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on Heterodox Microeconomics |
|
Issue of 2015‒06‒05
nineteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Georges Daw (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS) |
| Abstract: | The neo-classic exercise of growth economic accounting for a given country leads to a quantified diagnosis of the characteristics (capital, work, total productivity of the factors) of this growth while working with a function of Cobb-Douglas production. In the presence of biased technical progress (i.e. progress not profiting identically with all the productive factors), this function is not able to separately provide the value of each bias, which can disorientate the economic policy. In this paper, we provide theoretical and empirical details necessary in economics of technical progress and precisely on the subject of the technical biased progress. We show then exhaustively and pedagogically why the Cobb-Douglas function does not allow a separate identification of these bias and is condemned to gather them within the Solow residual. |
| Abstract: | L'exercice néoclassique de comptabilité de la croissance économique pour un pays donné aboutit à un diagnostic quantifié des caractéristiques (capital, travail, productivité globale des facteurs) de cette croissance en travaillant avec une fonction de production Cobb-Douglas. En présence de biais de progrès technique (c'est-à-dire de progrès ne bénéficiant pas identiquement à tous les facteurs productifs), cette fonction n'est pas en mesure de fournir séparément la valeur de chaque biais, ce qui peut désorienter la politique économique. Dans cet article, nous fournissons les précisions théoriques et empiriques nécessaires en matière d'économie du progrès technique et précisément sur le sujet des biais de progrès technique. Nous démontrons alors exhaustivement et pédagogiquement pourquoi la fonction Cobb-Douglas ne permet pas une identification séparée de ces biais et est condamnée à les regrouper au sein du résidu de Solow. |
| Date: | 2014–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01077366&r=hme |
| By: | Claudia Carolina Córdoba Currea |
| Abstract: | El trabajo decente es un objetivo de política económica y social de primera línea para los países firmantes de los Objetivos del Milenio (ODM) y los países miembros de la OECD. En este documento se presenta un balance conceptual de los enfoques de empleos atípicos, trabajos precarios, trabajos informales y empleos de mala calidad, que luego se comparan con el enfoque de trabajo decente. Finalmente se concluye que el trabajo decente permite tener ganancias conceptuales y analíticas para el estudio del mercado de trabajo en comparación con los enfoques ya mencionados. ****** Nowadays, decent work is a frontline objective of economic and social policies, especially for signatories of the Millennium Development Goals (MDGs) and OECD countries. This paper presents a conceptual balance about atypical employment, precarious employment, informal employments and bad quality employments approaches, which are then compared with the decent work approach. Finally, It concludes that decent work approach offers conceptual and analytical gains for labor market analysis, compared to others approaches. |
| Keywords: | trabajo decente, empleos atípicos, trabajos informales, trabajos precarios, calidad del empleo, calidad del trabajo e indicadores de Laeken. |
| Date: | 2013–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:col:000482:012676&r=hme |
| By: | M. Modica; A. Reggiani; P. Nijkamp |
| Abstract: | The regional economics and geography literature on urban population size has in recent years shown interesting conceptual and methodological contributions on the validity of Gibrat’s Law and Zipf’s Law. Despite distinct modeling features, they express similar fundamental characteristics in an equilibrium situation. Zipf’s law is formalized in a static form, while its associated dynamic process is articulated by Gibrat’s Law. Thus, it is likely that both Zipf’s Law and Gibrat’s Law share a common root. Unfortunately, empirical investigations on the direct relationship between Gibrat’s Law and Zipf’s Law are rather rare and not conclusive. The present paper aims to answer the question whether (a generalisation of) Gibrat’s Law allows us to infer Zipf’s Law, and vice versa? In our conceptual and applied framework, particular attention will be paid to the role of the mean and the variance of city population as key indicators for assessing the (non-) validity of the generalised Gibrat’s Law. Our empirical experiments are based on a comparative analysis between the dynamics of the urban population of four countries with entirely mutually contrasting spatial-economic and geographic characteristics: Botswana, Germany, Hungary and Luxembourg. We arrive at the following results: if (i) the mean is independent of city size (first necessary condition of Gibrat’s law) and (ii) the coefficient of the rank-size rule/Zipf’s Law is different from one, then the variance is dependent on city size. |
