nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2020‒03‒30
nineteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Postkeynesianismus Ein heterodoxer Ansatz auf der Suche nach einer Fundierung By Heise, Arne
  2. A Measure of Duration in a Life Cycle Analysis of U.S. Agricultural Cooperatives By Boland, Michael A.
  3. The Inclusive and Sustainable Industrial Development Index: A Data Envelopment Analysis approach By Charles Fang Chin Cheng; Nicola Cantore
  4. Modeling the out-of-equilibrium dynamics of bounded rationality and economic constraints By Oliver Richters
  5. The Menger-Mises Theory of the Origin of Money - Conjecture or Economic Law? By Kristoffer Hansen
  6. Fueling the Engines of Liberation with Cleaner Cooking Fuel By Tushar Bharati; Yiwei Qian; Jeonghwan Yun
  7. Keynes's investment theory as a micro-foundation for his grandchildren By Nisticò, Sergio
  8. Gary Becker : homo economicus et néolibéralisme. Contribution au séminaire de philosophie politique à l'ENS de Lyon organisé par la direction d'Arnaud Milanese et de Nathanael Colin-Jäger By Arthur Kramer
  9. Brexit - Populist Reaction to the 2008 Speculative Bubble Bursting? By Ejan Mackaay
  10. L’idée de régulation dans les sciences : hommage à l’épistémologue Jean Piaget By Claude Diebolt
  11. Effect of segregation on inequality in kinetic models of wealth exchange By Lennart Fernandes; Jacques Tempere
  12. Are Economists Getting Climate Dynamics Right and Does It Matter? By Simon Dietz; Rick van der Ploeg; Armon Rezai; Frank Venmans
  13. À quoi ressemblent les classes moyennes en Côte d’Ivoire aujourd’hui? Continuités historiques et enjeux renouvelés d’un ensemble hétérogène By Jean-Philippe Berrou; Dominique Darbon; Anne Bekelynck; Christian Bouquet; Matthieu Clément; François Combarnous; Eric Rougier
  14. Artificial Intelligence, Historical Materialism, and close enough to a jobless society By Rogerio Silva Mattos
  15. Forecasting in a complex environment: Machine learning sales expectations in a Stock Flow Consistent Agent-Based simulation model By Ermanno Catullo; Mauro Gallegati; Alberto Russo
  16. "A Global Slowdown Will Test US Corporate Fragility" By Dimitri B. Papadimitriou; Michalis Nikiforos; Gennaro Zezza
  17. The emancipatory firm: surpassed the spirituality and religion at work “regulation” by the disputatio. By Hugo Gaillard; Thierry Jolivet
  18. Climate Change and the Financial System: A Note By Anastasios Xepapadeas
  19. Resisting via Hybrid Spaces : The Cascade effect of a workplace Struggle against Neoliberal Hegemony By Florence Palpacuer; Amélie Seignour

  1. By: Heise, Arne
    Abstract: This article takes an in-depth look at post-Keynesianism as a paradigmatic alternative to the dominant neoclassical mainstream. It quickly becomes clear that post-Keynesianism is not a unified school of thought, but rather an assortment of theoretical approaches that share certain methodological and epistemological similarities and characteristic postulates. The Article does not attempt to describe the full array of Kaleckian, Kaldorian and Sraffian variants of post-Keynesian theory but instead analysis the paradigmatic and formal structure of one particular form of post-Keynesianism, the monetary theory of production in order to reconstruct these characteristic postulates from the axiomatic core of post-Keynesianism. It then sets out the theory of market participation, an alternative theory of economic policy that builds on monetary production economics.
    Keywords: Postkeynesianismus,heterodoxe Ökonomik,Neoklassik, Paradigma
    JEL: B41 B49 B5 E11 E12 E60
    Date: 2019–04
  2. By: Boland, Michael A.
    Abstract: The issue of a life cycle has been discussed in the literature but no formal analysis has been shown regarding its duration in agricultural cooperatives, which are a key organizational structure in the United States. The objective is to provide evidence for a life cycle in U.S. agricultural cooperatives and measure the duration of the first three phases. A life cycle analysis is used to categorize historical data on 88 of the top 100 agricultural cooperatives comprising 71% of sales in 2014. The data suggests that marketing cooperatives have a much different life cycle relative to mixed cooperatives who have undergone significant changes since the year 2000.
