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on Heterodox Microeconomics |
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Issue of 2020‒01‒27
37 papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Jo, Tae-Hee |
| Abstract: | Critics have repeatedly claimed that heterodox economics has failed in that it has limited acceptance by the mainstream of the economics profession and little influence on other approaches and policies. They blame heterodox economists for their own failure. I subject this claim to critical examination from the perspective of Veblen’s evolutionary methodology. Veblen’s theory of the business enterprise will be used as an example, which exemplifies the case that a ‘blasphemous’ theory is ignored and marginalized even though it provides rich insights into economy and society. Heterodox economics has shown a similar path. It is also argued that social science does not follow the biological principle of natural selection. What survives does not necessarily mean the fittest in the social realm. The history of science is replete with paradoxical incidents that an incoherent, irrelevant, or even wrong theory becomes dominant and widely accepted because it is one that serves the vested interests in academia and society. Economics is no exception. |
| Keywords: | Thorstein Veblen, Evolution, Business Enterprise, Heterodox Economics |
| JEL: | B15 B25 B50 D21 |
| Date: | 2019–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97720&r=all |
| By: | Christina CLAMP (Southern New Hampshire University, Manchester NH (U.S.A.)); Eklou R. AMENDAH (Southern New Hampshire University, Manchester NH (U.S.A.)); Carol COREN (Cornerstone Ventures LLC, Southampton, PA (U.S.A.)) |
| Abstract: | Shared services cooperatives are member associations formed to meet a variety of institutional needs for economies and efficiencies of scale through collaboration in areas such as purchasing, marketing, processing and distribution (Crooks, Spatz & Warman, 1997). Our study examines cases in business, finance, health, and public sectors of the US economy. This research develops a theoretical understanding of how this form compares to related types of cooperatives and other forms of collaboration. It also empirically documents how shared services are used. The research looks at the experience of these shared-services cooperatives: what are the benefits to members; how they are structured and their impact on the local economy. Key stakeholder interviews were conducted with senior staff of cooperatives in financial services, watershed authorities and watershed management, as well as in the health sector, the business sector, and public libraries. The study develops a comparative case analysis utilizing a social ecology analytic framework. The benefits of this form of shared services cooperative are: access to influence networks; enterprise integration and interoperability; sharing of training resources; greater financial resources and professionalism (risk and financial safety); growth opportunities; and increased retention. Key to success is the development of trust and services that are well and affordably administered. |
| Keywords: | Shared Services, reliability, cooperative empowerment, administrative flexibility, networking, sharing economy, economic sustainability |
| JEL: | P13 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:crc:wpaper:1923&r=all |
| By: | Pérez, Gabriel |
| Abstract: | El presente trabajo explora los principales temas relacionados con la movilidad y el género, dando continuidad a una serie de trabajos desarrollados por la CEPAL en esta temática en la última década, con el objetivo de favorecer la incorporación de la perspectiva de género en las políticas públicas de movilidad. Especial cuidado se ha tenido de no restringir el análisis únicamente a la movilidad urbana, haciendo referencia cuando corresponde a las situaciones especiales que enfrentan las mujeres que viven en la periferia de las ciudades o en zonas rurales. |
| Keywords: | DESPLAZAMIENTOS RESIDENCIA-TRABAJO, ZONAS URBANAS, GENERO, INCORPORACION DE LA PERSPECTIVA DE GENERO, MUJERES, TRANSPORTE URBANO, INFRAESTRUCTURA DEL TRANSPORTE, IGUALDAD DE GENERO, COMMUTING, URBAN AREAS, GENDER, GENDER MAINSTREAMING, WOMEN, URBAN TRANSPORT, TRANSPORT INFRASTRUCTURE, GENDER EQUALITY |
| Date: | 2019–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col025:45042&r=all |
| By: | Journal, IJEMSS; Kusuma, Arnold Arswenda |
| Abstract: | The issue of gender inequality in Indonesia is the result of a patriarchal culture that has existed for a long time. The gender division of men and women in the field of social and economic development is clearly visible, as women do not fully gain access to some resource sectors, such as education and employment. Bali as one of the provinces in Indonesia that still adheres to patriarchal culture. But the culture is in fact contrary to the Hindu belief that they believe to be the majority religion, where women have a very respectable position because it is considered as the incarnation of one of the revered Goddesses. This then underlies the movement of one of the TSO (Third Sector Organization) in Bali, Bali Sruti, which then consistently campaigns for women empowerment. In this paper the authors found that the role of Bali Sruti in their efforts to empower women in Bali includes several things, such as the socialization of women's participation in politics, the socialization of pluralism, and interactive discussions through interactive radio in relation to gender equality issues aimed at increasing the participation of Balinese women in sustainable social and economic development. |
| Date: | 2018–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:f3nr2&r=all |
| By: | Giovanni Dosi (Laboratory of Economics and Management); Mauro Napoletano (Observatoire français des conjonctures économiques); Andrea Roventini (Observatoire français des conjonctures économiques); Tania Treibich (Observatoire français des conjonctures économiques) |
| Abstract: | In this work we study the granular origins of business cycles and their possible underlying drivers. As shown by Gabaix (Econometrica 79:733–772, 2011), the skewed nature of firm size distributions implies that idiosyncratic (and independent) firm-level shocks may account for a significant portion of aggregate volatility. Yet, we question the original view grounded on “supply granularity”, as proxied by productivity growth shocks – in line with the Real Business Cycle framework–, and we provide empirical evidence of a “demand granularity”, based on investment growth shocks instead. The role of demand in explaining aggregate fluctuations is further corroborated by means of a macroeconomic Agent-Based Model of the “Schumpeter meeting Keynes” family Dosi et al. (J Econ Dyn Control 52:166–189, 2015). Indeed, the investigation of the possible microfoundation of RBC has led us to the identification of a sort of microfounded Keynesian multiplier. |
