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on Heterodox Microeconomics |
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Issue of 2021‒03‒22
24 papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Bozorov, Abdurashid; Feuerbacher, Arndt; Wieck, Christine |
| Abstract: | Social accounting matrices (SAMs) are the core underlying data for economy-wide simulation models such as computable general equilibrium models. This paper reports the development of a SAM for Uzbekistan for the year 2014. The last SAM developed for Uzbekistan is based on the year 2001 (Müller, 2006) and Uzbekistan is listed among the top ten countries by GDP and population by the Global Trade and Analysis Project for which a recent input-output is missing. The SAM documented in this technical paper is characterized by a detailed representation of the agricultural sector. Generally, data availability in Uzbekistan is a challenge and the development process had to rely on myriad data sources. The final SAM values are estimated using an information-theoretic, cross-entropy approach. Using a Bayesian perspective, the degree of uncertainty of cell entries’ prior values reflected the availability and quality of data sources. In total, this SAM consists of 88 accounts. There are 31 commodity accounts and 31 accounts describe economic activities of which 17 activities are part of the agricultural sector. The factor accounts comprise five types of labor, capital, and main natural resources: land and water. There are three household accounts, one government, and five tax accounts. The authors hope that this SAM will allow researchers to investigate research questions that are of high priority for Uzbekistan’s future economic development, particularly those related to the future role of agriculture and water. |
| Keywords: | Agribusiness, Agricultural and Food Policy |
| Date: | 2021–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uhgewp:309974&r=all |
| By: | Sequeira, Sandra; Nunn, Nathan; Qian, Nancy |
| Abstract: | We study the effects of European immigration to the U.S. during the Age of Mass Migration (1850–1920) on economic prosperity. Exploiting cross-county variation in immigration that arises from the interaction of fluctuations in aggregate immigrant flows and of the gradual expansion of the railway network, we find that counties with more historical immigration have higher income, less poverty, less unemployment, higher rates of urbanization, and greater educational attainment today. The long-run effects seem to capture the persistence of short-run benefits, including greater industrialization, increased agricultural productivity, and more innovation. |
| Keywords: | Economic development; Historical persistence; Immigration |
| JEL: | B52 F22 O10 O40 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:100819&r=all |
| By: | Bichler, Shimshon; Nitzan, Jonathan |
| Abstract: | We write this essay for both lay readers and scientists, though mainstream economists are welcome to enjoy it too. Our subject is the basic toolbox of mainstream economics. The most important tools in this box are demand, supply and equilibrium. All mainstream economists – as well as many heterodox ones – use these tools, pretty much all the time. They are essential. Without them, the entire discipline collapses. But in our view, these are not scientific tools. Economists manipulate them on paper with impeccable success (at least in their own opinion). But the manipulations are entirely imaginary. Contrary to what economists tell us, demand, supply and equilibrium do not carry over to the actual world: they cannot be empirically identified; they cannot be observed, directly or indirectly; and they certainly cannot be objectively measured. And this is a problem because science without objective empirical tools is hardly science at all. |
| Keywords: | demand,econometrics,equilibrium,neoclassical economics,science,supply |
| JEL: | E13 C01 O47 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:capwps:202103&r=all |
| By: | Danielle Araujo (Harvard Extension School, USA) |
| Abstract: | Neoliberalism is a term that has attracted a remarkable degree of frustration and fury within the academia. Its political ideology is associated with Wall Street greed, union-busting, deregulation, wage theft, privatization and exploitation. Critics claim it has been used as a weapon of the wealthy class to mask their true intentions. It removes decision-making out of popular hands and places decisions in the hands of unelected International Organizations, undoing democracy. The extreme inequalities and empowerment of capital that neoliberalism brings about, reduces human beings into market actors undermining the power and needs of the people. The main conclusion of the paper is that neoliberalism policies are a radicalizing threat to human potential and democracies in the 21st century. |
| Keywords: | neoliberalism, neoliberalism policies, democracy, democratic societies, international organizations, World Bank, IMF, Structural Adjustment Programmes |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:smo:conswp:037da&r=all |
| By: | Dione, Malick; Lo, Codé; Seye, Moustapha; Fall, Abdou Salam; Hidrobo, Melissa; Le Port, Agnès; Heckert, Jessica; Peterman, Amber |
