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on Heterodox Microeconomics |
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Issue of 2020‒05‒18
thirteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Mariolis, Theodore; Veltsistas, Panagiotis |
| Abstract: | Using input-output data from the World Input-Output Database (172 Symmetric Input-Output Tables of 43 countries, spanning the period 2000-2014), this paper estimates the degree and rank of Kalman controllability of the relevant Sraffian price systems. The findings suggest that: (i) the degree of controllability is in the range of 10^(–21) to 10^(–18); (ii) for a tolerance of 10^(–4) (of 10^(–2)), the relative numerical rank of controllability is in the range of 7% to 18% (of 4% to 9%); and, therefore, (iii) the price systems are almost uncontrollable. These findings also explain the specific shape features of the empirical price-wage-profit rate curves, which are at the heart of capital theory and, thus, show that the Sraffian theory is not only the most general one but also provides a sound empirical basis. |
| Keywords: | Almost uncontrollable system; Skew characteristic value distribution; Sraffian theory |
| JEL: | B51 C32 C67 D46 D57 |
| Date: | 2020–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:99648&r=all |
| By: | Claudius Graebner (Institute for Socio-Economics, University of Duisburg-Essen, Germany; Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria); Anna Hornykewycz (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria) |
| Abstract: | The paper studies the relevance of product heterogeneity for innovation dynamics using an agent-based model. The vantage point is a short a review on the empirical relevance of capability accumulation for innovation processes and an assessment of how these processes are modelled theoretically in evolutionary micro and macroeconomic models. This shows that the macroeconomic literature so far has focused on process innovations. To facilitate the consideration of empirical and microeconomic insights on product innovation in macroeconomic models, a simple agent-based model, which may later serve as an innovation module in macroeconomic models, is introduced. Following up on recent empirical results, products in the model are heterogeneous in terms of their complexity and differ in their relatedness to each other. The model is used to study theoretical implications of different topological structures underlying product relatedness by conducting simulations with different ‘product spaces’. The analysis suggests that the topological structure of the product space, the assumed relationship between product complexity and centrality as well as the relevance of product complexity in price setting dynamics have significant but nontrivial implications and deserve further attention in evolutionary macroeconomics. To this end, the model presented here may serve as a first step towards a module to be integrated in such a more comprehensive model framework. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:ico:wpaper:108&r=all |
| By: | Panagiotis Iliopoulos; Giorgos Galanis; Ashok Kumar; Lilit Popoyan |
| Abstract: | Power is one of the key components in understanding and analyzing global production and is central to the analytical frameworks of both GVCs and GPNs. By focusing on firms' power within GPNs, we are able to draw a novel analytical link between the governance structures of GVCs and network configuration presented in recent versions of GPNs. Using global input-output data, we show that the network structure of global production helps determine the distribution of power among firms in different economic sectors and, consequently, it influences the governance structures of supply networks. More specifically, we find a very high correlation between the distribution of profits and a sector's position in global production, captured by its (total strength) centrality. Based on this, we are able to provide a quantitative measure of power within global production and its governance structures. |
| Keywords: | Global production networks; global value chains; power relations; network theory. |
| Date: | 2020–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2020/12&r=all |
| By: | Servaas Storm (Delft University of Technology) |
| Abstract: | Questions about the decline of Social democracy continue to excite wide interest, even in the era of Covid-19. This paper takes a fresh look at topic. It argues that social democratic politics faces a fundamental dilemma: short-term practical relevance requires it to accept, at least partly, the very socio-economic conditions which it purports to change in the longer run. Bhaduri’s (1993) essay which analyzes social democracy’s attempts to navigate this dilemma by means of ‘a nationalization of consumption’ and Keynesian demand management, was written before the rise of New (‘Third Way’) Labor and before the Great Financial Crisis of 2007-8. This paper provides an update, arguing that New Labor’s attempt to rescue ‘welfare capitalism’ entailed a new solution to the dilemma facing social democracy based on an expansion of employment, i.e. an all-out emphasis on “jobs, jobs, jobs”. The flip-side (or social cost) of the emphasis on job growth has been a stagnation of productivity growth—which, in turn, has put the ‘welfare state’ under increasing pressure of fiscal austerity. The popular discontent and rise of ‘populist’ political parties is closely related to the failure of New Labor to navigate social democracy’s dilemma. |