| Keywords: | Business cycles; Granular residual; Granularity hypothesis; Agent-based models; Firm dynamics ; Productivity growth; Investment growth |
| JEL: | C63 E12 E22 E32 O4 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1p3k1810c89k3b4gg6n2nuc0m4&r=all |
| By: | Melo, Ana Teixeira; Caves, Leo Simon Dominic |
| Abstract: | Humanity’s biggest challenges call for organised collective action, informed by the most complex forms of thinking. Different forms of knowledge and practices of knowing operate at different levels of organisation within society. Scientific knowledge is one form of knowing, but the development of science under a culture of disciplinisation and increasing specialisation has led to its fragmentation and blinded it to the possibilities offered by the integration of knowledge. Interdisciplinarity and transdisciplinarity are privileged routes for rich knowledge construction and integration. There is a pressing need for efforts directed toward the intentional construction of a culture where interdisciplinary and transdisciplinary practices may flourish. However, we believe significant change will only occur through the orchestration of a set of activities that attend to the complexity of knowledge construction and integration as emergent outcomes of a complex network of processes and relations that constitute an evolving inter and transdisciplinary ecosystem. In this paper we present a thought experiment in the form of a proposal for the organisation of an Alliance for Knowledge Integration and of Inter/Transdisciplinary Hubs aimed at coordinating collaborative actions and contributions from a diversity of agents and systems from different levels of organisation of society towards richer and more integrated practices of knowing. |
| Date: | 2018–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:7v49b&r=all |
| By: | David Rushing Dewhurst; Yi Li; Alexander Bogdan; Jasmine Geng |
| Abstract: | Securities markets are quintessential complex adaptive systems in which heterogeneous agents compete in an attempt to maximize returns. Species of trading agents are also subject to evolutionary pressure as entire classes of strategies become obsolete and new classes emerge. Using an agent-based model of interacting heterogeneous agents as a flexible environment that can endogenously model many diverse market conditions, we subject deep neural networks to evolutionary pressure to create dominant trading agents. After analyzing the performance of these agents and noting the emergence of anomalous superdiffusion through the evolutionary process, we construct a method to turn high-fitness agents into trading algorithms. We backtest these trading algorithms on real high-frequency foreign exchange data, demonstrating that elite trading algorithms are consistently profitable in a variety of market conditions---even though these algorithms had never before been exposed to real financial data. These results provide evidence to suggest that developing \textit{ab initio} trading strategies by repeated simulation and evolution in a mechanistic market model may be a practical alternative to explicitly training models with past observed market data. |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1912.09524&r=all |
| By: | Fix, Blair (York University) |
| Abstract: | Based on worldly experience, most people would agree that firms are hierarchically organized, and that pay tends to increase as one moves up the hierarchy. But how this hierarchical structure affects income distribution has not been widely studied. To remedy this situation, this paper presents a new model of income distribution that explores the effects of social hierarchy. This 'hierarchy model' takes the limited available evidence on the structure of firm hierarchies, and generalizes it to create a large-scale simulation of the hierarchical structure of the United States economy. Using this model, I conduct the first quantitative investigation of hierarchy's effect on income distribution. I find that hierarchy plays a dominant role in shaping the tail of US income distribution. The model suggests that hierarchy is responsible for generating the power-law scaling of top incomes. Moreover, I find that hierarchy can be used to unify the study of personal and functional income distribution, as well as to understand historical trends in income inequality. |
| Date: | 2018–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:s3y2m&r=all |
| By: | Fix, Blair (York University) |
| Abstract: | This paper offers a new approach to the study of capitalist income. Building on the 'capital as power' framework, I propose that capitalists earn their income not from any productive asset, but from the legal right to command a corporate hierarchy. In short, I hypothesize that capitalist income stems from hierarchical power. Based on this thinking, I hypothesize that the capitalist fraction of an individual's income is a gradient function of hierarchical power (which I define as the number of subordinates under one's control). Using data from US CEOs, I find evidence that this is true. Furthermore, a hierarchical model of the United States that generalizes this data accurately reproduces many aspects of the US distribution of capitalist income, including the relation between income size and capitalist income fraction. This evidence suggests that the ownership structure of US society is closely linked to the hierarchical structure of firms. This has important implications for the study of income distribution. |
| Date: | 2018–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:u8epv&r=all |
| By: | Fix, Blair (York University) |
| Abstract: | Human capital theory is the dominant approach for understanding personal income distribution. According to this theory, individual income is the result of ‘human capital’. The idea is that human capital makes people more productive, which leads to higher income. But is this really the case? This paper takes a critical look at human capital theory and its explanation of personal income distribution. I find that human capital theory’s claims are dubious at best. In most cases, the theory is either not supported by evidence, is so vague that it is untestable, or is based on circular reasoning. In short, human capital theory is a barrier to the scientific study of income distribution. |
