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on Heterodox Microeconomics |
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Issue of 2019‒10‒14
eighteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | André Lapidus (PHARE - Philosophie, Histoire et Analyse des Représentations Economiques - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne) |
| Abstract: | This paper continues an ongoing reflection on the ways we do the history of economic thought, marked some decades ago by Blaug (1990)'s canonical typology of the four "genres" in the historiography of economics. Drawing the consequences of a seminal paper by Rorty (1984) on the methodology of the history of philosophy, it offers a non-canonical typology comprising three alternative approaches, distinguished on the basis of the way they conceive of the link between statements, old and contemporary: the extensive, the retrospective, and the intensive approaches. A particularity of the intensive approach is its potential challenge to contemporary knowledge through the possible introduction of statements which do not belong to it. Yet, unlike the extensive and retrospective approaches, the very possibility of an intensive approach seems at odds with its relatively thin academic outcomes. Taking the works of Sraffa (1951; 1960) and Sen (2002) as examples, it is argued that this is a consequence of the intensive approach being heuristic which is destined to remain poised between the extensive and retrospective approaches. But, as a result, among the three available approaches, it is the intensive approach which appears as a privileged route by which the history of economic thought can begin to engage with economic theory. |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02294934&r=all |
| By: | Jones Sam |
| Abstract: | In the widely used class of multidimensional poverty measures introduced by Alkire and Foster (2011), dimension-specific weights combined with a single cut-off parameter play a fundamental role in identifying who is multidimensionally poor.This paper revisits how these parameters are understood, revealing they do not uniquely characterise who is identified as poor and that the weights do not reliably reflect each dimensions’ relative importance. Drawing on insights from Boolean algebra, I demonstrate that the set of ‘minimum deprivation bundles’ constitutes an intuitive and unique characterization of Alkire-Foster identification functions.This provides a formal foundation for various analytical innovations, namely: a novel poverty decomposition based only on the unique properties of each identification function; and metrics of dimensional power, which capture the effective importance or ‘value’ of each dimension across all possible combinations of deprivations.These insights are illustrated using deprivation data from Mozambique and applying various identification functions, including a close replica of the international MPI (multidimensional poverty index). |
| Keywords: | boolean functions,composite indexes,Multidimensional poverty,Multidimensional poverty measurement |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2019-55&r=all |
| By: | Flavien Moreau (UCLA); Ludovic Panon (Sciences Po) |
| Abstract: | This paper develops a quantitative framework with heterogenous firms and endogenous markups to assess the macroeconomic implications of sectoral distortions to market structure, namely the existence of cartels. The direct negative welfare impact of cartels is compounded by increases in non-colluders’ prices (umbrella pricing). We then build a dataset on firm- and sector-level collusive cases constructed from the textual analysis of two decades of antitrust decisions taken by the French Competition Authority that we combine with exhaustive administrative firm microdata to test the predictions of our model. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:579&r=all |
| By: | Michael Reiter (Institute for Advanced Studies) |
| Abstract: | This paper presents methods for heterogeneous agent models where agents solve non-convex optimization problems. It shows how to apply the linearization approach of Reiter (2009) to non-convex models, and develops a theory of state and value function reduction to handle models with very large state spaces. It shows the potential problems of the linearization approach and ways to diagnose them. To overcome these problems, global nonlinear solution algorithms are presented, based on temporary equilibrium concepts. The methods are applied to models with heterogeneous households and indivisible labor, as well as to a model of heterogeneous firms with lumpy investment. \end{abstract} |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1048&r=all |
| By: | de Haas, Ralph; Popov, Alexander |
| Abstract: | We study the relation between financial structure and carbon emissions in a large panel of countries and industries. For given levels of economic and financial development, emissions per capita are lower in economies that are relatively more equity-funded. Industry-level analysis reveals two channels. First, deeper stock markets reallocate investment towards cleaner industries and, second, they allow carbon-intensive industries to produce green patents and reduce their energy intensity. Only one-tenth of these industry-level reductions in domestic emissions is offset by increased carbon embedded in imports. A firm-level analysis of an exogenous shock to the cost of equity in Belgium confirms our findings. |
