nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2019‒10‒07
eighteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Macroscopic approximation methods for the analysis of adaptive networked agent-based models: The example of a two-sector investment model By Jakob J. Kolb; Finn M\"uller-Hansen; J\"urgen Kurths; Jobst Heitzig
  2. Social Innovation and Social Policy: Empowerment of indigenous women the management of sustainable productive organizations in Vietnam and Mexico By Medel-Ramírez, Carlos; Medel-López, Hilario
  3. Holding Together what Belongs Together: A Strategy to Counteract Economic Polarisation in Europe By Claudius Gräbner; Philipp Heimberger; Jakob Kapeller
  4. Workers BuyOut: why employee-owned enterprises are more resilient than corporate business in time of economic and financial crisis? The case of Emilia-Romagna Region* By Andrea BASSI; Alessandro Fabbri
  5. Women Leaders in Industry in Nineteenth Century France: The Case of Amélie de Dietrich. By Herrade Igersheim; Charlotte Le Chapelain
  7. The Role of Culture on Female Labor Supply: Evidence from Turkey By Akyol, Pelin; Okten, Cagla
  8. Labour Productivity, Wages and the Functional Distribution of Income in Portugal: A Sectoral Approach By João Carlos Lopes; José Carlos Coelho; Vítor Escária
  9. The economics of green lifestyles: a micro-economic study of Australian household panel and housing market data By Franz Fuerst; Georgia Warren-Myers
  10. Economic Polarisation in Europe: Causes and Options for Action By Claudius Gräbner; Philipp Heimberger; Jakob Kapeller
  11. Homo Oeconomicus im Treibhaus Erde: Umweltpolitische Herausforderungen aus polit-ökonomischer Perspektive By Mause, Karsten
  12. The economics of eudaimonia By Pugno, Maurizio
  13. La estructura sectorial de Colombia: Un análisis insumo-producto By Julian Andres VILLAMIL; Luis Felipe QUINTERO; Gustavo Adolfo HERNANDEZ-DIAZ
  14. Human Development, Social Interactions, and Identity Formation By Avner Seror
  15. Représentation, voix et négociation collective l’organisation à la demande dans l’économie des plates-formes numériques By Johnston, Hannah.; Land-Kazlauskas, Christopher.
  16. Generación de empleos y clústeres By Julian Andres VILLAMIL; Luis Felipe QUINTERO; Gustavo Adolfo HERNANDEZ-DIAZ
  17. Homelessness, Property Rights and Institutional Logics By John M. Luiz; James Rycroft
  18. Eductive stability may not imply evolutionary stability in the presence of information costs By Ahmad, Naimzada; Marina, Pireddu

  1. By: Jakob J. Kolb; Finn M\"uller-Hansen; J\"urgen Kurths; Jobst Heitzig
    Abstract: In this paper, we propose a statistical aggregation method for agent-based models with heterogeneous agents that interact both locally on a complex adaptive network and globally on a market. The method combines three approaches from statistical physics: (a) moment closure, (b) pair approximation of adaptive network processes, and (c) thermodynamic limit of the resulting stochastic process. As an example of use, we develop a stochastic agent-based model with heterogeneous households that invest in either a fossil-fuel or renewables-based sector while allocating labor on a competitive market. Using the adaptive voter model, the model describes agents as social learners that interact on a dynamic network. We apply the approximation methods to derive a set of ordinary differential equations that approximate the macro-dynamics of the model. A comparison of the reduced analytical model with numerical simulations shows that the approximation fits well for a wide range of parameters. The proposed method makes it possible to use analytical tools to better understand the dynamical properties of models with heterogeneous agents on adaptive networks. We showcase this with a bifurcation analysis that identifies parameter ranges with multi-stabilities. The method can thus help to explain emergent phenomena from network interactions and make them mathematically traceable.
