nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2017‒10‒08
thirteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. The Political Economy of State Regulation : The Case of the English Factory Acts By Katherine A. Moos
  2. The measurement of labour content : a general approach By Naoki Yoshihara; Roberto Veneziani
  3. Norwegian and Romanian green cluster experiences for a digital era By Raluca-Ioana Iorgulescu; Carmen Beatrice Păuna; Marioara Iordan; Tiberiu Diaconescu; Gabriela Bilevski; Thomas Brekke; Ole Henrik Gusland; Lasse Berntzen
  4. Dutch Municipalities are Becoming Greener: Some Political and Institutional Explanations By Raymond (R.H.J.M.) Gradus; Elbert (E.) Dijkgraaf
  5. Lost in Transition? Drivers and Barriers in the Eco-Innovation Road to the Circular Economy By Ana de Jesus; Sandro Mendonça
  6. Is there a Link between Profit Share Rate of Participation Banks and Interest Rate?[:] The Case of Turkey By Korkut, Cem; Özgür, Önder
  7. "Greenwashing and Its Impact on Consumer Confidence – Case Study of Slovak Republic" By Jana Kliestikova
  8. "Negotiation with Patriarchy in Women’s Lives: A Case Study in a Malaysian Public University " By Azman Azwan Azmawati
  9. "Business Model in Islamic Perspective: Practising of Baitul Maal Wattamwil (BMT) UGT Sidogiri East Java Indonesia " By Achsania Hendratmi
  10. Green Marketing vs. Greenwashing. How to protect against Negative Impact of Greenwashing? By Margareta Nadanyiova
  11. Institutions et ordre politique dans le modèle économique algérien By Rachid Mira
  12. Neoliberal Redistributive Policy : The U.S. Net Social Wage in the 21st Century By Katherine A. Moos
  13. The Philosophy of Debt Alexander DOUGLAS, Abingdon: Routledge, 2016. 164 pp By Louis Larue

  1. By: Katherine A. Moos (Department of Economics, University of Massachusetts Amherst)
    Abstract: This paper proposes a theory of why the state enacted social policy that regulated the length of the working day in 19th century industrial England. This paper will argue that, far from being capable of self-regulation, the capitalist labor market during Britain’s industrial revolution is best conceptualized as consisting of two major social coordination problems resulting from conflicting interests between and within capital and labor. Left unregulated, this dual social coordination problem caused the overexploitation of labor, with dire consequences for both the capitalist and working classes. The reason why this coordination problem could not self-correct was because the wage-labor bargain contained the externality of unwaged household labor. The existence of this externality became deleterious to firms’ profitability and workers’ survival, especially given the high levels of female labor force participation. This social coordination problem justified and required state regulation into industrial relations. By conceptualizing protective policy as the solution to a dual social coordination problem caused by conflicting interests among heterogeneous firms and workers, this paper extends the Polanyian framework with an explicit theory of exploitation based on the classical theory of competition and a feminist emphasis on social reproduction and unwaged labor.
    Keywords: English Factory Legislation, Social Coordination Problem, Game Theory, Labor Policy, Regulation, Hours of Work, Child Labor, Female Labor Force Participation
    JEL: B54 C72 J88 N3
    Date: 2017
  2. By: Naoki Yoshihara (University of Massachusetts Amherst); Roberto Veneziani (Queen Mary University of London)
    Abstract: This paper analyses the theoretical issues related to the measurement of labour content for general technologies with heterogeneous labour. A novel axiomatic framework is used in order to formulate the key properties of the notion of labour content and analyse its theoretical foundations. The main measures of labour content used in various strands of the literature are then characterised. Quite surprisingly, a unique axiomatic structure can be identified which underlies measures of labour aggregates used in such diverse fields as neoclassical growth theory, input-output approaches, productivity analysis, and classical political economy.
    Keywords: labour content, labour productivity, technical change, axiomatic analysis.
