nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2021‒05‒17
fifteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. The History of Pollution ‘Externalities’ in Economic Thought By Spash, Clive L.
  2. Why the Flow of Funds Don’t Explain the Flow of Funds: Sectoral Balances, Balance Sheets, and the Accumulation Fallacy By Roth, Steve
  3. Reconceptualising Freedom in the 21st Century: Degrowth vs. Neoliberalism By Felix Windegger; Clive L. Spash
  4. Oops!... I Did It Again: Understanding Mechanisms of Persistence in Prosocial Behavior By Bruhin, Adrian; Goette, Lorenz; Haenni, Simon; Jiang, Lingqing
  5. Symbol Dynamics, Information theory and Complexity of Economic time series By Geoffrey Ducournau
  6. Fiscal Multipliers: A Heterogeneous-Agent Perspective By Broer, Tobias; Krusell, Per; Öberg, Erik
  7. Myopic Loss Aversion and Investment Decisions: From the Laboratory to the Field By Kazi Iqbal; Asad Islam; John List; Vy Nguyen
  8. Reflections on the Dasgupta Review on the economics of biodiversity By Groom, Ben; Turk, Zachary
  9. Evolution of Feminism and Feminism Movements in India By Janvi Pate; Anubha Sinha
  10. Consolidating behavioural economics and rational choice theory: Insights from inequality research By Klarizze Anne Martin Puzon; Rachel M. Gisselquist
  11. Faire une recherche critique – des Critical Management Studies et au-delà … By Yvon Pesqueux
  12. Ergodicity in Economics: a Decision theoretic evaluation By Andreozzi, Luciano
  13. Évolution des politiques de concurrence en droit de l'UE : de la Wettbewerbsordnung ordolibérale à la More Economic Approach néolibérale ? By Frédéric Marty
  14. Trabajo de investigacíon no. 214 | Las cooperativas de usuarios en Uruguay: El desafío del hábitat como común By Ignacio DE SOUZA; Irene VALITUTTO; Claire SIMONNEAU
  15. Économie politique des associations. Transformations des organisations de l’économie sociale et solidaire Anne Le Roy et Emmanuelle Puissant (dir.), François-Xavier Devetter, Sylvain Vatan, coll. « Ouvertures économiques », De Boeck supérieur, 2019, 264 pages By Nadine Richez-Battesti

  1. By: Spash, Clive L.
    Abstract: Today, environmental economics is the response of the neoclassical economic school to the ecological crisis, but at one time its leading contributors regarded it as a revolutionary development that would change the conduct and content of economics as a discipline. Understanding and addressing environmental pollution was core to that potential paradigm shift. In tracing the history of conceptualising pollution as an externality and market failure this paper covers the development of ideas by Marshall, Pigou, Pareto, Coase, Stigler, Samuelson, Ciciacy-Wantrup and Kapp. Pollution externality theory is shown to have incorporated an elitist ethics and liberal market ideology. As a market failure pollution was deemed a minor correctible error of the price system. Monetary valuation of social and environmental harm became the means of justifying optimal levels of pollution. Neoliberal theories of spreading property rights further watered down potential interventionist aspects. Bio-physical realism, in the work of Kneese, Ayres and d’Arge, and social realism in Kapp’s theory of cost shifting were lost once environmental economics adopted a deductivist mathematical formalism. Kapp’s alternative theory is based on a classic institutionalists economic understanding of cost shifting and power relations. It advocates a public policy response in the form of objective social minima achieved via regulation and planning. This theory has until now been successfully supressed to prevent a potential revolutionary paradigm shift in economic price theory.
    Keywords: externalities; market failure, cost shifting; price theory; pollution; Pigou; Coase; Kapp; paradigm shift; environmental economics, neoclassical economics; institutional economics, neoliberal
    Date: 2021
  2. By: Roth, Steve
    Abstract: This paper highlights and unpacks a little-known reality about the Financial Accounts of the United States: the Flows matrix on page 1 of the Federal Reserve’s quarterly Z.1 report does not explain period-to-period changes in the Levels matrix on page 3. The same is true of the sectoral Flow and Levels tables underlying those matrixes. Nor do those tables provide balance-sheet-complete accounting of household or national wealth accumulation. Measures of net saving/investment/capital formation and accumulation, and national wealth accumulation, diverge by tens of trillions of dollars. The discrepancy is explained and resolved by assembling a balance-sheet-complete empirical derivation of comprehensive U.S. “Haig-Simons” income, based on the Integrated Macroeconomic Accounts. The comprehensive measure is 23% higher than national accounts’ “primary” income. Relationships to the Piketty/Saez/Zucman Distributional National Accounts (DINAs) are discussed, along with implications for economic theory and empirical modeling, both mainstream and heterodox/Post-Keynesian.
