nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2020‒03‒02
seventeen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. 2019 Annual trends and outlook report: Gender equality in rural Africa: From commitments to outcomes: Synopsis: By Quisumbing, Agnes R.; Meinzen-Dick, Ruth Suseela; Njuki, Jemimah
  2. Inequalities and the individualization of wealth By Nicolas Frémeaux; Marion Leturcq
  3. Losing in a Boom: Long-term Consequences of a Local Economic Shock for Female Labour Market Outcomes By Bennett, Patrick; Ravetti, Chiara; Wong, Po Yin
  5. First regionalized social accounting matrix for Egypt: A 2015 nexus project social accounting matrix: By Randriamamonjy, Josée; Raouf, Mariam; Thurlow, James
  6. Keeping up with the Novaks? Income distribution as a determinant of household debt in CESEE By Hake, Mariya; Poyntner, Philipp
  7. Regionalized Social Accounting Matrix for Yemen: A 2014 Nexus project SAM: By Raouf, Mariam; Randriamamonjy, Josée; Engelke, Wilfried; Kebsi, Tarek Al; Tandon, Sharad A.; Wiebelt, Manfred; Breisinger, Clemens
  8. Simulating fire sales in a system of banks and asset managers By Calimani, Susanna; Hałaj, Grzegorz; Żochowski, Dawid
  9. 2015 regionalized social accounting matrix for Tunisia: A nexus project SAM: By Salhine, Rim Ben; Younes, Anis Ben; El Kadhi, Zouhair; Jebali, Belhassen; Raouf, Mariam
  10. Europe’s alternative: a Green Industrial Policy for sustainability and convergence By Lucchese, Matteo; Pianta, Mario
  11. Bayesian estimation of agent-based models via adaptive particle Markov chain Monte Carlo By Lux, Thomas
  12. Coming from afar and picking a man’s job:Women immigrant inventors in the United States By Edoardo FERRUCCI; Francesco LISSONI; Ernest MIGUELEZ
  13. Does political pressure on ‘gender’ engender danger for scientific research? Evidence from a randomized controlled trial By Tunde Lenard; Daniel Horn; Hubert János Kiss
  14. Determinants of Global Value Chain Participation: Cross-country Analysis By Biswajit Banerjee; Juraj Zeman
  15. The Marginalization of Absolute and Relative Income Hypotheses of Consumption and the Role of Fiscal Policy By Drakopoulos, Stavros A.
  16. The Onset, Spread, and Prevention of Mass Atrocities: Perspectives from Network Models By Charles H. Anderton; Jurgen Brauer
  17. Mass Atrocities and their Prevention By Charles H. Anderton; Jurgen Brauer

  1. By: Quisumbing, Agnes R.; Meinzen-Dick, Ruth Suseela; Njuki, Jemimah
    Abstract: Gender-sensitive policy and programming have an integral role to play in fostering inclusive agricultural growth to meet the commitments of African countries to the Malabo Declaration goals. The 2019 Annual Trends and Outlook Report from ReSAKSS applies a gender lens to key issues that must be addressed to fully achieve these goals. Chapters examine the intersections between gender and (1) the context and institutions within which rural people operate; (2) the natural resources that men and women depend on for agriculture, sources of vulnerability, and resilience to shocks; (3) assets and income; and (4) livelihood strategies and well-being.
    Keywords: WEST AFRICA, EAST AFRICA, CENTRAL AFRICA, SOUTHERN AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, gender, women, poverty, agricultural policies, rural areas, empowerment, trade, entrepreneurship, livelihoods, youth, land rights, gender equality,
    Date: 2019
  2. By: Nicolas Frémeaux; Marion Leturcq
    Abstract: We document the individualization of wealth in France between 1998 and 2015, using precise survey data on the property titles of assets. It is characterized by an increase in the share of wealth which is individualized by spouses (vs. jointly owned) and by an increase in the share of wealth held by singles. We show that the usual measures of wealth inequality, which allocate the same share of household wealth to each spouse or partner, overestimate the share of wealth held by women. This results in an underestimation of both the level and the growth of a) wealth inequality between individuals and b) the gender wealth gap. We argue for better consideration of the ownership status and intra-household distribution of wealth in the measurement of wealth inequality.
