|
on Heterodox Microeconomics |
|
Issue of 2019‒08‒12
eighteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Dalton, John; Logan, Andrew |
| Abstract: | This paper was written for a symposium on "Reconsidering the Classics." Rereading Joseph Schumpeter's Capitalism, Socialism and Democracy (CSD) for today, we argue Schumpeter's vision for a dynamic world remains essential for understanding the world. We begin the paper by briefly describing some background on Schumpeter and the context in which CSD was written. Then, we summarize the book, which Schumpeter divided into five separate parts on Marx, capitalism, socialism, democracy, and a history of socialist parties. Throughout our summary, we highlight the key arguments and touch on many ideas in the book, such as Schumpeter's description of socialism and his theory of democracy. Instead of tackling all these ideas in depth, we discuss the book's usefulness for readers today by focusing on Schumpeter's Big Idea--"creative destruction." We conclude by discussing how influential CSD has been, and continues to be, in the social sciences and then provide suggestions for those interested in reading CSD today. |
| Keywords: | Joseph Schumpeter; Capitalism, Socialism and Democracy; Innovation; Entrepreneurship; Creative Destruction |
| JEL: | B31 O3 P0 |
| Date: | 2019–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95012&r=all |
| By: | Vernon L. Smith (Economic Science Institute, Chapman University); Sabiou M. Inoua (Economic Science Institute, Chapman University) |
| Abstract: | We argue that neoclassical value theory suffers from a more basic and serious logical indeterminacy, which is inherent in the axiom of price-taking behavior, and which renders price dynamics indeterminate before inquiring as to its stability. If everyone in the economy takes price as given, whence come these prices? Who is giving these prices? Jevons avoided the indeterminacy by assuming that people must have complete information on supply and demand, and the consequent equilibrium prices—‘perfect competition.’ Walras in effect imported an external agent who found the prices by trial-and-error-correction (the Walrasian Auctioneer). Paradoxically, both approaches had the potential better to serve central planning, than a market economy. A theory based on price taking agents required some agency for giving prices. Indeed, the fit with socialism was rigorously established by influential neoclassical authors starting from Wieser (1893, ch. VI) and Pareto (1897, 364-371; 1909, 362-364), and, more formally during the Socialist Calculation Debate, by Barone ([1908] 1935), Lerner (1934), and Lange (1936, 1937). The paradox is hidden in the idea of ‘perfect competition’ a passive treatment of individuals who are not even interacting, let alone interacting in a rivalrous manner. ‘Perfect competition’ is the negation of any real competition, as Hayek (1948) emphasized. |
| Keywords: | Methodology of Economics, Micro-economic Theory, Experimental Economics, History of Economic Thought. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:chu:wpaper:19-15&r=all |
| By: | José Espinoza-Delgado (University of Goettingen / Germany); Jacques Silber (Bar-Ilan Univesity, Ramat-Gan / Israel) |
| Abstract: | The Alkire and Foster (2011) methodology, as the mainstream approach to the measurement of multi-dimensional poverty in the developing world, is insensitive to inequality among the multidimensionally poor individuals and does not consider simultaneously the concepts of efficiency and distributive justice. Moreover, the vast majority of empirical indices of multi-dimensional poverty in the literature overlook intra-household inequalities, an issue that is crucial to a better understanding of gender inequalities, because they equate the poverty status of the household with the poverty status of all individuals in the household. Consequently, using the general framework proposed by Silber and Yalonetzky (2013) and Rippin’s ideas on multi-dimensional poverty measurement (2013, 2017), we propose in this paper to depart somehow from the mainstream approach and take an individual-based and inequality sensitive view of multi-dimensional poverty when only ordinal (dichotomized) variables are available. We use such an approach to estimate multi-dimensional poverty among individuals aged 18 and 59 years living in Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica, shedding thus some light on gender differences in poverty and inequality in those countries. Overall, we find that individuals living in Guatemala have the highest probability of being multidimensionally poor, followed by the ones from Nicaragua; people living in Costa Rica, by contrast, have by far the lowest probability of being poor. In the middle appears Honduras and El Salvador, Hondurans having a larger probability of being multi-dimensionally poor than the Salvadorians. Regarding the gender gaps, the overall estimates suggest that the incidence and the intensity of multidimensional poverty in Central America are higher among females; inequality, however, is somewhat higher among males. |
| Keywords: | multi-dimensional poverty measurement, inequality, gender inequality, Latin America, Central America |
| JEL: | I3 I32 D1 D13 D6 D63 O5 O54 |
| Date: | 2018–09–27 |
| URL: | http://d.repec.org/n?u=RePEc:got:iaidps:237&r=all |
