nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2016‒12‒11
nineteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Estimating Spatial Employment Impacts of the CAP through Social Accounting Analysis By Skuras, Dimitris; Psaltopoulos, Demetrios
  2. Is the Allocation of Time Gender Sensitive to Food Price Changes? An Investigation of Hours of Work in Uganda By Campus, Daniela; Giannelli, Gianna Claudia
  3. A basis for Sraffian ecological economics. A comment on Martins' "Ecosystems, strong sustainability and the classical circular economy" By Yoann Verger
  4. Intermediate input linkage and carbon leakage By Zhang, Zengkai; Zhang, ZhongXiang
  5. L'hétérodoxie monétaire est-elle supérieure à la théorie de la valeur ? Quelques éléments de débat à partir des théories de Benetti-Cartelier et d'Aglietta-Orléan By Nicolas Piluso
  6. What is Meant by 'Replication' and Why Does It Encounter Resistance in Economics? By Maren Duvendack; Richard Palmer-Jones; W. Robert Reed
  7. Beware: a woman is looking after your car. By Magdalena Blanco; José María Cabrera; Alejandro Cid
  8. Price Rigidity, Inflation and the Distribution of Relative Price Changes By Sartaj Rasool Rather; S. Raja Sethu Durai; M. Ramachandran
  9. Enfoque de capacidades en Amartya Sen: Aproximaciones y reflexiones By Leon Tamayo, Dorian Fernando
  10. Price-Setting in Mexico and the Real Effects of Monetary Shocks By Kochen Federico
  11. Conflitos, Mobilizações e Participação Institucionalizada: a relação entre a sociedade civil e a construção de grandes obras de infraestrutura By Rebecca Neaera Abers
  12. Making China the transition to a low-carbon economy: Key challenges and responses By Zhang, ZhongXiang
  13. Neoclassical Economics as a Method of Scientific Research Program : A review of existing literature By Brahmachari, Deborshi
  14. Price rigidity in Turkey: evidence from micro data By M. Utku Özmen; Orhun Sevinç
  15. Transfer Mispricing as an Argument for Corporate Social Responsibility By Asongu, Simplice A; Nwachukwu, Jacinta C.
  16. Exploring structural transformation: a labour-based analysis of the evolution of French agricultural holdings 2000-2010 By Bignebat, Céline; Bosc, Pierre-Marie; Perrier-Cornet, Philippe
  17. My Baby Takes the Morning Train: Gender Identity, Fairness, and Relative Labor Supply Within Households By Lepinteur, Anthony; Flèche, Sarah; Powdthavee, Nattavudh
  18. Health, Human Capital and Domestic Violence By Nicholas W. Papageorge; Gwyn C. Pauley; Mardge Cohen; Tracey E. Wilson; Barton H. Hamilton; Robert A. Pollak
  19. Analyzing Food Supply and Distribution Systems using complex systems methodologies By Armendàriz, Vanessa; Armenia, Stefano; Atzori, Alberto Stanislao; Romano, Angelo

  1. By: Skuras, Dimitris; Psaltopoulos, Demetrios
    Abstract: This paper presents the analytical properties of Social Accounting Analyses methods, especially models based on simple and extended Social Accounting Matrices (SAM) and their application to the investigation of spatial economic interactions and flows patterns, including those associated with the spatial employment impacts of the CAP. Section 2 presents the structure, assumptions and characteristics of interregional SAMs and deals with their modeling properties, which make possible the investigation of spatial economic interactions. Section 3 presents recent developments in SAM construction and model applications relevant to the analysis of such issues, including that of CAP employment impacts. Finally, the Chapter concludes with a short critical evaluation of advantages and shortcomings of the SAM approach to analyze and interpret the determinants of the spatial distribution of economic activity and suggests future research directions.
