|
on Heterodox Microeconomics |
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Issue of 2016‒09‒25
24 papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Céline Bourbousson (LEST - Laboratoire d'économie et de sociologie du travail - Université de la Méditerranée - Aix-Marseille 2 - Université de Provence - Aix-Marseille 1 - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper deals with the potentiality of a local dynamics of regulation. We proceed by the case study of a territorial cluster for economic cooperation (PTCE), which aims at structuring and developing eco-construction sector in two French departments (04 and 05). PTCE is a real public policy instrument for social economy which has been created on theoretical contributions for territorial economy. The category of local tends to be the privileged scale of construction and analysis of the project. Thus, actors’ speech often refer to local stakes or monocausal explanations to justify the obstacles to the project. We adopt by contrast a macro vision by mobilising the Regulation theoretical framework in order to analyse the PTCE as a meso-system, embedded in a regime of accumulation. This approach enables to understand how the PTCE is coerced by institutional arrangements that regulate the sector, and to question the meso-macro dialectic and its capacity to structure and develop an eco-construction sector in the studied territory. |
| Abstract: | Cet article part de la volonté de questionner la potentialité d’une dynamique locale de régulation. Il s’appuie sur l’étude de cas du pôle territorial de coopération économique (PTCE) éco-matériaux 04-05, qui cherche à structurer les filières de l’écoconstruction dans ces deux départements. Véritable instrument de politique publique en faveur de l’économie sociale et solidaire (ESS), ce dispositif s’est élaboré sur les apports théoriques de l’économie territoriale. La catégorie du local est ainsi l’échelle privilégiée de la construction et de l’appréhension de la démarche. D’ailleurs, pour expliquer les freins et les écueils que rencontre le projet, les discours des acteurs font souvent référence à des enjeux locaux ou des explications monocausales. Nous entendons a contrario adopter un angle plus macro en nous appuyant sur la théorie de la régulation, pour mieux cerner le PTCE en tant que méso-système imbriqué dans un régime d’accumulation. Cet angle permet de saisir comment le PTCE est contraint par les dispositifs institutionnels qui régissent le secteur, et de questionner la dialectique méso-macro et son éventuelle capacité à structurer et développer les filières des éco-matériaux sur le territoire étudié. |
| Keywords: | Territory,Territorial clusters of economic cooperation,Regulation approach,territoire , pôle territorial de coopération économique , régulation |
| Date: | 2016–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01353659&r=hme |
| By: | Averett, Susan L. (Lafayette College); Smith, Julie K. (Lafayette College); Wang, Yang (University of Wisconsin-Madison) |
| Abstract: | This paper examines the effect of minimum wage increases on the self-reported health of teenage workers. We use a difference-in-differences estimation strategy and data from the Current Population Survey, and disaggregate the sample by race/ethnicity and gender to uncover the differential effects of changes in the minimum wage on health. We find that white women are more likely to report better health with a minimum wage increase while Hispanic men report worse health. |
| Keywords: | minimum wage, self-reported health, teenagers |
| JEL: | I10 I18 J15 J16 |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10185&r=hme |
| By: | Stéphane Jaumier (Grenoble École de Management (GEM)) |
| Abstract: | Knowledge of how democracy and equality are practically achieved within member-based organisations such as cooperatives remains underdeveloped in the literature. In order to investigate this question, the present study is based on a piece of ethnographic work, namely one year of participant observation as a factory worker, which I conducted within a French cooperative sheet-metal factory. Pondering the presence within the cooperative of seemingly powerless chiefs, I draw on the works of French anthropologist Pierre Clastres (1934–1977) on stateless societies in order to study co-operators in their 'continual effort to prevent chiefs from being chiefs' (Clastres, 1987: 218). Three types of day-today practices appear to be central for members of the cooperative in circumventing the coalescence of power in the hands of their chiefs: a relentlessly voiced refusal of the divide between chiefs and lay members; a permanent requirement for accountability, and endless overt critique towards chiefs; and the use of schoolboy humour. The case, as analysed through a Clastrian lens, evidences a novel avenue that is conducive to avoiding the fate of oligarchisation within democratic organisations. Indeed, it shows how power can be kept at bay by being named and then embodied in a figure, who is eventually – through mostly informal practices – stripped of all authority. In addition, it suggests that our understanding of cooperation could be greatly improved if researchers' dominant focus on governance was complemented by studies anchored in the everyday experience of co-operators. |
