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on Heterodox Microeconomics |
|
Issue of 2022‒02‒14
eighteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Giancarlo Bertocco; Andrea Kalajzić |
| Abstract: | To hypothesize the existence of a relationship between money and savings means questioning a fundamental pillar of the mainstream economic theory: the concept of neutrality of money. According to the traditional theory economic phenomena such as savings can be defined independently from money. The objective of this work is to show that savings cannot be defined independently from money and that savings must be considered as a monetary phenomenon. The paper consists of two parts. Starting from Adam Smith’s analysis and continuing up to the approaches developed by contemporary economists, in the first part we summarize the most significant aspects and the limitations of the mainstream theory. In the second part we specify the reasons of the non-neutrality of money and of the monetary nature of savings. |
| Keywords: | Savings, money, development, Keynes, Schumpeter |
| JEL: | B12 B13 B52 E12 E44 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2206&r= |
| By: | Elisa Palagi (SSSUP - Scuola Universitaria Superiore Sant'Anna [Pisa]); Mauro Napoletano (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po, SKEMA Business School, SSSUP - Scuola Universitaria Superiore Sant'Anna [Pisa]); Andrea Roventini (SSSUP - Scuola Universitaria Superiore Sant'Anna [Pisa], OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po); Jean-Luc Gaffard (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po, SKEMA Business School) |
| Abstract: | We build an agent-based model to study how coordination failures, credit con- straints and unequal access to investment opportunities affect inequality and aggre- gate income dynamics. The economy is populated by households who can invest in alternative projects associated with different productivity growth rates. Access to investment projects also depends on credit availability. The income of each house- hold is determined by the output of the project but also by aggregate demand conditions. We show that aggregate dynamics is affected by income distribution. Moreover, we show that the model features a trickle-up growth dynamics. Redis- tribution towards poorer households raises aggregate demand and is beneficial for the income growth of all agents in the economy. Extensive numerical simulations show that our model is able to reproduce several stylized facts concerning income inequality and social mobility. Finally, we test the impact of redistributive fiscal policies, showing that fiscal policies facilitating access to investment opportunities by poor households have the largest impact in terms of raising long-run aggregate income and decreasing income inequality. Moreover, policy timing is important: fiscal policies that are implemented too late may have no significant effects on in- equality. |
| Keywords: | income inequality,social mobility,credit constraints,coordination failures,effective demand,trickle-up growth,fiscal policy JEL classification: C63,D31,E63,E21 |
| Date: | 2022–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03509091&r= |
| By: | Arkadiusz Jędrzejewski; Katarzyna Sznajd-Weron; Jakub Pawłowski; Anna Kowalska-Pyzalska |
| Abstract: | We develop an empirically grounded agent-based model to explore the purchasing decisions of mutually interacting agents (consumers) between three types of alternative fuel vehicles. We calibrate the model with recently published empirical data on consumer preferences towards such vehicles. Furthermore, running the Monte Carlo simulations, we show possible scenarios for the development of the alternative fuel vehicle market depending on the marketing strategies employed. |
| Keywords: | Agent-based model; Diffusion; Alternative fuel vehicles |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ahh:wpaper:worms2201&r= |
| By: | Reinke, Rouven |
| Abstract: | Dieser Beitrag nimmt eine feld-und kapitaltheoretische Analyse der Volkswirtschaftslehre in Deutschland vor. Die Machtstrukturen auf dem Feld der ökonomischen Disziplin werden dabei anhand der(ungleichen) Verteilung des ökonomischen, sozialen und symbolischen Kapitals skizziert. Auf Grundlage einer wissenschaftlichen Indikatorenkonstruktion werden die einzelnen Kapitalsorten operationalisiert. Dabei zeigen sich deutliche Monopolisierungstendenzen zugunsten des Mainstream-Paradigmas sowie eine erhebliche Konzentration von Machtressourcen auf die großen Universitätsstandorte. Verbunden sind diese Ausprägungen mit einem wachsenden Bedeutungsgewinn von Colander's Edge, einer nahezu abgeschlossenen Marginalisierung der Heterodoxie und einem deutlichen Zentrum-Peripherie-Gefälle. Auf dem Feld der Volkswirtschaftslehre ist demzufolge eine sozialstrukturelle Horizontalisierung und Elitisierung der Universitätsstandorte und ein epistemischer Paradigmenmonismus zu beobachten. |
| Keywords: | Paradigmenmonismus,Kapitaltheorie,Social Studies of Economics,Wissenschaftssoziologie |
| JEL: | A11 A14 B4 B5 Z1 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cessdp:91&r= |
| By: | Natalie Pierson (The New School, United States) |
