nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2015‒12‒08
eighteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Testing Bienenfeld’s Second-Order Approximation for the Wage-Profit Curve By Mariolis, Theodore
  2. Money and politic): is there any prospect for democracy in " the monetary pluralism "? By Marie Cuillerai
  3. Decompr: Global Value Chain Decomposition In R By Victor Kummritz; Bastiaan Quast
  4. Women at the Top in Developing Countries: Evidence from Firm-Level Data By Sekkat, Khalid; Szafarz, Ariane; Tojerow, Ilan
  5. Networks of value added trade By João Amador; Sónia Cabral
  6. Why Does the Government Fail to Improve the Living Conditions of Migrant Workers in Shanghai? Reflections on the Policies and the Implementations of Public Rental Housing under Neoliberalism By Yang Shen
  7. Selectivity and Transparency in Social Banking: Evidence from Europe By Simon Cornée; Panu Kalmi; Ariane Szafarz
  8. Capital Theory ‘Paradoxes’ and Paradoxical Results: Resolved or Continued? By Mariolis, Theodore; Tsoulfidis, Lefteris
  9. Sins of the Fathers: The Intergenerational Legacy of the 1959-1961 Great Chinese Famine on Children’s Cognitive Development By Chih Ming Tan; Zhibo Tan; Xiaobo Zhang
  10. Creación y destrucción comparada de cooperativas de trabajadores y empresas capitalistas en Uruguay By Andrés Dean
  11. Introducing gender in sub-national HDRs: an exercise for Bardhaman district of Bengal By Ray, Jhilam; Rajarshi, Majumder
  12. Relativity and asymmetry in distance. The role of strategic distance in the internationalization decisions of Brazilian and Italian firms By Giovanna Magnani; Antonella Zucchella; Dinorà Eliete Floriani
  13. Status and the Demand for Visible Goods: Experimental Evidence on Conspicuous Consumption By Clingingsmith, David; Sheremeta, Roman
  14. Does the CAMEL bank ratings system follow a procyclical pattern? By Papanikolaou, Nikolaos I.; Wolff, Christian C
  15. Klimaverhandlungen: Welche Erwartungen können an den Klimagipfel in Paris gestellt werden? By Philipp M. Richter; Hanna Brauers
  16. Complex economies have a lateral escape from the poverty trap By Emanuele Pugliese; Guido L. Chiarotti; Andrea Zaccaria; Luciano Pietronero
  17. Making China the transition to a low-carbon economy: Key challenges and responses By ZhongXiang Zhang
  18. ¡Regios mijo! Una aproximación sociológica a los vínculos sociales de mujeres transexuales de un Centro de Escucha en Cali By Muñoz Barreneche Carlos Felipe

  1. By: Mariolis, Theodore
    Abstract: This paper constructs Bienenfeld’s second-order approximation for the wage-profit curve and tests it using data from ten symmetric input-output tables of the Greek economy. The results suggest that there is room for using low-dimensional models as surrogates for actual single-product economies.
    Keywords: Bienenfeld’s polynomial approximation; Eigenvalue distribution; Wage-price-profit rate curves
    JEL: B51 C67 D57
    Date: 2015–11–26
  2. By: Marie Cuillerai (LLCP - Laboratoire d'études et de recherches sur les logiques contemporaines de la philosophie - Université Paris VIII - Vincennes Saint-Denis)
    Abstract: Les monnaies alternatives proposent une nouvelle articulation de l’économique et du politique selon deux axes opposés. D’un côté, un courant libéral veut contrer le monopole étatique de l’émission monétaire et les Banques centrales. De l’autre, le pluralisme monétaire revendique une rupture avec la domination de l’économie néolibérale. Le long de ce spectre, la souveraineté monétaire est remise en question et dans le cas des monnaies sociales, certaines expériences ambitionnent de corriger les défauts de régulation de l’Etat social. Cet article cherche à montrer comment les monnaies sociales déplacent les critères traditionnels de la démocratie hérités de la Modernité. Dans un premier temps, un repérage sémantique montre que les monnaies sociales bousculent l’opposition privé/public, macro/micropolitique. Les formes d’organisation de ces collectifs sont mises en perspective avec la micropolitique de Deleuze, et la microphysique des pouvoirs de Foucault. La dimension démocratique des monnaies sociales se situe-t-elle seulement dans l’organisation qui préside à leur institution, ou dans les pratiques et les usages qui en découlent ? Leur perspective conduit à un débat sur la définition de la monnaie comme institution d’une dette sociale, car elle voit la dette comme une technologie de la gouvernementalité néolibérale. La deuxième partie de l’article compare les notions de monnaie-dette de vie, et de monnaie du commun. Entre monnaie dette et monnaie du commun, s’agit-il d’une nuance sur la symbolique de la monnaie, ou cette alternative exprime-t-elle deux conceptions différentes d’une politique émancipatrice ?
