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on Heterodox Microeconomics |
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Issue of 2020‒12‒07
seventeen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | John B. Davis (Department of Economics Marquette University) |
| Abstract: | Stratification Economics (SE) is an emergent sub-field in economics, but its JEL classification misrepresents its content and its relationship to the whole of economics. This paper first develops a more accurate characterization of SE by identifying its differences with Mainstream Economics (ME), its commonalities with economics in a broad sense, and how the combination of these differences and commonalities define it as a distinct research program. It then applies this definition to an economic goods taxonomy that makes a distinction between local public goods and common pool goods to interpret SE�S distinct research program as an economics of exclusion. The paper closes with a discussion of how SE might explain socioeconomic change in social group identity terms. |
| Keywords: | stratification, social group identity, complex systems, local public goods, common pool goods, exclusion, political alliance |
| JEL: | B41 Z13 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:mrq:wpaper:2019-01&r=all |
| By: | John B. Davis (Department of Economics Marquette University) |
| Abstract: | Care is central to the human experience and part of the social provisioning process. Adam Smith recognized this, associating care with sympathy. Later contributions in the political economy tradition also provide scope for an analysis of care, but none as developed as Smith�s. With the emergence of the current mainstream, care is marginalized. Kenneth Boulding�s analysis provides an opportunity to interrogate care in the economy, but he fails to explicitly acknowledge care. It is left to feminist economics to highlight the centrality of care. An implication is that it challenges the conventional rubric of economic organization predicated on self-interest. |
| Keywords: | care, Smith, feminist economics, Boulding, social provisioning |
| JEL: | B10 B54 I00 Z00 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:mrq:wpaper:2019-02&r=all |
| By: | John B. Davis (Department of Economics Marquette University) |
| Abstract: | This paper discusses the impact of Sraffa�s thinking on economics. It argues increasing specialization in research is producing an �all trees, no forest� fragmentation of economics that creates opportunities for a return to concerns that motivated classical political economy. It associates this with a methodological conception of what a more pluralistic economics involves, and applies this to relationships between production and distribution. A methodological conception of �openness� is traced to a 1931 turning point in Sraffa�s thinking when he used an open-closed distinction to explain the relationship between production and distribution, and engaged in a philosophy of science reasoning reminiscent of systems theory. The paper argues there are important parallels between Sraffa and Gramsci�s thinking regarding the open-closed distinction. |
| Keywords: | Sraffa, political economy, fragmentation, open-closed, pluralism, Gramsci |
| JEL: | B2 B4 B5 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:mrq:wpaper:2019-03&r=all |
| By: | John B. Davis (Department of Economics Marquette University) |
| Abstract: | This paper develops a conception of reflexive economic agents as an alternative to the standard utility conception, and explains individual identity in terms of how agents adjust to change in a self-organizing way, an idea developed from Herbert Simon. The paper distinguishes closed equilibrium and open process conceptions of the economy, and argues the former fails to explain time in a before-and-after sense in connection with Aristotle's sea battle problem. A causal model is developed to represent the process conception, and a structure-agency understanding of the adjustment behavior of reflexive economic agents is illustrated using Merton's self-fulfilling prophecy analysis. Simon's account of how adjustment behavior has stopping points is then shown to underlie how agents' identities are disrupted and then self-organized, and the identity analysis this involves is applied to the different identity models of Merton, Ross, Arthur, and Kirman. Finally, the self-organization idea is linked to the recent 'preference purification' debate in bounded rationality theory regarding the 'inner rational agent trapped in an outer psychological shell,' and it is argued that the behavior of self-organizing agents involves them taking positions toward their own individual identities. |
| Keywords: | reflexivity, Simon, Aristotle identity, self-fulfilling prophecy |
| JEL: | B11 B25 B41 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:mrq:wpaper:2020-01&r=all |
| By: | Elaine Agyemang Tontoh (Department of Economics, New School for Social Research) |
| Abstract: | The theorizing of motherhood as a capability and a capability suppression is critical to emancipatory discourse and practice within human development and to addressing through public policy, social injustice against women due to their role as mothers. The paper draws on Martha Nussbaum’s capability theory and her fair-bargain model to confront the specific tragic conflict of capability suppression inherent in motherhood. The paper further proposes compensation for motherhood and the promotion of the option of motherhood as a complement to Nussbaum’s fair-bargain approach to achieving social justice. |
| Keywords: | Motherhood, triple day, Martha Nussbaum, capabilities approach, biological reproductive capability, capability suppression, human development, social justice |
| JEL: | O15 J12 J13 J18 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:new:wpaper:2015&r=all |
| By: | Khuc, Quy Van; Ho, Tung Manh; Nguyen, Hong-Kong T.; Nguyen, Minh-Hoang; Ho, Manh-Toan (Thanh Tay University Hanoi); Vuong, Thu-Trang; La, Viet-Phuong; Vuong, Quan-Hoang |