    JEL: D57 J24 O33 D46
    Date: 2017
  3. By: Raluca-Ioana Iorgulescu (Institute for Economic Forecasting, Romanian Academy); Carmen Beatrice Păuna (Institute for Economic Forecasting, Romanian Academy); Marioara Iordan (Institute for Economic Forecasting, Romanian Academy); Tiberiu Diaconescu (Institute for Economic Forecasting, Romanian Academy); Gabriela Bilevski (Institute for Economic Forecasting, Romanian Academy); Thomas Brekke (University College of Southeast Norway, Norway); Ole Henrik Gusland (University College of Southeast Norway, Norway); Lasse Berntzen (University College of Southeast Norway, Norway)
    Abstract: Addressing climate change through the reduction of fossil resources dependency requires the transition from fossil-based industrial production to a bio-based (green) industrial structure. The development of bio-based industry clusters might be part of the solution. This paper introduces the ‘bioeconomy’ concept and the Triple Helix model that are useful when examining the development of green industries clusters in the emerging digital era; the Smart City model might promote new ways to create profitable and sustainable businesses. Examples of good practices and clusters for green industries from Norway are provided and some success stories including Romanian firms are presented.
    Keywords: green industry, bioeconomy, bio-based industry cluster, triple helix model, smart cities, Romania
    JEL: L86 Q55 Q57
    Date: 2017–07
  4. By: Raymond (R.H.J.M.) Gradus (School of Business and Economics, Vrije Universiteit Amsterdam; Tinbergen Institute, The Netherlands); Elbert (E.) Dijkgraaf (Erasmus)
    Abstract: This paper analyzes whether Dutch municipalities became greener between 1999 and 2014 by investigating whether they implement different unit-based pricing systems. Based on their incentive, systems are ranged from green ('weight' ) to less green ('volume' ), or not green ('flat rate' ). In one-third of the municipalities, shifts took place, with 83 percent becoming greener and 17 percent less green. Political fragmentation (measured in three ways) plays a key role in explaining these shifts. There is less evidence for political motivation. Particularly, Conservative Liberals are not in favor of unit-based pricing, whereas Social Liberals are in favor. In addition, municipalities in rural and shrinking areas are more in favor of unit-based pricing.
    Keywords: local government; unit-based waste pricing; greener; less green; ideological motivation
    JEL: D72 H76 H79
    Date: 2017–09–22
  5. By: Ana de Jesus (CENSE - Universidade Nova de Lisboa, Lisbon, Portugal); Sandro Mendonça (Instituto Universitário de Lisboa (ISCTE-IUL), Business Research Unit (BRU-IUL), Lisboa, Portugal; Research Unit on Complexity and Economics (UECE-ISEG), Lisboa, Portugal; Business, SPRU, University of Sussex, Brighton, UK)
    Abstract: Understanding which drivers and barriers exist in the development of a Circular Economy (CE) is a relevant and timely endeavour. The aim of this paper is to contribute to this debate by analysing evidence regarding the different factors helping and hampering the development of a CE. Specifically, this paper focuses on the eco-innovation (EI) pathway towards a CE, and tries to coordinate available but fragmented findings regarding how “transformative innovation” can foster this transition while removing obstacles to sustainability. Drawing upon a new corpus of both academic and non-academic literature, this work offers a framework for analysis, as well as an evidence-based survey of the challenges, for a green structural change of the economy. We argue that the combination of the innovation systems’ view with the more recent “transformation turn” in innovation studies may provide an appropriate perspective for understanding the transition to a CE. Ultimately, the paper aims to capitalise on these insights to contribute to the design of policy guidelines and organisational strategies.
    Keywords: circular economy; eco-innovation; barriers; drivers; survey
    Date: 2017–09
  6. By: Korkut, Cem; Özgür, Önder
    Abstract: Today, the sensitive side of national economies is financial sector. The main reason for this sensitivity is financial crises. This situation has increased the demand and orientation for Islamic finance as a substitute for the modern financial system. The Islamic finance is discussed as a real solution to financial crises because the Islamic finance methods and applications depend on real economic activities. Both this case and the distance that is taken by Muslim countries in recent years has increased the share of Islamic banking/finance in the world. Thus, it has been a long debate in Islamic finance literature to investigate the presence of dependency between profit share rate settled by participation banks and deposit interest rate offered in conventional banking. In this study, variables that affect profit share rate of participation banks and deposit interest rate of conventional banks are examined over the period between January 2006 and May 2015 in Turkey. OLS method is constructed and empirical results are pointed out that interest rate on government security and foreign exchange rate are significantly effective on participation banks’ profit share rate. In addition, the profitability of conventional banks, government security, and foreign exchange rate are significantly effective on deposit interest rate settled by conventional banks. The main reason for this link between conventional interest rate and profit share rate arises with the domiance of murabahah, simple buy and sell with term sale transactions, at Islamic financial institutions. The interest rate is a benchmark for participation banks to determine the profit share rate. To get rid of this dependency, Islamic financial institutions may tend towards mudarabah transactions.
