nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2016‒06‒04
seventeen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Cálculo de la Productividad Sectorial en Colombia con Herramientas Insumo-Producto By Julián VILLAMIL SANCHEZ
  2. Do Firms Price and Advertise to Maximize Profits? Evidence from U.S. Food Industries By He, Xi; Lopez, Rigoberto
  4. Wealth, marriage and prenuptial agreements in France (1855 - 2010) By Nicolas Frémeaux; Marion Leturcq
  6. Greek Sovereign Defaults in Retrospect and Prospect By Tsoulfidis, Lefteris; Zouboulakis, Michel
  7. Uncertainty and the dangers of monocultures in regulation, analysis, and practice By Bronk, Richard; Jacoby, Wade
  8. Pursuing the Evolutionary Agenda in Economics and Management Research By Sidney G. Winter
  9. Gender and Commuting Behavior: Evidence from the American Time Use Survey By Kimbrough, Gray
  10. The "Schumpeterian" and the "Keynesian" Stiglitz: Learning, Coordination Hurdles and Growth Trajectories By Giovanni Dosi; Maria Enrica Virgillito
  11. Governance and Performance in the U.S. Agri-Food Industry: A Comparative Study of Firms and Cooperatives By Grashuis, Jasper; Cook, Michael
  12. Understanding the shift from micro to macro-prudential thinking: A discursive network analysis By Thiemann, Matthias; Aldegwy, Mohamed; Ibrocevic, Edin
  13. Macroeconomic Policy in DGSE and Agent-Based Models Redux: New Developments and Challenges Ahead By Giorgio Fagiolo; Andrea Roventini
  14. Women’s Participation in Agriculture and Gender Productivity Gap: The Case of Coffee Farmers in Southern Colombia and Northern Ecuador By Avila-Santamaria, Jorge; Useche, Pilar
  15. The Increase of the Gender Wage Gap in Italy during the 2008-2012 Economic Crisis By Piazzalunga, Daniela; Tommaso, Maria Laura di
  16. Mobility across generations of the gender distribution of housework By J. Ignacio Giménez-Nadal; Lucia Mangiavacchi; Luca Piccoli
  17. Can an interdisciplinary field contribute to one of the parent disciplines from which it emerged? By Anirban Chakraborti; Dhruv Raina; Kiran Sharma

    Abstract: En este trabajo se adopta la recomendación de Felipe y McCombie (2007) y Pasinetti (1987) de medir la productividad desde un punto de vista desagregado. De esta manera, es posible entender el comportamiento inter-sectorial, frente a los distintos escenarios por los que atraviesa la economía. Para tal fin, se hace uso de las herramientas basadas en el modelo Insumo-Producto: fraccionamiento del sistema productivo en clústeres y cálculo de la productividad laboral total por subsistemas verticalmente integrados. Se usan los clústeres identificados por Villamil y Hernández (2016) para clasificar los sectores y, a partir de allí, se logró establecer las fuentes del cambio de productividad: de acuerdo al clúster de origen. Se encuentran 29 sectores dinámicos en el período 2005-2012. Dentro de estos últimos, se destacan los sectores con vocación hacia la intermediación (comercio, finanzas y transporte) y algunos sectores de la industria manufacturera (equipo de transporte, maquinaria eléctrica y mecánica). Se encuentra, que en los sectores no-dinámicos, existe una alta incidencia negativa sobre la productividad generada dentro de su propio clúster. Se concluye resaltando la necesidad de ahondar en el estudio de las relaciones interindustriales a nivel de sector o, incluso, a nivel de firma.
