nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2022‒04‒25
twelve papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Transformative Innovation By Novy, Andreas; Barlow, Nathaniel; Frankhauser, Julia
  2. Strategi Pembangunan Ekonomi Islam M. Umer Chapra By Arikha, Dahlia
  3. Konsep Dasar Koperasi, Koperasi Syariah, dan UMKM By Arief, A. Anggie Zabrina
  4. Women who host: an intersectional critique of rentier capitalism on AirBnB By Gilchrist, Kate; Maier, George
  5. The instability of preferences: Uncertain futures and the incommensurable and intersubjective nature of value(s) By Bronk, Richard; Beckert, Jens
  6. Is Rawls' Theory of Justice Biased by Methodological Nationalism? By Speranta Dumitru
  7. Financialisation of Nature By Smith, Tone
  8. The impacts of climate change mitigation on work for the Austrian economy By Hoffmann, Maja; Spash, Clive L.
  9. Understanding Transport-Related Social Exclusion Through the Lens of Capabilities Approach By Luz, Gregorio; da Silva Portugal, Licinio
  10. On the Dynamics of Human Behavior: The Past, Present, and Future of Culture, Conflict, and Cooperation By Nathan Nunn
  11. Green financial products in the EU: A critical review of the status quo By Brühl, Volker
  12. Lebensweisen und Infrastrukturen des Alltäglichen Lebens: Transformative Innovationen für eine Zukunftsfähige Alltagsökonomie in Wien am Beispiel Atzgersdorf By Bärnthaler, Richard

  1. By: Novy, Andreas; Barlow, Nathaniel; Frankhauser, Julia
    Abstract: This article scrutinizes the potential of transformative innovations to contribute to social-ecological transformations. It problematizes the positive connotation linked to innovations in tackling contemporary social and environmental challenges by giving an overview of theories of innovation, with a focus on social innovations, and systematizing the multiple meanings of the term transformation. We define transformative innovations as innovations that contribute to those transformations that are desirable and feasible in a specific conjuncture. Desirable are innovations that enable a good life for all within planetary boundaries, feasible are those that can be implemented here and now, given specific constellations of actors, power relations and structural constraints and possibilities. Furthermore, we describe the current conjuncture, dwell on collective and political actions and explore one promising transformative innovation: creating and strengthening sustainable and inclusive provisioning systems, that are feasible in the short term and effective in the long-term.
    Keywords: social-ecological transformation, transformative innovation, social innovation, critical realism, provision systems, foundational economy
    Date: 2022
  2. By: Arikha, Dahlia
    Abstract: This research is a study with a literature method based on the author's search for Chapra's works on the Islamic Economics Development. In formulating economic development, Chapra first analyzed the thought of economic development from the west dominated by secular thought. As a result, Chapra found inconsistencies in secular economic development thinking which applied in the economic development system of the world's countries. Chapra believes that the inconsistencies of economic development cause destruction and bring the economy away from justice. Chapra's criticism led Chapra to the conclusion that Islam has great potential to fill consistency in socially equitable economic struggles.
    Keywords: Secular Economic Development, Islamic Economic Development, Justice
    JEL: A13 B00 C53 D63 E6
    Date: 2022–01–01
  3. By: Arief, A. Anggie Zabrina
    Abstract: Sharia cooperative is one of the non-governmental groups that aims as a people's economic institution to develop productive and investment businesses and improve living standards based on sharia principles. In the rapid development of Islamic cooperatives, Islamic cooperatives still have many obstacles in their development, both from internal and external sides. Meanwhile, MSME is a business or business whose actors are individuals, groups, or business entities. The classification in MSMEs is divided depending on the income or assets owned each year. Empowerment of micro, small and medium enterprises (MSMEs) and sharia cooperatives is a strategic step in improving and strengthening the basic economic life of the majority of the Indonesian people, particularly through providing employment opportunities and reducing inequality and poverty levels through sharia principles. Keyword : Cooperatives, Sharia Cooperatives, SMEs
    Date: 2022–03–21
  4. By: Gilchrist, Kate; Maier, George
    Abstract: Scholarship on AirBnB has often brought critical focus to the advancement of rentier capitalism and gentrification through the sharing economy. In this article we draw upon in-depth interviews with women in London who host their shared living space on AirBnB, to present meaningful empirical examples of women utilizing the platform as a way of surviving. Often, women in our research turned to AirBnB after facing exclusion from traditional labor markets, based on gender, age and/or disability. Others relied on AirBnB to meet their own housing needs, for instance: subletting their own bed to meet rent payments. Rather than departing from a critical class analysis, we instead hope to nuance understandings of rentierism on AirBnB by focusing on these women as complex intersectional subjects of capitalism. While many hosts fall clearly into the category of rentier capitalists, making money through property ownership, the lived realities of hosting were often more complex. We therefore use these women's lived experiences to complicate understandings of class subjectivity in the “sharing economy”, drawing upon an intersectional perspective to showcase women who are hosting in order to subsist.
