nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2018‒10‒01
twenty-two papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Cooperative member commitment, trust and social pressure -- the role of members’ participation in the decision-making By Hao, J.
  2. Social location matters: Inequality in work and family life courses at the intersection of gender and race By Aisenbrey, Silke; Fasang, Anette
  3. Multi-agent Economics and the Emergence of Critical Markets By Michael S. Harr\'e
  4. Varieties of Capitalism, Increasing Income Inequality, and the Sustainability of Long-Run Growth By Mark Setterfield; Yun K. Kim
  5. The Behavioral Economics of John Maynard Keynes By Ronald Schettkat
  6. L'éthique en ethnomarketing : de la juridictionnalisation des recherches à une morale incarnée By Philippe Robert-Demontrond; Amélie Bellion
  7. The cultural origin of saving behavior By Costa-Font, Joan; Giuliano, Paola; Özcan, Berkay
  8. Technological Change, Household Debt, and Distribution By Eric Kemp-Benedict; Yun K. Kim
  9. Introducing Environmental Ethics into Economic Analysis: Some insights from Hans Jonas’ Responsibility Principle By Damien J.A. BAZIN; Sylvie FERRARI; Richard B. HOWARTH
  10. Shackle: an enquirer into choice By Marina Bianchi; Sergio Nisticò
  11. A Language for Large-Scale Collaboration in Economics: A Streamlined Computational Representation of Financial Models By Jorge Faleiro
  12. Agricultural and Applied Economics versus Economics: Work-Life Policies and Female Faculty Representation across Academic Ranks By Laferriere, Tyler W.; Juraqulova, Zarrina H.; McCluskey, Jill J.
  13. Are managerial capitalism and crony capitalism incompatible? The adaptation of the Spanish corporate elite to the capitalist system in the last century By Juan A. Rubio-Mondéjar; Josean Garrués-Irurzun; Luis Chirosa-Cañavate
  14. Social Norms and Fertility By Sunha Myong; JungJae Park; Junjian Yi
  15. Agent-based Model of Bt Corn Adoption and Insect Resistance Management By Saikai, Yuji; Mitchell, Paul D.
  16. The Woman Contribution on the Welfare: A Case Study on Relocated Sea Nomads By Hindina Maulida
  17. The second financialization in France By Pierre François; Claire Lemercier
  18. Barriers and challenges experienced by migrant African women entrepreneurs in North Queensland, Australia By Jane Njaramba; Philemon Chigeza; Hilary Whitehouse
  19. The structure of the environment and individual choice processes By Paulo Oliva; Philipp Zahn
  20. Stewardship signaling and the power of using social pressures to reduce nonpoint source pollution By Griesinger, Mark R.; Palm-Forster, Leah H.; Messer, Kent D.; Butler, Julianna; Fooks, Jacob
  21. A Testable Theory of Institutional Change in Authoritarian Regimes By He, Yong
  22. What Explains Austria’s Export Market Performance? By Philipp Heimberger

  1. By: Hao, J.
    Abstract: Though we can find the separate research of the antecedents of member commitment, there has been little systematic research into member commitment within agricultural cooperatives, especially the way how these antecedents (or correlates) affect member commitment. Using a sample of 391 farmer cooperative members in China, this study investigates whether trust and social pressure affect cooperative member commitment and if so, whether the effect is mediated by member participating in the decision-making process. Our study finds that trust is positively associated with three components of member commitment – affective commitment, continuance commitment and normative commitment, while social pressure is positively related to normative commitment. Participation plays a partially mediating role between trust and social pressure and member commitment. Generally, these findings offer empirical evidence on the important role of cooperative chairman between members and Chinese cooperatives and on the influence of social pressure with Chinese characteristics in maintaining cooperative membership.