    Date: 2019–09
  2. By: Medel-Ramírez, Carlos; Medel-López, Hilario
    Abstract: The present proposal, as an area of opportunity, addresses the empowerment of indigenous women, as a mechanism that seeks to achieve the development of management skills of sustainable productive organizations in the short, medium and / or long term, create individual commitment to develop their own potentialities and to generate an answer for their social change and human development. This in support of the strategy to combat poverty and social exclusion, through the development of productive projects, through the management of sustainable productive organizations that seek to improve the living conditions and social position of indigenous women. The importance of the research is that it seeks to deepen the social exclusion processes present in indigenous women, in order to propose alternative solutions in order to overcome their condition of multidimensional poverty and that seek to strengthen the actions for empowerment in the development of their management capacities themselves that are elements that promote the development of sustainable productive organizations.
    Keywords: Empowerment of indigenous women, management of sustainable organizations, multidimensional poverty, social exclusion., Vietnam, México
    JEL: I32 I38 O38
    Date: 2019–09–22
  3. By: Claudius Gräbner; Philipp Heimberger (The Vienna Institute for International Economic Studies, wiiw); Jakob Kapeller
    Abstract: The 2017-2018 economic upswing in the EU only masked the underlying economic polarisation in the bloc, which will again become more evident as the economy continues to cool. What could a European strategy look like that counteracts the existing structural polarisation and thereby strengthens the cohesion of Europe? Based on a new study, this policy brief provides a sketch of policy suggestions on which the European Commission or leaders of EU member countries could take the lead, including Coordinated industrial policy programmes Measures against rising income (and wealth) inequality Institutional reforms of the eurozone Further reforms of the financial sector Efforts to harmonise social and ecological regulation in the EU towards higher common standards Wage and fiscal policies geared towards reducing excessive current account surpluses Measures to counteract tax avoidance by international corporations.
    Keywords: Europe, European integration, economic openness, competitiveness
    JEL: B5
    Date: 2019–09
  4. By: Andrea BASSI (Bologna University (Italy)); Alessandro Fabbri (Bologna University (Italy))
    Abstract: The Workers BuyOut (WBO) is an economic and social phenomenon that has developed since the beginning of the 2008 financial and economic crisis and is still growing. In Italy, its roots can be traced back to the 1970s and today journalists and politicians are publishing reportages and books on this phenomenon. Inside the Italian scientific community, also some economists have dedicated accurate but rare studies to the topic. Nevertheless, the WBO has not yet become the focus of a precise and in-depth research by sociologists, despite its evident social relevance. The present paper is the result of a sociological investigation carried out by the authors and aims at illustrating this phenomenon through the lens of organizational analysis. It is structured in five sections: a general introduction; a description of the phenomenon at the national level, through the analysis of its normative grounds and its quantitative dimensions; a more detailed description of the WBO in EmiliaRomagna Region; a focus on the case study of one firm that turned into a successful WBO; a critical conclusion, highlighting the main incentives and obstacles for the full development of WBO experiences.
    Keywords: Workers BuyOut; Italy; Emilia-Romagna; cooperatives; State; success
    JEL: J54 L31 L33 P13
    Date: 2019
  5. By: Herrade Igersheim; Charlotte Le Chapelain
    Abstract: This article traces the history of Amelie de Dietrich’s role - from 1806 to her death in 1855 - as the head of one of the oldest family-owned businesses: the De Dietrich company. Amelie took important strategic decisions to adapt the company to the new economic opportunities in the metal sector, which arose in the first half of the nineteenth century. Her choices were decisive for the future of the company; what is more, she succeeded in restoring the familial ownership. Given the entrenched assumptions about gender roles prevalent in the early nineteenth century, how can we explain her success in meeting such difficult challenges? Relying on Amélie de Dietrich’s own unpublished correspondence, this contribution examines the factors that explain her success in imposing herself as a Maître des Forges. It thus underlines women’s role – as business leaders – during the industrialization process.
    Keywords: French industrial revolution, entrepreneurship, invisible women, De Dietrich company.
