nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2018‒12‒03
twenty-one papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Introduction to Michel Husson's 'Value and price: a critique of neo-Ricardian claims' By Freeman, Alan
  2. Self-funded social impact investment: an interdisciplinary analysis of the Sardex mutual credit system By Motta, Wallis; Dini, Paolo; Sartori, Laura
  3. The Boundary of Agricultural Marketing Cooperatives in Africa: A Conceptual framework and empirical evidence from Ethiopia By Tadesse, G.; Badiane, O.
  4. Women in Agriculture: Application of Alkire Foster Method of Counting Multidimensional Deprivation towards building a Human Recognition Index for Women in Malawi. By Maduekwe, E.
  5. Gender Norms and Income Misreporting within Households By Anja Roth; Michaela Slotwinski
  6. The Impact of Cooperative Membership on Farm Income By Neves, M.C.R.; Silva, F.D.F.; Freitas, C.O.D.; Braga, M.J.
  7. Tackling Conventional Agriculture: The Institutionalization of Community Supported Agriculture's (CSA) Principles By Claudio Vitari; Erin Whittingham
  8. Federal Statutes of Special Importance to Farmer Cooperatives By United States Department of Agriculture
  9. Financialization and Inequality in Coordinated and Liberal Market Economies By Evelyne Huber; Bilyana Petrova; John D. Stephens
  10. Rent Sharing and Inclusive Growth By Brian Bell; Pawel Bukowski; Stephen Machin
  11. Remarks on financial crisis, speculative bubles and some specifics in the Czech Economy By Klára ?ermáková; Bo?ena Kade?ábková
  12. Does Output Influence Productivity? - A Meta-Regression Analysis By Ludwig List
  13. Is it possible for universities to create spiritual workplaces? By Desere Kokt; Esther Pearl Palmer
  14. Spinoffs, parents, and institutions: Evidence from the Italian motorcycle industry By Andrea Morrison
  15. A new index for gendered decision-making, considering all family members, its determinants, and effects on food security. By Sariyev, O.
  16. Effect of Membership of Group-Farming Cooperatives on Farmers Food Production and Poverty Status in Nigeria By Adekunle, A.
  17. The Moderating Effect of Collaborative Culture on Supply Chain Collab-oration towards Competitive Advantage: The Conceptual Model By Korakot Wichitpong; Sirijin Wongjarupun; Preeyanuch Apibunyopas
  18. Entropy and Transfer Entropy: The Dow Jones and the build up to the 1997 Asian Crisis By Michael S. Harre
  19. Indonesian Business Environment - VOC Model and Local Culture By Martina Sipkova; Maria Levakova
  20. COOPERATIVE STATISTICS, 2011 By Ali, Sarah; Penn, Jaqueline E.; Eversull, E. Eldon
  21. Financialisation, financial development, and investment: evidence from European non-financial corporations By Tori, Daniele; Onaran, Özlem

  1. By: Freeman, Alan
    Abstract: This is a prepublication version of the published article of the same name and should be cited as "Freeman, A. 2018. Introduction to Michel Husson's 'Value and Price: a critique of neo-Ricardian Claims' Capital and Class Vol 42, Issue 3, 2018, pp 509-516" Michel Husson originally published this landmark article in French as Manuel Perez (1980). It thus offers a new generation of Marx scholars a resource which academic Marxism has rejected, except for a minority tradition in which this article played a foundational role: the opportunity to understand, and grapple with, Marx’s own economics. This introduction aims to explain, to such new readers, the key role which Husson’s article played in advancing our understanding of Marx’s theory of value. It appeared nine years after Paul Samuelson (1971) pronounced Marx’s value theory a failure, and three years after English Marxist Ian Steedman (1977) formally endorsed this verdict. Husson set out the first, and in many ways the most comprehensive concise rebuttal of these claims.
