nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2020‒03‒09
fourteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. An agent-based model of intra day financial markets dynamics By Jacopo Staccioli; Mauro Napoletano
  2. The developmental state: dead or alive? By Wade, Robert H.
  3. Women and climate change in the Sahel By Chesney McOmber
  4. Knowledge Diffusion Process & Common Islamic Banking Governance Principles: Integrative Perspective (s) of Managers and Shariah Scholars By Adnan Malik; Dr. Karim Ullah; Dr. Shakir Ullah
  5. Equality of the Sexes and Gender Differences in Competition: Evidence from Three Traditional Societies By Klonner, Stefan; Pal, Sumantra; Schwieren, Christiane
  6. Academic Scholarship in Light of the 2008 Financial Crisis: Textual Analysis of NBER Working Papers By Levy, Daniel; Mayer, Tamir; Raviv, Alon
  7. Social protests in Chile: inequalities and other inconvenient truths about Latin America's poster child By Sehnbruch, Kirsten; Donoso, Sofia
  8. Injecting power dynamics and biodiversity protection into elementary microeconomics By David Martin
  9. Winter is possibly not coming : mitigating financial instability in an agent-based model with interbank market By Lilit Popoyan; Mauro Napoletano; Andrea Roventini
  10. Recoupling Economic and Social Prosperity By Lima de Miranda, Katharina; Snower, Dennis J.
  11. El cooperativismo agrario y su potencial para el desarrollo territorial en Uruguay By Adrián Rdodríguez Miranda; Mariana Rodríguez Vivas
  12. The Right to Be Nudged ? Rethinking Social and Economic Rights in the Light of Behavioral Economics By Gauri,Varun
  13. Minimum wages and the resilience of neoclassical labour market economics: Some preliminary evidence from Germany By Heise, Arne
  14. Can we feed the world without wrecking the environment? By Godfray, Charles

  1. By: Jacopo Staccioli (Scuola Superiore Sant'Anna, Pisa, Italy); Mauro Napoletano (OFCE, Sciences Po, Paris, France)
    Abstract: We build an agent based model of a financial market that is able to jointly reproduce many of the stylized facts at different time-scales. These include properties related to returns (leptokurtosis, absence of linear autocorrelation, volatility clustering), trading volumes (volume clustering, correlation betwenn volume and volatility), and timing of trades (number of price changes, autocorrelation of durations between subsequent trades, heavy tails in their distribution, order-side clustering). With respect to previous contributions we introduce a strict event scheduling borrowed from the Euronext exchange, and an endogenous rule for traders participation. We show that such a rule is crucial to match stylized facts.
    Keywords: Intra-day financial dynmaics, stylized facts, agent-based artificial stock markets, Market microstructure
    JEL: C63 E12 E22 E32 O4
    Date: 2018–10
  2. By: Wade, Robert H.
    Abstract: Before the 1980s, the mainstream Western prescription for developing countries to catch up with the West assigned the state a leading role in governing the market. In the 1980s, this shifted to a framework‐providing role in a largely deregulated and maximally open economy. Also in the 1980s, it became apparent that some East Asian capitalist economies were growing so fast that they would become ‘developed’ in the foreseeable future, marking them out as completely exceptional. Mainstream economists explained their success as the result of following the Western prescription, while other scholars attributed this rapid growth to ‘the developmental state’. This essay compares these two explanations of successful economic development, concluding in favour of the latter — with respect to the catch‐up decades. But what happened subsequently? Several scholars who accept the key role of the developmental state in the early period of fast industrialization in East Asia now argue that South Korea, Taiwan and Singapore have transformed from developmental to close‐to‐neoliberal states. This contribution argues that the erstwhile East Asian developmental states have indeed changed, but they have not transformed into neoliberal states. Rather they have adapted and evolved, but still undertake market‐steering, ‘societal mission’ roles well beyond neoliberal limits. The essay also suggests how other developing countries can learn lessons from their experience.
