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on Heterodox Microeconomics |
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Issue of 2015‒10‒17
seventeen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | KUROSE, Kazuhiro |
| Abstract: | Although structural analysis was one of the central subjects in economics, its importance fell by the wayside, especially after aggregate macroeconomic growth models became popular in the 20th century. However, structural analysis has been revived recently and a new research agenda has emerged: to examine whether structural change can be reconciled with Kaldor's facts. This is an interesting agenda from both the theoretical and empirical point of view. Since Kaldor's facts are thought of as a sort of balanced growth path, this concept is extended so as to reconcile structural change with Kaldor's facts. In this study, we review the multi-sectoral models in which structural change can be reconciled with Kaldor's facts. We demonstrate that the common feature of all reviewed multi-sectoral models of structural change is that they are regarded as natural extensions of the one-sector model of growth and then somehow transformed into the one-sector model. However, we assert that it is not an adequate treatment of multi-sectoral models when structural change is focused. The transformation of multi-sectoral models into the one-sector model assumes a homogeneous capital but capital consists of heterogeneous commodities in modern capitalist economies. It reminds us of the lessen of the Cambridge capital controversies that the properties obtained by the one-sector model do not necessarily hold in multi-sectoral models when capital consists of heterogeneous commodities and the choice of techniques is allowed. From the empirical point of view, it is one of the important characteristics that the change in the composition of physical capital is systematically related to income growth. However, the models in which only homogeneous capital is included cannot focus on the characteristic. Whether or not structural change can be reconciled with Kaldor's facts in the models with heterogeneous capital is still an open question. |
| Keywords: | structural change, Kaldor's facts, balanced growth path, Cambridge capital controversies, heterogeneous capital |
| JEL: | B24 E12 O14 O41 |
| Date: | 2015–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:hit:ccesdp:59&r=all |
| By: | Agnès Festré (GREDEG CNRS; University of Nice Sophia Antipolis); Pierre Garrouste (GREDEG CNRS; University of Nice Sophia Antipolis) |
| Keywords: | Michael Polanyi, Hayek, Keynes, spontaneous order, State intervention, liberalism, evolutionism |
| JEL: | B25 B31 B41 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2015-36&r=all |
| By: | Elsner, Wolfram; Schwardt, Henning |
| Abstract: | The increasing complexity of the environment of firms, of strategic interaction, and emergent informal institutional network cooperation, seems to outreach the traditional Coase-Williamson transaction-cost framework with its market-hierarchy dichotomy. We propose to take the complexity of nowadays’ firm ecologies more serious and integrate an institutional dimension to enhance the analysis of real-world organizational forms and the theory of the firm. This institutional dimension is conceptualized as an “OIE” (Veblenian) “institutional dichotomy” that ranges between “instrumental” cooperative networking and “ceremonial encapsulation” (lock-in). Thus, a more comprehensive two-dimensional, particularly triangular, organizational space is drafted, which can better map the numerous and diverse forms of production and innovation systems, including their emergence as spatial clusters and corporate networks. The additional dimension integrates institutionalized network cooperation as “instrumental problem-solving”, vs. power and status seeking (by both large hierarchies and fiercely rivalling market participants) as “ceremonial dominance”. In addition to ideal market and hierarchy, it provides the ideal solution of institutionalized network cooperation, learned in recurrent social-dilemma problems, as a third vanishing point and corner. The resulting Organizational Triangle is considered a heuristic for inter-firm organizational research. As a check of its usefulness, this device is applied to recent developments in the global corporate economy. |
| Keywords: | Theory of the firm; direct interdependence/strategic interaction; institutional emergence/institutionalized cooperation; Coase/Williamson; embeddedness; Veblenian institutional dichotomy; instrumental/ceremonial institutional aspects; spatial clusters/firm networks; open innovation; organizational triangle |
| JEL: | B52 D02 D23 D85 L14 |
| Date: | 2015–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67193&r=all |
| By: | Agnès Festré (GREDEG CNRS; University of Nice Sophia Antipolis, France); Pierre Garrouste (GREDEG CNRS; University of Nice Sophia Antipolis, France) |
