant products and services, being thus the immediate cause of all economic outcomes: (un)employment, income, tax receipts, etc., and their social consequences on education, wealth distribution, and so forth. Second, supply and demand interplay depends on several exogenous factors, mainly human ontological behaviour, economic policy and natural resources; exogenous phenomena, especially the economic policy, command supply and demand and supply and demand commands the economy. Third, production takes time; quantities produced and sold are never equal; disequilibrium is the usual status of the supply and demand interaction and therefore the entire economy. Econometrics of the experiment described deals with disequilibrium without using the time series method and gives support to the proposed economic structure and theory.
    Keywords: Economic theory, equilibrium,supply and demand.
    JEL: A11 B41 C13
    Date: 2015–03–03
  3. By: Lutz Kaiser (FHoeV NRW)
    Abstract: The paper discusses gender differences with regard to the self- and reciprocal estimation of career expectations. Firstly, the theoretical background and the literature are identified. Within this frame, the instance of self-under-estimated career prospects of female workers and statistical discrimination in the labor market are described. Both aspects are jointly assessed as a self-fulfilling prophecy-phenomenon redounded to women’s disadvantage on the labor market. Secondly, the empirical part analysis the respective self- and reciprocal estimation of female and male career prospects for public sector workers in Germany. The results display obvious discrepancies between self- and reciprocally estimated career expectations that constitute a gender-career estimation gap. As the German public sector contains specific devices to equalising career chances of male and female employees, the findings even underpin the insistency of under-estimated career prospects of female workers despite the existing public sector regime of equality. Finally, approaches of how to equalize male and female career chances are critically reviewed.
    Keywords: self- and reciprocal estimation of career opportunities, gender-career estimation gap, statistical discrimination, self-fulfilling prophecy, public sector
    JEL: J16 J24 J45
    Date: 2014–07
  4. By: Diksha Arora
    Abstract: This study examines the nature and extent of time poverty experienced by men and women in subsistence households in Mozambique. Gender roles, shaped by patriarchal norms, place heavy work obligations on women. Time-use data from a primary household survey in Mozambique is used for this analysis. The main findings suggest that women’s labor allocation to economic activities is comparable to that of men. Household chores and care work are women’s responsibility, which they perform with minimal assistance from men. The heavy burden of responsibilities leave women time poorer, compared to 50% of women, only 8% of men face time constraints. Women’s time poverty worsens when the burden of simultaneous care work is taken into account. Not only women work longer hours, due to multi-tasking, the work tends to be more taxing. The examination of determinants of time poverty show that measures of bargaining power like assets and education do not necessarily affect time poverty faced by women.
    Keywords: intra-household allocation, time allocation, poverty, gender, Africa JEL Classification: D13, J22, I3, J16, O55
    Date: 2014
  5. By: Tunde Adeleke (Iowa State University)
    Abstract: From the dawn of the Black experience in America, Africa had played and continues to play, a central role in constructions of countervailing forms/forces of resistance and empowerment. From the early nineteenth century “pioneers of protest†down to the civil and post-civil rights activists, Black Americans have invoked Africa as a critical repertoire of resistance. None more so than Malcolm X (1925-1965). Although he began his activist career in the Nation of Islam, an organization that focused less on Africa as a source of inspiration and strength, Malcolm would, shortly after his break with the NOI, position Africa at the core, and the foundation, for his philosophy of resistance and empowerment for Blacks. In his writings and speeches; and in the movement that he developed for advancing the black struggles, Malcolm X prioritized the African nexus. He advocated broadening the purview of the Black American struggles to include Africa. In his view, Africa offered much of what Black Americans lacked and desperately need in their historic struggles—the moral, cultural, political, and intellectual force and authority that would facilitate black liberation and empowerment in both America and globally.