    JEL: N0
    Date: 2018–03–01
  3. By: Chesney McOmber
    Abstract: The purpose of this paper is to explore the gendered impacts of climate change in the Sahel. In particular, it explores the ways in which gender inequality is a critical factor in understanding vulnerability and resilience efforts concerning climate change. It shows that the current climate crisis is affecting livelihoods throughout the Sahel in pronounced ways. In a region highly dependent upon subsistence agriculture and pastoralist livelihoods, climate variability and environmental degradation have made such livelihoods difficult to sustain, the effects of which have broad ranging impacts on social and economic systems. Consequently, migration, livelihood adaptation, social unrest, and political instability emerge from the ecological challenges the Sahel is facing. Those with the resources to respond to and prepare for future climate events will be better equipped to navigate the climate crisis. Unfortunately, those resources are rarely equally distributed at the household, community, and state levels. In particular, gender inequalities within the Sahel pose a very real challenge for adaptation and resilience strategies as states and global institutions make interventions to support at risk populations. The paper then explores what development and state institutions are doing to resolve gender inequity through climate resilience policy, and where these efforts are falling short. The paper concludes with some strategies to improve opportunities for gender equity and climate resilience based on field research within the Sahel.
    JEL: Q54 J16 O55
    Date: 2020–03–09
  4. By: Adnan Malik; Dr. Karim Ullah; Dr. Shakir Ullah
    Abstract: Islamic banks being commercial entities strive to earn profit within shariah ambit. Therefore, they seem to be basing themselves upon two knowledge streams namely i) Islamic jurisprudence principles, and ii) banking principles. Islamic jurisprudence principles primarily aim at bringing shariah compliance while banking principles focus profitability. These principles, making two schools of thought in the discipline, however, have their unique philosophies, principles, and practices, which are now gradually diffusing into an emergent set of governance principles basing the contemporary Islamic banking theory and practice. Governance systems of Islamic banks have elements of both conventional as well as Shariah, and need to have principles having components of banking and shariah sufficiently diffused for their successful operations in a longer term. Aim of this research is to review the literature about the knowledge diffusion process of islamic banking principles which guides the governance of Islamic banks. This study review the literature using a method in which focus remain on bridging different areas which in this case are knowledge diffusion and islamic banking governance principles.
    Date: 2020–01
  5. By: Klonner, Stefan; Pal, Sumantra; Schwieren, Christiane
    Abstract: Can gender-balanced social norms mitigate the gender differences in competitiveness that are observed in traditional patriarchic as well as in modern societies? We experimentally assess men's and women's preferences to compete in a traditional society where women and men have similar rights and entitlements alongside a patriarchic and a matrilineal society which have previously been studied. We find that, unlike in the patriarchic society, there is no significant gender difference in the inclination to compete in the gender-balanced society. We also find that women's decisions in our experiment are optimal more often than men's in the gender-balanced society - opposite to the pattern encountered in the patriarchic society. Our results highlight the importance of culture and socialization for gender differences in competitiveness and suggest that the large gender-differences in competitiveness documented for modern societies are a long-term consequence of a patriarchic heritage.
    Keywords: gender economics; competition; social norms; traditional societies; lab-in-the-field experiment
    Date: 2020–02–26
  6. By: Levy, Daniel; Mayer, Tamir; Raviv, Alon
    Abstract: Textual analysis of 14,270 NBER Working Papers published during 1999–2016 is done to assess the effects of the 2008 crisis on the economics literature. The volume of crisis-related WPs is counter-cyclical, lagging the financial-instability-index. WPs by the Monetary-Economics, Asset-Pricing, and Corporate-Finance program members, hardly refer to “crisis/crises” in the pre-crisis period. As the crisis develops, however, their study-efforts of crisis-related issues increase rapidly. In contrast, WPs in macroeconomics-related programs refer quite extensively in the pre-crisis period to “crisis/crises” and to crises-related topics. Overall, our findings are consistent with the claim that economists were not engaged sufficiently in crises studies before the 2008 crisis. However, counter to the popular image, as soon as the crisis began to unravel, the NBER affiliated economists responded dramatically by switching their focus and efforts to studying and understanding the crisis, its causes and its consequences.
