nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2020‒10‒05
fourteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. What are we measuring when we measure decision-making? Evidence from the Rural Philippines By Jarvis, Forest; Johnson, Hillary; Liaqat, Sundas; Donald, Aletheia; Perova, Elizaveta; Castro-Zarzur, Rosa
  2. An overview of gender inequality in Latin America from a political economy perspective By Quinonez, Pablo; Maldonado-Erazo, Claudia
  3. The emergence of core-periphery structures in the European Union: A complexity perspective By Gräbner, Claudius; Hafele, Jakob
  4. Inversion-free Leontief inverse: statistical regularities in input-output analysis from partial information By Silvia Bartolucci; Fabio Caccioli; Francesco Caravelli; Pierpaolo Vivo
  5. Constructing a 2016/17 Social Accounting Matrix (SAM) for Uganda By Nhi Tran; Elizabeth L. Roos; Wilson Asiimwe; Pricilla Kisakye
  6. An ever-looser union? Juxtaposing accumulation and agglomeration in the context of surveillance capitalism By Kleinod, Sonja; Klüh, Ulrich
  7. Member Participation and Satisfaction in Agricultural Cooperatives By Kashyap, Dipanjan; Bhuyan, Sanjib
  8. Growing Like China: Firm Performance and Global Production Line Position By Davin Chor; Kalina B. Manova
  9. Gender Empowerment, Supply-Chain Linkages and Foreign Direct Investment: Evidence on Bangladesh By Hiau-Looi Kee; Ana Margarida Fernandes
  10. Wirtschaft, Technik und der herausfordernde Anspruch des Klimawandels - Eine philosophische Betrachtung zu den Wurzeln des anthropogenen Klimawandels By Beilharz, Hans-Jörg
  11. Network geometry and market instability By Areejit Samal; Hirdesh Kumar Pharasi; Sarath Jyotsna Ramaia; Harish Kannan; Emil Saucan; J\"urgen Jost; Anirban Chakraborti
  12. How to Lockdown an Economy: an Input Output Analysis of the Italian Case By Paolo Manasse; G. Alfredo Minerva; Roberto Patuelli; Lorenzo Zirulia
  13. Distribución funcional del ingreso inducido por el comercio entre los países de Centroamérica, México y la República Dominicana By Torres González, Luis Daniel; Zafra García, Krista
  14. Programas de trabajos públicos para la protección y la resistencia al clima: teoría de cambio y su evidencia en países de baja renta By Rodolfo Beazley; Anna McCord; Ana Solórzano

  1. By: Jarvis, Forest; Johnson, Hillary; Liaqat, Sundas; Donald, Aletheia; Perova, Elizaveta; Castro-Zarzur, Rosa
    Abstract: Our detailed survey of farming households in the rural Philippines reveals widespread and systemic spousal disagreement on decision-making, a phenomenon reflected in similar surveys throughout the world. Using original qualitative and quantitative data, we explore the following research questions: first, what are the drivers of disagreement in spousal reports of decision-making? Second, we explore the empowerment angle by asking what is the relationship between decision-making and empowerment? The measurement of women’s empowerment in agriculture and the household has traditionally used women’s self-reported participation in decision-making as an indicator of household power, and joint decision-making is often used as a targeted outcome in development efforts. However, spousal surveys across a variety of contexts have revealed high levels of disagreement between spouses about decision-making authority. Although women’s decision-making power has been associated in some studies with better household outcomes, the conceptual and evidential links between decision-making and empowerment have been called into question. Our work adds to the literature on the measurement of decision-making and disagreement, and on the links between decision-making power and empowerment writ large. Our quantitative analysis uses data from a spousal survey of agricultural households in the rural Philippines, primarily on the island of Mindanao. Part of a larger study on land tenure, respondents were asked about decisions in a variety of agricultural domains, as well as household matters. We capture respondents’ agency through the locus of control and Relative Autonomy Index (RAI) scales. Qualitative data come from a follow-up round of semi-structured interviews focusing on the decision-making process. We exploit the detailed decision-making questionnaire to test for different drivers of decision-making, namely differing interpretations of decision-making, differing frames of reference, and social desirability bias. To test for the relationship between decision-making and empowerment, we regress various aspects of decision-making power on the respondents’ motivational autonomy. Our follow-on qualitative interviews provide more detail on differing interpretations of decision-making, and the social norms regarding decision-making in our sample population. We find evidence that differing gendered interpretations of what it means to be a decision maker are a driver of spousal disagreement on decision-making, with women more likely to report themselves as joint decision-makers as long as they are included in a conversation. Qualitative work suggests a strong social norm towards a consultative decision-making process, further obscuring the differences between interpretations of sole and joint decision-making and increasing measurement error. We also find limited evidence of social desirability bias as a driver of measurement error. We find the being a decision-maker is not associated with higher overall autonomy. However, the ability to make one’s own personal decisions, and the level of input on decisions, are well-correlated with motivational autonomy. Our findings indicate that simple binary outcomes of sole and joint decision-making obscure important elements of the decision process, suggesting the need for a more nuanced and context-specific measurement of process and intent if it is to be used as an indicator or outcome.
