|
on Heterodox Microeconomics |
|
Issue of 2020‒11‒30
sixteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Silvano Cincotti (UNIGE - University of Genoa); Wolfram Elsner (University of Bremen); Nathalie Lazaric (Université Côte d'Azur, CNRS, GREDEG (France)); Anastasia Nesvetailova (City University London); Engelbert Stockhammer (King‘s College London) |
| Abstract: | The present REPE issue 2-2020 is the second part of our inaugural "double pack". We were lucky to receive more papers for the inaugural issue than we could accommodate in one issue. So please enjoy another set of challenging original research papers gauging the field of evolutionary political economy. In Financialisation and the periodisation of capitalism: appearances and processes, Jan Toporowski argues that the analysis of financial processes is essential for understanding changes in the financial system. Only these processes give rise to appearances such as the statistical data that are the basis of most studies of financialization. Those processes are fundamentally determined by the structure of the financial system. Following Minsky, Toporowski focuses on corporate finance which, through its effect on business investment, influences the dynamics of the capitalist system. As financial structures change, this gives rise to particular phases of capitalist development. The paper thus builds on Minsky's historical institutional analysis, but offers a more systematic analysis. It offers a periodization of capitalism through mercantile capitalism, classic, bank-based capitalism, finance capital, state finance capitalism, to pension fund capitalism and capital market inflation. It shows how each period ends with financial difficulties that are overcome with financial innovation leading to a new financial structure with corresponding changes in financial processes. Specifically, the paper argues that the phase of capital market inflation, inaugurated by funded pension schemes in the last decades of the twentieth century, has come to an end in the illiquidity of capital markets that lies behind the 2008 financial crisis. The paper suggests that the measures of "unconventional monetary policy", or "Quantitative Easing", mark a new period of state finance capital with a return to the state support of a structurally illiquid capital market that already had prevailed in Europe and North America from the 1930s to the 1960s. The discipline of International Political Economy-IPE has been flirting with evolutionary approaches for the past decade or so. So far, attempts to develop a take on evolutionary theory have proceeded in a rather unstructured way: They range from potential applications of Darwinian theory of selection to more recent efforts to draw on ecological approaches and complexity theory when analysing crises and transformations. There has also been a renewed interest in institutionalist approaches and heterodox tradition, but this too, has been a fragmented process. Ronen Palan's article An Evolutionary Approach to International Political Economy: The Case of Corporate Tax Avoidance aims to offer a pathway to a more systemic framework of evolutionary political economy, in order to rethink the changes in the regulation on the contemporary system of states. Palan develops his approach by distinguishing between a tradition of political economy based on action of discreet entities (this reflects the roots of IPE in neoclassical economics) and a tradition of thought centred around a concept of transaction (taking root in original institutional economics). This framework |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02933700&r=all |
| By: | Anne-Lorene Vernay (GEM - Grenoble Ecole de Management); Carine Sebi (GEM - Grenoble Ecole de Management) |
| Abstract: | Energy communities—groups of citizens, social entrepreneurs and public authorities who jointly invest in producing, selling and managing enewable energy are expected to play a prominent role in the energy transition. Energy communities are fragile individually and they need to pool resources and coordinate their actions to become robust collectively. This paper adopts an ecosystem perspective and aims to identify characteristics that an energy community ecosystem should exhibit to help energy communities emerge, grow and eventually fully realise their potential to transform the energy sector. It compares energy communities in two countries, France and the Netherlands, where energy community ecosystems have attained uneven levels of maturity. We argue that an energy community ecosystem can fully realize its potential if: 1) it revolves around keystone actors that can foster diversity; 2) it is structured around local capacity builders that can act as catalysers; and 3) it develops both competing and symbiotic relations with incumbent energy actors. |
| Keywords: | Energy communities,Ecosystem,Renewable energy |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:hal-02987790&r=all |
| By: | Edward Lane; L. Randall Wray |