| Abstract: | Senegal reported its first case of COVID-19 on March 2, 2020. The government responded within two weeks, introducing preventive measures to slow the spread of the virus, including the declaration of a public health emergency, border closures, and the prohibition of intercity travel and gatherings. These measures also slowed economic activity throughout the country and disrupted food supply chains and markets, contributing to loss of livelihoods, income, and households’ purchasing power. Evidence suggests that globally, women have been hit harder by the COVID-19 crisis, in particular with respect to impacts on economic security, health, education, and increased caretaking responsibilities in the household. |
| Keywords: | SENEGAL; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; gender; women; adolescents; girls; Coronavirus; coronavirus disease; Coronavirinae; COVID-19; households; surveys; policies; food security; labour; rural areas; wellbeing; paid work |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:prnote:134274&r=all |
| By: | Richard Arena (Université Côte d'Azur, France; GREDEG CNRS); Eric Nasica (Université Côte d'Azur, France; GREDEG CNRS) |
| Abstract: | This article aims to analyze the impact of taking into account a truly uncertain and complex economic environment on the methodology used by Keynes. Our work leads to two main results. The first conclusion is that, even when an ordinal or cardinal measure of probability is impossible, Keynes provides a coherent set of tools for the analysis of economic decisions. In particular, even if a numerical probability cannot be determined, the choices of economic agents will be rationally governed by reasoning based on their limited but real knowledge of the observed reality and on non-numerical probabilities. The second result obtained is that the complex decision-making environment surrounding economic decisions influences the characterization of the individual actor himself and economic and social interactions; this form of economic analysis implies referring to a methodological conception which is open to and even requires the use of philosophy and other social sciences as cognitive psychology, social psychology and even anthropology. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2021-10&r=all |
| By: | Meacci, Ferdinando |
| Abstract: | The aim of this paper is to focus, within Adam Smith’s system of thought, on the various aspects of the twofold link between the accumulation of capital and the demand for labor, on the one hand, and between an increasing population and increasing wages, on the other. This link is examined, first, in the light of the relationship between the principles of self-interest and competition; and, secondly, in support of the possibility (neglected by Smith) that the long-run supply of labor may fall short of the long-run demand for it. The paper’s main argument is that this possibility is peacefully implemented in advancing economies by the “uniform, constant, and uninterrupted effort of every man to better his condition” which lies behind a continuous process of capital accumulation (including technical progress) along with the birth control techniques so widely used in our times. |
| Date: | 2020–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:hq7bf&r=all |
| By: | Ali, Amjad; Audi, Marc; Bibi, Chan; Roussel, Yannick |
| Abstract: | This study has investigated the impact of gender inequality and environmental degradation on human well-being in the case of Pakistan from 1980 to 2019. Augmented Dickey-Fuller unit root test is used for stationarity of the variables. The Autoregressive Distributed Lag Model (ARDL) is used for co-integration among the variables of the model. The results show that gender inequality has a negative and significant impact on human well-being in Pakistan, while gender equality encourages human well-being. The calculated results show that there is a positive, but insignificant relationship between environmental degradation and human well-being in the case of Pakistan. The estimated results show that economic misery has a negative and significant impact on human well-being in the case of Pakistan. The estimated results show that economic growth has a positive and significant relationship with human well-being in Pakistan. Based on estimated results, it is concluded that gender equality, economic misery, and economic growth are playing an important role in determining human well-being in Pakistan. Therefore, to improve human well-being, the government must reduce gender inequality and economic misery while enhancing in parallel economic growth. |
| Keywords: | gender inequality, environmental degradation, human well-being |
| JEL: | J1 O10 Q0 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106655&r=all |
| By: | Bart Van den Cruyce |
| Abstract: | This paper describes the methodology to make the existing interregional supply and use table (ISUT) of 2010 compatible to ESA2010/SNA2008 rules and shows the results at a macro level. The ISUT describes, for each product and industry, all intra- and interregional flows caused by the intermediate use, final consumption expenditures, investments and exports of the three Belgian regions Brussels, Flanders and Wallonia. |
| Keywords: | Supply and use tables, Regional economy, Input-output tables |
