nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2020‒08‒17
fifteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Comparing economic theories or: Pluralism in economics and the need for a comparative approach to scientific research programmes By Heise, Arne
  2. Women’s empowerment and economic development: a feminist critique of story telling practices in ‘Randomista' economics By Kabeer, Naila
  3. Updates of Empirical Estimates of Marxian Categories: The Philippines 1961-2012 By Victor S. Venida
  4. "The "Kansas City" Approach to Modern Money Theory" By L. Randall Wray
  6. Is “The General Law of Capitalist Accumulation” Still Valid? An Analysis Based on Direct and Indirect Marxian Effects By Bahçe, Serdal
  7. El cooperativismo agrario y su potencial para el desarrollo territorial: los casos de Chile y Uruguay By Adrián Rodríguez Miranda; Sofía Boza; Aracely Núñez; Mariana Rodríguez Vivas; Andrea Rengifo
  8. Fostering Sustainable Innovation through Creative Destruction Theory By Jackson, Emerson Abraham
  9. Contrat, contrat social et contrat psychologique By Yvon Pesqueux
  10. The Pandemics in Artificial Society: Agent-Based Model to Reflect Strategies on COVID-19 By Situngkir, Hokky; Lumbantobing, Andika Bernad
  11. The role of liquidity preference in a framework of endogenous money By Marco Missaglia; Alberto Botta
  12. Can the World Get Along Without Natural Resources? By Fix, Blair
  13. Structure coopérative, attentes des parties prenantes et dynamique responsable : l'approche d'une union de coopératives champenoise By Jean-Paul Méreaux; Jimmy Feige
  14. Assessing the impacts of COVID-19 on Myanmar’s economy: A Social Accounting Matrix (SAM) multiplier approach [in Burmese] By Diao, Xinshen; Aung, Nilar; Lwin, Wuit Yi; Zone, Phoo Pye; Nyunt, Khin Maung; Thurlow, James
  15. David Ricardo vs. Gottfried Haberler: When an Austrian mind matches an English classic mind. By Flavia G. Poinsot

  1. By: Heise, Arne
    Abstract: Pluralism in economics appears to be a double-edged sword: we need more than one theory to grasp and explain the entire economic world, yet a plurality of possible explanations undermines the aspiration of the economic discipline to provide 'objective knowledge' in the singular of the 'one world one truth' conception. Therefore, pluralism is often equated with relativism and obscurantism. In this article, I will explore both the demand for pluralism and the fear of relativism and obscurantism, scrutinising each position in order to evaluate their respective justification and devising a methodological proposal that may appease both the defender and the sceptic of economic pluralism.
    Keywords: Pluralism,Methodology,Paradigm
    JEL: A11 B40 B50 E11 E12 E13
    Date: 2020
  2. By: Kabeer, Naila
    Abstract: The 2019 Nobel Prize in economics was awarded to three scholars on the grounds that their pioneering use of randomized control trials (RCTs) was innovative methodologically and contributed to development policy and the emergence of a new development economics. Using a critical feminist lens, this article challenges that conclusion by interrogating the storytelling practices deployed by “randomista” economists through a critical reading of a widely cited essay by Esther Duflo, one of the 2019 Nobel recipients, on the relationship between women’s empowerment and economic development. The paper argues that the limitations of randomista economics have given rise to a particular way of thinking characterized by piecemeal analysis, ad hoc resort to theory, indifference to history and context, and methodological fundamentalism. It concludes that the randomista argument that broad-based economic development alone – without focused attention to women’s rights – will lead to gender equality has not been borne out by recent data.
    Keywords: empowerment; economic development; development
    JEL: J01
    Date: 2020–05–13
  3. By: Victor S. Venida (Economics Department, Ateneo de Manila University)
    Abstract: The economies of developing countries have a dualist structure in which feudal and capitalist modes coexist and interact. For the Philippines, this dualism is evident. This paper analyzes the Philippines’s economic structure through a theoretical framework that draws on a Marxian theory interpreted by Wolff (1977, 1979): the model of social disarticulation and the creation of relative surplus value. Adding on to estimates for 1961–2000 for further analysis, this paper updates the estimated Marxian categories for the Philippines using the Input-Output tables from 1961 to 2012 and the formal model used by Venida (2007, 2011). Results of the estimates show labor productivity improvements from 2000 to 2012, which point to the possibility that the Philippine economy could have begun to transition to further capitalist expansion.
