nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2021‒08‒16
eighteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Mission-Oriented Policies and the “Entrepreneurial State” at Work: An Agent-Based Exploration By Giovanni Dosi; Francesco Lamperti; Mariana Mazzucato; Mauro Napoletano; Andrea Roventini
  2. The Dynamics of International Exploitation By Jonathan F. Cogliano; Roberto Veneziani; Naoki Yoshihara
  3. The relation between interest rate and profit rate: the role of bank profitability in an endogenous money framework By Zolea, Riccardo
  4. The First Harrod Problem and Human Capital Formation By Gustavo Pereira Serra
  5. Dialogue and radical imagination about property and survival By Denis Dupré
  6. Θεσμικά οικονομικά και δημοκρατία By Economou, Emmanouel/Marios/Lazaros
  7. Ecofeminism: A Study at the Roots of Gender Inequalities By Dipanwita Pal
  8. The Size of Micro-originated Aggregate Fluctuations: An analysis of firm-level input-output linkages in Japan By Yoshiyuki ARATA; Daisuke MIYAKAWA
  9. Faces of inequality: a mixed methods approach to multidimensional inequalities By Bleynat, Ingrid; Segal, Paul
  10. Kapitalisme Dan Sosialisme By SYAM, FADLY
  11. Écrire les plantes en économie By Muriel Gilardone
  12. Applying Evolutionary Economic Geography beyond case studies in the Global North: Regional diversification in Vietnam By Moritz Breul; Fabio Pruß;
  13. Towards an ontological reason law in economics: principles and foundations By Francesco Vigliarolo
  14. It takes two to dance: institutional dynamics and climate-related financial policies By Baer, Moritz; Campiglio, Emanuele; Deyris, Jérôme
  15. Écrire les plantes nocives en économie By Muriel Gilardone
  16. La forme contemporaine d’existence de la monnaie dans une perspective marxiste By Nicolas Piluso
  17. Bad machines corrupt good morals By Nils Köbis; Jean-François Bonnefon; Iyad Rahwan
  18. Strengthening Gender Justice in a Just Transition: A Research Agenda Based on a Systematic Map of Gender in Coal Transitions By Paula Walk; Isabell Braunger; Josephine Semb; Carolin Brodtmann; Pao-Yu Oei; Claudia Kemfert

  1. By: Giovanni Dosi (LEM - Laboratory of Economics and Management - SSSUP - Scuola Universitaria Superiore Sant'Anna [Pisa]); Francesco Lamperti (UP1 - Université Paris 1 Panthéon-Sorbonne); Mariana Mazzucato; Mauro Napoletano (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po); Andrea Roventini
    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 agent-based 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 specific trajectories, and funding a Public Research Lab conducting basic research to achieve radical innovations that enlarge the technological opportunities of the economy. Simu- lation 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
    Date: 2021–01–01
  2. By: Jonathan F. Cogliano; Roberto Veneziani; Naoki Yoshihara
    Abstract: This paper develops a theoretical and computational framework to analyse imperialistic international relations and the dynamics of international exploitation. A new measure of unequal exchange across borders -- an exploitation intensity index -- is proposed which can be used to characterise the structure of imperialistic international relations in the current global economy. It is shown that wealthy nations are net lenders and exploiters, whereas endowment-poor countries are net borrowers and suffer from exploitation. Capital flows transfer surplus from countries in the core of the global economy to those in the periphery. However, while international credit markets and wealth inequalities are sufficient to generate unequal exchange, they are proved to be insufficient for it to persist. Various possible factors are considered, including technical change and varying social norms, that may explain the persistence of international inequalities.