    Keywords: wealth; flow of funds; capital; accumulation; integrated macroeconomic accounts; IMAs; income; gains; holding gains; capital gains; haig-simons
    JEL: B4 B5 E21 E22 E25
    Date: 2021–05
  3. By: Felix Windegger; Clive L. Spash
    Abstract: The hegemonic role of neoliberal ideas in todayÂ’s political-economic thought and practice has shaped the common way of thinking about freedom in Western society and more generally in the international community. This involves a negative, individualistic and market-centred interpretation of the concept. In contrast, visions of a degrowth society offer a radical alternative based on Cornelius CastoriadisÂ’ notion of autonomy. This paper outlines how this formulation of freedom can be conceptualised relative to the predominant neoliberal theory. We present an overview and contrast of both positions and then follow this up with an empirical study. More specifically, we probe the extent to which the degrowth movement actually follows the Castoriadian theory of freedom as opposed to the hegemonic neoliberal conception. Results are reported from a survey conducted at the 2018 Degrowth Conference in Malmö, Sweden. While survey participants were found to hold positions consistent with the Castoriadian theory, we also identify problematic and under-conceptualised aspects in their understanding of freedom. This points to the need for the degrowth movement to directly address its theoretical foundations, and elaborate on and strengthen its vision of freedom compatible with a future degrowth society.
    Keywords: Political economy; freedom; Degrowth; neoliberalism; autonomy; social-ecological economic transformation; Castoriadis; Hayek; Friedman
    JEL: A13 B5 O44 P1 P48 Q57
    Date: 2021
  4. By: Bruhin, Adrian; Goette, Lorenz; Haenni, Simon; Jiang, Lingqing
    Abstract: We test whether asking individuals to donate blood leads to a persistent change in prosocial behavior, and what the underlying mechanisms are. In a large-scale field experiment, we randomize asking blood donors to turn out, and follow them over up to 18 months. We observe significant behavioral persistence over at least one year. We use naturally occurring rainfall as a second instrument for donor turnout to test whether persistence is due to habit formation (Stigler and Becker, 1977) or a persistent increase in motivation independent of past donation. Our results strongly favor habit formation as the underlying mechanism.
    Keywords: field experiment; Habit formation; Natural Experiment; prosocial behavior
    Date: 2021–01
  5. By: Geoffrey Ducournau
    Abstract: We propose to examine the predictability and the complexity characteristics of the Standard&Poor500 dynamics behaviors in a coarse-grained way using the symbolic dynamics method and under the prism of the Information theory through the concept of entropy and uncertainty. We believe that experimental measurement of entropy as a way of examining the complexity of a system is more relevant than more common tests of universality in the transition to chaos because it does not make any prior prejudices on the underlying causes associated with the system dynamics, whether deterministic or stochastic. We regard the studied economic time series as being complex and propose to express it in terms of the amount of information this last is producing on different time scales and according to various scaling parameters.
    Date: 2021–05
  6. By: Broer, Tobias; Krusell, Per; Öberg, Erik
    Abstract: We use an analytically tractable heterogeneous-agent (HANK) version of the standard New Keynesian model to show how the size of fiscal multipliers depends on i) the distribution of factor incomes, and ii) the source of nominal rigidities. With sticky prices but flexible wages, the standard representative-agent (RANK) model predicts large multipliers because profits fall after a fiscal stimulus and the resulting negative income effect makes the representative worker work harder. Our HANK model, where workers do not own stock and thus do not receive profit income, predicts smaller fiscal multipliers. In fact, they are smaller with sticky prices than with flexible prices. When wages are the source of nominal rigidity, in contrast, fiscal multipliers are close to one, independently of income heterogeneity and price stickiness.
    Date: 2021–01
  7. By: Kazi Iqbal; Asad Islam; John List; Vy Nguyen
    Abstract: Whether, and to what extent, behavioral anomalies uncovered in the lab manifest themselves in the field remains of first order importance in finance and economics. We begin by examining behavior of retail traders/investors making investment decisions in constructed laboratory markets. Our results show that the behaviors of the traders are consistent with myopic loss aversion. We combine the lab results with a unique individual-level matched dataset on daily stock market transactions and portfolio positions over a two year period. We find that lab behaviors help to predict, but do not fully capture, the essential real-world trading analogs of retail traders.