    Keywords: Clústeres, Insumo-Producto, Productividad Laboral, SectoresEconómicos
    JEL: C38 C67 E01 B51 E24
    Date: 2016–05–18
  2. By: He, Xi; Lopez, Rigoberto
    Abstract: Based on a model that incorporates brand entry deterrence through advertising and pricing strategies, this paper investigates whether firms’ advertising and pricing policies deviate from their short-run profit maximization strategies and how advertising and pricing entry deterrence strategies vary with market conditions. We estimate the advertising and pricing response of incumbents to entrants in four food industries: beer, carbonated soft drinks, ready-to-eat cereal and yogurt, and find that incumbents deviate significantly from profit maximization advertising and pricing policies. There is a U-shaped relationship between the potential market share of an entrant and incumbents’ pricing but an inverse U-shape with respect to advertising level. This means that incumbents are more likely to price higher and advertise less to deter entry when potential entrants are more competitive in terms of potential market share. Empirically, we show this to be the case in the four food industries studied.
    Keywords: Incumbents, entrants, food industries, advertising and pricing, Industrial Organization, Marketing, L11, L21, M37,
    Date: 2016
    Date: 2016
  4. By: Nicolas Frémeaux (LEMMA); Marion Leturcq (Ined)
    Abstract: Cet article étudie l’évolution des contrats de mariage, des régimes matrimoniaux et de la dot en France sur la période 1855-2010. Ces séries historiques montrent que les aspects économiques du mariage ont sensiblement changé au cours du temps. Premièrement, le contrat de mariage a été fréquemment utilisé par les couples pour se départir du régime matrimonial par défaut, que ce soit pour limiter les pouvoirs économiques du mari ou pour protéger le conjoint survivant par exemple. Deuxièmement, cet article met en évidence les changements dans la nature du patrimoine causés par le déclin des régimes de communauté et l’essor du régime de la séparation de biens depuis les années 1960. Cette individualisation du patrimoine s’oppose à la prééminence des régimes de communauté depuis la création du Code Civil en 1804. Cette évolution peut être vue comme une amélioration du statut des femmes mariées qui se sont progressivement émancipées de l’autorité du père puis de celle du mari. D’un point de vue patrimonial, nous montrons que le retour du patrimoine en France s’accompagne d’un changement dans sa nature, qui nécessiterait d’être pris en compte dans le cadre de comparaisons historiques.
    Date: 2015
    Date: 2016
  6. By: Tsoulfidis, Lefteris; Zouboulakis, Michel
    Abstract: This article presents and critically evaluates the four Greek sovereign defaults (1827, 1843, 1893 and 1932) and puts them into a historical perspective. The argument is that each and every of the defaults was not an isolated episode in the turbulent economic history of capitalism, but rather a manifestation of the internal weaknesses of the Greek economy which were magnified during the downturn phases of the long waves of 1815-1845, 1873-1896, and 1921–1940. Crucial for the precipitation of these defaults were the short-sighted and often opportunistic policies followed by the Greek governments which were eager to increase public spending based on borrowed money which lead to mounting public debt. As a consequence, the past Greek sovereign defaults are worth studying in an effort to derive useful lessons and policy conclusions for the current and also future situations.
    Keywords: Sovereign default, depressions, long waves, Greek economy
    JEL: B10 B50 F34 N14 N2 N24
    Date: 2016–05–22
  7. By: Bronk, Richard; Jacoby, Wade
    Abstract: Uncertainty is endemic to innovative economies and complex societies, but policymakers underestimate how damaging this is for many of their guiding assumptions. In particular, the discourse of best practice, "global solutions for global problems," and regulatory harmonization becomes questionable when there is substantial uncertainty about the future. This uncertainty makes it impossible to know what best practice will be and increases the danger that harmonization will result in highly correlated errors and shared analytical blind spots. The transnational harmonization of regulation has well-known advantages, but - especially in technocratic policy areas - also creates vulnerability to unexpected challenges by constraining how we think as well as homogenizing how we act. Faced with uncertainty, policymakers should be wary of monocultures in regulation, analysis, and practice, and instead focus on managing policy diversity to limit its costs. This paper's theoretical argument is grounded in philosophy, the history of ideas, and even biology. However, we also present empirical examples and consider some implications for political theory.