| Date: | 2018–08–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:ax6k7&r=all |
| By: | César Girlado |
| Abstract: | El debilitamiento de la relación salarial se ha invocado para afirmar que el trabajo ha perdido centralidad en la construcción de los social, y argumentar que se deben utilizar otras categorías ligadas a las diferencias culturales, étnicas, sexuales. También que el capitalismo ha expulsado poblaciones y las convierte en residuos sociales. Aquí se niegan tales afirmaciones y se señala que el trabajo sigue el centro de la construcción de lo social, y que la contradicción entre el capital trabajo, en el mundo contemporáneo, se expresa en terrenos adicionales, como por ejemplo, la disputa por la apropiación del excedente económico a través de las finanzas públicas. Se afirma que los sectores populares si son explotados por el capital, y que la explotación se expresa a través del intercambio desigual en el mercado donde su trabajo es subvalorado, y en estar forzados a obtener ingresos monetarios en el mercado para pagar las rentas que el capitalismo demanda para poder permitir el acceso a los servicios básicos. *** The weakening of the wage relationship has been invoked to affirm that work has lost centrality in the construction of social relations, and argue that other categories such as cultural, ethnic, sexual differences should be used. Also, that capitalism has expelled populations that convert them into social waste. These statements are denied here and it is pointed out that work remains at the center of the construction of the social, and that the contradiction between working capital, in the contemporary world, is expressed in additional areas, such as the dispute over the appropriation of the economic surplus through public finances. It is affirmed that the popular sectors are exploited by capital, and that exploitation is expressed through unequal exchange in the market where their work is undervalued, and in being forced to obtain monetary income in the market to pay rents that capitalism demands to allow access to basic services. |
| Keywords: | economía popular, relación salarial, fin del trabajo, trabajo, explotación, capitalismo. |
| JEL: | A14 E26 J08 J81 |
| Date: | 2020–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:col:000178:017781&r=all |
| By: | Lambert, Thomas; Velardo, Tristan |
| Abstract: | Joseph Schumpeter’s writings on entrepreneurship and innovation have had a profound impact on economic theory and economic thought. Schumpeter initially saw the small entrepreneur as the source of innovation and economic growth within an economic system but later saw large corporations as the source of much innovation. Because large corporations, and in modern times many governments and universities as well, play such a large role in funding research and development and new innovations, much of the bank financing of innovation is done by smaller banks for small entrepreneurs and their ideas. Venture capitalists and self-financing are the other two major forms of small entrepreneur/small business financing. Meanwhile, the financial markets (stocks and bond markets) only indirectly play a role in funding the innovation of large corporations via changes in these firms’ stock prices. Changes in stock prices reflect an estimate of the large firms’ research and development efforts and their prospects for profitable, future innovation. Much corporate research and development is financed internally within the organization as an expense of doing business. Meanwhile, government and university funding through tax dollars and non-profit sources indirectly subsidize corporate innovation because governmental entities and universities take on risks that the private sector will often not tolerate. Yet, large corporations are often the beneficiaries of such governmental and university financing of research and development efforts. In today’s times, Schumpeter would be impressed with the success of large firms regarding innovation but probably would be disappointed about the marginalization of the small entrepreneurial firm and the banking system and their diminished roles in innovation. This paper summarizes Schumpeter’s views on how the banking system and financial markets could play a role in innovation and explains how a modern day monopoly capital system (Baran and Sweezy 1966) and its financial system have transformed entrepreneurship and innovation away from small business and innovation by the small entrepreneur. Baran, Paul A, and Paul M Sweezy. 1966. Monopoly Capital: An Essay on the American Economic and Social Order. New York: Monthly Review Press. |
| Keywords: | banking, innovation, small business, big business |
| JEL: | B26 B31 B51 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97742&r=all |
| By: | Dickens, Rob |
| Abstract: | After first explaining the basis for such modelling, namely, money in commerce appearing to mirror free energy in coupled chemical reactions, with a striking correspondence between profit and reduction in free energy, a model of two `coupled Deliveries' is constructed, noting the need also to model the market, and the somewhat literal example of a taxi journey up a hill is used to help make sense of the approach. The modelling of the market is then explained, where changes in the concentration of money over buyers and sellers is assumed to behave like changes in the degree to which energy is spread out over the microstates of a system. An expression for the profit due to the market is then derived, and a possible method for verifying this proposed. Further evidence that supports the model is then presented, followed by a discussion of the implications of the model's being found to be valid. |
| Keywords: | modelling; commerce; coupled chemical reactions; thermodynamics; free energy; theory of value; intelligence; politics |
| JEL: | B59 C02 D46 |
| Date: | 2020–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:98087&r=all |
| By: | Nicolai Suppa |
