nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2021‒05‒03
twelve papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Modeling Managerial Search Behavior based on Simon's Concept of Satisficing By Friederike Wall
  2. An investigation into modelling approaches for industrial symbiosis: a literature review By Demartini, Melissa; Bertani, Filippo; Tonelli, Flavio; Raberto, Marco; Cincotti, Silvano
  3. The triple day thesis : A policy conversation on the Marxist feminist-capability theory of motherhood and the 2021 Family Security Act proposal By Elaine Agyemang Tontoh
  4. Kapitalismus als System zur Verwirklichung moralischer Anliegen - Ordonomische Denkanstöße By Pies, Ingo
  5. The Normal Degree of Capacity Utilization: The History of a Controversial Concept By Trezzini, Attilio; Pignalosa, Daria
  6. New directions for RIS studies and policies in the face of grand societal challenges By Franz Tödtling; Michaela Trippl; Veronika Desch
  7. Huella de Carbono para la Economía Chilena 2017 By Felipe Avilés-Lucero; Gabriel Peraita; Camilo Valladares
  8. Social Norms Offer Explanation for Inconsistent Effects of Incentives on Prosocial Behavior By Caroline Graf; Eva-Maria Merz; Bianca Suanet; Pamala Wiepking
  9. Two-Dimensional Constrained Chaos and Industrial Revolution Cycles with Mathemetical Appendices By Makoto Yano; Yuichi Furukawa
  10. Mobilizing innovation for the global green shift: The case for demand-oriented innovation policy By Jan Fagerberg
  11. Wettbewerb und Gemeinwohl By Christoph Engel
  12. Zeit für Moral - Eine Replik By Pies, Ingo

  1. By: Friederike Wall
    Abstract: Computational models of managerial search often build on backward-looking search based on hill-climbing algorithms. Regardless of its prevalence, there is some evidence that this family of algorithms does not universally represent managers' search behavior. Against this background, the paper proposes an alternative algorithm that captures key elements of Simon's concept of satisficing which received considerable support in behavioral experiments. The paper contrasts the satisficing-based algorithm to two variants of hill-climbing search in an agent-based model of a simple decision-making organization. The model builds on the framework of NK fitness landscapes which allows controlling for the complexity of the decision problem to be solved. The results suggest that the model's behavior may remarkably differ depending on whether satisficing or hill-climbing serves as an algorithmic representation for decision-makers' search. Moreover, with the satisficing algorithm, results indicate oscillating aspiration levels, even to the negative, and intense - and potentially destabilizing - search activities when intra-organizational complexity increases. Findings may shed some new light on prior computational models of decision-making in organizations and point to avenues for future research.
    Date: 2021–04
  2. By: Demartini, Melissa; Bertani, Filippo; Tonelli, Flavio; Raberto, Marco; Cincotti, Silvano
    Abstract: The aim of this paper is to understand how to model industrial symbiosis networks in order to favour its implementation and provide a framework to guide companies and policy makers towards it. Industrial symbiosis is a clear example of complex adaptive systems and traditional approaches (i.e., Input/Output analysis, Material flow analysis) are not capable to capture these dynamics behaviours. Therefore, the aim of this literature review is to investigate: i) the most used modelling and simulation approaches to analyse industrial symbiosis and ii) their characteristics in terms of simulation methods, interaction mechanisms and simulations software. Findings from our research suggest that a hybrid modelling and simulation approach, based on agent-based and system dynamics, could be an appropriate method for industrial symbiosis analysis and design.
    Keywords: industrial symbiosis, hybrid modelling and simulation approach, literature review, system dynamics, agent based modelling
    JEL: C63
    Date: 2021–04–27
  3. By: Elaine Agyemang Tontoh (Department of Economics, New School for Social Research)
    Abstract: The triple day thesis which is conceptualized within an integrated Marxist feminist-capability framework centers on promoting maternal aspirations and capabilities, maternal self-reproduction, and motherhood compensation. A triple day mother is a woman who engages in the reproductive work of childbearing and childrearing (the single day), in addition to waged work if she is employed ( the double day), but is also able to engage in self-reproductive work (the triple day). The inability of mothers to undertake self-reproductive activities describes the triple day problem. This paper highlights the synergies between the proposed Family Security Act and the Marxist-feminist-capability theoretic framework for the study of the triple day. It makes the case that any family policy proposal to create incentives for childbearing and childrearing should not be discussed separately from a motherhood policy proposal to promote maternal capabilities and maternal self-reproduction among the women who engage daily in those biological and social reproduction processes. The paper concludes by discussing why the proposed Family Security Act may be necessary but not sufficient to resolve the problem of the triple day.