    Keywords: Community/Rural/Urban Development
    Date: 2020–09–16
  2. By: Quinonez, Pablo; Maldonado-Erazo, Claudia
    Abstract: This article explains what shapes the gender dimension of economic inequalities in Latin America from the perspective of political economy. In order to do so, we follow Frank Stilwell's (2012) framework and use the model of the circuit of capital proposed by Marx and situate gender in the sequential conditions for capital accumulation. In this context, gender inequalities are seen as functional to the accumulation of capital since they help meeting three of the requirements for its expansion, namely the reproduction of labor power, the production of surplus value, and the realization of surplus value. Therefore, we conclude that non-coordinated efforts, claims for inclusion, and the invocation of specific differences are far from solving the problem of gender inequality if they are not part of a broader effort that understands the structural nature of the issue. Additionally, we emphasize the specific conditions that differentiate the situation of women in this region from elsewhere, as well as the cultural and institutional characteristics that have contributed to the relegation of women in Latin America over time.
    Keywords: capital; gender; inequality; Latin America; Stilwell
    JEL: B51 B54 J16
    Date: 2020
  3. By: Gräbner, Claudius; Hafele, Jakob
    Abstract: This paper investigates the emergence of polarisation patterns in the EU during the last 60 years from a structuralist and complexity economics perspective. Based on the results, feasible opportunities for EU policy-making, which aim to counteract a tendency of polarization, are delineated. The study comprises of a historical analysis of the politico-economic events during this time and a complementary quantitative analysis of the European trade network. The results suggest that trade in the Eurozone is unequal at the expense of the peripheries and follows a pattern of "unequal technological exchange". The paper also assesses the usefulness of country taxonomies such as 'cores' and 'peripheries' for identifying the roots of polarization patterns. While it generally affirms the relevance of structural dependencies, and confirms the epistemic usefulness of country taxonomies, it also highlights three challenges - the challenges of dynamics, of ambiguity and granularity - that any such taxonomy necessarily faces, and which must be dealt with explicitly in any structuralist analysis using such taxonomies.
    Date: 2020
  4. By: Silvia Bartolucci; Fabio Caccioli; Francesco Caravelli; Pierpaolo Vivo
    Abstract: We present a baseline stochastic framework for assessing inter-sectorial relationships in a generic economy. We show that - irrespective of the specific features of the technology matrix for a given country or a particular year - the Leontief multipliers (and any upstreamness/downstreamness indicator computed from the Leontief inverse matrix) follow a universal pattern, which we characterize analytically. We formulate a universal benchmark to assess the structural inter-dependence of sectors in a generic economy. Several empirical results on World Input-Output Database (WIOD, 2013 Release) are presented that corroborate our findings.
    Date: 2020–09
  5. By: Nhi Tran; Elizabeth L. Roos; Wilson Asiimwe; Pricilla Kisakye
    Abstract: A comprehensive analysis of the economic and social impacts of policy or economic changes on an economy requires an analytical framework which captures the complex inter-linkages between different agents in the economy. The social accounting matrix (SAM) is such a framework. A SAM is a comprehensive representation of the macro and meso economic accounts of a country, which captures transactions between all economic agents in the country via the factor and product markets. These agents include the different domestic industries, household groups, enterprises and governments. Thus, a SAM clearly shows the linkage between income distribution and economic structure in an economy. SAMs are also used as a direct input into a range of models, especially Computable General Equilibrium (CGE) models. This paper and accompanying excel workbook describe the construction of a SAM for Uganda for the 2016/17 financial year. We discuss the structure of the SAM as the various sources of data. The data sources include the Supply Use Table for 2016/17, Government Financial Statistics (GFS), Ugandan National Household Survey, Balance of Payments and financial data. The development of the SAM is completed in 2 steps. First a Macro SAM is developed. This Macro SAM is then disaggregated further by disaggregating the activities and commodities accounts, labour income and expenditure, and the household accounts. We do not present the Full SUT and SAM as part of this paper. To access the Full SUT, contact the Ugandan Bureau of Statistics (UBOS), and to access the Full SAM, contact the Ministry of Finance, Planning and Economic Development (MoFPED).