    Keywords: liberation, resistance, empowerment, hegemony, self-esteem
    Date: 2014–10
  6. By: Leema Rose (Sirte University)
    Abstract: Women's oppression is the most widespread and the deepest form of oppression in society. The world of women, as Simone de Beauvoir observes, "is everywhere enclosed, limited, dominated by the male universe; high as she may raise herself, far as she may venture, there will always be a ceiling over her head, walls that will block her way". Women all over the world, like the colonized subjects, have been relegated to the position of the "other" "marginalized" and in a metaphorical sense "colonized" by various forms of patriarchal domination as they share with colonized races and cultures an intimate experience of the politics of oppression and repression. Based on this assumption of inferior position, women are called the "subalterns". The issues agitating women belonging to different cultures are different.There are two special voices shouting in the wilderness for liberation-- the Dalit woman in India and the Black woman in America, who are under the triple subjugation of caste or race, gender and class. It is therefore imperative to isolate the problems specific to these triple-subjugated women and work for their empowerment. The Dalit woman writer Bama's stories and the African-American woman writer Alice Walker's stories demonstrate how the material reality of different groups of women can lead to very different perceptions of the nature of political struggle. All the different schools of Feminist thought have a particular way of characterizing freedom or liberation. In the case of Womanist thought, the emphasis is on the full self-development of woman but there is also recognition that women are all involved with families, communities, political entities and other groups that affect their progress in important ways. Dalit Feminism, on the other hand, underscores the relevance of the histories of colonialism on the national front and stories of male hegemony on the familial front. Hence, this paper focuses on Dalit Feminism and American Black Womanism.
    Keywords: Dalit Feminism, Black Womanism, Subaltern, Colonialism, Hegemony, Triple-subjugation.
    Date: 2014–05
  7. By: Florent Bédécarrats; Isabelle Guérin; François Roubaud
    Abstract: This last decade has seen the emergence of a new field of research in development economics: randomised control trials. This paper explores the contrast between the (many) limitations and (very narrow) real scope of these methods and their success in sheer number and media coverage. Our analysis suggests that the paradox is due to a particular economic and political mix driven by the innovative strategies used by the new school’s researchers and by specific interests and preferences in the academic world and the donor community.
    Keywords: Impact evaluation; randomised control trial; experimental method; political economy; development
    JEL: A11 B41 C93 D72 O10
    Date: 2015–03–16
  8. By: Filippos Proedrou (American College of Thessaloniki (ACT) / International Hellenic University)
    Abstract: This paper argues that mainstream discourse on energy security is premised upon the assumption of infinite growth and for this reason focuses upon the political, security and economic aspects of energy security. Consequently, it fails to provide satisfactory answers to the global environmental, energy, economic, geopolitical, and developmental challenges. The emerging alternative paradigm, to the contrary, makes a strong case for disentangling prosperity from growth and studies how a substantial retreat of energy consumption is not only feasible, but will also efficiently address the sustainability challenge and enhance overall energy security. It also suggests how it can alleviate geopolitical and developmental tensions. Ultimately, the paper poses the fundamental question of how valid our assumptions are to lead us into a better, and sustainable, future.
    Keywords: Energy security paradigm, ecological economics, development, growth, sustainability
    JEL: F50 Q01 Q50
    Date: 2014–12
  9. By: Carvalho, Vasco M; Voigtländer, Nico
    Abstract: The adoption and diffusion of inputs in the production network is at the heart of technological progress. What determines which inputs are initially considered and eventually adopted by innovators? We examine the evolution of input linkages from a network perspective, starting from a stylized model of network formation. Producers direct their search for new inputs along vertical linkages, screening the network neighborhood of existing suppliers to identify potentially useful inputs. A subset of these is then adopted, following a tradeoff between the benefits from input variety and the costs of customizing new inputs. Guided by this framework, we document a novel stylized fact at both the sector and the firm level: producers are more likely to adopt inputs that are already used – directly or indirectly – by their current suppliers. In particular, using disaggregated input-output data, we show that initial network proximity of a sector in 1967 significantly increases the likelihood of adoption throughout the subsequent four decades. A one-standard deviation decrease in network distance is associated with an increase in the adoption probability by one third to one half. Similarly, U.S. firms are significantly more likely to develop new input linkages among their suppliers’ network neighborhood. Our results imply that the existing production network plays a crucial role in the diffusion of inputs and the evolution of technology.
    Keywords: directed network search; dynamics of production networks; input adoption
    JEL: C67 D57 L23 O33
    Date: 2015–03
  10. By: Ruchi Agarwal (Mahidol University International College)
    Abstract: Men in most societies were seen as breadwinners while role of women was restricted to being a good homemaker and a good mother. This applies to women in a highly patriarchal society of India. As societies entered the world of modernization, the role of women changed dramatically. Media played an important role in the modernization of societies and greatly affected the image of women in today’s modern world. A number of researches have been done on the role of women in different societies. However little has been said about the importance of movies in portraying women in shifting roles over different decades and the impact it has on societies in general. Over past decades, Indian cinema has witnessed a significant transformation in the way women are portrayed through movies. Contemporary movies portray women as more independent, confident, and career oriented This article deals with these fast changing role of women portrayed in Indian cinema and its influence on the patriarchal Indian society with a focus on some representative Bollywood movies. The aim is to link the changing character played by women in movies with the emerging status of women in India, as movies are a reflection of changes in the social structure.