    Abstract: In von Innovation geprägten Ökonomien und komplexen Gesellschaften ist Unsicherheit allgegenwärtig. Politische Akteure unterschätzen systematisch, wie sehr sie ihre Leitgedanken untergräbt. Fundamentale Unsicherheit über die Zukunft stellt insbesondere den Best-Practice-Gedanken, "globale Lösungen für globale Probleme" sowie das Leitbild regulatorischer Harmonisierung infrage. Unsicherheit macht es unmöglich, vorauszusagen, was in der Zukunft Best Practice sein wird, und erhöht die Gefahr, dass sich aus Harmonisierungsbemühungen hoch korrelierte Fehler und weitverbreitete analytische blinde Flecken ergeben. Harmonisierung von Regulierung auf transnationaler Ebene hat bekannte Vorteile, jedoch schafft sie - insbesondere in technokratischen Politikbereichen - Verletzbarkeit bei unerwarteten Anforderungen, weil sie dazu führt, dass wir eingeschränkter denken und ähnlicher handeln. Politische Akteure sollten Monokulturen in Regulierung, Analyse und Praxis mit Vorsicht gegenübertreten und die Kosten politischer Diversität regelnd eindämmen. Die theoretische Argumentation dieses Discussion Papers basiert auf Gedanken aus der Philosophie, der Ideengeschichte und selbst der Biologie. Es werden jedoch auch empirische Beispiele erläutert und Implikationen für die politische Theorie diskutiert.
    Date: 2016
  8. By: Sidney G. Winter
    Abstract: This essay first reviews what Nelson and Winter were trying to accomplish when they put forward An Evolutionary Theory of Economic Change (Belknap Press, Harvard, 1982). It then does a fast-forward to controversies and contributions in the recent past, and speculates on where the intellectual enterprise might be headed from here. The issues involved in the original motivations are definitely alive and well. Aside from the review of the basic issues behind the NW project, an important theme here is that an evolutionary approach to economics entails a degree of engagement with the realities of business organization and the quest for profit that has no parallel in mainstream economics. Thus it makes sense in retrospect that the evolutionary program has proved more influential in other research fields, including strategic management, technology studies and organization theory, than it is in economics proper. Recent controversies underscore the continuing existence of a challenging research agenda featuring the interactions among the dynamic processes at different levels - individuals, firms and market environments.
    Date: 2016–05–28
  9. By: Kimbrough, Gray (University of North Carolina at Greensboro, Department of Economics)
    Abstract: A wealth of research has shown that the commutes of American women are shorter, both in time and distance, than those of American men. This study takes advantage of a large, nationally representative dataset, the American Time Use Survey (ATUS), to examine this relationship. A basic labor supply model is presented, with testable predictions about relationships between commuting time and worker characteristics that could explain the gender gap. Additionally, the detailed commuting characteristics derived from the ATUS make possible an examination of gender differences in the character of commutes, including the number, length, and type of stops along the way. Results show that women tend to make more stops between home and work. Even controlling for marital status and the presence of children, women are more likely to be accompanied by children for their commute. Moreover, the stops made by women along this journey tend to be longer than those for men. These differences in commute character necessitate the use of a methodology that accounts for stop duration in the calculation of commuting time. Blinder-Oaxaca decompositions are performed to decompose the gender commuting gap by estimating a model in which these characteristics are fully interacted with gender. Results support two previously proposed explanations for the gender commuting gap, based on gender differences in wages and types of jobs held. The evidence does not support the explanation that women's greater household responsibility contributes to the gender commuting gap.