    Keywords: Triple day problem, Family Security Act, maternal self-reproduction, motherhood compensation, Marxist feminism, capabilities approach, family policy
    JEL: B51 B54 J13 J18 I38
    Date: 2021–04
  4. By: Pies, Ingo
    Abstract: Dieser Beitrag formuliert aus der wirtschaftsethischen Perspektive des ordonomischen Forschungsprogramms einige Denkanstöße, die dazu beitragen sollen, ein differenzierte(re)s Moralurteil über 'Kapitalismus' zu entwickeln: Kapitalismus setzt Wettbewerbsanreize ein, um Produktionseffizienz und Innovationsdynamik zu fördern. Durch solche Wettbewerbsanreize sind die einzelnen individuellen Handlungen und ihre sozial aggregierten Ergebnisse einerseits intentional entkoppelt, andererseits aber institutionell verknüpft. Auf diese Weise avancieren die Anreizwirkungen des kapitalistischen Ordnungsrahmens zum system(at)ischen Ort der Moral. Von ihnen hängt es ab, ob die Ergebnisse normativ erwünscht oder unerwünscht sind-und inwiefern es gelingt, den Kapitalismus als System zur Verwirklichung moralischer Anliegen in Dienst zu nehmen.
    Keywords: Kapitalismus,Konkurrenz,Marktwirtschaft,Moral,Umweltschutz,Wachstum,Gender (Pay) Gap,Capitalism,Competition,Market Economy,Morality,Environmental Protection,Growth
    Date: 2021
  5. By: Trezzini, Attilio (Roma Tre University); Pignalosa, Daria (Roma Tre University)
    Abstract: The determination of the normal degree of capacity utilization has been addressed in the analysis of radically different problems and with different theoretical approaches. By going back over the history of these analyses, the paper highlights the main findings that have emerged from the early literature on the subject and identifies some generally shared principles on the one hand and different methodological positions on the other. Finally, attention is drawn to some issues that seem susceptible to further investigation.
    Keywords: capacity utilization; choice of technique; demand-led growth; competition
    JEL: B51 D21
    Date: 2021–04
  6. By: Franz Tödtling (Vienna University of Economics and Business); Michaela Trippl (University of Vienna); Veronika Desch (University of Vienna)
    Abstract: The regional innovation system (RIS) approach has become a widely used framework for examining the dynamics of innovation across space as well as for crafting policies aimed at promoting the innovation capacity of regions. The dominant focus of RIS studies and regional innovation policies has been on technological innovation that drives competitiveness and economic growth. In light of persistent environmental and social challenges such as climate change, health problems, and growing inequalities, this narrow understanding of innovation appears to be obsolete. This article claims that the RIS approach requires critical rethinking and reassessment to provide a solid basis for informing the next generation of regional innovation policies. We explore how RIS scholarship and policies could benefit from engaging more deeply with an alternative understanding of innovation. Inspired by recent work on responsible innovation, mission-oriented and transformative innovation policies, we develop the notion of ‘challenge-oriented RIS’ (CORIS). In contrast to conventional understandings of RIS, this approach embraces a broader and more critical understanding of innovation, captures the directionality of change, opens up to new innovation actors and novel coordination mechanisms between various stakeholders and territorial scales, and pays more attention to the application side and upscaling of innovation within the region and beyond. Acknowledging that regions vary in their capacity to fashion transformative change and challenge-oriented innovation, the paper outlines new directions for place-based innovation policies.
    Keywords: regional innovation systems, grand societal challenges, sustainability transitions, challenge-oriented regional innovation policy
    Date: 2021
  7. By: Felipe Avilés-Lucero; Gabriel Peraita; Camilo Valladares
    Abstract: In the present paper, we estimate the carbon footprint of Chilean industries in terms of CO2 equivalent for a set of greenhouse gases, using an input-output approach that accounts for the different electricity generation technologies. The objective of this study is to provide a methodology to measure the carbon footprint and to contribute to the analysis of the reduction of emissions and the effect that different sectors make to this purpose. Our results show that, for the year 2017, the generation of electricity based on coal and the manufacturing industry are located as the largest direct emitters of CO2, while in terms of carbon footprint, the manufacturing industry and mining show the highest levels of incorporated CO2. Regarding final demand, exports have the highest share of the carbon footprint, mainly explained by the orientation towards the external market of mining and part of the manufacturing industry.
