nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2021‒06‒21
28 papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. The Values of Nature By Clive L. Spash; Tone Smith
  2. Social Ecological Economics By Clive L. Spash
  3. Mission-Oriented Policies and the "Entrepreneurial State" at Work: An Agent-Based Exploration By Giovanni Dosi; Francesco Lamperti; Mariana Mazzucato; Mauro Napoletano; Andrea Roventini
  4. La science économique comme idéologie. La science de gestion comme viatique de l’actionnaire By Eric Brunat; Jacques Fontanel
  5. Economy 4.0: Employment effects by occupation, industry, and gender By Eder, Andreas; Koller, Wolfgang; Mahlberg, Bernhard
  6. Modeling the out-of-equilibrium dynamics of bounded rationality and economic constraints By Oliver Richters
  7. Women's empowerment in Colombia: A multidimensional approach By Rodríguez Guerrero, Esmeralda; Nimeh, Zina; Franco Correa, Andrea
  8. Multidimensional perspectives on inequality: conceptual and empirical challenges By Anand, Paul; Chiappero-Martinetti, Enrica; Corneo, Giacomo; Mcknight, Abigail; Moro, Esteban; O'Brien, Dave; Peragine, Vito; Stuhler, Jan
  9. Twórcy i innowacje w myśli J.A. Schumpetera By Karbowski, Adam
  10. Interdependence of Growth, Structure, Size and Resource Consumption During an Economic Growth Cycle By Carey W. King
  11. Profit Sharing as a Bargaining Weapon Against Unions By Vladimir Pecheu
  12. Gathering round Big Tech: how the market for acquisitions reinforces regional inequalities in the US By Feldman, Maryann; Guy, Frederick; Iammarino, Simona; Ioramashvili, Carolin
  13. Ricardo's and Marx's Conception of Absolute and Relative Value: A Critical Overview. By Miguel D. Ramirez
  14. The Behavioural Mechanisms of Voluntary Cooperation in WEIRD and Non-WEIRD Societies By Till O. Weber; Benjamin Beranek; Simon Gaechter; Fatima Lambarraa-Lehnhardt; Jonathan F. Schulz
  15. Determinants of Income Composition Inequality By Petrova, Bilyana; Ranaldi, Marco
  16. Exploring economic support networks amidst racial inequality in Namibia By Annalena Oppel
  17. Social Accounting Matrix for Ghana 2015 By Valeria Ferreira; Miguel Ángel Almazán-Gómez; Victor Nechifor; Emanuele Ferrari
  18. Automation, job polarisation, and structural change By Luca Eduardo Fierro; Alessandro Caiani; Alberto Russo
  19. The price vs. non-price competitiveness conundrum: a post-Keynesian comparative political economy analysis By Walter Paternesi Meloni
  20. Adaptive Market Hypothesis: A Comparison of Islamic and Conventional Stock Indices By Akbar, Muhammad; Ali, Shahid; Ullah, Ihsan; Rehman, Naser
  21. Ellen Richards’s Home Economics Movement and the Birth of the Economics of Consumption By Philippy, David
  22. A taxonomy of European innovation clubs By Wirkierman, Ariel L.; Ciarli, Tommaso; Savonna, Maria
  23. Mixed methods approach for research on youth inclusion in labour markets in Niger By Lucia da CORTA; Aïssa DIARRA; Vidya DIWAKAR; Abdoutan HAROUNA
  24. Disruptive Innovation and R&D Ownership Structures of the Firm By Guo, Di; Huang, Haizhou; Jiang, Kun; Xu, Chenggang
  25. Philosophie et sciences de gestion : Michel Foucault - De la généalogie de l’enfermement au souci de soi By Yvon Pesqueux
  26. Testing the Goodwin Growth Cycles with Econophysics Approach in 2002-2019 Period in Turkey By Kerim Eser Af\c{s}ar; Mehmet \"Ozyi\~git; Yusuf Y\"uksel; \"Umit Ak{\i}nc{\i}
  27. The "new" environmental narratives and the resurgence of old debates By Sconfienza, Umberto Mario
  28. The Politics of Funding: The Rockfeller Foundation and French Economics, 1945-1955 By Benest, Serge

  1. By: Clive L. Spash; Tone Smith
    Abstract: The values of Nature are today ever more contested in attempts to reduce them to a narrow economics calculus and financial metrics. The crisis of modernity is evident is that the concept of Nature itself has been subject to post-modern deconstruction as archaic Romanticism while simultaneously being made into a modernist capital form by economists, bankers and financiers. In this paper we start by defining the meaning of Nature before moving to its values, the two being inseparable. Nature is seen as combining three aspect: (i) being ‘other’ than human, (ii) a biophysical structure and (iii) a quality which humans commonly and intuitively reference but struggle to specify. When turning to the values of Nature we describe the three major meta-ethical systems of Western philosophy—utilitarianism, deontology and virtue ethics. The contestation especially between utilitarian and rights-based approaches is explored. The role of intrinsic value in these systems is outlined. Modern mainstream economic valuation is then placed in context of the forgoing discussion and critically reviewed as a misguided but hegemonic approach to valuing Nature. The terrain of debate is laid out, briefly covering recent developments of rights to Nature and Nature’s contribution to people. That Nature cannot be dismissed as a concept (something attempted by some post-modernists and strong constructionists), but remains importantly contested in terms of its values, is central to understanding the on-going social-ecological conflicts created by modern economies.