| Abstract: | This paper examines private exploration and colonization of space, inspired by the growing interest and advancements in developing space by private industries, notably SpaceX. Marx’s theory of primitive accumulation and David Harvey’s theory of “spatial fix†provide a framework from which to understand why billionaires are attracted to the business of space. Matters of legality are considered in the regulation of space including treaties, their applications, and the unforeseen gaps in the law left by unanticipated private sector growth. Economic feasibility is discussed through cost and revenue estimates of possible marketable products. Environmental impacts, both on Mars and Earth, are reviewed regarding physical landscape and biological contamination. Finally, it explores the ethics of a developing colony in a stressful environment and seeks to unpack the term colonization in a celestial setting. This paper concludes that bringing capitalist ideals and methods into space is not a solution for problems created by capitalism on Earth. Given the concerns identified, it may well exacerbate them. |
| Keywords: | Mars, space, colonization, primitive accumulation, private industry |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:smo:lpaper:0091&r= |
| By: | Julia M. Puaschunder (The New School, Department of Economics, School of Public Engagement, New York) |
| Abstract: | The Green New Deal (GND) is a governmental strategy to strengthen the United States economy and foster inclusive growth. The GND is targeted at sharing economic growth benefits more equally within society. How to align economic interest with justice and fairness notions is the question of our times when considering the massive challenges faced in terms of environmental challenges, healthcare demands and social justice pledges. First, this paper will outline what the GND is, how the GND is implemented and why it matters in its multiple implementation facets and international angles. Second, the Green New Deal will be presented as a possibility to make the world and society more equitable in the domains of environmental justice, access to affordable healthcare and social justice excellence. Ethical imperatives and equity mandates lead the economic rational behind redistribution in the GND as social peace, health and favorable environmental conditions are prerequisites for productivity. The GND offers hope in making the world and society but also overlapping generations more equitable and thus to bestow peace within society, around the world and over time. In answering the question if the GND is equitable, one has to acknowledge that the GND is a fairly novel phenomenon with international variations and diverse implementation strategies. |
| Keywords: | Access to Affordable Healthcare, Climate Change, Economics of the Environment, Environmental Justice, Environmental Governance, Green New Deal, Healthcare, Monetary Policy, Multiplier, Social Justice, Sustainability |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:smo:lpaper:0051&r= |
| By: | Farnworth, Cathy Rozel; Lecoutere, Els; Galiè, Alessandra; Van Campenhout, Bjorn; Elias, Marlène; Ihalainen, Markus; Roeven, Lara; Bharati, Preeti; Valencia, Ana Maria Paez; Crossland, Mary; Vinceti, Barbara; Monterroso, Iliana |
| Abstract: | An increasing body of literature suggests that agriculture is “feminizing†in many low and middle-income countries. Definitions of feminisation of agriculture vary, as do interpretations of what drives the expansion of women’s roles in agriculture over time. Understanding whether, how, and why feminisation of agriculture is occurring, and finding ways to properly understand and document this process, requires effective research methodologies capable of producing nuanced data. This article builds on five research projects that set out to deepen narratives of feminisation of agriculture by empirically exploring the dynamics and impacts of diverse processes of feminisation—or masculinisation—of agriculture on gender relations in agriculture and food systems. To contribute to the development of effective research methodologies, the researchers working on these projects associate the insights they have derived in their empirical research with the methodologies they have used. They reflect on how their methodological innovations enabled them to obtain new, or more nuanced, insights into processes of feminisation of agriculture. A first insight is that the definition of ‘feminisation of agriculture’ is a decisive factor in determining the evidence we produce on the process. Second, the feminisation of agriculture should be understood as a nonlinear continuum. Research methodologies need to be capable of capturing dynamics, complexity, as well as multiple and diverse context—and time—specific drivers. Third, bias in data can arise from gender norms which mediate whether women are acknowledged by wider society as farmers in their own right. Such norms may result in significant underestimations of women’s roles in agriculture. This observation warrants a critical awareness that data used to measure or proxy aspects of feminisation of agriculture may reflect such biases. Finally, some research methodologies can be useful to identify and leverage entry points to support women’s agency and empowerment in processes of feminisation of agriculture. |
| Keywords: | feminization; gender; agriculture; research; empowerment; women; women's empowerment; methodology; feminisation of agriculture |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2077&r= |
