nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2018‒01‒29
fourteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Labor Market Imperfections, Markups and Productivity in Multinationals and Exporters By Dobbelaere, Sabien; Kiyota, Kozo
  2. The transformation of post-socialist capitalism – from developmental state to clan state? By Sallai, Dorottya; Schnyder, Gerhard
  3. Which Accounting Rules for Economic and Social Sustainable Development? Engaging Critically with IFRS Adoption in the EU. By Palea, Vera; Biancone, Paolo Pietro
  4. Women’s Empowerment, the Gender Gap in Desired Fertility, and Fertility Outcomes in Developing Countries By Matthias Doepke; Michèle Tertilt
  5. Trois questions à la théorie de la régulation par ceux qui ne l’ont pas fondée By Jean-Pierre Chanteau; Pascal Grouiez; Agnès Labrousse; Thomas Lamarche; Sandrine Michel; Martino Nieddu; Julien Vercueil
  6. Evolutionary dynamics of the cryptocurrency market By Abeer ElBahrawy; Laura Alessandretti; Anne Kandler; Romualdo Pastor-Satorras; Andrea Baronchelli
  7. On a Constructive Theory of Markets By Steven D. Moffitt
  8. Vulnérabilité énergétique et mobilité quotidienne : quelle mesure ? By Damien Verry; Kuscha Dy; Jean-Pierre Nicolas
  9. Institutional Economics: A Sketch of Economic Growth Policy By Walter Buhr
  10. Henri Fayol. Performativity of his ideas and oblivion of their creator By Hervé Dumez
  11. The laws of imitation and invention: Gabriel Tarde and the evolutionary economics of innovation By Faridah Djellal; Faïz Gallouj
  12. Otras formas de medir el bienestar: una propuesta para el tercer milenio By Manfredi, Marisol
  13. Will wealth become more concentrated in Europe? By Stefan Ederer; Miriam Rehm
  14. Economic precariousness: A new channel in the housing market cycle By Philip Arestis; Ana Rosa Gonzales-Martinez

  1. By: Dobbelaere, Sabien (Vrije Universiteit Amsterdam); Kiyota, Kozo (Keio University)
    Abstract: This paper examines the links between the internationalization mode of firms and market imperfections in product and labor markets. We develop a framework for modelling heterogeneity across firms in terms of (i) product market power (price-cost markups), (ii) labor market imperfections (workers' bargaining power during worker-firm negotiations or firm's degree of wage-setting power) and (iii) revenue productivity. We apply this framework to analyze whether the pricing behavior of firms in product and labor markets differs across firms that engage in different forms of internationalization. Engagement in international activities is found to matter for determining not only the type of imperfections in product and labor markets but also the degree of imperfections. Clear differences in behavior between firms that serve the foreign market either through exporting or through FDI are observed. Being an exporter introduces allocative inefficiencies in product as well as labor markets as we find export status to be positively correlated with both product market power (markups) and market power consolidated on the labor supply side (workers' bargaining power). But exporting firms where search frictions are inducing wages to vary with revenue are less able to exploit wage-setting power. Firms with foreign subsidiaries, on the other hand, seem to reduce price distortions in product and labor markets. In addition, we observe heterogeneous returns to being an exporter/MNE within an industry and also discern cross-industry differences.
    Keywords: rent sharing, monopsony, price-cost mark-ups, productivity, exporting, multinational firms, panel data
    JEL: C23 D24 F14 F16 J50 L13
    Date: 2017–12
  2. By: Sallai, Dorottya; Schnyder, Gerhard
    Abstract: Various characterisations exist of the model of post-social capitalism exist. While most typologies underscore the prominent role of the state in post-socialist capitalism compared to Western economies, the literature is less clear about what exactly this role consists of. For the case of East Central Europe, some authors underscore the weakness of the state and its ‘capture’ by business interests, while others attribute to the state a benign role in successful industrial restructuring. We show that both views are of limited use to understand the phase of ‘backsliding’ that these economies are currently experiencing. We draw on anthropological models of post-socialist states that focus on elite dynamics within the state and show that this focus allows us to interpret backsliding in Hungary as a reversal of the developmental state into a clan-state.
    Keywords: State capitalism, political ties, corporate strategies, clan-state, post-socialism, autocracy
    JEL: P16 P26
    Date: 2018–01–12
  3. By: Palea, Vera; Biancone, Paolo Pietro (University of Turin)
    Abstract: The worldwide recession caused by the financial market crisis has raised widespread criticism on free stock market-based capitalism, highlighting the need for alternative ways of doing business. In the European Union, economists and institutions have begun to look back at industrial policies to implement a new way of doing business based on economic and social sustainable development, which is one of the founding principles of the European Union. This being the context, this paper discusses financial reporting regulation within the uniqueness of the EU institutional context and examines the consistency of IFRS adoption with the EU societal objectives. Specifically, the paper examines IFRS capability to support economic and social sustainable development. In doing this, not only does it provide regulators with a post-implementation overall assessment of IFRS adoption in the European Union but also with some guidance for future endorsement.