| Abstract: | Labour is of utmost importance for human wellbeing. Yet a comprehensive framework that can reflect the empirical diversity of labour activities along with each activities’ manifold effects on human wellbeing is still lacking. An additional challenge for any such framework is to adequately handle fundamental moral ambiguities, which are inherent to many forms of work. This paper argues that a conceptualisation of labour within the capability approach can meet these requirements. Specifically, I argue that labour can be conceived as a characteristic-providing activity, where obtained characteristics are then transformed into functioning achievements, while accounting for both individual and societal heterogeneity. Additionally, paying adequate attention to unfreedoms experienced by agents turns out to be vital for a comprehensive account. Finally, the paper discusses policy handles, offers suggestions for particular applications, and identifies several other benefits for labour economics. |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:qeh:ophiwp:ophiwp131.pdf&r=all |
| By: | Giovanni Dosi (Laboratory of Economics and Management); Marcelo C. Pereira (Universidade Estadual de Campinas); Andrea Roventini (Observatoire français des conjonctures économiques); Maria Enrica Virgillito (Scuola Superiore Sant'Anna) |
| Abstract: | In this work we develop an agent-based model where hysteresis in major macroeconomic variables (e.g., gross domestic product, productivity, unemployment) emerges out of the decentralized interactions of heterogeneous firms and workers. Building upon the “Schumpeter meeting Keynes” family of models (cf. in particular Dosi et al. (2016b, 2017c)), we specify an endogenous process of accumulation of workers’ skills and a state-dependent process of firms entry. Indeed, hysteresis is ubiquitous. However, this is not due to market imperfections, but rather to the very functioning of decentralized economies characterized by coordination externalities and dynamic increasing returns. So, contrary to the insider–outsider hypothesis (Blanchard and Summers, 1986), the model does not support the findings that rigid industrial relations may foster hysteretic behavior in aggregate unemployment. On the contrary, this contribution provides evidence that during severe downturns, and thus declining aggregate demand, phenomena like decreasing investment and innovation rates, skills deterioration, and declining entry dynamics are better candidates to explain long-run unemployment spells and reduced output growth. In that, more rigid labor markets may well dampen hysteretic dynamics by sustaining aggregate demand, thus making the economy more resilient. |
| Keywords: | Computational techniques; Employment; Institutions |
| JEL: | E24 E02 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/hiaqa97n684boj041a440irqd&r=all |
| By: | Kolev, Stefan |
| Abstract: | Vincent Ostrom's legacy is revisited in this paper along three dimensions: Ostrom's contributions as a historian of politico-economic thought, as a complexity theorist, and as an epistemologist. All three dimensions are captured from a perspective which has seldom been studied systematically before: The paper reconstructs Ostrom as a reader and interpreter of German politico-economic thought, especially of Max Weber's theory of bureaucracy and of Walter Eucken's theory of social and epistemic orders. The systems of these two German social scientists embody for Ostrom the two types of social order central to his own typology. The paper incorporates archival sources from the Elinor and Vincent Ostrom Papers, including unpublished papers and correspondence with German social scientists he met during the Ostroms' 1981/1982 stay at Bielefeld University's Center for Interdisciplinary Research (ZiF). Overall, this narrative focuses on what Ostrom called in his reception of the Freiburg School "Eucken's challenge": A set of inquiries about the relevance of political economy for the study of polycentric orders. |
| Keywords: | Bloomington School,Freiburg School,political theory,history of economics,economic sociology,polycentricity,epistemology |
| JEL: | A12 B25 B41 D73 H11 H41 Z13 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:aluord:1906&r=all |
| By: | Mukaramah Harun; A. R. Zakariah; M. Azali |
| Abstract: | The use of the social accounting matrix (SAM) in income distribution analysis is a method recommended by economists. However, until now, there have only been a few SAM developed in Malaysia. The last SAM produced for Malaysia was developed in 1984 based upon data from 1970 and has not been updated since this time despite the significance changes in the structure of the Malaysian economy. The paper proposes a new Malaysian SAM framework to analyse public expenditure impact on income distribution in Malaysia. The SAM developed in the present paper is based on more recent data, providing an up-to date and coherent picture of the complexity of the Malaysian economy. The paper describes the structure of the SAM framework with a detailed aggregation and disaggregation of accounts related to public expenditure and income distribution issues. In the SAM utilized in the present study, the detailed framework of the different components of public expenditure in the production sectors and household groups is essential in the analysis of the different effects of the various public expenditure programmes on the incomes of households among different groups. |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2001.03488&r=all |
| By: | Fix, Blair (York University) |
| Abstract: | This paper examines the relation between personal income and hierarchical power. In the context of a firm hierarchy, I define hierarchical power as the number of subordinates under an individual’s control. Using the available case-study evidence, I find that relative income within firms scales strongly with hierarchical power. I also find that hierarchical power affects income more strongly than any other factor for which data is available. I conclude that this is preliminary evidence for a hierarchical-power theory of personal income distribution. |
| Date: | 2018–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:pb475&r=all |
| By: | Julia M. Puaschunder (The New School, Department of Economic, USA); Martin Gelter (Fordham University School of Law and Center on European Union Law) |