| JEL: | C46 D30 O40 R11 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp1008&r=hme |
| By: | Edith Archambault (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS) |
| Abstract: | L'économie sociale et solidaire a longtemps été totalement absente de la statistique officielle qui peut être vue comme une forme de reconnaissance sociale. Cependant depuis 2005, l'INSEE publie chaque année des tableaux harmonisés de l'économie sociale et solidaire sur un périmètre discuté avec le Conseil National des Chambres Régionales de l'Economie Sociale (CNCRES). Sur ce périmètre, antérieur à la loi ESS, on peut mesurer le poids de l'ESS et de ses composantes. Quel que soit le critère retenu, les associations du secteur médico-social, c'est à peu près la moitié de l'économie sociale et solidaire. Il n'est pas sûr que ces acteurs majeurs de l'ESS soient bien représentés dans les institutions faîtières prévues par la loi du 31 juillet 2014 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01138833&r=hme |
| By: | Nadir Altinok; Abdurrahman Aydemir |
| Abstract: | The gender gap in education against females becomes smaller as the level of development increases and turns in their favor in developed countries. Through analysis of regional variation in the gender gap within Turkey, which displays a similar pattern to the crosscountry pattern, this paper studies the factors that lead to the emergence of a gender gap against females. The data for student achievement and aspirations for further education during compulsory school show that females are just as well prepared and motivated for further education as their male counterparts across regions with very different levels of development. Despite this fact, large gaps arise in high school registration and completion in less developed regions, but not in developed ones. We find that larger sibship size is the main driver of gender gaps in less developed regions. While social norms have a negative influence on female education beyond compulsory school, they play a relatively small role in the emergence of gender gaps. These results are consistent with the fact that resource-constrained families give priority to males for further education, leading to the emergence of education gender gaps. |
| Keywords: | gender gap, education, achievement, social norms. |
| JEL: | I2 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2015-13&r=hme |
| By: | Pierrick Dechaux (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS) |
| Abstract: | This article analyzes Katona's theory of expectations and compares it to that of Keynes and Hicks. It discusses the implicit and explicit debates on the introduction of psychology in economic theory. The aim of this paper is twofold: define Katona's thought and examine the impact of this work on the debate on expectations in macroeconomics. This paper shows that Katona is the only author, to our knowledge, who develops both an empirical and theoretical research program on expectations that borrows from the epistemology of Keynes. While rediscovering Katona's work, this paper contributes to highlight the forgotten methodology that initiated the construction of confidence (or sentiment) indexes. It also discusses the implicit and explicit debates on the introduction of psychology in economic theory. |
| Abstract: | Cet article étudie la théorie des anticipations de Katona et la compare à celle de Keynes et de Hicks. Il poursuit deux objectifs : définir la pensée de Katona et examiner son impact dans le débat sur les anticipations en macroéconomie. Ce papier met en évidence que Katona est le seul auteur, à notre connaissance, à développer un programme à la fois empirique et théorique sur les anticipations qui empreinte à l'épistémologie de Keynes. En s'intéressant aux travaux peu étudiés de Katona, cet article remet en avant la méthodologie à l'origine de la construction des indicateurs de confiance. Il discute aussi les débats implicites et explicites sur l'introduction de la psychologie en théorie économique. |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01159206&r=hme |
| By: | John T. Addison; Pedro Portugal; Hugo Vilares |
| Abstract: | This paper provides the first definitive estimates of union density in Portugal, 2010-2012, using a unique dataset. The determinants of union density at firm level are first modeled. Next, estimatesof the union wage gap are provided for different ranges of union density. Since these estimates fully reflect the reality of an industrial relations system in which collective agreements areextended to nonunion workers and firms, the final issue examined is contract coverage. The pronounced reduction in the number of industry-wide agreements and extension ordinances inrecent years has been uncritically equated with a fall in coverage. However, the authors show that the number of workers covered by new and existing agreements has remained largelyunaffected by economic crisis. The reduced frequency of new agreements and extensions is instead attributed to downward nominal wage rigidity in deflationary times, rather than (as yet)the expression of a crisis in collective bargaining. |