    Keywords: international exploitation; imperialism; capital movements; technical change
    JEL: B51 D63 C63 F21 F54
    Date: 2021–08
  3. By: Zolea, Riccardo
    Abstract: The relation between interest and profit rate is crucial, as it has a major impact on income distribution, and it is relevant for the interpretation of the functioning of the economic system. After reviewing the literature, I try to interpret this relation between rates using banking profitability as the keystone. The condition that the capital employed in the banking industry should receive a profit rate at least equal to the general profit rate, combined with a careful examination of the functioning of the banking sector, makes conceivable an endogenous determination of the interest rate. The bank interest rate on loans is the price of the "loan" commodity, given the production conditions of the banking sector, where the rate set by the central bank constitutes the price of an input of the banking industry. I also analyse the formation of the interest rate structure, taking as starting points the main refinancing rate set by the central bank and the normal profitability of bank capital, with the lending rate on bank loans being the upper margin and the deposit rate the lower margin of the interest rate corridor. The interest rates structure is thus determined by several elements, confirming Marx's idea of a heterogeneous determination of interest rates. Alternatively, it can be assumed that, as the banking industry is characterized by a high degree of monopoly, its profit rate is higher than the average for the rest of the economy. In Marxian terms this reflects contrast between financial capitalists and productive capitalists, where the high degree of monopoly of the banking sector becomes a weapon to capture a higher share of total profits.
    Keywords: Bank profitability, rate of profit, interest rate, Marx
    JEL: E43 G2
    Date: 2021
  4. By: Gustavo Pereira Serra (Department of Economics, New School for Social Research)
    Abstract: This paper addresses the contribution of human capital accumulation to solving the First Harrod Problem, which relates to the di erence between demand-led and natural growth rates in the long run. To some extent, this paper also relates to the literature on labor-saving technical change represented as a costly process. Moreover, I show how a model that considers human capital accumulation can address overeducation and technical change. I argue that human capital formation and technological progress are complementary in economic growth: the former ensures the stability of the employment rate on the balanced growth path, whereas the latter determines its level.
    Keywords: Human Capital, Post-Keynesian Economics, First Harrod Problem, Harrodian Instability, Aggregate Productivity
    JEL: E11 E12 E24 O40
    Date: 2021–08
  5. By: Denis Dupré (STEEP - Sustainability transition, environment, economy and local policy - Inria Grenoble - Rhône-Alpes - Inria - Institut National de Recherche en Informatique et en Automatique - LJK - Laboratoire Jean Kuntzmann - Inria - Institut National de Recherche en Informatique et en Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)
    Abstract: The issues of private property and survival are intimately intertwined in Francis of Assisi's vision of the radical imagination as defined by Castoriadis. His concept of property pulverizes the classical usus fructus abusus and replaces it with charity. Today a pragmatic philosophical reading of Pope Francis' encyclical Laudate Si illuminates a very Franciscan approach to property. It is the analysis of the means of access to basic food for survival that has given rise to the concept of common goods, in the sense of Ostrom, defined by Polanyi: land, money and work. For today, and taking into account possible collapses, we think it is useful to rely on these approaches to reform our institutions and put them at the service of survival for all.
    Abstract: Les questions de la propriété privée et de la survie sont intimement mêlées chez François d'Assise en une vision qui témoigne de l'imagination radicale telle que définie par Castoriadis. Son concept de propriété pulvérise le classique usus fructus abusus et le remplace par la charité. Aujourd'hui une lecture philosophique pragmatique de l'encyclique Laudate Si du pape François éclaire une approche très franciscaine de la propriété. C'est l'analyse des moyens d'accès à la nourriture de base pour la survie qui a fait apparaitre le concept des biens communs, au sens d'Ostrom, définis par Polanyi : la terre, la monnaie et le travail. Pour aujourd'hui et en tenant compte des effondrements possibles, nous pensons utile de nous appuyer sur ces approches pour réformer nos institutions et les mettre au service de la survie pour tous.
    Abstract: Le questioni della proprietà privata e della sopravvivenza sono intimamente intrecciate nella visione di Francesco d'Assisi dell'immaginazione radicale come definita da Castoriadis. Il suo concetto di proprietà polverizza il classico usus fructus abususus e lo sostituisce con la carità. Oggi una lettura filosofica pragmatica dell'enciclica Laudato Si' di Papa Francesco illumina un approccio molto francescano alla proprietà. È l'analisi dei mezzi di accesso al cibo di base per la sopravvivenza che ha dato origine al concetto di beni comuni, nel senso di Ostrom, definito da Polanyi: terra, denaro e lavoro. Per oggi e tenendo conto dei possibili crolli, pensiamo che sia utile contare su questi approcci per riformare le nostre istituzioni e metterle al servizio della sopravvivenza di tutti.