    Date: 2021
  8. By: Groom, Ben; Turk, Zachary
    Abstract: The Dasgupta Review provides a rich overview of the economics of biodiversity, paints a bleak picture of the current state of biodiversity, and is a call to arms for action in anticipation of the CBD COP 15. The Review takes a global perspective aimed at the high level of international and national policy on biodiversity, while elucidating the very local nature of biodiversity threats and values. The approach is orthodox in its diagnosis via the language of externalities, natural capital, shadow pricing, asset returns, and the suite of remedial policies that follow. Yet, at its centre is an ‘unorthodox’ perspective: the economy is embedded in the environment and growth is limited. We offer reflections on this framing in light of its objectives for biodiversity. The limits to growth message will be criticised and applauded in equal measure by different economists. The central place of valuation and the aggregated concept of biodiversity will draw criticism from outside the discipline. Yet the Review provides a foundation for biodiversity economics, and its largely orthodox framing may invoke the intended step change in the mainstream approach to economic growth.
    Keywords: biodiversity; Dasgupta Review; economic growth; limits to growth; Natural capital
    JEL: N0
    Date: 2021–05–01
  9. By: Janvi Pate (Indian Institute of Management Kozhikode); Anubha Sinha (Indian Institute of Management Kozhikode)
    Abstract: Feminism as an ideology is associated with women’s rights and women’s movements across the world. The purpose of this paper is to clear the misconceptions about feminism in the third world countries by highlighting the major feminist movements in India. Firstly, it talks about the evolution of feminism in India and across the globe. It showcases the works of feminists like Mahatma Phule, Raja Ram Mohan Roy, Ishwarchandra Vidyasagar and talks about Brahminical feminism in India. It then draws attention to feminism after independence when ‘The Committee for the Status of Women in India’ was set up to review the status of women in the country. It also discusses different prominent movements which took place in India like the Shetkari movement, Chipko movement, Hindu Militant feminism, etc. and how some of those movements led to the enactment of new laws favoring women while how some proved negative for the cause of feminism. The paper concludes with an analysis on Indian feminism, for which different opportunities to overcome threats and weaknesses are discussed.
    Keywords: Feminism in India, evolution of feminism, movements in India, feminist ideology
    Date: 2021–03
  10. By: Klarizze Anne Martin Puzon; Rachel M. Gisselquist
    Abstract: Using illustrations from research on inequality, this paper offers evidence on the strengths of 'behavioural synthesis', i.e. the reconciliation between neoclassical and behavioural economics. We compare how theoretical models of absolute and relative inequality have evolved from assumptions of income maximization to status-seeking competition, and to altruism. We emphasize the relevance of experiments in testing competing theories and mitigating empirical shortcomings. We conclude that methodological pluralism, i.e.
    Keywords: Inequality, Behavioral economics, Behaviour, Methodology (Economics)
    Date: 2021
  11. By: Yvon Pesqueux (ESD - Équipe Sécurité & défense - CNAM - Conservatoire National des Arts et Métiers [CNAM])
    Abstract: Ce texte est organisé de la manière suivante : après une introduction consacrée à quelques remarques introductives (les errances conceptuelles du managérialisme, les errances idéologiques du managérialisme), il va présenter successivement : le champ des Critical Management Studies (Fondements des approches généralistes des Critical Management Studies : La critique des postulats positivistes, la centralité des rapports de pouvoir et de domination , « Anti-performativité » et « performativité critique », la non-neutralité du langage, le rejet du déterminisme, la résistance, les organisations alternatives puis une synthèse de ces éléments) ; Langage et performativité (le « tournant performatif ») (l'approche de J. L. Austin, de la performativité, l'énonciation-d'après Emile Benveniste) ; les deux grands courants des théories critiques de l'hypothèse généraliste (la Labour Process Theory, le poststructuralisme) ; un focus sur la pensée de Michel Foucault : de la généalogie de l'enfermement au souci de soi (considérations générales, l'analyse des mécanismes d'enfermement. Un éclairage nouveau sur le savoir, le pouvoir et leurs liens, L'histoire de la folie, Surveiller et punir, une nouvelle conception des rapports « pouvoir-savoir », Le souci de soi : une problématique éthique-le « retour » aux Grecs : une conception esthétique de la morale-l'éthique comme culture de soi, critiques et intérêts actuels, ouverture sur les sciences de gestion) ; un focus sur G. Deleuze & F. Guattari : Capitalisme et Schizophrénie : l'Anti-Oedipe ou l'éthique de la responsabilité avec le refoulement et la répression du désir au service de la société (La machine désirante-La nature comme processus de production et la récupération catégorisatrice de la psychanalyse, Psychanalyse et familialisme : La sainte famille-Du rôle forcené conféré à l'Oedipe dans la structuration familiale et sociale, Sauvages, barbares et civilisés-La machine territoriale, despotique et moderne comme modes de socialisation-répression, Introduction à la schizo-analyse-Du potentiel révolutionnaire du désir et de sa récupération sociale, Appendice : Bilan programme pour machines désirantes-Définition et théorie de la machine désirante) ; les approches postcoloniales : une critique des fondements culturalistes des sciences de gestion (L'hybridation comme issue critique à l'évolutionnisme culturel et social et au diffusionnisme, Le matérialisme culturel des Cultural Studies une critique « sage » et démagogique, Les auteurs de la critique postcoloniale-Edward W. Saïd-La perspective anthropologique de la « culture des aires » d'Arjun Appadurai-Homi K. Bhabha et l'hybridation-Gayatri Chakravorty Spivak-Kimberlé Williams Crenshaw-La Critical Race Theory de Tara J. Yosso, Les approches décoloniales, La critique Queer (la perspective queer,
    Date: 2021–04–17
  12. By: Andreozzi, Luciano
    Abstract: Peters (2019) presents a new version of the St. Petersburg paradox that allegedly reveals a weakness of orthodox decision theory under uncertainty. I use a variant of Rabin (2000) calibration theorem to show that the new paradox only arises because the author implicitly assumes an unbounded utility function for money. I also assess the author's claim that orthodox decision theory is wrong in insisting on utility functions to be bounded and find it unconvincing.