| JEL: | R15 C67 |
| Date: | 2019–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:1910&r=all |
| By: | Kanbur, Ravi |
| Abstract: | This paper considers and assesses the concept of social externalities through human interdependence, in relation to the economic analysis of externalities in the tradition of Pigou and Arrow, including the analysis of the commons. It argues that there are limits to economic analysis. Our proposal is to enlarge the perspective and start thinking about a broader framework in which any pattern of influence of an agent or a group of agents over a third party, which is not mediated by any economic, social, or psychological mechanism guaranteeing the alignment of the marginal net private benefit with marginal net social benefit, can be attached the “externality” label and be scrutinized for the likely negative consequences that result from the divergence. These consequences may be significant given the many interactions between the social and economic realms, and the scope for spillovers and feedback loops to emerge. The paper also establishes a tentative and probably incomplete list of possible internalizing mechanisms for externalities under this broader framework, which includes: pricing and monetary incentives; altruism and solidarity; moral norms; reciprocity and mutual monitoring; centralized cooperative decision-making; and merger. There are clear reasons why the pricing mechanism is not appropriate in some cases. A more difficult question to answer is what factors determine which of the mechanisms is the appropriate one to rely on in a given sphere of relations and activities. The object of the paper is to encourage research and contributions from all the relevant disciplines of social sciences on the pervasive human interdependence that the notion of social externalities tries to capture. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2020–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudawp:309988&r=all |
| By: | Kanbur, Ravi |
| Abstract: | This paper considers and assesses the concept of social externalities through human interdependence, in relation to the economic analysis of externalities in the tradition of Pigou and Arrow, including the analysis of the commons. It argues that there are limits to economic analysis. Our proposal is to enlarge the perspective and start thinking about a broader framework in which any pattern of influence of an agent or a group of agents over a third party, which is not mediated by any economic, social, or psychological mechanism guaranteeing the alignment of the marginal net private benefit with marginal net social benefit, can be attached the “externality” label and be scrutinized for the likely negative consequences that result from the divergence. These consequences may be significant given the many interactions between the social and economic realms, and the scope for spillovers and feedback loops to emerge. The paper also establishes a tentative and probably incomplete list of possible internalizing mechanisms for externalities under this broader framework, which includes: pricing and monetary incentives; altruism and solidarity; moral norms; reciprocity and mutual monitoring; centralized cooperative decision-making; and merger. There are clear reasons why the pricing mechanism is not appropriate in some cases. A more difficult question to answer is what factors determine which of the mechanisms is the appropriate one to rely on in a given sphere of relations and activities. The object of the paper is to encourage research and contributions from all the relevant disciplines of social sciences on the pervasive human interdependence that the notion of social externalities tries to capture. |
| Keywords: | Financial Economics |
| Date: | 2020–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudawp:309989&r=all |
| By: | Patalano, Rosario |
| Abstract: | The evolution of Ferdinando Galiani’s thought toward social mathematic has been neglected by scholars, and his attempt to establish political arguments on the analytical basis remains unexplored. The non-systematic nature of Galiani’s intuitions, due to his laziness, largely justifies this underestimation of his scientific program. This paper intends to show that the mature abbé Galiani follows an intellectual itinerary autonomous and parallel to that followed by Marquis de Condorcet in the same years. The anti-Physiocratique querelle represents Galiani’s methodological maturation. In contrast with Physiocratic economic doctrine, based on the primacy of deductive methodology, Galiani claims for economic science the realism of circumstance against aprioristic axiomatic hypotheses and rationalist generalizations. Galiani’s project, substantially similar to Marquis de Condorcet’s approach to social science, can be defined as Newtonian social mathematics opposed to Physiocratic Cartesian social mathematics. |
| Date: | 2020–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:ncdfh&r=all |
| By: | Villar Otálora, Juan Camilo |