    Keywords: Impact Assessment, General Equilibrium, Common Agricultural Policy, Rural Employment, Community/Rural/Urban Development, Labor and Human Capital, Political Economy, Public Economics, Research Methods/ Statistical Methods,
    Date: 2016
  2. By: Campus, Daniela (University of Florence); Giannelli, Gianna Claudia (University of Florence)
    Abstract: Dramatic spikes in food prices, like those observed over the last years, represent a real threat to food security in developing countries with severe consequences for many aspects of human life. Price instability can also affect the intra-household allocation of time, thus changing the labour supply of women, who traditionally play the role of 'shock absorbers'. This paper explores the nature of time poverty by examining how changes in the prices of the two major staples consumed, matooke and cassava, have affected the paid and unpaid labour time allocation in Ugandan households. We exploit the panel nature of the Uganda National Household Survey by adopting a Tobit-hybrid model. Our results show that gender differentials in the intra-household allocation of labour actually occur in correspondence with changes in food prices. We find that, overall, women work significantly more, since the additional hours women work in the labour market are not counterbalanced by a relevant reduction in their other labour activities. For men, we do not find any significant effect of price changes on hours of work.
    Keywords: food prices, labour supply, gender, Uganda
    JEL: J16 J22 J43 Q11
    Date: 2016–11
  3. By: Yoann Verger (REEDS - Centre international de Recherches en Economie écologique, Eco-innovation et ingénierie du Développement Soutenable - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines)
    Abstract: Martins (2016) recently emphasized the role that classical economics can play in building sustainability economics. In this respect, he uses Sraffa's theory of value and Sen and Nussbaum's capability theory to support his argument. My comment focuses on the part of his article concerning Sraffa's theory, and aims to refine some of Martins claims in order to avoid misunderstandings about the possibilities offered by Sraffa's theory.
    Keywords: Ecological economics,Sraffa, theory of value, environment, sustainability
    Date: 2016–11–18
  4. By: Zhang, Zengkai; Zhang, ZhongXiang
    Abstract: Climate regulations tend to target energy intensive sectors whose products are widely used in industrial production as intermediate inputs, such as electricity, and the carbon abatement may be partially offset by intermediate input-led leakage. This paper aims to examine the impact of intermediate input linkage on the carbon leakage both theoretically and empirically. We develop a Harberger-type model with an input-output linkage structure, identify four leakage effects and derive closed-form solutions for these leakage effects. For empirical simulation, we build a computable general equilibrium model of China’s economy and introduce Structural Decomposition Analysis to link both the theoretical and empirical models. When imposing a carbon price on the electricity generation sector, our results show significant carbon leakage. Our decomposition analysis further suggests that such leakage is mainly through the production substitution effect, followed by the multiplier effect. Both of the two effects are closely related to the intermediate input linkage, and thus shed some light on the importance of considering sectoral linkage when discussing the carbon leakage issue of climate policies.
    Keywords: Carbon leakage, sectoral linkage, climate regulation, general equilibrium model, production substitution effect, multiplier effect, Environmental Economics and Policy, Production Economics, Q55, Q58, Q43, Q48, O13, O31, O33, O44, F18,
    Date: 2016–09
  5. By: Nicolas Piluso (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - UT2 - Université Toulouse 2 - UPS - Université Paul Sabatier - Toulouse 3 - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Orléan, Aglietta et Cartelier, qui sont les tenants d " une « hétérodoxie monétaire », prétendent qu " il faut rejeter les théories de la valeur sur la base de deux arguments : elles ne parviennent pas à rendre compte de l " existence de la monnaie de façon pleinement satisfaisante (la fable du troc est à rejeter), et sont impuissantes à rendre compte du salariat, caractéristique essentielle du capitalisme. Nous montrons dans cet article que leur théorie économiques de la monnaie, qu " elle le revendique ou non, a recours à un postulat de la monnaie. Par ailleurs, il n " est pas sûr que la théorie de la valeur ne parvienne pas à rendre compte du salariat : tout dépend des hypothèses que l " on quant à la nature du rapport salarial et à la définition de l " échange comme rapport entre équivalents.