    JEL: N63 N83
    Date: 2019
  6. By: Mejia, Carlos Alberto
    Abstract: El propósito de este documento de trabajo consiste en controvertir mediante el uso de evidencias documentales diversas críticas hechas en distintas épocas y lugares a la obra de Karl Marx, centrándose particularmente en la obra de Jon Elster, uno de sus críticos más incisivos. Partiendo de su consideración sobre lo que denomina oscurantismo en las Ciencias Sociales, el texto debate en torno de si el pensador de Tréveris desconocía las diferencias individuales en el proceso de trabajo, de si buena parte de su obra intenta explicar la existencia de la sociedad a partir del denominado determinismo tecnológico, presente en la exposición de sus teorías sobre el desarrollo de las fuerzas productivas y de la tecnología, de si Marx olvidó tratar el tema de la relación entre religión y capitalismo o si sus escritos eludieron la problemática de la acción colectiva de los empresarios y los capitalistas. El texto intenta arrojar alguna luz sobre el tema.
    Keywords: Marx, trabajo, tecnología
    Date: 2019–08–30
  7. By: Akyol, Pelin (Bilkent University); Okten, Cagla (Bilkent University)
    Abstract: This paper investigates the effect of culture on female labor market outcomes using new micro-level data on two distinct Muslim denominations in Turkey: Sunni and Alevi Muslims. We find a positive and significant effect of being an Alevi Muslim on female labor force participation and employment probability compared to a Sunni Muslim whereas there are no significant differences in male labor market outcomes between the two denominations. We provide evidence that Alevi Muslims have more gender equal views regarding the role of women in the labor market and argue that differences in gender views drive the results.
    Keywords: female labor force participation, culture, gender
    JEL: J16 J21
    Date: 2019–09
  8. By: João Carlos Lopes; José Carlos Coelho; Vítor Escária
    Abstract: The main purpose of this paper is to studythe functional distribution of income in Portugal in the long run, considering the period between 1953 and 2017. The labour share in income or value added depends on two fundamental variables, the labour productivity and the average labour compensation.The trends of these variables are quantified, for the aggregate economy and for its main productive sectors. An interesting result emerges, namely the different dynamics across sectors, both for the (unadjusted)wage share (considering only the wages of employees) and for the adjusted labour share (considering also as labour compensation one fraction of mixed income). Moreover, a shift-share analysis is used, in order to distinguish the importanceof each sector’s wage share evolution (“within”effect) and the changes in each sector’s weight (structural changes, or “between”effect). Finally, a first attempt to incorporate the effect of wage inequalityon the functional distribution of income is made, subtracting the labour compensation of the highest paid workers (top 10%, 5% and 1%) in order to calculate the wage share of the (so-called) typical workers.
    Keywords: Functional Income Distribution;Labour Share;Sectoral Analysis; Shift-Share Analysis; Wage Inequalities; Portugal.
    JEL: D33 E25
    Date: 2019–09
  9. By: Franz Fuerst; Georgia Warren-Myers
    Abstract: This study examines the economic effects of voluntary commitments to a more sustainable individual lifestyle. In particular, it investigates the crucial nexus between environmental factors and health and well-being outcomes. It promises to generate important insights into this multi-faceted relationship by focussing on a hitherto understudied topic, i.e. whether the housing market and particularly the spatial variation in house prices may play a decisive mediating role for the quality of the surrounding built and natural environment. This project seeks to enhance our understanding of the relationship between individual environmental attitudes and economic outcomes but also to inform policies in the public health, urban planning and local economic development arenas.