    Keywords: Agricultural and Food Policy, International Development
    Date: 2018–07
  2. By: Aisenbrey, Silke; Fasang, Anette
    Abstract: Which constraints and privileges do members of empowered or disempowered groups face in combining work and family life courses? To address this timely and highly relevant question, we empirically analyze work and family life courses at the intersection of gender and race in the United States. We use longitudinal data from the National Longitudinal Study of Youth (NLSY) to study parallel work-family trajectories of white and African American men and women combining an intersectional comparison with a quantitative life course perspective. Results from recent innovations in sequence analysis including Mantel coefficients and multichannel sequence analysis show distinct work-family patterns for the four groups. Overall the association between work and family life courses for white men is weakest. They can combine any type of family trajectories with all possible work careers. In contrast, for black men high prestige careers are only accessible if they are in stable relationships with maximum one child. For black women we find the strongest association between family lives and careers characterized by high occupational prestige almost never occur for them. For white women the highest prestige work-family life course pattern goes along with late parenthood and / or childlessness. We contribute to the literature by identifying complex population level regularities in intersectional inequalities in longitudinal work and family life courses. Uncovering complex population level regularities that are not immediately visible are an important precondition for assessing the causes and consequences of social inequality in work-family life courses.
    Keywords: intersectionality,work-family,life course
    Date: 2018
  3. By: Michael S. Harr\'e
    Abstract: The dual crises of the sub-prime mortgage crisis and the global financial crisis has prompted a call for explanations of non-equilibrium market dynamics. Recently a promising approach has been the use of agent based models (ABMs) to simulate aggregate market dynamics. A key aspect of these models is the endogenous emergence of critical transitions between equilibria, i.e. market collapses, caused by multiple equilibria and changing market parameters. Several research themes have developed microeconomic based models that include multiple equilibria: social decision theory (Brock and Durlauf), quantal response models (McKelvey and Palfrey), and strategic complementarities (Goldstein). A gap that needs to be filled in the literature is a unified analysis of the relationship between these models and how aggregate criticality emerges from the individual agent level. This article reviews the agent-based foundations of markets starting with the individual agent perspective of McFadden and the aggregate perspective of catastrophe theory emphasising connections between the different approaches. It is shown that changes in the uncertainty agents have in the value of their interactions with one another, even if these changes are one-sided, plays a central role in systemic market risks such as market instability and the twin crises effect. These interactions can endogenously cause crises that are an emergent phenomena of markets.
    Date: 2018–09
  4. By: Mark Setterfield; Yun K. Kim
    Abstract: We model US household debt accumulation during the neoliberal boom as a response to emulation effects and the decline of the social wage, which has “privatized" an increasing share of the costs of providing for services such as health and education. The debt dynamics of the US economy are then studied under alternative assumptions about the configuration of distributional variables, which is shown to differ across varieties of capitalism that have “neoliberalized" to different degrees. A key result is that distributional change alone will not make US neoliberal capitalism financially sustainable due, in part, to the paradoxical nature of inequality as a spur to household borrowing, and hence a source of both demand-formation and financial fragility. Achieving sustainability requires, instead, more wide-ranging reform.
    Keywords: Varieties of capitalism, neoliberalism, inequality, growth, financial fragility, financial sustainability
    JEL: E12 E44 O41
    Date: 2018–08
  5. By: Ronald Schettkat
    Abstract: After the publication of Keynes’ “General Theory,” economics was frequently described as schizophrenia: (neo-) classical at the micro-level, but Keynesian at the macro-level. In actuality, Keynes’ revolution was, to a substantial part, based on the behavioral micro-foundations of the world we live in, which has been dismissed as ad hocery, or simply ignored or reclassified in the neoclassical synthesis. Keynes’ General Theory is truly general. It includes the full-employment equilibrium as a special case. In addition, its microeconomic foundations are broader than the extremely narrow behavioral assumption of the neoclassical model. Consequently, we argue that Keynes’ microeconomics – although not fully worked out - is actually revolutionary. This may be difficult for (neo-) classical economists to accept, but it is strongly confirmed by the recent results in behavioral economics. Keynes’ macroeconomics is the result of his microeconomics. Keynes’ theory is a criticism of (neo-) classical economics, where he offers alternatives from micro to macro. It is truly a general theory, micro and macro.