| JEL: | J31 J52 J53 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ptu:wpaper:w201506&r=hme |
| By: | Corinne Perraudin (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS); Héloïse Petit (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS, CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé); Nadine Thevenot (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS); Bruno Tinel (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS); Julie Valentin (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS) |
| Abstract: | The goal of this research is to analyse how the power relationship conveyed by subcontracting relations reflects in labour relations. By definition, subcontracting relations apply to situations where the principal contractor plans and conducts the subcontractors' activity and controls the sale of the fragmented product. Accordingly, subcontracting relations are part of power relations between firms which are understood here as the ability to transfer onto other firms their own external constraints (the principal contractor perspective), and in return the dependency of these subcontractors to external directives (subcontractors perspective). Power relations can also be highlighted through the nature of the subcontracted activity: principal versus secondary activities of the contractor. Based on the French survey Reponse matched with the administrative database on firms and workers (DADS) 2008-2010, this paper provides an overview of the subcontracting relations in France for all establishments of 11 and more employees in the private sector (excluding agricultural sector). The effects of these inter-firm relations on the main features of labour relations are examined: earnings, labour organisation and industrial relations. |
| Abstract: | L'objectif de cette recherche est d'analyser les effets des rapports de force entre entreprises inhérents aux relations de sous-traitance sur les relations de travail dans les entreprises. Par définition, le recours à la sous-traitance conduit en effet les donneurs d'ordres à planifier l'activité des sous-traitants et à contrôler la vente de leurs produits fragmentés. Dès lors, les relations de sous-traitance s'inscrivent dans des rapports de force entre entreprises, que l'on appréhende ici par la capacité de répercuter sur l'extérieur les contraintes subies (perspective des donneurs d'ordres) ou, à l'inverse, la dépendance aux injonctions extérieures (perspective des preneurs d'ordres). Les rapports de force sont également appréhendés par la nature de l'activité sous-traitée, selon qu'elle relève au moins en partie de l'activité principale ou qu'elle ne concerne que des activités secondaires. A partir des données de l'enquête REPONSE 2010-2011 appariées aux données DADS 2008-2010, cette recherche présente un état des lieux des relations de sous-traitance en France, puis analyse les conséquences de ces relations de sous-traitance sur plusieurs dimensions de la relation de travail pour les établissements de 11 salariés et plus du secteur marchand non agricole : les rémunérations, l'organisation du travail et de la production, et enfin les relations professionnelles. |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-01149601&r=hme |
| By: | Sabien Dobbelaere (Faculty of Economics and Business Administration, VU University Amsterdam, the Netherlands); Jacques Mairesse (CREST (ParisTech-ENSAE), France, and Maastricht University, the Netherlands) |
| Abstract: | Empirical labor economists have resorted to estimating the responsiveness of workers' wages on firms' ability to pay to assess the extent to which employers share rents with their employees. This paper compares this labor economics approach with two other approaches that rely on standard micro production data only: the productivity approach for which estimates of the output elasticities of labor and materials and data on the respective revenue shares are needed and the accounting approach which boils down to directly computing the extent of rent sharing from firm accounting information. Using matched employer-employee data on 60,294 employees working in 9,849 firms over the period 1984-2001 in France, we quantify industry differences in rent-sharing parameters derived from the three approaches. We find a median absolute extent of rent sharing of about 0.30 using either the productivity or the accounting approach. Only exploiting firm-level information brings this median rent-sharing parameter down to 0.16 using the labor economics approach. Controlling for unobserved worker ability further reduces the median absolute extent of rent sharing to 0.08. Our analysis makes clear that the three different approaches face important trade-offs. Hence, empirical economists interested in establishing that profits are shared should select the appropriate approach based on the particular research question and on the data at hand. |
