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on Heterodox Microeconomics |
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Issue of 2016‒09‒11
fifteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Veneziani, Roberto; Yoshihara, Naoki |
| Abstract: | This paper analyses the normative and positive foundations of the theory of exploitation as the unequal exchange of labour (UEL). The key intuitions behind all of the main approaches to UEL exploitation are explicitly analysed as a series of formal claims in a general economic environment. It is then argued that these intuitions can be captured by one fundamental axiom - called Labour Exploitation - which defines the basic domain of all UEL exploitation forms and identifies the formal and theoretical framework for the analysis of the appropriate definition of exploitation. |
| Keywords: | Exploitation, Unequal Exchange of Labour, axiomatic analysis |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:652&r=hme |
| By: | Muhammad Umar Boodoo |
| Abstract: | This paper studies the strategic interaction between employee stakeholders, in particular labor unions, and top management, and evaluates the effect of the two parties’ inherent competitive rent-seeking behavior on CEO pay. Using a panel of firms listed on the S&P/TSX composite index, this paper finds that CEO compensation withstood the financial crisis despite lower and even negative corporate performance. Further, heavily-unionized companies were associated with higher CEO pay in terms of non-equity elements such as salary and pension allocations. The presence of unions had no observed effect in reducing bonuses, stock options, and restricted stock units. These findings have implications for the debate on income inequality, and the power of unions to bring about change. |
| Keywords: | Executive labor market; Economic inequality; Executive pay; Labor union; Great Recession; Union wage effects |
| JEL: | J33 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:67557&r=hme |
| By: | Dr. Thomas Drosdowski (GWS - Institute of Economic Structures Research); Britta Stöver (GWS - Institute of Economic Structures Research) |
| Abstract: | Taxation of incomes generated by economic agents is a main pillar of redistributive social policies undertaken by the government in Germany. The apparent lack of sufficient adjustments of the tax schedule during the period 2005-2015 has led to higher average annual growth rates in taxes than in income. This development has triggered a public dispute about alleged bracket creep, i.e. inflationary-caused nominal income increase pushing taxable income into higher tax bracket, which apparently poses higher tax burden especially among households with small and medium incomes. The aim of this paper is an analysis of the effects of a permanent proportional income tax reduction on the total economy as well as on the income situation of different household types, against the background of repeated public demands for tax reliefs resulting from increased tax burdens in recent years. The taxation scenario is not calculated on a microeconomic level but uses a macro-econometric approach instead, in order to give a broad overview over a wide variety of effects. By combining the macro-econometric input-output model INFORGE with the socio-economic system DEMOS containing household-specific income and consumption information we can assess how a simple fiscal measure would affect the economy, different household types, and inequality. It can be shown that a tax reduction has a positive aggregate effect throughout the economy in all years of the tax reform. Working households with high incomes profit most from simple tax cuts. Non-working households, however, are faced with comparably smaller positive deviations in income, which exacerbates the projected distance between household incomes and contributes to further increasing inequality. |
| Keywords: | taxation, scenario analysis, economic effects, inequality, private housholds |
| JEL: | E27 E62 E64 H2 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:gws:dpaper:16-8&r=hme |
| By: | Dario Guarascio; Federico Tamagni |
| Abstract: | In this work we test if persistent innovators, defined according to different innovation activities (R&D, product and process innovation, patenting) grow more than other firms, and if innovation persistence can contribute to explain the so far little evidence in favor of persistence in growth itself. We exploit a somewhat uniquely long-in-time dataset tracing a representative sample of Spanish manufacturing firms over the period 1990-2012. This allows to overcome the difficulties in the definition of persistent innovators traditionally based on innovation surveys. Our findings, against the expectations, support that persistent innovators do not generally outperform the other firms. First, they do not grow more, and actually we find that, despite some variation across innovation persistence indicators, they even grow less than other firms in the top-quantiles of the growth rates distribution, that is among high-growth firms. Further, persistent innovators do not show higher growth persistence than other firms, in none of the quantiles of the growth rates distribution, independently from the innovation persistence indicator considered. |