    Date: 2018–09
  6. By: Philippe Robert-Demontrond (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Amélie Bellion (UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes)
    Abstract: field, this article underlines the inconsistencies of the actual formal ethics regulation model (inherited from the jurisdictionalization movement of human and society sciences research) which is impossible to adapt to the specificities of the ethnographic method. The perspective of Merleau-Ponty's works allows us to propose another approach, which is embodied, puts the body and the unexpected back into the realization and the ethical evaluation of researches. Several illustrations highlight some unthoughts in the actual ethical reflection which imply, for the researcher, accommodations that, precisely, raise ethical questions still unresolved by actual codes
    Abstract: 4 Management & Sciences Sociales N° 21 Juillet-Décembre 2016 • RSE et éthique-Impacts sur l'enseignement du management À partir d'une réflexion sur l'ethnomarketing, dont l'importance est croissante dans le champ académique, cet article pointe les incohérences du modèle formel de régulation éthique (hérité du mouvement de juridictionnalisation de la recherche en sciences de l'homme et de la société) et montre son caractère inadaptable aux spécificités de la méthode ethnographique. La perspective des travaux de Merleau-Ponty permet de proposer une autre approche, incarnée, replaçant le corps et l'imprévu dans la conduite et l'évaluation éthique d'une recherche. Plusieurs illustrations montrent qu'il existe des impensés dans l'actuelle réflexion éthique ; lesquels impliquent pour le chercheur des arrangements qui, précisément, soulèvent des questions éthiques non solutionnées par les codes.
    Keywords: Ethics,market-oriented ethnography,intuitive ethics,embodied ethics,Éthique,ethnomarketing,Merleau-Ponty,éthique intuitive,éthique incarnée.
    Date: 2016–12–01
  7. By: Costa-Font, Joan; Giuliano, Paola; Özcan, Berkay
    Abstract: Traditional economic interpretations have not been successful in explaining differences in saving rates across countries. One hypothesis is that savings respond to cultural specific social norms. The accepted view in economics so far is that culture does not have any effect on savings. We revisit this evidence using a novel dataset, which allows us to study the saving behavior of up to three generations of immigrants in the United Kingdom. Against the backdrop of existing evidence, we find that cultural preferences are an important explanation for cross-country differences in saving behavior, and their relevance persists up to three generations.
    JEL: N0
    Date: 2018–09–12
  8. By: Eric Kemp-Benedict; Yun K. Kim
    Abstract: We present a stylized model to explore the interaction between household debt, the functional income distribution, and technological change. We assume that weak labor bargaining power allows firms to set their markups in order to meet a target profit rate. At a low wage share, workers' households are assumed to have limited flexibility in meeting financial goals, so household indebtedness tends to rise as the wage share falls. Rising indebtedness further lowers labor's bargaining power, a phenomenon that was observed in the wave of financialization that began in the late 20th century. Thus, rising debt levels allow firms even greater freedom to raise their target profit rate. We find that the dynamics can be either stable or unstable, with the potential for a self-reinforcing pattern of rising household indebtedness and falling wage share, consistent with trends in the US from the 1980s onward. The unstable cycle can be triggered by increased willingness by workers to incur debt and rising influence of household indebtedness on labor's bargaining strength and income distribution. The model can shed some light on widely-observed trends over recent decades regarding household indebtedness, inequality, and technological changes in the US, and potentially in other OECD countries.
    Date: 2018–08
  9. By: Damien J.A. BAZIN; Sylvie FERRARI; Richard B. HOWARTH
    Abstract: This paper addresses how environmental ethics could be incorporated in economic analysis and more particularly how the Responsibility Principle of H. Jonas can provide useful insights into the analysis of sustainability issues. The challenges of environmental and social sustainability in terms of intergenerational fairness are analysed and involve a moral duty applicable to economic governance. The paper also explores to what extent responsibility, as an alternative to utilitarianism and as a principle facilitating the coordination of the agents involved, can be a first step towards the long-term and sustainable conservation of Nature.