| By: | Lamia Kandil (Observatoire français des conjonctures économiques); Hélène Périvier (Observatoire français des conjonctures économiques) |
| Abstract: | This paper aims to explain why the division of domestic labor within couples differs according to their marital status. We analyze the evolution of the gender division of labor in France using time-use surveys (1985, 1999 and 2009). In 1985 and in 1998, married women were performing a larger share of domestic labor than cohabiting women. In 1985 this gap is explained by differences in the observed characteristics of married and cohabiting couples, whereas by the late 1990s cohabiting couples were opting for an organization that was less unequal than that of married couples, all else being equal. In 2009, the average share of domestic labor performed by women was about the same whether they were cohabiting or married (72% and 73.5%), but it was significantly lower for women in civil union, which was introduced in 1999 (65.1%). The self-selection process of couples regarding their gender ideology might explain this result: the civil partnership attracts more egalitarian couples. |
| Keywords: | Domestic labor; Marital status; Gender; Time use survey; Matching method |
| JEL: | D13 J12 J16 J22 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1c08lmfkfv8e7rnka5ll9vumdr&r=all |
| By: | Silvia Blasi (Department of Economics and Management, University of Padova); Silvia Rita Sedita (Department of Economics and Management, University of Padova) |
| Abstract: | The paper explores the emergence of a new research field, implementing a bibliometric analysis of the literature on the B Corp. We built a database including 82 articles collected by Scopus and published from 2009 to 2019 that discuss the B Corp, or the benefit corporation, or, more generally, social entrepreneurship. We performed descriptive and citation analyses, with the objective of identifying the roots and the evolution of the concept of B Corp. This emergent field is an important component of the structural change occurring in our society, which, in recent years, has seen the emergence of new for-profit organizational forms with a strong social consciousness. The bibliometric analysis reveals the foundational works and the historical evolution of the research field, which, while rooted in the corporate social responsibility literature, opened up into the analysis of how the legislation, the firm’s strategy, the entrepreneurial orientation, and the policy interventions are intertwined in the concrete development of socially and environmentally conscious businesses. |
| Keywords: | B Corp, benefit corporation, social entrepreneurship, sustainability, bibliometric analysis |
| JEL: | M10 M14 L31 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0236&r=all |
| By: | Chulwook Park |
| Abstract: | The dynamics of protection processes has been a fundamental challenge in systemic risk analysis. The conceptual principle and methodological techniques behind the mechanisms involved [in such dynamics] have been harder to grasp than researchers understood them to be. In this paper, we show how to construct a large variety of behaviors by applying a simple algorithm to networked agents, which could, conceivably, offer a straightforward way out of the complexity. The model starts with the probability that systemic risk spreads. Even in a very random social structure, the propagation of risk is guaranteed by an arbitrary network property of a set of elements. Despite intensive systemic risk, the potential of the absence of failure could also be driven when there has been a strong investment in protection through a heuristically evolved protection level. It is very interesting to discover that many applications are still seeking the mechanisms through which networked individuals build many of these protection process or mechanisms based on fitness due to evolutionary drift. Our implementation still needs to be polished against what happens in the real world, but in general, the approach could be useful for researchers and those who need to use protection dynamics to guard against systemic risk under intrinsic randomness in artificial circumstances. |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1907.11622&r=all |
| By: | Pancarini, Ans Shinta |
| Abstract: | The need clothes that bring benefit serves as a cover nakedness, over the times fashion became an icon for Muslim identity as identity, nation and civilization. Islamhas instilled the values of philosophy as well as being bargading position for Muslims. |
| Keywords: | Fashion, Islamic Law |
| JEL: | A1 A14 E2 E20 E3 E39 K0 |
| Date: | 2018–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95084&r=all |
| By: | Surendran Padmaja, Subash; Veettil, Prakashan Chellattan; K.S., Aditya |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2019–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea19:291305&r=all |
| By: | Keith Blackwell |