    Keywords: Wealth, Individualization, Wealth inequality, Gender wealth gap, Matrimonial property regime, France, PARITE HOMME - FEMME / GENDER PARITY, PATRIMOINE / WEALTH, MARIAGE / MARRIAGE, COUPLE / COUPLE, FRANCE / FRANCE
    Date: 2020–04–01
  3. By: Bennett, Patrick (Dept. of Economics, Norwegian School of Economics and Business Administration); Ravetti, Chiara (Polytechnic of Turin); Wong, Po Yin (Research Department, Hong Kong Monetary Authority)
    Abstract: This paper examines the long-term labour market consequences of a positive economic shock, the first discovery of oil and gas in Norway. Existing studies focus on the short-term and men, while less is known about women and the persistence of such shocks. Oil discovery increased male earnings (by 7%), while female earnings declined (by 10%). These shifts persist for two decades. Labour force participation and occupational change account for the earnings divergence. Within married couples, wives’ earnings declined, but household earnings increased. However, women’s income loss in oil regions is transitory: younger cohorts catch up to women in non-oil regions.
    Keywords: Labour market; Fairness
    JEL: J00
    Date: 2020–02–19
  4. By: Kayitesi, Claudine
    Keywords: Agribusiness
    Date: 2019–10
  5. By: Randriamamonjy, Josée; Raouf, Mariam; Thurlow, James
    Abstract: The Central Agency for Public Mobilization and Statistics (CAPMAS) is pleased to present the first regionalized social accounting matrix (SAM) for Egypt. This SAM marks a major milestone in “localizing†development research and policy in Egypt and is expected to be most valuable for the development, implementation, and assessment of Egypt’s national and local development plans, like Egypt’s Sustainable Development Strategy 2030. In addition to standard SAMs, which combine many national datasets from institutions such as Central Banks, Ministries of Finance and Agriculture, and Statistical Bureaus, this regionalized SAM makes extensive use of sub-national level information such as the Economic Survey and Household Income and Expenditure Survey (HIECS) produced by CAPMAS, regional GDP estimates by the Ministry of Planning, Monitoring and Administrative Reform, and the Agricultural Bulletins with information at the Governorate level produced by the Ministry of Agriculture and Land Reclamation. With this data it becomes possible to provide a detailed, socioeconomic status update for different regions within Egypt. As such, the disaggregated SAM allows for analyzing developmental issues at regional level and to better understand the potential impacts of policy changes at the local level.
    Keywords: EGYPT, ARAB COUNTRIES, MIDDLE EAST, NORTH AFRICA, AFRICA, household expenditure, commodities, taxes, enterprises, data, data collection, economic indicators, databases, agriculture, Social Accounting Matrix (SAM),
    Date: 2019
  6. By: Hake, Mariya; Poyntner, Philipp
    Abstract: This paper constitutes an initial attempt to shed light on the role of income distribution in household debt and financial market access in Central, Eastern and Southeastern Europe (CESEE). Using household-level data from the OeNB’s Euro Survey for the period 2009-2018, we address the question whether interpersonal comparisons (“keeping up with the CESEE Joneses" i.e. "the Novaks”) affect the probability of having and planning a loan. Applying multilevel probit modeling to take into account the hierarchical structure of the data, our results support the notion that higher income inequality is negatively correlated with the probability of having a loan at the bottom of the distribution, and positively at the top. We show this impact for almost all components of household debt, but evidence is strongest for mortgage, car and foreign currency loans. Interpersonal comparisons turn out to drive loan intentions, however, mainly on the very top of the income distribution.
    JEL: G0 D1 D3
    Date: 2020–02–11
  7. By: Raouf, Mariam; Randriamamonjy, Josée; Engelke, Wilfried; Kebsi, Tarek Al; Tandon, Sharad A.; Wiebelt, Manfred; Breisinger, Clemens
    Abstract: A Social Accounting Matrix (SAM) is a representation of an economy that shows the circular flow of all transfers and real transactions between sectors and institutions. The SAM, which is a square matrix, describes the flows of incomes from activities, taking the form of factor remunerations, that are consequently received by the households for consumption on goods and services. The accounts in the SAM are the production activities, commodities, institutions, and factors of production. According to data availability, the production activities can be further disaggregated to include more detailed information on sub-sectoral or regional production. Similarly, the factors of production could be differentiated by the level of skills or the location of employment. Households can be disaggregated by income quintiles or by rural and urban residence.