    Date: 2017–10
  4. By: Matthias Doepke (Northwestern University); Michèle Tertilt (Universität Mannheim)
    Abstract: We document evidence on preferences for childbearing in developing countries. Across countries, men usually desire larger families than women do. Within countries, we find wide dispersion in spouses’ desired fertility: there are many couples whose ideal family size differs by five children or more. This disagreement between spouses suggests that the extent to which women are empowered should matter for fertility choices. We point to evidence at both the macro and micro levels that this is indeed the case. We conclude that taking account of household bargaining and women’s empowerment in analyses of fertility is an important challenge for research.
    Keywords: women's empowerment, desired fertility, marital bargaining
    JEL: J12 J13 J16 O10
    Date: 2018–01
  5. By: Jean-Pierre Chanteau (CREG - Centre de recherche en économie de Grenoble - UGA - Université Grenoble Alpes - UPMF - Université Pierre Mendès France - Grenoble 2); Pascal Grouiez (LADYSS - Laboratoire dynamiques sociales et recomposition des espaces - UP1 - Université Panthéon-Sorbonne - UP8 - Université Paris 8, Vincennes-Saint-Denis - UPN - Université Paris Nanterre - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique); Agnès Labrousse (CRIISEA - Centre de recherche sur l'industrie, les institutions, et les systèmes économiques d'Amiens - UPJV - Université de Picardie Jules Verne); Thomas Lamarche (LADYSS - Laboratoire dynamiques sociales et recomposition des espaces - UP1 - Université Panthéon-Sorbonne - UP8 - Université Paris 8, Vincennes-Saint-Denis - UPN - Université Paris Nanterre - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique); Sandrine Michel (ART-Dev - Acteurs, Ressources et Territoires dans le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVD - Université de Perpignan Via Domitia - UM3 - Université Paul-Valéry - Montpellier 3 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique); Martino Nieddu (REGARDS - Reims Economie Gestion Agro Ressources DurabilitéS - EA 6292 - URCA - Université de Reims Champagne-Ardenne); Julien Vercueil (Inalco - Institut National des Langues et Civilisations Orientales)
    Date: 2016–06–27
  6. By: Abeer ElBahrawy; Laura Alessandretti; Anne Kandler; Romualdo Pastor-Satorras; Andrea Baronchelli
    Abstract: The cryptocurrency market surpassed the barrier of \$100 billion market capitalization in June 2017, after months of steady growth. Despite its increasing relevance in the financial world, however, a comprehensive analysis of the whole system is still lacking, as most studies have focused exclusively on the behaviour of one (Bitcoin) or few cryptocurrencies. Here, we consider the history of the entire market and analyse the behaviour of 1,469 cryptocurrencies introduced between April 2013 and June 2017. We reveal that, while new cryptocurrencies appear and disappear continuously and their market capitalization is increasing (super-)exponentially, several statistical properties of the market have been stable for years. These include the number of active cryptocurrencies, the market share distribution and the turnover of cryptocurrencies. Adopting an ecological perspective, we show that the so-called neutral model of evolution is able to reproduce a number of key empirical observations, despite its simplicity and the assumption of no selective advantage of one cryptocurrency over another. Our results shed light on the properties of the cryptocurrency market and establish a first formal link between ecological modelling and the study of this growing system. We anticipate they will spark further research in this direction.
    Date: 2017–05
  7. By: Steven D. Moffitt
    Abstract: This article is a prologue to the article "Why Markets are Inefficient: A Gambling 'Theory' of Financial Markets for Practitioners and Theorists." It presents important background for that article --- why gambling is important, even necessary, for real-world traders --- the reason for the superiority of the strategic/gambling approach to the competing market ideologies of market fundamentalism and the scientific approach --- and its potential to uncover profitable trading systems. Much of this article was drawn from Chapter 1 of the book "The Strategic Analysis of Financial Markets (in 2 volumes)" World Scientific, 2017.
    Date: 2018–01
  8. By: Damien Verry (Cerema Direction Territoires et Ville - Centre d'Etudes et d'Expertise sur les Risques, l'Environnement, la Mobilité et l'Aménagement - Direction Territoires et Ville - Cerema - Centre d'Etudes et d'Expertise sur les Risques, l'Environnement, la Mobilité et l'Aménagement); Kuscha Dy (Cerema - Centre d'Etudes et d'Expertise sur les Risques, l'Environnement, la Mobilité et l'Aménagement); Jean-Pierre Nicolas (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Cet article traite de la mesure de la vulnérabilité énergétique des ménages telle que la met en évidence l’enquête performance de l’habitat, équipements, besoins et usages de l’énergie (Phébus). Il se concentre d’abord sur la validation de ce que l’enquête peut apporter en matière de vulnérabilité liée aux mobilités quotidiennes en s’attachant à montrer la difficulté à prendre en compte les possibilités d’adaptations et les éventuelles privations des ménages dans ce domaine. Il explore ensuite les caractéristiques des ménages sensibles aux prix de l’énergie tout à la fois dans leur logement et pour leurs déplacements, pour montrer que cette double vulnérabilité est liée à des situations spécifiques que des analyses sur les vulnérabilités logement ou mobilité pris séparément ne révèlent pas.