| Abstract: | As the nation is experiencing the need for ever-increasing government expenditures to address COVID-19 disruptions, rebuild the nation's infrastructure, and many other worthy causes, conventional thinking calls for restoring at least a portion corporate taxes eliminated by the 2017 Tax Cuts and Jobs Act, especially from progressive circles. In this working paper, Edward Lane and L. Randall Wray examine who really pays the corporate income tax and argue that it does not serve the purposes most people believe. The authors provide an overview of the true purposes and incidence of corporate taxation and argue that it is inefficient and largely borne by consumers and employees, not shareholders. While the authors would prefer the elimination of the corporate profits tax, they understand the conventional thinking that taxes are necessary to help finance government expenditures--even if they disagree. Accordingly, the authors present alternatives to the corporate tax that shift the burden from consumers and employees to those who benefit the most from corporate success. |
| Keywords: | Corporate Taxes; Tax Incidence; Modern Money Theory (MMT); Richard and Peggy Musgrave; Beardsley Ruml; Tax Reform |
| JEL: | B52 E12 E6 E62 G30 H20 H25 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_979&r=all |
| By: | Scandura, Alessandra; Bolzani, Daniela (University of Turin) |
| Abstract: | This paper investigates the importance of the network of collaborations with other firms, research institutions, and business associations as key drivers of innovation, providing a comparison between immigrant-owned firms and non-immigrant-owned firms. We hypothesise that the network of collaboration is more important for innovative activities of immigrant entrepreneurs than for natives, due to their migrant condition, and that immigrant entrepreneurs’ acculturation to the host country culture moderates the influence of such network. We test our hypotheses on a unique matched-pair sample of immigrant and native domestic entrepreneurs active in high-tech mainstream (non-ethnic) markets. Our results show that universities and research institutions along with business associations are more important for immigrant-owned companies; we further show that immigrant entrepreneurs’ acculturation to the host country culture acts as a substitute for interactions with business associations. These findings are highly relevant for the academic and policy discourses on the link between immigrant entrepreneurship and innovation in developed countries. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:202021&r=all |
| By: | Tendai Zawaira (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Matthew W. Clance (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Carolyn Chisadza (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa) |
| Abstract: | Using data on historical homelands of ethnicities from the Ethnographic Atlas (Murdock, 1959, 1967) and World Values Survey (WVS) data, we analyse how social institutions perpetuate social attitudes that legitimise gender inequality in the labour market, specifically on female labour force participation in sub- Saharan Africa. We find that patriarchal systems in general such as patrilineal kinship, patrilineal land inheritance and patrilocal residence upon marriage reduce female labour force participation, whilst matriarchal systems have the opposite effect. These results are partly influenced by unequal gender attitudes towards women and their work. The findings suggest that social institutions are an important element in understanding gender dynamics in sub-Saharan Africa because they have over time informed on gender identification and appropriate gender roles in most societies. |
| Keywords: | Gender, Africa, Institutions, Culture |
| JEL: | J16 O11 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:2020101&r=all |
| By: | Arsen, Celia |
| Abstract: | This thesis examines the relationship between gender-based occupational segregation and gender-based residential patterns. Specifically, it finds that that Irish-born immigrants were more likely to be employed in highly gender-segregated occupations than their German-born counterparts. This had a spatial impact on the residential patterns of Irish-born men and women. Because Irish-born immigrants tended to work in highly gender-segregated occupations that were located in different parts of the city, Irish-born men and women disproportionately lived in different areas. The paper discusses some of the historical and contextual factors that explain why Irish-born women were more likely than German-born women to go into highly gender-segregated occupations. Lastly, it shows how this relationship between occupational segregation and geography impacted the economic life cycles of these immigrant women. In particular, it identifies the rate at which women left the workforce after getting married or having children. |
| Date: | 2020–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:s4jvz&r=all |
| By: | Xavier Ragot (Observatoire français des conjonctures économiques) |