| Keywords: | Carbon Emissions; Financial Development; Financial structure; Innovation |
| JEL: | G10 O4 Q5 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14012&r=all |
| By: | Miguel Salazar |
| Abstract: | El presente artículo tiene por objetivo identificar una problemática en los actuales sistemas de producción, transformación, comercialización y distribución de alimentos, los cuales, actualmente; no responden necesariamente a los principios de seguridad, soberanía alimentaria y al derecho a la alimentación en su conjunto. Por consiguiente, se presenta un enfoque alternativo a los sistemas lineales de producción: la economía circular. Ésta última se describe como una propuesta en sintonía con los acuerdos internacionales y la agenda para los Objetivos de Desarrollo Sostenible 2030, suscritos por Chile. Finalmente, se presenta la situación de las Ferias Libres en Chile, como estudio de caso para la implementación de un sistema de producción sostenible. |
| Keywords: | alimentación; soberanía Alimentaria; economía circular; sostenibilidad; ferias libres |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/7qpb808g2a97s9vq4vkcehobjp&r=all |
| By: | Bianca Trovó (UNICOG-U992 - Neuroimagerie cognitive - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay - INSERM - Institut National de la Santé et de la Recherche Médicale - UP11 - Université Paris-Sud - Paris 11, UFR 927 - Sorbonne Université - UFR Sciences de la vie - SU - Sorbonne Université) |
| Abstract: | Scale free dynamics and scale invariance are universal characteristics of complex systems in nature. 1/f or long-range temporal correlations or pink noise is also a self-generated/correlated brain noise that coexists with periodic brain oscillations in a non predominant temporal fashion. For a long time this kind of noise has been ignored in experimental manipulations or analyses because thought to be the expression of instrumental noise. Nowadays, instead, recent evidence speaks in favour of the functional significance of the 1/f and its spatiotemporal organisation at different levels. However, further investigation is needed in order to unveil the relationship between each specific 1/f noise (across individuals, behavioural tasks, across different natural phenomena…). Outline of the lecture: 1. Power-law distributions in nature 2. Types of noise 3. 1/f as a signature of complexity 4. Debate between brain oscillations and noise 5. New perspectives on 1/f: functional significance and temporal organisation |
| Keywords: | Power law,Power law decay,Power law dependence,Scale free distributions,1/f noise,1/f noise characteristics,1/f noise measurement,1/f noise spectrum,1/f processes,Complexity,Brain oscillations,Time series characterization,Metastability,Hurst exponent,Detrended fluctuation analysis,Coarse-graining spectral analysis,Autocorrelation function,Spectral density function,EEG Signal Analysis,Intracranial electroencephalography,Long term memory,Fractal Processes,Self-organised criticality,Temporal organization,Variability analysis,Motor Performance,Resting state |
| Date: | 2018–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:cea-02300814&r=all |
| By: | Davies Rob; van Seventer Dirk |
| Abstract: | Examining the economy-wide consequences of South Africa following a similar trajectory of labour market polarization to the rest of the world requires an appropriate database for an economy-wide policy analysis framework.This paper describes how a 2015 South Africa social accounting matrix (SAM) was updated for 2016 and expanded to include labour market disaggregation by occupation and some capital market disaggregation. This extended SAM will provide a basis for the construction of an economy-wide modelling framework to examine the implications of likely future growth and structural and technological changes for skills demand in South Africa. 2016 Social Accounting Matrix for South Africa |
| Keywords: | Labour market,national accounts,Social Accounting Matrix,Supply table,Use table |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2019-56&r=all |
| By: | Luká? Augustin Máslo (University of Economics, Prague) |
| Abstract: | In this paper, the author follows a discussion of two post-Keynesian economists, Paul Davidson and Rod O?Donnell, about the nature of uncertainty in economics. The author focuses on two points of this discussion: a controversy about possibility/impossibility of such a proof and a criticism of Davidson?s allegedly split definition of ergodicity. In a controversy about possibility/impossibility, the author puts O?Donnell to criticism for the latter?s reduction of proving to providing empirical evidence and, in effect, omission of extra-empirical cognition. The author accepts O?Donnell?s argument of Davidson?s split definition and infers his own conclusion: the reason why Davidson keeps ignoring the incompatibility of both definitions of ergodicity is that he does not distinguish cumulative and theoretical probability. The author contends that Davidson?s claim about predetermination of long-run outcomes in ergodic processes draws its persuasiveness from the ambiguity of the concept ?long run?: according to the author, Davidson perceives ?long-run? in the meaning of ?finitely long? while O?Donnell perceives ?long-run? in the meaning of ?limit infinity?. |
| Keywords: | ergodicity, uncertainty, probability |
| JEL: | B41 D80 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:9512182&r=all |
| By: | Susara Johanna Ferreira (North West University) |