    Keywords: input-output, labor productivity, Marxian theory, Philippines, relative surplus value
    JEL: D57 E11 E24 J24
    Date: 2020–07
  4. By: L. Randall Wray
    Abstract: Modern money theory (MMT) synthesizes several traditions from heterodox economics. Its focus is on describing monetary and fiscal operations in nations that issue a sovereign currency. As such, it applies Georg Friedrich Knapp's state money approach (chartalism), also adopted by John Maynard Keynes in his Treatise on Money. MMT emphasizes the difference between a sovereign currency issuer and a sovereign currency user with respect to issues such as fiscal and monetary policy space, ability to make all payments as they come due, credit worthiness, and insolvency. Following A. Mitchell Innes, however, MMT acknowledges some similarities between sovereign and nonsovereign issues of liabilities, and hence integrates a credit theory of money (or, "endogenous money theory," as it is usually termed by post-Keynesians) with state money theory. MMT uses this integration in policy analysis to address issues such as exchange rate regimes, full employment policy, financial and economic stability, and the current challenges facing modern economies: rising inequality, climate change, aging of the population, tendency toward secular stagnation, and uneven development. This paper will focus on the development of the "Kansas City" approach to MMT at the University of Missouri-Kansas City (UMKC) and the Levy Economics Institute of Bard College.
    Keywords: Modern Money Theory (MMT); Functional Finance; Chartalism; State Theory of Money; Sectoral Balances; Kansas City Approach; Job Guarantee; Sovereign Currency
    JEL: B1 B2 B52 E12 E5
  5. By: Emiliano Brancaccio (Universita' degli studi del Sannio); Fabiana De Cristofaro (Institute of Economics and EMbeDS Department, Scuola Superiore Sant’Anna, Pisa); Raffaele Giammetti (Department of Economics and Social Sciences, Universita' Politecnica delle Marche (Italy))
    Abstract: The so-called 'IMF-OECD consensus' suggests that labour market deregulations increase employment and reduce unemployment. We present a first meta-analysis on the subject based on MAER-NET guidelines. We examine the relation between Employment Protection Legislation indexes on one hand and employment and unemployment on the other. Among 53 academic papers published between 1990 and 2019 and contained in the Web of Science, only 28% supports the 'consensus' while the remaining 72% report results that are controversial (21%) or contrary to the 'consensus' (51%). The decline in 'consensus' is particularly evident in the last decade. Results are independent of the citations of the papers examined, the impact factor of the journals and the techniques used. A FAT-PET meta-regression model confirms these outcomes.
    Keywords: Labour market, Employment protection legislation, Unemployment, Meta-analysis, Meta-Regression
    JEL: B5 C83 E24 J48 K31
    Date: 2020–07
  6. By: Bahçe, Serdal
    Abstract: Marx asserts that capital accumulation has been sample accompanied by the accumulation of industrial reserve army and surplus population. Contemporarily, this expansion has been fed by two tendencies. First, the change in the technical composition of capital makes a part of waged employment redundant. Second, migration-induced-growth of labor force has enlarged the size of industrial reserve army. In this respect, labor force growth itself is a function of accumulation/growth rather than vice versa. We call the first tendency as “direct Marxian effect” while the second one is “indirect Marxian effect”. For a list of 60 countries, this study estimates the direct and indirect Marixan elasticity of industrial reserve army and its components to accumulation/growth. The results indicate that “the General Law of Capitalist Accumulation” holds for the majority of countries.
    Keywords: Industrial reserve army, capital accumulation, labor force, migration, indirect Marxian effect, direct Marxian effect
    JEL: B14 J21 J6
    Date: 2019
  7. By: Adrián Rodríguez Miranda (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Sofía Boza (Universidad de Chile. Facultad de Ciencias Agronómicas. Departamento de Gestión e Innovación Rural); Aracely Núñez (Universidad de Chile. Facultad de Ciencias Agronómicas. Departamento de Gestión e Innovación Rural); Mariana Rodríguez Vivas (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía); Andrea Rengifo (Universidad de Chile. Facultad de Ciencias Agronómicas. Departamento de Gestión e Innovación Rural)
    Abstract: The aim of this paper is to investigate the potential of agricultural cooperatives to promote rural territorial development in Latin America, analyzing the cases of Chile and Uruguay. The origins, background and current status of the agricultural cooperative movement in these countries are reviewed, within the context of the development of the agricultural production sector and the regulatory frameworks in each country. This research assumes an endogenous development approach. Our motivation comes from the need to better understand those modes and relations of production that generate greater local appropriation of wealth and, therefore, greater local control of its use and reinvestment. The article seeks to discuss the link between economic growth and development with equity, putting at the center of the discussion how to organize production and social relations to produce, and not only focus on ex post redistributive policies. This implies promoting forms of organization of production that are competitive in the markets but, at the same time, generate territorial development with a more equitable distribution of wealth. In that sense, the document seeks to reflect on the potential of the agricultural cooperative movement to promote strategies for the populations of rural and urban regions to become protagonists of their own development process.
