nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2019‒06‒10
sixteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Persistent Exploitation with Intertemporal Reproducible Solution in Pre-industrial Economies By Weikai Chen; Naoki Yoshihara
  2. Inequality, advantage and the capability approach By Burchardt, Tania; Hick, Rod
  3. Characterising green employment: the impacts of 'greening' on workforce composition By Bowen, Alex; Kuralbayeva, Karlygash; Tipoe, Eileen L.
  4. Valuing the loss and damage from climate change: a review of some current issues By Jean-Michel Salles
  5. Convergence of actual, warranted, and natural growth rates in a Kaleckian-Harrodian model By Eric Kemp-Benedict
  6. (In)Visibility, Care and Cultural Barriers: The Size and Shape of Women’s Work in India By Ashwini Deshpande; Naila Kabeer
  7. Optimal Weight of Commercial Sector and Reproduction Scheme By Hiroshi Onishi
  8. Modelling cyclical variation in the cost pass-through: evidence from regime-dependent ARDL model By Konopczak, Karolina
  9. Libéralisme, néolibéralisme, ordo-libéralisme, libertarisme… : où se situe la politique de Donald Trump dans les traditions libérales ? By Anne Isla
  10. Die Illusion der Identität und die Krise der Wissenschaften By Brodbeck, Karl-Heinz
  11. The anti-democratic logic of right-wing populism and neoliberal market-fundamentalism By Ötsch, Walter; Pühringer, Stephan
  12. Ökonomische Expertise und politökonomische Machtstrukturen By Pühringer, Stephan; Liedl, Bernd
  13. Wissen und Nicht-Wissen angesichts "des Marktes": Das Konzept von Hayek By Ötsch, Walter
  14. "How to Pay for the Green New Deal" By Yeva Nersisyan; L. Randall Wray
  15. Die Wirkmacht der "Liebe zum Markt": Zum anhaltenden Einfluss ordoliberaler ÖkonomInnen-Netzwerke in Politik und Gesellschaft By Pühringer, Stephan; Ötsch, Walter
  16. The nature of Public Interest in Muslim and Non-Muslim writers By Hayat, Azmat; Muhammad Shafiai, Muhammad Hakimi

  1. By: Weikai Chen (Department of Economics, University of Massachusetts Amherst); Naoki Yoshihara (Department of Economics, University of Massachusetts Amherst)
    Abstract: This paper presents an intertemporal model of pre-industrial economies defined with leisure preference to study the condition of the emergence and persistence of exploitation as unequal exchange of labor. We show that pure workers are exploited in any finite periods if there is positive real profit rate, even though labor allocation among agents tends to be equalized in the limit regardless of the saving behaviors. The so-called Fundamental Marxian Theorem and Profit-Exploitation Correspondence Principle are generalized in the intertemporal setting with exploitation in the whole life, and the Class-Exploitation Correspondence Principle is established with exploitation within period.
    Keywords: Exploitation; Unequal Exchange of Labor; Persistence; Asymptotically Egalitarian
    JEL: D51 D63 C61 B51
    Date: 2019
  2. By: Burchardt, Tania; Hick, Rod
    Abstract: Inequality has acquired a newfound prominence in academic and political debate. While scholars working with the capability approach (CA) have succeeded in influencing the conceptualisation and measurement of poverty, which is increasingly understood in multidimensional terms, recent scholarship on inequality focusses overwhelmingly on economic forms of inequality, and especially on inequalities in income and wealth. In this paper we outline how the conceptual framework of the CA (focusing on ends rather than means, multidimensionality, and recognising the value of freedoms as well as attained functionings) has the potential to enrich the study of distributional inequality through offering a rationale for why inequality matters, exploring the association between different forms of inequality, and providing an analysis of power. But applying the CA in the context of advantage exacerbates some existing challenges to the approach (defining a capability list, and the non-observability of capabilities) and brings some fresh ones (especially insensitivity at the top of the distribution). We recommend a stronger and clearer distinction between concepts and measures. Capability inequality is a more appropriate and potentially revealing conceptual apparatus, but economic resources are likely to remain a crucial metric for understanding distributional inequality for the forseeable future.