    Keywords: Agribusiness, Agricultural Finance, Community/Rural/Urban Development
    Date: 2020–03
  3. By: Charles Fang Chin Cheng (Department of Policy Research and Statistics UNIDO); Nicola Cantore (Department of Policy Research and Statistics UNIDO)
    Abstract: Inclusive and Sustainable Industrial Development (ISID) calls for the full engagement and commitment of policymakers in industrializing countries to minimize the environmental footprint and enhance social inclusion. This study investigates the progress of 118 countries towards ISID (2005-2015) through an input-oriented CCR (Charnes, Cooper and Rhodes) slack-based (data envelopment analysis) DEA model. The efficiency analyses have been carried out using two approaches: i) the ISID approach represents countries’ ambition to promote industrialization and to sustain economic growth by reducing the negative environmental and social effects that become manifest in the economy; ii) the ISIDsdg9 approach considers the same aspects of ISID but only focusses on indicators related to the industrial sector. We develop an analytical tool to measure ISID using these two different approaches. This study finds that Denmark, Sweden and Switzerland top the ranking when applying the ISID approach, and that Czechia and Switzerland rank highest when we apply the ISIDsdg9 approach. We could not detect any signs of catching up between developed and developing countries in terms of progress towards ISID and ISIDsdg9 between 2005 and 2013.
    Keywords: Slack-based model (SBM), Inclusive and Sustainable Industrial Development (ISID), data envelopment analysis (DEA), United Nations Sustainable Development Goals (UN SDGs)
    Date: 2020–03
  4. By: Oliver Richters (University of Oldenburg, Department of Economics)
    Abstract: The mathematical analogies between economics and classical mechanics can be extended from constrained optimization to constrained dynamics by formalizing economic (constraint) forces and economic power in analogy to physical (constraint) forces in Lagrangian mechanics. In a differential-algebraic equation framework, households, firms, banks, and the government employ forces to change economic variables according to their desire and their power to assert their interest. These ex-ante forces are completed by constraint forces from unanticipated system constraints to yield the ex-post dynamics. The out-of-equilibrium model combines Keynesian concepts such as the balance sheet approach and slow adaptation of prices and quantities with bounded rationality (gradient climbing) discussed in behavioral economics and agent-based models. Depending on the power relations and adaptation speeds, the model converges to a neoclassical equilibrium or not. The framework integrates different schools of thought and overcomes some restrictions inherent to optimization approaches, such as the problem of aggregating individual behavior into macroeconomic relations and the assumption of markets operating in or close to equilibrium.
    Keywords: Simultaneous Equation Models; Stability of Equilibrium; Balance Sheet Approach; Constrained Dynamics; Out-of-equilibrium Dynamics, Lagrangian mechanics.
    Date: 2020–03
  5. By: Kristoffer Hansen (GRANEM - Groupe de Recherche Angevin en Economie et Management - Institut National de l'Horticulture et du Paysage - AGROCAMPUS OUEST - UA - Université d'Angers)
    Abstract: In recent years some economists have begun to doubt the scientific standing of the standard Austrian theory of the origin of money. They seem to think that it is only one possible solution to the problem of accounting for money's value. Of these economists, Gary North (North 2012b) has presented the most cogent count-er-interpretation to how we should understand the theory of the origin of money as elaborated by Carl Menger and Ludwig von Mises. Unlike the rest of economic theory, the origin of money and Mises's regression theorem do not partake of the character of a scientific law deduced from the basic principles of the science, but is rather, and is presented as such in the writings of Menger and Mises, what North terms "conjectural history." In this essay we will respond to North's challenge and to the economists who agree with him.