    Keywords: Value, Marx, TSSI
    JEL: B14 B24 C00
    Date: 2017–09–14
  2. By: Motta, Wallis; Dini, Paolo; Sartori, Laura
    Abstract: Sardex is a B2B electronic complementary currency and mutual credit system. It allows private funding to be endogenously generated within a geographically limited socio-economic context, rather than injected from exogenous sources, leading to a greater level of positive social impact. Sardex promotes stable and constructive integration of market activity with democratic institutions and sociocultural values, and is hence identified with sustainable development. By drawing on different strands of monetary theory, sociology and anthropology, the paper argues that Sardex implements a form of self-funded social impact investment. This paper presents a case study based on 29 semi-structured in-depth interviews of Sardex actors over four years.
    Keywords: mutual credit; social finance; sustainable development; anthropology; monetary theory; sociology
    JEL: F3 G3
    Date: 2017–05–11
  3. By: Tadesse, G.; Badiane, O.
    Abstract: Informed by the boundary of the firm, this paper explains the concepts, determinants and importance of boundary in cooperative organizations. In a marketing cooperative context, we define boundary as the type and number of marketing activities or services that a cooperative organization provides to its members. Using a mix of theory from transaction cost economics, industrial organization and collective actions, the conceptual analysis predicts the importance of the type of goods (being a club good or not) the cooperatives generate to their members, as opposed to market imperfection per se, to define a competitive boundary. We then empirically tested if the observed weak performance of marketing cooperatives in Africa is explained by the strategic failure of engaging in markets where they do not have the competitive and comparative advantages using a unique data set from Ethiopia. The empirical tests proofed that the competitiveness of a cooperative in attracting and committing its members is positively and significantly related to the likelihood of a cooperative providing a club good. However, significant number of cooperatives in Ethiopia engaged in services for which the markets are not convincingly imperfect. Furthermore, they participate in markets that generate public goods rather than club goods. Acknowledgement :
    Keywords: Marketing
    Date: 2018–07
  4. By: Maduekwe, E.
    Abstract: Evidence suggests that intangible components of wellbeing like human recognition impacts development. However, human recognition has been hardly examined because of measurement difficulties. In agrarian-based Malawian economy, access to agricultural resources such as land depends heavily on gendered norms. Women s ability to overcome poverty is severely affected by societal norms in which recognition flows. Negative human recognition like violence limits women s ability to control their economic destiny. Thus, we investigate human recognition deprivation among women in Malawi. We adapted the Alkire Foster method of multidimensional poverty to measure human recognition within domains of deprivation using nationally representative datasets. We combine indicators of violence, freedom and autonomy to build a human recognition deprivation index. We found that 84.8% of women in Malawi are recognition deprived. Women working in agriculture account for 47% of the overall deprivation experienced by women in Malawi and have inadequate recognition in 31.7 % of the weighted indicators. In the northern Malawi, women exhibit disproportionally high deprivation levels relative to population size. We recommend that development measures for agrarian economies like Malawi should include the impact of how women are recognized as humans on resource access. Acknowledgement :
    Keywords: Labor and Human Capital
    Date: 2018–07
  5. By: Anja Roth; Michaela Slotwinski
    Abstract: We revisit the prominent finding that women’s incomes are disproportionally often observed just below the income of their partner. So far, this bunching has been explained by couple formation or couples’ labor market decisions. We propose an additional mechanism: income misreporting in surveys. Drawing on survey and administrative data, we show that income misreporting accounts for the discontinuity in the distribution of women’s relative incomes just below the point where a woman outearns her partner. This misreporting is best explained by the role of gender norms in individuals’ self-portrayals and self-perception.