    Keywords: commuting; gender; household travel behavior
    JEL: J16 J22 R40
    Date: 2016–05–31
  10. By: Giovanni Dosi; Maria Enrica Virgillito
    Abstract: This work, which shall contribute to the Fest "A Just Society: Honouring Joseph Stiglitz", discusses a major unifying theme in Joe Stiglitz monumental work, namely, the analysis of economies characterised by persistent learning and coordination hurdles. In his analysis Joe is in many respects a "closet evolutionist" who in fact highlighted and explored many evolutionary properties of contemporary economies in a Schumpeterian spirit. And he went further introducing genuinely Keynesian properties e.g. coordination failures and the possibility of path-dependent multiplicity of growth trajectories which are far and beyond Schumpeterian concerns. In this short essay, we shall illustrate this point with reference to some of Stiglitz works, out of many, linking them with significantly overlapping contributions from the evolutionary camp. We group them by two major themes, namely, the consequences of learning and dynamic increasing returns, and "Keynesian" coordination failures with the ensuing possibility of multiple growth paths, fluctuations, small and big crises.
    Keywords: Stiglitz, Learning, Coordination Hurdles, Growth Trajectories, Knowledge, Information
    Date: 2016–03–05
  11. By: Grashuis, Jasper; Cook, Michael
    Abstract: This paper presents a unique descriptive and empirical study of governance and performance in the U.S. agri-food industry with specific emphasis on the boards of directors of firms and cooperatives. Per the summary statistics, the average firm has more assets, more sales, and more profits, yet efficiency and profitability ratios indicate the average cooperative is superior. Using seven board and management characteristics, a three-stage least squares model is specified for two samples of 128 firms and 456 cooperatives in order to address the hypothesized endogenous nature of the governance-performance relationship. For the cooperative sample, the impact of board size on performance is estimated to be negative, while female directorship, director independence, and director ownership have a positive and significant causal relationship to various proxies of performance. Overall, in relation to financial performance, governance as proxied by board and management characteristics is concluded to be more impactful for the cooperative sample, which implies a significant difference between corporate and cooperative governance.
    Keywords: Governance, Agricultural Cooperative, Three Stage Least Squares, Comparative Study, Agribusiness, Industrial Organization, Q13, Q14, Q15,
    Date: 2016
  12. By: Thiemann, Matthias; Aldegwy, Mohamed; Ibrocevic, Edin
    Abstract: While some economists argued for macro-prudential regulation pre-crisis, the macro-prudential approach and its emphasis on endogenously created systemic risk have only gained prominence post-crisis. Employing discourse and network analysis on samples of the most cited scholarly works on banking regulation as well as on systemic risk (60 sources each) from 1985 to 2014, we analyze the shift from micro to macro-prudential thinking in the shift to the post crisis period. Our analysis demonstrates that the predominance of formalism, particularly, partial equilibrium analysis along with the exclusion of historical and practitioners' styles of reasoning from banking regulatory studies impeded economists from engaging seriously with the endogenous sources of systemic risk prior to the crisis. Post-crisis, these topics became important in this discourse, but the epistemological failures of banking regulatory studies precrisis were not sufficiently recognized. Recent attempts to conceptualize and price systemic risk as a negative externality point to the persistence of formalism and equilibrium thinking, with its attending dangers of incremental innovation due to epistemological barriers constrains theoretical progress, by excluding observed phenomena, which cannot yet be accommodated in mathematical models.
    Keywords: Banking Regulation,Systemic Risk,Formalism,Equilibrium Thinking,Discourse and Citation Network Analysis
    JEL: B40 B41 G18 G28
    Date: 2016
  13. By: Giorgio Fagiolo (Laboratory of Economics and Management (LEM)); Andrea Roventini (Laboratory of Economics and Management (Pisa) (LEM))
    Abstract: The Great Recession seems to be a natural experiment for economic analysis, in that it has shown the inadequacy of the predominant theoretical framework | the New Neoclassical Synthesis (NNS) | grounded on the DSGE model. In this paper, we present a critical discussion of the theoretical, empirical and political-economy pitfalls of the DSGE-based approach to policy analysis. We suggest that a more fruitful research avenue should escape the strong theoretical requirements of NNS models (e.g., equilibrium, rationality, representative agent, etc.) and consider the economy as a complex evolving system, i.e. as an ecology populated by heterogeneous agents, whose far-from-equilibrium interactions continuously change the structure of the system. This is indeed the methodological core of agent-based computational economics (ACE), which is presented in this paper. We also discuss how ACE has been applied to policy analysis issues, and we provide a survey of macroeconomic policy applications ( fiscal and monetary policy, bank regulation, labor market structural reforms and climate change interventions). Finally, we conclude by discussing the methodological status of ACE, as well as the problems it raises.