| Abstract: | Political economy concerns historical, legal and heterodox economics analysis of complex systems. This article attempts to analyze the current state of the European Union from historical, legal and interdisciplinary economics perspectives. Historically, the ancient Athenian democracy, the Holy Roman Empire and the early formation of the United States serve as examples of early innovative legal constructs of their times that were sui generis and share key features with the current European Union. Regarding legal developments, this paper discusses the bicameral parliamentary structure, electoral processes and populist pressures. The future of the European Union economy is likely to see an AI (r)evolution shaping markets and rising big data revenues. This develop necessitates the creation of a fifth fundamental freedom of data transfer within the European Union, as well as taxation of growth generated by big data. Heterodox economic growth theories will increasingly have to account for this growth. |
| Keywords: | Ancient Athenian democracy, Artificial Intelligence, Bicameral parliament, Big data, Electoral system, European Union, Holy Roman empire, market disruption, political economy, Populist pressures, Taxation, United States |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:smo:ipaper:001jp&r=all |
| By: | John C. Williams |
| Abstract: | Remarks at Working Together; An Interdisciplinary Approach to Organisational Culture, London School of Economics and Political Science, London, U.K. |
| Keywords: | culture; behavior; values; ethics; ethical dilemma; norms; wrongdoing; organizations; blind spots |
| Date: | 2020–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsp:87387&r=all |
| By: | Omarova, Saule T.; Library, Cornell |
| Abstract: | Cornell Journal of Law and Public Policy, Vol. 27, No. 3, p. 797, 2018 In recent years, there has been no shortage of scandals involving fraudulent, predatory, and otherwise ethically unacceptable behavior on the part of large U.S. and non-U.S. financial institutions. Reverse redlining and targeting of racial minorities and other vulnerable segments of the population for subprime mortgages, collusive price-fixing in the world’s most important interbank lending and trading markets, and fraudulent creation of client accounts by bank employees pressured to generate fees for the bank are only some of the recent examples of such blatantly unethical behavior. Much of this behavior was also directly implicated in the generation of unsustainable levels of risk in the financial system, which led to the global financial crisis of 2008-2009. Not surprisingly, industry regulators and scholars of financial markets have been increasingly vocal in their criticisms of the financial industry’s systematic failure to maintain high ethical standards of business conduct. Much of the regulators’ and academics’ attention in this area is focused on individual financial institutions’ apparent inability to foster a strong internal culture of pursuing market objectives through ethical and socially responsible means. Accordingly, the potential remedy for this problem is often seen as a matter of improving the firms’ culture of risk-taking, so that they develop a genuine commitment to seek private gains without creating systemically destabilizing risks or otherwise endangering the well-being of their clients, creditors, and the rest of the society. In effect, this recent “ethics turn” in financial regulation recasts firms’ “risk culture” as a crucial determinant of success, or failure, of the post-crisis search for systemic financial stability. This Article analyzes the principal themes in the newly reinvigorated public debate on the role of ethical norms and cultural factors in financial markets and identifies its key conceptual and normative limitations. It argues that the principal flaw in that debate is that it tends to ignore the critical role of systemic, structural factors in shaping individual firms’ internal cultural norms and attitudes toward legitimate business conduct. Reversing the causality assumption underlying the current academic and policy discourse on institutional culture, the Article discusses how broader reform measures seeking to alter the fundamental structure and dynamics of the financial market--on a macro- rather than micro-level--would profoundly, and far more effectively, alter individuals’ and firms’ normative choices and attitudes. The key to making finance ethically sound, therefore, is to make it structurally sound – and to do so on a systemic level. |
| Date: | 2018–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:osf:lawarx:h6tx7&r=all |
| By: | Liu, Xueying (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | This paper presents an adapted agent-based model for the diffusion of new aircraft model series. Expanding on the classical economic decision framework, where investment decision-making is entirely based on profitability, our holistic modeling approach takes into account profitability, flexibility, as well as the environmental impact of new aircraft model series in the adoption decision process. Technical parameters such as the range and maximum take-off weight of an aircraft model series, various emissions of the aircraft engine, as well as daily operational data, are used to calibrate the model. In validation, our model produces results that are comparable to data on the market diffusion of an existing aircraft model series, the Boeing 737-500. This result shows the applicability of our model, which can also subsequently be used on aircraft with new generations of technologies. Our simulation shows that a price reduction or a decrease in emissions could lead to more adoption and faster diffusion. Furthermore, our modeling approach demonstrates that a holistic framework to include not only profitability but also flexibility and environmental impact can be helpful when modeling the investment decision-making process. |
| Keywords: | Transportation economics; Technological diffusion; Agent-based modeling; Aircraft |
| JEL: | C32 C63 L93 O33 Q53 Q55 R41 |
| Date: | 2019–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2019_016&r=all |
| By: | Sabina Alkire |
| Abstract: | The application of multidimensional poverty measures is proliferating, in part due to the emphasis in Goal 1 of the Sustainable Development Goals (SDGs) on ending poverty in all its forms and dimensions. This paper first traces the emergence of a priority for non-monetary poverty measures in key texts that considÂered then set out the SDGs. It then outlines some vital and feasible research questions on a sub-set of fascinating empirical topics on counting-based multidimensional measures. The topics covered here relate to the SDGs’ focus on measuring the multidimensional poverty of men, women, and children. Building on the existing literature, fascinating questions remain in terms of measurement design (the selection of dimensions, indicators, cutoffs, and weights), the analysis of multidimensional poverty measures, their application to child poverty and their implementation using gendered data. In each of these areas, it is expected that significant breakthroughs are possible. |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:qeh:ophiwp:ophiwp119_3.pdf&r=all |
