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on Heterodox Microeconomics |
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Issue of 2018‒07‒09
eighteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Zhou, Peng (Cardiff Business School); Dixon, Huw David (Cardiff Business School) |
| Abstract: | This paper systematically integrates microdata and macrodata analysis of price rigidity in mon-etary economics. We explore the mechanism of price-setting using survival based approaches in order to see what factors drive the observed price rigidity. We find significant effects of macroeconomic variables such as inflation and output, which should be purged off before cal-ibrating any macroeconomic models. The microdata findings are then used to estimate and simulate a heterogeneous price-setting model with a generalised Calvo goods sector and a gen-eralised Taylor service sector, which improves the performance in matching macrodata persistence. |
| Keywords: | Price Rigidity, Price Setting Behaviour, Microdata, Survival Analysis, Heterogeneous Agent Model, Persistence Puzzle |
| JEL: | C41 D21 E31 E32 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:cdf:wpaper:2018/18&r=hme |
| By: | Victor Stango (University of California-Davis); Joanne Yoong (University of Southern California, National University of Singapore, and the London School of Hygiene and Tropical Medicine); Jonathan Zinman (Dartmouth College and NBER) |
| Abstract: | Behavioral economics lacks empirical evidence on some foundational questions. We adapt standard elicitation methods to measure multiple behavioral factors per person in a representative U.S. sample, along with financial condition, cognitive skills, financial literacy, classical preferences, and demographics. Individually, behavioral factors are prevalent, distinct from other decision inputs, and correlate negatively with financial outcomes in richly-conditioned regressions. Conditioning further on other B-factors does not change the results, validating common practice of modeling B-factors separately. Corrections for low task/survey effort modestly strengthen the results. Our findings provide bedrock empirical foundations for behavioral economics, and offer methodological guidance for research designs. |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:mrr:papers:wp378&r=hme |
| By: | Montt, Guillermo E. |
| Abstract: | Air pollution affects workers ability to work by damaging their own health, but also by damaging the health of their dependents. This paper draws on 20 years of air pollution and employment data from Santiago, Chile, a highly polluted metropolis, particularly in fall and winter months. The paper finds that though air pollution does not reduce overall hours worked, it does so for women and particularly for women with children. A week with pollution at 100 µg/m3, common for Santiago, doubles the gender difference in working hours. It is hypothesised that children, unable to go to school, must stay home and cared for. Findings do not hold for elderly care, probably reflecting the fact that both sick and healthy dependent elderly are cared for at home and their main family caregiver is generally out of the labour force to begin with. These findings suggest that air pollution may contribute to gender inequality through the gendered-biased distribution of care responsibilities. Pollution brings to evidence gender inequalities in care and, given the gendered nature of care and the geographic distribution of pollution, contributes to enhance gender and geographic labour market inequalities. Environmental policy is agender equality policy as well. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:994987492302676&r=hme |
| By: | Roberto Dieci (University of Bologna); Xue-Zhong He (Finance Discipline Group, UTS Business School, University of Technology Sydney) |
| Abstract: | This chapter surveys the state-of-art of heterogeneous agent models (HAMs) in finance using a jointly theoretical and empirical analysis, combined with numerical and Monte Carlo analysis from the latest development in computational finance. It provides supporting evidence on the explanatory power of HAMs to various stylized facts and market anomalies through model calibration, estimation, and economic mechanisms analysis. It presents a unified framework in continuous time to study the impact of historical price information on price dynamics, profitability and optimality of fundamental and momentum trading. It demonstrates how HAMs can help to understand stock price co-movements and to build evolutionary CAPM. It also introduces a new HAMs perspective on house price dynamics and an integrate approach to study dynamics of limit order markets. The survey provides further insights into the complexity and efficiency of financial markets and policy implications. |
| Keywords: | Heterogeneity; bounded rationality; heterogeneous agent-based models; stylized facts; asset pricing; housing bubbles; limit order markets; information efficiency; comovement |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:uts:rpaper:389&r=hme |
| By: | Andreas Steinhauer (University of Edinburgh) |
