nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2015‒05‒02
twelve papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Investigating the political economy of social protection expansion in Africa at the intersection of transnational ideas and domestic politics By Lavers, Tom; Hickey, Sam
  2. Class politics and social protection: the implementation of India’s MGNREGA By Indrajit Roy
  3. Polyarchies, Competitive Oligarchies, or Inclusive Hegemonies? 23 Global Intergovernmental Organizations Compared By Dawisson Belém Lopes
  4. Fair Shares between Worker and Investor:Economic Experiments on Functional Income Distribution By Natsuka Tokumaru; Hiroyuki Uni
  6. The social legitimacy of differently targeted benefits By Wim van Oorschot; Femke Roosma
  7. Estimation of Unaccounted Income Using Transport as a Universal Input: A Methodological Note. By Mukherjee, Sacchidananda; Rao, R. Kavita
  8. The Political Economy of Hindu Nationalism: From V.D. Savarkar to Narendra Modi By Iwanek, Krzysztof
  9. A Complexity Approach for Public Policies By Bernardo Alves Furtado; Patrícia Alessandra Morita Sakowski; Marina Haddad Tóvolli
  10. Do Improved Property Rights Decrease Violence Against Women in India? By Sofia Amaral
  11. Eyes wide shut: John Rawls's silence on racial justice By Ai-Thu Dang
  12. The Meaning of Failed Replications: A Review and Proposal By Clemens, Michael A.

  1. By: Lavers, Tom; Hickey, Sam
    Abstract: The growing literature on social protection in Africa has tended to focus on conceptual debates, policy design issues and impact evaluations. To date, there has been relatively little systematic analysis of the ways in which politics and political economy shape policy. This paper outlines a conceptual and methodological framework for investigating the politics of social protection, with a particular focus on explaining the variation in progress made by African countries in adopting and implementing social protection programmes. We propose that an adapted "political settlements" framework that incorporates insights from the literatures on the politics of welfare state development and discursive institutionalism can help frame elite commitment to social protection as an outcome of the interaction of domestic political economy and transnational ideas. This approach has the advantage of situating social protection within a broader policy context, as well as highlighting the influence of underlying power relations in society. Finally, the paper suggests a research methodology that can be employed to operationalise this approach, with a particular focus on process tracing and comparative case study research.
    Keywords: social protection, social policy, economic policy, political aspect, Africa, protection sociale, politique sociale, politique économique, aspect politique, Afrique, protección social, política social, política económica, aspecto político, Africa
    Date: 2015
  2. By: Indrajit Roy
    Abstract: In this paper, I direct attention to the role of class politics in shaping the outcomes of social protection interventions. I highlight the ways in which class politics is constituted by the interaction of class relations and the balance of substantive class power in a polity. I demonstrate the ways in which variations in class politics influence outcomes of a large social protection programme in India, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In localities where either of the elite classes has successfully co-opted or eliminated the other, their stark contradictions against the interests of agricultural labourers result in them sabotaging the labour-friendly MGNREGA or implementing it half-heartedly. On the other hand, in localities characterised by an overarching framework of contest between the precarious classes and the entrenched classes, dominant class hostility to agricultural labourers is dissipated and labour-friendly programmes such as the MGNREGA have a chance of being implemented. However, the transformative aspect of the programme’s intent, in terms of dissolving the relations of power that bolster poverty, appears to be more in evidence in localities where emergent classes with precarious surpluses, together with agricultural labourers, challenge the influence of the entrenched classes. In these localities, the implementation of the programme, even where fraught with difficulties, contributes to dissolving hierarchical relations and establishing egalitarian ones.
    Date: 2015
  3. By: Dawisson Belém Lopes (Universidade Federal de Minas Gerais)
    Abstract: In this paper, I assume that global intergovernmental organizations (GIGOs) function as “enablers” of interstate liberal politics by way of their multilateral institutional frame-works. To support this view, I recall and adapt the classical concept of “polyarchy,” coined in the early 1950s by Robert A. Dahl. It consists of a two-dimensional theoretical construct applicable for measuring the level of liberalization in modern political societies. It follows that the more actors who take part in politics, and the more that institutions allow political opposition, the more open a society (of states) is likely to be. I thus wish to assess and rate the level of “polyarchization” of 23 GIGOs that cover various issue areas and fit some specific criteria (for example, more than one hundred member states from at least three different continents). The methodology section includes a scorecard that I have specially developed to help achieve these research objectives.