| Abstract: | Mediante la revisión de los aportes realizados a la teoría del crecimiento por los autores neoclásicos y por los autores de la corriente heterodoxa, el trabajo examina la validez empírica de estos modelos en los cuales la función de producción agregada se constituye como punto de partida y su principal herramienta de análisis. Para esto, se presentan dos trabajos que miden la contabilidad del crecimiento bajo el esquema neoclásico y posteriormente se procede a contrastar estos trabajos con la crítica conocida bajo el nombre de la “tiranía de la identidad contable”. A través del uso de la metodología de Mínimos Cuadrados Ordinarios, se concluye que los resultados obtenidos por los trabajos en cuestión son producto de estimaciones mal especificadas de la identidad contable del ingreso nacional. |
| Keywords: | Contabilidad del Crecimiento. Función de Producción Agregada. Identidad Contable |
| JEL: | B5 C80 E12 E13 O47 |
| Date: | 2021–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106683&r=all |
| By: | Actis Di Pasquale, Eugenio |
| Abstract: | En este artículo pretendemos determinar aquellos enfoques teórico-filosóficos del bienestar que son compatibles con los ideales de equidad, justicia y libertad, es decir, lo que se entiende como fines generales de toda política económica. Asimismo, que reconozcan en su marco normativo a la diversidad humana y la participación activa de las personas en el proceso de desarrollo. Para ello, realizamos un doble análisis comparativo de los distintos enfoques que conviven en la actualidad: la economía del bienestar, el igualitarismo liberal, el enfoque de las necesidades humanas y el de las capacidades. El primer examen procura reconocer las diferencias respecto a la métrica, criterio distributivo y la integración de la dimensión social. En cambio, el segundo compara los supuestos ontológicos, epistemológicos y éticos de cada marco normativo. |
| Keywords: | Bienestar; Teoría del Bienestar; Política Económica; |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:3455&r=all |
| By: | Jean-Philippe Bouchaud |
| Abstract: | This is an informal and sketchy review of six topical, somewhat unrelated subjects in quantitative finance: rough volatility models; random covariance matrix theory; copulas; crowded trades; high-frequency trading & market stability; and "radical complexity" & scenario based (macro)economics. Some open questions and research directions are briefly discussed. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.09692&r=all |
| By: | Fleurbaey, Marc; Kanbur, Ravi; Viney, Brody |
| Abstract: | This paper considers and assesses the concept of social externalities through human interdependence, in relation to the economic analysis of externalities in the tradition of Pigou and Arrow, including the analysis of the commons. It argues that there are limits to economic analysis. Our proposal is to enlarge the perspective and start thinking about a broader framework in which any pattern of influence of an agent or a group of agents over a third party, which is not mediated by any economic, social, or psychological mechanism guaranteeing the alignment of the marginal net private benefit with marginal net social benefit, can be attached the “externality” label and be scrutinized for the likely negative consequences that result from the divergence. These consequences may be significant given the many interactions between the social and economic realms, and the scope for spillovers and feedback loops to emerge. The paper also establishes a tentative and probably incomplete list of possible internalizing mechanisms for externalities under this broader framework, which includes: pricing and monetary incentives; altruism and solidarity; moral norms; reciprocity and mutual monitoring; centralized cooperative decision-making; and merger. There are clear reasons why the pricing mechanism is not appropriate in some cases. A more difficult question to answer is what factors determine which of the mechanisms is the appropriate one to rely on in a given sphere of relations and activities. The object of the paper is to encourage research and contributions from all the relevant disciplines of social sciences on the pervasive human interdependence that the notion of social externalities tries to capture. |
| Keywords: | Production Economics |
| Date: | 2020–08–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudawp:309990&r=all |
| By: | Walter Paternesi Meloni; Antonella Stirati |
| Abstract: | The drop in the labor share experienced in high-income countries in the last three to four decades testifies to a general divergence in the growth rates of labor productivity and average wages. In this respect, we first quantify the magnitude of this decoupling; second, we inquire into the factors that prevented wage growth from keeping pace with productivity. We endorse a ‘political economy’ approach – a line of inquiry which has been recently fueled and followed by the post-Keynesian literature – focusing on the effects on wage dynamics of some macroeconomic and institutional factors in a panel of 22 OECD economies for the post-1970 period. We find that, on average and over the cycle, only 50% of increased productivity went to workers. Our empirics indicate that labor market slack and the weakening of pro-labor institutions have acted as wage-squeezing factors; a negative effect is also found for globalization, specifically for trade openness and international capital mobility. Other aspects of the process of financialization, such as market capitalization and the dynamics of the real interest rate, seem not to have exerted a substantial impact on real wage growth. |