    Keywords: environmental values, Nature, ethics, utilitarianism, rights, virtue, incommensurability, intrinsic value, economic valuation, moral considerability/standing, plural values
    JEL: A13 B55 D46 D63 Q5 Q57 Q58
    Date: 2021
  2. By: Clive L. Spash
    Abstract: Ecological economics has developed as a modern movement with its roots in environmentalism and radical environmental economics. Divisions and conflicts within the field are explored to show why material claiming to fall under the title of ecological economics fails to be representative of progress or the vision which drove socio-economic specialists to interact with ecologists in the first place. The argument is then put forward that ecological economics, as a social science engaging with the natural sciences, is a heterodox school of modern political economy. This is a paper from the Socio-Economics and Environment in Discussion working paper series edited by Clive L. Spash which ran from 2007 to 2009. This particular paper appeared in June 2009 and a revised version was published as a journal article: Spash, C. L. 2011. ‘Social ecological economics: Understanding the past to see the future’. American Journal of Economics and Sociology 70 (2): 340-375. .00777.x.
    Keywords: ecological economics, methodology, ideology, politics, history
    JEL: B55 B4 B29 Q5 Q57 P48
    Date: 2021
  3. By: Giovanni Dosi (Scuola Superiore Sant'Anna, Pisa (Italy)); Francesco Lamperti (Institute of Economics and EMbeDS, Scuola Superiore Sant'Anna; RFF-CMCC European Institute on Economics and the Environment); Mariana Mazzucato (Institute for Public Purpose and Policy, University College London (London, UK)); Mauro Napoletano (Author-Workplace-Name: Université Côte d'Azur, CNRS, GREDEG, France; SKEMA Business School; OFCE Sciences-Po); Andrea Roventini (Institute of Economics and EMbeDS, Scuola Superiore Sant'Anna; Sciences Po, OFCE)
    Abstract: We study the impact of alternative innovation policies on the short- and long-run performance of the economy, as well as on public finances, extending the Schumpeter meeting Keynes agentbased model (Dosi et al., 2010). In particular, we consider market-based innovation policies such as R&D subsidies to firms, tax discount on investment, and direct policies akin to the "Entrepreneurial State" (Mazzucato, 2013), involving the creation of public research-oriented firms diffusing technologies along specic trajectories, and funding a Public Research Lab conducting basic research to achieve radical innovations that enlarge the technological opportunities of the economy. Simulation results show that all policies improve productivity and GDP growth, but the best outcomes are achieved by active discretionary State policies, which are also able to crowd-in private investment and have positive hysteresis effects on growth dynamics. For the same size of public resources allocated to market-based interventions, "Mission" innovation policies deliver significantly better aggregate performance if the government is patient enough and willing to bear the intrinsic risks related to innovative activities.