    Keywords: Environmental ethics, intergenerational fairness, responsibility principle, self-binding behaviour, sustainability.
    JEL: Q01 Q20 Q32 Q57
    Date: 2018
  10. By: Marina Bianchi (University of Cassino and Lazio Meridionale); Sergio Nisticò (University of Cassino and Lazio Meridionale)
    Abstract: Despite the several attempts to rework Shackle’s ideas using alternative non-mainstream approaches, Shackle was and has remained an outsider in the economic discipline. Shackle, however, is not a man alone if we take seriously what he thought of economics, as a discipline concerned with a subject that is not self-contained but open-ended and impermanent. Starting from an assessment of Schackle’s understanding of choice as creative, an uncaused cause that happens in a present in which the future must be imagined and for which the past provides no satisfyingly complete anticipations, the paper argues that Shackle should be rescued from the role of a nihilist where he is often relegated. In this perspective, a fundamental key to assessing the richness, originality and anticipatory character of Shackle’s contribution can be found in the recent developments of several “friendly” disciplines such as the psychology of motivations and of self-rewarding actions, narrative as the “science’ of the possible and the role of calendar time in choice theory. In fact, all these novel re-thinkings can contribute and to the understanding of Shackle’s main point, that human (and therefore economic) agents are active, creative enterprisers, who cut the deterministic thread by injecting the new in history to come, in making a difference in the future courses of action.
    JEL: B31 D81 D91
    Date: 2018–03
  11. By: Jorge Faleiro
    Abstract: This paper introduces Sigma, a domain-specific computational representation for collaboration in large-scale for the field of economics. A computational representation is not a programming language or a software platform. A computational representation is a domain-specific representation system based on three specific elements: facets, contributions, and constraints of data. Facets are definable aspects that make up a subject or an object. Contributions are shareable and formal evidence, carrying specific properties, and produced as a result of a crowd-based scientific investigation. Constraints of data are restrictions defining domain-specific rules of association between entities and relationships. A computational representation serves as a layer of abstraction that is required in order to define domain-specific concepts in computers, in a way these concepts can be shared in a crowd for the purposes of a controlled scientific investigation in large-scale by crowds. Facets, contributions, and constraints of data are defined for any domain of knowledge by the application of a generic set of inputs, procedural steps, and products called a representational process. The application of this generic process to our domain of knowledge, the field of economics, produces Sigma. Sigma is described in this paper in terms of its three elements: facets (streaming, reactives, distribution, and simulation), contributions (financial models, processors, and endpoints), and constraints of data (configuration, execution, and simulation meta-model). Each element of the generic representational process and the Sigma computational representation is described and formalized in details.
    Date: 2018–09
  12. By: Laferriere, Tyler W.; Juraqulova, Zarrina H.; McCluskey, Jill J.
    Keywords: Teaching/Communication/Extension/Profession, Consumer/Household Economics, Research Methods/Statistical Methods
  13. By: Juan A. Rubio-Mondéjar (Universidad de Granada, Spain); Josean Garrués-Irurzun (Universidad de Granada, Spain); Luis Chirosa-Cañavate (Universidad de Granada, Spain)
    Abstract: In the last century, Spanish economic and society have experienced remarkable transformations, as the consolidation of a democratic State of law, and the access to the reduced club of developed countries. Such transformations have also reached the corporate elite. Nevertheless, has the professionalization of the managers of large companies represented a break with the old practices of crony capitalism? To answer this question, the paper analyzes the profiles of the presidents and CEO of the largest Spanish corporations, between 1917 and today. The application of prosopographic method to different aspects of the social capital of managers, on nine selected dates, will allow to understand better the evolution process of the Spanish corporate elite. This process includes an increase in managerial capabilities, due to the formation and cosmopolitan capital; but despite the advance of managerial capitalism, this has not meant the end of the so-called crony capitalism, —characteristic of both the Restoration and the Franco dictatorship—, and in the last decades it seems that there is again an "entrenchment" movement by the new business elite to defend their own interest to the detriment of those of the country.