    Keywords: radical imagination,environmental justice,Polanyi,Castoriadis,property,Francis of Assisi',pope Francis,common good,survival
    Date: 2021–08–29
  6. By: Economou, Emmanouel/Marios/Lazaros
    Abstract: Μερικοί από τους παλαιότερους μεγάλους οικονομολόγους είχαν συγγράψει για την σημασία των θεσμών στην οικονομία, όπως ο T. Veblen και ο J.S.Mill, ενώ και ο πατέρας της οικονομικής επιστήμης A. Smith έχει αναφορές στον Πλούτο των Εθνών. Τα Θεσμικά Οικονομικά (Institutional Economics) αναβίωσαν μετά τον Β΄ Παγκόσμιο πόλεμο, ως “νέα” (New Institutional Economics) με τα έργα των F.A. von Hayek, J.A. Schumpeter και άλλων, και με ιδιαίτερη έμφαση από τον D. North και τους πιο σύγχρονους D. Acemoglu, J.A. Robinson, G. Hodgson κλπ., ενώ πλέον πολλοί μη αμιγώς “θεσμικοί” οικονομολόγοι αναφέρονται σε θεσμικά θέματα, όπως ο A. Sen, o J. Tirole κλπ.
    Keywords: N20
    JEL: A2 A20 A22
    Date: 2020–04–07
  7. By: Dipanwita Pal (Galsi Mahavidyalaya, West Bengal, India)
    Abstract: Ecocriticism is, as put forward by Diamond and Orenstein, ‘a new term for ancient wisdom’. It is a value system that explores the connections between androcentrism and environmental destruction. The theory emerged from various social movements, from both activist and academic fields during the 1980s. Ecofeminism, as a movement, developed from antimilitarist action movement in the United States while founding a political platform for the US Green party. The term was first used by Francoise D’Eaubonne (1980) in her article “Feminism or Death.†From the mid-1970s, ecological critique turned to play a significant role in the women’s movements worldwide.
    Keywords: ecofeminism, value dualism, androcentrism, gender inequalities
    Date: 2021–05
  8. By: Yoshiyuki ARATA; Daisuke MIYAKAWA
    Abstract: Recent studies (e.g., Acemoglu et al (2012)) argue that microeconomic shocks to firms propagate on input-output linkages and result in aggregate fluctuations. However, little is known about the size of micro-originated aggregate fluctuations given the empirical firm-level input-output linkages. This paper analyzes the size of micro-originated aggregate fluctuations by combining probabilistic methods and the analysis of firm-level input-output linkages in Japan. We find that due to the heterogeneity of the input-output network, microeconomic shocks account for about 30% of observed aggregate variance, consistent with the granular hypothesis. However, we find that microeconomic shocks contribute almost nothing to the tail probability of aggregate output. This is because even when the CLT does not hold, the microeconomic shocks cancel each other out "to some extent", and the resultant distribution of aggregate output is close to a Gaussian. Therefore, given the empirical input-output network in Japan, our results show that microeconomic shocks turn out to cause aggregate fluctuations of a limited size.
    Date: 2021–08
  9. By: Bleynat, Ingrid; Segal, Paul
    Abstract: This paper presents a new mixed methods approach to measuring and understanding multidimensional inequalities, and applies it to new data for Mexico City. We incorporate quantitative and qualitative dimensions of inequality, integrating the concerns of both economists and sociologists. The method combines standard quantitative income gradients with two new ways of conceptualizing qualitative inequalities that relate to lived experiences, all based on the same underlying income distribution. First, we introduce the method of qualitative income gradients, or what we call inequalities of lived experience. These compare qualitative experiences in fields such as work, or health and education services, across the entire income distribution. Second, we describe lived experiences of inequality, which are experiences of social hierarchy, stigma, or domination, including those associated with categorical inequalities of gender or race. This portrayal of inequality combines the representativeness of quantitative approaches with the depth and nuance of qualitative analyses of lived experience and social relations.