| Keywords: | political economy; income distribution; labor market institutions; labor market slack; globalization; financialization |
| JEL: | E25 J30 P16 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2028&r=all |
| By: | McMullen, David |
| Abstract: | By setting out the full range of confusion on the subject of socialism, the report by the Council of Economic Advisers (C.E.A.) has provided a good opportunity to both explain and defend the Marxist view on the matter. |
| Date: | 2019–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:t3kfy&r=all |
| By: | Carter, Andrew Pearce (Defenders of Wildlife) |
| Abstract: | Traditional environmental policy analysis has followed a neopositivist epistemological frame, using the natural sciences as a template as to how social-ecological problems can be analyzed. Such approaches to policy analysis have been caught up in the same crisis as the social sciences have in general: an overarching failure to create a predictive science of society or to consistently provide solutions to social problems. This has led some policy researchers to align with the interpretivist turn, which has had its own drawbacks. In this review I summarize the historical development and main tenets of both approaches, examining their advantages and disadvantages. I then review an alternative epistemological approach to social science, critical realism, which combines an ontological realism with an epistemological relativism, a focus on elucidating causal mechanisms in the social-ecological systems studied, an approach that may be particularly suited for analyzing the complex social-ecological systems studied in environmental policy analysis. |
| Date: | 2021–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:u8hgk&r=all |
| By: | Moeen, Muhammad Saad; Haider, Zeeshan; Shikoh, Sania Haider; Rizwan, Noormah; Ejaz, Amna; Davies, Stephen; Rana, Abdul Wajid |
| Abstract: | Social Accounting Matrix (SAM) multiplier analysis has been employed to assess the impacts of COVID-19 on various macroeconomic variables including Gross Domestic Product (GDP), employment, and poverty in Pakistan. SAM multiplier models are well-suited to estimate the direct and indirect effects of unanticipated demand-side shocks and short-term fluctuations on various sectors and agents in the economy, such as those caused by the COVID-19 pandemic. The results show that Pakistan’s GDP declined by 26.4 percent from mid-March to the end of June 2020 (14 weeks) compared to a non-COVID scenario. Services were hit the hardest, registering losses of 17.6 percent, followed by industry with losses of 6.7 percent. Agriculture turned out to be resilient and remained relatively unhurt, falling by 2.1 percent. All households witnessed a reduction in incomes, but higher-income quartiles appeared to have lost more than lower-income ones. Our approach for economic impact with mitigation measures is to assess the effectiveness of Emergency Response Packages (ERP) by altering the remittances to levels that reflect the magnitude of the support from the government. The total government expenditures were directed towards different kinds of households of PKR 318.6 billion (USD 2.12 billion). This led to a reduction of about USD 3.1 billion in GDP losses, which, compared to the amount spent implied a multiplier of 1.4 in GDP per PKR spent. The national poverty rate soared to 43 percent and 38.7 percent in April and May respectively. The Government’s cash transfers program proved highly effective and led to 11 percent reduction in poverty rate during the pandemic. The recovery scenarios indicate a cumulative GDP loss of USD 11.8 billion and 11.1 USD billion under slow and fast recovery scenarios, respectively, by December 2020. Our estimates show that Pakistan’s annual GDP (at market prices) will register a decline of 4.6 percent in the year 2020 due to negative effects of the pandemic and sluggish economic recovery. Poverty is expected to stabilize at 27.6 percent and 27.4 percent for the two recovery scenarios by December 2020. |
| Keywords: | PAKISTAN; SOUTH ASIA; ASIA; models; Coronavirus; coronavirus disease; Coronavirinae; COVID-19; economic impact; households; household income; poverty; gross national product; Social Accounting Matrix (SAM) |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2001&r=all |
| By: | Sanguinetti, Angela; Hibbert, Kathleen |
| Abstract: | Recent research suggests there is broader interest in cohousing in the US than its current niche market suggests. However, the lack of ideological diversity among cohousing adopters does not seem malleable. Cohousing adopters are predominately liberal and liberal ideology strongly predicts interest in cohousing. This research explored perceptions (including misperceptions) of cohousing and tested whether framing the concept differently could make it more appealing to Republicans and conservatives. Survey participants were randomly assigned to receive one of two versions of a survey, identical in all ways except in one version the term pocket neighborhoods was substituted for cohousing. Results revealed substantial misunderstanding of the concept of cohousing, particularly that it involves multiple unrelated households living under the same roof. There was no framing effect; those who identified as Republican or conservative did not find cohousing more appealing when it was called pocket neighborhoods. The most cited perceived benefits of cohousing were social interaction, relationships, and support, while lack of privacy and personal space topped the list of drawbacks. Understanding these common perceptions about cohousing can help stakeholders communicate more effectively about this model that promises many benefits to an apparently untapped prospective market. |