| Abstract: | Climate change gives rise to a growing threat of extinction to humankind, yet the current approach and solutions appear insufficient in addressing it effectively. This paper presents a critical review of the climate crisis and current approaches, highlighting how misguided would it be to exclude enterprises—the primary drivers of the climate problems—from top-down policy-making. In assessing the different core cultural values of environment-damaging and environment-protecting enterprises, the authors suggest embracing a new paradigm of environmentally-friendly cultural values. The new paradigm, which calls for a process of identifying, transforming, and synthesizing a set of core cultural values, serves as the cornerstone of the whole system and aims to shift the core cultural value from “exploitation” to “construction.” As environmentally-friendly cultural values can shape human progress away from capitalism/monetarism and toward environmentalism, it could be added to Harrison and Huntington’s (2001) list of human cultures as the 11th value. The paradigm comprises two mutually interacting attributes: (i) money cannot trade for environmental deficits, and (ii) environmental embellishment value needs to become a new “measure of profit,” priced at least on par with monetary value. The insights carry serious implications for policy-makers in engaging enterprises in the fight for a more habitable and sustainable planet. |
| Date: | 2020–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:3g26q&r=all |
| By: | Michalis Nikiforos (University of Geneva (CH)) |
| Abstract: | The paper builds on the concept of (shifting) involvements, originally proposed by Albert Hirschman (2002 [1982]). However, unlike Hirschman, the concept is framed in class terms. A model is presented where income distribution is determined by the involvement of the two classes, capitalists and workers. Higher involvement by capitalists and lower involvement by workers tends to increase the profit share and vice versa. In turn, shifts in involvements are induced by the potential effect of a change in distribution on economic activity and past levels of distribution. On the other hand, as the profit share increases, the economy tends to become more wage led. The dynamics of the resulting model are interesting. The more the two classes prioritize the increase of their income share over economic activity, the more possible it is that the economy is unstable. Under the stable configuration, the most likely outcome is Polanyian predator-prey cycles, which can explain some interesting historical episodes during the 20th century. Finally, the paper discusses the possibility of conflict and cooperation within each of the distribution-led regimes. |
| Keywords: | distribution; economic growth; institutions; social movements; political economy |
| JEL: | E11 E12 E21 E22 E32 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2021&r=all |
| By: | Vuong, Quan-Hoang; Huyen, Nguyen Thanh Thanh; Pham, Thanh-Hang; Phuong, Luong Anh; Nguyen, Minh-Hoang |
| Abstract: | The current review, employing the bibliometric analysis of 224 documents extracted from the Web of Science database, aims to examine the growth trajectory, most influential documents, intellectual and conceptual structure of the literature regarding gender issues in family business research. The review identifies three major research lines: "Women’s challenges and opportunities in the family business", "Gender diversity in the family business corporate board", and "Gender and family SMEs management". By reviewing prominent cited references and documents which cited them in each research line, we provide the landscapes and research gaps of three major lines of research for further development. |
| Date: | 2020–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:jgnrw&r=all |
| By: | , Stone Center (The Graduate Center/CUNY); Ranaldi, Marco; Milanovic, Branko |
| Abstract: | The paper investigates the relationship between capitalism systems and their levels of income and compositional inequality (how the composition of income between capital and labor varies along income distribution). Capitalism may be seen to range between Classical Capitalism, where the rich have only capital income, and the rest have only labor income, and Liberal Capitalism, where many people receive both capital and labor incomes. Using a new methodology and data from 47 countries over the past 25 years, we show that higher compositional inequality is associated with higher inter-personal inequality. Nordic countries are exceptional because they combine high compositional inequality with low inter-personal inequality. We speculate on the emergence of homoploutic societies where income composition may be the same for all, but Gini inequality nonetheless high, and introduce a new taxonomy of capitalist societies. (Stone Center Working Paper Series) Revised |
| Date: | 2020–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:du4y7&r=all |
| By: | Ángel Iván Moreno (Banco de España); Teresa Caminero (Banco de España) |
| Abstract: | In this article we apply text mining techniques to analyse the TCFD recommendations on climate-related disclosures of the 12 significant Spanish financial institutions using publicly available corporate reports from 2014 until 2019. In our analysis, applying our domain knowledge, first we create a taxonomy of concepts present in disclosures associated with each of the four areas described in the TCFD recommendations. This taxonomy is then linked together by a set of rules in query form of selected concepts. The queries are crafted so that they identify the excerpts most likely to relate to each of the TCFD’s 11 recommended disclosures. By applying these rules we estimate a TCFD compliance index for each of the four main areas for the period 2014-2019 using corporate reports in Spanish. We also describe some challenges in analysing climate-related disclosures. The index gives an overview of the evolution of the level of climate-related financial disclosures present in the corporate reports of the Spanish banking sector. The results indicate that the quantity of climate-related disclosures reported by the banking sector is growing each year. Besides, our study also suggests that some disclosures are only present in reports different than annual and ESG reports, such as Pillar 3 reports or reports on remuneration of directors. |
| Keywords: | sustainability, sustainability data gaps, text mining, TCFD, Taxonomy and Ontology Management |