    Keywords: Bollywood, India, Movies, Roles, Women
    Date: 2014–06
  11. By: Noélie Delahaie; Richard Duhautois
    Date: 2015
    Abstract: Ethical leadership is defined as “the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement and decision-makingâ€. ( al. 2005). Like charismatic leadership, ethical leadership is a value-driven form of leadership. Such value-driven leaders affect the self-concept and beliefs of their followers which, in turn, affect their motivation, attitudes, and behaviors (Hartog and Belschak, 2012). Ethical leaders embody the purpose, vision, and values of the organization and of the constituents, within an understanding of ethical ideals. They connect the goals of the organization with that of the internal employees and external stakeholders (Bello, 2012). In the literature, it is proposed that leaders' social responsibility may be related to ethical leadership. Ethical leaders are expected to do what is morally right through an inner obligation (Kanungo & Mendoca, 1996). Thus, they are expected to have a high internal obligation as well as high moral standards. Further, they engage in virtuous acts or behaviors that benefit others. This implies they will have a high concern for others. In line with this, Kanungo (2001) argues that an internalized norm of responsibility (or social responsibility) forms the basis of the moral altruism motive and consequently the moral foundation of ethical leadership. The purpose of this study is to analyze the relationship between ethical leadership dimensions of employees and their perceptions on social responsibility implications. The study will be conducted with employed students enrolled to an MBA programs of universities. The scale developed by Kalshoven, Hartog and Hoogh (2011) which bases on 7 different dimensions will be used to measure ethical leadership throughout the research. Social responsibility scale that will be used in the study was developed by Carroll (1999) and has 4 dimensions - economic, legal, ethical, and philanthropic. Throughout the analyses, it will be investigated whether this relationship differ in terms of certain demographic variables such as gender, age and tenure. By understanding this relationship, certain practical recommendations will be presented accordingly. Such recommendations are especially important to shed light on the impact of ethical leadership dimensions on social responsibility practices and thus to bridge individual level perceptions to firm level implications. Basing on these linkages, specific important organizational interventions which will further contribute to organizational processes in this context will be discussed.
    Keywords: Ethical leadership, corporate social responsibility, leadership.
    JEL: M10
    Date: 2014–10
  13. By: Koboro Selala (North West University)
    Abstract: Section 23 of the Constitution of the Republic of South Africa confers on every worker the right to strike. It further provides that every trade union, employers\' organization and employer has the right to engage in collective bargaining, and goes on to provide that national legislation may be enacted to regulate the process. The Labour Relations Act of 1995, enacted specifically to give effect to these constitutional rights, gives effect to the right to strike by providing procedures for the exercise of the right, and protections for strikes in the collective bargaining context. Interestingly, the Act does not provide for the duty to bargain. With the current wave of industrial action sweeping across the South African labour industry, the issue of the interplay between the workers’ right to strike and to bargain collectively with the employer remains one of the topical issues in the South African labour law discourse. The critical question that this paper seeks to address is whether the right to collective bargaining extends to an entitlement for workers to exercise collective power by striking, in the event that the bargaining process reaches impasse. This paper thus seeks to explore these concepts in an attempt to see what is at stake in deriving an entitlement to strike from what looks like a very abstract entitlement to bargain. The results of this exploration will then be brought to bear on some particular problems to do with the scope of the right to strike in South Africa. The paper argues that the current constitutional and statutory framework on collective labour dispute resolution in South Africa is flawed, and calls for urgent attention.
    Keywords: Constitution; right to strike; collective bargaining; labour law
    JEL: J52
    Date: 2014–05
  14. By: Andrew Dickerson (Department of Economics, University of Sheffield); Gurleen Popli (Department of Economics, University of Sheffield)
    Abstract: In this paper we use a multidimensional framework to characterise child poverty in the UK. We examine the interdependencies amongst the different dimensions of multidimensional poverty, and the relationship of multidimensional poverty with income poverty. We also explore the links between multidimensional poverty, income poverty, and children's cognitive and non-cognitive development. Our findings suggest that multidimensional poverty identifies many but not all of the same children classified using standard income poverty measures, although multidimensional poverty is rather more persistent over time than income poverty. Multidimensional poverty also has a detrimental impact on children's development over and above the negative impact of income poverty.