| Abstract: | La COVID-19 a provoqué une crise sanitaire et économique sans précédent dans l'histoire récente. Le changement brutal du fonctionnement de l'économie a conduit les économistes à adapter rapidement leurs outils d'analyses et leurs prévisions économiques. Il a fallu d'abord comprendre l'état de l'économie dans un contexte de grande incertitude sur l'évolution épidémiologique ainsi que sur les comportements des ménages et des entreprises. Cette crise singulière conduit à repenser les concepts-clés de l'analyse économique. On identifie quatre nouvelles questions : quel sens donner à l'évolution des prix des services quand la notion même de qualité ne peut être mesurée ? Comment la crise est-elle socialement partagée ? De quelle façon l'économie est-elle financée ? Qu'est-ce qu'un choc d'offre et un choc de demande et quelles sont leurs implications sectorielles ? |
| Keywords: | Pandémie; Politiques publiques; Comptes nationaux |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/4b9gorkjvr8p0og2640n4l4f26&r=all |
| By: | Filippo Bontadini; Francesco Vona (Observatoire français des conjonctures économiques) |
| Abstract: | We study green specialization across EU countries and detailed 4-digit industrial sectors over the period of 1995-2015 by harmonizing product-level data (PRODCOM). We propose a new list of green goods that refines lists proposed by international organizations by excluding goods with double usages. Our exploratory analysis reveals important structural properties of green specialization. First, green production is highly concentrated, with 13 out of 119 4-digit industries accounting for 95% of the total. Second, green and polluting productions do not occur in the same sectors, and countries tend to specialize in either green or brown sectors. This suggests that the distributional effect of European environmental policies can be large. Third, green specialization is highlypath dependent, but it is also reinforced by the presence of non-green capabilities within the same sector. This helps explain why economies with better engineering and technical capabilities have built a comparative advantage in green production. |
| Keywords: | Green goods; Green specialization; Revealed comparative advantage; Complementarity; Path dependency |
| JEL: | Q55 L60 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/6m5kss847r91no96hiublu6anu&r=all |
| By: | Rickman, Dan; Wang, Hongbo |
| Abstract: | Studies of the economics of state fiscal incentives for the motion picture and television industry lack consistency in methodology. A key inconsistency is the use of differing levels of industry aggregation. This study unpacks aggregate sector multipliers for 48 states and shows how use of aggregated measures for the motion picture and television industry can lead to inaccurate input-output multipliers and empirical estimates of the role of incentives in the location of the industry. In practice, regional input-output models need to be modified to reflect the economic differences across activities in the aggregate sector, particularly for states that contain little of the targeted activity. A case study shows that a practical alternative is to use aggregate multipliers from similar states with large concentrations of the industry. |
| Keywords: | state film incenetives; input-output multipliers, economic development |
| JEL: | H25 H71 R12 R58 |
| Date: | 2020–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104052&r=all |
| By: | Sarah Guillou (Observatoire français des conjonctures économiques) |
| Abstract: | The note presents the computation of industry foreign inputs dependency using input-output tables. It gives details on each level of dependency and finish with the infinite computation using the Leontief inverse matrix. It ends with some evidence by using WIOT data from 2000 to 2014 which shows the high growth of the technical dependency to Chinese inputs over the past 15 years. Construction, Telecommunications and Chemicals are Chinese-dependent sectors among the 20 first which also contribute a lot to the French economy. Nevertheless, for France and European countries, the dependency to Chinese inputs is well behind the dependency to European inputs. |
| Keywords: | Input-output tables; Leontief matrix; Inputs dependency; Chinese inputs |
| JEL: | F14 |
| Date: | 2020–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/61ti3h6msf88roou28skvvaj6b&r=all |