    Keywords: inequality; capability approach; poverty; income; distribution; multidimensional
    JEL: N0
    Date: 2017–11–14
  3. By: Bowen, Alex; Kuralbayeva, Karlygash; Tipoe, Eileen L.
    Abstract: This paper estimates the share of jobs in the US that would benefit from a transition to the green economy, and presents different measures for the ease with which workers are likely to be able to move from non-green to green jobs. Using the US O*NET database and its definition of green jobs, 19.4% of US workers are part of the green economy in a broad sense, although most green employment is 'indirectly' rather than 'directly' green, comprising existing jobs that are expected to be in high demand due to greening, but do not require significant changes in tasks, skills, or knowledge. Analysis of task content also shows that green jobs vary in 'greenness', with very few jobs only consisting of green tasks, suggesting that the term 'green' should be considered a continuum rather than a binary characteristic. While it is easier to transition to indirectly green rather than directly green jobs, greening is likely to involve transitions on a similar scale and scope of existing job transitions. Non-green jobs generally appear to differ from their green counterparts in only a few skill-specific aspects, suggesting that most re-training can happen on-the-job. Network analysis shows that the green economy offers a large potential for short-run growth if job transitions are strategically managed.
    Keywords: skills; occupational choice; green employment; green economy; ES/K006576/1
    JEL: J21 J24 J62 O33 O51
    Date: 2018–05–01
  4. By: Jean-Michel Salles (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)
    Abstract: From an economic perspective, damage and loss valuation aims first at justifying climate change mitigation efforts. But the difficulties related to the heterogeneity of the damage and the time horizon of the impacts make the results very contingent of the computation hypotheses.The debate thus focused on the social cost of carbon, driven by the idea of basing climate change policies on emission pricing. But damage assessment could also be used as a basis for compensating victims. Although the idea of climate justice is struggling to establish the basis for this compensation, international negotiations have begun to lay the groundwork for it through the Warsaw Mechanism, which remains however far from this goal.
    Abstract: Dans une perspective économique, l'évaluation des pertes et dommages vise d'abord à justifier les efforts d'atténuation du changement climatique. Mais les difficultés liées à l'hétérogénéité des dommages et l'horizon temporel des impacts rendent les résultats très contingents des hypothèses de calcul. Le débat s'est ainsi focalisé sur le coût social du carbone, porté par l'idée de baser les politiques de lutte contre le changement climatique sur une tarification des émissions. Mais l'évaluation des dommages pourrait aussi servir de base à une compensation des victimes. Même si l'idée d'une justice climatique peine à établir les bases de cette compensation, les négociations internationales ont commencé à en poser des jalons à travers le Mécanisme de Varsovie qui reste cependant loin de cet objectif.
    Keywords: eEconomic valuation,Climate change,Compensation,Economic valuation,Loss and damage,Social cost of carbon,coût social du carbone,pertes et préjudices,évaluation économique,changement climatique
    Date: 2019
  5. By: Eric Kemp-Benedict (Stockholm Environment Institute (SE))
    Abstract: This paper describes a hybrid post-Keynesian and classical/neo-Marxian model with a 'center of gravity' where the actual, warranted, and natural growth rates coincide. In the model, investment determines saving in the short run, while investment depends on anticipated demand. The Keynesian stability is assumed not to hold, so the model features short-run Harrodian instability, which is bounded by a ceiling and floor. The resulting Kaleckian-Harrodian model is shown to produce some key stylized facts as long-run tendencies, to exhibit wage-led behavior, and to produce depressions in some circumstances.