    Keywords: gender norms, women’s relative income shares, combination survey and administrative data
    JEL: D10 J01 J16
    Date: 2018
  6. By: Neves, M.C.R.; Silva, F.D.F.; Freitas, C.O.D.; Braga, M.J.
    Abstract: Brazilian South and Southeast regions produced more than 50% of the Brazilian agricultural production in 2006. The Brazilian government has implemented several policies to enhance farm income on these regions such as policies towards enhancement of cooperatives production management. This directly affects farmers in these regions given that around 24% of them were members of cooperatives. In this paper, we estimate the effect of this membership on farms profitability, output supplies and input demands. To calculate these effects, we estimate a quadratic normalized restricted profit function using the Brazilian Agricultural Census of 2006 for the South and Southeast regions of Brazil. Preliminary results suggest a positive effect of cooperative membership on profit of about US$ 4.1 million per year. A positive effect of membership on output supplies and on input demand was found. Acknowledgement : The authors acknowledge the suggestions of the reviewers. Some of them will still be implemented. Foundation for the Coordination and Improvement of Higher Level or Education Personnel (Capes - Brazil) Applied Economics Program, Dept. of Agricultural Economics Federal University of Vi osa-MG.
    Keywords: Agricultural and Food Policy
    Date: 2018–07
  7. By: Claudio Vitari (IAE Paris - Institut d'Administration des Entreprises - Paris - UP1 - Université Panthéon-Sorbonne); Erin Whittingham
    Abstract: The conventional agriculture system can cause ecological, social, and economic challenges. Community Supported Agriculture (CSA) is an alternative food system that embodies principles like community building, risk sharing, and ecological sustainability. These principles help to address many social, economic, and ecological inequalities and challenges. In reality however these principles are not always practiced. This article explores the institutionalization of the CSA principles within the field through a literature review and the application of Lawrence and Suddaby's taxonomy of institutional work. It investigates the actions that create, maintain, and disrupt the principles as institutions. Findings show apprenticeship programs as an effective means to spread the CSA philosophy. They also highlight a reluctance by CSA organizers to ensure adherence to rules, while showing that CSA organizers are the most important actor when considering institutionalization. As well, the results reveal some actions that are influenced by conventional thinking or that are aimed at making the CSA experience more convenient led to the disruption of the principles. This reveals the need for research into the intent of actor's when disrupting the principles given the principles importance in addressing problems created by industrial agricultural.
    Keywords: Community Supported Agriculture,CSA,Institutionalization,Institutional Work,Community Building,Risk Sharing,Ecological Sustainability
    Date: 2018
  8. By: United States Department of Agriculture
    Keywords: Agribusiness, Farm Management
    Date: 2017–08
  9. By: Evelyne Huber; Bilyana Petrova; John D. Stephens
    Abstract: The last three decades have witnessed rising inequality and deepening financialization (however defined) in post-industrial democracies. A rapidly growing body of literature has linked the two phenomena (see e.g. Dünhaupt 2014, Godechot 2016, Flaherty 2015, Roberts and Kwon 2017). Contrary to existing scholarship, which has largely neglected the mediating effect of institutions, we argue that contextual differences play a crucial role in shaping the relationship between financialization and inequality. Drawing on the Varieties of Capitalism literature, we posit that a larger financial sector is associated with a more unequal distribution of income in liberal market economies, where the industry develops substantial autonomy from other actors. In contrast, the stronger position of labor in coordinated market economies is able to counteract the inequality-enhancing effects of financialization. We test these hypotheses with data on 18 and 21 post-industrial democracies between 1960 and 2013. Our analysis is largely consistent with our expectations.
    Date: 2018–09
  10. By: Brian Bell; Pawel Bukowski; Stephen Machin
    Abstract: The long-run evolution of rent sharing is empirically studied. Based upon a comprehensive and harmonized panel of the top 300 publicly quoted British companies over thirty five years, the paper reports evidence of a significant fall over time in the extent to which firms share rents with workers. It confirms that companies do share their profits with employees, but at much smaller scale today than they did during the 1980s and 1990s. This is a robust finding, corroborated with industry-level analysis for the US and EU. The decline in rent sharing is coincident with the rise of product market power that has occurred as worker bargaining power has dropped. Although firms with more market power previously shared more of their profits, they experienced a stronger fall in rent sharing after 2000.