    Keywords: Innovation policy, mission-oriented R&D, entrepreneurial state, agent-based modelling
    JEL: O33 O38 O31 O40 C63
    Date: 2021–06
  4. By: Eric Brunat; Jacques Fontanel (CESICE - Centre d'études sur la sécurité internationale et les coopérations européennes - UPMF - Université Pierre Mendès France - Grenoble 2 - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble)
    Abstract: Since the generalisation of the market economy, economic science has sounded the death knell for political economy. In this context, the market was omnipotent and the State had to concentrate its activity on the organisation of a regalian domain, often fluctuating and rather regressing according to private interests. Management science itself gave tools to companies within the framework of an economic system that advocated individual interest as the determining objective for each of the economic actors. Today, with the Covid-19 pandemic, the analyses of liberal economists are becoming obsolete in the face of a deep economic and social crisis. The economy is now revealing its eminently political character. The international, national and local public sectors organized the fight against the crisis of the market economy. The state once again became the central actor in the management of the national economy, and it was then led to make political choices that would redraw the economic and social structures of the country, particularly in the face of the large multinational firms and the ambitions of other nations. The profoundly political and social character of a globalized economy is highlighted by this crisis, which is characterized by the violence of relations between states and between citizens.
    Abstract: La science économique comme idéologie La science de gestion comme viatique de l'actionnaire Éric Brunat et Jacques Fontanel Revue Marché et Organisations n°41 2021 Depuis la généralisation de l'économie de marché, la science économique a sonné le glas de l'économie politique. Dans ce contexte, le marché était omnipotent et l'Etat devait concentrer son activité sur l'organisation d'un domaine régalien, souvent fluctuant et plutôt régressif en fonction des intérêts privés. La science du management elle-même a donné des outils aux entreprises dans le cadre d'un système économique qui prônait l'intérêt individuel comme objectif déterminant pour chacun des acteurs économiques. Aujourd'hui, avec la pandémie de Covid-19, les analyses des économistes libéraux deviennent obsolètes face à une profonde crise économique et sociale. L'économie révèle désormais son caractère éminemment politique. Les secteurs publics internationaux, nationaux et locaux organisent la lutte contre la crise de l'économie de marché. L'État redevient l'acteur central de la gestion de l'économie nationale, et il est alors amené à faire des choix politiques qui redessinent les structures économiques et sociales du pays, notamment face aux grandes firmes multinationales et aux ambitions des autres nations. Le caractère profondément politique et social d'une économie mondialisée est mis en évidence par cette crise, qui se caractérise par la violence des relations entre les États et entre les citoyens.
    Keywords: management science,economic policy,multinational firms,financial capitalism,pandemic,social inequality,economics,science économique,science de gestion,politique économique,firmes multinationales,capitalisme financier,pandémie,Covid-19,inégalité sociale
    Date: 2021
  5. By: Eder, Andreas; Koller, Wolfgang; Mahlberg, Bernhard
    Abstract: The aim of this study is to investigate how the diffusion of the new digital technologies (Economy 4.0-technologies) effects the magnitude and composition of employment in Austria. For this purpose, an input-output framework is adopted taking into account direct as well as indirect effects of the new technologies by industry, occupation and gender. These employment effects are estimated as the difference between a base economy (as represented by the most recent Austrian input-output table) and the same economy after an assumed 10-year transformation period with the introduction of new production technologies and devel-opment of new products for final demand. Based on substitution potentials estimated on de-tailed occupational level available from previous research, we model the changes in labour productivity. Combining two different scenarios of labour productivity change with two dif-ferent assumptions about collective wage bargaining outcomes gives us four possible scenari¬os of macroeconomic paths of Economy 4.0. The results show that due to Economy 4.0 dur¬ing the next 10 years job displacement will probably be greater than job creation and aggre¬gate employment will decline by 0.80% to 4.81% relative to total present employment. Fur-thermore, the results indicate that occupations gaining in employment are highly skilled while the occupations losing in employment are medium-skilled. Hereby, the female workers are adversely affected in terms of employment and labour income.
    Keywords: digitalisation; labour demand; projection; scenario analysis; input output analysis
    JEL: C67 D57 J16 J23 O33
    Date: 2021–03–31
  6. By: Oliver Richters
    Abstract: The analogies between economics and classical mechanics can be extended from constrained optimization to constrained dynamics by formalizing economic (constraint) forces and economic power in analogy to physical (constraint) forces in Lagrangian mechanics. In the differential-algebraic equation framework of General Constrained Dynamics (GCD), households, firms, banks, and the government employ forces to change economic variables according to their desire and their power to assert their interest. These ex-ante forces are completed by constraint forces from unanticipated system constraints to yield the ex-post dynamics. The flexible out-of-equilibrium model can combine Keynesian concepts such as the balance sheet approach and slow adaptation of prices and quantities with bounded rationality (gradient climbing) and interacting agents discussed in behavioral economics and agent-based models. The framework integrates some elements of different schools of thought and overcomes some restrictions inherent to optimization approaches, such as the assumption of markets operating in or close to equilibrium. Depending on the parameter choice for power relations and adaptation speeds, the model nevertheless can converge to a neoclassical equilibrium, and reacts to an austerity shock in a neoclassical or post-Keynesian way.