| Abstract: | This paper introduces a simple symmetric Quantal Response Statistical Equilibrium (QRSE) model that can fit many commonly observed distributions of Economic and Financial data including Laplace, Gaussian, Logistic, and Student’s T distributions. This paper also introduces the application of QRSE to a financial market setting. A QRSE market model uses joint probability distribution of asset returns and entropy constrained buy/sell decisions of investors to explain stylized facts we commonly observe in the distributions of asset returns and economic data such as fat-tails, excess peakedness, and skew. Using the simplified model, this paper extends the existing logic and understanding of QRSE in order to provide a behavioral explanation for these commonly observed distributions of data. |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:new:wpaper:1912&r=all |
| By: | Ana Miranda (IPC-IG) |
| Abstract: | "Malgré l'essor des initiatives d'approvisionnement des marchés alimentaires publics, les recherches menées sur les principaux défis rencontrés et les enseignements tirés par ces initiatives restent limitées. Pour combler quelques-unes de ces lacunes, Miranda (2018) propose un examen de la littérature identifiant des pratiques exemplaires visant à promouvoir la participation des petits exploitants à l'approvisionnement des marchés alimentaires publics et à générer des synergies avec la poursuite des objectifs de sécurité alimentaire et nutritionnelle. Le présent One Pager présente les principales pratiques relevées par cet examen". (...) |
| Keywords: | Approvisionner, marchés publics, petits, exploitants, agricoles, examen, littérature, pratiques optimales |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipc:opfran:411&r=all |
| By: | Lilit Popoyan (Laboratory of Economics and Management); Mauro Napoletano (Observatoire français des conjonctures économiques); Andrea Roventini (Observatoire français des conjonctures économiques) |
| Abstract: | We develop a macroeconomic agent-based model to study how financial instability can emerge from the co-evolution of interbank and credit markets and the policy responses to mitigate its impact on the real economy. The model is populated by heterogenous firms, consumers, and banks that locally interact in dfferent markets. In particular, banks provide credit to firms according to a Basel II or III macro-prudential frameworks and manage their liquidity in the interbank market. The Central Bank performs monetary policy according to dfferent types of Taylor rules. We find that the model endogenously generates market freezes in the interbank market which interact with the financial accelerator possibly leading to firm bankruptcies, banking crises and the emergence of deep downturns. This requires the timely intervention of the Central Bank as a liquidity lender of last resort. Moreover, we find that the joint adoption of a three mandate Taylor rule tackling credit growth and the Basel III macro-prudential frame-work is the best policy mix to stabilize financial and real economic dynamics. However, as the Liquidity Coverage Ratio spurs financial instability by increasing the pro-cyclicality of banks’ liquid reserves, a new counter-cyclical liquidity buffer should be added to Basel III to improve its performance further. Finally, we find that the Central Bank can also dampen financial in- stability by employing a new unconventional monetarypolicy tool involving active management of the interest-rate corridor in the interbank market. |
| Keywords: | Financial instability; Interbank market freezes; Monetary policy; Macro-prudential policy; Basel III regulation; Tinbergen principle; Agent - based models |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1j4v8sl4fc9a49ankmnhv6bb6a&r=all |
| By: | Michael Cauvel |
| Abstract: | This paper estimates the relationship between aggregate demand and the functional distribution of income in the U.S. economy using a series of aggregative VAR models. Like most previous aggregative studies, it finds evidence of Goodwin cycle effects - i.e. profit-led demand and a profit-squeeze effect - for the U.S. economy in baseline estimates using assumptions traditionally used in the aggregative literature. However, the results of other specifications suggest that these observed Goodwin cycle effects likely reflect a misinterpretation of procyclical variation in labor productivity - one of the main components of the wage share. When correcting for the cyclical effects of demand on productivity, the results differ dramatically; estimates are indicative of wage-led demand, and the effects of demand on distribution are mixed or insignificant. These findings suggest that evidence of Goodwin cycle effects is likely the result of biased estimates. Instead, it appears that the short-run relationship between the wage share and demand should be viewed as a combination of wage-led demand and procyclical productivity effects. |
| Keywords: | Functional distribution of income, neo-Kaleckian model, wage-led and profit-led demand regimes |
| JEL: | E25 E11 E12 E32 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:imk:fmmpap:47-2019&r=all |
| By: | YAMASHITA Kazuhito |
