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on Heterodox Microeconomics |
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Issue of 2016‒03‒10
eleven papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Pavlina R. Tcherneva |
| Abstract: | Money, in this paper, is defined as a power relationship of a specific kind, a stratified social debt relationship, measured in a unit of account determined by some authority. A brief historical examination reveals its evolving nature in the process of social provisioning. Money not only predates markets and real exchange as understood in mainstream economics but also emerges as a social mechanism of redistribution, usually by some authority of power (be it an ancient religious authority, a king, a colonial power, a modern nation state, or a monetary union). Money, it can be said, is a "creature of the state" that has played a key role in the transfer of real resources between parties and the redistribution of economic surplus. In modern capitalist economies, the currency is also a simple public monopoly. As long as money has existed, someone has tried to tamper with its value. A history of counterfeiting, as well as that of independence from colonial and economic rule, is another way of telling the history of "money as a creature of the state." This historical understanding of the origins and nature of money illuminates the economic possibilities under different institutional monetary arrangements in the modern world. We consider the so-called modern "sovereign" and "nonsovereign" monetary regimes (including freely floating currencies, currency pegs, currency boards, dollarized nations, and monetary unions) to examine the available policy space in each case for pursuing domestic policy objectives. |
| Keywords: | History of Money; Monetary Sovereignty; Chartalism; Counterfeiting; Public Monopoly; Currency Issuers vs. Currency Users; Exchange Rate Systems |
| JEL: | B5 E6 E42 E63 N1 Z1 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_861&r=hme |
| By: | Diogo Lourenço (Faculdade de Economia, Universidade do Porto); Mário Graça Moura (Faculdade de Economia, Universidade do Porto) |
| Abstract: | Implicitly, the Socialist Calculation Debate is about the connection between neoclassical theory and reality. It involves several ontological presuppositions, with wide-ranging implications. Our purpose is to discuss one of these presuppositions. We want to scrutinise the view, implicit in the ‘market socialist’ arguments, that things have economic roles or functions independently of the social environment in which they exist. ‘Primary factors’ and techniques of production are taken to exist independently of social arrangements; jointly with consumer preferences, they are supposed to define the economic problem of a community. In analysing this view, we borrow from F. A. Hayek, complementing his reflections with those of Donald Davidson, Willard Quine, and Tony Lawson. We also discuss a second problem, which follows from the first: if, in contrast with market socialists’ view, the economic roles of things depend holistically on complex social processes, how can we compare alternative forms of economic organisation? |
| Keywords: | Ontology, Socialist Calculation, Economic Function, Counterfactuals. |
| JEL: | B24 B25 B41 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:572&r=hme |
| By: | Nina Dodig (Berlin School of Economics and Law, and Institute for International Political Economy Berlin (IPE)); Hansjorg Herr (Berlin School of Economics and Law, and Institute for International Political Economy Berlin (IPE)) |
| Abstract: | This paper presents an overview of different models which explain financial crises, with the aim of understanding economic developments during and possibly after the Great Recession. In the first part approaches based on efficient markets and rational expectations hypotheses are analyzed, which however do not give any explanation for the occurrence of financial crises and thus cannot suggest any remedies for the present situation. A broad range of theoretical approaches analyzing financial crises from a medium term perspective is then discussed. Within this group we focused on the insights of Marx, Schumpeter, Wicksell, Hayek, Fisher, Keynes, Minsky, and Kindleberger. Subsequently the contributions of the Regulation School, the approach of Social Structures of Accumulation and Post-Keynesian approach, which focus on long-term developments and regime shifts in capitalist development, are presented. International approaches to finance and financial crises are integrated into the analyses. We address the issue of relevance of all these theories for the present crisis and draw some policy implications. The paper has the aim to find out to which extent the different approaches are able to explain the Great Recession, what visions they develop about future development of capitalism and to which extent these different approaches can be synthesized. |
| Keywords: | theories of crisis, Marxian, Institutional, Keynesian, capitalism, finance, financial crisis |
| JEL: | B14 B15 B24 B25 E11 E12 E13 E32 |
| Date: | 2015–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:fes:wpaper:wpaper126&r=hme |
| By: | Claudia Olivetti; Barbara Petrongolo |