    Date: 2019
  6. By: Tushar Bharati (Economics Discipline, Business School, University of Western Australia); Yiwei Qian (Department of Economics, University of Southern California); Jeonghwan Yun (Department of Economics, University of Southern California)
    Abstract: Using the staggered rollout of the Indonesian “Conversion to Liquefied Petroleum Gas (LPG) Program”, we show that a subsidy on the labor- and time-saving cook technology increased the female labor force participation. The program also increased household consumption expenditure and the decision-making power of women in the household, especially in financial matters. A back-of-the-envelope calculation suggests that the benefits of switching to LPG far outweighed the costs to the households. Based on previous research, we conjecture that intra-household externalities and gender differences in preferences drive low rates of adoption of the cost effective technology. The program’s impact on the financial decision-making power of women suggests that subsidies that empower women, even if temporary, can encourage the adoption and sustained use of beneficial technology.
    Keywords: household technology; time saving; female labor; decision making
    JEL: D13 J22 O14 Q4
    Date: 2020
  7. By: Nisticò, Sergio
    Abstract: In contrast with the "missing micro-foundations" argument against Keynes's macroeconomics, the paper argues that it is the present state of microeconomics that needs more solid "Keynesian foundations". It is in particular Keynes's understanding of investors' behaviour that can be fruitfully extended to consumption theory, in a context in which consumers are considered as entrepreneurs, buying goods and services to engage in time-consuming activities. The paper emphasizes that the outcome in terms of enjoyment is particularly uncertain for those innovative and path-breaking activities, which Keynes discussed in his 1930 prophetic essay about us, the grandchildren of his contemporaries. Moreover, the Keynes-inspired microeconomics suggested in the paper provides an explanation of why Keynes's prophecy about his grandchildren possibly expanding leisure did not materialize yet. The paper finally points at the need for appropriate economic policies supporting consumers' propensity to enforce innovative forms of time use.
    Keywords: Keynesian microeconomics,consumption,time use,uncertainty,Keynes's grandchildren
    JEL: B41 D11 D81
    Date: 2020
  8. By: Arthur Kramer (ENS Lyon - École normale supérieure - Lyon)
    Abstract: Gary Becker et l'homo oeconomicus : mariage rationnel avec le néolibéralisme ? L'économie mathématisée néoclassique simplifierait le réel en utilisant une idée réductrice de l'homme, vu comme un simple calculateur égoïste et rationnel. Cependant, ce serait étrange qu'une théorie si vivace et porteuse de recherches s'appuie sur un modèle aussi simple, les néoclassiques ne sont pas des demeurés. Comprendre la construction intellectuelle de l'homo oeconomicus, c'est essayer de complexifier ce concept. S'intéresser à Gary Becker pour comprendre l'économisation du néolibéralisme trouve sa justification dans sa théorie du capital humain et de ses conséquences dans la théorie de la décision. De fait, Becker réussit le tour de force de modéliser mathématiquement l'agent économique tout en préservant la singularité de chacun : la théorie du capital humain repose sur une théorie de l'information et de la coordination humaine qui permet certains liens avec la pensée politique néolibérale. Avec Becker, on assiste à la fois à une poursuite mais aussi une mutation du néolibéralisme puisque le positivisme de la théorie du capital humain rend possible un discours de conseil aux autorités politiques. Il s'agit de retrouver dans l'homo oeconomicus une réponse à la question « pourquoi ça tient » dans un ordre spontané de marché. La réponse de Becker ouvre la voie à un impérialisme économique dans les domaines de la connaissance sociale.
    Keywords: Néolibéralisme,Gary Becker,Homo Oeconomicus,arthur kramer
    Date: 2019–05–15
  9. By: Ejan Mackaay
    Abstract: As evidence accumulates about the harmful effects Brexit is likely to cause to the British economy, one may wonder what made a majority of Brits vote to leave the EU. Rather than treat it as a fit of ill temper or an unfortunate accident, this paper explores the idea that it should be seen as a populist reaction triggered by the burst of the speculative bubble in 2008-2009 and the subsequent economic mayhem. To make the case, the paper looks at (1) what populism is, (2) how it can arise as part of long-term economic waves and (3) what precisely happened in Britain before and after 2009.
    Keywords: Law and Economics,Public Choice,Populism,Technological Revolutions and Bubble Collapses,Brexit,
    JEL: K00 B52
    Date: 2020–03–24
  10. By: Claude Diebolt
    Abstract: Le 16 septembre 2020 on célèbrera le 40ème anniversaire de la mort de Jean Piaget (1896-1980). Cette contribution rend hommage à l’épistémologue, à son analyse systémique, à sa classification hiérarchique des différents niveaux de régulation comme source d’inspiration unique pour mes propres travaux en cliométrie de la croissance et des cycles économiques.