| Keywords: | social democracy, wage-led growth, profit-led growth, NAIRU economics, Europe 1945- , New Labor. |
| JEL: | E6 E10 E12 N10 P11 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:inetwp122&r=all |
| By: | Jean-Michel Servet (IHEID - Institut de hautes études internationales et du développement - University of Geneva [Switzerland]); Bruno Tinel (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | One-sentence summary : Randomized controlled trials by behavioural economists pretend to be pragmatic and only interested in what really works to solve practical problems but in reality they have notorious normative and ideological aspects. Key points: Behavioural RCTs ignore contexts and composition effects and reflect the biases of those who perform assessments. Behavioural randomizers presume without demonstrating that market exchanges are the most effective form of regulation for societies in all situations of social life. The positive or negative incentives ("nudges") offered by behavioural economics aim to normalize the behaviour of consumers, users, employees or small/independent producers. They are part of a set of power devices by which individual behaviours are shaped and forced, without their knowledge, to conform to dominant class interests. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-02562758&r=all |
| By: | Louison Cahen-Fourot (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique); Nelo Magalhães (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - UPD7 - Université Paris Diderot - Paris 7) |
| Abstract: | This paper aims at integrating macroeconomic and institutional analyses of long run dynamics of capitalism with material flow analysis. We investigate the links between accumulation and socio-metabolic regimes by studying French capitalism from a material perspective since 1948. We characterize its social metabolism both in production-and consumption-based approaches. We show that the periodization of accumulation regimes in terms of Fordism and Neoliberalism translates into material terms. The offshore materiality of Neoliberalism partly substitutes for and partly complements the more domestic material-ity inherited from Fordism. The transition phase between the two socio-metabolic regimes clearly corresponds to the emergence of the offshoring-financialization nexus of French capitalism indicating the shift from the fordist accumulation regime to the neoliberal accumulation regime. Acknowledging that socio-metabolic regimes have their own logic, we highlight strong inter-linkages between accumulation and material dynamics and discuss how materials may be instrumental in shaping accumulation regimes. This work therefore illustrates the relevance of combining institutional macroeconomics with methods and approaches derived from Ecological Economics. |
| Keywords: | Material Flow Analysis,Material footprint,Socio-metabolic regime,Financialization,Offshoring,Accumulation regime |
| Date: | 2020–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02554906&r=all |
| By: | Roberto Mauricio Sánchez Torres; ergio Chaparro Hernández |
| Abstract: | Este texto analiza el potencial impacto del coronavirus y las medidas para mitigarlo sobre la pobreza en las 13 principales ciudades de Colombia producto de la parálisis de la economía informal. Con base en una simulación basada en la Gran Encuesta Integrada de Hogares, se estima que, aún en presencia de las medidas tomadas por el gobierno nacional para apoyar a la población de menores ingresos, la tasa de pobreza pasaría de 18% a 32% y la pobreza extrema de 4,5% a 16,7%, como consecuencia de la pérdida de ingresos laborales en el sector informal de alrededor de 4,1 millones de personas. A partir de simular los incrementos en las transferencias que serían necesarios para evitar un aumento de la pobreza, se discuten los méritos de algunas propuestas de política planteadas por expertos, instituciones académicas y organizaciones de la sociedad civil. El artículo propone la necesidad de adoptar un esquema de renta básica de emergencia como primer componente de un piso de protección social basado en derechos, el cual debería mantenerse más allá de la emergencia como un aprendizaje esencial de esta crisis. *** This paper analyzes the potential impact of COVID-19 and contention measures on poverty in the 13 main cities of Colombia as a result of the paralysis of the informal economy. Drawing on a simulation with data from household surveys (GEIH), it is estimated that, despite current governmental emergency transfers to support households, poverty rate has increased from 18% to 32% and extreme poverty from 4.5% to 16.7%, as a consequence of a suddenly interruption of labor income earning of around 4.1 million informal workers. Based on an estimation of the amount of monetary transfers required to avoid any increasement in poverty, the paper discusses the merits of some policy proposals made by experts, academic institutions and civil society organizations. The article argues for the need to adopt an emergency basic income scheme as the first component of a rights-based social protection floor which should remain in place beyond the public health emergency, as an essential learning from this crisis. |
| Keywords: | Coronavirus, Informalidad laboral, pobreza, protección social |
| Date: | 2020–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:col:000426:018148&r=all |
| By: | Giovanni Dosi; Andrea Roventini; Emanuele Russo |