| Abstract: | In this contribution, we provide an interpretation of Friedrich von Wieser’s contribution to economics, which pays tribute to the originality of his work, and particularly his view of how institutions interfere with individual behavior. This interaction takes place within a disequilibrium framework where social influences such as power or social class, and psychological factors such as force of habit or herd behavior, are the product of human action but also constitute constraints on further action. The section 1 stresses the institutionalist background of Wieser’s economics. We concentrate on Wieser’s general method – which we assimilate to an example of Joseph Agassi’s (1975) institutional individualism – and his analysis of the emergence and evolution of institutions via the dynamics of leaders and masses. In the section 2, we reinforce and illustrate the ‘institutionalist’ stamp of Wieser’s economics by focusing on his work on monetary economics (Wieser 1904, 1909a, 1909b, 1927b) and his analysis of the emergence of money, based on our reading of Wieser’s Social Economics (Wieser [1927a] 1967) and The Law of Power (Wieser [1926] 1983). |
| Keywords: | Wieser, emergence and evolution of institutions, money, economic sociology |
| JEL: | B15 B31 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2015-37&r=all |
| By: | Estrada, Fernando |
| Abstract: | The theoretical economy is diverse and contains frameworks and models of different research. This article proposes a body of recognized theories and methods, not only for the so-called mainstream, but more heterodox approaches. In addition to paying attention to currents and authors who have analyzed the economy from an epistemological point of view. A selective picture that also corresponds to the research conducted by the author and his exploration of methods of integrated social science analysis is offered. In short, frameworks and contents of the article are mainly the nature of a research report. |
| Keywords: | Methods, Models, Paradigms, Microeconomics, Macroeconomics |
| JEL: | B00 B1 B15 B4 B41 B5 B52 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67129&r=all |
| By: | malikane, christopher |
| Abstract: | This paper reviews Thomas Piketty's Capital in the Twenty-First Century. Piketty's Capital seeks to bring the issue of inequality back to the centre of social analysis and to encourage discussion about the evolution of wealth and inequality with a view to inform policy. The book uses data stretching as far back as the 1700's. The main thesis of the book is that capitalism automatically generates inequality and wealth concentration since the rate of return on capital always exceeds the growth rate of income. To resolve this problem, the book proposes a progressive tax on wealth and income. I show that Piketty's book is based on a misunderstanding of classical political economy, particularly Marx. Piketty's view of the development and phases of capitalism is inadequate. His tax proposals, though progressive, will not resolve the inequality problem. Lastly, his conclusion that modern economic growth made it possible to avoid the Marxist apocalypse is not borne out by his data. |
| Keywords: | Capital, inequality, wealth concentration, falling rate of profit. |
| JEL: | B12 B14 B16 B51 P1 P16 P26 |
| Date: | 2015–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67143&r=all |
| By: | Ghassan, Hassan B. |
| Abstract: | Islamic faith and the ethical dimensions of the individual and the community play a significant role in guiding economic behavior by connecting the worldly life to the hereafter. The Shariah-compliant faith and ethical values generate specific behavior that requires Halal earning, fairness in spending and Halal utility leading to materialistic satisfaction and metaphysic reward. To analyze the Muslim consumer utility, in addition to the Islamic economics heritage, we rely on the instruments and prevailing assumptions in economics. Shaibani’s (750-805 AD) analysis of earning/spending/utility is based on three successive layers of earning/spending/utility; namely, the imperative, recommended, and the permissible. In this paper, we firstly contribute to developing a measure of the overspending and underspending. Secondly, based on the social solidarity, we show that the marginal earning has an effect on the macro MPC and depends mostly on the first differences between the MPC of the lower and upper social groups. Thirdly, according to the social welfare function, the permissible marginal utility is related to the faith interaction driving to an efficient transfer of purchasing capabilities to the targeted group. The optimal faithful behavior of affluent group leads, in the worldly life, to an elasticity of marginal utility less than or equal to one. The belief holding produces a hidden support in the worldly life but also engenders hereafter rewards through a steady eternal utility function, which generates an optimum of the marginal utility with elasticity greater than one. |
| Keywords: | Belief, Faith, Ethics, Consumption spending, Halal utility, Halal earning, Shaibani, Fairness. |
| JEL: | A13 B41 D11 D6 H3 I3 K4 N45 P46 Z12 |
| Date: | 2015–09–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67141&r=all |
| By: | Lauren Larrouy (University of Nice Sophia Antipolis, France; GREDEG CNRS) |