    Keywords: Spain, Business Elite, Crony Capitalism, Social Capital
    JEL: N24 P12 H10 L40
    Date: 2018–09
  14. By: Sunha Myong (Singapore Management University); JungJae Park (National University of Singapore); Junjian Yi (The University of Chicago)
    Abstract: We first document three stylized facts about marriage and fertility in East Asian societies: They have the highest marriage rates in the world, but the lowest total fertility; they have the lowest total fertility, but almost all married women have at least one child. By contrast, almost no single women have any children. We then explain these three facts, focusing on two social norms associated with Confucianism: the unequal gender division of childcare within a household and the stigma attached to out-of-wedlock births. We incorporate the two social norms into an economic model, and structurally estimate it using data from South Korea’s censuses and household surveys. We find that, on the one hand, the social norm of unequal gender division of childcare significantly contributes to the low fertility of South Korea, and its effect varies across education: The social norm lowers fertility for highly educated women but increases it for the less educated. Pro-natal policies can increase average fertility, but they are not effective in mitigating the role of this norm as they cannot sufficiently boost fertility for highly educated women. On the other hand, the social stigma has negligible effects on marriage and fertility. Historical simulation results show that fertility would have decreased less dramatically in the absence of the first norm, especially for younger birth cohorts. Our results suggest that the tension between the persistent gender ideology and rapid socioeconomic development is the main driving force behind the unique marriage and fertility patterns of East Asian societies, and that this tension has escalated in recent decades.
    Keywords: Confucianism, social norms, fertility, demographic transition, East Asia societies
    JEL: J11 J12 J13
    Date: 2018–09
  15. By: Saikai, Yuji; Mitchell, Paul D.
    Keywords: Agricultural and Food Policy, Production Economics, Agribusiness
    Date: 2017–06–30
  16. By: Hindina Maulida (UIN SULTAN SYARIF KASIM RIAU)
    Abstract: Southeast Asia is the home of Sea Nomads distinctive groups, called as Suku Laut. In Indonesia, some of the Sea Nomads already live in the relocated are but they live in poverty. To achieve the community welfare, it shall begin with the family prosperity that needs woman contributio. This paper investigates how woman participation improves the welfare of Duanu Tribe with the aim to understand how the stronger roles of women contribute to the welfare. Using case study method, the primary data were obtained from interviews with women ofDuanu Tribe, village head, Duanu tribal figures, and observations. Secondary datawere taken from UDHR documents, Indonesian government regulations, and other related research. The women of Duanu Tribe have not been able to maximally participate in improving the tribe welfare due to lack of education, low health degree, and culture that stimulates them to be unproductive and have multiple burdens when participating in the public sector. Therefore, there is in need of women's empowerment in order to realize the prosperity of the Duanu Tribe.
    Keywords: woman empowerment, welfare, sea nomads, duanu tribe, Riau
    Date: 2018–06
  17. By: Pierre François (CSO - Centre de sociologie des organisations - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Claire Lemercier (CSO - Centre de sociologie des organisations - Sciences Po - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This chapter studies the careers of CEOs in the 120 largest publicly listed French firms, as well as that of the persons who sat in at least two of their boards in 2009. In this population, the main divide opposes the careers that took place, partly or completely, in financial firms to those that did not. Far from being the product of the recent financialization, however, this under-studied divide already existed in 1979 and 1956. Comparing these cohorts with the more recent one allows the authors to assess the remarkable stability of the financial careers of French executives and directors, be they part of the State nobility or not.