| Abstract: | Women in developed economies have made major inroads in labor markets throughout the past century, but remaining gender differences in pay and employment seem remarkably persistent. This paper documents long-run trends in female employment, working hours and relative wages for a wide cross-section of developed economies. It reviews existing work on the factors driving gender convergence, and novel perspectives on remaining gender gaps. The paper finally emphasizes the interplay between gender trends and the evolution of the industry structure. Based on a shift-share decomposition, it shows that the growth in the service share can explain at least half of the overall variation in female hours, both over time and across countries. |
| Keywords: | Female employment, gender gaps, industry structure |
| JEL: | E24 J16 J31 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1410&r=hme |
| By: | Quentin Perrier (CIRED, Engie); Philippe Quirion (CIRED, CNRS) |
| Abstract: | Dans le débat public sur la transition énergétique en France, l’emploi occupe une place prépondérante. Nous calculons, pour l’économie française en 2010, le contenu en emploi et en gaz à effet de serre des différentes branches, c’est-à-dire le nombre d’emplois et de tonnes-équivalent-CO2 par million d’euros de demande finale. Nous utilisons pour cela le tableau entrées-sorties au niveau le plus désagrégé disponible (64 branches). Nous développons et appliquons ensuite une méthodologie originale pour décomposer les écarts de contenu en emploi entre branches en cinq facteurs : le taux d’importations de produits finaux, le taux d’importations de consommations intermédiaires, les taux de taxes et subventions, les niveaux de salaire et la part de la rémunération du travail dans la valeur ajoutée. Enfin, nous étudions certaines substitutions interbranches qui découleraient d’une transition énergétique visant à réduire les émissions de gaz à effet de serre. Les résultats sont les suivants. Premièrement, un contenu en emploi plus élevé d’une branche s’explique, en moyenne et par ordre d’importance, par des salaires plus faibles, des importations plus faibles de produits finaux, une part plus importante du travail dans la valeur ajoutée, des importations plus faibles de consommations intermédiaires, et en dernier lieu par des taxes plus faibles. Deuxièmement, parmi les branches dont le contenu en gaz à effet de serre est élevé, celles qui présentent en même temps un faible contenu en emploi (électricité et industrie lourde) sont couvertes par le système européen de quotas de gaz à effet de serre. A l’inverse, celles qui présentent en même temps un fort contenu en emploi (agriculture, agroalimentaire et transport terrestre) ne sont pas couvertes par une politique climatique – la crainte d’un impact négatif sur l’emploi constituant une explication possible. Troisièmement, la transition énergétique implique des déplacements interbranches de demande finale que nous identifions. Ces substitutions favorisent des branches présentant un contenu en emploi plus élevé. Ces augmentations de contenu en emploi s’expliquent, mais en partie seulement, par des salaires plus élevés dans les branches amenées à réduire leur activité. |
| Keywords: | Emploi, Transition énergétique, Emissions de gaz à effet de serre, Substitutions intersectorielles, Input-output |
| JEL: | E2 Q5 O13 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2016.09&r=hme |
| By: | Bullón, David; Mena, Tayutic; Meng, Bo; Sánchez, Natalia; Vargas, Henry; Inomata, Satoshi |
| Abstract: | In order to illustrate how the input-output approach can be used to explore various aspects of a country's participation in GVCs, this paper applies indicators derived from the concept of trade in value-added (TiVA) to the case of Costa Rica. We intend to provide developing countries that seek to foster GVC-driven structural transformation with an example that demonstrates an effective way to measure progress. The analysis presented in this paper makes use of an International Input-Output Table (IIOT) that was constructed by including Costa Rica's first Input-Output Table (IOT) into an existing IIOT. The TiVA indicator has been used to compare and contrast import flows, export flows and bilateral trade balances in terms of gross trade and trade in value-added. The country's comparative advantage is discussed based on a TiVA-related indicator of revealed comparative advantage. The paper also decomposes the domestic content of value added in each sector and measures the degree of fragmentation in the value chains in which Costa Rica participates, highlighting the partner countries that add the most value. |
| Keywords: | Costa Rica, International trade, Input-output tables, Globalization, Trade in Value-added, TiVA, Global Value Chains, GVCs, Input-Output |
| JEL: | D57 F13 F15 |
| Date: | 2015–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:jet:dpaper:dpaper529&r=hme |
| By: | Sproule, Kathryn; Kieran, Caitlin; Quisumbing, Agnes R.; Doss, Cheryl |
| Abstract: | Despite increasing evidence that households do not always function as one, policies regarding land and property rights are often formulated at the household level, assuming the primary adult male is the landowner. Because land policy reform has typically focused on changing household, rather than individual, rights to land, many of the data are collected at the household rather than the individual level. As a result of a combination of these factors, securing women’s land rights has remained a largely unaddressed issue by policymakers. So as to inform the formulation of policies and interventions to strengthen women’s land rights, this paper analyzes nationally representative data from Bangladesh, Tajikistan, Timor-Leste, and Vietnam to understand the processes by which men and women acquire land; the social, cultural, and legal institutions surrounding