| Keywords: | ethnography,hierarchy,worker co-operatives,Pierre Clastres,organisational democracy |
| Date: | 2016–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:hal-01366601&r=hme |
| By: | Manuela Mota; Sara Casaca |
| Abstract: | This article seeks to contribute to a more comprehensive understanding of the gender relations and the dowry system in India. It is based on a qualitative study that gave priority to the undertaking of interviews with women from different educational backgrounds living in the city of Hyderabad (South of India). The predominant perception of the interviewees is that education promotes economic and symbolic independence. The higher the educational level, the more critical accounts are found in relation to: the dowry system as a mechanism of reproduction of the low status of women and of the persistent asymmetries in gender relations; the wish to educate sons and daughters under equal conditions; and the value given to marriages based on love to the detriment of arranged ones. The main argument is that education is a fundamental source of women’s empowerment and opens up prospects for challenging the patriarchal regime, changing the status of women and leading to a more gender equal society. However,if this is to happen, then the education system (programs and curricula) needs to be congruent with gender equality, targeting both women and men in the project of challenging the dominant patriarchal structure. |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:cav:cavwpp:wp143&r=hme |
| By: | Domenica Tropeano (University of Macerata) |
| Abstract: | The paper provides an overview of the unfolding of the financialization of commodities in the 2000-2014 time frame. Different phases are described according to the positioning of the group of traders, their motivations, and the type of financial assets used to take a position in commodities. The main theme is the failure of arbitrage to level prices of similar financial assets traded in different markets. However, this failure does not depend on financing constraints suffered by arbitrageurs. Following Mirowski (2010) it is shown that arbitrage becomes a form of financial innovation rather than an equilibrating mechanism in contemporary financial markets. Historical accidents and changes in policy affect the positions of groups in the financial market game. The various strategies used are explained by creating a set of T accounts for the various groups that highlight the winners and the losers in the various phases. |
| JEL: | G10 B52 B00 |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:mcr:wpdief:wpaper00082&r=hme |
| By: | J. Silvestre,; T. Araújo; M. St. Aubyn |
| Abstract: | Macro and micro-economic perspectives are combined in an economic growth model. An agent-based modeling approach is used to develop an overlapping generation framework where endogenous growth is supported by workers that decide to study depending on their relative (skilled and unskilled) indi- vidual satisfaction. The micro perspective is based on individual satisfaction: an utility function computed from the variation of the relative income in both space and time. The macro perspective emerges from micro decisions, and, as in other growth models of this type, concerns an important allocative social decision the share of the working population that is engaged in producing ideas (skilled workers). Simulations show that production and satisfaction levels are higher when the evolution of income measured in both space and time are equally weighted. Key Words : agent modeling, education, heterogeneous human capital, economic growth, individual satisfaction. |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp192016&r=hme |
| By: | Pugno, Maurizio |
| Abstract: | The distinction made by the classical economists between necessaries and luxuries is weakened by two problems: how to draw the line between necessaries and luxuries in advanced modern economies; how to evaluate luxuries, whether positively for individual’s freedom and for the economy, or negatively because they appear unethical. This paper examines a possible way out of these problems that emerges both from Scitovsky’s approach to “human welfare” and from some overlooked insights of Marshall, Hawtrey, and Keynes, the Cambridge economists who inspired Scitovsky. The proposal is to split luxuries into two components, and to redefine them, together with necessaries, on the basis of people’s motivations and goals, as well as of the effects on well-being and on the economy. |