    Date: 2021–06
  7. By: Rodríguez Guerrero, Esmeralda (UNU-MERIT, Maastricht University); Nimeh, Zina (UNU-MERIT, Maastricht University); Franco Correa, Andrea (UNU-MERIT, Maastricht University, and Universidad de la Salle, Bogota, Colombia)
    Abstract: This article examines the topic of Women's Empowerment in Colombia. Over the past decades the Colombian government has shown progressive commitment towards women's rights, empowerment, advancement of gender equality and the achievement of equal opportunities. While those endeavours present a crucial advancement, they do not automatically translate into better outcomes for women. Although empowerment promotion strategies are evident, they are not based on a clear and measurable understanding of the concept of women's empowerment which facilitate tracking future progress. This article addresses this gap by proposing a multidimensional index of women's empowerment. This index puts forward specific indicators which allows for monitoring over time and can be adapted to monitor interventions and performance of programmes which target women's empowerment. Ultimately, this would help in the improvement of the design of policies and function as a starting point to create more favourable conditions for the empowerment of women. The index is operationalised using the 2015 DHS of Colombia.
    Keywords: Women, Empowerment, Colombia, Multidimensional Empowerment Index
    JEL: I31 I32 O15 Z13
    Date: 2021–06–16
  8. By: Anand, Paul; Chiappero-Martinetti, Enrica; Corneo, Giacomo; Mcknight, Abigail; Moro, Esteban; O'Brien, Dave; Peragine, Vito; Stuhler, Jan
    Abstract: This report summarises some of the most relevant theoretical and empirical challenges associated with the measurement and analysis of multidimensional inequalities. Each section delves into a specific topic, presents a state-of-the-art review of the key findings in that particular area, and proposes a number of policy recommendations and avenues for further research. The themes covered in this report range from the multidimensional nature of human wellbeing and quality of life, the multiplicity of life domains in which substantial inequalities can be found, the dynamic nature of those inequalities, the transmission of advantages and disadvantages over time, the availability of new data sources for fine-grained data collection and higher spatial resolution policy-making, the interplay of individual effort and external circumstances when it comes to identifying a just distribution of opportunities in society, as well as the relevance of lifetime approaches for the study of economic inequalities within countries. The content of this work will provide help and guidance to policy-makers willing to understand and tackle inequalities from a broader multidimensional perspective, beyond the narrow limits of economic indicators alone.
    JEL: N0 J1
    Date: 2020–07–14
  9. By: Karbowski, Adam
    Abstract: The following item briefly presents and discusses the role of creators and innovation in the Schumpeterian economic development. The special emphasis is put on three actors in the Schumpeterian system - inventors, entrepreneurs and capitalists. Also, the further Schumpeter's theory of innovation (so called MARK II model) is recapitulated. Finally, the role of Schumpeterian concepts in stimulating further economic debate is stressed.
    Keywords: creators; innovation; Schumpeter
    JEL: B0 O1 O3
    Date: 2021–06–17
  10. By: Carey W. King
    Abstract: All economies require physical resource consumption to grow and maintain their structure. The modern economy is additionally characterized by private debt. The Human and Resources with MONEY (HARMONEY) economic growth model links these features using a stock and flow consistent framework in physical and monetary units. Via an updated version, we explore the interdependence of growth and three major structural metrics of an economy. First, we show that relative decoupling of gross domestic product (GDP) from resource consumption is an expected pattern that occurs because of physical limits to growth, not a response to avoid physical limits. While an increase in resource efficiency of operating capital does increase the level of relative decoupling, so does a change in pricing from one based on full costs to one based only on marginal costs that neglects depreciation and interest payments leading to higher debt ratios. Second, if assuming full labor bargaining power for wages, when a previously-growing economy reaches peak resource extraction and GDP, wages remain high but profits and debt decline to zero. By removing bargaining power, profits can remain positive at the expense of declining wages. Third, the distribution of intermediate transactions within the input-output table of the model follows the same temporal pattern as in the post-World War II U.S. economy. These results indicate that the HARMONEY framework enables realistic investigation of interdependent structural change and trade-offs between economic distribution, size, and resources consumption.