    Keywords: Social Accounting Matrix, Uganda, CGE modelling
    JEL: C81 C82 O55
    Date: 2019–08
  6. By: Kleinod, Sonja; Klüh, Ulrich
    Abstract: The article explores regional policy issues at the nexus of economic geography and the recent academic literature on the political economy of digitalization. The objective is to blend these two areas of research to derive a first set of preliminary policy implications for so called "Smart Region" strategies. First, we document and analyze the finding that digitalization and, more generally, technological progress based on information and communication technologies represents a risk rather than an opportunity for many regions. Against the backdrop of the role of human capital accumulation in this process, "Smart Region" strategies should re-focus their attention on the settlement and development of "digitally competent" human capital. Second, we summarize key findings from studies that deal with the capitalist accumulation regime emerging in the course of digital change. This regime, often referred to as "platform capitalism" or "surveillance capitalism", appears to be antagonistic what is considered an integral and functional regional economy. Against this background, regions should meet calls for a rapid integration into this regime with a good deal of skepticism. Similarly, they should be careful not to embrace "smart" initiatives overhasty. Instead, they should develop their own definition of digital literacy and consciously incorporate alternatives to platform capitalism in their digital strategies. Attracting digitally competent human capital can support such an approach, especially if the respective initiatives are directed towards the public, educational and non-profit sectors.
    Keywords: Digitalization,Surveillance Capitalism,Platform Economy,Labour Markets,Regional Development,Smart Cities,Smart Regions,Economic Geography,Agglomeration,Human Capital
    JEL: H4 J24 J45 J48 J61 L16 O3 P1 R1 R58
    Date: 2020
  7. By: Kashyap, Dipanjan; Bhuyan, Sanjib
    Keywords: Agribusiness, Community/Rural/Urban Development, Marketing
    Date: 2020–07
  8. By: Davin Chor; Kalina B. Manova
    Abstract: Global value chains have fundamentally transformed international trade and development in recent decades. We use matched firm-level customs and manufacturing survey data, together with Input-Output tables for China, to examine how Chinese firms position themselves in global production lines and how this evolves with productivity and performance over the firm lifecycle. We document a sharp rise in the upstreamness of imports, stable positioning of exports, and rapid expansion in production stages conducted in China over the 1992-2014 period, both in the aggregate and within firms over time. Firms span more stages as they grow more productive, bigger and more experienced. This is accompanied by a rise in input purchases, value added in production, and fixed cost levels and shares. It is also associated with higher pro fits though not with changing profit margins. We rationalize these patterns with a stylized model of the firm lifecycle with complementarity between the scale of production and the scope of stages performed.
    Keywords: global value chains, production line position, upstreamness, firm heterogeneity, firm lifecycle, China
    JEL: F10 F14 F23 L23 L24 L25
    Date: 2020
  9. By: Hiau-Looi Kee; Ana Margarida Fernandes
    Abstract: This paper studies foreign direct investment (FDI) spillovers on gender labor market practices of domestic firms, based on a unique firm-to-firm dataset of Bangladesh’s textiles and garment sectors. We look at the female employment of domestic firms that are directly and indirectly related to the FDI firms through supply chain linkages. These domestic firms are either the local suppliers or customers of FDI firms or they share local suppliers and customers with the FDI firms. The estimates show that domestic firms related to FDI firms have significantly more female administrative workers, but not necessarily female non-administrative workers, due to more firm-to-firm interactions participated by the former.
    Keywords: foreign direct investment, women, female labor force participation, supply chain linkages, Bangladesh
    JEL: F1 F2 F6 J2
    Date: 2020
  10. By: Beilharz, Hans-Jörg
    Abstract: Two important factors influencing anthropogenic climate change are growth in technology and economic activity. By using a philosophical approach, we look at the essences of technology and economics to deeper understand the roots of climate change. According to Heidegger, "modern technology" is a mode of revealing truth by challenging nature. Considering the etymology of economics, we find that the origins of economics lie in supplying and caring. Although their essences are different, the common property of modern technology and economics is the challenging characteristic of their dynamics. Over time, they challenge nature and humans with rising intensity. The dynamics unfolds within a "demand" on us, the humans. Because anthropogenic climate change is a consequence of the increasing intensity in the dynamics of economics and technology, it is also related to a demand we try to satisfy. One possibility to emancipate from the dynamics and to overcome the dangers of climate change is to "hear" the demand and to get into a dialogue about it.
