nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2017‒05‒21
ten papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Leontief Meets Shannon - Measuring the Complexity of the Economic System By Dave Zachariah; Paul Cockshott
  2. "Pragmatism and Institutional Economics Reinterpretedï¼ An application to the analysis of modern capitalismï¼ " (in Japanese) By Tokutaro Shibata
  3. "The Two Factors of the Phases of Business Cycle " (in Japanese) We study business cycle from the theoretical perspective of Marxian economics in this paper. Marxian economists long have been investigating the cause of the crisis without paying sufficient attention to the whole dynamics of capitalism, i.e. business cycles. This paper tries to construct theoretical apparatus to capture the image of the business cycle of the capitalist economy. In section 1, we examine the texts in Capital in relation to the business cycle in order to confirm Marx’s viewpoint on the issue. Section 2 aims at constructing the theory of business cycle as phase transitions, especially focusing on Michiaki Obata’s recent attempt (M. Obata, Critical Studies on the Marxian Theory of Crisis, University of Tokyo Press, 2014) on the basis of Japanese Marxian traditions. Here we take the rate of profit (r) and the rate of accumulation (s) as two factors that determines the phases of the business cycle. In section 3, we analyse the outside of phases. We distinguish phase transition and unstable state, the combination of which would amount to crisis phenomena. In addition, the phase transition is to be classified into two: r transition and s transition. The former is led by the dynamics of the real economy and the latter is mainly caused by that of asset market. By Kei Ehara
  4. The nature of the eurocrisis. A reply to Febrero, Uxò and Bermejo By Sergio Cesaratto
  5. Uneven and Combined Confusion: On the Geopolitical Origins of Capitalism and the Rise of the West By Di Muzio, Tim; Dow, Matthew
  6. A Função Social da Propriedade e o Direito à Cidade: teoria e prática atual By Colin Crawford
  7. O Serviço Público Federal Brasileiro e a Fábula do Ataque das Formigas Gigantes By Antonio Lassance Brasília
  8. The Passage of Time, Capital, and Investment in Traditional and in Recent Neoclassical Value Theory By Fabio Petri
  9. Theory and Praxis, Theory and Practice, Practical Theory By Debailleul, Corentin; Bichler, Shimshon; Nitzan, Jonathan
  10. La inflación de la Escuela austriaca. Las implicaciones de su uso en la política económica By Harold Esteban Perdomo Ruíz

  1. By: Dave Zachariah; Paul Cockshott
    Abstract: We develop a complexity measure for large-scale economic systems based on Shannon's concept of entropy. By adopting Leontief's perspective of the production process as a circular flow, we formulate the process as a Markov chain. Then we derive a measure of economic complexity as the average number of bits required to encode the flow of goods and services in the production process. We illustrate this measure using data from seven national economies, spanning several decades.
    Date: 2017–05
  2. By: Tokutaro Shibata (Faculty of Economics, University of Tokyo)
    Abstract: The purpose of this paper is to reevaluate Pragmatism and Institutionalism as the tool of analysis of modern capitalism. In the first part, we propose a new human being model that we human beings depend on the custom and rearrange it. This new model is based on the theory of C. S. Peirce. In the second part, we argue that the transaction of incorporeal property and intangible property is the main cause of the financial business cycle and financial crisis. This argument is based on the theory of J. R. Commons.
  3. By: Kei Ehara (Faculty of Economics, University of Tokyo)
  4. By: Sergio Cesaratto
    Abstract: Febrero et al. (2017) criticise the balance of payments (BOP) view of the EMU crisis. I have no major objections to most of the single aspects of the crisis pointed out by these authors, except that they appear to underlie specific sides of the EMU crisis, while missing a unifying and realistic explanation. Specific semi-automatic mechanisms differentiate a BOP crisis in a currency union from a traditional one. Unfortunately, these mechanisms give Febrero et al. the illusion that a BOP crisis in a currency union is impossible. My conclusion is that an interpretation of the Eurozone troubles as a balance of payments (BOP) crisis provides a more consistent framework. The debate has some relevance for the policy prescriptions to solve the eurocrisis. Given the costs that all sides would incur if the currency union were to break up, austerity policies are still seen by European politicians as a tolerable price to pay to keep foreign imbalances at bay - with the sweetener of some ECB support, for as long as Berlin allows the ECB to provide it.