    Keywords: 2008 Financial Crisis,Textual Analysis,Financial Crises,LDA,Topic Modelling,Securitization,Repo,Sudden Stop
    JEL: A11 C38 C55 E32 E44 E58 F30 G01 G20 G21 G28
    Date: 2020
  7. By: Sehnbruch, Kirsten; Donoso, Sofia
    Abstract: The massive protests that exploded in Chile in October 2019 have left the country reeling from shock. The extensive participation of the population in demonstrations in Santiago and in all regional capitals, as well as the exceptional degree of violence and destruction that accompanied them, prompted President Piñera to declare a state of emergency that lasted for nine days, put the military on the streets and imposed a curfew. This has left many international observers wondering what went wrong in a country that has often been held up by mainstream opinion as the poster child to other Latin America countries. Relatively high growth rates have been accompanied by sharp declines in poverty, steady improvements in educational outcomes, and even recent declines in inequality1 – all in the context of a relatively high-functioning democracy. The question emerges whether these protests are an exceptional occurrence limited to the context of Chile, or whether they are an indication of a more widespread malaise in one of the world’s most unequal regions. In this article, we argue that the eruption of the social protests observed since October 2019 should not have surprised any close observer of Chile; in fact, they are paralleled by other protests in the region, such as in Ecuador, Colombia and Bolivia. However, the degree of violence, looting and incendiary attacks on metro stations, supermarkets, pharmacies and other businesses were indeed unexpected, as was the extent of human rights violations resulting from the response of the police and armed forces to the disturbances.
    JEL: N0
    Date: 2020–01–30
  8. By: David Martin (Department of Economics, Davidson College)
    Abstract: Microeconomic theory is applied to protecting the biodiversity that conservation biologists have identified as important and threatened in several ways, including creating market values for ecosystem services and providing incentives for local people to protect habitats. Yet, economists frequently ignore the power dynamics inherent in the social systems involved with the biodiversity measures they propose and assess, which brings them into conflict with political ecologists. To bridge this gap between economists, political ecologists, and conservation biologists, I discuss how to frame the important introductory microeconomic topics of consumer sovereignty and the equimarginal rule with the additions of the type of power dynamics commonly used by political ecologists. I use the topics of shade grown coffee and the Noah’s Ark framework, both very familiar to conservation biologists, to place this discussion within the context of protecting biodiversity. I conclude that introducing these topics will better serve the biodiversity analysts who take only the economics principles course.
    Keywords: Biodiversity protection, consumer sovereignty, equimarginal rule, shade grown coffee, Noah’s Ark
    JEL: Q57 A12 A13
    Date: 2020–03
  9. By: Lilit Popoyan (Institute of Economics (LEM), Scula superiore Sant'Anna, Pisa, Italia); Mauro Napoletano (Sciences Po OFCE, Skema Business School); Andrea Roventini (EMbe DS and Institute of Economics (LEM))
    Keywords: Financial instability, interbank market freezes, monetary policy, macro- prudential policy, Basel III regulation, Tinbergen principle, agent-based model.