| By: | OECD |
| Abstract: | The 2030 Agenda aims for a world in which every woman and girl enjoys full gender equality and all legal, social and economic barriers to their empowerment have been removed. Without gender equality and women’s empowerment, the Sustainable Development Goals will not be achieved. Yet investments into gender equality and women’s empowerment are lagging behind investments for most other goals.Implementing commitments to gender equality and women’s empowerment requires a range of tools and efforts, all underpinned by financial investments. While ODA remains an essential source of financing for gender equality and women’s empowerment, the Addis Ababa Action Agenda of the Third International Conference on Financing for Development commits development actors to a new way of thinking about financing for sustainable development, and official flows beyond ODA are becoming an increasingly important feature. This paper sets out an overview of what we know about the financing landscape for gender equality and women’s empowerment, a way forward in order to ensure more and better financing for gender equality, and some draft principles to guide future efforts. |
| Keywords: | financing, Gender equality, gender investing, SDG5, women’s empowerment |
| JEL: | B54 F21 F23 F35 H20 H50 |
| Date: | 2020–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dcdaab:25-en&r=all |
| By: | Fix, Blair (York University) |
| Abstract: | What accounts for the growth of US top income inequality? This paper proposes a hierarchical redistribution hypothesis. The idea is that US firms have systematically redistributed income to the top of the corporate hierarchy. I test this hypothesis using a large-scale hierarchy model of the US private sector. My method is to vary the rate that income scales with hierarchical rank within modeled firms. I find that this model is able to reproduce four intercorrelated US trends: (1) the growth of the top 1% income share; (2) the growth of the CEO pay ratio; (3) the growth of the dividends share of national income; and (4) the ‘fattening’ of the entire income distribution tail. This result supports the hierarchical redistribution hypothesis. It is also consistent with the available empirical evidence on within-firm income redistribution. |
| Date: | 2018–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:suqnk&r=all |
| By: | Luciano Pietronero; Andrea Gabrielli; Andrea Zaccaria |
| Abstract: | A recent paper by Hausmann and collaborators (1) reaches the important conclusion that Complexity-weighted diversification is the essential element to predict country growth. We like this result because Complexity-weighted diversification is precisely the first equation of the Fitness algorithm that we introduced in 2012 (2,3). However, contrary to what is claimed in (1), it is incorrect to say that diversification is contained also in the ECI algorithm (4). We discuss the origin of this misunderstanding and show that the ECI algorithm contains exactly zero diversification. This is actually one of the reasons for the poor performances of ECI which leads to completely unrealistic results, as for instance, the derivation that Qatar or Saudi Arabia are industrially more competitive than China (5,6). Another important element of our new approach is the representation of the economic dynamics of countries as trajectories in the GDPpc-Fitness space (7-10). In some way also this has been rediscovered by Hausmann and collaborators and renamed as "Stream plots", but, given their weaker metrics and methods, they propose it to use it only for a qualitative insight, while ours led to quantitative and successful forecasting. The Fitness approach has paved the way to a robust and testable framework for Economic Complexity resulting in a highly competitive scheme for growth forecasting (7-10). According to a recent report by Bloomberg (9): The new Fitness method, "systematically outperforms standard methods, despite requiring much less data". |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1912.10955&r=all |
| By: | Jean-Luc Gaffard (Observatoire français des conjonctures économiques); Mauro Napoletano (Observatoire français des conjonctures économiques) |
| Abstract: | Nous réexaminons les fondements des modèles théoriques qui sous-tendent le consensus de politique monétaire prévalant avant la Grande récession. Nous soulignons en quoi l’échec de ces modèles à prévenir la crise et à fournir un guide d’action pendant la récession était dû à l’excès de confiance dans la capacité d’autorégulation des marchés et à la négligence du rôle joué par la finance dont ils témoignaient. Nous présentons, ensuite, les bases d’une approche alternative de la politique monétaire qui met l’accent sur les processus de marché, la coordination entre agents hétérogènes et les externalités transmises via les interconnexions financières. De nouvelles classes de modèles, d’une part les modèles à agents multiples et, d’autre part, les modèles de réseaux financiers, s’inscrivent dans cette approche. Nous discutons, enfin, des nouveaux éclairages fournis par ces modèles s’agissant de la conduite de la politique monétaire et de ses interactions avec les politiques budgétaire et macro-prudentielle. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1gb0ntthu59j4pgf4ju708hsdv&r=all |
| By: | Eric Guerci (Université Côte d'Azur (UCA)); Nobuyuki Hanaki (Université Côte d'Azur (UCA)); Mauro Napoletano (Observatoire français des conjonctures économiques) |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/4cb1o2msej8cg9o9ip5ui05vqd&r=all |