    Keywords: child poverty; multidimensional poverty; income poverty; child development
    JEL: I32 J13 J62
    Date: 2015–03
  15. By: Corral Rodas,Paul Andres; Molini,Vasco; Oseni,Gbemisola O.
    Abstract: The economic debate on existence and definition of the middle class has become particularly lively in many developing countries. Despite this growing interest, the identification of the middle class group in these countries remains quite challenging. Building on a recently developed framework to define the middle class, this paper tries to estimate the Nigerian middle class size in a rigorous quantitative manner. By exploiting publicly available panel data, the expenditure associated to a 10 percent probability of falling into poverty is estimated, and this is used as the middle class threshold for Nigeria. The threshold expenditure for the middle class in Nigeria is found to be 378.39 Naira per capita per day (2010 PPP). Relying on this threshold and through survey-to-survey imputation the size of Nigeria's middle class in 2003 is also estimated. The results show that there has been considerable improvement on the size of the middle class and poverty reduction between 2003 and 2013. Poverty decreased between 2003 and 2013 from 45 to 33 percent, while the middle class increased from 13 percent to 19 percent. Nevertheless the results still paint a heterogeneous picture of poverty and the middle class in Nigeria, where the largest portion of the population, although above the poverty threshold, continues to live with average or high vulnerability to poverty.
    Keywords: Regional Economic Development,Inequality,Social Inclusion&Institutions,Urban Partnerships&Poverty,Economic Development
    Date: 2015–03–16
  16. By: Juan Soto (Departamento de Economía, Universidad Católica del Norte); Marcelo Lufin (Departamento de Economía, Universidad Católica del Norte); Gonzalo Ibañez (Departamento de Economía, Universidad Católica del Norte)
    Abstract: This paper analyse the network of social demonstrations of the recent "Chilean Student Winter" occurred between 2009 and 2012 by studying the co-participation patterns of social organizations using social network analysis. We describe main social actors and study the topological characteristics of the networks formed through social organizations, demonstrations and motives. Also, we study the change in the density of the network of demonstrations due to the rise of the ÒChilean Student WinterÓ at 2011. We found that in spite that the ÒChilean Student WinterÓ was mainly a student revolution, organizations of workers are the protagonist of this period according to the network analysis. Additionally, there are a significant change in the global cohesion or density of the demonstrationÕs network at 2011-12 in relation to 2009-2010.
    Keywords: Social Network Analysis, Social Movements, Chilean Protests.
    Date: 2015–03
  17. By: Nicola Suppa
    Abstract: This paper compiles a multidimensional poverty index for Germany. Drawing on the capability approach as conceptual framework, I apply the Alkire-Foster method using German panel data. I suggest new operationalizations for two dimensions: social participation and practical reason, the latter drawing on recent findings in experimental economics. The results are consistent with earlier findings, but also reveal several new insights. Specifically, numerous decompositions of the poverty index prove helpful in better tracking and understanding developments. Moreover, I find poor individuals to be adversely affected by general trends in deprivation indicators. Comparing multidimensional and income-based methods, I find only a modest overlap of people considered as poor by both approaches. Moreover, I address the role of income as a dimension in multidimensional poverty indices.
    Keywords: Multidimensional poverty; Alkire-Foster method; capability approach; SOEP
    JEL: I3 I32 D63 H1
    Date: 2015–02
  18. By: Gebhard Kirchgässner
    Abstract: Whether democracy or capitalism should have normative priority depends on the philosophi- cal point of view but also how both are defined. The more rele vant perspective is, however, the positive one. Formally, politics dominate, bu t the economy often dominates de facto be- cause political decisions against interests of powerful economic players might cause high so- cietal costs. Since the downfall of the Iron Wall capitalism spread out much more than democ- racy. Future development might strongly depend on the development of the new authoritarian market economies: Can high growth continue wh ile political rights are largely suppressed, or do they have to concede more and more to democratic rights in order to ensure further eco- nomic growth? One would like to see the latter one, but this is by no means sure.
    Keywords: Capitalism; Democracy; Economic Development; Market Economy
    JEL: H11 O10
    Date: 2015–03

This nep-hme issue is ©2015 by Carlo D’Ippoliti. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.