    Keywords: European economic and monetary union, ECB, balance of payment crisis, Target2, Euro
    JEL: E11 E12 E42 E58 F32 F33 F34 F36 N24
  5. By: Di Muzio, Tim; Dow, Matthew
    Abstract: This article offers a critique of Alexander Anievas and Kerem Nişancioğlu’s "How the West Came to Rule: The Geopolitical Origins of Capitalism". We argue that while all historiography features a number of silences, shortcomings or omissions, the omissions in "How the West Came to Rule" lead to a mistaken view of the emergence of capitalism. There are two main issues to be confronted. First, we argue that Anievas and Nişancioğlu have an inadequate and misleading understanding of 'capital' and 'capitalism' that tilts them towards a theoretical stance that comes very close to arguing that everything caused capitalism while at the same time having no clear and convincing definition of ‘capital’ or ‘capitalism’. Second, there are at least three omissions -- particular to England/Britain within a geopolitical context -- that should be discussed in any attempt to explain the development of capitalism: the financial revolution and the Bank of England, the transition to coal energy and the capitalization of state power as it relates to war, colonialism and slavery. We conclude by calling for a connected histories approach within the framework of capital as power.
    Keywords: International & Global,Money & Finance,Power,State & Government,Value & Price,Capital & Accumulation,Civilization & Social Systems,Comparative,History
    Date: 2016
  6. By: Colin Crawford
    Abstract: Este texto pretende examinar duas questões. Primeiro, as raízes intelectuais de dois conceitos celebrados e discutidos no Brasil e no mundo, especificamente a função social da propriedade – consagrada pela Constituição de 1988 (CF/1988) – e o direito à cidade – que está garantido pela Lei no 10.257, de 10 de julho de 2001, conhecida como Estatuto da Cidade. Este trabalho sugere que a união dessas duas ideias, no Brasil, é intrigante do ponto de vista intelectual. Isso porque a função social da propriedade foi delineada, em parte, como reação intelectual ao extremismo das ideias socialistas (e, em seguida, comunistas) da época, embora o direito à cidade tenha sido formulado por um intelectual marxista. Não obstante, na articulação brasileira dessas duas ideias, os dois conceitos são considerados complementares – e com sucesso. Segundo, e em uma demonstração do bem-sucedido casamento intelectual desses dois conceitos, o texto examina mais de trinta casos da jurisprudência de tribunais brasileiros em que se alegam violações do direito à cidade e à função social da propriedade. Embora exista uma percepção comum de que os tribunais brasileiros são conservadores quanto aos assuntos urbanos, esta pesquisa mostra um alto nível de conscientização acerca da função social da propriedade e do direito à cidade pelos tribunais, os quais têm garantido os respectivos direitos da população e concluído que tanto a função social da propriedade deve ser respeitada quanto o direito dos cidadãos à cidade. Em conclusão, sugere-se que, no futuro, outros setores da sociedade mobilizem-se para realizar as promessas dos referidos conceitos, usando, para tanto, as decisões favoráveis dos tribunais. This text undertakes to examine two questions. First, the text considers the intellectual roots of two celebrated and discussed concepts – in Brazil and in the world, specifically the social function of property – enshrined in the 1988 Constitution – and the right to the city, which is guaranteed by Law 10.257 of 2001 (the City Statute). This contribution suggests that the union of these two ideas in Brazil is curious from an intellectual point of view. This is because the social function of property originated, in part, as an intellectual reaction to the extremism of the socialist (and in turn, communist) ideas of the era, while the right to the city has been formulated by a Marxist intellectual. Nevertheless, in the Brazilian articulation of these ideas, the two ideas are considered complementary, and with success. Second, and in a demonstration of the successful intellectual marriage of the two ideas, the text examines more than thirty cases from Brazilian courts alleging violations of the right to the city and the social function of property. While there exists a common perception that Brazilian courts are conservative with respect to urban matters, the evidence of this research shows a high level of awareness about these concepts on the part of the courts, which defend the rights of population to them – concluding that property needs both to respect its social function and that all citizens have a right to the city. The text concludes with the suggestion, therefore, that, in the future, the mobilization in favor of these concepts needs to come from other social sectors, using the favorable court decisions to realize the aspiration of the two concepts.