    Abstract: Alternative currency systems offer a new articulation of economic and politics in two opposite directions. On one side, a liberal current wants to counter the State monopoly on the monetary issue and central banks. On the other side, monetary pluralism is wishing to sedition with the dominance of neoliberal economy. Along this spectrum, monetary sovereignty is questioned and, in the case of social currencies, some experiences are seeking to correct social regulation of the welfare state. This article seeks to demonstrate how social currencies are moving beyond the traditional criteria of democracy inherited from modernity. At first, a semantic identification shows that social currencies are scrambling traditional oppositions as public/private, macro/micro. Then, forms of organization of these groups are put into perspective with the micropolitics of Deleuze and Foucault’s microphysic of power. Does the democratic dimension of social currencies only lies in organization who presides at their institution? Or is it dwelling in the practices and usages? Their philosophical perspective led to a debate on the definition of the currency as a institution of a social debt as “debt of life”, because they sees debt as a technology of neoliberal governmentality. The second part of the article compares the concepts of debt-currency, and “currency of common”. Between currency debt and the common currency, is it a shade on the symbolism of the currency, or this alternative expresses two different designs of an emancipatory politics?
    Keywords: Sovereignty, Micropolitique , Exchange ,Democracy , Debt ,Démocratie ,Dette , Institution,Micropolitique , Monnaie , Souveraineté
    Date: 2015–01–30
  3. By: Victor Kummritz (IHEID, The Graduate Institute of International and Development Studies, Geneva); Bastiaan Quast (IHEID, The Graduate Institute of International and Development Studies, Geneva)
    Abstract: Global Value Chains have become a central unit of analysis in research on international trade. However, the complex matrix transformations at the basis of most Value Chain indicators still constitute a significant entry barrier to the field. The R package decompr solves this problem by implementing the algorithms for the analysis of Global Value Chains as R procedures, thereby simplifying the decomposition process. Two methods for gross export flow decomposition using Inter-Country Input-Output tables are provided. The first method concerns a decomposition based on the classical Leontief (1936) insight. It derives the value added origins of an industry's exports by source country and source industry, using easily available gross trade data. The second method is the Wang-Wei-Zhu algorithm, which splits bilateral gross exports into 16 value added components. These components can broadly be divided into domestic and foreign value added in exports. Using the results of the two decompositions, decompr provides a set of Global Value Chain indicators, such as the now standard Vertical Specialisation ratio. This article summarises the methodology of the algorithms, describes the format of the input and output data, and exemplifies the usefulness of the two methods on the basis of a simple example data set.
    Keywords: Global Value Chains, Trade in Value Added, Export Decomposition
    JEL: E01 F13 F14 F23 L14
    Date: 2015–01–17
  4. By: Sekkat, Khalid (Free University of Brussels); Szafarz, Ariane (Free University of Brussels); Tojerow, Ilan (Free University of Brussels)
    Abstract: This paper uses worldwide firm-level data to scrutinize the governance factors that favor gender diversity in leadership positions. Our results reveal that the gender of the dominant shareholder is key. The chief executive of firms with a female dominant shareholder has a significantly higher probability of being a woman than in other firms. The effect is even more pronounced when the female shareholder holds a higher share of the capital and when the firm is foreign-owned. Our results suggest that "old boys' club" ownership structures are a major impediment to the empowerment of female talent in developing countries.
    Keywords: gender, diversity, ownership, leadership, CEO, development
    JEL: O15 J71 G32 M51 D22
    Date: 2015–11
  5. By: João Amador; Sónia Cabral
    Abstract: Global Value Chains (GVCs) became the paradigm for the production of most goods and services around the world. Therefore, linkages among countries can no longer be adequately assessed through standard bilateral gross trade flows and new methods of analysis are needed. In this paper, we apply visualisation tools and measures of network analysis on value-added trade flows in order to understand the nature and dynamics of GVCs. The paper uses data on the bilateral foreign value added in exports from the World Input-Output Database (WIOD) for the period 1995-2011 and, in each period, the GVC is represented as a directed network of nodes (countries) and edges (value added flows). The analysis is extended beyond total trade flows with a view to discussing the distinct roles of goods and services in GVCs. Moreover, the differences between Germany, the US, China and Russia as major suppliers of value added in GVCs are also examined.