    Keywords: Robert A. Dahl, polyarchy, international organizations, democracy, political theory, international relations
    Date: 2015–02
  4. By: Natsuka Tokumaru; Hiroyuki Uni
    Abstract: Declines in labor wage rate accompanied with increases in dividend or stocks are worldwide tendencies since 1980s that designates significant change in functional income distribution between capital and labor. Whereas some empirical studies in macro-level analyzes these changes are caused by institutional changes in recent decades such as financialization, studies on micro-level analysis on functional income distributions are few. However, how workers and investors consider distribution justice may have significant importance for explaining recent changes in functional distribution. If both of workers and investors contributed to a production process in different ways, what is ‘fair’ share for each of them? In this paper we have performed economic experiments, consisting of investment stage, production stage and distribution stage and examined fairness ideals in functional income distribution. In our experiment each subject is pair-matched to constitute a two-player’s team consisting of a worker and an investor. After investment stage by an investor and production stage by a worker, each team member was required to give a proposal to separate a team earning with one’s pair. We have performed two different treatments: a) with-labor treatment in which investors are required to work to earn investment funds; b) without-labor treatment in which investment funds are given to investors as their endowments. We have classified each subject’s distribution proposal into three fairness ideals: selfish; libertarian; and radical egalitarian, and examined what factors are significant for subject’s distribution justice. Our findings are threefold. 1) First, few libertarian-marginalist, who believes one should ‘get according to their production by production measurements they own’ was observed. 2) Second, labor value theory seems to have more impact on fairness ideals of individuals: in with-labor treatment investors have to work for their investment funds, both of investors and workers tend to be unselfish, whereas in without-labor treatment investors do not need to work, both of investors and workers tend to be selfish. 3) Third, investors have significant tendencies to commit libertarian egalitarian, that enable them to hold their rest investment funds as their asset, whereas workers have significant tendencies to adhere radical-egalitarian, that enable them to redistribute investor’s assets. These tendencies may be understood from self-serving bias that both of workers and investors have. Although a difference between libertarian-egalitarian and radical-egalitarian distributions seems to be not so serious for finding a compromise, however, in the case investors’ capitals do not based on their labors, a discrepancy in distribution between workers and investors seems to be created. Our experimental results may partly explain recent declines in labor-wage accompanied with institutional changes: financialization tend to make investors to adhere more selfish distribution whereas weakened collective bargaining power by unions promote those tendencies.
    Keywords: wage gap; Functional Income Distribution, Fairness Ideals, Economic Experiments
    JEL: D33 C91 C92
    Date: 2015–04
  5. By: Sandro Pereira Silva
    Abstract: Este trabalho buscou analisar quais os principais aspectos multifuncionais e pluriativos que envolvem a agricultura familiar com as dinâmicas territoriais de maior escala, de acordo com as características regionais nas quais se inserem. Entende-se que a noção de multifuncionalidade permite analisar a interação entre famílias e territórios na dinâmica de reprodução social, englobando também a geração de uma série de bens públicos e privados. Ela reforça uma dimensão essencial da relação entre agricultura familiar e território, que é seu caráter intersetorial, embora a agricultura permaneça como o setor econômico mais relevante. Esse caráter intersetorial também não se resume apenas aos setores produtivos, pois, enquanto unidades familiares, elas demandam uma série de serviços públicos e privados, que faz com que a própria reprodução social da agricultura familiar gere uma série de oportunidades para a dinamização do ambiente econômico local. O rural deixa de ser visto apenas como um espaço de produção agrícola e passa a ser visto como um macro-organismo social, complexo e fortemente imbricado ao território por meio de suas relações de trabalho, produção e consumo. This work analyzes the main aspects pluriactive and multifunctional agriculture involving familiar with the territorial dynamics of larger scale, according to regional characteristics under which they operate. It is understood that the notion of multifunctionality analyze the interaction between families and territories in the dynamics of social reproduction, including also the generation of a number of public and private goods. It enhances an essential dimension of the relationship between family farmers and territory, which is its inter-sector, while agriculture remains as relevant economic sector. This intersectoral character also is not just the productive sectors, because while family units, they require a number of public and private services, which makes their social reproduction of family farming generates a lot of opportunities to boost the local economic environment. The rural is no longer seen only as a space for agricultural production and is seen as a macro-social organism, complex and strongly overlapping the territory through its labor relations, production and consumption.
    Date: 2015–04
  6. By: Wim van Oorschot; Femke Roosma
    Abstract: Against the background of a permanent process of welfare reform, in which a pivotal role is played by the socio-political debate on ‘who should get what and why’, this paper addresses the question about the social legitimacy of differently targeted welfare schemes. It aims to review what is known in the academic literature on the social legitimacy of particular types of programs and schemes that are targeted at specific needs and needy groups. The central questions addressed are 1) what factors - institutional, cultural or even evolutional - make that some forms and aims of welfare targeting are more, or less, supported by the public than others, and 2) how these factors can be interpreted and related to each other in a more general framework? The review shows that the field needs to develop further, which is why the paper concludes with a discussion of some venues for future research on the legitimacy of differently targeted benefits.
    Keywords: deservingness, welfare state, public opinion, welfare attitudes, social legitimacy
    JEL: I30
    Date: 2015–04
  7. By: Mukherjee, Sacchidananda (National Institute of Public Finance and Policy); Rao, R. Kavita (National Institute of Public Finance and Policy)
    Abstract: There has been a lot of interest in understanding and measuring the size of unaccounted incomes in economies. There are several methods to measure size of unaccounted income (or shadow economy) - e.g., monetary approach (or currency demand approach), latent variable approach and global indicator approach. Present paper proposes an alternative method by using transport as a universal input. The method is applied to Indian data. To capture the changing structural relationship between input-output and annual volatility of demands, we tested the methodology for two successive Input-Output tables and three consecutive financial years. Since the analysis is based on assumptions, a comparative static analysis is carried out to check the sensitivity of estimates to changes in the assumptions.