    Keywords: Kaleckian, Harrodian, classical, neo-Marxian, cycles, technological change
    JEL: B50 E32 O40
    Date: 2019–05
  6. By: Ashwini Deshpande (Department of Economics, Ashoka University); Naila Kabeer (Department of Economics, Ashoka University)
    Abstract: Based on primary data from a large household survey in seven districts in West Bengal in India, this paper analyses the reasons underlying low labor force participation of women. In particular, we try to disentangle the intertwined strands of choice, constraints posed by domestic work and care responsibilities, and the predominant understanding of cultural norms as factors explaining the low labor force participation as measured by involvement in paid work. We document the fuzziness of the boundary between domestic work and unpaid (and therefore invisible) economic work that leads to mis-measurement of women’s work and suggest methods to improve measurement. We find that being primarily responsible for domestic chores lower the probability of “working†, after accounting for all the conventional factors. We also document how, for women, being out of paid work is not synonymous with care or domestic work, as they are involved in expenditure saving activities. We also find that religion and visible markers such as veiling are not significant determinants of the probability of working. Our data shows substantial unmet demand for work. Given that women are primarily responsible for domestic chores, we also document that women express a demand for work that would be compatible with household chores.
    Keywords: Women, Gender, Labor Force Participation, India
    Date: 2019–05
  7. By: Hiroshi Onishi (Faculty of Economics, Keio University)
    Abstract: In the field of commercial capital theory, recently Yano (2006) and Murakami (2014) have tried to incorporate the commercial sector into the reproduction scheme. However, Yano's formulation put the commercial capital outside the reproduction formula, and his explanation is too complex. Moreover, Murakami's formation still has a problem owing to his methodology that uses only the numerical examples. Therefore, this paper incorporates the commercial sector into the reproduction scheme as a perfect equation system based on the equalized profit rate. It is because equalized profit rate is also applied to the commercial sector to determine its weight in the whole economy. As a result of these calculations, this paper also identified that average profit rate is determined by the technological conditions only in the industrial sectors.
    Keywords: Commercial Sector, Reproduction Scheme, Equalized Profit Rate, Transformation Problem
    JEL: B51 E11 B14
    Date: 2019–05–15
  8. By: Konopczak, Karolina (Ministry of Finance in Poland)
    Abstract: In this study we develop a regime-dependent ARDL model in order to investigate how labour costs feed through into prices conditional on the business cycle position. The estimation results allow us to make inference on the cyclical behaviour of markups. The proposed methodology is applied to Polish industrial sectors. The obtained estimates point to procyclicality as the prevailing pattern of markup adjustment. Thus, overall markups in Polish industry seem to have a mitigating effect on business cycle fluctuations. The degree of procyclicality seems, however, to be positively correlated with the industry's degree of competition.
    Keywords: Non-linear cointegration; Regime-dependence; Cost pass-through; Markup cyclicality
    JEL: C22 E31 E32
    Date: 2019–05–29
  9. By: Anne Isla (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT1 - Université Toulouse 1 Capitole - UT2J - Université Toulouse - Jean Jaurès - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville)
    Abstract: "Libéralisme" est un mot aux significations multiples, porteur d"une lourde charge polémique. Il renvoie à des théories, des doctrines, des politiques, si bien que fièrement revendiqué par les uns, il sert à diaboliser les autres. Après avoir distingué et défini le libéralisme social (I) et le néolibéralisme (II), nous verrons que le néolibéralisme est avancé par ses défenseurs comme une solution à ce qu"ils qualifient de ""défaillances démocratiques"" et que ce néolibéralisme se décline en de nombreuses écoles (III). Puis nous insisterons sur les points communs à ses différents courants (IV) avant de tenter, en étudiant les différents discours de Donald Trump et de ses conseillers disponibles au terme d"un an de présidence, de situer la politique du chef des Etats-Unis. Nous montrerons alors qu"il s"agit pour lui de diriger l"Etat comme une entreprise. Cette conception de l"Etat, l"Etat en tant qu"entreprise, s"inscrit dans une doctrine particulière de la théorie économique : la théorie de l"agence appliquée à l"Etat (V). Mots clés : libéralisme, néolibéralisme, libéralisme social, politique économique, théories économiques,
    Keywords: liberalism,neoliberalism,social liberalism,economic policy,economic theories,United States,libéralisme,néolibéralisme,libéralisme social,politique économique,théories économiques,Etats-Unis
    Date: 2017–11–08
  10. By: Brodbeck, Karl-Heinz
    Abstract: Das Eingangszitat von George Forster aus dem Jahre 1793 gibt einen ersten Hinweis auf das, was nachfolgend zu entfalten ist. Als These formuliert: Die Begriffe der modernen Wissenschaften sind auf innere Weise mit dem Rechnen in einer Geldökonomie verbunden. Die vielfältig zu beobachtenden Krisenphänomene in zahlreichen Wissenschaften lassen sich auf einen gemeinsamen Grund zurückführen. Ich werde zunächst von einer spezifischen Blickweise ausgehen, die charakteristisch ist für die modernen Wissenschaften, um in dieser Perspektive die stillschweigenden kategorialen Voraussetzungen näher zu beschreiben. Daraus lassen sich dann Krisenphänomene, die in Mathematik, Physik und Ökonomie zu beobachten sind, verständlich machen.