    Keywords: Mexico
    JEL: N0
    Date: 2021–07
  10. By: SYAM, FADLY
    Abstract: Jurnal Yang membahas tentang kapitalisme yang diperkenalkan oleh Karl Marx
    Date: 2021–07–02
  11. By: Muriel Gilardone (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Ce papier est la première contribution au projet scientifique interdisciplinaire porté par Marie Rota, visant à valoriser le rôle des plantes au travers du procédé de l'écriture. Il expose la perspective épistémologique du point de vue économiste qui sera proposé dans le cadre des différents ateliers de ce projet : une perspective critique de l'économie standard, et l'exploration d'une approche alternative au croisement de la philosophie du développement humain théorisé par Amartya Sen et de l'éthique permaculturelle initiée par Bill Mollison et David Holmgren. Il constituera une annexe du chapitre 1 de l'ouvrage à paraître aux éditions Le Bord de l'eau : Marie Rota (Ed.) (2021), Écrire les plantes. Une approche interdisciplinaire.
    Keywords: human development,économics,ecology,plants,capabilities,permacultural ethics,greening of economics
    Date: 2020–04
  12. By: Moritz Breul; Fabio Pruß;
    Abstract: Hitherto, the path-dependent understanding of regional diversification in Evolutionary Economic Geography (EEG) has drawn largely on insights into industrialized countries. However, in the past few decades several regions in the Global South have undergone rapid structural transformations despite starting out with unfavourable regional asset bases. This raises the question as to whether the strong emphasis on endogenous capabilities in EEG also provides a sound theoretical framework for explaining these tremendous diversification dynamics. This paper therefore aims to re-evaluate the wider validity of the path-dependent conceptualization of regional diversification in the context of a lower-middle income economy. To this end, we analyse the diversification of Vietnamese regions between 2006 and 2015. In order to take into account context-specific conditions that characterize Vietnam’s economy, we add the role of foreign-owned firms and state-owned enterprises to the conceptualization of regional diversification processes. While the role of relatedness holds true for Vietnam, the presence of foreign- owned firms allowed Vietnamese regions to break away from path dependency and diversify to unrelated industries. The findings highlight that only by adapting the analysis to context-specific conditions are we able to understand how regional diversification takes place across different settings.
    Keywords: Regional diversification, relatedness, Evolutionary Economic Geography, path creation, Vietnam
    Date: 2021–07
  13. By: Francesco Vigliarolo (Catholic University of La Plata, National University of La Plata, University of Buenos Aires [Argentina])
    Abstract: The objective of this article is to propose what can be called a law of ontological reason in economics as opposed to the law of supply and demand. To do this, it uses a phenomenological approach that interprets economics in terms of primary ideas. To this end, it's defined the ontological reason and the space in which it is built in order to introduce the concept of demand of rights and not of consumption. In this context, the relationship that underlies an ontological reason which presupposes a different behavior from that of the law of supply and demand is then described. According to this approach, it is claimed that the latter leads to structural problems. It subordinates the general identity of a country to the interests of individuals, as it focuses on maximizing personal utility that is unrelated to the creation of the rights of men and women living in a context that contains them in a relational way.
    Keywords: economics,ontology,phenomenology,demand for rights
    Date: 2020–12–30
  14. By: Baer, Moritz; Campiglio, Emanuele; Deyris, Jérôme
    Abstract: This article studies how institutional dynamics might affect the implementation of climate-related financial policies. First, we propose a three-dimensional framework to distinguish: i) motives for policy implementation (prudential or promotional); ii) policy instruments (informational, incentive or coercive); and iii) implementing authorities (political or delegated). Second, we use this framework to show how sustainable financial interventions in certain jurisdictions - most notably, Europe - rely solely on informational policies to achieve both promotional and prudential objectives. Policymakers in other jurisdictions - e.g., China - also implement incentive or coercive financial policies to achieve promotional objectives. Third, we identify two main institutional explanations for this European ‘promotional gap’: i) limited control of political authorities on financial dynamics; and ii) strong powers and independence of delegated authorities. This governance configuration leads to an institutional deadlock in which only measures fitting with both political and delegated authorities’ objectives can be implemented. Finally, we discuss the scenarios that might originate from the current institutional setting. We identify three possible evolutionary paths: i) a drift towards a green financial technocracy; ii) a re-politicization of delegated authorities; iii) a move towards fiscal-monetary coordination.