| By: | Hélène Périvier (OFCE - Observatoire Français des Conjonctures économiques - Institut d'Études Politiques [IEP] - Paris - Fondation Nationale des Sciences Politiques [FNSP]); Réjane Sénac (CEVIPOF - Centre de recherches politiques de Sciences Po - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The 21st century began with a global crisis that is both economic and political in nature. In this context, an approach based on demonstrating how equality policies and the struggle against various types of discriminations are ‘performing' has emerged. The approach is designed to show that priority must be given to implementation of the principle of equality, with ‘performance' measured in terms of a cost-benefit analysis from an economic and social perspective. We analyze public justification of contemporary policies on gender equality and the fight against discrimination to highlight the consequences of this approach. We look at the role of equality in market regulation in order to shed light on the complex links between economic development and social progress. We show that justifications of equality policies draw on a cost-benefit analysis which legitimates them in the name of the economic and social benefits expected. We conclude that the foundations of equality and social justice are weakened by the importance accorded to the supposed or imagined benefits of equality policies and anti-discrimination. Equality thus submitted to a demonstration of its performance is no longer a principle but rather an option dependent on such demonstration. |
| Keywords: | Performance,Equality policies,Discrimination,Social investment |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02403971&r=all |
| By: | Saleemi, Sundus; Kofol, Chiara |
| Abstract: | In this paper, we test if households where women participate in decisions regarding children’s education and allocation of household education budgets incur more equal expenditures on education of boys and girls. Moreover, we test if women’s awareness of gender equality can reduce inequality between boys and girls at the household level. We estimate these effects using three rounds of longitudinal data of rural households in Pakistan. We use both household and year fixed effects to control for endogeneity of the dependent and explanatory variables. The results suggest that households where women participate in decisions regarding children’s education spend higher shares of education expenditures on education of girls in the secondary school age group (11-16). The results of Heckman Selection Model, corroborated by an estimated logit model, suggest that in households where women participate in children’s education decisions and where women are aware of gender equality in education, girl children are more likely to be enrolled in school. The paper contributes to the refinement of measures of women’s empowerment and to understanding of the mechanisms to achieve gender equality in education. |
| Keywords: | Consumer/Household Economics, Institutional and Behavioral Economics, Labor and Human Capital |
| Date: | 2020–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:300989&r=all |
| By: | Frohmann, Alicia |
| Abstract: | Este documento presenta algunas herramientas de política comercial que pueden contribuir a la igualdad de género. Para avanzar en esta política, es importante contar con datos desagregados por sexo para analizar cómo las mujeres podrían ser afectadas por ciertas reglas del comercio. Un número creciente de acuerdos comerciales han abordado los temas de género, incluyendo algunos que incorporan un capítulo de género. Algunos proyectos que derivan de acuerdos multilaterales del comercio, tales como el de Facilitación del Comercio, podrían incorporar más explícitamente el empoderamiento económico de las mujeres. El documento presenta modalidades y disposiciones para transversalizar la igualdad de género en áreas centrales de las negociaciones comerciales, lo cual constituye el principal desafío de las políticas comerciales para la igualdad. |
| Keywords: | COMERCIO INTERNACIONAL, INCORPORACION DE LA PERSPECTIVA DE GENERO, POLITICA COMERCIAL, IGUALDAD DE GENERO, ACCESO A LA INFORMACION, ESTADISTICAS COMERCIALES, MUJERES, CAPACIDAD EMPRESARIAL, EXPORTACIONES, GENERO, ACUERDOS ECONOMICOS, OMC, INTERNATIONAL TRADE, GENDER MAINSTREAMING, TRADE POLICY, GENDER EQUALITY, ACCESS TO INFORMATION, TRADE STATISTICS, WOMEN, ENTREPRENEURSHIP, EXPORTS, GENDER, ECONOMIC AGREEMENTS, WTO |
| Date: | 2020–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col025:45063&r=all |
| By: | Suman Seth and Maria Emma Santos |
| Abstract: | The measurement of inequality from a human development perspective is fundamental. We start this paper by briefly introducing the human development approach and its main conceptual basis: the capability approach. We note that inequality should preferably be assessed in the space of functionings, requiring the assessment methods to use multidimensional techniques. We then present the primary challenges inherent to multidimensional inequality measurement that are related to two types of distributional changes: one is concerned with the dispersions within distributions that are analogous to the unidimensional framework and the other, unlike the unidimensional framework, is concerned with the association between distributions. We next present a succinct review of the most prominent measures proposed in the literature within a unifying framework and review the empirical applications surrounding these measures. We note that while multidimensional inequality measures have a great potential to contribute to the monitoring of human development, there are some challenges to overcome in order to fulfil this potential. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:qeh:ophiwp:ophiwp114_2.pdf&r=all |
| By: | González-Bustamante, Bastián (Universidad de Santiago de Chile) |
| Abstract: | This chapter examines the concept of public service models with special emphasis on the Latin American reality. The following section deals with the subject from an historical perspective, its ties to the patronage systems, and the main milestones which have shaped the evolution of the civil services. Subsequently, the next section deals with the chief characteristics and changes in the civil services and presents an evaluation of the models in Latin America. Finally, the last section sets out some brief conclusions and summarises the main ideas of this entry. |
| Date: | 2018–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:mp4qd&r=all |
| By: | Paramjeet Chawla (Tata Institute of Social Sciences, Mumbai, India) |