    Keywords: Grundbegriffe der Wissenschaft,Physikalismus,Reduktionismus,Grundlagekrise der Mathematik,Theorie des Geldes,Sprachtheorie,Philosophie der Ökonomie,Satz der Identität,Prinzip der Kausalität
    JEL: A12 A14 B41 B59
    Date: 2019
  11. By: Ötsch, Walter; Pühringer, Stephan
    Abstract: The paper compares neoliberal market-fundamentalism and right-wing populism on the basis of its core patterns of thinking and reasoning. Based on an analysis of the work of important founders of market fundamental economic thinking (particularly Mises, and Hayek) and the arguments brought forward by leading right-wing populist we find highlight conceptual resemblances of these two approaches: Both show a world that is split into only two countervailing parts. Right-wing populism shows a society split into two groups, fighting against each other. In a similar vein, neoliberal market-fundamentalism shows only two possible countervailing economic and societal orders. Thus, we develop a scheme of the similar dual social worlds of right-wing-populism and market-fundamentalism and offer some examples in the history of the Republican Party, where these concepts mutually reinforced each other or served as a gateway for each other. The main conclusion of the paper is that neoliberal market-fundamentalism and right-wing populism can be perceived as two mutually reinforcing and radicalizing threats to democracy in the 21st century.
    Keywords: Right-wing populism,market-fundamentalism,inner images,Donald Trump,patterns of thinking
    JEL: A12 A14 B41 B59
    Date: 2019
  12. By: Pühringer, Stephan; Liedl, Bernd
    Abstract: Aufbauend auf neueren und älteren Forschungsergebnissen zum Einfluss von ÖkonomInnen auf politische Entscheidungsprozesse und mediale wirtschaftspolitische Debatten wird in diesem Beitrag ein eklatantes politökonomisches Machtungleichgewicht unter einflussreichen ökonomischen ExpertInnen aufgezeigt: Es kann vor allem in Deutschland eine starke Dominanz von neo- bzw. ordoliberalen Interessenskoalitionen bzw. -netzwerken gegenüber alternativen, keynesianischen oder gewerkschaftsnahen Netzwerken konstatiert werden, wohingegen in Österreich durch eine noch stärkere Bedeutung korporatistischer Strukturen dieses Ungleichgewicht zumindest schwächer ausgeprägt ist. Auf Basis dieses Beitrags kann argumentiert werden, dass das politökonomische Machtungleichgewicht in der Ökonomik als einer der Grundpfeiler der Persistenz neoliberaler Wirtschaftspolitiken zugunsten ökonomisch Mächtiger zu verstehen ist.