    Keywords: technological and economic growth,climate change
    JEL: A12 Q54
    Date: 2020
  11. By: Areejit Samal; Hirdesh Kumar Pharasi; Sarath Jyotsna Ramaia; Harish Kannan; Emil Saucan; J\"urgen Jost; Anirban Chakraborti
    Abstract: The complexity of financial markets arise from the strategic interactions among agents trading stocks, which manifest in the form of vibrant correlation patterns among stock prices. Over the past few decades, complex financial markets have often been represented as networks whose interacting pairs of nodes are stocks, connected by edges that signify the correlation strengths. However, we often have interactions that occur in groups of three or more nodes, and these cannot be described simply by pairwise interactions but we also need to take the relations between these interactions into account. Only recently, researchers have started devoting attention to the higher-order architecture of complex financial systems, that can significantly enhance our ability to estimate systemic risk as well as measure the robustness of financial systems in terms of market efficiency. Geometry-inspired network measures, such as the Ollivier-Ricci curvature and Forman-Ricci curvature, can be used to capture the network fragility and continuously monitor financial dynamics. Here, we explore the utility of such discrete Ricci-type curvatures in characterizing the structure of financial systems, and further, evaluate them as generic indicators of the market instability. For this purpose, we examine the daily returns from a set of stocks comprising the USA S&P-500 and the Japanese Nikkei-225 over a 32-year period, and monitor the changes in the edge-centric network curvatures. We find that the different geometric measures capture well the system-level features of the market and hence we can distinguish between the normal or 'business-as-usual' periods and all the major market crashes. This can be very useful in strategic designing of financial systems and regulating the markets in order to tackle financial instabilities.
    Date: 2020–09
  12. By: Paolo Manasse; G. Alfredo Minerva; Roberto Patuelli; Lorenzo Zirulia
    Abstract: This paper employs the most recent Input Output tables to discuss the Italian lockdown after the COVID-19 epidemics. We define “basic activities” and derive a ranking of industries which more intensively contribute to them. Confronting our results with the choices of the Italian government, we find that these were broadly correct in terms of industrial composition. However, we find that the lockdown of industries such as construction, real estate and manufacture of basic metals reveal a very conservative preferences in terms of the target share of output of essential activities (below 85 %).
    JEL: D57 L52 L60
    Date: 2020–09
  13. By: Torres González, Luis Daniel; Zafra García, Krista
    Abstract: Entre 2016 y 2019, la Comisión Económica para América Latina y el Caribe (CEPAL) implementó un proyecto de colaboración técnica denominado “Tablas de insumo-producto para el diseño de políticas industriales y comerciales en Centroamérica y América del Sur”. Esta iniciativa estuvo financiada por la Secretaría General de las Naciones Unidas como parte del programa de la Cuenta para el Desarrollo. El objetivo principal fue fortalecer las capacidades estadísticas y analíticas de los países latinoamericanos, así como el diseño y monitoreo de las políticas industriales y comerciales, a través de la construcción y el uso de matrices de insumo-producto nacionales y regionales. Esta iniciativa permitió construir la primera matriz insumo-producto regional. Por la disponibilidad de información, la matriz fue construida con datos de 2011. A partir de la construcción de la matriz, la CEPAL ha elaborado una serie de documentos analíticos con los que se busca examinar a profundidad la integración regional en materia comercial, con el objetivo de brindar evidencia empírica robusta para formular y evaluar políticas públicas. El objetivo principal del presente documento es estudiar la generación y la distribución funcional del valor agregado inducido por las exportaciones de los países centroamericanos (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua y Panamá), México y la República Dominicana. Para ello, se realiza un análisis estructural mediante el uso del modelo abierto de insumo-producto impulsado por la demanda (o modelo de Leontief), con el que se estima el valor agregado inducido por las exportaciones, así como su distribución funcional entre remuneraciones, ingresos mixtos, excedente bruto de explotación e impuestos netos.
    Date: 2020–09–17
  14. By: Rodolfo Beazley (IPC-IG); Anna McCord (IPC-IG); Ana Solórzano (IPC-IG)
    Abstract: "Hay un interés global creciente en el rol que la Protección Social puede tomar en promover la resistencia a los cambios de clima. Programas de trabajo públicos (conocidos como Public Works Programmes, PWPs) han sido identificados como intervenciones particularmente adecuadas para atingir esta meta, aunque poco entendimiento conceptual de cómo se puede asumir este rol ha sido desarrollado. En este One Pager les presentamos una amplia Teoría de Cambio (ToC), la cual muestra como los PWPs podrían potencialmente aumentar la resistencia al cambio climático, presentando evidencia básica para esto". (...)
    Keywords: Programas, trabajos, públicos, protección, resistencia, clima, teoría, cambio, evidencia, países, baja renta
    Date: 2019–11

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