    Keywords: Economic policy; New neoclassical synthesis; New keynesian models; Agent based computational economics; Agent based models; Complexity theory; Great recession; Crisis
    JEL: B41 B50 E32 E52
    Date: 2016–04
  14. By: Avila-Santamaria, Jorge; Useche, Pilar
    Abstract: This study examines the intra-household bargaining its impact on the productivity of coffee and other crops functions and on the gender productivity gap, using household-level data from 615 farmers in Colombia and Ecuador. The OLS estimates and the Oaxaca-Blinder (O-B) decomposition method corroborate the hypothesis that given a gain bargaining power through the distribution factor “female participation in the intra-household decision-making” would exacerbate household productivity and the gender gap as long this bargaining is not balanced and wives do not obtain fair benefits from agricultural activities. The results also confirm that differences in observed factors between female and male-headed households are the main reason for the gender gap.
    Keywords: Gender Productivity Gap, Bargaining Power, Coffee Production, Collective Model., Consumer/Household Economics, Productivity Analysis, D13, J16, Q12,
    Date: 2016–05–25
  15. By: Piazzalunga, Daniela (University of Turin); Tommaso, Maria Laura di (University of Turin)
    Abstract: The paper examines the gender wage gap in Italy during the 2008-2012 economic crisis, using cross-sectional EU-SILC data. The gender wage gap increased from 4% in 2008 to 8% in 2012, when for most European countries the gap decreased. After 2010 the growth of the Italian gender wage gap (and its unexplained component) was particularly high in the upper part of the wage distribution. In 2010-11 a wage freeze in the public sector was introduced as an austerity measure: the average public sector premium dropped from 15% to 11%. Using counterfactual analyses, we show that the wage freeze has been one of the major causes of the growth of the gap, disproportionately affecting women, who are more likely to be employed in the public sector. This 'policy effect' accounts for more than 100% of the increase between 2009 and 2011, while other changes, if anything, would have reduced the gap.
    Keywords: gender wage gap, Great Recession, public sector premium, decomposition, counterfactual analysis
    JEL: J31 J71 J16 J45
    Date: 2016–05
  16. By: J. Ignacio Giménez-Nadal (University of Zaragoza); Lucia Mangiavacchi (Universitat de les Illes Balears); Luca Piccoli (Universitat de les Illes Balears)
    Abstract: This paper analyses the relationship between the gender division of housework time of parents, with children living in the parental home, and that of the same children when they become adults and form their own families. Using the Russia Longitudinal Monitoring Survey (RLMS), we exploit its panel structure jointly with detailed information on children and parent’s time use, to analyse the time devoted by parents during their children’s adolescence (between 1994 and 1999) and that of the same children about ten years later (from 2006 to 2009). The results suggest that a greater involvement of fathers in the domestic activities traditionally done by mothers is related to a reduction in gender inequality in their children’s future families: father’s involvement in domestic activities has a significant impact on their sons’ time spent in the same activities. These findings shed light on the persistence of parental behaviour across generations.
    Keywords: Time Use; Housework, Gender Roles, Attitudes, Intergenerational Transmission, Russia
    JEL: D13 J16 J22 P13
    Date: 2016
  17. By: Anirban Chakraborti; Dhruv Raina; Kiran Sharma
    Abstract: In the light of contemporary discussions of inter and transdisciplinarity, this paper approaches econophysics and sociophysics to seek a response to the question -- whether these interdisciplinary fields could contribute to physics and economics. Drawing upon the literature on history and philosophy of science, the paper argues that the two way traffic between physics and economics has a long history and this is likely to continue in the future.
    Date: 2016–05

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