nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2015‒08‒01
twelve papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. The 10th Royal Economic Society Women’s Committee Survey: The Gender Balance of Academic Economics in the UK By M. Mitka; K. Mumford; C. Sechel
  2. Valoración de Áreas Marinas Protegidas desde la perspectiva de los usuarios de recursos: conciliando enfoques cuantitativos individuales con enfoques cualitativos colectivos By Moreno-Sánchez, Rocio del Pilar; Maldonado, Jorge Higinio; Gutiérrez, Camilo Andrés; Rubio, Melissa
  3. The Failure of Neoclassical Economics Modelling and Human Behavioural Ecology to Satisfactorily Explain the Evolution of Neolithic Society By Tisdell, Clem; Svizzero, Serge
  4. On Joan Robinson’s Abandonment of Exploitation By Daniyal Khan
  5. Analyzing the impact of financial sector growth on female empowerment: A focus on the United States of America By Tariq, Anam; Masih, Mansur
  6. The Seafood Sector in Ireland: Economic Impacts of Seafood Production Growth Targets By Vega, Amaya; Miller, Ana Corina; O'Donoghue, Cathal
  7. Embedding an Individual-Based Model of Wildlife Disturbance in an Agent-Based Model of Outdoor Recreation By Atallah, Shady S.; Cohen, Alexander; Zollner, Patrick
  8. Inequality and Wealth Creation in Ancient History: Malthus' Theory Reconsidered By Svizzero, Serge; Tisdell, Clem
  9. Follow the value added: bilateral gross export accounting By Alessandro Borin; Michele Mancini
  10. Relationship Banking, Shadow Banking, and the Economics of Depression By Bianco, Antonio
  11. Cooperative Strategy and Liquidation in the Bordeaux Wine Industry By Cadot, Julien; Alonso Ugaglia, Adeline
  12. Políticas de Inovação e Capacidades Estatais Comparadas: Brasil, China e Argentina By Ana Célia Castro

  1. By: M. Mitka; K. Mumford; C. Sechel
    Date: 2015–07
  2. By: Moreno-Sánchez, Rocio del Pilar; Maldonado, Jorge Higinio; Gutiérrez, Camilo Andrés; Rubio, Melissa
    Abstract: La valoración económica tradicional (VE) se ha constituido en una herramienta fundamental para apoyar el establecimiento de áreas marinas protegidas como la estrategia preferida para la conservación de los ecosistemas marinos y costeros y de los servicios que éstos proveen. Sin embargo, generalmente, estos ejercicios estiman los beneficios que la conservación genera a actores situados fuera de las mismas, quienes no hacen uso extractivo de los recursos como su principal fuente de alimento e ingresos, y han ignorado los valores que las comunidades locales otorgan a los ecosistemas que las rodean, o los costos de oportunidad que las comunidades locales, usuarias de recursos, asumen cuando deben enfrentar las restricciones que imponen las AMPs en el acceso a los recursos. Adicionalmente, se ha cuestionado la pertinencia de realizar VE en contextos locales porque su implementación aún enfrenta desafíos prácticos, metodológicos, éticos y políticos. Siguiendo las recomendaciones de The Economics of Ecosystems and Biodiversity (TEEB), este estudio propone una metodología de valoración económica que es innovadora, porque combina herramientas cualitativas de valoración que permiten capturar la importancia relativa que los usuarios locales otorgan a los ecosistemas, y a los diversos servicios que proveen, con herramientas cuantitativas estándares de la VE, experimentos de elección, que permiten capturar la disponibilidad a aceptar restricciones en el uso de recursos impuestas por el establecimiento de AMPs. La metodología propuesta incorpora enfoques de valoración colectiva y deliberación grupal, en donde la construcción participativa de los escenarios de base y de cambio permite un mejor entendimiento, por parte de los usuarios de recursos, de la situación hipotética a valorar.