| Abstract: | In this paper I provide empirical evidence that the strength of beliefs regarding the harm children suffer when their mothers work plays an important role in explaining gender gaps in labor market outcomes and fertility trends. I exploit a unique setting in Switzerland and compare outcomes of one cohort of Swiss women born in the 1950s either into the French or German ethno-linguistic group. This allows me to compare outcomes of women exposed to different norms regarding working mothers while holding constant typical confounding factors such as composition, labor market opportunities, and work-family policies. Consistent with the strong belief that children suffer with working mothers in the German region, I find that German-born women are 15-25% less likely to work as mothers and 20-20% more likely to remain childless compared to their French-born peers. Only the extensive margins show marked differences and especially among the highly educated. I argue that an identity framework along the lines of Akerlof and Kranton (2000) can rationalize these patterns in a tractable way. |
| Keywords: | famale employment; childlessness; famale identity |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1a68qg411o9bg9jp7fhgh60n5p&r=hme |
| By: | Javed, Rashid; Mughal, Mazhar |
| Abstract: | Son preference is common in many Asian countries. Though a growing body of literature examines the drivers and socioeconomic impacts of phenomenon in case of China and India, work on other Asian countries is scarce. This study uses nationally representative survey of over 13 thousand households from Pakistan (PDHS 2012-13) to analyze the effects of observed preference for sons on women’s participation in intra-household decision-making. Four key intra-household decisions are considered: decisions regarding healthcare, family visits, large household purchases and spending husband's income. These correspond to four categories of household decisions, namely healthcare, social, consumption and financial. Probit and Ordered Probit are employed as the main estimation techniques and other determinants of household decision-making are controlled for. Besides, a number of matching routines are employed to account for the possibility of potential selection bias. We find that women with at least one son have more say in household decisions. Bearing at least one son is associated with 5%, 7% and 5% higher say in decisions involving healthcare, social and consumption matters respectively. Women's role in financial affairs, however, does not differ significantly from women with no sons. Female participation in decision-making grows significantly with the number of sons but only up to the third parity. These results are particularly visible among younger, wealthier and educated women, and those who got married earlier. The findings suggest a limited improvement in women's bargaining power at home resulting from the birth of one or more sons. This in part explains higher desire for sons expressed by women compared to men in household surveys. |
| Keywords: | Son preference,Gender bias,Sex selection,Female decision-making,intrahousehold bargaining,Pakistan |
| JEL: | D13 J13 C13 C70 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:179520&r=hme |
| By: | Martin, Ulf |
| Abstract: | According to Shimshon Bichler and Jonathan Nitzan capital is not an economic quantity but a mode of power; it could be sumarized as: "Capital is power quantified in monetary terms". So, what do we do when we "quantify"? What is the nature of "money" in a capitalist society? And, indeed, what is "power" in the first place? In the following I will try to develop a concept of power as the ability of persons to create particular formations. The kind of formations persons can think of depends on the society a person lives in, which can be identified by what Cornelius Castoriadis called its social imaginary significations (SIS). The core SIS of capitalism is rational mastery operating with computational rationality. Computational rationality in turn rest on a particular understanding of how signification works: operational symbolism, as theories by Sybille Krämer (following Leibniz). When the concept of the SIS of modern rationality was developed in the 1950s and 60s, bureaucracy was seen as its main organisational mode or rational mastery. I will argue that capitalisation and bureaucratisation are the two modes of rational mastery which interact with each other. The paper concludes with deliberations on the future of rational mastery and the possibility of "ways out". |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:capwps:201804&r=hme |
| By: | Danny Mackinnon; Stuart Dawley; Andy Pike; Andrew Cumbers |