| Keywords: | necessaries, luxuries, Scitovsky, well-being, welfare, Marshall, Hawtrey, Keynes |
| JEL: | B20 D11 D60 I25 I31 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:73729&r=hme |
| By: | Edith Archambault (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Jean-Michel Bloch-Lainé (sans affiliation) |
| Abstract: | Ce chapitre, après avoir situé la loi du 31 juillet 2014 sur l'Economie sociale et solidaire dans son contexte reprend les définitions de l'ESS et de l'utilité sociale et s'interroge sur le périmètre ouvert de l'ESS; il montre la sancturisation des organisations faîtières de l'ESS et insiste sur les dispositions spécifiques aux associations. Dans un second temps le chapitre s'attache aux ambiguités de la loi et aux défis qu'elle pose pour les associations sanitaires et sociales: Où s'arrête l'ESS et quel est le risque d'entrisme d'entreprises lucratives pour bénéficier de ses privilèges? Quelle concurrence est attendre pour les associations médico-sociales de la part des nouvelles entreprises sociales? Quelles alliances sont possibles avec coopératives, mutuelles et fondations? |
| Keywords: | périmètre ESS,associations de santé et d'action sociale,Loi Economie sociale et solidaire,concurrence |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01217937&r=hme |
| By: | Jean-Luc Gaffard (OFCE Sciences PO et SKEMA Business School) |
| Abstract: | L’Union Européenne et plus particulièrement la zone euro se sont construites au cours du dernier quart de siècle en appliquant une doctrine économique articulée au tour de deux principes : la flexibilité des marchés de biens et du travail, la neutralité monétaire et budgétaire de l’action publique. C’est à un recul de la souveraineté des Etats auquel l’on a ainsi assisté au nom d’une certaine vision du libéralisme. Cette évolution institutionnelle est emblématique du paradoxe de la mondialisation (Rodrik 2011) qui veut que, faute d’un gouvernement mondial, la mondialisation des échanges requière une action des Etats réduite à l’application de règles intangibles édictées par la doctrine au détriment de la démocratie et des arbitrages que celle?ci implique. Il n’y aurait pas d’alternative autre que le repli à l’abri des frontières nationales permettant éventuellement de sauvegarder le principe démocratique mais au détriment de l’expansion des échanges et, possiblement, de la croissance. Pourtant, la question de la souveraineté comme celle du libéralisme ne sauraient être tranchées aussi facilement. Un débat existe qui conduit à considérer qu’une alternative au modèle du moment est possible qui rétablit les Etats dans leurs prérogatives sans qu’il faille renoncer aux bénéfices de la mondialisation. |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1620&r=hme |
| By: | Jean-Luc Gaffard (OFCE Sciences PO et SKEMA Business School) |
| Abstract: | L’économie géographique traite, principalement, de l’existence de forces centrifuges ou centripètes qui caractérisent l’évolution de l’espace économique. Nombre de travaux concluent à la prégnance de phénomènes de spécialisation des territoires et de concentration sans pour autant mettre en cause le principe de gains mutuels à l’échange interterritorial. Dans le pire des cas, la croissance serait, certes, porteuse d’inégalités de développement (et de revenus), mais ces inégalités seraient favorables à la croissance globale et au bien?être de chacun. En toute hypothèse il serait malvenu d’entraver le libre jeu du marché qui s’incarnerait dans les variations des prix et des salaires censés constituer des signaux efficaces pour allouer les ressources productives. Il serait malvenu de s’opposer aux inégalités utiles de capacités de développement ou aux changements nécessaires de localisation. Dès lors, un principe d’équité seul devrait guider des politiques régionales réduites à des politiques de transferts de revenus conçues de telle manière à ne pas porter atteinte à la croissance globale. La nouvelle économie géographique fait, toutefois, valoir la possibilité d’un développement équilibré des territoires qui correspond à la situation dans laquelle chaque territoire est le siège d’entreprises occupant une niche particulière, un ou plusieurs segments d’une industrie, et bénéficiant de rendements croissants. Spécialisation et concentration vont de pair avec des taux de croissance élevés dans chaque territoire. Les gains mutuels à l’échange peuvent être équitablement répartis. La raison souvent aléatoire d’une localisation initiale importe, alors, moins que les conditions de sa pérennité et de son renforcement. La résilience d’un territoire tient moins à des attributs intangibles, à des dotations initiales, qu’à sa capacité à absorber des chocs technologiques ou de préférences en jouant d’avantages spécifiques qui sont des avantages construits et cumulatifs dont la spécificité réside dans le fait qu’ils rendent coûteux les changements de localisation. L’action publique, en aidant à la constitution de ces avantages, concourt à cet objectif de résilience en même temps qu’elle est susceptible de concourir à une égalisation des performances territoriales. |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1621&r=hme |