    Keywords: Valoración participativa, comunidades locales, experimentos de elección, métodos de asignación de puntajes, Colombia., Environmental Economics and Policy, Land Economics/Use, C25, C81, Q01, Q22, Q51, Q56,
    Date: 2013–11–12
  3. By: Tisdell, Clem; Svizzero, Serge
    Abstract: Examines two parallel approaches, one in economics and the other in anthropology, intended to explain the behaviours of Neolithic societies, particularly their transit from foraging to agriculture. Both approaches assume that human behaviour is a response to rational human decisions to optimise. The application of microeconomic theory by a Danish professor to explain the transition of foragers to agriculture and the corresponding complementary views of some American anthropologists about this transition are outlined and discussed. While these approaches provide valuable insights into the evolution of Neolithic societies, it is also important to be aware of their limitations, several of which are identified in this article. Such approaches are unlikely to provide a general theory of the evolution of Neolithic societies. Because of the diversity of human behaviours, a range of theories are required.
    Keywords: Economic evolution, economic optimisation, human behavioural ecology, hunter-gatherers, Neolithic Revolution, satisficing behaviour, Research and Development/Tech Change/Emerging Technologies, D01, 010, P00, Q10,
    Date: 2015–02–02
  4. By: Daniyal Khan (Department of Economics, New School for Social Research)
    Abstract: After discussing and analyzing exploitation as an analytical category in The Economics of Imperfection Competition and An Essay on Marxian Economics, Joan Robinson hardly mentioned it in The Accumulation of Capital. Despite analyzing her contributions at length, the literature has completely failed to recognize this curious turn, let alone explain it. This paper explains the abandonment of exploitation by arguing that it was one way to resolve the tension between the inherently normative aspects of the concept and her increasing discomfort with conflation of ideology and analysis across the first two books mentioned above.
    Keywords: Joan Robinson, exploitation, theory of value, ideology
    JEL: B50 B22 B31
    Date: 2015–07
  5. By: Tariq, Anam; Masih, Mansur
    Abstract: It is believed that institutional economics takes into account factors that are often neglected in neoclassical economics. Of these is the role of cultural expectations, societal norms and gender-related expectations. To test whether gender does play a significant role in impacting an individual’s well-being is our broad objective. On a more specific level, we want to test the effect of the presence and penetration of the financial industry, measured by deposit accounts and also represented by GDP growth in this paper, on female empowerment, measured by female labour workforce participation. We also use unemployment figures to check if it is affected in a similar fashion to our main dependent variable and if not, why there is a difference of impact between overall employment and that which is specific to the female gender only. We assume that active workforce participation represents an individual’s level of financial independence and consequently, one’s level of empowerment within the society. We use the Auto Regressive Distributive Lag(ARDL) technique to investigate an issue which is often studied based on a cross-country analysis rather than on a time-series scale. We also chose to make the United States of America our focus, as we would like to test if the impact on a developed country is similar to that of developing countries. Amongst our major findings are the lack of impact formal financial institutions seem to have on female participation in an economy, while we notice a significant level of correlation between unemployment, female participation and GDP.
    Keywords: Financial sector, female empowerment, ARDL
    JEL: C22 C58 E44
    Date: 2015–06–20
  6. By: Vega, Amaya; Miller, Ana Corina; O'Donoghue, Cathal
    Abstract: This paper examines the potential economic impact of the Irish government strategy for the development of the seafood sector in Ireland, Food Harvest 2020 (FH2020). The seafood industry accounts for a large proportion of income and employment in peripheral coastal areas. Many of these regions are predominantly rural and they are largely dependent on the primary fisheries sector. Moreover, the services and retail businesses in these areas are heavily dependent on direct spending from the fisheries,aquaculture and seafood processing sectors. A social accounting matrix (SAM) approach with (1) set to zero purchase coefficients for all directly impacted industries and (2) changes in output converted to final demand shocks is used to calculate the economic and employment impact on the rest of the economy from an increase in the output in the fisheries, aquaculture and seafood processing sectors in Ireland. The results suggest fisheries sectors have strong links with the rest of the economy hence an important economic impact from a policy perspective.