| JEL: | C81 G32 Q54 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2035&r=all |
| By: | Aletheia Donald; Markus Goldstein |
| Keywords: | Culture and Development - Anthropology Gender - Gender and Development Social Protections and Labor - Labor Markets |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:34428&r=all |
| By: | Frédéric Marty; Thierry Warin |
| Abstract: | In this article, we investigate the role of keystone players and consider their impact in terms of innovation rate in an industry. To do so, we build a theoretical framework that considers the innovation rate in the context of an industry with one keystone player and then with multiple keystone players. The results are threefold. First, the presence of a keystone player is incredibly important for innovation on a market. Second, however, our results also show that a biased market power in favor of the keystone player may hinder innovation in this industry, although the negative impact on the industry’s innovation rate may not be seen at first. Finally, we demonstrate that an industry obtains a higher innovation rate with multiple keystone players. This framework could inform decisions for the antitrust enforcers. |
| Keywords: | Innovation,Coopetition,Technological Dependence,Dominant Position,Keystone Players,Platform, |
| JEL: | L12 L22 L41 L86 |
| Date: | 2020–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2020s-61&r=all |
| By: | Nguyen, Minh-Hoang; Vuong, Quan-Hoang |
| Abstract: | We have found the existence of cultural studies within the boundary of air pollution research. Still, its portion, which is even smaller than the proportion of cultural studies within climate change and biodiversity research, is negligible. The current finding is in line with other previous results, supporting the presumption on the minor role of cultural studies in solving environmental issues. |
| Date: | 2020–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:jbcx3&r=all |
| By: | Luis Angeles |
| Abstract: | The history of money can be characterized into four major phases, from the earliest written records during the 3rd millennium BC to the present day. This characterization sheds light on both the nature and the evolution of money, and helps us to understand today’s monetary arrangements. Money evolves over time as the preferred means of payment shift from metal to coinage and from coinage to different forms of debt, and as the unit of account becomes more or less linked to the value of a commodity, in particular gold or silver. |
| JEL: | E51 E58 G21 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2020_24&r=all |
| By: | Mattia Guerini; Philipp Harting; Mauro Napoletano |
| Abstract: | We develop a model to study the impact of corporate governance on firm investment decisions and industry competition. In the model, governance structure affects the distribution of shares among short- and long-term oriented investors, the robustness of the management regarding possible stockholder interference, and the managerial remuneration scheme. A bargaining process between firm's stakeholders determines the optimal allocation of financial resources between real investments in R&D and financial investments in shares buybacks. We characterize the relation between corporate governance and firm's optimal investment strategy and we study how different governance structures shape technical progress and the degree of competition over the industrial life cycle. Numerical simulations of a calibrated set-up of the model show that pooling together industries characterized by heterogeneous governance structures generate the well-documented inverted-U shaped relation between competition and innovation. |
| Keywords: | governance structure; industry dynamics; competition; technical change. |
| Date: | 2020–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2020/35&r=all |
| By: | Gurgone, Andrea; Iori, Giulia |
| Abstract: | To date, macroprudential policy inspired by the Basel III package is applied irrespective of the network characteristics of the banking system. We study how the implementation of macroprudential policy in the form of additional capital requirements conditional to systemic-risk measures of banks should regard the degree of heterogeneity of financial networks. We adopt a multi-agent approach describing an artificial economy with households, firms, and banks in which occasional liquidity crises emerge. We shape the configuration of the financial network to generate two polar worlds: one is characterized by few banks who lend most of the credit to the real sector while borrowing interbank liquidity. The other shows a higher degree of homogeneity. We focus on a capital buffer for SII and two buffers built on measures of systemic impact and vulnerability. The research suggests that the criteria for the identification of systemic-important banks may change with the network heterogeneity. Thus, capital buffers should be calibrated on the heterogeneity of the financial networks to stabilize the system, otherwise they may be ineffective. Therefore, we argue that prudential regulation should account for the characteristics of the banking networks and tune macroprudential tools accordingly. |
| Keywords: | agent-based model,capital requirements,capital buffers,,financial networks,macroprudential policy,systemic-risk |
| JEL: | C63 D85 E44 G01 G21 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bamber:164&r=all |
| By: | Köppl-Turyna, Monika; Kantorowicz, Jarosław |
| Abstract: | This work looks at the policies aimed at promoting female participation in local legislative bodies using a series of changes to electoral law in Poland. We use a difference-in-discontinuities design to examine the effect of an introduction of a female quota on female participation in local councils. We find that the female quota has a strong positive effect on the percentage of females in the local council by increasing the pool of female candidates. It does not, however, affect the individual probability of being elected as a female, suggesting that its effect on voters' preferences is limited. |
| Keywords: | female quota,electoral rules,female representation,regression discontinuity,difference in discontinuities |
| JEL: | D72 B52 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ecoarp:15&r=all |