| Keywords: | firm growth, innovation persistence, product and process innovation, R\&D, patents, quantile regressions |
| Date: | 2016–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2016/31&r=hme |
| By: | Rodríguez Enríquez, Corina; Pautassi, Laura C. |
| Abstract: | Vivir una vida libre de violencia es un derecho humano de las mujeres y de las niñas y como tal requiere de respuestas estatales integrales que garanticen su ejercicio y que superen una mirada de asistencia sobre las víctimas y su familia. Se ha reiterado que en América Latina y el Caribe existe una importante brecha entre la dimensión y gravedad de las situaciones de violencia de género y las respuestas estatales, tanto a nivel de las políticas públicas como en el ámbito judicial. La evidencia empírica, cuando se encuentra disponible, da cuenta de una variedad de instrumentos normativos, jurídicos, recursos de protección, medidas de reparación que no siempre garantizan su efectiva y oportuna aplicación. Sin embargo, numerosas iniciativas se presentan en los países, a instancias de decisores políticos, de organizaciones de mujeres o de la sociedad civil que buscan dar respuestas ante la gravedad y urgencia que la situación demanda. El presente documento parte por considerar políticas implementadas recientemente en Argentina, para desarrollar distintos ejercicios de estimación del costo fiscal de implementar estas políticas, con el objetivo de: i) identificar las posibilidades y dificultades de contar con la información para construir este tipo de ejercicios; ii) estimar el esfuerzo fiscal necesario para llevarla adelante; iii) contrastar, a los efectos de aproximar la magnitud de dicho esfuerzo fiscal con el monto de otras partidas presupuestarias; iv) realizar propuestas en relación con los costos socio-económicos que implicaría no adoptar medidas y políticas públicas preventivas. |
| Keywords: | MUJERES, VIOLENCIA SEXISTA, ASPECTOS SOCIALES, ASPECTOS ECONOMICOS, COSTOS, INGRESOS, POLITICA FISCAL, ADMINISTRACION DE JUSTICIA, POLITICA SOCIAL, WOMEN, GENDER-BASED VIOLENCE, SOCIAL ASPECTS, ECONOMIC ASPECTS, COSTS, INCOME, FISCAL POLICY, ADMINISTRATION OF JUSTICE, SOCIAL POLICY |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col040:40483&r=hme |
| By: | Lucía Pérez Fragoso; Corina Rodríguez Enríquez |
| Abstract: | Gender budgeting is an approach to fiscal policy and administration that integrates considerations of women’s equality and advancement into the budget. Latin American countries have undertaken diverse gender budgeting initiatives, most of them addressing public expenditures. This paper surveys and assesses some key initiatives, including those in Mexico, Mexico City, Ecuador, Bolivia, and El Salvador, and briefly summarizes others. The five key initiatives offer different perspectives on how countries approach gender budgeting. We find that these initiatives are contributing to the reduction of gender inequality and the advancement of women in Latin America, though there is scope to strengthen them. |
| Keywords: | Fiscal policy;Mexico;Bolivia;Ecuador;El Salvador;Latin America;Western Hemisphere;Gender;Budgeting;Women's social conditions;Women's economic conditions;Cross country analysis;Gender budgeting, fiscal policy and administration, Latin America, gender inequality |
| Date: | 2016–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:16/153&r=hme |
| By: | Makarewicz, T.A. (University of Amsterdam) |
| Abstract: | The paper studies the e ect of information networks on learning to forecast in an asset pricing market. Financial traders have heterogeneous price expectations, are influenced by friends and seem to be prone to herding. However, in laboratory experiments subjects use contrarian strategies. Theoretical literature on learning in networks is scarce and cannot explain this conundrum (Panchenko et al., 2013). The paper follows Anufriev et al. (2014) and investigates an agent-based model, in which agents forecast price with a simple general heuristic: adaptive and trend extrapolation expectations, with an additional term of (dis-)trust towards their friends' mood. Agents independently use Genetic Algorithms to optimize the parameters of the heuristic. The paper considers friendship networks of symmetric (regular lattice, fully connected) and asymmetric architecture (random, rewired, star). The main finding is that the agents learn contrarian strategies, which amplifies market turn-overs and hence price oscillations. Nevertheless, agents learn similar behavior and their forecasts remain well coordinated. The model therefore o ers a natural interpretation for the di erence between the experimental stylized facts and market surveys. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ams:ndfwpp:15-08&r=hme |