| Abstract: | The present paper offers a methodological contribution on Schelling's insight into game theory drawing both on his proposition for a "reorientation of game theory" and his dynamic models of residential segregation. It aims to show how these respective works exhibit coherence in Schelling's thinking. It is often claimed that Schelling criticizes standard game theory without proposing any conceptual solution. To the contrary, I assert that the methodological constraints Schelling identifies in standard game theory support the proposition of a new type of modeling in the dynamic models of residential segregation: the first agent based modeling. I argue that the agent-based models provide a theoretic ground to formalize the methodological innovations proposed in his “reorientation of game theory.” To understand such a claim I stress the social ontology underlined in Schelling's conception of a "theory of interdependent decisions." |
| Keywords: | Schelling, ontology, game theory, residential segregation, agent-based models |
| JEL: | B41 B52 C72 D74 D81 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2015-38&r=all |
| By: | Katarzyna Byrka; Arkadiusz Jedrzejewski; Katarzyna Sznajd-Weron; Rafal Weron |
| Abstract: | Despite the very positive - as measured by market surveys - attitude towards eco-innovations and sustainability in general, the actual market penetration of green products and practices generally falls behind the expectations. In this paper we argue that considering difficulty of engagement, as used in the Campbell Paradigm, is of critical importance when modeling diffusion of eco-innovations. Such a notion of difficulty possesses three desired properties: (i) parsimony - it is represented by a single value, (ii) interpretability - it can be regarded as an estimator of the otherwise complex notion of behavioral cost, and (iii) applicability - it can be easily measured through market surveys. In an extensive simulation and analytical study involving empirically measured difficulty and an agent-based model spanned on different social network structures, we show that innovation adoption may exhibit abrupt changes in market penetration as a result of even small changes in difficulty. The latter may be of particular interest to policy makers who have to make strategic decisions when introducing socially - but not necessarily individually - desired products and practices, like dynamic or green electricity tariffs. |
| Keywords: | Green products and practices; Energy policy; Innovation diffusion; Difficulty; Social network; Agent-based model |
| JEL: | C63 O33 Q48 Q55 |
| Date: | 2015–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1510&r=all |
| By: | Dino Borie (GREDEG CNRS; University of Nice Sophia Antipolis); Pierre Garrouste (GREDEG CNRS; University of Nice Sophia Antipolis); Ismaël Rafaï (GREDEG CNRS; University of Nice Sophia Antipolis) |
| Abstract: | L'allocation de l'attention peut être quantifiée à travers deux dimensions complémentaires : (1) la quantité de ressources attentionnelles qu'alloue l'individu lors du processus de décision et (2) le niveau d'attention effective révélé par la qualité du processus de décision et de son output. Notre contribution vise à définir théoriquement une mesure et de proposer une méthode expérimentale capable de quantifier cette seconde dimension et d'analyser les effets de la complexité de l'information et du choix sur l'allocation de l'attention et de sélection de l'information. Nos résultats expérimentaux montrent que les individus sont effectivement moins attentifs lorsqu'il s'agit de lever l'incertitude et de sélectionner l'information, plutôt que lorsqu'ils doivent résoudre des calculs plus complexes. Nos résultats mettent cependant en évidence l'existence d'un arbitrage selon lequel les individus réduisent la quantité d'information consommée lorsque la complexité de celle-ci la rend plus coûteuse. Enfin, le processus d'allocation d'attention est bien soumis à un effet d'apprentissage dans le sens où au fil de l'expérience, les individus allouent leur attention de manière plus efficace et atteignent les mêmes niveaux d'attention effective tout en allouant moins d'attention. |
| Keywords: | Attention limitée, attention allouée, attention effective, saillance, rationalité limitée |
| JEL: | C91 D83 D03 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2015-35&r=all |
| By: | Betzelt, Sigrid |
| Abstract: | The paper presents new findings on a specific 'gendered' problem resulting from 'activation policies' and a certain group of unemployed which has been widely neglected so far in public and academic discourse although it is both quantitatively significant and reveals systematic failures of activation strategies: In contrast with claims of greater social inclusion through 'activation, it can be seen that currently nearly a quarter of a million people in Germany are registered as unemployed without any entitlement to unemployment benefits or any individual social protection like health care. These 'unemployed non-beneficiaries' (UNB), currently account for a quarter of those registered as unemployed within the statutes of the German Social Code Book III (SGB III). Their situation is problematic for two reasons: First, their significant number is evidence of a severe social security gap which has existed before the 'Hartz reforms' but has grown more acute by the new, stricter eligibility rules to unemployment benefits