    Date: 2021–04
  8. By: Caroline Graf; Eva-Maria Merz; Bianca Suanet; Pamala Wiepking
    Abstract: Incentives have surprisingly inconsistent effects when it comes to encouraging people to behave prosocially. Classical economic theory, according to which a specific behavior becomes more prevalent when it is rewarded, struggles to explain why incentives sometimes backfire. More recent theories therefore posit a reputational cost offsetting the benefits of receiving an incentive -- yet unexplained effects of incentives remain, for instance across incentive types and countries. We propose that social norms can offer an explanation for these inconsistencies. Ultimately, social norms determine the reputational costs or benefits resulting from a given behavior, and thus variation in the effect of incentives may reflect variation in norms. We implemented a formal model of prosocial behavior integrating social norms, which we empirically tested on the real-world prosocial behavior of blood donation. Blood donation is essential for many life-saving medical procedures, but also presents an ideal testing ground for our theory: Various incentive policies for blood donors exist across countries, enabling a comparative approach. Our preregistered analyses reveal that social norms can indeed account for the varying effects of financial and time incentives on individual-level blood donation behavior across 28 European countries. Incentives are associated with higher levels of prosociality when norms regarding the incentive are more positive. The results indicate that social norms play an important role in explaining the relationship between incentives and prosocial behavior. More generally, our approach highlights the potential of integrating theory from across the economic and behavioral sciences to generate novel insights, with tangible consequences for policy-making.
    Date: 2021–04
  9. By: Makoto Yano (Institute of Economic Reserch, Kyoto University and RIETI); Yuichi Furukawa (Aichi University and RIETI)
    Abstract: Between the 1760s and 1980s, we have experienced at least three industrial revolutions. We explain such cycles as ergodic chaos and relate it to the average long-run interest rate and intellectual property protection. Because innovation dynamics is intrinsically multi-dimensional, we need newly to develop a structural characterization of multi-dimensional ergodic chaos suitable for an economic analysis. Introducing such a characterization for the two-dimensional case, we show that if the monopolistic use of a new invention lasts eight years, an industrial-revolution-like burst of new technologies recurs about every one hundred years, given empirically reasonable values of the determinants of a long-run interest rate.
    Keywords: industrial revolutions, chaotic cycles, intellectual properties, market quality dynamics
    JEL: C62 E32 O41
    Date: 2021–03
  10. By: Jan Fagerberg (Center for Technology, Innovation and Culture, University of Oslo)
    Abstract: This paper focuses on the role of demand-oriented innovation policies in supporting the global green shift. Three specific cases, all from Europe, in which change has been very quick indeed, are considered: Wind energy in Denmark, the German Energiewende and electrical cars in Norway. The emphasis is particularly on the nature of the policies that were adopted, how they came about, and their impacts on a national as well as global scale. It is shown that demand-oriented innovation policies played a decisive role in all three cases and contributed to encourage (green) innovation, create new jobs and significantly speed up the transition. Moreover, these policies had very important global repercussions.
    Date: 2021–04
  11. By: Christoph Engel (Max Planck Institute for Research on Collective Goods)
    Abstract: Die Worte Wettbewerb und Gemeinwohl kommen im Grundgesetz nicht vor. In ständiger Rechtsprechung betont das Bundesverfassungsgericht, dass das Grundgesetz keine Entscheidung über die deutsche Wirtschaftsverfassung getroffen hat. Gleichwohl hat das Gericht häufig über das Verhältnis von Wettbewerb und Gemeinwohl entschieden. Es hat den Wettbewerb, also das freie Spiel der Kräfte, vor allem als eine Gefahr für das Gemeinwohl gedeutet. Vor allem sind die einschlägigen Entscheidungen aber sehr kursorisch. Dieser Beitrag systematisiert die Entscheidungspraxis und stellt ihr Kerngedanken der Wettbewerbstheorie entgegen. Für den wirtschaftlichen Wettbewerb finden sich diese Gedanken in der ökonomischen Theorie, für den Stimmenwettbewerb in der politischen Theorie, für den Meinungswettbewerb in der publizistischen Theorie, für den Wettbewerb der Rechtsordnungen in Albert O. Hirschmans Theorie von Widerspruch und Abwanderung.
    Keywords: Wettbewerb, Gemeinwohl, Bundesverfassungsgericht, wirtschaftlicher Wettbewerb, Stimmenwettbewerb, Meinungswettbewerb, Wettbewerb der Rechtsordnungen
    JEL: A12 D01 D02 D04 D40 D60 D72 F00
    Date: 2021–04–22
  12. By: Pies, Ingo
    Abstract: Sowohl Gerhard Minnameier als auch Michael Schramm haben zu meinem Aufsatz über 'Donald Blacks Moralsoziologie' einen ausführlichen Kommentar verfasst. Dieser Text dokumentiert meine Replik auf ihre kritischen Anmerkungen.
    Keywords: Moralsoziologie,Ordonomik,Tugend,Moderne,Moral der Nähe,Moral der Distanz,Moral sociology,ordonomics,virtue,modernity,morality of closeness,morality of distance
    Date: 2020

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