    JEL: C67 D85 F14 F15
    Date: 2015
  6. By: Yang Shen
    Abstract: How to get affordable housing is the primary concern of many peasant migrants working in Shanghai. Although the central government has issued a series of policies regarding migrant housing in recent years, they are merely rhetoric and incapable to meet migrant workers' needs. This article aims to interrogate why the public housing policy cannot solve migrant housing problems and what neoliberalism means in housing provision. It is argued that the neoliberal approaches embedded in public rental housing implementation show that the government prioritises public rental housing for the middle class, which is considered important to the economy, and ignores the others. The prioritisation gives rise to the failure of providing affordable housing to peasant migrant workers. Living in safe and affordable housing is vital to their well-being and the sustainable economic growth in urban China. Policy advice is addressed in the conclusion.
    Keywords: public housing policies;peasant migrant workers;participant observation;neoliberalism;China
    Date: 2015–01–28
  7. By: Simon Cornée; Panu Kalmi; Ariane Szafarz
    Abstract: How do social banks signal their social commitment to motivated funders? This paper hypothesizes that two main channels are used, namely selectivity and transparency. We test these predictions using a rich dataset comprising balance-sheet information on 5,000 European banks over the 1998-2013 period. The results suggest that social screening leads social banks to higher project selectivity compared with mainstream banks. Social banks also tend to be more transparent than other banks. However, combining selectivity and transparency can result in excess liquidity. Overall, the empirical findings not only confirm our theoretical hypotheses, but also raise challenging issues on the management of social banks.
    Keywords: Social banks, Social enterprises, Social mission, European banks.
    JEL: G21 L33 M14 L31 D63 D82
    Date: 2015–12–01
  8. By: Mariolis, Theodore; Tsoulfidis, Lefteris
    Abstract: Capital theory controversies and ‘paradoxes’ showed that, due to price-feedback effects, the wage-production price-profit rate curves may display shapes inconsistent with the requirements of the neoclassical theory of value and distribution. Subsequent findings on a number of quite diverse actual single-product economies suggested that the impact of those effects is of limited empirical significance. This paper argues that, by focusing on the distributions of the eigenvalues and singular values of the system matrices, we can further study these issues and derive some meaningful theoretical results consistent with the available empirical evidence. Consequently, the real paradox, in the sense of knowledge vacuum and, thus, requiring further research, is the distributions of the characteristic values and not really the ‘paradoxes in capital theory’.
    Keywords: Capital Theory; Characteristic value distributions; Hyper-basic industry; Spectral decompositions; Wage-price-profit rate curves
    JEL: B21 B51 C67 D57
    Date: 2015–12–05
  9. By: Chih Ming Tan (Department of Economics, University of North Dakota, USA; The Rimini Centre for Economic Analysis, Italy); Zhibo Tan (School of Economics, Fudan University, China); Xiaobo Zhang (China Center for Economic Research, Peking University, China; International Food Policy Research Institute, USA)
    Abstract: The effect of early exposure to malnutrition on the next generation’s cognitive abilities has rarely been studied in human beings in large part due to lack of data. A natural experiment, the Great Chinese Famine, and a novel dataset are employed to study this effect. The paper finds that the cognitive abilities of children born to rural famine fathers were affected and that the impact is more pronounced in girls than in boys, whereas children born to female survivors are not affected. The uncovered gender-specific effect is almost entirely attributable to son preference exhibited in families with male famine survivors.
    Date: 2014–05
  10. By: Andrés Dean (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: This paper revisits the question of why there are so few labor-managed firms in capitalist economies. We analyze the processes of creation (entries) and destruction (exits) of labor-managed firms, compare to capitalist firms. We focus on macroeconomic conditions changes that affect firms, favoring its creation or dissolution. And particularly if these changes affect labor-managed firms and capitalist firms differently. We use a panel data including the universe of worker cooperatives and a sample of 20% of Uruguayan capitalist firms, during the period 1996-2013. While part of the theoretical and empirical literature suggests that entries and exits of labor-managed firms follow a countercyclical pattern, we find evidence partially supporting this hypothesis. Furthermore our evidence suggests that creation and dissolution flows of this kind of firms are also driven by institutional factors.