    Keywords: rent sharing, inclusive growth
    JEL: J30
    Date: 2018–11
  11. By: Klára ?ermáková (University of Economics, Prague); Bo?ena Kade?ábková (University of Economics, Prague)
    Abstract: This paper deals with financial crisis and bubbles on financial markets. Authors first compare theoretical approaches to the crisis, then identify common characteristics of past financial crisis and the recent crises, then analyze price bubbles as a possible source of the crisis, ways of their estimation and possible responses of economic policies. The analytical part is focused on the case of the Czech Republic, as the paper finds some specific features in the bubble performance in the Czech Republic, as the Czech economy was characterized by the low cost of labour and very low price of properties, a heritage of the transformation era.
    Keywords: financial crises, speculative bubbles, specifics features in the Czech economy
    JEL: E32 G01
    Date: 2018–06
  12. By: Ludwig List (Centre d'Economie de l'Université de Paris Nord (CEPN))
    Abstract: The goal of this paper is to conduct a meta-regression analysis (MRA hereafter) regarding the effects of the Kaldor-Verdoorn effect – the relation between output/demand and productivity. The Kaldor-Verdoorn effect has been subject to many econometric studies and while the overwhelming majority of them finds a positive overall effect, there is no consensus on its size - the results vary quite a bit, especially according to the chosen econometric specification. This MRA estimates a 'true value' of the Kaldor-Verdoorn effect without interference from potential publication selection bias via the use of multivariate MRA. A series of moderator variables is used to check for their effect of excess variation, including amongst others the year of publication, the sectors and the countries studied. This MRA study uses available data from 22 published studies with 303 estimations of the Kaldor-Verdoorn effect. When examining the primary literature as a whole, there seems to be publication bias. While there seems to exist a genuine Kaldor-Verdoorn effect, its size varies considerably depending on the specification chosen.
    Keywords: Kaldor-Verdoorn effect, Productivity, Meta-regression analysis, Effective demand, Learning by doing
    JEL: E24 O14 O25 O47 Q11
    Date: 2018–11
  13. By: Desere Kokt (Central University of Technology, Free State); Esther Pearl Palmer (Central University of Technology, Free State)
    Abstract: The globalized world of work poses significant challenges to universities ? ranging from increased digitalisation and virtualization, to greater diversity in student numbers, larger student intakes and the need for universities to continuously engage with business, industry and other external stakeholders. Contemporary universities have also developed a distinct managerial nature (managerilaism) which means they are increasingly managed like private sector organisations. This is in contrast to the collegial structures that prevailed in universities in previous generations. The shift from collegiality to managerilaism has implications for academics ? specifically related to autonomy, moral, motivation and commitment. Based on the Communities of Practice as theoretical framework the paper proposes an emphasis on workplace spirituality as a means to compensate for the erosion of collegiality. It further provides suggestions to university management on how to create a spiritual workplace especially for academic staff.
    Keywords: workplace spirituality, universities, collegiality, managerialism, globalized world of work
    JEL: L20 L21 L30
    Date: 2018–11
  14. By: Andrea Morrison
    Abstract: In this paper we study the impact of spinoff generation events on the performance of parent organizations. Using data from the Italian motorcycle industry (1893-1993), we find that parents have higher survival chances after a spinoff generation event, confirming results from previous studies about other manufacturing industries. We also show that these enhanced survival patterns differ across time and space, and we link these effects to institutional differences: spinoff generation did not determine any survival advantage for parent firms in the Fascist era and in the Turin cluster, while it had an additional positive effect in the Motorvalley cluster. The paper contributes to the literature on spinoff generation and employee mobility and adds to the debate on the role of institutions in evolutionary economic geography, by showing the importance of contextual factors for the performance of parent firms.