    Keywords: class; disability; gender; platform economy; sharing economy; Wiley deal
    JEL: R14 J01 J1
    Date: 2022–02–17
  5. By: Bronk, Richard; Beckert, Jens
    Abstract: The default assumption of standard economics is to treat preferences as exogenously 'given', consistent with one another, 'revealed' by past choices, and context independent. There has been increased interest recently (within behavioural economics) in the impact of inconsistent or irrational preferences and (more broadly) in dynamic and endogenous preferences. This paper builds on these challenges to standard assumptions by analysing the pivotal role of three aspects of preference formation in explaining capitalist dynamics and market instability. These are the constant creation of new preferences and the indeterminacy of choice sets in the context of widespread product innovation; the moral indeterminacy implied by conflicting and incommensurable social norms attaching to market goods where there is no single scale of value and hence no unique set of rational trade-offs; and, lastly, the contingent social and market construction of the product differentiation, quality attribution, and value assessments central to preference formation. The paper concludes by considering implications for economics as a discipline.
    Keywords: endogenous preferences,incommensurable values,preference cascades,preference formation,product differentiation,quality uncertainty,endogene Präferenzen,inkommensurable Werte,Präferenzbildung,Präferenzkaskaden,Produktdifferenzierung,Qualitätsunsicherheit
    Date: 2022
  6. By: Speranta Dumitru (CERLIS - UMR 8070 - Centre de recherche sur les liens sociaux - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPC - Université Paris Cité)
    Abstract: Methodological nationalism assumes that, to understand a phenomenon, nation-states are the relevant units of analysis. This assumption has been recognized as a source of bias in most of the social sciences. Does it bias Rawls' understanding of justice, too? This paper argues that it does for at least two reasons. Firstly, what Rawls thinks justice requires on a global scale falls short of what states and international organisations actually do. Secondly, framing the difference principle in national terms, as Rawls did, is a way to increase the "citizenship rent", or the revenue a person receives just by being citizen of a rich country . The paper argues that methodological nationalism biases Rawls' understanding of justice by affecting both the plausibility and the coherence of his theory.
    Abstract: Le nationalisme méthodologique suppose que pour comprendre un phénomène, les États-nations sont les unités d'analyse pertinentes. Ce présupposé a été reconnu comme une source de biais dans la plupart des sciences sociales. Peut-il aussi biaiser la façon dont Rawls comprend la justice? Cet article répond par l'affirmative. Il y a au moins deux raisons qui prouvent l'existence d'un biais. Premièrement, ce que Rawls pense que la justice exige au niveau mondial est en deçà de ce que les États et les institutions internationales réalisent effectivement. Deuxièmement, formuler le principe de justice en termes nationaux, comme Rawls le fait, est une façon d'augmenter la "rente de la citoyenneté", c'est-à-dire le revenu qu'une personne obtient seulement en étant citoyenne d'un pays riche. Cet article soutient que le nationalisme méthodologique biaise la théorie de Rawls, affectant sa plausibilité et sa cohérence.
    Keywords: Nationalism,Methodological nationalism,Theory of justice,Rawls,Inequality,International justice,Global Inequality,Branko Milanovic,State-centrism,Groupism,Territorialism,Citizenship,Rent,Basic structure,Difference principle,Justice,International Aid,Equal Opportunity
    Date: 2021
  7. By: Smith, Tone
    Abstract: The ‘financialisation of nature’ is related to a shift in environmental governance—from regulation to marked-based approaches—involving strong state support to facilitate the establishment of ‘innovative financial instruments’ and markets related to nature. Although innovative finance got a bad reputation after the 2008 financial crisis, they are strongly encouraged in the environmental policy domain and supported by actors such as UNEP or the CBD. This paper explains the theoretical underpinning and the process of establishing such financial instruments, focusing in particular on offsetting and related ideas such as ‘net-zero’ calculations and ‘nature-based solutions’. It explains how natural entities are converted into abstract units of equivalence to allow the establishment of schemes for tradable ‘nature credits’ (supposedly) compensating damage across time and space. The financialisation of nature is then analysed and critiqued with respect to its lack of environmental effectiveness, its problematic socio-economic consequences and its impact on human-nature relationships. Instead of dealing with the environmental problems at hand, the conversion of nature into financial assets simply turns nature into objects of investment and speculation, while simultaneously creating a potential for financial bubbles.
    Keywords: environmental governance, innovative financial instruments, natural capital, offsetting, biodiversity banking, mitigation hierarchy, net zero, nature-based solutions, restoration of nature
    Date: 2021
  8. By: Hoffmann, Maja; Spash, Clive L.
    Abstract: Climate change mitigation – reducing emissions to zero and substituting fossil fuels through renewable energy within a maximum of two decades – entails major consequences for modern industrial societies and economies. Industrial societies are structurally centred and dependent on work, however, the implications for work are insufficiently studied. We conduct an empirical analysis of the impacts of climate mitigation on work across all sectors of the Austrian national economy. Using a mixed methods approach, we investigate all NACE-classified branches of economic activity, the respective number of persons employed, CO2 emissions, fossil fuel use, renewable energy potential, and the societal importance of work. We find that the impacts of climate mitigation on work are far more substantial than the literature usually suggests. Required are significant reductions of work across all sectors, and its structural reorganisation based on an altered energy basis. Yet, potential for deployment of renewable energy technologies is currently not given for many fields of work that are dependent on fossil fuels. While the category of essential work further indicates the kinds of work that may be prioritised in transformation processes, particularly problematic are those deemed both essential for society and incompatible with climate mitigation. The study provides an initial empirical basis for substantiated differentiation of kinds of work regarding these key aspects of climate change mitigation and structural transformation. It also points to the need for institutions to address these challenges and the problematic ways in which work is organised and held sacrosanct in modern society.