| By: | A.B. Atkinson (Nuffield College, Oxford; London School of Economics; and INET at the Oxford Martin School); A. Casarico (Università Bocconi; CESifo; and Dondena Centre for Research on Social Dynamics and Public Policy); S. Voitchovsky (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; and Graduate Institute of International and Development Studies, Geneva) |
| Abstract: | In the recent research on top incomes, there has been little discussion of gender. How many of the top 1 and 10 per cent are women? A great deal is known about gender differentials in earnings, but how far does this carry over to the distribution of total incomes, bringing selfemployment and capital income into the picture? We investigate the gender divide at the top of the income distribution using tax record data for a sample of eight countries with individual taxation. We show that women are under-represented at the top of the distribution. They account for between a fifth and a third of those in the top 10 per cent. Higher up the income distribution, the proportion is lower, with women constituting between 14 and 22 per cent of the top 1 per cent. The presence of women in the top income groups has generally increased over time, but the rise becomes smaller at the very top. As a result, the gradient with income has become more marked: the under-representation of women today increases more sharply. Examination of the shape of the income distribution by fitting a Pareto distribution shows that at the end of the period women disappear faster than men as one moves up the income scale in all countries. In this sense, there appears to be something of a “glass ceiling” for women. In the case of Canada, Denmark, Norway and New Zealand, there appears to have been a reversal over time, with the slope of the upper tail having been steeper for women in the past. In seeking to explain this, we highlight the role of income composition, where we show that there have been significant changes over time, underlining the fact that it is not sufficient to look only at earned income. |
| Keywords: | Top income groups, gender, income composition |
| JEL: | D31 J16 |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2016n27&r=hme |
| By: | Halan, Monika (National Institute of Public Finance and Policy); Sane, Renuka (ISI, Delhi) |
| Abstract: | We use an audit methodology where auditors ask for tax-saving instruments from banks and document the disclosures made on product features at the time of sale. In private sector banks with high sales incentives, the high commission product is recommended. In public sector banks, where there are deposit mobilisation targets, fixed deposits are recommended. Banks rarely make voluntary disclosures on product features. When specifically requested, information provided is inaccurate or incomplete. Our results demonstrate the challenges of mandating disclosures when buyers have little understanding of the relevance of product characteristics, and distributors are themselves ignorant or influenced by incentives. |
| Keywords: | Retail Finance ; Banks ; Consumer-Protection ; Disclosure ; Sales Incentives ; India |
| JEL: | D14 D18 G21 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:16/174&r=hme |
| By: | Ncube, Free; Cheteni, Priviledge; Ncube, Prince; Muzawazi, Strugle |
| Abstract: | South Africa has shown major interest in the climate change discourse since the Kyoto Protocol in 1997. Climate change has moved from an issue of environmental concern to an issue of commercial significance. The purpose of this study was to investigate the impact of climate change on agriculture output in South Africa. The impact of climate change on output is examined in this study using the ordinary least squares (OLS) method. The estimated econometric model regresses temperature, rainfall, labour and capital on GDP in the agricultural sector. The results suggest that there is a negative relationship between climate change and agricultural output in South Africa. |
| Keywords: | Impact, OLS, South Africa, Climate Change, Agricultural Output. |
| JEL: | Q1 Q5 Q54 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:73489&r=hme |
| By: | Muhammad Umar Boodoo |
| Abstract: | This paper compares the CSR profiles of companies operating under the same macroeconomic institutions but with different levels of union density. Drawing from stakeholder and neo-institutional theories that distinguish between internal and external actions, this paper finds that companies initially have to substitute internal for external CSR. After some experience dealing with unions, companies can complement both actions. There is perhaps a reinforcement of mutual trust and loyalty, and has implications for managerial prerogatives. |