| Abstract: | A burgeoning strand of Evolutionary Economic Geography (EEG) research is addressing questions of regional path creation, based upon the idea that place-specific legacies and conditions play a critical role in supporting the emergence of new economic activities. Yet there has been little effort thus far to take stock of this emerging body of research. In response, the aims of this paper are to offer a fresh synthesis of recent work and to develop a broader theoretical framework to inform future research. First, it presents a critical appraisal of the state of the art in path creation research. In an effort to address identified gaps in EEG research, this incorporates insights from sociological perspectives, the global production networks (GPN) approach and transition studies. Second, the paper?s development of a systematic theoretical framework is based upon the identification of key dimensions of path creation and their constitutive inter-relations. This contribution is underpinned by a geographical political economy (GPE) approach which provides the ontological basis for the integration of the five key dimensions of path creation within an overarching framework and the positioning of regional processes in relation to the broader dynamics of uneven development. Informed by GPE, the argument is that knowledgeable actors, operating within multi-scalar institutional environments, create paths through the strategic coupling of regional and extra-regional assets to mechanisms of path creation and associated markets. To inform further research, the paper outlines four concrete propositions regarding the operation of path creation processes in different types of regions and explores these through case studies of Berlin and Pittsburgh. |
| Keywords: | Entrepreneurship, Path creation, evolutionary economic geography, geographical political economy, agency, strategic coupling |
| JEL: | R11 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1825&r=hme |
| By: | Olivier Bargain (UB - Université de Bordeaux); Delphine Boutin (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Hugues Champeaux (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Egyptian women have played an unprecedented role in the Arab Spring democratic movement, possibly changing women’s perception about their own rights and role. We question whether these events have translated into better outcomes within Egyptian households. We conjecture that potential changes must have been heterogeneous and depended on the local intensity of protests and women’s participation over 2011-13. We exploit the geographical heterogeneity along these two margins to conduct a double difference analysis using data surrounding the period. We find a significant improvement in women’s final say regarding decisions on health, socialization and household expenditure, as well as a decline in the acceptation of domestic violence and girls’ circumcision, in the regions most affected by the protests. This effect is not due to particular regional patterns or pre-existing trends in empowerment. It is also robust to alternative treatment definitions and confirmed by triple difference estimations. We confront our main interpretation to alternative mechanisms that could have explained this effect. |
| Keywords: | Arab Spring, Revolutions, Gender, Empowerment, Egypt. |
| Date: | 2018–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01804380&r=hme |
| By: | Muriel Gilardone (Condorcet Center for Political Economy, Normandie Univ, UNICAEN, CNRS, CREM, F-14000 Caen, France) |
| Keywords: | Our paper shows that Sen’s (2009) alternative theory of justice is greatly influenced by 1) his work on famines ; 2) his empirical work on gender inequalities, specifically within the Indian society, that helped him to refine his approach to hunger ; and 3) his involvement in the creation of the human development approach. All these engagements — seemingly completely separate from his contribution to the theories of justice — have, in fact, fostered the formulation of a novel approach in which agency and public reasoning are the core elements. |
| JEL: | A13 B31 B41 B54 D63 D78 I32 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cccrwp:2018-01-ccr&r=hme |
| By: | Köhler, Jonathan Hugh; Hohmann, Claudia; Dütschke, Elizabeth |
| Abstract: | Sustainability transitions take place across geographical and political levels. Services such as energy supply, water supply and wastewater management or housing are part of daily life have to be provided at the district level within larger urban governance structures or by smaller rural administrations. However, relatively little attention has been given to the analysis of these local structures. This paper reviews case studies of niches in the areas of district heat networks, communal housing projects for the elderly and sustainable water/wastewater management. The paper addresses the following research questions: 1. What are the similarities and differences in the case study's drivers and barriers that have arisen between the fields of action and what conclusions can be drawn from these insights in order to maximize success factors or to minimize obstacles in advance? 2. What are the key factors for transition, also with regard to the synergies of the three fields of action? 