    Date: 2021–06
  11. By: Vladimir Pecheu (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: There is no consensus among economists about the reasons why firms resort to profit sharing compensation, especially in larger firms. This paper presents evidence for France showing that firms with unions are more likely to resort to profit sharing than those without and, moreover, that strike incidence decreases with its usage. Inspired by these stylized facts, I develop a model to study the effects of profit sharing on union behavior that introduces two novel mechanisms. First, by making employee compensation depend on output, profit sharing makes unions internalize the cost of their strikes so that they are less inclined to organize collective actions. This in turn damages the credibility of their strike threats. Second, over time unions lose reputation, which further reduces their bargaining power. Lastly, I test the model using exogenous dates of elections of union representatives that give incentives for unions to organize collective actions in a competition for voters. I show that employers anticipate the effect of elections by increasing the usage of profit sharing. Its payment leads to a reduction in strike length the same year, and to a drop in wage growth by about 13 percent the year after. The effect is concentrated on lower occupations for whom wage growth is almost halved and driven by a reduction in the bargaining power of unions.
    Keywords: profit sharing,unions,bargaining,strikes,reputation,labor income inequality
    Date: 2021–06–02
  12. By: Feldman, Maryann; Guy, Frederick; Iammarino, Simona; Ioramashvili, Carolin
    Abstract: Are the agglomeration economies of technology hubs augmented by a localized market for start-ups – acquisitions, and IPOs? How does this affect the ability of places outside of those hubs to foster digital startups as a tool of local economic development? We study this with a particular focus on acquisitions by the seven largest American digital platforms – Amazon, Alphabet [Google], Apple, Microsoft, Facebook, Oracle and Adobe, which we call, collectively, Big Tech. We cover the years 2001-2020. We show that firms acquired by Big Tech are, disproportionately to the sectors in which they operate, concentrated in major tech clusters, and particularly in the Silicon Valley (San Francisco/San Jose). Foreign acquisitions by Big Tech also show a marked concentration in a few countries, and particular places in those countries. NASDAQ IPOs of firms in relevant sectors are similarly concentrated. Acquisition, or the less common alternative, IPO, is the second major phase of financing for a digital start up. The first phase is commonly associated with venture capital (VC), and location proximate to venture capital companies has often been seen as a motivation for locating in a tech cluster. We find, however, that neither VC funding, nor funding an investor located in the Silicon Valley, predicts either acquisition by Big Tech, or IPO. Funding by any of the VCs that helped launch the Big Tech firms, however, is strongly associated with Big Tech acquisition. This suggests an important role for social networks in both the first and second phases of financing, but not necessarily a geographical role in the first phase. We argue that the acquisition market – and its effects on both the major tech hubs and the left behind rest – depends crucially on the proprietary control of access to various digital network products. Regulation of these markets, particularly in the form of common carrier status and open standards, could achieve a considerable re-balancing.
    Keywords: tech giats; market power; start-ups; acquisitions; regional inequality
    JEL: R12
    Date: 2021–05–01
  13. By: Miguel D. Ramirez (Department of Economics, Trinity College)
    Keywords: Absolute value; constant capital; fetishism; invariable standard;prices of production; profit; relative value; surplus-value; standard commodity; value; variable capital.
    JEL: B10 B14 B24
    Date: 2021–06
  14. By: Till O. Weber (University of Newcastle); Benjamin Beranek (Missouri State University); Simon Gaechter (University of Nottingham); Fatima Lambarraa-Lehnhardt (IZA, CESifo, ZALF, University of Goettingen); Jonathan F. Schulz (George Mason University)
    Abstract: We provide a framework to uncover behavioural mechanisms driving potential cross-societal differences in voluntary cooperation. We deploy our framework in one-shot public goods experiments in the US and the UK, and in Morocco and Turkey. We find that cooperation is higher in the US and UK than in Morocco and Turkey. Our framework shows that this result is driven mostly by differences in beliefs rather than in cooperative preferences, or peer punishment, which are both similar in the four subject pools. Our results highlight the central role of beliefs in explaining differences in voluntary cooperation within and across societies.