| Abstract: | In this paper, we study the effects of industrial policies on international convergence using a multi-country agent-based model which builds upon Dosi et al. (2019b). The model features a group of microfounded economies, with evolving industries, populated by heterogeneous firms that compete in international markets. In each country, technological change is driven by firms' activities of search and innovation, while aggregate demand formation and distribution follows Keynesian dynamics. Interactions among countries take place via trade flows and international technological imitation. We employ the model to assess the different strategies that laggard countries can adopt to catch up with leaders: market-friendly policies; industrial policies targeting the development of firms' capabilities and R&D investments, as well as trade restrictions for infant industry protection; protectionist policies focusing on tariffs only. We find that markets cannot do the magic: in absence of government interventions, laggards will continue to fall behind. On the contrary, industrial policies can successfully drive international convergence among leaders and laggards, while protectionism alone is not necessary to support catching up and countries get stuck in a sort of middle-income trap. Finally, in a global trade war, where developed economies impose retaliatory tariffs, both laggards and leaders are worse off and world productivity growth slows down. |
| Keywords: | Endogenous growth; catching up; technology-gaps; industrial policies; agent-based models. |
| Date: | 2020–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2020/10&r=all |
| By: | Yamamura, Eiji |
| Abstract: | This study examines how parents’ smoking behavior is transmitted to their children, focusing on the role of gender identity. Through an original survey, respondents were asked about their parents’ smoking behavior when the respondents had been primary-school students. Findings of a regression analysis revealed that the respondents were more likely to smoke if the parent of the same gender smoked frequently. Furthermore, a mother was less likely to smoke if she had a daughter, while a father was more likely to smoke if he had a son. |
| Keywords: | Transmission mechanism, Smoking behavior, Gender identity, Gender difference, Parents–Children Gender Matches |
| JEL: | I12 J13 J16 |
| Date: | 2020–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:99988&r=all |
| By: | Joseph Halevi (International University College of Turin); Peter Kriesler (University of New South Wales); Duncan Foley (New School for Social Research); Thomas Ferguson (Institute for New Economic Thinking) |
| Abstract: | This Working Paper presents three separate comments on Servaas Storm’s “The Economics and Politics of Social Democracy: A Reconsideration”. The first is by Joseph Halevi and Peter Kriesler; the second is by Duncan Foley; and the third is by Thomas Ferguson. |
| Keywords: | social democracy, wage-led growth, profit-led growth, NAIRU economics, Europe 1945- , New Labor. |
| JEL: | E6 E10 E12 N10 P11 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:inetwp123&r=all |
| By: | Lukas Schlogl |
| Abstract: | This paper traces a set of major trends and future scenarios in global structural change. It argues that across multiple domains of change, developing economies are facing novel constellations of lateness and prematurity in technological and economic development. The paper explores these novel constellations in employment and value added, global trade, and technological upgrading. |
| Keywords: | technological change, structural change, Employment, catch-up development, future scenario, Developing countries |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2020-25&r=all |
| By: | Hidrobo, Melissa; Kumar, Neha; Palermo, Tia; Peterman, Amber; Roy, Shalini |
| Abstract: | As social protection programs and systems adapt to mitigate against the COVID-19 crisis, gender considerations are likely to be overlooked in an urgent effort to save lives and provide critical economic support. Yet, past research and learning indicates that small adaptations to make program design and implementation more gender-sensitive may result in overall and equality-related gains. We summarize some of these considerations for LMICs across five areas: 1) Adapting existing schemes and social protection modality choice, 2) targeting, 3) benefit level and frequency, 4) delivery mechanisms and operational features, and 5) complementary programming. It is our hope that COVID-19 will be an opportunity to address, and not exacerbate, pre-existing gender inequalities and lay the groundwork for more gender-sensitive social protection programming in LMICs beyond the crisis, building toward the wellbeing of societies as a whole. |
| Keywords: | WORLD; Coronavirus; coronavirus disease; Coronavirinae; gender; women; social protection; developing countries; health; Covid-19 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:issbrf:april2020&r=all |
| By: | Divya Vaid |
| Abstract: | The ethnographic approach has much to contribute to our understanding of social mobility. This paper provides a discussion on ethnography as a method and approach to writing and description, and reviews some ways in which themes related to social mobility in the developing world have been explored ethnographically. It discusses the themes that these studies cover in terms of two frames: the social construction of mobility and the fields within which mobility plays out. |
| Keywords: | Ethnography, Inequality, Migration, Mobility, Stratification |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2020-14&r=all |