introduced with the reforms. This re-familisation of social security stands in contrast to the more precarious employment structures on the labour market on the one hand, and the more egalitarian gender norms of an individualised society on the other. Second, our recent research findings show that unemployed non-beneficiaries are practically even excluded from active employment promotion services of the Federal Employment Agency (Bundesagentur für Arbeit, BA), despite the fact that they have the same obligations to prove active job search and mostly are not able to find jobs by themselves. The German activation regime even systematically pushes them to de-register as unemployed (to 'improve' the labour market statistics). The paper argues that this can be explained by the business management principles of cost-efficiency introduced with the 'Hartz reforms' as the primary guideline for the Federal Employment Agency. Performance measurement tools which prioritize short-term job insertion and the cost-efficient allocation of the BA-budgets to the more 'marketable' groups of unemployed override social, labour market and political equality targets. This is detrimental for vulnerable groups like unemployed non-beneficiaries, and also contrary to the macro-economic goal of counteracting the reputed skill shortages. The paper is based both on secondary analyses of official statistics and own empirical panel data (GSOEP) and some qualitative findings, derived from own research projects funded by different sources. |
| Keywords: | labour market reforms,activation,managerialism,gender equality,social security,unemployment |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:572015&r=all |
| By: | Olga Alonso-Villar; Coral del Río |
| Abstract: | This paper investigates the occupational segregation of white women in the U.S. at a metropolitan area level. Our results show substantial variation across areas and suggest that the national scale does not reveal the real situation of white women. The proportion of white women who would have to shift occupations to achieve zero segregation ranges between 20% in some areas and 40% in others. The consequences that occupational segregation has in terms of earnings also vary dramatically within the country, which suggests that in dealing with labor inequalities, local authorities should play an active role. |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:vig:wpaper:1504&r=all |
| By: | Ledenyov, Dimitri O.; Ledenyov, Viktor O. |
| Abstract: | The present innovative research continues a series of scientific articles on a) the theory of the firm in the nonlinear dynamic financial and economic systems in the classic economics science, b) the information theory of the firm in the classic economics science, c) the quantum microeconomics theory in the quantum economics science, presenting the groundbreaking theoretical research results: 1) the quantum theory of firm in the frames of the quantum microeconomics theory in the quantum econophysics science is proposed; 2) the formulas (1, 2) to compute the firm’s discrete-time EBITDA (the firm’s value) changes at the different time moments are derived; 3) the formulas (3, 4) to calculate the distribution of a number of the firms’ excited business processes of certain value at the selected firm’s state in the economy of scale and scope are presented; 4) the notion on the wave function in the quantum econophysical time-dependent/time independent wave equations is introduced; 5) the formulas (5, 6) to predict the firm’s discrete-time EBITDA (the firm’s value) state changes in the national/global economies at the certain time moment, using the wave functions in the quantum econophysical time-dependent/time independent wave equations, are derived; 6) the quantum phenomena, including the possible weak/strong interactions between the firms in the national/global economies are described; 7) the comparative analysis between a big number of the classic theories of the firm and the quantum theory of the firm is completed, explaining the main characteristic differences and existing similarities; 8) the evolutionary shift from the classic theory of the firm to the quantum theory of the firm is described; 9) the perspectives on the application of the quantum theory of the firm with the aim to solve the various economic problems in the real- and speculative- sectors of economic markets are discussed. |
| Keywords: | theory of firm, quantum theory of firm, firm’s performance state prediction problem at certain time moment, wave function in the quantum econophysical time-dependent/time independent wave equations in quantum microeconomics theory in quantum econophysics science, wave function in Schrödinger quantum mechanical wave equation in quantum mechanics science, weak/strong interactions between firms, quantum econophysics, econometrics, nonlinear dynamic economic system, economy of scale and scope, quantum microeconomics, quantum economics. |
| JEL: | D0 D8 L2 L20 L29 M0 M00 O3 O30 O31 O33 O39 |
| Date: | 2015–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67162&r=all |
| By: | Pietri, Antoine |