    Date: 2017–03
  7. By: Antonio Lassance Brasília
    Abstract: A ideia de que o serviço público federal brasileiro seria marcado por uma tendência crônica de inchaço, característico de um clientelismo e patrimonialismo arraigados e de uma partidarização contumaz, está impregnada no senso comum. Além de mostrar evidências sobre o assunto que problematizam essa percepção vulgarizada, este texto tem o objetivo específico de tecer recomendações e propostas sobre o que fazer para superá-la. A responsabilidade de discutir o papel, a imagem e também o tamanho do Estado é um desafio crucial para que se possa avançar na oferta de serviços públicos de qualidade, com a garantia de direitos e desenvolvimento inclusivo. Propõe-se, na linha da transparência ativa, aprofundar o oferecimento de informações regulares e qualificadas a respeito do serviço público federal brasileiro, por meio de processos sistemáticos de prestação de contas; a formulação de um plano decenal de organização, qualificação e inovação do serviço público; e a criação de um observatório do serviço público. The common sense remarks that Brazilian public service has a chronic oversize, a characteristic of a patronage and entrenched patrimonialism and partisanship. This paper shows evidences that refute this common sense. In addition, the paper offers recommendations and proposals to overcome this vulgarized perception. The responsibility to discuss the role, image and also the size of Brazilian State is a strategic challenge to move forward to the improvement of public services, with the guarantee of rights and inclusive development. Aligned with the idea of active transparency, it is proposed to offer regular and proper information about Brazilian public service, through systematic processes of accountability; the formulation of a ten-year plan of organization, qualification and innovation of public service; and the creation of an observatory of public service
    Date: 2017–04
  8. By: Fabio Petri
    Abstract: With the shift from traditional analyses where capital is a single value factor of variable ‘form’ to the neo-Walrasian versions, general equilibrium theory has encountered new problems pointed out by P. Garegnani (1976, 1990): impermanence problem, price-change problem, substitutability problem radically question the right to consider neo-Walrasian equilibria as approximating the actual path of real economies. The paper briefly summarizes these problems and then concentrates on a fourth problem, the savings-investment problem, arguing that neo-Walrasian general equilibrium models assume that investment is adjusted to full-employment savings but cannot justify this assumption. The treatment of investment in intertemporal general equilibrium is subjected to a new criticism: it is shown that the tâtonnement assumes Says’ Law all along the adjustments, and determines investment in a way that would crumble if it were not assumed that consumers determine their demands for consumption goods on the basis of an assumption of full employment incomes, which is not justified outside equilibrium, and was not assumed in traditional analyses. This reinforces the absence of reasons to view neo-Walrasian equilibrium paths as sufficiently approaching actual paths. It is concluded that behind the reference to intertemporal equilibrium as the microfoundation of macro analyses there is a continuing faith in traditional neoclassical time-consuming adjustment mechanisms, based on the old and untenable conception of capital that the shift to neo-Walrasian equilibria intended to do without.
    Keywords: investment, intertemporal general equilibrium, capital, Garegnani
    JEL: D50 E22 B21
  9. By: Debailleul, Corentin; Bichler, Shimshon; Nitzan, Jonathan
    Abstract: This working paper contains an intervention by Corentin Debailleul and an extended reply by Shimshon Bichler and Jonathan Nitzan. The exchange was first posted on the Capital as Power Forum in January 2016. Debailleul’s original questions are articulated at greater length here, while Bichler and Nitzan’s reply is reproduced as is.
    Keywords: Power,Production,Resistance,Revolution,Business Enterprise,Capital & Accumulation,Class,Conflict & Violence
    Date: 2016
  10. By: Harold Esteban Perdomo Ruíz
    Abstract: La teoría propuesta por la Escuela austriaca determina que la inflación no se ve afectada por el aumento en el nivel general de precios, sino que, se presenta por una variación de la masa monetaria sobre la variación del PIB. En este sentido, el documento busca encontrar esta medida de inflación para Colombia e interpretar, según el ciclo económico austriaco, las crisis presentadas en el periodo 1991-2011.
    Keywords: Inflación, Escuela austriaca, ciclo de negocios, masa monetaria, PIB
    JEL: B53 E31 E32
    Date: 2017–05–10

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