| By: | Tanya Araújo; Elsa Fontainha |
| Abstract: | Gender differences in collaborative research have received little attention when compared with the growing importance that women hold in academia and research. Unsurprisingly, most of bibliometric databases have a strong lack of directly available information by gender. Although empirical-based network approaches are often used in the study of research collaboration, the studies about the influence of gender dissimilarities on the resulting topological outcomes are still scarce. Here, networks of scientific subjects are used to characterize patterns that might be associated to five categories of authorships which were built based on gender. We find enough evidence that gender imbalance in scientific authorships brings a peculiar trait to the networks induced from papers published in Web of Science (WoS) indexed journals of Economics over the period 2010-2015 and having at least one author affiliated to a Portuguese institution. Our results show the emergence of a specific pattern when the network of co-occurring subjects is induced from a set of papers exclusively authored by men. Such a male-exclusive authorship condition is found to be the solely responsible for the emergence that particular shape in the network structure. This peculiar trait might facilitate future network analyses of research collaboration and interdisciplinarity. Key Words : co-occurrence networks, gender, research collaboration, interdisciplinarity, bibliometrics, minimum spanning tree |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp172016&r=hme |
| By: | Becchetti, Leonardo (Associazione Italiana per la Cultura della Cooperazione e del Non Profit); Semplici, Lorenzo (Associazione Italiana per la Cultura della Cooperazione e del Non Profit); Tridente, Michele (Associazione Italiana per la Cultura della Cooperazione e del Non Profit) |
| Abstract: | We investigate with an ad hoc survey respondents’ tastes about the different corporate responsibility (CR) items typically used by CR rating agencies. The hypotheses of equal average value weights given to different CR items and equal variance (which we consider as a proxy of the inverse of consensus on the importance of an indicator) are strongly rejected by our data both in our overall suvey sample and in more homogeneous subsamples based on gender, age, education and religious beliefs. We as well frequently reject the hypothesis that value weights for the same CR item are the same across different subpopulations in gender subsamples since women attribute significantly higher weights than men to many CR items when we do not correct for young respondents’ oversampling. |
| Keywords: | corporate responsibility; gender effect; environmental sustainability |
| JEL: | D21 I31 L21 M14 |
| Date: | 2016–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:ris:aiccon:2016_152&r=hme |
| By: | Artz, Benjamin (University of Wisconsin, Oshkosh); Goodall, Amanda H. (Cass Business School); Oswald, Andrew J. (University of Warwick) |
| Abstract: | Women typically earn less than men. The reasons are not fully understood. Previous studies argue that this may be because (i) women 'don't ask' and (ii) the reason they fail to ask is out of concern for the quality of their relationships at work. This account is difficult to assess with standard labor-economics data sets. Hence we examine direct survey evidence. Using matched employer-employee data from 2013-14, the paper finds that the women-don't-ask account is incorrect. Once an hours-of-work variable is included in 'asking' equations, hypotheses (i) and (ii) can be rejected. Women do ask. However, women do not get. |
| Keywords: | matched employer-employee data, female discrimination, wages, gender |
| JEL: | J31 J71 |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10183&r=hme |
| By: | VU, Tien Manh |
| Abstract: | We examined the gender gap between wives and husbands with regard to time spent on unpaid housework using interaction terms between the appearance of home appliances and gender among 36,480 Vietnamese households. We found the gender gap is persistent regardless of the number of co-residing children, age cohorts, household size and income, and working status of the couples. In household fixed-effect estimations, the gender gap of time increased with the appearance of home appliances such as gas cookers. One of the main reasons is the reduction in the probability of men participating in housework tasks related to home appliances. |