    Keywords: sustainable finance; climate change; low-carbon transition; central banks; financial supervisors; delegation; Centre for Climate Change Economics and Policy; 853050
    JEL: E44 E58 G28 G18 G14
    Date: 2021–04–22
  15. By: Muriel Gilardone (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Ce papier est la troisième contribution au projet scientifique interdisciplinaire porté par Marie Rota, visant à valoriser le rôle des plantes au travers du procédé de l'écriture. Il explore une façon de concevoir l'écriture des plantes nocives en économie depuis une perspective critique des approches standards, à partir d'une approche qui se situe au croisement de la philosophie du développement humain théorisé par Amartya Sen et de l'éthique permaculturelle initiée par Bill Mollison et David Holmgren. Il constituera une annexe du chapitre 3 de l'ouvrage à paraître aux éditions Le Bord de l'eau : Marie Rota (Ed.) (2021), Ecrire les plantes. Une approche interdisciplinaire.
    Keywords: développement humain,éthique permaculturelle,économie normative,éthique,externalités,biens communs,modèle agricole,choix collectif,souveraineté du consommateur,agentivité des personnes
    Date: 2020–06
  16. By: Nicolas Piluso (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - UT2J - Université Toulouse - Jean Jaurès - UT3 - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Cet article a pour objectif de remettre en cause une affirmation répandue au sujet de la théorie marxienne de la monnaie, selon laquelle cette dernière ne serait capable de rendre compte que des formes monétaires matérielles. Nous y démontrons que des éléments de la théorie marxienne permettent de rendre compte de l'évolution des formes monétaires matérielles vers une forme immatérielle de la monnaie. Par ailleurs, la théorie marxienne peut maintenir sa cohérence et conserver le principe de la valeur-travail dès lors que l'on considère (avec Jean Cartelier) que la création monétaire ne se fait pas ex nihilo.
    Date: 2021–07–10
  17. By: Nils Köbis (Center for Humans and Machines); Jean-François Bonnefon (UT1 - Université de Toulouse 1 Capitole); Iyad Rahwan (Center for Humans and Machines)
    Abstract: Machines powered by Artificial Intelligence (AI) are now influencing the behavior of humans in ways that are both like and unlike the ways humans influence each other. In light of recent research showing that other humans can exert a strong corrupting influence on people's ethical behavior, worry emerges about the corrupting power of AI agents. To estimate the empirical validity of these fears, we review the available evidence from behavioral science, human-computer interaction, and AI research. We propose that the main social roles through which both humans and machines can influence ethical behavior are (a) role model, (b) advisor, (c) partner, and (d) delegate. When AI agents become influencers (role models or advisors), their corrupting power may not exceed (yet) the corrupting power of humans. However, AI agents acting as enablers of unethical behavior (partners or delegates) have many characteristics that may let people reap unethical benefits while feeling good about themselves, indicating good reasons for worry. Based on these insights, we outline a research agenda that aims at providing more behavioral insights for better AI oversight.
    Keywords: machine behavior,behavioral ethics,corruption,artificial intelligence
    Date: 2021–06
  18. By: Paula Walk; Isabell Braunger; Josephine Semb; Carolin Brodtmann; Pao-Yu Oei; Claudia Kemfert
    Abstract: For climate change mitigation a rapid phase-out of fossil fuels such as coal is necessary. This has far-reaching gender-specific consequences. This paper presents a systematic map of the literature that examines the impact of historical coal phase-out processes on women and their role in these processes. The search process consists of screening 2,816 abstracts and reading 247 full-text studies. The analysis of the 73 publications ultimately included in the systematic map shows that past coal phase-outs meant, both opportunities (e.g. increased labour market participation) as well as burdens for women (e.g. double burden of job and household). It becomes clear that agency within coal transitions was also gendered. For example, it was difficult for women to gain access to union structures, which led them to organise themselves into grassroots movements. Our research shows that policies aiming for a just sustainability transition should always be explicitly gender-responsive. However, the impact of sustainability transitions on women's lives remains largely under-researched. Therefore, we propose a research agenda based on our findings containing six key issues that need to be addressed scientifically.
    Keywords: Gender, Coal Phase-Out, Just Transition, Systematic Map
    JEL: O13 Q52 B54
    Date: 2021

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