| Abstract: | This paper deals with the debate between “property” and “possession”, hosted by the Journal of Institutional Economics since early 2015. According to Hodgson, economists conflate these two terms involving important consequences on the discernment of the analysis and on the general scope of the economics of property rights. In the same journal, Allen and Barzel only concede semantics significance to the Hodgson’s critics. We analyze the whys and wherefores of this debate and discuss its paradigmatic dimension. |
| Keywords: | Droits de propriété, Hodgson, Possession, Propriété. |
| JEL: | D23 K11 P14 |
| Date: | 2015–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67096&r=all |
| By: | Roger D. Congleton (West Virginia University, Department of Economics) |
| Abstract: | This article provides an overview of Mancur Olson’s Logic of Collective Action and its impact on Olson’s subsequent work. It also suggests that the implications of his simple, elegant, theory have not yet been fully worked out. To illustrate this point, the second half of the essay demonstrates that the number of privileged and latent groups and their costs in a given society are not entirely determined by economic factors or group size alone. Politics, technology, and culture also matter. |
| Keywords: | collective action |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:wvu:wpaper:15-23&r=all |
| By: | Marco Franco; Maurizio Benedetti; Massimo Folador; Roberto Manzi |
| Abstract: | Following the path taken with LIUC Paper nr. 275 last year, the present work aims to go deeply in the analysis of the origins of the social science called Civil Economics and the cultural background where it was generated in the mid of the 18th century. The economic model proposed by this School, born in the Naples’ area, was the outcome of a series of studies in the field of philosophy, politics and law lead by illuministic representatives like Vico and Filangieri. This cultural background allowed A. Genovesi to launch the first faculty of Economics in the world. Filangieri, in particular, proved the necessity of limiting the State intervention in economy and business organization to few laws directed to avoid unfair behaviors. Genovesi asserted the importance of values like mutual confidence, respectful relationships and ethical behavior to create the favorable background for individual and general development. Both of them recognized the relevance of the human being and its social behavior in the organization of Economic policies, in order to find out the best rules and ways of creating general well-being. Quite a big difference in respect of the prevailing role played by financial markets and globalization in today’s economy. In line with this “social” approach to Economics, the paper goes further in analyzing the relationship between economic development and individual or collective happiness and the importance of investing in human capital and highly qualified competences for a sustainable economic development. The study tried then to answer to the following question: can these theoretical assumptions and findings have a positive application to the present economic and business organization? We found out that some medium-large companies originally established in the center-south regions of Italy had a greater success when they moved their headquarters to the north. A meaningful example is represented by Pianoforte Holding, owner of well-known trademarks like Yamamay, Carpisa and Jaked (lingerie, suitcases, sport garments), with several points of sale all over the world. Created in the Naples’ area by two families of entrepreneurs, this company represents a sort of meltdown of the tradition, culture and creativity of that area - where Civil Economics was born - and the opportunities offered by the soft and hard infrastructure of services developed in Lombardy, where the main operations are now situated. Preserving the original soul and values, but investing also in innovation and individual commitment, for example through a high level corporate Academy, this Group represents today a good case of valorization of cultural and knowledge diversities, in an ongoing search of shared excellence. |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:liu:liuced:288&r=all |
| By: | Herlem Ferro-Alvez (Universidade Federal do Pará (UFPA)); Philippe Massot-Bordenave (UTM - Université Toulouse 2 Le Mirail, FRAMESPA - FRAnce MEridionale ESPAgne. Histoire des sociétés du Moyen Age à époque contemporaine - CNRS - UTM - Université Toulouse 2 Le Mirail) |
| Abstract: | The model of the cooperatives is a model that have already studied. Nevertheless the situations of the marginalized populations remain difficult in our country. This article aims to find some possible solutions that can be developped using this a network of cooperatives to help varius population to cooperate. |
| Abstract: | Le modèle de la coopérative est un modèle déjà bien étudié dans nos économies. Les situations des personnes marginalisées demeurent délicates dans nos pays. Cet article se propose aux regards de situations décrites d’explorer des axes de solutions. |
| Keywords: | Third Sector,Pauverty,Cooperatives systems,Social Action,Economie populaire, pauvrreté, développement,coopératives, économie sociale, gens du voyage |
| Date: | 2014–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01207525&r=all |