| By: | Thitithep Sitthiyot |
| Abstract: | This paper discusses serious drawbacks of existing knowledge in macroeconomics and finance in explaining and predicting economic and financial phenomena. Complexity science is proposed as an alternative approach to be used in order to better understand how economy and financial market work. This paper argues that understanding characteristics of complex system could greatly benefit financial analysts, financial regulators, as well as macroeconomic policy makers. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.15294&r= |
| By: | Andrew Kirillov; Sehyun Chung |
| Abstract: | The StableSims project set out to determine optimal parameters for the new auction mechanism, Liquidations 2.0, used by MakerDAO, a protocol built on Ethereum offering a decentralized, collateralized stablecoin called Dai. We developed an agent-based simulation that emulates both the Maker protocol smart contract logic, and how profit-motivated agents ("keepers") will act in the real world when faced with decisions such as liquidating "vaults" (collateralized debt positions) and bidding on collateral auctions. This research focuses on the incentive structure introduced in Liquidations 2.0, which implements both a constant fee (tip) and a fee proportional to vault size (chip) paid to keepers that liquidate vaults or restart stale collateral auctions. We sought to minimize the amount paid in incentives while maximizing the speed with which undercollateralized vaults were liquidated. Our findings indicate that it is more cost-effective to increase the constant fee, as opposed to the proportional fee, in order to decrease the time it takes for keepers to liquidate vaults. |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2201.03519&r= |
| By: | Emmanuel S. de Dios (School of Economics, University of the Philippines Diliman) |
| Abstract: | I provide a formal explanation of the relationship between the virtues of prudence, justice, and benevolence described by Adam Smith in the Theory of moral sentiments and connect these with the themes Smith subsequently discusses in the Wealth of nations. I contend that the other-regarding concerns Smith discusses as internally held virtues in TMS are presumed addressed instead by formal mechanisms in the WN -- particularly the third-party institutions of law and anonymous market exchange. |
| Keywords: | Adam Smith Problem; virtues; institutions; self-interest; altruism |
| JEL: | B12 B15 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:phs:dpaper:202106&r= |
| By: | Paul Carrillo-Maldonado; Michalis Nikiforos |
| Abstract: | This paper estimates the distribution-led regime of the US economy for the period 1947-2019. We use a time varying parameter model, which allows for changes in the regime over time. To the best of our knowledge this is the first paper that has attempted to do this. This innovation is important, because there is no reason to expect that the regime of the US economy (or any economy for that matter) remains constant over time. On the contrary, there are significant reasons that point to changes in the regime. We find that the US economy became more profit-led in the first postwar decades until the 1970s and has become less profit-led since; it is slightly wage-led over the last fifteen years. |
| Keywords: | Wage-led; Profit-led; Distribution; Growth; Time-Varying Parameters (VAR) |
| JEL: | E11 E12 C11 C3 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1001&r= |
| By: | Clémence Thebaut (NET - Neuroépidémiologie Tropicale - CHU Limoges - Institut d'Epidémiologie Neurologique et de Neurologie Tropicale - INSERM - Institut National de la Santé et de la Recherche Médicale - GEIST - Institut Génomique, Environnement, Immunité, Santé, Thérapeutique - UNILIM - Université de Limoges, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, PSL - Université Paris sciences et lettres, UNILIM - Université de Limoges) |
| Abstract: | This article is part of a research project which seeks to draw on the methods and tools put forward by Michel Foucault to shed light on all areas of discussion concerning the economic assessment of health. It examines the epistemological basis of preference elicitation methods, based on welfare economics, which are used today to assess the benefits of health care. To do so, this research draws on Foucault's episteme set out in The Order of things. More specifically the article considers that the rejection of interpersonal comparisons that foreshadowed the marginalist revolution and the transition to ordinal measures of utility during the 19th century can be explained by the shift from the classical episteme to a modern episteme. The question of the cardinal or ordinal measurement of utility is central to the economic assessment of health care. Indeed, the methods for valuing health benefits, especially using QALYs, are similar to cardinal measures, in contrast to the paradigm of the welfare economics of which they are meant to be part. |