    JEL: C63 E52 E6 G01 G21 G28
    Date: 2019–07
  10. By: Lima de Miranda, Katharina (Kiel Institute for the World Economy); Snower, Dennis J. (Kiel Institute for the World Economy)
    Abstract: This paper explores a new theoretical and empirical approach to the assessment of human well-being, relevant to current challenges of social fragmentation in the presence of globalization and technological advance. We present two indexes of well-being – solidarity (S) and agency (A) – to be considered alongside the standard indexes of material gain (G) and environmental sustainability (E). The four indexes – SAGE – form a balanced dashboard for evaluating well-being. The solidarity index covers the needs of humans as social creatures, living in societies that generate a sense of social belonging. The agency index involves people's need to influence their fate through their own efforts. While "economic prosperity" (material gain) is conventionally measured through GDP per capita, "social prosperity" can be measured through our solidarity and agency indexes, alongside environmental sustainability that is measured through the Environmental Performance Index. The SAGE dashboard is meant to provide a "sage" approach to assessing well-being, since it aims to denote sagacity in the pursuit and satisfaction of fundamental human needs and purposes. Many of the prominent challenges of the twenty-first century, including the dissatisfaction of population groups who feel left behind by globalization and technological advance, may be viewed in terms of a "decoupling" of economic prosperity from social prosperity. We present a theoretical model that provides a new perspective on the welfare effects of globalization and automation. The dashboard is meant to provide an empirical basis for mobilizing action in government, business and civil society to promote a recoupling of economic and social prosperity.
    Keywords: Beyond GDP, inequality, empowerment, social cohesion, social inclusion, social solidarity, social sustainability, well-being
    JEL: I31 O11 D63 D91 A13 F01 F60 H11
    Date: 2020–02
  11. By: Adrián Rdodríguez Miranda (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Mariana Rodríguez Vivas (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: The aim of this working paper is to begin to explore the relationship between agricultural cooperativism and territorial development in Uruguay. With this goal, in the first place, a theoretical presentation is made on the characteristics of the territorial development approach, highlighting the coincidences with cooperativism. In turn, it focuses on the category of endogenous development as the main link between the two concepts. Based on the above, it is argued that cooperativism has great potential to contribute to territorial development strategies that generate economic value, social development and local appropriation of wealth. Subsequently, a synthesis of the main milestones of the cooperative movement in Uruguay is presented. Then, the case of agricultural cooperativism in Uruguay is analyzed in more detail. First, the characteristics of the rural environment related to agricultural production and farmers are presented. Then, in that context, the evolution of agricultural cooperativism is analyzed, from its origins to the present moment. Special attention is given to the relationship with development processes and the challenges faced by the rural environment and small farmers. Finally, some conclusions are made about the potential of agricultural cooperativism to promote territorial development in Uruguay.
    Keywords: cooperativism, agricultural cooperatives, territorial development, regional development, rural territorial development, Uruguay
    JEL: O18 P13 Q13 R58
    Date: 2019–12
  12. By: Gauri,Varun
    Keywords: Health Care Services Industry,Educational Sciences,Human Rights,Public Health Promotion,Nutrition
    Date: 2019–06–20
  13. By: Heise, Arne
    Date: 2020
  14. By: Godfray, Charles
    Abstract: It is now over 200 years since Malthus pessimistically predicted demand for food would inevitably outpace our capacity to produce it. Over these two centuries the goal of feeding the world sustainably has seemed elusive and even receding as we understand the threats posed by global warming and other types of environmental challenge that John Beddington so memorably called the ‘Perfect Storm’. But there are grounds for hope. Population growth rates are decelerating as more countries go through the demographic transition. We can now imagine a future where humanity’s demands of the Earth plateau or even decrease. But at that plateau there will be billions more people needing to be fed than exist today. This talk argues that it is possible to feed this number of people without despoiling the environment, but only if we make hard decisions today. We require a new revolution in agriculture, of the same magnitude as the Industrial and Green Revolutions, that not only boosts productivity but also radically improves resource-use efficiency and sustainability. We need to reduce waste across the food system. We need to make hard decisions about diets and consumption patterns. And we need to accept globalisation and refashion a globalised food system that provides public as well as private benefits. These ambitious goals are attainable – it’s ‘game on’ – but only if we understand the risks and the challenges and build the political will to act.
    Keywords: Environmental Economics and Policy, Food Security and Poverty
    Date: 2019–08

This nep-hme issue is ©2020 by Carlo D’Ippoliti. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.