| Abstract: | Financial well-being can be perceived as a function of an individual?s physical and emotional factors pertaining to their financial position and the level of satisfaction they feel in terms of their financial status. This research study aimed to place investors in a certain category of financial well-being based on their race. Data for this article was purposefully collected using a quantitative questionnaire which was electronically distributed to 600 investors within the South African market. A self-report measure for financial well-being was used where participants had to rate their own level of financial well-being. This research found that there are statistically significant differences in individuals? level of financial well-being amongst different groups of race. More specifically, results suggest that White individuals have a higher perceived level of financial well-being compared to their Black, Indian, and Coloured counterparts. However, no significant difference was found between the racial groups as low financial well-being was dominant in all four groups. Higher levels of perceived financial well-being will lead to more optimistic investment decisions which will be constructive to portfolio asset managers in creating investor profiles. |
| Keywords: | financial well-being, financial wellness, economic well-being, race |
| JEL: | J15 D14 D92 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:9511450&r=all |
| By: | Edith Aguirre |
| Abstract: | In this paper I analyse the effect of domestic violence on women’s earnings, when the levels and the frequency of abuse are considered. An index for domestic violence is designed to capture the variation observed, challenging the traditional use of a dichotomous variable within this context. In addition, to conduct a causal analysis, an instrument indicating the husband’s random irritability is created. Findings show that women exposed to higher levels of domestic violence, economic, emotional or physical, struggle with lower salaries. Physical violence is the type of abuse with the largest negative incidence on earnings, followed by economic and emotional violence, respectively. |
| Keywords: | Earnings, female labor-force participation, marriage, omitted variable bias, violence against women. |
| JEL: | B54 J12 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:19/16&r=all |
| By: | Bach, Maria; Morgan, Mary S. |
| Abstract: | This paper examines how the United Nations Development Program (UNDP) redefined their idea of development over the two decades from 1990, no longer presenting it as only a matter of economic progress but instead focusing more on the problem of poverty and its reduction. This change of definition was closely associated with changes in the preferred measurement of development, from average income (based on national income accounting) to the proportion of the population holding certain characteristics of what it meant to live in poverty (instantiated in various index number formulations). Measurements of development thus became direct measures of socio-economic difference, not just between nations, but also within nations. This change was designed to create numbers that would be effective in capturing and communicating those differences in ways usable for both policy and public purposes. Those numbers thus provided a resource for fighting for poverty reduction – though the UNDP had few powers to hold governments to account. |
| JEL: | N0 |
| Date: | 2019–08–27 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:101769&r=all |
| By: | Boyan Durankev |
| Abstract: | The link between taxation and justice is a classic debate issue, while also being very relevant at a time of changing environmental factors and conditions of the social and economic system. Technologically speaking, there are three types of taxes: progressive, proportional and regressive. Although justice, like freedom, is an element and manifestation of the imagined reality in citizens minds, the state must comply with it. In particular, the tax system has to adapt to the mass imagined reality in order for it to appear fairer and more acceptable. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1910.04155&r=all |
| By: | Alexis Bogroff (Université Paris1 Panthéon-Sorbonne); Dominique Guégan (Université Paris1 Panthéon-Sorbonne, Centre d'Economie de la Sorbonne, LabEx ReFi and Ca' Foscari University of Venezia) |
| Abstract: | An extensive list of risks relative to big data frameworks and their use through models of artificial intelligence is provided along with measurements and implementable solutions. Bias, interpretability and ethics are studied in depth, with several interpretations from the point of view of developers, companies and regulators. Reflexions suggest that fragmented frameworks increase the risks of models misspecification, opacity and bias in the result; Domain experts and statisticians need to be involved in the whole process as the business objective must drive each decision from the data extraction step to the final activatable prediction. We propose an holistic and original approach to take into account the risks encountered all along the implementation of systems using artificial intelligence from the choice of the data and the selection of the algorithm, to the decision making |
| Keywords: | Artificial Intelligence; Bias; Big Data; Ethics; Governance; Interpretability; Regulation; Risk |
| JEL: | C4 C5 C6 C8 D8 G28 G38 K2 |
| Date: | 2019–06 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:19012&r=all |
| By: | Enrico D'Elia; Stefania Gabriele |