    Keywords: Entries, Exits, Business cycle, Labor-managed Firms
    JEL: D21 J54
    Date: 2015–10
  11. By: Ray, Jhilam; Rajarshi, Majumder
    Abstract: While developing the District Human Development Index, one takes into account the average level of economic well being, education level and health care available in a block and makes a comparative assessment between the blocks/ municipalities of a district. However, this index fails to capture the disparity in development between men and women, or even the level of development achieved by the two gender-groups separately. However, it is generally true that in developing countries a huge gap exists between the two groups and most often the females lag far behind the males in almost all the areas of HDI. With almost half the population lagging behind, this acts as a drag on the overall HDI. In addition, the impact of women’s status in the society is a long run one as numerous research papers show that children are influenced more by mothers’ characteristics compared to that of fathers. To account for this, it was thought prudent to discuss gender issues related to preparation of sub-national HDR in this paper. A Gender Parity Index has been prepared using four components – education, health and livelihood, and social.
    Keywords: Gender; Human Development; Gender Parity; GDI; Education; Livelihood; Safe Motherhood
    JEL: I14 I15 I18 J13 J16
    Date: 2015–11–30
  12. By: Giovanna Magnani (Department of Economics and Management, University of Pavia); Antonella Zucchella (Department of Economics and Management, University of Pavia); Dinorà Eliete Floriani (University of Vale do Itajaí)
    Abstract: Distance studies often assume geographic distance in absolute terms rather than relative to firms’ perceptions, and symmetric between two countries. By pair-wise comparing six case studies of Brazilian and Italian ventures, we address this gap. We find that geographic distance is relative to a firm’s prospective internationalisation plans and we identify a considerable asymmetry in perceptions of distance. Overall, our findings seem to go against the predictions of the stages models of internationalization which envision internationalization decisions based on proximity and similarity of markets, rather firms leverage on market dissimilarities and consider the strategic distance of target markets, in addition to psychic, institutional, geographic, and cultural distances.
    Keywords: distance; relativity; asymmetry; strategic markets; similarity.
    Date: 2015–11
  13. By: Clingingsmith, David; Sheremeta, Roman
    Abstract: Some economists argue that consumption of publicly visible goods is driven by social status. Making a causal inference about this claim is difficult with observational data. We conduct an experiment in which we vary both whether a purchase of a physical product is publicly visible or kept private and whether the income used for purchase is linked to social status or randomly assigned. Making consumption choices visible leads to a large increase in demand when income is linked to status, but not otherwise. We investigate the characteristics that mediate this effect and estimate its impact on welfare.
    Keywords: status, conspicuous consumption, experiment
    JEL: C91 D03
    Date: 2015–12–04
  14. By: Papanikolaou, Nikolaos I.; Wolff, Christian C
    Abstract: The financial crisis which erupted in 2007-8 has illustrated the disruptive effects of procyclicality. The phenomenon of procyclicality refers to the mutually reinforcing interactions between the financial system and the real economy that tend to amplify business cycle fluctuations. These fluctuations can cause or exacerbate turbulences in the financial system and this explains why supervisory and regulatory authorities are so much concerned in mitigating the degree of procyclicality. In this study, we focus on the ratings system of the U.S. banking institutions and test how these are linked to the phenomenon of procyclicality. More concretely, we empirically investigate the sensitivity of CAMEL ratings system, which is used by the U.S. authorities to monitor the conditions in the banking market, to the fluctuations of economic cycle. Our results reveal that the overall state of the U.S. economy and CAMEL ratings are positively correlated. We find that CAMEL ratings largely depend on the course of the business cycle as they are lower during economic upturns and higher during economic downturns. This is to say that the performance and risk-taking behaviour of banks is rated higher when the conditions in the economy are favourable and lower when the economic environment is weak. This very important and rather unknown source of procyclicality should be taken into serious consideration by authorities.