    Keywords: Epistémologie, Jean Piaget, régulation, sciences, systèmes complexes, systèmes sociaux, croissance, cycles, histoire économique, cliométrie..
    JEL: A12 B25 B31 B41 N00
    Date: 2020
  11. By: Lennart Fernandes; Jacques Tempere
    Abstract: Empirical distributions of wealth and income can be reproduced using simplified agent-based models of economic interactions, analogous to microscopic collisions of gas particles. Building upon these models of freely interacting agents, we explore the effect of a segregated economic network in which interactions are restricted to those between agents of similar wealth. Agents on a 2D lattice undergo kinetic exchanges with their nearest neighbours, while continuously switching places to minimize local wealth differences. A spatial concentration of wealth leads to a steady state with increased global inequality and a magnified distinction between local and global measures of combatting poverty. Individual saving propensity proves ineffective in the segregated economy, while redistributive taxation transcends the spatial inhomogeneity and greatly reduces inequality. Adding fluctuations to the segregation dynamics, we observe a sharp phase transition to lower inequality at a critical temperature, accompanied by a sudden change in the distribution of the wealthy elite.
    Date: 2020–03
  12. By: Simon Dietz; Rick van der Ploeg; Armon Rezai; Frank Venmans
    Abstract: We show that several of the most important economic models of climate change produce climate dynamics inconsistent with the current crop of models in climate science. First, most economic models exhibit far too long a delay between an impulse of CO2 emissions and warming. Second, few economic models incorporate positive feedbacks in the carbon cycle, whereby carbon sinks remove less CO2 from the atmosphere, the more CO2 they have already removed cumulatively, and the higher is temperature. These inconsistencies affect economic prescriptions to abate CO2 emissions. Controlling for how the economy is represented, different climate models result in significantly different optimal CO2 emissions. A long delay between emissions and warming leads to optimal carbon prices that are too low and too much sensitivity of optimal carbon prices to the discount rate. Omitting positive carbon cycle feedbacks also leads to optimal carbon prices that are too low. We conclude it is important for policy purposes to bring economic models in line with the state of the art in climate science.
    Keywords: carbon cycle, carbon price, climate change, integrated assessment modelling, positive feedbacks, social cost of carbon
    JEL: Q54
    Date: 2020
  13. By: Jean-Philippe Berrou (LAM - Les Afriques dans le monde - CNRS - Centre National de la Recherche Scientifique); Dominique Darbon (Sciences Po Bordeaux, France); Anne Bekelynck (CEPED - UMR_D 196 - Centre population et développement - IRD - Institut de Recherche pour le Développement - UPD5 - Université Paris Descartes - Paris 5); Christian Bouquet (LAM - Les Afriques dans le monde - CNRS - Centre National de la Recherche Scientifique); Matthieu Clément (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); François Combarnous (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Eric Rougier (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Date: 2020
  14. By: Rogerio Silva Mattos (Universidade Federal de Juiz de Fora)
    Abstract: Advancing artificial Intelligence draws most of its power from the artificial neural network, a software technique that has successfully replicated some information processing functions of the human brain and the unconscious mind. Jobs are at risk to disappear because even the tacit knowledge typically used by humans to perform complex tasks is now amenable to computerization. The paper discusses implications of this technology for capitalism and jobs, concluding that a very long run transition to a jobless economy should not be discarded. Rising business models and new collaborative schemes provide clues for how things may unfold. A scenario in which society is close enough to full unemployment is analyzed and strategic paths to tackle the challenges involved are discussed. The analysis follows an eclectic approach, based on the Marxist theory of historical materialism and the job task model created by mainstream economists.