    Keywords: Spinoffs, Employee entrepreneurship, Parents, Institutions, Evolutionary economic geography
    JEL: B52 L26 O18 R11
    Date: 2018–11
  15. By: Sariyev, O.
    Abstract: Despite the broad range of studies measuring women s intra-household decision-making power, the possibility of all family members actively participating in family decisions is widely ignored or undervalued. Therefore, this article first develops a decision-making index that accounts for different decisions potentially being made solitarily or jointly by any number of individuals reported to participate in decision-making. Second, determinants of decision-making power are identified. Finally, the effect of higher women participation in decision-making on food security is assessed. Based on a random sample of 378 households living in a 200 km radius around the city of Hawassa in Southwestern Ethiopia, principal component analysis is applied to generate an index of empowerment proxy, i.e. participation in decision-making. Linear regression models revealed that livestock income, asset ownership, land endowment, and adultness of sons are significant determinants of women s participation in decision-making. In addition, women s bargaining power, education, access to credit and extension, and off-farm income significantly increased the food variety score as an indicator of food and nutrition security. Acknowledgement : Acknowledgment: The financial support of the Deutsche Forschungsgemeinschaft (DFG) is kindly acknowledged.
    Keywords: Food Security and Poverty
    Date: 2018–07
  16. By: Adekunle, A.
    Abstract: The problems of agriculture affect mostly the smallholder farmers who have small fields in different places. Group-farming cooperatives serves as good alternative to boost food production as well as lifting people out of poverty. In this study we used a recent survey data in Nigeria to examine the effect of membership of group-farming cooperatives on food production and poverty status. Probit regression model estimate is used to analyse the decision to join group-farming cooperatives and the effect of membership of group-farming cooperatives on poverty status and ordinary least square is employed to examine the effect of membership of group-farming cooperatives on food production and productivity of farmers. We find that, group-farming cooperatives have positive and statistically significant effect on food proction at 5% level of significance; prevalence of poverty is higher among non-members of group-farming cooperatives. Being a member of other forms of cooperative also helps to reduce poverty among the farming households. Therefore, we recommend that both the government and non-governmental organization should develop strategies that will encourage participation in group-farming cooperatives and also create more awareness among farming households, which can motivate more farmers to partake in this form of farmers organizations. Acknowledgement : I acknowledge the effort of Dr R.O. Babatunde in this project.
    Keywords: Food Security and Poverty
    Date: 2018–07
  17. By: Korakot Wichitpong (Kasetsart University); Sirijin Wongjarupun (Kasetsart University); Preeyanuch Apibunyopas (Kasetsart University)
    Abstract: In the current challenging business environment, firms find it difficult to be exclusively. Not only do the firms continue to leverage their internal sources for competitive advantage but also collaborate with partners along the supply chain vertically and horizontally. The collaboration results in revenue enhancements, cost reductions, and operational flexibility, especially, in managing an uncertain demand. Many previous studies have relatively emphasized on the conditions or factors affecting supply chain collaboration but still lacked one of the main supporting elements, known as collaborative culture. Thus, the role of collaborative culture on supply chain collaboration is unclear. The aim of this research is to investigate the moderating effect of the collaborative culture on the relationship between supply chain collaboration and competitive advantages.This paper is proposing a conceptual model to explore the role of collaborative culture. Reviewing literature from the preceding research is employed as the research methodology to construct a conceptual model. Measurement of each latent variable is performed by supply chain collaboration, competitive advantages, and collaborative culture. Supply chain collaboration is analyzed by resource sharing, decision synchronization, and incentive alignment. Competitive advantage is investigated in terms of process efficiency, offering flexibility, business synergy, quality, and innovation. Lastly, the collaborative culture is examined by four factors, namely, collectivism, long-term orientation, power symmetry, and uncertainty avoidance. The implication of this research is to create a better understanding of the role of collaborative culture in order to enhance and sustain supply chain collaboration. Moreover, the results will help in resolving the obstacles of supply chain collaboration and in promoting the positive collaborative culture element(s) to strengthen the collaboration along the supply chain.