    Keywords: Economic impact, social accounting matrix, Irish seafood sector, employment multiplier, Environmental Economics and Policy,
    Date: 2014–01
  7. By: Atallah, Shady S.; Cohen, Alexander; Zollner, Patrick
    Keywords: Agent-Based Model, Coupled Natural Human Systems, Ecological Economics, Outdoor Recreation, Wildlife Disturbance., Resource /Energy Economics and Policy, C63, Q26, Q57,
    Date: 2015
  8. By: Svizzero, Serge; Tisdell, Clem
    Abstract: The main purpose of this paper is to propose the hypothesis that inequality was essential for the sustainability and ‘development’ of early agriculturally based societies that developed in Prehistory and Ancient History. This was so for varied reasons: there was a need for some members of societies - the dominant class also called the elite - to escape from the Malthusian trap. In most cases, agriculture produced a bigger economic surplus eventually. Managerial problems – such as the ones associated with storage, the division of labor, irrigation, trade –being part of the consequences of the Neolithic revolution, created pressures to develop more centralized political organizations, a process which led later to the formation of the early states. This process allowed the appearance of powerful local chiefs who changed the nature of their original communities with new forms of social organization, in which one individual and his enlarged family - transformed into a ruling elite - received the benefits of the labor of a large number of serfs belonging to less-favored communities in neighboring areas. Although the surplus appropriated by the elite was used in specific ways – consumption, investments and expenditures on armed forces - it increased the power and wealth of these societies, albeit a solution involving unequally distributed wealth. While this is not the only factor in the growing dominance of agriculturally based societies, it is one of main ones as is evidenced by considering six early civilizations resulting from the Neolithic revolution. This result involves an important modification of Malthus’ theory. However, inequality - though necessary - was not a sufficient condition for the sustainability and economic development of these early societies.
    Keywords: economic surplus, elite dominance, early civilizations, inequality, Malthus, property rights, wealth., Community/Rural/Urban Development, Crop Production/Industries, Land Economics/Use, Research and Development/Tech Change/Emerging Technologies, N1, N3, E02, O30, P14,
    Date: 2014–09–01
  9. By: Alessandro Borin (Bank of Italy); Michele Mancini (Bank of Italy)
    Abstract: The diffusion of international production networks has challenged the capability of traditional trade statistics to provide an adequate representation of supply and demand linkages among the economies. To address this issue, new statistical tools (the Inter-Country Input-Output tables) and new analytical frameworks have been developed. Koopman, Wang and Wei propose an accounting methodology to decompose a country’s total gross exports by source and final destination of their embedded value added. We develop this approach further by deriving a fully consistent counterpart for bilateral trade flows, refining the original framework. Along with other contributions, our methodology completes the bridge between traditional trade statistics and the systems of national accounts and provides new tools for investigating global value chains. Here we present two empirical applications of two different versions of our decomposition of bilateral trade flows: one explores the forward linkages of Italian exports; the second derives a measure of the share of value-chain-related trade and assesses how its evolution since the mid-1990s has affected the relationship between world trade and income.
    Keywords: global value chains, input-output tables, trade in value added, trade elasticity
    JEL: F1 F14 F15
    Date: 2015–07
  10. By: Bianco, Antonio
    Abstract: A stock-flow consistent and simple methodological account of the influence of financial markets over the real economy is here presented. Based on an original interpretation of the basic heterogeneity in relationship and shadow banking operations, often referred to as OTH vs. OTD banking models, this methodological article develops an accounting model that emphasizes the interdependencies in entrepreneurs’ variations in animal spirits, financial institutions’ liquidity risk management, and households’ effective demand. The model captures the idea that fluctuations in the composition of property incomes lead to fluctuations in borrowing for non-financial purposes that, in their turn, drive fluctuations in spending. The model is so devised as to allow a tidy comparison in the role played by relationship or shadow banking over the dynamism of a depressed economy.