    Keywords: artificial intelligence,historical materialism,task model,neural networks,jobless society
    Date: 2019–01–01
  15. By: Ermanno Catullo (Research Department, Link Campus University, Rome, Italy); Mauro Gallegati (Department of Management, Università Politecnica delle Marche, Acona, Italy); Alberto Russo (Department of Management, Università Politecnica delle Marche, Ancona, Italy and Department of Economics, Universitat Jaume I, Castellón, Spain)
    Abstract: The aim of this paper is to investigate how different degrees of sophistication in agents’ behavioural rules may affect individual and macroeconomic performances. In particular, we analyze the effects of introducing into an agentbased macro model firms that are able to formulate effective sales forecasts by using machine learning. These techniques are able to provide predictions that are unbiased and present a certain degree of accuracy, especially in the case of a genetic algorithm. We observe that machine learning allows firms to increase profits, though this result in a declining wage share and a smaller long-run growth rate. Moreover, the predictive methods are able to formulate expectations that remain unbiased when shocks are not massive, thus providing firms with forecasting capabilities that to a certain extent may be consistent with the Lucas Critique.
    Keywords: agent-based model, machine learning, genetic algorithm, forecasting, policy shocks
    JEL: C63 D84 E32 E37
    Date: 2020
  16. By: Dimitri B. Papadimitriou; Michalis Nikiforos; Gennaro Zezza
    Abstract: The rapidly growing uncertainty about the potential global fallout from an emerging pandemic is occurring against a background in which there is evidence US corporate sector balance sheets are significantly overstretched, exhibiting a degree of fragility that, according to some measures, is unmatched in the postwar historical record. The US economy is vulnerable to a shock that could trigger a cascade of falling asset prices and private sector deleveraging, with severe consequences for both the real and financial sides of the economy.
    Date: 2020–03
  17. By: Hugo Gaillard (GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université); Thierry Jolivet (GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)
    Abstract: This article focuses on new regulation models of spirituality and religion at work. Thanks to a theoretical approach in a first time, we trace the contemporary injunctions to inclusion at work that we put into perspective with multidisciplinary studies on dispute (disputatio). In a second part, by a qualitative research, we profile the company displayed by his founder as emancipatory. This business case highlights the main points of the emancipatory firm as a new form of organization, freedom-form Company, inclusive, open to democratic debate, and falls into the religious and ethics rules-based firm's research. A model of emancipator firm is presented schematically, and the regulation potential of the spirituality and religion at work by disputatio.
    Abstract: Este artículo se aborda los nuevos modos de regulación del hecho religioso al trabajo. Mediante un enfoque conceptual en primer lugar, rastreemos los contemporáneas requerimientos a la inclusión nos situamos en perspectiva de trabajos pluridisciplinarios sobre la disputa (disputatio). Con un estudio cualitativo, tenemos el propósito del retrato de la compañía emancipadora presentada por su dirigente en la segunda parte. Este estudia de caso presente la compañía emancipadora como nueva forma de organización liberada, inclusiva y abierta el debate democrático, y se inscribe en la prolongación del trabajo sobre las empresas ideológicas. Un modelo esquemático de la compañía emancipadora se presentara siguiente, y discutimos las oportunidades en materia de regulación del hecho religioso al trabajo con la disputa.
    Abstract: Cet article s'intéresse aux nouveaux modes de régulation du fait religieux au travail. Grâce à une approche théorique dans un premier temps, nous retraçons les injonctions contemporaines à l'inclusion que nous mettons en perspectives de travaux pluridisciplinaires sur la dispute (disputatio). Via une étude qualitative, nous dressons le portrait de l'entreprise présentée par son dirigeant comme émancipatrice en deuxième partie. Cette étude de cas pose les traits saillants de l'entreprise émancipatrice comme nouvelle forme d'organisation, libérée, inclusive et ouverte au débat démocratique, et s'inscrit en prolongement des travaux sur les entreprises affinitaires. Un modèle de l'entreprise émancipatrice est présenté schématiquement, ainsi que les potentialités offertes en matière de régulation du fait religieux au travail par la dispute.
    Keywords: Spirituality and Religion at Work,inclusion,Disputatio,Religious & ethic rules-based companies,Hecho religioso al trabajo,inclusión,Disputa (Disputatio),empresas ideológicas,Fait religieux au travail,Inclusion,Dispute (Disputatio),Entreprises affinitaires
    Date: 2019
  18. By: Anastasios Xepapadeas
    Date: 2020–03
  19. By: Florence Palpacuer (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Amélie Seignour (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier)
    Date: 2019

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