| Keywords: | Rent sharing; wage equation; production function; matched employer-employee data |
| JEL: | C23 D21 J31 J51 |
| Date: | 2015–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20150068&r=hme |
| By: | Pascal Seppecher (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS - UNS - Université Nice Sophia Antipolis, CEPN - Centre d'Economie de l'Université Paris Nord - Université Paris 13 - Université Sorbonne Paris Cité (USPC) - CNRS); Isabelle Salle (CeNDEF - Center for Nonlinear Dynamics in Economics and Finance - Universiteit van Amsterdam, GREThA - Groupe de Recherche en Economie Théorique et Appliquée - CNRS - Université Montesquieu - Bordeaux 4) |
| Abstract: | Macroeconomic dynamics are characterized by alternating patterns of periods of relative stability and large swings. Standard micro-founded macro-economic models account for these patterns through exogenous and persistent shocks. In this paper, we develop a fully decentralized and micro-founded macro-economic agent-based model, augmented with an opinion model, which produces endogenous waves of pessimism and optimism that feed back into firms' leverage and households' precautionary saving behaviour. A major emergent property of our model is precisely the complex successions of stable and unstable macro-economic regimes. The model is further able to account for a wide spectrum of macro-and micro empirical regularities. Within this framework, we analyse a series of macro-economic phenomena of key relevance in the current macro-economic debate, especially the occurrence of deleveraging crises and Fisherian debt-deflation recessions. Our analysis suggests that the relative dynamics of prices and wages and the resulting income distribution along a deflation-ary path are critical determinants of the severity of the recession, and the chances of recovery. |
| Date: | 2014–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cepnwp:hal-01110642&r=hme |
| By: | Tabet Khayat, Marie-Christine |
| Abstract: | This thesis empirically examines whether the neoclassical economic model provides an adequate framework to analyse a couple’s labour supply behaviour in Britain using recent data from the British Household Panel Survey. The thesis comprises three empirical chapters. The first chapter uses the instrumental variable (IV) estimation procedure to model the hours of work of married couples. This approach allows us to test whether some of the assumptions of the neoclassical model (e.g., income pooling and Slutsky properties) are satisfied by the data. In addition, further variables that have been identified as distribution factors in the literature are introduced to the empirical model to assess whether they play a role in explaining a couple’s hours of work. The first chapter only considers couples in which both spouses work. In the second chapter, the sample is amended to include all couples (i.e., those that work and those that do not) and the analysis conducted models a couple’s labour market participation decisions rather than their hours of work. After testing for income pooling and the impact of distribution factors, a further variable, the wife’s mother-in-law work status when the male spouse was aged 14, is introduced into the model. This is done to determine the effect of 'cultural' variables on labour market decisions. In the last chapter, this issue is explored further by explicitly modelling attitudes to a woman’s role in the labour market. This approach uses a bivariate ordered probit model given the ordinal nature of responses to the attitudinal questions and again restricts the analysis to couples only. Finally, gender-role attitudes are introduced to the labour supply framework used in the second chapter in order to evaluate whether beliefs regarding women’s role impact on a couple’s labour market decisions. |
| URL: | http://d.repec.org/n?u=RePEc:sus:susphd:0110&r=hme |
| By: | Ute Filipiak (Georg-August-University Göttingen); Yabibal M. Walle (Georg-August-University Göttingen) |
| Abstract: | This paper empirically investigates the role of nurture for the frequently reported differences in financial knowledge between women and men and uses a quasi-experimental framework comparing individuals who live in a matrilineal with those in a patriarchal environment in India. The results of our empirical analyses show that women, on average, are less likely to know about different financial instruments and practices than men. In contrast, no differences in financial knowledge between women and men exist in the matrilineal cultural environment. Matrilineal women are also more financially literate than women who live in patriarchal regions. Education, English language skills and the use of different information sources like TV and radio explain a large part of these differences in financial knowledge among women. Although considering a number of important variables, the results of a Blinder-Oaxaca decomposition show that a sizable portion of the differences in financial knowledge remains unexplained, what could be explained by nurture. |