| Abstract: | Cet article s'inscrit dans le cadre d'un projet de recherche visant à mobiliser les méthodes et outils proposés par Michel Foucault pour apporter un éclairage sur un ensemble de discussions que soulève l'évaluation économique en santé. Nous nous intéressons ici à l'ancrage épistémologique des méthodes de révélation des préférences individuelles issues de l'économie du bien-être, qui sont aujourd'hui utilisées pour valoriser les bénéfices en santé, en nous appuyant sur la typologie des épistémès de Foucault dans les Mots et les choses. Plus précisément, nous envisageons que le rejet des comparaisons interpersonnelles, que préfigure la révolution marginaliste et la transition vers une mesure ordinale des utilités, s'explique par le passage d'une épistémè classique à une épistémè moderne. La question du caractère cardinal ou ordinal de la mesure de l'utilité reste centrale pour l'évaluation économique en santé. En effet, les méthodes d'évaluation des bénéfices en santé, notamment au moyen des QALY, se rapprochent d'une mesure cardinale, contrairement au paradigme de la nouvelle économie du bien-être dans lequel elle est censée s'inscrire. |
| Keywords: | Economie du bien-être,Evaluation économique en santé,Epistémologie,Foucault |
| Date: | 2021–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03499454&r= |
| By: | Arpan Ganguly; Danilo Spinola |
| Abstract: | This article aims to theoretically and empirically study the macroeconomic interactions between productive structure and income distribution in the context of the Global Value Chains (GVC). Firstly, we develop a theoretical framework, inspired by the Structuralist macroeconomic literature, establishing distinct regimes in the scenario of globalized production chains. The regimes are defined in terms of (1) a structure/diversification regime, (2) an integration/GVC regime, both drawn from the Balance of Payments Constrained Model (BPCM) literature, and (3) a functional income distribution regime. The theoretical framework guides the selection of proxies used to characterize each regime, measured using Principal Component Analysis (PCA) scores. That allows us to identify country patterns in a structured typology. Finally, we focus on growth trajectories, estimating the causal relationship between each of the beforementioned regimes and per-capita growth, using IV estimations. The dataset consists of 37 countries, with sources from the World Development Indicators (WDI), World Input-Output Database (WIOD), Trade in Value Added (TiVA), and the Penn World Tables (PWT). On one hand, this article contributes to structuralist growth models that typically estimate demand and distribution regimes independently, thereby offering a unified narrative on regimes of economic growth in the context of GVCs. On the other hand, our typology depicts how growth dynamics vary distinctly by geographical regions and how globalization has retained and accelerated processes of uneven development globally. The results show that (1) developed countries are more inclusive in terms of distribution under GVCs, (2) structural change has been exclusive, and growth patterns have been following a specialized pattern, and (3) the growth pattern has been associated with higher integration, but less diversification. |
| Keywords: | Global Value Chains, Uneven Development, Income Distribution |
| JEL: | E12 F15 F43 O47 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2207&r= |
| By: | Eftichios S. Sartzetakis (Department of Economics, University of Macedonia); Anastasios Xepapadeas (Department of International and European Economic Studies, Athens University of Economics and Busines); Athanasios Yannacopoulos (Department of Statistics, Athens University of Economics and Business) |
| Abstract: | Continuously increasing consumption of material goods drives current resource and environmental crises, including climate change and loss of biodiversity. Technology o¤ers solutions, the development and the adoption of which though is not at the speed required to address the crises. Therefore, demand side responses have to be triggered using policies with economists suggesting the use of price signals. Increases in fuel prices during the last decade in both Europe and North America though, have not yielded the expected reductions in the fuel economy. Furthermore, ambitious increases in fuel prices have resulted in considerable opposition, especially by low-income people. The present paper o¤ers an explanation for the reduced e¤ectiveness of environmental taxation by focusing on relatively high-income individuals whose consumption of highly polluting material goods is driven by motivations to improve their social status. Furthermore, the paper shows that complementing the tax with information provision aiming at moderating status seeking overconsumption improves social welfare. Decoupling consumption of highly polluting material goods from social status in individuals?well-being, through information campaigns and/or adver-tisement, could have a substantial environmental e¤ect directly and also indirectly by improving the e¤ectiveness of taxation. |
| Keywords: | status-seaking, replicator dynamics, information provision, environmental taxation |
| JEL: | Q53 Q58 D62 D82 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2022_01&r= |
| By: | Sherwood, Charles |