    Keywords: EGYPT, ARAB COUNTRIES, MIDDLE EAST, NORTH AFRICA, AFRICA,YEMEN, ARAB COUNTRIES, MIDDLE EAST, SOUTHWESTERN ASIA, ASIA, household expenditure, commodities, taxes, enterprises, data, data collection, economic indicators, databases, agriculture, Social Accounting Matrix (SAM),
    Date: 2019
  8. By: Calimani, Susanna; Hałaj, Grzegorz; Żochowski, Dawid
    Abstract: We develop an agent-based model of traditional banks and asset managers to investigate the contagion risk related to fire sales and balance sheet interactions. We take a structural approach to the price formation in fire sales as in Bluhm et al. (2014) and introduce a market clearing mechanism with endogenous formation of asset prices. We find that, first, banks which are active in both the interbank and securities markets may channel financial distress between the two markets. Second, while higher bank capital requirements decrease default risk and funding costs, they make it also more profitable to invest into less-liquid assets financed by interbank borrowing. Third, asset managers absorb small liquidity shocks, but they exacerbate contagion when their voluntary liquid buffers are fully utilised. Fourth, a system with larger and more interconnected agents is more prone to contagion risk stemming from funding shocks. JEL Classification: C6, G21, G23
    Keywords: agent-based model, asset managers, contagion, fire sales, systemic risk
    Date: 2020–02
  9. By: Salhine, Rim Ben; Younes, Anis Ben; El Kadhi, Zouhair; Jebali, Belhassen; Raouf, Mariam
    Abstract: A Social Accounting Matrix (SAM) is an accounting framework that gives a quantitative overview of the structure of the economy over a given time period. It records all transactions between economic agents, while respecting the principles of circularity of flows and balance between revenues and expenditures for each account. The level of disaggregation of accounts in the matrix varies according to the analyses to be undertaken and data availability. The accounts in a national SAM generally are production activities, commodities, institutions, and factors of production. For economic analyses and planning, a more detailed SAM is constructed. These involve disaggregation of activities, households, and factors of production from the more general national SAM. In such matrices, the national economy often will also be disaggregated into sub-national regions. Such SAMs provide rich datasets to help decision-makers in developing, designing, and evaluating regional economic and investment policies. As part of the technical cooperation within the (Arab) Agricultural Investment Development Analyzer (AIDA) project, which aims to develop tools for planning and evaluating investment projects in the agricultural sector, the Institut Tunisien de la Compétitivité et des Etudes Quantitatives (ITCEQ – the Tunisian Institute of Competitiveness and Quantitative Studies), in collaboration with the International Food Policy Research Institute (IFPRI), have built a regionalized SAM of the Tunisian economy with detailed disaggregation at the sector, product, household, and regional levels. This SAM has been constructed using IFPRI's Nexus format, which uses common data standards, procedures, and classification systems for constructing and updating national SAMs. The regionalized SAM for Tunisia was built using national accounts statistics for the country, the Supply and Use Tables for 2015, which are produced by the National Institute of Statistics (NIS). The regionalized matrix is constructed in three steps – national, household, and regional. • The national 2015 SAM for Tunisia includes 46 sectors and 46 products. • For the household SAM, factors of production are split into 13 categories. Capital is disaggregated into four subcategories: crops, livestock, mining, and other. Land is a separate factor of production category. Labor is disaggregated into four education-level categories and across rural and urban areas. For the household SAM, household accounts are split into 15 categories by rural farm, rural nonfarm, and urban categories and then by national per capita expenditure quintiles. • For the regionalized SAM, sectoral production, production factors, and household groups are disaggregated into seven subnational regions: Greater Tunis, North East, North West, Center East, Center West, South East, and South West. The regional 2015 SAM in total has 105 household groups and is composed of 513 rows x 513 columns.