    Keywords: Collaborative culture, Supply chain collaboration, Competitive advantage
    Date: 2018–11
  18. By: Michael S. Harre
    Abstract: Entropy measures in their various incarnations play an important role in the study of stochastic time series providing important insights into both the correlative and the causative structure of the stochastic relationships between the individual components of a system. Recent applications of entropic techniques and their linear progenitors such as Pearson correlations and Granger causality have have included both normal as well as critical periods in a system's dynamical evolution. Here I measure the entropy, Pearson correlation and transfer entropy of the intra-day price changes of the Dow Jones Industrial Average in the period immediately leading up to and including the Asian financial crisis and subsequent mini-crash of the DJIA on the 27th October 1997. I use a novel variation of transfer entropy that dynamically adjusts to the arrival rate of individual prices and does not require the binning of data to show that quite different relationships emerge from those given by the conventional Pearson correlations between equities. These preliminary results illustrate how this modified form of the TE compares to results using Pearson correlation.
    Date: 2018–11
  19. By: Martina Sipkova (Metropolitni univerzita Praha, O.P.S.); Maria Levakova (Metropolitan University Prague, Czech Republic)
    Abstract: Our presentation focuses on the structure of Indonesian political economy and how local form of capitalism is underpinned by social relations and culture. Specifically, in our research, we: i) analyze Indonesian business environment through the Varieties of Capitalism (henceforth VOC) model as developed by Hall and Soskice, ii) look into the reform and dynamic changes of Indonesian business environment following 1997 crisis in East Asia through the lens of VOC model, and iii) examine how Indonesian form of capitalism is underpinned by local culture by the use of GLOBE Project and Hofstede dimensions of culture. Our findings suggest that the case of Indonesia can be presented as a special type of a coordinated market economy driven by local culture with some aspects of liberal market economy, which are, to a large extent, imported from the outside. Our research also shows that the influence of international business environment and globalization combined with post-1997-crisis reform push Indonesian economy further towards modes of coordination more typical for liberal market economies, causing tensions among various actors of local political economy. Considering limited body of literature on the topic, the main contributions of our research is twofold. First, to study Indonesian form of capitalism, we apply a VOC model and connect local form of capitalism with socio-cultural characteristics of the country. Second, we apply VOC model to look at the interplay between domestic forces shaping local political economy and the influence of international environment and globalization largely reflecting (neo)liberal view of economic and business relations.
    Keywords: Indonesia, business environment, variety of capitalism, Asian Financial Crisis, post-crisis reform, capitalism and culture
    JEL: F59 L19 P11
    Date: 2018–11
  20. By: Ali, Sarah; Penn, Jaqueline E.; Eversull, E. Eldon
    Abstract: A survey of 2,285 U.S. farmer, rancher, and fishery cooperatives ending their business year during calendar year 2011 showed a record business volume, net income, and total assets. Gross business volume was $213.5 billion while net business volume was $183.6 billion, and net income totaled slightly more than $5 billion. These cooperatives had more than $78 billion in assets, $50 billion of liabilities, and $28 billion in equity. Cooperatives were a major employer in rural areas, with 131,000 full-time workers and 53,000 part-time or seasonal employees. Business volume by commodity is reported for all cooperatives. Number of cooperatives, cooperative memberships, and number of employees are classified according to whether the business is a marketing, supply or service cooperative. Trends in cooperative numbers, memberships, employees, business size, sales volume, net income, assets, liabilities, and net worth are reported.
    Keywords: Agribusiness, Agricultural Finance
    Date: 2102–10
  21. By: Tori, Daniele; Onaran, Özlem
    Keywords: financialisation; financial development; non-financial corporations; fixed investment; Europe
    JEL: E2 E21
    Date: 2018–11–09

This nep-hme issue is ©2018 by Carlo D’Ippoliti. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.