    Keywords: voluntary cooperation, experiments, public goods, cross-societal differences, behavioural framework
    Date: 2021–03
  15. By: Petrova, Bilyana; Ranaldi, Marco
    Abstract: This paper examines the political determinants of income composition inequality in 32 advanced and emerging economies between 2006 and 2018. Income composition inequality is defined as the extent to which the income composition in capital and labor income is unevenly distributed across the income distribution. High levels of income composition inequality are associated with class-fragmented societies, whereas low levels are typical of multiple-sources-of-income societies. We find that a higher seat share of left parties in the governing coalition and higher globalization, as measured by trade, capital openness, and FDI inflows, are linked to lower income composition inequality. Higher economic development and a higher capital income share are, instead, related to higher inequality in income composition. We discuss the mechanisms behind these relationships and check the robustness of our findings. To our knowledge, this is one of the first studies looking into the causes of the dynamics of this dimension of economic inequality. (Stone Center on Socio-Economic Inequality Working Paper)
    Date: 2021–06–01
  16. By: Annalena Oppel
    Abstract: Community or interpersonal support as a critical source of livelihood sustenance in the Global South can exhibit unequal dynamics. An understanding of these practices is primarily tied to the conceptual space of poverty or small communities. Less is known about how social support systems might respond to structural inequalities. I address this by exploring how support practices might be shaped by inequalities in the Namibian context.
    Keywords: Inequality, Race, Social networks, Africa, Namibia
    Date: 2021
  17. By: Valeria Ferreira (External Consultant at European Commission – JRC Seville); Miguel Ángel Almazán-Gómez (Centro de Predicción Económica (CEPREDE)- Madrid); Victor Nechifor (European Commission - JRC); Emanuele Ferrari (European Commission - JRC)
    Abstract: A Social Accounting Matrix (SAM) is a comprehensive and economy-wide database recording data on all transactions between production activities, factors of production, institutions, and the rest of the world within a specific economy during a certain period. It has two principal objectives. First, it represents a complete snapshot of the economy showing the economic structure and the circular flow of income and expenditure in the country or region under analysis. Second, in order to analyse how the economy works and to predict the effects of policy interventions, it is used as a database in multisectoral linear models by calculating multipliers, and for the calibration and exploitation of Computable General Equilibrium (CGE) models. This report presents Ghana's SAM for 2015, with the main purpose of providing a suitable database for implementing and evaluating the country's own developmental, social and economic policies and initiatives. To this end, the structure of the SAM is presented in detail, explaining the meaning of each account and indicating some estimations and modifications made. Considering the characteristics of the Ghanaian economy, this SAM shows a special structure to reflect the Home Production for Home Consumption (HPHC) issue and a high disaggregation of the agricultural and food sector. Furthermore, considering the SAM as a database, a descriptive analysis of the Ghanaian economy and the linear multipliers analysis are presented. Annex 2 explains how to download the matrix available online.
    Keywords: Social Accounting Matrices; Ghana: linear multisectoral models; multipliers.
    JEL: E16 Q1
    Date: 2021–05
  18. By: Luca Eduardo Fierro (Department of Management, Università Politecnica delle Marche, Ancona, Italy); Alessandro Caiani (University School for Advanced Studies, Pavia, Italy); Alberto Russo (Department of Management, Università Politecnica delle Marche, Ancona, Italy and Department of Economics, Universitat Jaume I, Castellón, Spain)
    Abstract: The increasing automation of tasks traditionally performed by labor is reshaping the relationship between skills and tasks of workers, unevenly affecting labor demand for low, middle, and high-skill occupations. To investigate the economywide response to automation, we designed a multisector Agent-Based Macroeconomic model accounting for workers’ heterogeneity in skills and tasks. The model features endogenous skill- biased technical change, and heterogeneous consumption preferences for goods and personal services across workers of different skill types. Following available empirical evidence, we model automation as a manufacture-specific, productivity-enhancing, and skill-biased technological process. We show how automation can trigger a structural change process from manufactory to personal services, which eventually polarises the labor market. Finally, we study how labor market policies can feedback in the model dynamics. In our framework, a minimum wage policy (i) slows down the structural change process, (ii) boosts aggregate productivity, and (iii) accelerates the automation process, strengthening productivity growth within the manufactory sector.