| Abstract: | I argue that lying in business negotiations is pro tanto wrong and no less wrong than lying in other contexts. First, I assert that lying in general is pro tanto wrong. Then, I examine and refute five arguments to the effect that lying in a business context is less wrong than lying in other contexts. The common thought behind these arguments—based on consent, self-defence, the “greater good,” fiduciary duty, and practicality—is that the particular circumstances which are characteristic of business negotiations are such that the wrongness of lying is either mitigated or eliminated completely. I argue that all these “special exemption” arguments fail. I conclude that, in the absence of a credible argument to the contrary, the same moral constraints must apply to lying in business negotiations as apply to lying in other contexts. Furthermore, I show that for the negotiator, there are real practical benefits from not lying. |
| Keywords: | business ethics; negotiation; lying; consent; self-defence; fiduciary duty; CUP deal |
| JEL: | L81 |
| Date: | 2021–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:113331&r= |
| By: | Eftichios Sartzetakis; Anastasios Xepapadeas; Athanasios Yannacopoulos |
| Abstract: | Continuously increasing consumption of material goods drives current resource and environmental crises, including climate change and loss of biodiversity. Technology offers solutions the development and the adoption of which though is not at the speed required to address the crises. Therefore, demand side responses have to be triggered and the most common economic suggestion is to use price signals. Increases in fuel prices during the last decade in both Europe and North America though, have not yielded the expected reductions in the fuel economy. Furthermore, ambitious increases in fuel prices have resulted in considerable opposition, especially by low-income people. The present paper offers an explanation for the reduced effectiveness of environmental taxation by focusing on relatively high-income individuals whose consumption of highly polluting material goods is driven by motivations to improve their social status. Furthermore, the paper shows that complementing the tax with information provision aiming at moderating status seeking overconsumption improves social welfare. Convincing people, through information campaigns and/or advertisement that consuming highly polluting material goods does not improve their social status could have a substantial effect which perfectly complements taxation, improving actually its effectiveness. |
| Keywords: | status-seaking, replicator dynamics, information provision, environmental taxation |
| JEL: | Q53 Q58 D62 D82 |
| Date: | 2022–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2207&r= |
| By: | Jhaveri, Nayna |
| Abstract: | Gender relations in households and communities play a formative role in how tenure rights — such as access to, use, and management of land and various natural resources — are practiced across multifunctional landscapes. Such rights can be based on statutory recognition or on customary tenure arrangements. Women’s tenure rights are generally weaker than men’s, both in terms of the range of rights they can assert and the degree of authority over those rights. In addition, women often hold a more informal and negotiated set of rights than men, be it for private or collective use of land and natural resources. These gender differences are the outcome of decision-making and governance at the household and community level. In any rural landscape in developing countries, a household’s livelihood portfolio will be affected by the gender dynamics at work across the landscape mosaic of different tenure niches. For example, women may easily access privately owned home gardens (one type of tenure niche) to harvest a range of vegetables, fruits, and medicinal plants, but not so easily access trees in collective forests for harvesting timber to sell in the market. |
| Keywords: | WORLD, gender, tenure security, land governance, governance, landscape, poverty reduction, |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:pimfbs:1286379993&r= |
| By: | Kolev, Stefan |
| Abstract: | Oskar Anderson (1887-1960) gehörte zu den Gründungsvätern der Ökonometrie. Dieser Aufsatz fokussiert auf die Relevanz seines statistischen und ökonometrischen Werkes für die Konjunkturforschung in der Zwischenkriegszeit. Der Schwerpunkt liegt auf der Periode zwischen 1923 und 1942, die er als russischer Emigrant in Bulgarien verbrachte und als seine wissenschaftlich produktivste Periode gilt. In dieser Zeit veröffentlichte Anderson bahnbrechende Beiträge, in denen er ökonomische Theorie, empirische Methoden und angewandte Arbeit an Datensätzen verknüpfte. Er vernetzte sich international in den Kontexten der jungen theoretischen und politikberatenden Ökonometrie, wobei die Verbindung zum Wiener Institut für Konjunkturforschung und dessen Direktor Oskar Morgenstern besonders intensiv war. 1935 gründete Anderson mit Kofinanzierung der Rockefeller Foundation das "Statistische Institut für Wirtschaftsforschung an der Staatlichen Universität Sofia" (SWIFO) und blieb Direktor des SWIFO bis 1942. Anschließend wurde er Leiter der Abteilung für Ostforschung am Kieler Institut für Weltwirtschaft. Ab 1947 wirkte er als Ordinarius in München und kämpfte für die Verankerung der quantitativen Methoden in der Ökonomen-Ausbildung an westdeutschen Fakultäten. In den späten 1940er Jahren war Anderson an der Gründung des ifo Instituts beteiligt. Sein Sohn Oskar Anderson jun. (1922-2006) trug ab den frühen 1950er Jahren maßgeblich zur Konstruktion und Verfeinerung des ifo Konjunkturtests bei. |
| JEL: | B22 B23 B53 C32 N14 O14 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hwwirp:198&r= |