    Keywords: climate change mitigation, work, employment,fossil fuels, renewable energy, green jobs, just transition, degrowth, sectoral analysis, structural transformation
    Date: 2021
  9. By: Luz, Gregorio; da Silva Portugal, Licinio
    Abstract: The paper builds on the TRSE literature and investigates how the insights provided by the Capability Approach can help to inform inclusive transport planning. To address the literature lack of conceptual clarity, we provided a framework that considers how individuals may be prevented from travelling and accessing valued opportunities and how this may lead to TRSE. Ten different dimensions of TRSE that individuals may experience are suggested. Although some dimensions were already proposed in past work, we contributed to this framework by expanding their scope and proposing a new dimension. The paper concludes that policies aimed at reducing TRSE should be concerned with increasing the capabilities of those in accessibility poverty to a sufficient level that enables individuals' participation in key opportunities of the society. We identified that not every accessibility measure is suitable for assessing TRSE, and the selection of measures must pay attention to their alignment with the idea of accessibility as a human capability. We recommend that conducting an aggregated analysis may be helpful to identify a suitable accessibility measure and to identify regions at risk of TRSE; however, to have a deep understanding of an individual's TRSE risk factors, a bottom-up analysis is necessary.
    Date: 2021–11–17
  10. By: Nathan Nunn
    Abstract: I provide a theoretically-guided discussion of the dynamics of human behavior, focusing on the importance of culture (socially-learned information) and tradition (transmission of culture across generations). Decision-making that relies on tradition can be an effective strategy and arises in equilibrium. While dynamically optimal, it generates static `mismatch.' When the world changes, since traits evolve slowly, they may not be beneficial in their new environment. I discuss how mismatch helps explain the world around us, presents special challenges and opportunities for policy, and provides important lessons for our future as a human species.
    JEL: B5 B52 N00 O10
    Date: 2022–02
  11. By: Brühl, Volker
    Abstract: The financial sector plays an important role in financing the green transformation of the European economy. A critical assessment of the current regulatory framework for sustainable finance in Europe leads to ambiguous results. Although the level of transparency on ESG aspects of financial products has been significantly improved, it is questionable whether the complex, mainly disclosure-oriented architecture is sufficient to mobilise more private capital into sustainable investments. It should be discussed whether a minimum Taxonomy ratio or Green Asset Ratio has to be fulfilled to market a financial product as "green". Furthermore, because of the high complexity of the regulation, it could be helpful for the understanding of private investors to establish a simplified green rating, based on the Taxonomy ratio, to facilitate the selection of green financial products.
    JEL: G10 G20
    Date: 2022
  12. By: Bärnthaler, Richard
    Abstract: Der Beitrag untersucht innovative und kontextspezifische Strategien für eine zukunftsfähige Stadtentwicklung in Wien. Dabei skizzieren wir zuerst eine kurze Geschichte des Innovationsbegriffs und plädieren für ein neues Innovationsverständnis. Transformative Innovationen verknüpfen einen alltagsökonomischen Zugang zu Innovation, d.h. die qualitativ hochwertige und inklusive Befriedigung kurzfristiger Alltagsbedürfnisse (insbesondere durch kollektiven Konsum), mit langfristigen ökologischen Notwendigkeiten. Vermeintlich „ökologische“ Umweltpolitik wird so zur sozialökologischen Mitweltpolitik. Nur als solche kann eine Politik der sozialökologischen Transformation mehrheitsfähig, d.h. hegemonial, werden. Daran anknüpfend untersucht der Beitrag Ansatzpunkte für transformative Innovationen am Fallbeispiel Atzgersdorf. Die Analyse dieses Fallbeispiels zeigt (1) wie die Befriedigung von, in der Nachbarschaft kollektiv definierten Alltagsbedürfnissen, insbesondere die Stärkung der erweiterten Nahversorgung, zu einem sozialökologisch besseren gesellschaftlichen Naturverhältnis im Sinne einer Nachbarschaft der kurzen Wege beitragen kann. Um dieses Potenzial zu realisieren (2) problematisieren wir strukturelle Hindernisse, insbesondere die Dominanz des motorisierten Individualverkehrs, und (3) erkunden konkrete Pfade um diese Hindernisse effektiv zu überwinden und neue Lebensformen zu etablieren.
    Keywords: Sozialökologische Transformation, transformative Innovationen, Mitweltpolitik, Alltagsökonomie, Lebensformen, gesellschaftliches Naturverhältnis, Stadtentwicklung, Wien
    Date: 2022

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