    Date: 2021–05–05
  13. By: Frédéric Marty (Université Côte d'Azur, France; GREDEG CNRS)
    Abstract: Les enjeux de l'encadrement concurrentiel de l'économie numérique conduisent à proposer d'ajouter, au travers du Digital Market Acts, au critère de l'efficacité des critères reliés à la contestabilité des marchés et à la loyauté des relations inter-entreprises. Sur le seul volet de l'application des règles de concurrence, la réalisation d'une balance des effets tend à s'effacer au profit de considérations d'inspiration plus ordolibérale, telle la responsabilité particulière de l'opérateur dominant. Alors que l'approche plus économique devait supplanter cette conception des règles de concurrence qui avait inspiré le modèle européen, il apparaît que la politique de concurrence revêt une nouvelle coloration ordolibérale dans le contexte de l'économie numérique. Ce document de travail se propose de retracer la dynamique historique de la politique de concurrence européenne en analysant les liens entre ordolibéralisme et approche par les effets, en insistant sur leur proximité originelle dans le néolibéralisme des années 1930 et sur leur divergence à partir du développement de la Seconde Ecole de Chicago dans les années 1950. Il discute également l'hypothèse formulée par le courant Law and Political Economy selon laquelle ces deux approches s'intègrent dans un même ensemble. Les divergences quant à la place de l'efficacité par rapport aux enjeux de répartition, de souveraineté économique et de libertés économiques et politiques constituent de puissants éléments de différenciation.
    Keywords: économie et droit de la concurrence, économie numérique, ordolibéralisme, efficacité, loyauté
    JEL: K21 L41 L42 B21 B25 B52
    Date: 2021–05
  14. By: Ignacio DE SOUZA; Irene VALITUTTO; Claire SIMONNEAU
    Abstract: Este artículo comparte una visión transversal sobre un movimiento social y colectivo que cuestiona la idea de propiedad individual por la vivienda. Dicho movimiento junto a un marco legal innovador en 1968 (Ley Nacional de Vivienda) dan origen al sistema cooperativo de vivienda uruguayo.El enfoque de este análisis presenta al sistema de las cooperativas de vivienda por ayuda mutua y articula posiciones de algunos de los actores más relevantes del mapa sociopolítico uruguayo, involucrados con su historia.Desde la mirada del autor principal, el aporte de la ayuda mutua y el rol de los Institutos de Asistencia Técnica interdisciplinarios son fundamentales y atraviesan al sistema cooperativo. Sistema que se presenta en este artículo a través de cinco claves de reflexión: 1. el contexto histórico; 2. las leyes y las instituciones; 3. la asistencia técnica y el trabajo interdisciplinario; 4. la ayuda mutua, auto construcción y autogestión y 5. la propiedad colectiva.Esta síntesis analítico-descriptiva ilustra una propuesta de innovación urbana y legal formulada en la segunda mitad de los años 1960, vigente hasta hoy en Uruguay.
    Keywords: Autres pays
    JEL: Q
    Date: 2021–05–07
  15. By: Nadine Richez-Battesti (LEST - Laboratoire d'économie et de sociologie du travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)
    Keywords: associations,transformation des organissations,ESS
    Date: 2020–07–08

This nep-hme issue is ©2021 by Carlo D’Ippoliti. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.