    Keywords: agent-based model, automation, structural change, wage polarization, minimum wage
    JEL: C63 E64 L16
    Date: 2021
  19. By: Walter Paternesi Meloni
    Abstract: Recently, several post-Keynesian scholars have entered the debate on comparative political economy. Within this approach, the research on different demand-led growth strategies converges on the idea that differentiated models of capitalism are finding the engines of growth in debt-financed domestic demand or foreign demand, alternatively. Nonetheless, some layers of disagreement emerge when investigating the reasons for a country’s export success, particularly concerning the European core-periphery dualism. On the one side, some studies emphasise the role of price and cost competitiveness. On the other side, other scholars ascribe the huge performance of export-oriented countries to non-price factors (e.g., product quality and diversification). The purpose of this paper is to deepen this specific debate from a post-Keynesian political economy perspective. Besides overviewing the existing literature, we extend Kohler and Stockhammer’s (2021) work on price and non-price competitiveness as growth drivers to export dynamics. Our evidence indicates that both price and non-price competitiveness differentials had been significant in shaping export flows before the outbreak of the great financial crisis of 2007-08. We also observe that methodological issues and large heterogeneity across countries belonging to different models may alter the overall picture on the relative relevance of price and non-price factors. Therefore, we conclude that country-specific analyses based on the estimation of well-specified export equations, explicitly encompassing non-price competitiveness, are necessary to assess the sensitivity of export to price and cost factors.
    Keywords: post-Keynesian economics; comparative political economy; export; price competitiveness; non-price competitiveness
    JEL: E02 O51 P16 P51
    Date: 2021–06
  20. By: Akbar, Muhammad; Ali, Shahid; Ullah, Ihsan; Rehman, Naser
    Abstract: We assess informational efficiency of nine Dow Jones Islamic market indices and their counterpart conventional Morgan Stanley indices using data from 1996 to 2020. We test the martingale difference hypothesis of no return predictability overtime and assess the adaptive market hypothesis over different market conditions. We find that the null is rejected in a number of periods in line with the adaptive market hypothesis for both Islamic and conventional stock indices. However, we do not observe any significant differences in return predictability between Islamic and conventional stocks over different market conditions including financial crisis of 2007-08 and COVID-19 pandemic.
    Date: 2021–06–16
  21. By: Philippy, David
    Abstract: In 1899, MIT chemist Ellen H. Richards (1842–1911) instigated a series of annual “Lake Placid Conferences” (1899–1908) that became known as the foundation of the home economics movement. Richards’s first interest was in improving the household’s well-being by using sanitary and nutrition sciences, an objective that was passed on to the movement. However, by the 1920s, home economists rather identified their field of expertise as the “science of consumption,” emphasizing the idea of “rational consumption.” My aim in this article is to give an account of how this shift in focus came about, by telling the story of the home economics movement founded by Richards. I examine how the movement problematized consumption by highlighting its relationship and perception of itself regarding economics. I argue that the concept of consumption was central to the structuring of the movement from its beginning and allowed home economists to claim it as their field of expertise because, as they believed, economists were not addressing the issue.
    Date: 2021–05–26
  22. By: Wirkierman, Ariel L. (Institute of Management Studies(IMS), Goldsmiths, University of London); Ciarli, Tommaso (UNU-MERIT, and Science Policy Research Unit (SPRU), University of Sussex); Savonna, Maria (Science Policy Research Unit (SPRU), University of Sussex, and Department of Economics and Finance, Luiss University)
    Abstract: The paper provides a novel, empirically grounded map of innovation 'clubs' in the EU, based on a unique analysis of micro-aggregated, country-level data. Using exploratory factor analysis we articulate innovation variables in a taxonomy of four 'latent' innovation theories: Network-Innovation-System, Kaldorian, New-Growth-Theory, and Schumpeterian. We then characterise clusters of countries ('clubs'), based on their performance against this taxonomy, and design a new map of EU innovation clubs. We identify an articulated map of EU innovation hierarchy beyond the rather well-known 'core-periphery' structure, and interpret how some of the peripheries are functional to the 'consolidated core' of innovative countries, raising an issue of long-term sustainability of such hierarchies. We also find that even the most innovative clusters show concerning weaknesses. The strongest cluster in terms of its innovation system does not seem to exploit its full potential and lags behind with respect to radical product innovations. Instead, the leading cluster in terms of radical product innovations is strongly dependent on external innovative activity, is focused on scale-intensive sectors, and has a fairly weak innovation system. The periphery of small countries that show a healthy network structure, do so because they mainly include supplier-dominated firms, reliant on innovation inputs from the core. We offer some reactions on innovation policy within a broader view of EU cohesion.