    Keywords: valeur,monnaie,postulat,crise,salariat
    Date: 2016–11–29
  6. By: Maren Duvendack; Richard Palmer-Jones; W. Robert Reed (University of Canterbury)
    Abstract: This paper discusses recent trends in the use of replications in economics. We identify a number of sources of progress, including the results of recent replication studies that have attempted to identify replication rates within the discipline. These studies generally find that replication rates are relatively low, though they may be higher for laboratory experiments in economics. We also identify two web-based resources for replications, the Replication in Economics wiki and The Replication Network. We then consider obstacles to undertaking replication studies in economics. Two obstacles are the lack of publishing outlets and difficulties in obtaining data and code for published studies. We identify journals that publish replication studies and that "regularly" include data and code as supplementary files for their published research. Finally, we highlight replication initiatives in psychology and political science, behind which economics appears to lag. Whether this is because the problems that beset those disciplines are less severe in economics, or because economics is more resistant to replications, is arguable.
    Keywords: Replication, data sharing, publication bias
    JEL: A1 B4
    Date: 2016–12–02
  7. By: Magdalena Blanco; José María Cabrera; Alejandro Cid
    Abstract: There has been little research on the association between behaviors, gender and usufruct rights in informal settings. Using a unique database from an underprivileged population, who informally look after cars parked in the streets, we analyze the behaviors women and men exhibit when they interact with other people in the street. We find that men tend to commit acts of physical aggression more than women when they have to defend their usufruct right. But, surprisingly, though theory and applied literature suggests the contrary, we found that women are more likely to react aggressively than men, when drivers underpay in this voluntary payment market. Building a Type Index of cuidacoches (indicator of attitude and external appearance), we explore association between aggressive behavior and this Type Index.
    Keywords: gender; poverty; self-employment; violence; aggressiveness
    JEL: I3 J16 J23
  8. By: Sartaj Rasool Rather (Madras School of Economics); S. Raja Sethu Durai (Madras School of Economics); M. Ramachandran (Department of Economics, Pondicherry University, Puducherry)
    Abstract: This study examines whether skewness of the cross sectional distribution of relative price changes is positively associated with aggregate inflation as predicted by the Menu cost model of Ball and Mankiw (1994, 1995). Further, the study examines the size and frequency of price changes across various commodities and the distribution of relative price changes. The results from highly disaggregated Indian Wholesale Price Index data suggest that the skewness of relative price changes explains a significant proportion of short-run fluctuations in aggregate inflation. More importantly, the results indicate that the average size of price increases is greater than the size of price decreases implying downward rigidity in the prices of various commodities.
    Keywords: Inflation, Skewness, Relative price changes, Menu costClassification-JEL: E30; E31; E52
    Date: 2015–08
  9. By: Leon Tamayo, Dorian Fernando
    Abstract: Este artículo se centra en el enfoque de las capacidades y sus fundamentos en el trabajo de Amartya Sen, analiza cómo se relaciona con otros enfoques éticos, y sus principales aportaciones, también se exponen diferentes teorías de capacidad desarrolladas en el enfoque de capacidades, con especial atención a la de Martha Nussbaum.
    Keywords: capacidades, funcionamientos, heterogeneidad
    JEL: D6 D63 I31 I32
    Date: 2016–11–16
  10. By: Kochen Federico
    Abstract: In this paper I use novel micro data underlying the Mexican CPI to establish stylized facts about prices in the Mexican economy. I then analyze the implications and consistency of the empirical results for the degree of monetary non-neutrality generated in both time and state-dependent pricing models. I find that the real effects of monetary shocks importantly depend on the type of nominal rigidity considered and on the treatment of sales in the statistics that are calibrated into the models.