| Abstract: | Recently in Japan it is argued that we should protect small-scale, part-time farmers because small-scale farming tends to be more highly esteemed around the world than large-scale farming. The declaration by the United Nations, which the argument is based upon, is about peasants or farmers who are poor and subject to discrimination. The argument was hijacked by the fake interpretation or modification of the UN declaration in favor of defending the current situation of Japanese farming. Peasantism in the Japanese pre-war period which ended in 1945 was not for the benefit of poor peasants but for the interests of landowners who exploited peasants. On the contrary, Kunio Yanagida who tried to defend the interests of farmers argued that it is impossible to save farmers from poverty without enlarging the size of farms and decreasing the number of farmers. He advocated the use of cooperatives in order to increase the income of the actual peasants until the farms reached adequate size. He argued that cooperatives of individual farmers or peasants could collectively earn the equivalent income of a large scale farmer through the sale of their farm products not when they were harvested and in ample supply in the market, but when the price was high, by storing their products together after harvesting, jointly purchasing production inputs such as fertilizers to gain discounted rates, and by leasing their surplus money to each other. In fact, the actual cooperatives worked for the upper-class farmers or landowners. Peasants or individual farmers were not allowed to join cooperatives. The great movement of improving the economy and status of farmers and villages after the Great Depression led by the Ministry of Agriculture changed the characteristics of cooperatives. One cooperative was established in each town and village. All the local farmers became members of the cooperatives. Each cooperative handled all of the agriculture-related business, such as the sale of farm products, the purchase of inputs and other materials and farm financing. Kotaro Sengoku, the leader of the cooperatives, activated cooperatives and brought them great prosperity, eventually constructing a large building for cooperatives in the center of Tokyo. The cooperatives were turned into administrative bodies for rural areas during the war, which then became the current agricultural cooperatives called JAs after the war. JAs were formed and have developed not through the autonomy of member farmers but under the guidance or direction of the Ministry of Agriculture and the leaders of JAs. That is why JAs have become dependent on governmental aid not the idea of self-help advocated by Kunio Yanagida. JAs and their employees tend to regard member farmers not as the core or center of cooperatives movements but as objects which provide them with benefits. Therefore, it is natural that the current administration has proposed the reform of JAs. Kunio Yanagida and the great movement towards improving the economy and the status of farmers and villages tried to utilize cooperatives to help individual farmers or peasants out of poverty. In fact, the poverty in farming and villages has disappeared. Farmers' incomes have become larger than other worker incomes since 1965. The objective of cooperatives has been achieved. At the same time, JAs have flourished by making use of their huge bank account balances which has accrued mainly out of the farming income of part time farmers, which leads to the process of de-farming of JAs. In the same way as in the era of Kunio Yanagida, the concept of cooperatives is quite different from the reality. |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:19034&r=all |
| By: | Aziz Jaafar (Bangor University); Andi Duqi (University of Bologna); Mohammed Warsame (University of Sharjah) |
| Abstract: | Using a sample of Islamic and conventional financial institutions domiciled in 16 countries for the period 2000-2015, we examine how ownership structure affects dividend policy. Our main findings indicate that ownership identity is important in explaining dividend policy in these banks, albeit in different patterns. In particular, the results suggest that government ownership seems to exert negative effects on dividend payouts in both types of banks, which is in line with the preference of governments towards bank stability. With respect to family ownership, the impact is negative for conventional banks but positive for Islamic ones, consistent with agency theory. These results are to some extent similar in the case of foreign ownership where it is associated with a higher payout policy in Islamic banks, but not significant in conventional ones. Our results are robust to an array of additional analyses including propensity score matching. |
| Keywords: | Agency theory, Islamic banking, ownership structure, payout policy. |
| JEL: | G21 G35 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:bng:wpaper:19010&r=all |
| By: | Alessi, Lucia (European Commission); Ossola, Elisa (European Commission); Panzica, Roberto (European Commission) |
| Abstract: | This study provides evidence on the existence of a negative Greenium, i.e. a green risk premium, based on European individual stock returns and portfolios. By defining a green factor which is priced by the market, we offer a tool to assess a portfolio exposure to climate risk and hedge against it. We estimate that even in a rather benign scenario, there would be losses at the global level, including for European large banks, should they fail to price the Greenium. By halving the exposure to carbon-intensive sectors, losses would be reduced by 30%. These results call for the introduction of carbon stress tests for systemically important institutions |
| Keywords: | climate risk, ESG disclosure, factor models, asset pricing, stress test |
| JEL: | G01 G11 G12 Q01 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:jrs:wpaper:201912&r=all |