    Keywords: EGYPT, ARAB COUNTRIES, MIDDLE EAST, NORTH AFRICA, AFRICA,TUNISIA, accounting, regional accounting, households, production, Social Accounting Matrix (SAM),
    Date: 2020
  10. By: Lucchese, Matteo; Pianta, Mario
    Abstract: Europe is facing the twin challenges of addressing climate change and reducing the centre-periphery divergence. The ‘European Green Deal’ of the EU Commission includes larger climate change objectives, but with the same amount of EU resources and no clear vision on how to achieve aims. The lack of action for greater cohesion and convergence in economic performances is contributing to wider disparities within Europe, in particular with the countries and regions of Southern Europe. These challenges could be jointly understood as a need for deep changes in Europe’s production systems, making them carbon-neutral and distributing more evenly economic activities in Europe’s territory. A Green Industrial Policy for Europe could be the appropriate frame for developing a combined set of policies addressing such challenges.
    Keywords: Europe, green industrial policy, economic convergence
    JEL: L52 O25 P48
    Date: 2020
  11. By: Lux, Thomas
    Abstract: Over the last decade, agent-based models in economics have reached a state of maturity that brought the tasks of statistical inference and goodness-of-fit of such models on the agenda of the research community. While most available papers have pursued a frequentist approach adopting either likelihood-based algorithms or simulated moment estimators, here we explore Bayesian estimation using a Markov chain Monte Carlo approach (MCMC). One major problem in the design of MCMC estimators is finding a parametrization that leads to a reasonable acceptance probability for new draws from the proposal density. With agent-based models the appropriate choice of the proposal density and its parameters becomes even more complex since such models often require a numerical approximation of the likelihood. This brings in additional factors affecting the acceptance rate as it will also depend on the approximation error of the likelihood. In this paper, we take advantage of a number of recent innovations in MCMC: We combine Particle Filter Markov Chain Monte Carlo (PMCMC) as proposed by Andrieu et al. (2010) with adaptive choice of the proposal distribution and delayed rejection in order to identify an appropriate design of the MCMC estimator. We illustrate the methodology using two well-known behavioral asset pricing models.
    Keywords: Agents-based models,Makov chain Monte Carlo,particle filter
    JEL: G12 C15 C58
    Date: 2020
  12. By: Edoardo FERRUCCI; Francesco LISSONI; Ernest MIGUELEZ
    Abstract: Based on an original dataset spanning over 20 years of patenting at the United States Patent & Trademark Office (USPTO), we identify the gender, residence, and nationality of inventors, based on which we also identify migrants and natives in the United States, as well as stayers (non-migrants) in the migrants’ countries of origin. We find that the share of women over the total number of US-resident inventors (or WIR: Women Inventor Rate) is generally higher for migrants than for US natives, so that the former have contributed significantly to the increase of WIR in the US over the past quarter century. At the same time, the WIR for migrants is higher than that of stayers, which suggests that migration to the US represents an opportunity for high-skilled women to undertake a career in R&D, notwithstanding the obstacles they may face, and irrespective of their country of origin. This intuition is reinforced by an analysis of women inventors’ technological specialization, which reveals that female migrants are better represented than natives and stayers in men-dominated fields.
    Keywords: STEM migrants; High-skilled migrants; Inventors; Gender
    JEL: J16 F22 O15 O30
    Date: 2020
  13. By: Tunde Lenard (Institute of Economics, Centre for Economic and Regional Studies); Daniel Horn (Institute of Economics, Centre for Economic and Regional Studies and Eötvös Loránd University); Hubert János Kiss (Institute of Economics, Centre for Economic and Regional Studies and Eötvös Loránd University)
    Abstract: We detect a significant negative effect of mentioning ‘gender’ as a research topic on conducting academic research in Hungary. Using a randomized information treatment involving a comprehensive sample of Hungarian educationproviders we find that they are less willing to cooperate in a gender related future research compared to a research without this specification. Our results also indicate that this negative sentiment is clearly against gender and not against any topic covering social inequalities in general.