    Keywords: Vulnérabilité énergétique,mobilité quotidienne,enquête Phébus,Mobilité des ménages
    Date: 2017
  9. By: Walter Buhr
    Keywords: economic growth, growth policy, growth theory, capacity effects, endangering the future, EU-integration, biology, infrastructure, constitutional model (von Hayek), assignment of infrastructural measures
    JEL: D78 H54 J10 J24 K10 O10 P11
    Date: 2018
  10. By: Hervé Dumez (i3-CRG - Centre de recherche en gestion i3 - Polytechnique - X - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Henri Fayol formulated one of the first theories of management and allows us to see how one of the first scientific approaches of management could or could not perform management practices. Therefore, Fayol is particularly interesting from the point of view of performativity (Callon, 1998, 2007, MacKenzie et al., 2007, Muniesa, 2014). The case is all the richer because it presents the rare characteristic of a direct confrontation between two rival theories, his and Taylor's, at the level of this process of performativity. In the1920s, a battle was going on in France and in Europe between the Fayol's ideas and Taylor's ones, especially at the level of public management. In the short term, Taylor won this battle of performativity and Fayol lost it. In the long term, Fayol's ideas have shaped modern management practices.
    Abstract: Henri Fayol a formulé l’une des premières théories en management, ce qui peut nous permettre d’étudier la manière dont le management peut ou non « performer » les pratiques. De ce point de vue, Fayol fournit un cas d’étude de la performativité particulièrement intéressant. Ce cas est d’autant plus riche qu’il présente la caractéristique extrêmement rare d’une confrontation directe entre deux théories rivales qui, l’une et l’autre, cherchent à modifier les pratiques managériales. En effet, dans les années 1920, une bataille s’est déroulée en France et en Europe entre la théorie de Fayol et celle de Taylor, essentiellement sur le terrain du management public. À court terme, c’est Taylor qui a emporté la lutte de performativité. À long terme, les idées de Fayol ont marqué sans doute plus profondément les pratiques managériales.
    Keywords: Taylor,management theories,performativity,felicity conditions.,Fayol , Taylor , théories managériales , performativité , conditions de félicité.
    Date: 2018–01
  11. By: Faridah Djellal (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille, Sciences et Technologies - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique); Faïz Gallouj (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille, Sciences et Technologies - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique)
    Date: 2017
  12. By: Manfredi, Marisol
    Abstract: En el presente trabajo se analizan cuatro índices sintéticos de bienestar y su respectiva pertinencia para elaborar rankings de países latinoamericanos. En los últimos años se han generado desde los países centrales distintas medidas multidimensionales de bienestar, que incluyen tanto aspectos objetivos como subjetivos, para comparar la situación y evolución de los países. En el análisis se destaca que la mayoría parte de un concepto de bienestar amplio como el enfoque de las capacidades de Sen, aunque la cantidad de dimensiones e indicadores difiere en cada propuesta. Por otra parte, al analizar las correlaciones de Tau B de Kendall y Rho de Spearman, se observa que los rankings latinoamericanos difieren sustancialmente entre cada una de estas propuestas. En este sentido, tomando como medidas de referencia de bienestar objetivo al Índice de Desarrollo Humano y de bienestar subjetivo a la Satisfacción con la Vida Promedio, se comprueba la gran dispersión de resultados, incluso por fuera de esos rankings. Se concluye sobre la importancia de elaborar medidas de bienestar particulares para cada nación.
    Keywords: Bienestar; Medición; América Latina;
    Date: 2017–12
  13. By: Stefan Ederer; Miriam Rehm
    Abstract: We develop and calibrate an analytical growth model in the neo-Kaleckian tradition with an endogenous wealth distribution and differential returns to wealth between workers and capitalists. We show that a long-run equilibrium allows for non-zero wealth owned by workers, even as the model contains the ?triumph of the rentier? predicted by Piketty?s r > g as a special case. The model?s calibration to ten European countries shows that the distribution of wealth is likely to become more unequal in all cases, barring political countermeasures.
    Date: 2017
  14. By: Philip Arestis; Ana Rosa Gonzales-Martinez
    Abstract: Demographic and institutional elements as important drivers of the housing market should not be neglected since it is not only financial and monetary elements that matter in the case of the housing market. In this context, one relationship, which still remains unclear, is the relationship between the housing and the labour markets. Some research has been under-taken to support the hypothesis that high rates of homeownership lead to high unemploy-ment via increases in the reservation wage. However, further research is needed to address the possible implications of the institutional settings of the labour market in the dynamics of the housing market. The aim of this paper is to bring some light on the link between both markets. In particular, this contribution explains how the housing cycle could be ?amplified? via a new channel, i.e. economic precariousness, which is closely related to job insecurity. Subsequently, we provide evidence in the case of five developed economies, Ireland, the Netherlands, Spain, the United Kingdom and the United States, over the period 1985-2013.
    Keywords: Economic precariousness, Job insecurity, Labour markets, House prices, Cointegration techniques.
    JEL: C22 R31
    Date: 2017

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