    Keywords: depression, animal spirits, liquidity preference, effective demand, post-Keynesian, endogenous money, securitization, relationship vs. shadow banking, originate-to-hold vs. originate-to-distribute
    JEL: B52 E12 E20 E44 M40
    Date: 2015–05
  11. By: Cadot, Julien; Alonso Ugaglia, Adeline
    Abstract: Cross and Buccola (2004) established that if the lenders of cooperatives are not in position to assess the “right” price to be paid for the raw-material delivered by cooperative members, these latter may push for a cash transfer which may deteriorate the financial position of the cooperative. This form of liquidation can be an exit way for cooperatives which, at the turning point of maturity, do not seek strategic alliances to increase their market power, or do not shift to a new model, according to the lifecycle approach of Cook (1995). In this research, we test this hypothesis for cooperatives of the Bordeaux wine industry. We run two regression which aim at characterizing the relationship between leverage and cash transfer to cooperative members according to the downstream strategy of cooperatives. Our results confirm our main hypothesis. The cooperatives which stay in the traditional form are prone to liquidation: the cash transfer to producers implies a higher leverage which implies a financial distress. The financial behavior of cooperatives forming union and of those which have opted for vertical integration is radically different.
    Keywords: cooperative finance, liquidation, lifecycle approach, wine industry, cooperative union, vertical integration, Agribusiness, Financial Economics, Industrial Organization, G320, D230, Q130,
    Date: 2015–05–27
  12. By: Ana Célia Castro
    Abstract: A capacidade estatal de formular, conduzir, implementar e, em alguns casos, avaliar as políticas de ciência, tecnologia e inovação é o tema deste trabalho. O objetivo é comparar as capacidades estatais e políticas de Brasil, China e Argentina, para demarcar vantagens e desvantagens comparativas institucionais. Uma das principais conclusões do estudo é que a existência de um consenso estruturado sobre quais setores devem ser incentivados pelo Estado empreendedor, onde se encontra a fronteira tecnológica nestes setores e quais países chegaram a ela depende: i) da existência de uma retaguarda de instituições capazes de realizar estudos prospectivos e retrospectivos efetivamente considerados no processo de tomada de decisões; ii) do exercício contínuo de prospectiva tecnológica, sujeito a processos periódicos de revisão; iii) da capacidade de ter em conta os conflitos de interesse, mas igualmente de neutralizá-los, quando da construção do consenso estruturado; e, finalmente, iv) de um sistema financeiro de inovação enraizado, além de efetivo. Duas condições parecem essenciais para a coordenação do processo de modernização dos países: visões de futuro estruturadas e capacidades estatais para implementá-las. Não se trata de um contínuo de habilidades ou competências, mas de uma variedade de processos de tomada de decisão sobre estratégias de longo prazo, e de coordenação na elaboração e na implementação de políticas tecnológicas. The state capacity to formulate, supervise, and implement (and in some cases to evaluate) science, technology, and innovation policy is the subject of the present work. The goal is to compare state and policy capacity in Brazil, China, and Argentina to point out comparative institutional advantages and disadvantages. One of the study’s main conclusions is the existence of a structured consensus on what sectors the enterprising state should incentivize and promote, on where the frontier is located, and whether these countries are at the frontier of innovation depends on: the existence of a rearguard of institutions capable of undertaking prospective (and retrospective) studies that are effectively considered in the decision-making process; the continuous exercise of foresight or technological foresight, subject to processes of periodic revision; the capacity to take account of conflicts of interest, but equally to neutralize them when building structured consensus; and finally to count on a well-established but effective financial innovation system. Two conditions seem important as far as the governance of the modernization process is concerned: visions of the future and state capacities to implement them. What is at issue is not a continuous set of abilities or expertise but a variety of decision-making processes on long-term strategy and coordination in the development and implementation of technology policies.
    Date: 2015–07

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