    Keywords: Islamic banking and finance, participation banks, banking system, rate of returns, profit share rate, interest
    JEL: E43 E44 G00 P43 P50
    Date: 2017–06–01
  7. By: Jana Kliestikova ("Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovak Republic" Author-2-Name: Margareta Nadanyiova Author-2-Workplace-Name: "Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovak Republic")
    Abstract: "Objective – This paper is focused on the topic of greenwashing and its impact on consumer confidence in specific conditions of Slovak republic. Nowadays, consumer confidence is mainly recognized as economic indicator measuring the interpretation of the current economic environment by consumers and their expectations for the future. In presented paper, we analyse greenwashing as a possible source of discontent. Greenwashing is a negative phenomenon of green marketing activities realised in the scope of corporate social responsibility. Methodology/Technique – First, green characteristics of Slovak consumers are analysed in context of Hofstede cultural dimensions of Slovak republic. Subsequently, there is evaluated realised questionnaire survey dedicated to the analysis of greenwashing impact on consumer confidence. Then, the relationship between greenwashing and consumer confidence in Slovak market, is detected. Findings – Results showed that attitude of authority has an impact on consumer confidence and the greenwashing has not got an impact on buying behavior of Slovak consumers. Novelty – It has a vital importance to analyze socio-cultural profile of the nation and in accordance with obtained results highlight the importance of environmental education of the society. "
    Keywords: Green Marketing; Greenwashing; Corporate Social Responsibility; Consumer Confidence.
    JEL: D11 E21 M31
    Date: 2017–03–05
  8. By: Azman Azwan Azmawati (Centre for Research on Women and Gender (KANITA), Universiti Sains Malaysia, Malaysia. Author-2-Name: Noraida Endut Author-2-Workplace-Name: Centre for Research on Women and Gender (KANITA), Universiti Sains Malaysia, Malaysia. Author-3-Name: Intan Hashimah Mohd Hashim Author-3-Workplace-Name: Centre for Research on Women and Gender (KANITA), Universiti Sains Malaysia, Malaysia. Author-4-Name: "Nor Hafizah Selamat" Author-4-Workplace-Name: Centre for Research on Women and Gender (KANITA), Universiti Sains Malaysia, Malaysia. Author-5-Name: Kelvin Ying Author-5-Workplace-Name: Centre for Research on Women and Gender (KANITA), Universiti Sains Malaysia, Malaysia.)
    Abstract: "Objective – While women make up almost 65% of undergraduates in public universities in Malaysia, only in the last three years their labour force participation rates have gone beyond the 50% mark. In addition, women form less than 20% of the legislature and Cabinet of Ministers in Malaysia. What pushes women in their achievements in education and what factors pull them back in other areas? How do patriarchal gender norms underpin their ability and decisions in life’s choices and how have they understood and negotiated these norms? This paper aims to explore these questions through narratives of women in a public university. Methodology/Technique – The paper is based on Focus Group Discussions (FGDs) with 12 women who are staff and postgraduate students of the university. The respondents were divided into two groups: one consisting of the university’s academic and administrative staff and the other postgraduate students. Separate discussions were conducted for each group. The discussions were transcribed and analysed. Findings – Findings show that women have confidence in their ability to contribute effectively and in the same manner as men in different spheres of their lives such as work, home and community. However, often they have had to negotiate their ways around various beliefs, practices and norms about the superiority of men in society. Novelty – The study researches factors that affects woman achievements in life."
    Keywords: Gender roles and Characteristic, Masculinity, Patriarchy
    JEL: J16 J18
    Date: 2017–02–27
  9. By: Achsania Hendratmi (Universitas Airlanga, Indonesia. Author-2-Name: Mega Ayu Widayanti Author-2-Workplace-Name: Universitas Airlanga, Indonesia.)