    Keywords: CAMELS ratings; financial crisis; financial stability; procyclicality
    JEL: C13 C20 C50 D02 G21 G28
    Date: 2015–11
  15. By: Philipp M. Richter; Hanna Brauers
    Abstract: Kurz vor dem anstehenden Klimagipfel äußert sich Angela Merkel in der Frankfurter Allgemeinen Sonntagszeitung wie folgt: „Zu Recht wird von Regierungen und Politikern erwartet, dass sie nicht länger die Augen vor erdrückenden wissenschaftlichen Erkenntnissen verschließen, dass der Klimaschutz rasches und energisches Handeln erfordert.“ Frau Merkel stellt schließlich eine klare Forderung an die Ergebnisse des Klimagipfels: „Die Treibhausgasemissionen müssen nicht nur stabilisiert, sondern möglichst rasch vermindert werden.” Diese Aussagen sind heute noch aktuell, wurden jedoch tatsächlich am 26. März 1995 veröffentlicht; zu der Zeit also als Frau Merkel selbst noch das Amt der Bundesumweltministerin bekleidete und kurz darauf den ersten Klimagipfel als Präsidentin eröffnete. Nach mehr als 20 Jahren der Klimadiplomatie im Rahmen der Vereinten Nationen liegt die Aufmerksamkeit nun auf dem 21. Klimagipfel (COP, Conference of the Parties), der vom 30. November bis zum 11. Dezember in Paris stattfinden wird. Diesem Gipfel wird allgemeinhin zugeschrieben, die letzte Chance für eine rechtzeitige globale Einigung zur Vermeidung eines gefährlichen Klimawandels zu sein. In diesem DIW Roundup beleuchten wir die anstehende COP21 und diskutieren sowohl den aktuellen Stand als auch kontroverse Punkte der anstehenden Verhandlungen. Zudem zeigen wir Meilensteine bisheriger Klimagipfel und erläutern die ökonomische Theorie hinter internationalen Umweltabkommen.
    Date: 2015
  16. By: Emanuele Pugliese; Guido L. Chiarotti; Andrea Zaccaria; Luciano Pietronero
    Abstract: We analyze the decisive role played by the complexity of economic systems at the onset of the industrialization process of countries over the past 50 years. Our analysis of the input growth dynamics, based on a recently introduced measure of economic complexity, reveals that more differentiated and more complex economies face a lower barrier (in terms of GDP per capita) when starting the transition towards industrialization. Moreover, adding the complexity dimension to the industrialization process description helps to reconcile current theories with empirical findings.
    Date: 2015–11
  17. By: ZhongXiang Zhang (College of Management and Economics, Tianjin University)
    Abstract: China has realized that for its own sake and from the international community’s perspective, it cannot afford to continue along the conventional path of encouraging economic growth at the expense of the environment. Accordingly, the country has placed ecological goals at the same level of priority as policies on economic, political, cultural and social development. Specifically, to meet the grand goal involves not only capping China’s nationwide coal consumption to let it peak before 2020 and carbon emissions peak around 2030, but also putting in place a variety of flagship programs and initiatives, prices and policies. This paper argues that the 2030 carbon emissions peak goal is ambitious but achievable and concludes by arguing why China’s anti-pollution outcomes this time might be different from the previous ones.
    Keywords: low-carbon economy; carbon emissions peaks; coal consumption; carbon pricing; energy prices; resource tax reform; renewable energy; China
    JEL: H23 P28 Q42 Q43 Q48 Q53 Q54 Q58
    Date: 2015–11
  18. By: Muñoz Barreneche Carlos Felipe
    Abstract: El presente artículo es el resultado de una indagación descriptiva sobre los vínculos afectivos e institucionales que construyen un grupo de mujeres transexuales pertenecientes al Centro de Escucha y Acogida Comunitaria (CE) del barrio El Retiro en Cali. Para ello se realizaron entrevistas semi-estructuradas a cinco mujeres transexuales y se revisaron los reportes de los equipos del CE. Los principales hallazgos indican que el trabajo integral realizado por el CE con las mujeres, a nivel personal, comunal e institucional, ha contribuido a la reducción del consumo de sustancias psicoactivas (SPA) y de su impacto. Igualmente, se identifica que se ha replanteado su rol como mujer transexual y la resignificación del barrio. Sin embargo, se percibió la necesidad de consolidar los vínculos entre las mujeres y sus redes de apoyo, proceso fundamental en la consolidación del grupo y eje central de la propuesta del centro.
    Keywords: Vínculos sociales, mujeres transexuales, consumo de sustancias psicoactivas y tratamientocomunitario.
    Date: 2015–10–30

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