    Keywords: Price Micro Data;Price Rigidity;Menu Cost Models
    JEL: E30 E31 E32
    Date: 2016–12
  11. By: Rebecca Neaera Abers
    Abstract: Quais as peculiaridades da participação da sociedade civil quando se trata de grandes obras? Neste estudo, esta pergunta compreende duas outras questões. Por um lado, como a sociedade civil – especialmente as comunidades vulneráveis – se organiza para conhecer, avaliar e apoiar ou contestar as grandes obras? Por outro, como operam e deveriam operar as instituições participativas formais criadas pelo Estado para processar tais preocupações, conflitos e demandas? A preocupação central deste estudo é com a capacidade do Estado de compatibilizar as políticas de desenvolvimento econômico com a inclusão social e a proteção ambiental. O trabalho começa com uma revisão da literatura internacional e nacional sobre mobilização social e participação institucionalizada em grandes obras. Em seguida, analisa processos de mobilização de comunidades afetadas por seis obras de infraestrutura. Além disso, examina o principal instrumento de participação institucionalizada utilizado em obras de grande infraestrutura: as audiências públicas do processo de licenciamento ambiental de quatro obras de infraestrutura.O trabalho conclui que a compreensão da participação das comunidades afetadas por grandes obras deve ser entendida pela lente de três variáveis: i) a singularidade da obra (a inexperiência das comunidades com obras dificulta a sua capacidade de avaliar seus impactos); ii) a temporalidade da participação (quando a participação das comunidades ocorre muito tarde no processo decisório e de forma muito breve, tende a ter pouca eficácia); e iii) a distribuição dos impactos (quando os impactos negativos afetam principalmente atores menos poderosos, a contestação é menos provável). Nos casos analisados, nem a mobilização comunitária nem o processo participativo institucionalizado causaram atrasos das obras. Pelo contrário, alguns dos conflitos detectados resultaram dos próprios atrasos e de outros problemas de má gestão. Ao mesmo tempo, a fragilidade e a superficialidade dos processos participativos formais observados depõem contra a ideia bastante disseminada de que a ampla participação atrapalha o ritmo das obras e aumentam seus custos. Infelizmente, na maior parte dos casos analisados, as comunidades foram praticamente ignoradas.
    Date: 2016–09
  12. By: Zhang, ZhongXiang
    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, Resource /Energy Economics and Policy, H23, P28, Q42, Q43, Q48, Q53, Q54, Q58,
  13. By: Brahmachari, Deborshi
    Abstract: This paper aims at a commentary on the Neoclassical Economics as a Method of Scientific Research Program which argues that many theories in Neo-Classical Economics when tested using Lakatos’ Methodology of Scientific Research Program, were not categorised as 'progressive research program'. This finds that some endogenous growth theories have now been tested by few researcher as progressive in terms of Lakatos’ Scientific Research Program.
    Keywords: Scientific Research Program, Neo-Classical Economics, evolution of theory, Research Methodology, Research methods.
    JEL: B41
    Date: 2016–01
  14. By: M. Utku Özmen; Orhun Sevinç
    Abstract: In this study we investigate the duration of consumer price spells and price change patterns for Turkey by employing a comprehensive micro price data covering around 6,000 items over four years. In detail, we analyze how long typical price spell lasts and we investigate the size, frequency, distribution and synchronization of price changes. Compared to advanced economies, a higher frequency of price changes is estimated. Findings suggest substantial heterogeneity among sub-groups in terms of frequency and synchronization indicators. The mixed evidence of both state and time-dependent pricing is also relevant for Turkey, an emerging market economy.
    Keywords: consumer prices; price spell duration; price rigidity; distribution of price changes; state and time dependent pricing
    JEL: N0
    Date: 2015–06–01
  15. By: Asongu, Simplice A; Nwachukwu, Jacinta C.
    Abstract: This article presents a case for transfer mispricing as an argument for Corporate Social Responsibility (CSR). The argument builds on the position that in order to compensate for potential loss of brand image and reputation, Multinational Companies (MNCs) would be more socially responsible when they are operating in countries where the legislation and laws in place are not effective at identifying and sanctioning transfer mispricing. We first discuss the dark side of transfer pricing (TP), next we present the nexus between TP and poverty and finally we advance arguments for CSR in transfer mispricing. While acknowledging that TP is a legal accounting practice, we argue that in view of its poverty and underdevelopment externalities, the practice per se should be a solid justification for CSR because it is also associated with schemes that deprive developing countries of capital essential for investments in health, education and development programmes. Therefore CSR owing to TP cannot be limited to a strategic management approach, but should also be considered as some kind of social justice because of associated transfer mispricing practices. We further argue that, CSR by multinational corporations could incite domestic companies to comply more willingly with their tax obligations and/or engage in similar activities. Whereas, traditional advocates of CSR have employed concepts such as reputation, licence-to-operate, sustainability, moral obligation and innovation to make the case for CSR, the present inquiry extends this stream of literature by arguing that TP and its externalities are genuine justifications for CSR. We consolidate our arguments with a case study of Glencore and the mining industry in the Democratic Republic of Congo.