| Keywords: | home appliances, gender gap, housework, time use, housework division, home appliances, gender gap, housework, time use, housework division, D13, J16, J22 |
| Date: | 2016–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:agi:wpaper:00000115&r=hme |
| By: | André K. Anundsen (Norges Bank (Central Bank of Norway)) |
| Abstract: | With the aid of econometric modeling, I investigate whether rapidly increasing house prices necessarily imply the existence of a bubble that will eventually burst. I consider four alternative econometric methods to construct indicators of housing market imbalances for the US, Finland and Norway. The four approaches are used to study if house prices in these countries in the 2000s can be explained by underlying economic fundamentals, or whether the developments are best characterized by bubble-dynamics. For the US, all measures unanimously suggest a bubble in the early to mid 2000s, whereas current US house prices are found to be aligned with economic fundamentals. Only one of the measures indicate imbalances in the Finnish housing market, while none of the measures suggest a bubble in Norway. |
| Keywords: | Cointegration, Explosive Roots, Housing Bubbles |
| JEL: | C22 C32 C51 C52 C53 G01 R21 |
| Date: | 2016–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:bno:worpap:2016_11&r=hme |
| By: | Geneviève Fontaine (ERUDITE - Laboratoire ERUDITE) |
| Abstract: | Peu d'analyses portent sur le processus d'émergence des communs et sur les éléments favorisant leur construction. Pourtant, la question des conditions favorables à l'émergence des communs est belle et bien présente dans les travaux le plus tardifs d'Ostrom. Sans remettre en cause l'approche institutionnaliste des communs proposée par Ostrom et reprise par Coriat, il s'agit de focaliser l'attention sur les conditions favorisant l'apparition de ces actions collectives instituantes autour de ressources communes. A partir du cadre d'analyse théorique et des études empiriques d'Ostrom, nous proposons une grille de lecture des conditions favorables à l'émergence de communs. Notre grille de lecture est ensuite utilisée pour analyser l'émergence intentionnelle d'un commun autour de la ressource foncière au sein du Pôle Territorial de Coopération Economique d'économie solidaire TETRIS (Transition Ecologique Territoriale par la recherche et l'innovation Sociale) basé à Grasse (06). Mots clés Commun – Ostrom-émergence – conditions favorables-PTCE |
| Keywords: | Commun,Ostrom ,émergence,conditions favorables,PTCE |
| Date: | 2016–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01338360&r=hme |
| By: | Ciprian Ionescu (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes, UGA - Université Grenoble Alpes); Hélène Leriche (Orée. Entreprises, territoires et environnement); Michel Trommetter (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes, INRA - Institut National de la Recherche Agronomique) |
| Abstract: | This work belongs to a research process which has started 10 years ago and whose targets are, on the one hand to show that economic activities ar not only a source of impacts but that they depend first and foremost on biodiversity and ecosystem services, and on the other hand, to co-build approaches which aim at managing these relationships of interdependence, not as a constraint, but as a challenge within the strategy of economic actors. |
| Keywords: | Environmental accounting,Biodiversity,Biodiversity Protection,Ecosystem,Ecosystemic services,Firm,Environmental Economics |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01340449&r=hme |
| By: | Fundelizzi, Stefano |
| Abstract: | An economic model of how a Marxist state should work |
| Keywords: | Communism, Marxist theory of state, economic model |
| JEL: | P2 P20 P21 P22 P23 P24 P25 P26 P27 P28 P29 P3 P30 P31 P32 P33 P34 P35 P36 P37 P39 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:73845&r=hme |
| By: | Naaman, Michael (Christensen Associates); Sickles, Robin (Rice University) |
| Abstract: | Power-law distributions have a wide range of applications including physics, economics, and biology. We derive a new family of densities with support on the real line which obeys a broken power law called the volcano distribution. An estimation procedure is also outlined. The volcano density is very flexible as it can be unbounded or bimodal. It allows for an infinite mean or an undefined mean. The complexity of this distribution calls for a novel semiparametric estimation approach which we apply to stock market returns data. |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:riceco:15-020&r=hme |
| By: | Alexander Smirnov |
| Abstract: | The proposed model is aimed to reveal important patterns in the behavior of a simplified financial system. The patterns could be detected as regular cycles consisting of debt bubbles and crises. Financial cycles have a well defined structure and form periodic sequences along the axis of credit expansion while retaining stochastic nature in terms of time. |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1609.05055&r=hme |