| Keywords: | Gender and financial literacy; matrilineal and patriarchal societies; Blinder-Oaxaca decomposition |
| JEL: | O1 I3 Z1 |
| Date: | 2015–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:got:gotcrc:176&r=hme |
| By: | Alessandro Tavoni; Simon Levin |
| Abstract: | Sustainably managing coupled ecological–economic systems requires not only an understanding of the environmental factors that affect them, but also knowledge of the interactions and feedback cycles that operate between resource dynamics and activities attributable to human intervention. The socioeconomic dynamics, in turn, call for an investigation of the behavioural drivers behind human action. We argue that a multidisciplinary approach is needed in order to tackle the increasingly pressing and intertwined environmental challenges faced by modern societies. Academic contributions to climate change policy have been constrained by methodological and terminological differences, so we discuss how programmes aimed at cross-disciplinary education and involvement in governance may help to unlock scholars' potential to propose new solutions. |
| JEL: | N0 |
| Date: | 2014–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:60823&r=hme |
| By: | Luca Zamparelli (Sapienza, University of Rome) |
| Abstract: | This paper examines the evolution of wealth distribution between workers and capitalists. It shows that under competitive conditions, and when factors elasticity of substitution is high enough to ensure endogenous growth, capitalists' share of total wealth asymptotically tends to one if they have a higher propensity to save than workers. It is also shown that a tax on capital income shifts wealth distribution in workers' favor and makes any level of wealth concentration feasible. |
| Keywords: | Wealth distribution, elasticity of substitution, Pasinetti two-class equilibrium, Piketty |
| JEL: | E12 E13 E25 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:saq:wpaper:01/15&r=hme |
| By: | Pierre-Alain Pionnier; Emmanuelle Guidetti |
| Abstract: | This article gives methodological guidance on how best to compare the share of profits in value-added across countries using national accounts. Such comparisons are often based on accounts for institutional sectors such as non-financial corporations. It turns out that these are less internationally comparable than is usually assumed. The main issue is the allocation of certain types of self-employed workers to the corporations’ sector of some countries, most notably Germany and Italy. The consequence is that the measured gross operating surplus of corporations is overstated and has to be adjusted for international comparisons. If this is not feasible, it is preferable to rely on industry accounts, focus on a subset of industries and impute a labour compensation to self-employed workers for international comparisons. Profit shares in France, Germany, Italy and the United States are then much more similar than what the accounts for non-financial corporations suggest. The claim of a global increase in the profit share in the last decades is at best debatable for Germany and not backed with the evidence presented in this paper for France and Italy. It is only for the United States that we can confirm such an increase.<BR>Cet article décrit d’un point du vue méthodologique comment effectuer des comparaisons internationales du partage de la valeur ajoutée en utilisant au mieux les données de comptabilité nationale. Ces comparaisons reposent souvent sur les comptes de secteurs institutionnels, en particulier les comptes des sociétés non-financières. Or, ceux-ci sont moins comparables d’un pays à l’autre que ce que l’on pense habituellement. Le problème principal est lié à la présence de travailleurs non-salariés dans les comptes des sociétés de certains pays, notamment l’Allemagne et l’Italie. Cela conduit dans ce cas à une surestimation de l’excédent brut d’exploitation et rend nécessaire un ajustement du compte des sociétés pour les comparaisons internationales. Lorsque cet ajustement s’avère impossible à réaliser, nous recommandons d’utiliser les comptes de branches, de restreindre l’analyse à certaines branches et d’imputer une rémunération du travail aux non-salariés pour les comparaisons internationales. Les taux de marge en France, en Allemagne, en Italie et aux États-Unis sont alors plus proches que ce que suggèrent les comptes des sociétés non-financières. L’hypothèse d’une hausse tendancielle du taux de profit sur les dernières décennies est au mieux contestable pour l’Allemagne et invalidée par les données pour la France et l’Italie. C’est uniquement pour les États-Unis que nous sommes en mesure de la confirmer. |