    Keywords: Neoliberales Gedankenkollektiv,Manipulation,Ordoliberalismus,Marktfundamentalismus,Informationsgesellschaft,Marktkonzept
    JEL: B13 B25 B53 E60 G14 P10
    Date: 2018
  13. By: Ötsch, Walter
    Abstract: Das Paper diskutiert den Einfluss von Karl Friedrich August von Hayek auf die Geschichte der ökonomischen Theorie, vor allem durch sein Konzept "des Marktes" als Wissenvermittlungs- und Wissensgenerierungsinstanz. Das ist mit einem Konzept des Nicht-Wissens für den Menschen verbunden, der angesichts des "Überwissens des Marktes" die Fähigkeit verliert, über das Wirtschaftssystem angemessen reflektieren zu können. Damit ist eine Aufwertung des Wissen von UnternehmerInnen und eine Abwertung des Wissens von WirtschaftswissenschaftlerInnen verbunden - mit Konsequenzen für das Konzept der Politik und auf die Art, wie z.B. über Klimaprobleme diskutiert werden. Im Paper werden diese Konzepte in Bezug auf die Absicht von Hayek diskutiert, langffristig die gesamte Gesellschaft zu verändern.
    Keywords: Neoliberales Gedankenkollektiv,Manipulation,Ordoliberalismus,Marktfundamentalismus,Informationsgesellschaft,Marktkonzept
    JEL: B13 B25 B53 D80 G14 P10
    Date: 2018
  14. By: Yeva Nersisyan; L. Randall Wray
    Abstract: This paper follows the methodology developed by J. M. Keynes in his How to Pay for the War pamphlet to estimate the "costs" of the Green New Deal (GND) in terms of resource requirements. Instead of simply adding up estimates of the government spending that would be required, we assess resource availability that can be devoted to implementing GND projects. This includes mobilizing unutilized and underutilized resources, as well as shifting resources from current destructive and inefficient uses to GND projects. We argue that financial affordability cannot be an issue for the sovereign US government. Rather, the problem will be inflation if sufficient resources cannot be diverted to the GND. And if inflation is likely, we need to put in place anti-inflationary measures, such as well-targeted taxes, wage and price controls, rationing, and voluntary saving. Following Keynes, we recommend deferred consumption as our first choice should inflation pressures arise. We conclude that it is likely that the GND can be phased in without inflation, but if price pressures do appear, deferring a small amount of consumption will be sufficient to attenuate them.
    Keywords: Green New Deal; Keynes; How to Pay for the War; Modern Money Theory
    JEL: B50 E0 E2 E3 E6 H6 Q0
    Date: 2019–05
  15. By: Pühringer, Stephan; Ötsch, Walter
    Abstract: Der Artikel behandelt die aktuell breit diskutierte Frage der Rolle und des Einflusses ordoliberalen Denkens in (wirtschafts-) politischen Debatten in Deutschland. Wir nehmen dabei erstens eine theoretische Verortung des Ordoliberalismus vor und zeigen zweitens anhand einer Sozialen Netzwerkanalyse die ungebrochene politische und mediale Wirkmächtigkeit ordoliberaler ÖkonomInnen bis heute.
    Keywords: Ordoliberalismus,Marktfundamentalismus,Soziale Netzwerkanalyse,Soziologie ökonomischen Denkens,Performativität der Ökonomie
    JEL: B13 B25 B53 Z13
    Date: 2019
  16. By: Hayat, Azmat; Muhammad Shafiai, Muhammad Hakimi
    Abstract: Leading a comfortable life on this planet with few problems and worries is one of the aims and objective of human since the dawn of history. Defining and then achieving a prosperous and comfortable life has been the subject of intense discussion among philosophers and religious scholars since the dawn of history. In order to investigate whether the contemporary economic system better serves the wellbeing of the general population (public interest), then it is very important to know that what the public interest itself actually means? To accomplish this task, we started this essay with an examination of the idea of public interest from both Muslims and non-Muslims writers. After the emergence of enlightenment self-interest got prominence due to which public interest among non-Muslims writers is considered as a rule or concept serving to present something as suitable for long term approval or acceptance according to changing circumstances. In contrast Muslim writers think that public interest refers to the fulfilment of the objective of the Sharia which lies in safeguarding their faith (Din/Religion), their human self (Nafs), their intellect (Aql), their posterity (Nasl) and their wealth (Maal). There will be violence and corruption without these five basics purposes of Sharia.
    Keywords: Maqasid Al-Sharia, Public Interest, Liberalism and Islam
    JEL: A13 B59 H11 H44 I31 K4 P5
    Date: 2019–05–02

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