    Keywords: Randomized experiment, Gender, Information treatment
    JEL: C90 C93 H39 I28 J16
    Date: 2020–01
  14. By: Biswajit Banerjee (Ashoka University and National Bank of Slovakia); Juraj Zeman (National Bank of Slovakia)
    Abstract: This paper examines the factors that influence the five most common measures of GVC participation for the sample of countries included in the World Input Output Database (WIOD). For this sample, backward linkage is stronger than forward linkage and is the main channel for integration into GVCs. Also, a stronger backward linkage is associated with a relatively more downstream position in GVCs. Country size and openness to inward FDI are important determinants of GVC indicators. Of all the industry groupings, the influence on all the GVC indicators is strongest for high-tech manufacturing. In both manufacturing and services, the higher is the share of the high-tech categories the greater is the backward linkage and GVC participation rate, and the GVC position is relatively more downstream. The real exchange rate is positively associated with the share of domestic value added in gross exports (VAX ratio), which is a manifestation of the exchange rate elasticity of value-added exports being smaller than the exchange rate elasticity of gross exports.
    Keywords: Global value chains, VAX ratio, Backward linkage, Forward linkage, GVC participation rate, GVC position index
    Date: 2020–02
  15. By: Drakopoulos, Stavros A.
    Abstract: In Keynes’ consumption theory absolute income is the major determinant of consumption, and the marginal propensity to consume determines the magnitudes of fiscal multipliers. Keynes employed a largely psychological analysis of consumption, rejecting the model of utility maximizing consumer. J. Duesenberry extended and improved Keynes’ approach by also emphasizing the role of psychological and social factors on consumption decisions (the relative income hypothesis). Similar conclusions regarding the role of income on consumption, and therefore support for Keynesian policies, are reached by Duesenberry’s analysis. The life-cycle hypothesis by Modigliani and Brumberg (1954), and the permanent income hypothesis by Friedman (1957), emerged as the two main alternatives to Keynes’ and Duesenberry’s approaches. Modern orthodox consumption theories are extensions of these two theories in a rational expectations framework. By employing the concept of forward looking, optimizing agents, current or relative income plays a minimal role in the life-cycle and permanent income hypotheses, and an even lesser role in contemporary orthodox consumption theories. Consequently, fiscal policy has a negligible effect on output and employment. The paper argues that Keynes and Duesenberry’s approaches were marginalized not because of their empirical or theoretical shortcomings, but because of emphasizing the psychological and social influences on consumption patterns, and because of not employing the intertemporal utility maximizing framework. The clear implication of the discussion is that the marginalization of absolute and relative income hypotheses was due to the dominance of a specific methodological framework that did not favour such approaches.
    Keywords: Consumption Function; Keynes; Duesenberry; Economic Methodology
    JEL: B20 B40 E21 E62
    Date: 2020–02
  16. By: Charles H. Anderton (Professor of Economics, Department of Economics and Accounting, College of the Holy Cross, Worcester, MA, USA); Jurgen Brauer (Emeritus Professor of Economics, Hull College of Business, Augusta University, Augusta, GA, USA, and Visiting Professor of Economics, EBA Program, Faculty of Economics, Chulalongkorn University, Bangkok, Thailand)
    Keywords: JEL Classification: B55, D74, D85, D91
    Date: 2018–11
  17. By: Charles H. Anderton (Professor of Economics and Distinguished Professor of Ethics and Society, College of the Holy Cross, Worcester, MA, USA); Jurgen Brauer (Emeritus Professor of Economics, Augusta University, Augusta, GA, USA and Visiting Professor of Economics, Chulalongkorn University, Bangkok, Thailand)
    Abstract: Counting conservatively, and ignoring physical injuries and mental trauma, data show about 100 million mass atrocity-related deaths since 1900. Occurring in war- and in peacetime, and of enormous scale, severity, and brutality, they are geographically widespread, occur with surprising frequency, and can be long-lasting in their adverse effects on economic and human development, wellbeing, and wealth. As such, they are a major economic concern. This article synthesizes very diverse and widely dispersed theoretical and empirical literatures, addressing two gaps: a “mass atrocities gap†in the economics literature and an “economics gap†in mass atrocities scholarship. Our goals are, first, for noneconomists to learn how economic inquiry contributes to understanding the causes and conduct of mass atrocities and possibly to their mitigation and prevention and, second, to survey and synthesize for economists a broad sweep of literatures to serve as a common platform on which to base further work in this field.
    Keywords: JEL Classification: B55, D71–D74, D91, F55, H56, J15, K38, P16
    Date: 2019–01

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