| Abstract: | In the current global scenario, India stands at the 130th position in the human development ranking for 2018, wherein the major challenge highlighted is that 26% of this human development remains lost due to inequality (UNDP 2018). Even though the notion of ‘vertical’ inequality remains a pertinent issue across the globe, the issue of inequality across social groups in India, arising from a historical discrimination and segregation, continues to remain a deep-seated worry for India’s overall development. The level of well-being of the individuals remains directly linked to the groups’ standard of living. The statements mentioned are also supported by evidence on social group inequalities, wherein the India Exclusion Report 2014-15 states that 59% of the Dalits are employed as labourers in Rural India, 46.5% of the Adivasis are falling in the same category, as against the overall rural population in which only 40% of the individuals are labourers. It is also important to note that, urban inequality remains the major driver for rising inequality in India, thereby requiring an in-depth understanding of inequality (India Inequality Report 2018). This paper focuses on understanding horizontal inequalities across the major social groups in India, Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs) and the unreserved/ general category in the urban spaces for India. The evidence for horizontal inequalities is scattered, and there remains a lack of quantification and consolidation of evidence for inequalities across social groups. This paper aims to measure horizontal inequalities with a human development perspective, for urban spaces in India utilizing the India Human Development Survey (IHDS) (Round 2), and therefore create actionable evidence for matters of gaps and linkages that remain in the capability’s achievement for all the social groups in India. |
| Keywords: | Horizontal Inequality, social groups, human development, capabilities approach, urban |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:smo:ipaper:023pc&r=all |
| By: | Donald A R George; Eddi Fontanari; Ermanno Tortia |
| Abstract: | Standard economic theory predicts that the accumulation of capital by means of indivisible reserves would lead to underinvestment and undercapitalization due to the truncated temporal horizon of worker members in cooperatives (the so called Furubotn-Pejovich effect). To test the real effects of collective capital on productivity, we use a large panel of Italian worker and social cooperatives to estimate the productivity effects of collective and individual reserves of capital. The panel puts together firm-level balance sheet data from Bureau van Dijk Aida database, with social security data concerning employment contracts in all Italian enterprises. Differently from previous contributions, we are able to single out firm-level employment in terms of full-time worker equivalents. We investigate the determinants of total factor productivity by means of an augmented Cobb-Douglas production function. After controlling for factor productivity, individual capital ownership, age of the organization and other standard firm-level and sectoral controls, we find a positive and significant relation between the extent of collective ownership andtotal factorproductivity. This result is robust to different specifications of the model. We interpret the result by highlighting the positive role of collective capital in strengthening financial sustainability, patrimonial and employment stability in the long run, and in favouring specific investments. |
| Keywords: | cooperatives, total factor productivity, self-finance, undercapitalization, collective capital, individual capital |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwprg:2019/20&r=all |
| By: | Gorga, Érica; Library, Cornell |
| Abstract: | 29 Northwestern Journal of International Law & Business, (2009) This paper analyzes micro-level dynamics of changes in ownership structures. It investigates a unique event: changes in ownership patterns currently taking place in Brazil. It builds upon empirical evidence to advance the theoretical understanding of how and why concentrated ownership structures can change towards dispersed ownership. Commentators argue that the Brazilian capital markets are finally taking off. The number of listed companies and Initial Public Offerings (IPOs) in the São Paulo Stock Exchange (Bovespa) has greatly increased. Firms are migrating to Bovespa's special listing segments, which require higher standards of corporate governance. Companies have sold control in the market, and the stock market has recently seen an attempted hostile takeover. This paper discusses these current developments and analyzes ownership structures of companies listed on Bovespa's listing segments based on data from 2006 and 2007. It provides the first evidence of the decline of ownership concentration in Brazilian corporations. There is, however, an important caveat: dispersed ownership is mainly found in Novo Mercado, the listing segment that requires the one-share-one-vote rule. This paper, then, investigates firms' migration patterns, and finds that eighty-five percent of Novo Mercado's firms are "new entrant" firms. Traditional firms have mostly migrated to Level 1, the least stringent corporate governance segment. Thus, there are two corporate worlds in Brazilian capital markets: new corporations that adopt proactive corporate governance patterns, and established corporations that retain their main patterns of corporate governance or ownership structure. This paper additionally explores the consequences of increased dispersion of ownership through private contracting, such as shareholders' agreements and bylaws. The evidence suggests an increasing reliance on shareholders' agreements to coordinate joint control and to bind directors' votes. Research also shows a growing adoption of anti-takeover devices in bylaws. Finally, this paper sheds light on the incentives that may alter preferences of controlling shareholders. This discussion also explains why controlling shareholders opt to create greater diversity of ownership structures. This analysis advances our knowledge of corporate structures in other emerging countries. |
| Date: | 2018–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:lawarx:h7zw2&r=all |
| By: | Sahban, Hernita |
| Abstract: | The type of qualitative research through phenomenology approach, the results showed Traders in the traditional market that became the main distribution channel of Indonesian people's agricultural products, currently has not been able to compete with the traders in the modern market. Though not a few people who rely their lives on traders in traditional markets. When hit by the economic crisis, traders in traditional markets are able to support the lives of most Indonesians, both traders and farmers who are only able to market their agricultural products through this market. With the rapid presence of traders in the traditional market impact on the local suppliers who generally cannot go to large retailers. |
| Date: | 2018–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:38f59&r=all |