    Keywords: cooperativism, agricultural cooperatives, endogenous development, territorial development, agriculture, Chile, Uruguay
    JEL: O13 O18 Q13
    Date: 2020–02
  8. By: Jackson, Emerson Abraham
    Abstract: The current information age is modelled on the advancement of innovative mindset of creative thinkers, championed through means associated with transformative technologies embodied on events like, high speed internet and payment system, thereby making it possible for transactions to be dealt with almost instantaneously. Such developments are essentially vital, given its prospect for championing growth rate and dynamism in the world economy and also, the need to ensure living conditions are adequately satisfied, particularly in the direction of the Sustainable Development Goals (SDG) earmarked for full implementation in the year 2030. The concept of innovation is widely used in all walks of life - the effort of Schumpeter’s paradoxical term, “creative destruction” became highly prominent in the 1950s, which many economists in recent time have endeavoured to linked with free market economics (Cozzi and Galli, 2019; Benigno and Fornaro, 2018). Creative destruction as proposed by Schumpeter, and also explained by Alm and Cox (Online) is essentially facts about capitalism, which is thought to be a shorthand description of free market’s messy way of delivering progress.
    Keywords: Creative Destruction; Innovation; Development Economics; Decent Work; Sustainable Development Goals
    JEL: O3 O31 O32 O33
    Date: 2020–02–17
  9. By: Yvon Pesqueux (EESD - Equipe en émergence sécurité défense - CNAM - Conservatoire National des Arts et Métiers [CNAM])
    Abstract: Après une introduction qui positionne la notion de contrat, ce texte est organisé de la manière suivante : quelques précisions sur la notion de contrat ; la notion d'agence ; Don, échange et association (le don comme dépassement de l'échange et de la tension « altruisme-égoïsme » (ou la dimension violente du contrat), l'échange (ou la dimension paisible du contrat), contrat et société civile : la liberté d'association (ou la dimension politique du contrat)) ; les contrats « à épithète » (la déclinaison juridique et utilitaro-fonctionnaliste du contrat, la déclinaison politique (les politiques contractuelles), la déclinaison financière et le contrat à terme, la déclinaison économique dans le cadre de la micro-économie, la déclinaison organisationnelle et la notion d'objectif) ; le contrat social ; le contrat psychologique ; conclusion (la comparaison de l'anthropologie du sujet dans le contrat social et dans le contrat psychologique, la comparaison de l'anthropologie du contrat dans le contrat social et dans le contrat psychologique).
    Date: 2020–08–03
  10. By: Situngkir, Hokky; Lumbantobing, Andika Bernad
    Abstract: Various social policies and strategies have been deliberated and used within many countries to handle the COVID-19 pandemic. Some of those basic ideas are strongly related to the understanding of human social interactions and the nature of disease transmission and spread. In this paper, we present an agent-based approach to model epidemiological phenomena as well as the interventions upon it. We elaborate on micro-social structures such as social-psychological factors and distributed ruling behaviors to grow an artificial society where the interactions among agents may exhibit the spreading of the virus. Capturing policies and strategies during the pandemic, four types of intervention are also applied in society. Emerged macro-properties of epidemics are delivered from sets of simulations, lead to comparisons between each policy/strategy’s effectivity.
    Keywords: COVID-19, coronavirus disease, policy, pandemic, social simulations, artificial society, agent-based modeling.
    JEL: C9 C99 H89 I1 I18 R0 Z18
    Date: 2020–07–26
  11. By: Marco Missaglia (University of Pavia (IT)); Alberto Botta
    Abstract: In this paper we build a simple, almost pedagogical, Keynesian model about the role of liquidity preference in the determination of economic performance. We assume a world of endogenous money, where the banking system is able to fix the interest rate at a level of its own willing. Even in this framework, we show that the Keynesian theory of liquidity preference, while obviously not constituting anymore a theory for the determination of the interest rate, continues to be a fundamental piece of theory for the determination of the level and evolution of aggregate income over time, both in the short and in the medium run. However powerful, the banking system and monetary authorities are not the deus ex-machina of our economies and financial markets are likely to exert a permanent influence on our economic destiny.