| Keywords: | self-employment, national accounts, profit share, distributed income of corporations, quasi-corporations, comptes nationaux, taux de marge, revenus distribués des sociétés, non-salariés, quasi-sociétés |
| JEL: | E01 E25 J30 |
| Date: | 2015–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stdaaa:2015/3-en&r=hme |
| By: | Catullo, Ermanno; Gallegati, Mauro; Palestrini, Antonio |
| Abstract: | Assessing systemic risk and defining macro-prudential policies aiming at reducing economic system vulnerability have been at the center of the economic debate of the last years. Credit networks play a crucial role in diffusing and amplifying local shocks, following the network-based financial accelerator approach (Delli Gatti et al., 2010; Battiston et al., 2012), we constructed an agent based model reproducing an artificial credit network populated by heterogeneous firms and banks. Calibrating the model on a sample of firms and banks quoted on Japanese stock-exchange mar- kets from 1980 to 2012, we try to define both early warning indicators of crises and policy precautionary measures based on the analysis of the endogenous dynamics of credit network connectivity. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fmpwps:39&r=hme |
| By: | Sebastien Broca (CEPN - Centre d'Economie de l'Université Paris Nord - Université Paris 13 - Université Sorbonne Paris Cité (USPC) - CNRS) |
| Abstract: | Cet article cherche à mettre en lien l'évolution de l'économie numérique au cours des années 2000 avec deux critiques qui lui ont été successivement adressées : la critique de la propriétarisation de l'information et la critique du digital labour. Je m'appuie pour cela sur le cadre théorique proposé par Luc Boltanski et Ève Chiapello, qui montrent dans Le nouvel esprit du capitalisme qu'il existe un jeu dialectique permanent, en vertu duquel ce qui nie le capitalisme à un moment donné devient ultérieurement une nouvelle ressource pour son affirmation symbolique et matérielle. L'hypothèse de l'article est ainsi que la critique de la propriétarisation de l'information, portée par les acteurs du logiciel libre, des Creative Commons ou de l'open access, a été largement incorporée par l'économie numérique, comme le montre le succès actuel de business models reposant moins sur l'appropriation privative des ressources informationnelles que sur la participation gracieuse des utilisateurs à la création de valeur. Cette « incorporation » a ouvert la voix à un deuxième type de critique, celle du digital labour, qui ne porte plus sur les entraves à la circulation de l'information et du savoir, mais sur les formes de travail et les modalités de répartition de la valeur qui sont au cœur du (nouveau) capitalisme numérique. L'article analyse les ressorts (et certaines limites) de cette deuxième critique d'inspiration marxiste, qui substitue à un discours axé sur les libertés individuelles et le droit un discours centré sur le travail et les structures économiques. |
| Date: | 2015–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cepnwp:hal-01137521&r=hme |
| By: | Dietrich, Franz; List, Christian |
| Abstract: | We introduce a “reason-based” framework for explaining and predicting individual choices. It captures the idea that a decision-maker focuses on some but not all properties of the options and chooses an option whose motivationally salient properties he/she most prefers. Reason-based explanations allow us to distinguish between two kinds of context-dependent choice: the motivationally salient properties may (i) vary across choice contexts, and (ii) include not only “intrinsic” properties of the options, but also “context-related” properties. Our framework can accommodate boundedly rational and sophisticatedly rational choice. Since properties can be recombined in new ways, it also o↵ers resources for predicting choices in unobserved contexts. |
| Keywords: | Rational choice, reasons, context-dependence, bounded and sophisticated rationality, prediction of choice. |
| JEL: | B40 B49 B5 B50 C0 C00 C02 D0 D01 D03 D8 D80 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:64666&r=hme |
| By: | Ron Boschma; Koen Frenken |
| Abstract: | The chapter gives a brief overview of the most recent literature on Evolutionary Economic Geography (EEG). We describe how EEG has provided new and additional insights on a number of topics that belong to the core of the economic geography discipline: why do industries concentrate in space, how do clusters operate and evolve, how are innovation networks structured in space and how do they evolve over time, what types of agglomeration externalities induce urban and regional growth, how do regions diversify, and how do institutions and institutional change matter for the development of new growth paths in regions. |
| Keywords: | Evolutionary Economic Geography, related variety, regional branching, proximity, path dependence, co-evolution, institutional change |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1518&r=hme |