| Abstract: | Functional income distribution can be an important driver of inequality. When the market remuneration of labour and capital is very uneven across individuals, as they have been in recent decades, the personal distribution of income tends to polarise, jeopardising social cohesion. This explains a renewed interest in functional distribution. Nevertheless, the role of self-employed income has been often misunderstood in estimating factor income shares. National accounts provide estimates of the compensation of employees and the operating surplus, but do not refer to self-employed workers as a specific productive factor, implicitly including their income in the ‘mixed income’ aggregate and in some other minor items. Most analysts estimate the income of self-employed workers by attributing to them the average unit compensation of the employees, although in fact this is not necessarily consistent with the GDP estimates. Other estimates take a fixed share of the ‘mixed income’, usually the same for every country. When national accounts are very detailed, as in the case of Italy, under some assumptions it is possible to accurately estimate self-employment income from sectors’ non-financial accounts. In this paper we analyse four estimation approaches for self-employed incomes, since only the total amount of ‘mixed income’ received by households is available for most countries. We analyse the data of the OECD countries focusing mainly on eight large economies: the US, Japan, the UK, Germany, France, the Netherlands, Spain and Italy. The results are somehow unexpected. First of all, evaluating the income of the self-employed properly, the overall labour share is declining much faster than reported by the official data in some countries, and more countries showed a decrease in the 2000s. Indeed, the real unit compensation of the self-employed declined significantly in most of the eight countries (and in some of the others) after the mid or the end of the nineties, since self-employment has been used extensively to reduce the overall labour cost. Unit labour cost (ULC) also increased much slower (or even declined more) after 2000 in most countries, shedding new light on the pattern of international competitiveness and the drivers of inflation. The share of operative surplus of non-financial and financial corporations, properly recalculated, has exhibited different dynamics, whereas the component related to imputed rentals of owner occupied houses played an unexpectedly important role. Finally, the mark-up on variable production costs has been higher than expected and its evolution has been faster in most countries than what reported before, showing a lower sensitivity to the business cycle. |
| Keywords: | Functional distribution, labour income, self-employed workers, ULC, mark-up |
| JEL: | E25 E24 O47 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:itt:wpaper:2019-1&r=all |
| By: | Marlyse Pouchol (URCA - Université de Reims Champagne-Ardenne, CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - ULCO - Université du Littoral Côte d'Opale - CNRS - Centre National de la Recherche Scientifique) |
| Keywords: | interwar period,clearing agreements,John Maynard Keynes,Clearing Union,foreign exchange controls,compensation bancaire,période de l’entre-deux-guerres,contrôle des changes,accords de clearing |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02304876&r=all |
| By: | Jose de Sousa (University Paris Sud, RITM and CREST); Eve Sihra (The Hebrew University of Jerusalem); Thierry Mayer (Sciences Po) |
| Abstract: | This paper explores the evolution of consumption patterns across French departements in a context of deep market integration. Using a structural demand system and household survey data on food consumption in France from 1974 to 2005, we find that (1) France is characterized by strong localized tastes in food consumption, which (2) converge over time, and (3) not only due to changes in price and income. In short, France becomes ``flatter'', culturally more homogenized. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1178&r=all |
| By: | Woodruff, David M. |
| Abstract: | Hockett’s “franchise view” argues, convincingly, that the capacity of banks or quasi-bank financial entities to create money rests on the regulations and guarantees of the state maintaining the legal and regulatory system under which they operate. Block suggests that this insight could be used as a beachhead from which to establish the legitimacy of locally embedded, non-profit lenders whose investments would be dedicated to public purposes. However, given the contemporary ideological, political, and economic context, this proposal on its own could prove counterproductive. To maximize the positive impact of the insight into the public character of money creation, the proposal for public-purpose banking should be fused to democratization of central banking. This could plausibly have ideological effects that would make the public character of private economic power easier to perceive, and to reshape. Subordination of central banks to elected officials would also bring an end to the dynamic whereby monetary easing provides political cover for damaging fiscal austerity, leading to more democratic decision-making about the appropriate combination of fiscal and monetary policy. |
| Keywords: | Central bank independence; everyday libertarianism; coordination of fiscal and monetary policy |
| JEL: | F3 G3 |
| Date: | 2019–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:101223&r=all |