    Abstract: "Objective – The purpose of the research is to explore, to investigate, and to develop a business model in Islamic perspective in microfinance BMT UGT Sidogiri Indonesia. Methodology/Technique – The research developed by qualitative research with a single case study. The content analysis used as the method to analyze the data describes analytic, intuitive, interpretative, textual and strict textual analysis approaches. Findings – The main finding that the framework Islamic business model in perspective Islam proposed previously can be well understanding and applied in BMT UGT Sidogiri. The result showed that there three main building in developing of an Islamic business model consist of the business foundation, business design, and business development. Novelty – The model can be used to optimize the potential business model of Islam in BMT UGT Sidogiri and other microfinance in Indonesia in the future."
    Keywords: "Islamic Business; Business Model; Islamic Business Construct; Islamic Business Aims; Baitul Maal Wattamwil (BMT)."
    JEL: K20 M21
    Date: 2017–03–16
  10. By: Margareta Nadanyiova (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovak Republic Author-2-Name: Jana Kliestikova Author-2-Workplace-Name: Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovak Republic)
    Abstract: "Objective – Following paper deals with the essence of green marketing, green consumers and green strategies. It also defines greenwashing, different types of greenwashing, the seven sins of greenwashing, greenwashing index and negative impact of greenwashing. Based on this are outlined measures to protect against negative impact of greenwashing. Methodology/Technique – The study carried out with reviewing literature. Findings – The ways to avert the negative impacts of greenwashing includes: increasing awareness through media and education, elimination of greenwashing by companies, inclusion of greenwashing into the legislation, blacklisting of companies using greenwashing Novelty – The study suggests solutions for negative impacts of greenwashing."
    Keywords: Green Marketing; Greenwashing; Eco-friendly; Social Responsibility; Environment.
    JEL: D11 E21 M31
    Date: 2017–03–18
  11. By: Rachid Mira (Centre d'Economie de l'Université de Paris Nord (CEPN))
    Abstract: Notre étude sur longue période de l’économie politique algérienne, prend appui sur l’approche régulationniste inspirée du cadre d’analyse néoréaliste de Bruno Amable et Stefano Palombarini (2009) et des concepts néo institutionnalistes de Mushtaq Khan (2000, 2009) : elle considère que le développement économique de l’Algérie s’opère dans un contexte donné de distribution du pouvoir et d’institutions variées formelles et informelles, qui structurent des accords ou équilibres politiques sur la base de groupes sociaux soutenant la coalition au pouvoir et captant en retour des rentes distribuées. La confluence ou divergence d’intérêts politiques et économiques conditionne la réussite ou l’échec de politiques économiques et industrielles favorables à la croissance et au développement. Les institutions joueraient dans le processus de développement un rôle fondamental.
    Keywords: Political economy, Algeria, institutions, political power, development
    JEL: E02 H11 N17 N47 N57 O11 O14 O23
    Date: 2017–04
  12. By: Katherine A. Moos (Department of Economics, University of Massachusetts Amherst)
    Abstract: In this paper, I examine the trends of fiscal transfers between the state and workers during 1959-2012 to understand the net impact of redistributive policy in the United States. This paper presents original net social wage data from and analysis based on the replication and extension of Shaikh and Tonak (2002). The paper investigates the appearance of a post-2001 variation in the net social wage data. The positive net social wage in the 21st century is the result of a combination of factors including the growth of income support, healthcare inflation, neoliberal tax reforms, and macroeconomic instability. Growing economic inequality does not appear to alter the results of the net social wage methodology. Classification-JEL: H5, E62, E64, B5
    Keywords: fiscal policy, net social wage, neoliberalism, social spending, taxation
    Date: 2017
  13. By: Louis Larue (UNIVERSITE CATHOLIQUE DE LOUVAIN, Hoover Chair of economic and Social Ethics)
    Abstract: In "The Philosophy of Debt", Alexander Douglas claims that we collectively have a duty to sustain the institution of debt. I discuss this claim on two grounds. First, I argue that one would need a more thorough examination of the sorts of goods the institution of debt is supposed to sustain. Not all debts are beneficial, and not all forms of production are desirable. Second, I contend that individual agents may not always be able to go into debt. It is not at all clear, therefore, that they have a duty to promote and sustain this institution.
    Keywords: Debt, Economic Ethics, History of Economic Thought, Economic History
    JEL: B5 E5 Z13
    Date: 2017–10–02

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