| By: | Renaud Le Goix (UP - Université de Paris, GC (UMR_8504) - Géographie-cités - UP1 - Université Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris, IUF - Institut Universitaire de France - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche); Laure Casanova Enault (ESPACE - Études des Structures, des Processus d’Adaptation et des Changements de l’Espace - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - AU - Avignon Université - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique, AU - Avignon Université); Loïc Bonneval (CMW - Centre Max Weber - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Étienne] - CNRS - Centre National de la Recherche Scientifique, UL2 - Université Lumière - Lyon 2); Thibault Le Corre (GC (UMR_8504) - Géographie-cités - UP1 - Université Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris); Eliza Benites-Gambirazio (University of Arizona, UL2 - Université Lumière - Lyon 2, CMW - Centre Max Weber - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Étienne] - CNRS - Centre National de la Recherche Scientifique); Guilhem Boulay (ESPACE - Études des Structures, des Processus d’Adaptation et des Changements de l’Espace - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - AU - Avignon Université - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique, AU - Avignon Université); William Kutz (CAM - University of Cambridge [UK]); Natacha Aveline-Dubach (GC (UMR_8504) - Géographie-cités - UP1 - Université Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris); Julien Migozzi (ENS Lyon - École normale supérieure - Lyon, PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA [2020-....] - Université Grenoble Alpes [2020-....] - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA [2020-....] - Université Grenoble Alpes [2020-....]); Ronan Ysebaert (RIATE - Réseau interdisciplinaire pour l’aménagement et la cohésion des territoires de l’Europe et de ses voisinages - CNRS - Centre National de la Recherche Scientifique - CGET - Commissariat Général à l'égalité des territoires - UP - Université de Paris, UP - Université de Paris) |
| Abstract: | This paper advances a research agenda on how asset-based welfare policies, residential market volatility, stratified accumulation and vulnerability impinge upon the geography of inequality in property markets. Since the mid-1990s, housing prices have increased faster than the income of buyers, becoming a driver of social polarisation and household vulnerability. Few studies have however explicitly linked socio-spatial inequality to asset capitalisation, instability and vulnerability in residential housing markets. We employ an empirically-grounded investigation of the factors driving and reinforcing these dynamics, what we conceptualise as a feedback loop mediating particular housing finance regimes. Drawing on three French cities (Paris, Lyon, and Avignon) our study develops a comparative framework to interpret the relational effects of price, equity and homeowner vulnerability on the production of inequality across different geographical scales. Our approach puts into conversation debates concerning housing markets, social inequality, and ordinary financialisation in the period since the Global Financial Crisis. |
| Abstract: | Cet article développe un agenda de recherche portant sur la la géographie des inégalités sur les marchés immobiliers, influencée par les politiques de protection sociale fondées sur les actifs, la volatilité du marché résidentiel, les logiques d'accumulation socialement et spatialement stratifiées, et la vulnérabilité induite des ménages. Depuis le milieu des années 1990, les prix des logements ont augmenté plus rapidement que les revenus des acheteurs, devenant un facteur de polarisation sociale et de vulnérabilité des ménages devant l'accès au logement. Peu d'études ont cependant explicitement établi un lien entre l'inégalité socio-spatiale et la capitalisation des actifs d'une part, l'instabilité et la vulnérabilité des marchés immobiliers résidentiels d'autre part. Partant d'un étude empirique des facteurs qui entraînent et renforcent ces dynamiques, notre cadre conceptuel est celui d'une boucle de rétroaction entre des régimes particuliers de financement du logement. En s'appuyant sur trois villes françaises (Paris, Lyon et Avignon), notre étude développe un cadre comparatif pour interpréter les effets du prix, de la valeur nette et de la vulnérabilité des propriétaires sur la production d'inégalités à différentes échelles géographiques. Notre approche met en débat les analyses du marchés du logement, l'inégalité sociale et la financiarisation ordinaire dans la période qui a suivi la crise financière mondiale. |
| Keywords: | housing inequality,housing markets,asset capitalization: assez-based welfare,housing finance,price inflation,property markets,homeownership,Housing,inequalities,ownership,financialisation,wealth,France |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02916066&r=all |
| By: | Alberto Cardaci (Lombardy Advanced School of Economics Milan); Francesco Saraceno (Observatoire français des conjonctures économiques) |
| Abstract: | Our paper investigates the impact of rising inequality in a two-country macroeconomic model with an agent-based household sector characterized by peer effects in consumption. In particular, the model highlights the role of inequality in determining diverging balance of payments dynamics within a currency union. Inequality may drive the two countries into different growth patterns: where peer effects in consumption interact with higher credit availability, rising income inequality leads to the emergence of a debt-led growth. Where social norms determine weaker emulation and credit availability is lower, an export-led regime arises. Eventually, a crisis emerges endogenously due to the sudden-stop of capital flows from the net lending country, triggered by the excessive risk associated with the dramatic amount of private debt accumulated by households in the borrowing country. Monte Carlo simulations for a wide range of calibrations confirm the robustness of our results. |