| Keywords: | Architecture, Social and Behavioral Sciences, cohousing, adoption, US, collectivist housing |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt05n2r473&r=all |
| By: | Sasaki, Hiroaki; Hagiwara, Takefumi; Pham, Huong; Fukatani, Noriki; Ogawa, Shogo; Okahara, Naoto |
| Abstract: | This study uses a growth model with automation technology to consider two classes---workers and capitalists---and investigates how advances in automation technology affect economic growth and income distribution. In addition to the two production factors labor and traditional capital, we consider automation capital as the third production factor. We also introduce Pasinetti-type saving functions into the model to investigate how the difference between the capitalists' and workers' saving rates affect economic growth and income distribution. When the capitalists' saving rate is higher than a threshold level, per capita output exhibits endogenous growth irrespective of the workers' savings rate. In this case, the income gap between workers and capitalists widens over time. When the capitalists' saving rate is less than the threshold level, two different long-run states occur depending on the workers' saving rate: the capitalists' own automation capital share approaches a constant, and it approaches zero. In both cases, the per capita output growth is zero and the income gap between the two classes becomes constant over time. |
| Keywords: | automation technology; endogenous growth; income distribution |
| JEL: | E25 O11 O33 O41 |
| Date: | 2021–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106481&r=all |
| By: | Hou, Bohan |
| Abstract: | The digital economy has become one of the most important sectors in global GDP.Personal data is the new asset class that creates value through the applications of cybertechnologies and Artificial Intelligence. However, there are increasing concerns over the privacy invasions and human rights violations associated with the exploitation of personal data. Various data laws were made in nations to balance the data fluidity and privacy protections. However, most laws have inherent limitations and underenforcement issues that fail to achieve their aims and protection principles. Utilizing a behavioral economics theoretical framework, this study categorizes the issues and causes to Information Asymmetry, Bounded Rationality, Power Imbalance, and Technical Incapacity. The study makes a novel contribution by proposing a global data governance scheme to address the limitations of data laws. The scheme adopts a Libertarian Paternalism approach and develops seven principles in the framework design. Elements and components in the scheme include individuals, data controllers, privacy rating frameworks, meta-data and privacy configuration, reports, Automated Consent Management (ACM), Bureaus, and signatures, etc. The components will operate on an interoperable and global data management platform. Visual diagrams are developed to describe the various forms of interactions between components and procedures. A balance between privacy protection and data fluidity is found through experimental scenarios such as Ordinary Data Request, Sensitive Data Request, Inconsistency Checks, Data Rights Exercise, Monitored Data Transfer, Broadcast and Notice. The scenarios analyzed are not exhaustive but serve as the meaningful starting point to inspire more designs and discussions from scholars. |
| Date: | 2021–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:2b9dc&r=all |
| By: | Luca Fiorito,; Massimiliano Vatiero |
| Abstract: | This note reproduces an unpublished paper on "Social Values in Economic Consumption" which Knight prepared for the Social Science Research Council (SSRC) Summer Conference, on Nantucket, Massachusetts in June 1931. This paper sheds new light on Knight in two important respects. First, it presents, in a more systematic fashion, Knight’s criticism of what he perceived to be the then standard theory of consumption. Specifically, Knight argued that an individual's consumption is dictated more by his income in relation to others than by mere utility maximization—a notion now commonly known as relative income hypothesis. In this connection, Knight also pointed out that a general increase in income, not only leaves the individual’s relative position in society unaltered but makes her/his situation worse off due to the peculiar characteristics of the market for “personal services.†Second, this unpublished address provides further evidence of how, in spite of some substantial differences in terms of methodology, his research interests converged in many respects with those of the institutionalists. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwprg:2021/03&r=all |