    Keywords: House Prices; Panel Data Analysis; Public Health; sustainable lifestyles
    JEL: R3
    Date: 2019–01–01
  10. By: Claudius Gräbner; Philipp Heimberger (The Vienna Institute for International Economic Studies, wiiw); Jakob Kapeller
    Abstract: This study discusses the challenges that economic policy-makers in Europe have to cope with, in order to ensure an economically prosperous and institutionally stable community of Member States of the European Union (EU). At the analytical level, we not only document a process of multi-dimensional polarisation of EU countries, but also link the existing economic divergences with a central long-term problem, namely structural polarisation differences in the institutional and legal embedding (e.g. in the areas of tax and corporate law, the labour market or the financial sector) and in technological capabilities are a major driver of divergence in living standards between some Member States. This polarisation, which started even before the financial crisis but has intensified over the last ten years, is due largely to the global and the European ‘race for the best location’. Without coordinated and cooperative intervention by economic policy-makers, a further drifting-apart of economic development paths seems unavoidable. The large differences in the production structures of the EU countries and the resulting highly unequal distribution of technological capabilities are self-reinforcing in nature, and will further intensify polarisation. The present study provides proposals for a coherent European overall strategy that not only addresses existing problems and renders possible the often-promised upward convergence between EU countries, but also provides a potential basis for dealing with key future challenges (such as digitisation, ageing society, climate change or global trade) on the basis of common European objectives. The focus is on safeguarding and expanding European values and institutions, in order to deepen European integration at key points; and thus also to contribute, in the medium to long run, to a transformation of the global economic order from the European side. A central argument is that coordinated measures in various policy areas – especially in wage, monetary, fiscal and industrial policy – are of central importance in creating a long-term successful economic basis for the common European economic and monetary area. Disclaimer The study was first published by the Friedrich-Ebert-Stiftung in German language (‚Wirtschaftliche Polarisierung in Europa Ursachen und Handlungsoptionen‘ by Jakob Kapeller, Claudius Gräbner, Philipp Heimberger, ISBN 978-3-96250-376-5, Bonn, 2019). The German version of this study was financed by the FES under the project "Für ein Besseres Morgen".
    Keywords: Europe, European integration, economic openness, competitiveness
    JEL: B5
    Date: 2019–09
  11. By: Mause, Karsten
    Abstract: This paper draws attention to three challenges for environmental policy that are rather neglected and only rudimentary addressed in the current discourse on the topic of climate protection and environmental protection. Section 2 discusses how "fake news" poses a problem for environmental policy. Section 3 addresses the question of how to deal with the existing "knowing-doing gaps" in some environmental policy contexts. Finally, Section 4 highlights the difficulties of a global and fair environmental policy. These challenges are considered from a politico-economic perspective, more specifically, through the lens of Public Choice Theory/New Political Economy.
    Keywords: Climate Protection, Environmental Protection, Environmental Policy, Public Choice Theory, Political Economy.
    JEL: D72 H23 O44 P16 Q5 Q54
    Date: 2019–09
  12. By: Pugno, Maurizio
    Abstract: Research in the Economics of Happiness has recently paid increasing attention to ‘eudaimonia’, which is a conception of happiness originated in ancient Greek philosophy, and in particular in Aristotle’s philosophy. Since ‘eudaimonia’ is a way of life rather than a circumscribed goal, its understanding requires a dynamic analytical structure. To this end, the paper provides two main contributions. First, in order to facilitate reading by the economists of Aristotle’s work, this is translated in modern economic terms, i.e. eudaimonia is described as an individual activity that transforms inputs into outputs. Second, this description is reformulated, with the help of studies in psychology and anthropology, in a modern ‘economic approach to eudaimonia’, which focuses on human development, i.e. on the development of the skills which are typically human. A number of implications are then discussed: about how some weaknesses of Aristotle’s conception of eudaimonia can be amended (e.g. the objective/subjective reconciliation); about the greater robustness of eudaimonia with respect to hedonism as two alternative pathways to happiness that people can choose; and about the advantages of the policy implications of eudaimonia.
    Keywords: happiness; eudaimonia; Aristotle; well-being; hedonism
    JEL: A12 I31 O15
    Date: 2019–09–30
  13. By: Julian Andres VILLAMIL; Luis Felipe QUINTERO; Gustavo Adolfo HERNANDEZ-DIAZ
    Abstract: En los últimos años ha existido el consenso de que la economía colombiana es muy dependente del sector minero – energético, por lo cual se deben encontrar formas de transformar el aparato productivo. El análisis insumo-producto ayuda a identificar cuales pueden ser los sectores que pueden contribuir a una mayor diversificación de economía, además de la clasificación por clústeres, los cuales no han cambiado tanto en los últimos quince años.