| Keywords: | Corporate Social Responsibility; Unions; Stakeholder theory |
| JEL: | J33 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:67558&r=hme |
| By: | Nikulin, Alexander Michailovich (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Trotsuk, Irina Vladimirovna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kurakin, A. A. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Sobolev, A. V. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | Currently there is no objective and reliable data on the number of Russian cooperatives, about what they do and what are the prospects of their development. According to the Minister of Agriculture of the Russian Federation, "co-operation does not perform the tasks conferred on it... There is no objective reason to talk about the architecture and operating system. Cooperatives are scattered, fragmented, chaotic and often developing completely unchecked." Meanwhile, the food security of the country, especially against the backdrop of the current food embargo requires an integrated approach. Despite the fact that this problem will be resolved, primarily due to large-scale farms, the potential for agricultural cooperation in Russia is undervalued and is used not enough. In addition, co-operation, involving a multitude of rural households, can help overcome the traditional "disease" of the Russian village: poverty, unemployment, apathy, depopulation. |
| Keywords: | Russia, cooperatives, agriculture |
| Date: | 2016–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:768&r=hme |
| By: | Romina Kazandjian; Lisa L Kolovich; Kalpana Kochhar; Monique Newiak |
| Abstract: | We show that gender inequality decreases the variety of goods countries produce and export, in particular in low-income and developing countries. We argue that this happens through at least two channels: first, gender gaps in opportunity, such as lower educational enrollment rates for girls than for boys, harm diversification by constraining the potential pool of human capital available in an economy. Second, gender gaps in the labor market impede the development of new ideas by decreasing the efficiency of the labor force. Our empirical estimates support these hypotheses, providing evidence that gender-friendly policies could help countries diversify their economies. |
| Keywords: | Gender;Income inequality;Economic growth;Women;Labor force participation;Human capital;Education;Low-income developing countries;Gender inequality, female labor force participation, economic diversification, economic growth, human capital, low-income and developing countries. |
| Date: | 2016–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:16/140&r=hme |
| By: | Matthias Verbeck (University of Marburg); Elisabeth Schulte (University of Marburg) |
| Abstract: | We study a setting in which one or two agents conduct research on behalf of a principal. The agents’ success depends on effort and the choice of a research technology that is uncertain with respect to its quality. A single agent has no incentive to deviate from the principal’s preferred technology choice. In the multiagent-setting researchers pursue individual rather than overall success which yields a preference for the most promising technology. We show that a mechanism that deters this bias towards mainstream research always entails an efficiency loss if researchers are risk-averse. Our results suggest that there is too little diversity in delegated research. |
| Keywords: | Moral hazard, Hidden action, Incentives in teams, Delegated research, Academic organization, Diversity in research |
| JEL: | D82 D83 D86 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201620&r=hme |
| By: | Veneziani, Roberto; Yoshihara, Naoki |
| Abstract: | A dynamic general equilibrium model that generalises Roemer's [23] economy with a global capital market is analysed. An axiomatic analysis of the concept of unequal exchange (UE) between countries is developed at general dynamic equilibria. The class of UE definitions that satisfy three fundamental properties - including a correspondence between wealth, class and UE exploitation status - is completely characterised. It is shown that this class is nonempty and a definition of UE exploitation between countries is proposed, which is theoretically robust and firmly anchored to empirically observable data. The full class and UE exploitation structure of the international economy is derived in equilibrium. |
| Keywords: | Exploitation, classes, unequal exchange, international economy |
| JEL: | D63 F02 B51 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:647&r=hme |