    Keywords: Innovation theories, National Innovation System, Exploratory Factor Analysis, European cohesion policy
    JEL: O30 O52 C38
    Date: 2021–05–11
  23. By: Lucia da CORTA; Aïssa DIARRA; Vidya DIWAKAR; Abdoutan HAROUNA
    Abstract: This article briefly explores how to combine two qualitative methodologies to inspect the topic of youth inclusion in Niger via a mixed methods analysis. It presents the ethnographic approach developed by LASDEL’s social anthropological qualitative methodology and the CPAN’s critical realist mixed methods approach to research and analysis of poverty dynamics. In assessing their joint functioning, it also inspects some limitations of the experimented exercise for Niger.
    Keywords: Niger
    JEL: Q
    Date: 2021–05–28
  24. By: Guo, Di; Huang, Haizhou; Jiang, Kun; Xu, Chenggang
    Abstract: Among the 87 revolutionary innovations in the world over the life of the Soviet Union, 86 were invented in capitalist economies (Kornai, 2013). This paper studies why this is the case. This paper provides a theoretical foundation, which explains why disruptive innovations are organized and financed with a large number of independent small firms in a capitalist economy. Whereas not allowing private ownership, this kind of arrangement is not an option in an economy where only state ownership exists. This paper also contributes to empirical work on disruptive innovation, which is missing in the literature. We use FDA approved new molecular entities (NMEs) in the pharmaceutical industry as a proxy of disruptive innovation in the industry. Although pharma firms are often very large in size, their R&Ds for developing NMEs depend deeply on forming R&D alliances with independent small R&D firms. We find NMEs invented by a pharma firm is positively and significantly associated with the number of R&D alliances that the firm creates.
    Keywords: Capitalism; Innovation; Socialism; Soft-budget Constraint
    Date: 2020–06
  25. By: Yvon Pesqueux (ESD R3C - Équipe Sécurité & Défense - Renseignement, Criminologie, Crises, Cybermenaces - CNAM - Conservatoire National des Arts et Métiers [CNAM])
    Abstract: Ce texte est organisé de la manière suivante. Après une introduction consacrée aux précautions à prendre quant à l'usage de la philosophie, ce texte abordera successivement : 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 « pouvoirsavoir » ; 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.
    Date: 2021–05–29
  26. By: Kerim Eser Af\c{s}ar; Mehmet \"Ozyi\~git; Yusuf Y\"uksel; \"Umit Ak{\i}nc{\i}
    Abstract: The Turkish economy between 2002-2019 period has been investigated within the econophysical approach. From the individual income data obtained from the Household Budget Survey, the Gompertz-Pareto distribution for each year and Goodwin cycle for the mentioned period have been obtained. For this period, in which thirteen elections were held under the single-party rule, it has been observed that the income distribution fits well with the Gompertz-Pareto distribution which shows the two-class structure of the Turkish economy. The variation of the threshold value $x_t$ (which separates these two classes) as well as Pareto coefficient have been obtained. Besides, Goodwin cycle has been observed within this period, centered at $(u,v)\cong (66.30,83.40)$ and a period of $T=18.30$ years. It has been concluded that these observations are consistent with the economic and social events experienced in the mentioned period.
    Date: 2021–06
  27. By: Sconfienza, Umberto Mario
    Abstract: The paper takes a critical view of the narrative of sustainable development and argues that three different environmental narratives - ecomodernism, environmental authoritarianism, and degrowth - are now providing alternative problem-solving accounts of environmental governance. The paper analyses the three narratives according to a common set of categories. Furthermore, it argues that these three narratives are bringing again to scholarly attention debates - over the limits to growth, the limits to technological innovation, and the potential limits of democracy in guiding environmental politics - which, at the end of the last century, had been effectively defused by the hegemonic sustainable development narrative. Finally, the paper explores the significance of the resurgence of these debates for environmental politics.
    Keywords: degrowth,environmental authoritarianism,ecomodernism,sustainable development,geoengineering
    Date: 2021
  28. By: Benest, Serge
    Abstract: Following World War II, the director of the Social Sciences Division at the Rockefeller Foundation, the industrial economist Joseph H. Willits, thought it important to extend its activities to Europe, especially France. His agenda was to strengthen institutional economics and to create modern research centers with a view to stabilizing the political situation. In the postwar decade, almost all economic research centers in France were funded by the Foundation, which helped provide greater autonomy to French economists within academia, but failed to reshape French economic training and research.
    Date: 2021–05–26

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