3. What is the stage of development of the niches? Are they in a transition process or not? District heat networks are established as a niche, but given the current policy and financial environment are developing very slowly. Communal housing projects are a small part of the overall housing market, but the niche is stable and growing. Waste water separation and new rain water management systems are developing as niches, but the centralised management of decentralised waste water treatment has so far only been adopted in a few cases. These niches are all critically dependent on support from the district authorities. High complexity and inconsistency in legal frameworks, and missing financial re-sources present significant barriers for innovative niche projects. They usually require new, specific financial support to enable the change from conventional systems. These groups face a difficult period of developing their expertise in planning and management and often require financial support and advice. Consultancy networks - if available - have been shown to be important in enabling such pro-jects to establish themselves. As all three case studies rely on infrastructure components, stakeholders need to consider windows of opportunities for innovation. Acceptance and trust are additional factors influencing the projects. Therefore, constructive and goal-oriented "interaction" and communication between the stakeholders on district and project level are key factors for success. It is important to share data and information to guarantee an early integration of important stakeholders, including the public. Projects in all three areas have the ambition of improved sustainability, although data on the actual impact is limited. The housing projects can be argued to contribute to sustainability in all three areas: environmental, social and economic. The district heat networks are supposed to reduce environmental impacts compared to current systems, but there was insufficient monitoring information to be certain that this is the case. The alternative water management systems all make a contribution to environmental sustainability and can be shown to be economically viable. If successful, projects in all three sectors can strengthen local social structures. Economic sustainability is a necessary condition for the success of projects in all three areas and this requires financial support and resources that are not available through the conventional housing, energy or water services market institutions. While projects on district and household level are fundamental to a sustainability transition, efforts for upscaling their impacts (Luederitz et al. 2017) are just as important. The challenges for actors on local to global scale are to learn from different narratives and adapt different perspectives, build unconventional alliances and collaborations to implement innovative, creative and intelligent solutions for a sustainability transition on a larger scale (Luederitz et al. 2017; Wittmayer et al. 2016; Brown et al. 2013). |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s112018&r=hme |
| By: | Giovanni Dosi; Mauro Napoletano; Andrea Roventini; Tania Treibich |
| Abstract: | In this work we study the granular origins of business cycles and their possible underlying drivers. As shown by Gabaix (2011), the skewed nature of firm size distributions implies that idiosyncratic (and independent) firm-level shocks may account for a significant portion of aggregate volatility. Yet, we question the original view grounded on "supply granularity", as proxied by productivity growth shocks - in line with the Real Business Cycle framework-, and we provide empirical evidence of a "demand granularity", based on investment growth shocks instead. The role of demand in explaining aggregate fluctuations is further corroborated by means of a macroeconomic Agent-Based Model of the "Schumpeter meeting Keynes" family (Dosi et al., 2015). Indeed, the investigation of the possible microfoundation of RBC has led us to the identification of a sort of microfounded Keynesian multiplier. |
| Keywords: | business cycles, granular residual, granularity hypothesis, agent-based models, firm dynamics, productivity growth, investment growth |
| Date: | 2018–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2018/19&r=hme |
| By: | Gibbs, David; O'Neill, Kirstie |
| Abstract: | The past thirty years have seen an explosion of interest and concern over the detrimental impacts of economic and industrial development. Despite this, the environmental agenda has not featured substantially in the regional studies literature. This paper explores a range of options for regional futures from a ‘clean tech’ economy and the promise of renewed accumulation, through to more radical degrowth concepts focused on altering existing modes of production and consumption, ecological sustainability and social justice. In so doing, we investigate the potential role of regions as drivers of the new green economy, drawing on research into sustainability transitions. |
| Keywords: | Green economy; Transitions research; Clean tech; Degrowth; Regional Development |
| JEL: | Q5 Q58 |
| Date: | 2017–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:68392&r=hme |
| By: | Blankenberg, Ann-Kathrin; Alhusen, Harm |