    Keywords: Corporate Social Responsibility; Transfer pricing; Extreme poverty
    JEL: F20 H20 M14 O11
    Date: 2016–08
  16. By: Bignebat, Céline; Bosc, Pierre-Marie; Perrier-Cornet, Philippe
    Abstract: The question of farm size has long been a concern in the agricultural economics literature. The observation of a long-lasting persistence of so-called small farms drew the attention of numerous researchers. The size of farms is often approximated by the farm area in hectares or the added value and gross margin. We propose to investigate the opportunity to use labour (family labour and hired, permanent and seasonal, wage labour) as an entry point for a typology of agricultural holdings, with an application on French data from the Census collected in 2000 and 2010. We show that two dynamics are at stake: an evolution towards off-farm labour for the smallest farms relying on family labour; a convergence towards a model based on hired wage labour for the largest family farms.
    Keywords: Agricultural labour, farm size, France, Agribusiness, Labor and Human Capital,
    Date: 2016
  17. By: Lepinteur, Anthony (Paris School of Economics); Flèche, Sarah (CEP, London School of Economics); Powdthavee, Nattavudh (University of Warwick)
    Abstract: The current study argues that women's decision to leave the labor force at the point where their income exceeds their husbands' income may have less to do with gender identity norm (Bertrand et al., 2015) and more to do with what women think is a fair distribution of relative working hours within the household. Using three nationally-representative data, we show that life satisfaction is significantly lower among women whose work hours exceed their partners, holding the share of wife's income constant. Men, by contrast, are not affected by working longer or fewer hours than their wives.
    Keywords: fairness, gender identity, life satisfaction, relative income, working hours, labor supply
    JEL: I31 J12 J22
    Date: 2016–11
  18. By: Nicholas W. Papageorge; Gwyn C. Pauley; Mardge Cohen; Tracey E. Wilson; Barton H. Hamilton; Robert A. Pollak
    Abstract: We study the impact of health shocks on domestic violence and illicit drug use. We argue that health is a form of human capital that shifts incentives for risky behaviors, such as drug use, and also changes options outside of violent relationships. To estimate causal effects, we examine chronically ill women before and after a medical breakthrough and exploit differences in these women's health prior to the breakthrough. We show evidence that health improvements induced by the breakthrough reduced domestic violence and illicit drug use. Our findings provide support for the idea that health improvements can have far-reaching implications for costly social problems. The policy relevance of our findings is compounded by the fact that both domestic violence and illicit drug use are social problems often seen as frustratingly impervious to interventions. One possible reason is that the common factors that drive them, such underlying health or labor market human capital, are themselves very persistent over time. Our study provides a unique test of this hypothesis by examining what happens when factors underlying violence or drug use exogenously shift due to a medical technological advancement. Our findings suggest that both violence and drug use could be reduced by improving women's access to better healthcare.
    JEL: I12 J24
    Date: 2016–12
  19. By: Armendàriz, Vanessa; Armenia, Stefano; Atzori, Alberto Stanislao; Romano, Angelo
    Abstract: This paper discusses how a complex-systems perspective can shed light on the analysis of complex food-systems meeting urban food needs. The common features between complex systems and Food Supply and Distribution Systems (FSDS) are explored. A brief review of the major approaches - agent-based models (ABM), social network analysis (SNA), and system dynamics (SD) - is developed in order to make an assessment on the analysis performance of different complex system methodologies while dealing with FSDS. After sifting out the most suitable methodology for the study of FSDS, a system archetype analysis of the FSDS dynamics is elicited from the methodological guide of FAO, the United Nations Food and Agriculture Organization. To finalize, three basic points for the analysis of FSDS obtained from the current research are explained. This content is part of the content leading the SD updates to FAO’s FSDS methodological guide.
    Keywords: System Dynamics, Agent-Based Modeling, Social Network Analysis, rural and urban dynamics, Agribusiness,
    Date: 2015–05

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