gender and landownership; and the role of individual and household characteristics influencing an individual’s ability to own land. Our findings that women own less land than do men across different types of household structures and that gender inequality increases with household landholdings suggests that women’s land rights need to be strengthened within marriage and protected should the marriage dissolve. Although the impacts of gender-sensitive land policy reform are not well researched, early findings on policy reforms such as joint titling in Vietnam show that policies to strengthen women’s land rights have the potential to improve women’s well-being as well as their children’s without detrimental effects on productivity. Our findings of gender inequalities in intrahousehold land allocation and of increasing inequality as households accumulate land suggest an agenda for future research and policy that strengthens the land rights of women, particularly within marriage. |
| Keywords: | gender, women, land ownership, assets, households, land rights, legal rights, land policies, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1481&r=hme |
| By: | BRESSER-PEREIRA, Luiz Carlos |
| Abstract: | O estado desenvolvimentista está situado entre o estado liberal e o estatismo. Todas as revoluções industriais foram realizadas no quadro de estados desenvolvimentistas, que assumiram várias formas ou modelos, conforme o desenvolvimento fosse original ou retardatário, central ou periférico, o primeiro desenvolvimentismo no país ou o segundo. Terminada a revolução industrial e depois que a economia se torna diversificada, complexa e competitiva, o mercado pode coordenar com vantagem os setores competitivos. Mas o estado tende e deve continuar desenvolvimentista, porque cabe a ele coordenar o setor não-competitivo, realizar uma política macroeconômica ativa incluindo uma política cambial, promover a diminuição das desigualdades econômicas, e proteger o meio ambiente – todas atividades que o mercado não tem condições de realizar. |
| Date: | 2016–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:fgv:eesptd:412&r=hme |
| By: | Arora, Vipin; Sendich, Elizabeth; Teng, Julia |
| Abstract: | We describe portions of the U.S input-output tables through the tools of networks analysis—focusing on either energy intensive industries or those that are part of the separate and distinct energy sector. We first represent both energy intensive and energy sector industries visually through network diagrams for the years 1997, 2002, and 2007. Next, we show that the energy sector is generally more densely connected than either energy intensive industries or all industries over those years, and is more likely to have groups of three sub-sectors all linked as well. We then move to the level of individual industries within the broad sectors and find that energy intensive industries have the most in-coming connections on average for these tables. Energy sector ones have fewer, but the number grows over time, as do outgoing connections. Other measures of centrality—closeness and betweenness—vary over time for both the energy sector and energy intensive industries. Specifically, petroleum refining and electricity generation stand out for their centrality, drilling oil and gas wells for its lack of centrality. |
| Keywords: | network analysis,input/output |
| JEL: | D85 C67 Q4 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:128144&r=hme |
| By: | Thierry Kirat (IRISSO-UMR 7170 - Institut de Recherche Interdisciplinaire en Sciences Sociales - Université Paris IX - Paris Dauphine); Frédéric Marty (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Fraud and misconduct in financial markets have recently become a key regulatory issue against the backdrop of the financial crisis. This paper investigates the sanctions policy and practices of the French financial regulator, Autorité des Marchés Financiers (AMF). It argues that, over time, the AMF has shifted from substantive to procedural regulation of finance. This shift consists in departing from sanctions based on observed outcomes in the market and, instead, assessing how the internal organizational schemes of financial firms actually perform. The AMF's new policy and practice involves a process of legalization of organizations; it also evidences a tendency to delegate regulation to financial firms themselves |
| Keywords: | legalization of organization,substantive regulation,procedural deterrence,Financial market |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01276504&r=hme |
| By: | Jaelani, Aan |
| Abstract: | The development of economic thought in the Islamic tradition started since the beginning of the first century of the Hijrah. This period is a time when the scientific works about how to achieve economic progress and strengthen the country through foreign trade intangibles movements in the West, known as mercantilism in the economic literature. At this stage of history, after the transmission of Greek ideas, the Muslim scholars to innovate and enrich life interpretations of thought in the world at large, then gradually those ideas into decline and forgotten in history. However, these ideas are not recognized by Western scholars, resulting in a missing link that led to the "great gap" in the history of the world economy. |
| Keywords: | economics mainstream, Islamic economics, economic thought |
| JEL: | A2 A23 B0 B1 B11 B15 B5 I2 I3 I38 N0 N01 N1 N10 N2 N20 N23 N25 N3 N4 P0 P5 Z0 Z11 Z12 |
| Date: | 2015–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69672&r=hme |