| Abstract: | Determinants of pro-environmental behavior (PEB) have been studied rigorously in the past decades. Given this spurt, a systematic review of extant research is required to determine factors involved, analyze impact and identify research gaps and new directions. This paper provides a systematic review of current economic and psychological studies regarding the determinants of PEB. As a result, we show that PEB is determined by an interplay of socioeconomic, psychological and further (individual, social, institutional) factors, which need to be considered in its study. In addition, PEB needs to be analyzed with multiple items rather than by focusing on single ones as the impact of the determinants differs depending on the analyzed behavior. To express it in economic terms, the coefficient of each determinant can either be positive or negative, given the specific type of analyzed behavior (low vs high cost behavior). By combining the results from economics and psychology, this work offers a starting point for a more sophisticated understanding of PEB. |
| Keywords: | determinants of pro-environmental behavior,ecological economics,review |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:350&r=hme |
| By: | Paola Profeta; Eleanor Woodhouse |
| Abstract: | How do electoral rules affect the representation of women? We collect panel data on the universe of Italian politicians from all levels of government over the period 1987-2013 and obtain a complete picture of the career paths of male and female politicians across the whole arc of their careers in public office. We use our unique dataset to analyse the effects on female political representation of an Italian reform which, in 2005, changed the electoral rule for national elections from (mostly) majoritarian to proportional, but did not affect sub-national level elections. We find that proportional electoral rules favour the election of women. We propose a new channel through which this result is obtained, related to the different nature of political competition in the two electoral systems: under proportional rules, parties place women less frequently in competitive seats. This is consistent with the fact that proportional systems value gender diversity more than majoritarian ones, while majoritarian systems rely on head-to-head electoral races, which are not gender neutral. We also find that electoral rules have weaker effects on female representation in geographical areas where traditional gender roles are dominant. |
| Keywords: | electoral systems, majoritarian, proportional, difference-in-differences |
| JEL: | H70 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7101&r=hme |
| By: | Jeri, Ramsito |
| Abstract: | Al-Ghazali is a scholar whose ideas are concerned with the state of society. Some of his work deals with the improvement of social life at that time. The writing of this article aims to examine the work of Al Ghazali and connect it with the economic and political situation in the life of Al-Ghazali. The method used is the descriptive method. The results show that Al-Ghazali is a scholar who cares about the problems of society, including the economic problems of society. |
| Keywords: | economic law, al Ghazali, Islamic economy, economic thinking |
| JEL: | B00 |
| Date: | 2018–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87027&r=hme |
| By: | Fritz, Oliver; Streicher, Gerhard; Unterlass, Fabian |
| Abstract: | Die heimische und internationale Nachfrage nach in Österreich produzierten Sachgütern trägt mit 21,8% der gesamten Bruttowertschöpfung wesentlich zur gesamtwirtschaftlichen Leistung bei, auch wenn sich durch die zunehmende Bedeutung internationaler Produktionsnetzwerke die Wertschöpfungsintensität der Produktion stetig verringert. Ein relativ stabiler Anteil dieser Wertschöpfung entfällt auf die österreichische Sachgüterproduktion selbst, der direkt und indirekte Anteil von Dienstleistungen an der Herstellung dieser Güter nimmt entgegen den Erwartungen nicht zu. Die F&E-Intensität der Wirtschaftssektoren ist hingegen deutlich gestiegen, auch wenn sie stark zwischen den Sektoren variiert. Über Vorleistungsbeziehungen konsumieren auch die wenig F&E-intensiven Sektoren indirekt F&ELeistungen anderer, forschungsintensiverer Sektoren und sind damit wichtige "Auftraggeber" unternehmerischer Forschungsaktivitäten. |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:pbrief:y:2018:i:040&r=hme |
| By: | Ladislav Kristoufek |
| Abstract: | Analysis of long-range dependence in financial time series was one of the initial steps of econophysics into the domain of mainstream finance and financial economics in the 1990s. Since then, many different financial series have been analyzed using the methods standardly used outside of finance to deliver some important stylized facts of the financial markets. In the late 2000s, these methods have started being generalized to bivariate settings so that the relationship between two series could be examined in more detail. It was then only a single step from bivariate long-range dependence towards scale-specific correlations and regressions as well as power-law coherency as a unique relationship between power-law correlated series. Such rapid development in the field has brought some issues and challenges that need further discussion and attention. We shortly review the development and historical steps from long-range dependence to bivariate generalizations and connected methods, focus on its technical aspects and discuss problematic parts and challenges for future directions in this specific subfield of econophysics. |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1806.01616&r=hme |