    Keywords: Clústeres, encadenamientos y matrices insumo – producto
    JEL: C38 C67 E01 Y B51
    Date: 2019–09–25
  14. By: Avner Seror (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper presents a general theory of child development that incorporates interactive learning and identity formation in social interactions with caregivers. The model sheds light on many puzzling aspects of child development. Child learning responds nonmonotonically to caregivers' attention and approval in social interactions. I highlight key parental characteristics associated with child learning, and identity formation. The theory also explains why media devices widen human inequality. Lessons are finally drawn for the design of policies that alleviate human inequality.
    Keywords: media,human development,human inequality,social interactions,identity,parenting,learning,intergenerational transmission
    Date: 2019–09
  15. By: Johnston, Hannah.; Land-Kazlauskas, Christopher.
    Keywords: freedom of association, trade union rights, precarious employment
    Date: 2018
  16. By: Julian Andres VILLAMIL; Luis Felipe QUINTERO; Gustavo Adolfo HERNANDEZ-DIAZ
    Abstract: En este trabajo se utiliza la metodología insumo – producto para analizar la creación del empleo desde la perspectiva sectorial, al utilizar los multiplicadores del empleo los multiplicadores del empleo y mostrar las relaciones del empleo entre e intra – clúster de la economía. Se encuentra que los clústeres más cercanos a la demanda final son los de agro – industria e industria y construcción. Si se realiza algún estímulo sobre la demanda de los productos finales de estos clústeres se va a generar una mayor absorción del trabajo, no solo dentro de cada clúster, sino en el sistema productivo en general. El efecto se refuerza si existen conexiones fuertes con clústeres proveedores netos de insumos, tales como el de servicios o el de industria minero – energética.
    Keywords: Clústeres, empleo y matrices insumo – producto.
    JEL: C38 C67 E01 Y B51
    Date: 2019–09–25
  17. By: John M. Luiz; James Rycroft
    Abstract: We explore whether there is evidence of property rights amongst the homeless, and if so, how these rights are governed. We show that although the homeless are able to derive some value from assets, and can exclude other members of their community, these rights are precarious and dependent upon state agents not seizing the “property†and overriding the community’s rules of the game. The transferring of assets are especially curtailed. We demonstrate the intersectionality of claims with respect to the same physical property from the varying perspectives of the claimants involved and how this differs depending on the property. Homeless people rely on a community logic to develop rules of the game which results in the appearance of a market logic. In the absence of formal institutions effectively operating in their spaces, they have constituted social norms which provide some semblance of property rights which are respected within the group.
    Keywords: Property rights, formal/informal institutions, transaction costs, homelessness, institutional logics, qualitative research
    JEL: K00 K11 Z13
    Date: 2018–06
  18. By: Ahmad, Naimzada; Marina, Pireddu
    Abstract: Starting from a Muthian cobweb model, we extend the profit-based evolutionary setting in Hommes and Wagener (2010) populated by pessimistic, optimistic and unbiased fundamentalists, by assuming that agents face heterogeneous information costs, inversely proportional to the entity of their bias. Hommes and Wagener (2010) proved that, when the unique steady state of their model is globally eductively stable in the sense of Guesnerie (2002), the equilibrium under evolutionary learning may be just locally, but not globally, stable, due to the presence of a period-two cycle. Thanks to the introduction of information costs, we find that the equilibrium, when globally eductively stable, may be not even locally stable under evolutionary learning. More precisely, we analyze our setting by measuring the influence of agents’ heterogeneity through the parameter describing the degree of optimism and pessimism. According to the considered parameter configuration, the unique steady state, which coincides with the fundamental, may be (locally or globally) stable for every value of the bias, like in Hommes and Wagener (2010), or it may be stable just for suitably small and for suitably large values of the bias. Hence, increasing beliefs’ heterogeneity can be stabilizing when information costs are taken into account. We give an interpretation of such counterintuitive result in terms of profits, on which the share updating rule is based.
    Keywords: Muthian cobweb model; heterogeneous agents; evolutionary learning; information costs; double stability threshold.
    JEL: B52 C62 D84 E32
    Date: 2019–05

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