    Keywords: Unaccounted income ; Under-reporting of GDP ; Road Freight Transport ; Input-Output Approach ; Diesel Adulteration ; India
    Date: 2015–04
  8. By: Iwanek, Krzysztof
    Abstract: In May 2014 Indias stock markets climbed to a record high, anticipating the victory of the Bharatiya Janata Party and its charismatic leader, Narendra Modi. However, the first economic decisions of Modis government did not incite a market revolution (though it has only been few months since its inception). This, however, is not surprising if one traces the Hindu nationalists?changing views on economy throughout the last decades. The main inspirations of BJPs ideology have been its mother-organization (RSS), and two earlier Hindu nationalist parties: Bharatiya Jana Sangh and Hindu Mahasabha (mostly through ideas of its leader, V.D. Savarkar). After briefly describing the views of all of these bodies, I will map out the main issues in the Hindu nationalist approach towards economy. Finally, I will try to show how the present government of Narendra Modi is trying to deal with these discrepancies.
    Keywords: political economy in India, Hindu nationalism, Hindutva, swadeshi; Bharatiya Janata Party, Rashtriya Swayamsevak Sangh
    JEL: M00
    Date: 2014–12–01
  9. By: Bernardo Alves Furtado; Patrícia Alessandra Morita Sakowski; Marina Haddad Tóvolli
    Abstract: Theoretical models of the Kuznets Curve have been purely analytical with little contribution towards an understanding of the timing of the process and the presence of additional mechanisms affecting its timing. This paper proposes an agent-based version of Acemoglu and Robinson’s model of the Kuznets Curve. In extending their analytical framework we include heterogeneity of agents’ income and a mating mechanism that together represent elements of social mobility. These two simple changes proved to be enough to shed light on the length and timing before high inequality implies regime change. Thus, this work may contribute to an effective empirical assessment of the Kuznets curve as it explicitly considers the time dimension of the process and the effects of considering social dynamics.
    Date: 2015–04
  10. By: Sofia Amaral
    Abstract: This paper uses the staggered implementation of a legal change in inheritance law in India to estimate the effect of women's improved access to inheritance on both police-reported and self-reported violence against women. I find a decrease in reported violence and female unnatural deaths following the amendments. Further, women eligible for inheritance are 17 percent less likely to be victims of domestic violence. These findings are explained by an improvement in husbands' behaviour and via better marriage market negotiations. However, I find little evidence of changes in women's participation in decision-making.
    Keywords: Crime, Domestic Violence, Property Rights, Intra-household
    JEL: J12 J16 K42 O15
    Date: 2015–04
  11. By: Ai-Thu Dang (Centre d'Economie de la Sorbonne)
    Abstract: John Rawls's remarks on race are sparse in his writings. However, three key moments in his conceptual apparatus wherein racial issues appear explicitly can be be highlighted: (1) the status of race as a feature of the veil of ignorance; (2) racial minorities, the least advantaged, and the difference principle; and (3) the role of arguments made by antebellum abolitionist dissidents and Martin Luther King, Jr., in favor of racial equality in his reformulation of his notion of public reason. I show that the introduction of race poses difficulties for Rawls in his theory of justice. I also propose an explanation of why Rawls does not address issues of racial justice more explicitly and in-depth. However, because Rawls himself explained his relative silence on racial justice, I discuss its relevance. I contend that Rawls's conception of justice as fairness as a form of political liberalism is indebted to a strong principle of equal citizenship for all individuals that is blind to race and ethnicity, so his theoretical apparatus addresses the issue of legal racial discrimination or institutional racism. Nevertheless, it fails to address the problem of systemic racial discrimination
    Keywords: John Rawls; justice as fairness; racial (in)justice; public reason; ideal and nonideal theory
    JEL: A12 B41 D63
    Date: 2015–04
  12. By: Clemens, Michael A. (Center for Global Development)
    Abstract: The welcome rise of replication tests in economics has not been accompanied by a single, clear definition of replication. A discrepant replication, in current usage of the term, can signal anything from an unremarkable disagreement over methods to scientific incompetence or misconduct. This paper proposes an unambiguous definition of replication, one that reflects currently common but unstandardized use. It contrasts this definition with decades of unsuccessful attempts to standardize terminology, and argues that many prominent results described as replication tests – in labor, development, and other fields of economics – should not be described as such. Adopting this definition can improve incentives for researchers, encouraging more and better replication tests.
    Keywords: replication, robustness, transparency, open data, ethics, reproducible, replicate, misconduct, fraud, error, code, registry
    JEL: B40 C18 C80
    Date: 2015–04

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.