| Keywords: | Inequality; Current account; Currency union; Agent-based model |
| JEL: | C63 D31 E21 F32 F43 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/e222osgnt859os6g897r4ju4u&r=all |
| By: | Chinmayi Srikanth (Indian Institute of Management Kozhikode, IIMK Campus P.O, Kerala 673 570); Zareena Begum Irfan (Associate Professor, Madras School of Economics, Chennai, India) |
| Abstract: | The purpose of this paper is to shed light on the need for a gender-centric approach to studying the consequences of the scarcity of a natural resource due to arsenic contamination, particularly water, on the lives of women. The need for such an approach is met by the Feminist Political Ecology (FPE) Framework that identifies women as highly vulnerable as compared to their male counterparts and the most affected by such scarcity. The paper uses the case of Bangladesh‟s arsenic contamination to explore the nuances of gender and how it changes their experience of the phenomenon. It also underlines the importance of FPE in painting a more realistic and complete picture of the vulnerability of women. |
| Keywords: | Feminist Political Ecology, Bangladesh, water, women,vulnerability |
| JEL: | I14 J16 P48 Q53 Z13 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2020-189&r=all |
| By: | Vasques Filho, Demival |
| Abstract: | I propose a theory of social structure that challenges the widely accepted role of preferential attachment and triadic closure as primary mechanisms of network formation. For this, I build upon Feld's concept of social circles, Breiger’s concept of the duality of actors and groups, and Hinde’s concept of interactions and relationships. The theory emphasizes that ties between actors arise and evolve according to social circles and social situations in which they participate, a notion straightforwardly modeled through two-mode and projected networks. Using recent results aided by analyses of empirical and artificial networks, I argue that structural properties such as tie strength, heterogeneity of popularity and strength among actors, clustering, community formation, and segregation emerge from homophily, jointly with overlap and social activity—mechanisms introduced in this study. The mechanisms form the two-mode network, and these structural properties naturally arise in the one-mode projection. The results show that social circle and social situation size distributions modulate network structures by interweaving with social activity distributions, and that overlap increases segregation from a network viewpoint. This theory’s implications are broad, affecting several social processes ranging from social cohesion, tolerance, and child development to the spread of infectious diseases. |
| Date: | 2020–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:5cyuq&r=all |
| By: | Michler, Jeffrey D (University of Arizona); Masters, William A.; Josephson, Anna |
| Abstract: | Principles for ethical behavior in the context of research are codified into rules that may change over time to meet peoples’ needs in specific institutions, including universities and professional associations. This paper aims to spark discussion about a set of ethical choices beyond those addressed by an IRB or recent association policy statements. Our specific focus is topic selection, and the role of researchers’ interests and incentives in determining the kinds of research that we do. Using the principle of induced innovation, we show how changing incentives can influence the direction of research effort and thereby affect the kinds of policies or technologies that are supported by available evidence. With this paper, we hope to generate discussion among applied economists about selection bias in research, and how we can use insights from economics itself to guide topic selection. |
| Date: | 2020–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:osf:metaar:uzxf9&r=all |
| By: | Raphaël Didier |
| Abstract: | En France, les monnaies locales complémentaires et citoyennes (MLCC) connaissent un fort développement depuis une décennie. Cette dynamique amène à s’interroger sur les profils socioéconomiques des utilisateurs, afin de faire ressortir d’éventuels profils types. Nous nous proposons de mener une étude dans le cas particulier du Florain, monnaie locale du Bassin de vie nancéien, pour laquelle nous avons réalisé une enquête informatisée en 2019. Une ACM nous permet de mettre en évidence quatre principaux profils types d’utilisateurs : les engagés politiques, les gentrifieurs, les simples utilisateurs et les culturels. |
| Keywords: | monnaie locale, monnaie sociale, communauté, utilisateurs, valeurs. |
| JEL: | B50 E42 R11 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2020-49&r=all |