| By: | Salvatore Nisticò (Department of Social Sciences and Economics, Sapienza University of Rome (IT).) |
| Abstract: | La storia finanziaria dell’ultimo decennio ci offre diversi spunti di riflessione sullo stato e le prospettive dell’attuale sistema monetario. Le dinamiche sui mercati delle criptovalute e le trasformazioni politiche in atto sembrano sottoporre l’attuale assetto monetario a pressioni di segno opposto: mentre le prime promuovono – da una prospettiva liberale e sovranazionale – la riduzione della contiguità tra emissione monetaria e potere politico, le seconde – da una prospettiva populista e sovranista – premono per un suo deciso rafforzamento. Questo lavoro discute la natura e le implicazioni di queste due tensioni, attraverso le lenti della memoria storica del nostro continente, e del pensiero di A. Smith e F. Von Hayek. |
| Keywords: | Smith, Hayek, Criptovalute, Sovranismo, Moneta, Banche Centrali. |
| JEL: | B12 B25 E31 E51 E58 N23 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:saq:wpaper:8/19&r=all |
| By: | Mutaqin, Diana Agustina |
| Abstract: | The purpose of this study is to review some of the criticisms of the Bank's interest system. Issues related to whether bank interest including usury or not usury has been debated and is still being discussed to date by Islamic economists. But now there has been criticism from Western or Conventional Economists of the negative impact of the Bank's interest in the economy. The method used is a qualitative method using descriptive analysis and literature review. From these experiences, the Islamic Monetary System which is free from interest can be a solution to realize prosperity and guarantee economic injustice. this system is expected not only to increase the money in circulation but how to be able to improve the performance of the real sector in accordance with Islamic sharia. Because basically in the Islamic monetary system, it is not only aimed at material welfare but aims at moral well-being. There are at least five values of Islamic economic instruments that can be integrated into the economic system, namely zakat, waqf, social security, the justice system in resolving economic disputes and sharia financial institutions. |
| Keywords: | criticism, interest system, Islamic monetary |
| JEL: | A10 E42 P43 P51 |
| Date: | 2019–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95006&r=all |
| By: | Centro de Investigaciones para el Desarrollo |
| Abstract: | En el marco del Bicentenario de la independencia de Colombia, el Centro de Investigaciones para el Desarrollo (CID), en alianza con el periódico Portafolio, ha presentado una serie de reflexiones sobre la trayectoria económica que ha atravesado el país, en aras de entender los retos del futuro y las lecciones aprendidas del pasado. El contenido es muy amplio incluyendo temas que han jugado un rol clave en la historia del país, como el café, la violencia, la tierra, hasta temas que son menos conocidos pero deberían formar parte de la reflexión colectiva, como el papel de la mujer, los estudios sectoriales, o el desarrollo de largo plazo. El lector no tiene que esperarse una narración univoca, ni un recorrido lineal: estos escritos son reflexiones que vienen de investigadores con enfoques teóricos y metodológicos muy diferentes, como tradición en la Universidad Nacional. Así, ensayos de análisis económico de las instituciones son acompañados por reflexiones de análisis marxiano aplicado, y la cliometría se entrelaza a la finanza pública. Por la misma razón, decidimos no proponer una estructura interpretativa o una organización del contenido, prefiriendo reportar los escritos en el orden cronológico en el cual aparecieron en el portal del periódico. *** In the framework of the Bicentennial of the independence of Colombia, the Centro de Investigaciones para el Desarrollo (CID), in alliance with the newpaper Portafolio, has gathered a series of reflections about the economic trajectory that the country has gone through, for the sake of understanding the challenges of the future and the lessons learned from the past. The content is very broad including issues that have played a key role in the history of the country, such as coffee, violence, land, and issues that are less known but should be part of collective reflection, such as the role of women, sectoral studies, or long-term development. The reader should not expect a univocal narrative, nor a linear perspective: these texts are reflections that come from researchers with very different theoretical and methodological approaches, as a tradition at the Universidad Nacional. As a result, economic analysis of the institutions goes hand by hand with applied Marxian analysis, and the cliometry is intertwined with public finance. For the same reason, we decided not to propose an interpretative structure or an organization of the content, opting for an order of presentation that follows the chronological order in which they appeared in the newspaper's portal. |
| Keywords: | bicentenario; colonia, reforma agraria; paz; mujeres; independencia; gasto militar; conflicto distributivo; desarrollo de largo plazo; café; sector eléctrico; financiarización; impuestos |
| JEL: | B51 Q24 P14 J16 O11 N86 H24 |
| Date: | 2019–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:col:000426:017344&r=all |