    Keywords: Financial careers,Directors,New conception of control,Executives,France
    Date: 2017–07
  18. By: Jane Njaramba (JCU - James Cook University); Philemon Chigeza (JCU - James Cook University); Hilary Whitehouse (JCU - James Cook University)
    Abstract: The purpose of this study is to explore and identify possible barriers and challenges experienced by migrant African women entrepreneurs in the establishment and operation of their businesses in North Queensland. The study adopts a qualitative approach and employs in-depth, semi-structured interviews and site visits to participants businesses. Findings revealed that cultural factors, family, human capital, social capital and networks, and institutional factors potentially acted as barriers to the establishment and operation and of their businesses. This is a small-scale pilot study. The data was gathered from eleven migrant African women only, in a specific region, so the results are limited in applicability and cannot be assumed to apply to other cultures. The context of the research might not be considered a representative of Australia. This study provides empirical data regarding the barriers and challenges encountered by migrant women entrepreneurs and contributes to a new body of knowledge, providing a foundation for further research in this area. The study also serves to inform policymakers.
    Keywords: challenges,barriers,Migration,entrepreneurship
    Date: 2018–06–29
  19. By: Paulo Oliva; Philipp Zahn
    Abstract: Beginning with Herbert Simon [10], the literature on bounded rationality has investigated in great detail how internal limitations affect an agent's choice process. The structure of the choice environment, deemed as important as internal limitations by Simon [11], has been mostly ignored. We introduce a model of the environment and its interaction with an agent's choice process. Focusing on online environments where an agent can use filter and sort functionality to support his decision-making, we show, a choice process relying on the environment can be rationalized. Moreover, for sufficiently many alternatives, filtering and sorting are quick ways to choose rationally.
    Date: 2018–09
  20. By: Griesinger, Mark R.; Palm-Forster, Leah H.; Messer, Kent D.; Butler, Julianna; Fooks, Jacob
    Keywords: Institutional and Behavioral Economics, Resource/Energy Economics and Policy, Land Economics/Use
    Date: 2017–06–15
  21. By: He, Yong
    Abstract: With the guidance of a new institutional framework, the theoretical modelling establishes the necessary and sufficient conditions for institutional change to occur in authoritarian regimes: first, external chocks must be strong, much stronger than in a democratic regime; second, the chocks must be of such a kind that gives rise to factional competition within the ruling group. It predicts that involvement by the ruled group brings about more extensive institutional change than that merely driven by the ruling group. The theory is then applied to explain rural China’s market transition. As institutional change defines pay-off structure, the extent of this change is approximated by the income advantage of cadre households relative to non-cadre households. Econometric tests based on a Chinese rural household panel data of 21 years confirm the theoretical prediction.
    Keywords: Institutional change, authoritarian regime, political returns, market transition, new institutional economics, Chinese rural cadre.
    JEL: B52 P20 R20
    Date: 2018
  22. By: Philipp Heimberger (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper analyses Austria’s export market performance by exploring four channels that can impact on exports a) cost competitiveness, b) ties to trading partners through their demand for import goods, c) global investment demand, and d) offshoring of goods production. By using cointegration analysis and error corrections, we estimate an export model based on quarterly data over the time period 1997-2016. The main results underscore that it is not only price competitiveness that influences Austria’s export performance, as global export demand and trading partners’ demand for capital goods are shown to have a significant long-run impact on Austrian goods exports. Cost competitiveness does play a role in determining export market performance, but over the last twenty years the relative contributions of changes in the real effective exchange rate based on unit labour costs to export growth are shown to be relatively small. While Austria’s international competitiveness has only recorded small variations since the financial crisis, this paper provides evidence that lower export growth and the falling global export market share of goods since 2007 largely reflect relatively weak economic activity of many of Austria’s important trading partners including Eastern Europe.
    Keywords: competitiveness, export performance, exports, trade, Austria, Europe
    JEL: B5
    Date: 2018–09

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