| By: | G. Dosi (Scuola Superiore Sant'Anna); M.C. Pereira (University of Campinas); A. Roventini (Scuola Superiore Sant'Anna OFCE Sciences PO); M.E. Virgillito Author-Workplace-Name Scuola Superiore Sant'Anna |
| Abstract: | This paper is meant to analyse the e ects of labour market structural reforms by means of an agent-based model. Building on Dosi et al. (2016b) we introduce a policy regime change characterized by a set of structural reforms on the labour market, keeping constant the structure of the capital- and consumption-good markets. Con rming a recent IMF report (Jaumotte and Buitron, 2015), the model shows how labour market structural reforms reducing workers' bargaining power and compressing wages tend to increase (i) unemployment, (ii) functional income inequality, and (iii) personal income inequality. We further undertake a global sensitivity analysis on key variables and parameters which confirms the robustness of our findings. |
| Keywords: | Labor market structural reforms, Income distribution, Inequality, Unemployment, Long Run Growth |
| JEL: | C63 E02 E12 E24 O11 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1624&r=hme |
| By: | David Michael Rietzke; Yu Chen |
| Abstract: | We study a principal-agent model wherein the agent is better informed of the prospects of the project, and the project requires both an observable and unobservable input. We show (1) Performance pay may not be optimal, even if output is the only informative signal of an essential input; (2) Total surplus tends to be higher if one input is unobservable than if both inputs are observable; and (3) Bunching may arise amongst low and intermediate types. We explore the implications for push and pull programs used to encourage R&D activity, but our results have applications beyond this context. |
| Keywords: | Pay for Performance, Moral Hazard, Adverse Selection, Observable Action, Principal-Agent Problem, Grants, Prizes |
| JEL: | D82 D86 O31 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:127987900&r=hme |
| By: | Sitthiyot, Thitithep |
| Abstract: | This paper discusses serious drawbacks of existing knowledge in macroeconomics and finance in explaining and predicting economic and financial phenomena. Complexity science is proposed as an alternative approach to be used in order to better understand how economy and financial market work. This paper argues that understanding characteristics of complex system could greatly benefit financial analysts, financial regulators, as well as macroeconomic policy makers. |
| Keywords: | Macroeconomics; Finance; Complexity Science |
| JEL: | A10 E00 G00 |
| Date: | 2015–07–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:73753&r=hme |
| By: | Chen, Daniel L. |
| Abstract: | Scholars since Hume and Smith have debated possible causal connections between market experiences and moral beliefs. Of particular interest today are questions related to incentive designs: for example, could the structure of employment affect moral attitudes? Here, I study the impact of employment structure on three normative issues: utilitarian versus deontological values, other-regarding preferences, and charitable donations. Through a labor market intermediary, I randomly assigned workers to competitive or piece-rate work conditions. The groups were given a moral question posing a conflict between utilitarian and deontological values, and offered a choice to make a charitable donation. The moral question was accompanied by an illustration that made salient outgroup considerations. Four results emerge: Competitively structured work experiences increased deontological value choices, deontological commitments towards outgroup members, and donations by productive workers relative to non-productive workers; and the effects on deontological value choices differ over economic development. I reconcile these results with a formal model based on experimental findings in affective moral psychology. When competition is perceived as unfair or unfamiliar, negative affect triggers deontological value choices, but when it is perceived as familiar or even fun, positive affect increases utilitarian attitudes. If utilitarian attitudes lead to market-oriented policies, multiple steady states arise where some countries sustain high utilitarianism, market-orientation, and economic growth, and vice versa. This perspective helps explain the intellectual history of the doux commerce thesis. |
| Keywords: | Normative commitments, deontological value choices, other-regarding preferences, charitable donations, moral trolley problem |
| JEL: | B51 C93 D63 D64 J15 K00 |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:tse:iastwp:30834&r=hme |