    Keywords: Liquidity preference, endogenous money, finance dominance
    JEL: C62 E12 E44
    Date: 2020–07
  12. By: Fix, Blair (York University)
    Abstract: Neoclassical economists fundamentally misunderstand the role of natural resources in the economy. I discuss here the source of this misunderstanding, and the ways we can better understand the role of energy to human societies.
    Date: 2020–07–11
  13. By: Jean-Paul Méreaux (URCA - Université de Reims Champagne-Ardenne); Jimmy Feige (REGARDS - Recherches en Économie Gestion AgroRessources Durabilité Santé- EA 6292 - URCA - Université de Reims Champagne-Ardenne - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne, IUT de Troyes - URCA - Université de Reims Champagne-Ardenne)
    Abstract: A cooperative union, which has its own brand of champagne, wants to develop a truly partnership model. Henceforth, its particular structuring based on a triptych: union of cooperatives / member cooperatives / adherents of member cooperatives involves rethinking relations between its various stakeholders. In a context of increased competition, it's necessary to better align their interest in order to maintain the position of third champagne producer and to improve it. The behavior of Union members change. That's why the expectations of direct and indirect members should be more precisely analyzed through the approach of the presidents of cooperatives. A research-intervention is developed from July 2015. In this article, the results relate to expectations expressed by its member cooperatives over the period from March 2016 to September 2017. It's also question of the approach initiated to associate them with the development of the activities of the union. The results show that the research process based on co-construction implemented in this study is original and has created new links with member cooperatives.
    Abstract: Une union de coopératives, détentrice d'une marque de champagne, souhaite davantage évoluer vers un modèle pleinement partenarial. Sa structuration particulière autour d'un triptyque : union de coopératives/coopératives adhérentes/adhérents des coopératives adhérentes implique désormais de repenser les relations entre ses différentes parties pre-nantes. Ses relations se doivent d'être plus resserrées compte tenu d'une concurrence accrue , susceptible de remettre en cause la durabilité du modèle qui a permis à cette union de devenir le 3ème producteur mondial dans le secteur du champagne. Parce que les com-portements des adhérents changent, il s'agit alors d'analyser plus finement les attentes des adhérents directes et indirectes via les présidents de coopératives. Dans cet article, nous restituons les enseignements d'une recherche-intervention construite dès juillet 2015 et réalisée de mars 2016 à septembre 2017 sur les attentes exprimées par ses coopératives adhérentes et sur la démarche initiée pour les associer au développement des activités de l'union. Les résultats montrent que le processus mis en oeuvre dans le cadre de cette étude dans le cadre d'une co-construction est original et a permis de tisser de nouveaux liens avec les coopératives adhérentes.
    Keywords: Cooperative Union,Relations with its members,Partnership model,Research intervention,Champagne sector,Modèle parte-narial,Recherche intervention.,Relations avec ses adhérents,Secteur Champagne,Union de Coopératives
    Date: 2020–06–01
  14. By: Diao, Xinshen; Aung, Nilar; Lwin, Wuit Yi; Zone, Phoo Pye; Nyunt, Khin Maung; Thurlow, James
    Keywords: MYANMAR, BURMA, SOUTHEAST ASIA, ASIA, Coronavirus, coronavirus disease, Coronavirinae, agriculture, service industry, secondary sector, policies, tourism, mining, economic impact, trade, remittances, agrifood systems, gross national product, Covid-19, SAM multipliers, Social Accounting Matrix (SAM), lockdown
    Date: 2020
  15. By: Flavia G. Poinsot
    Abstract: In many textbooks of international trade we read that the theory of comparative advantage, of Ricardo, determines its relative prices in function of the labor-cost theory. This approach, actually, emerges with Haberler by 1930s. For Haberler, the Ricardo’s theory of comparative advantage is robust, but not the labor-cost doctrine which, he assumes, Ricardo applies. Haberler, then, reformulates the theory from the Austrian outlook which rejects the classical labor theory of value. The process, epistemologically speaking, resembles that of a Lakatosian “research program”, because while the hard core, the theory of comparative advantage, does not change, the assumptions and the labor-cost theory are eliminated. However, would Ricardo agree with Haberler in that he based the theory of comparative advantage in the labor-cost hypothesis? And, why Haberler thinks, without doubt, that Ricardo adheres to the labor-cost theory? This paper is an attempt to answer these questions.
    Keywords: David Ricardo, Gottfried Haberler, theory of value, theory of comparative advantage, Austrian school of thoughts, epistemology
    JEL: B31 B53 B25 B12 F10
    Date: 2019–11

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