nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2022‒05‒16
thirteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Historical Time and the Current State of Post-Keynesian Growth Theory By Ettore Gallo; Mark Setterfield
  2. The Philosophical interpretation of Fragility as an Economics concept By Tweneboah Senzu, Emmanuel
  3. Waves of Neoliberalism: Revisiting the Authoritarian patterns of capitalism in South America (1940-1990), part I By César Castillo-García
  4. Fundamental Uncertainty as Model Uncertainty By Owen F. Davis
  5. The Ethics of Alternative Currencies By Louis Larue; Camille Meyer; Marek Hudon; Joakim Sandberg
  6. Moving past sustainable transport studies: Towards a critical perspective on urban transport By Wojciech Keblowski; Frédéric Dobruszkes; Kobe Boussauw
  7. Artificial Intelligence and work: a critical review of recent research from the social sciences By Jean-Philippe Deranty; Thomas Corbin
  8. Fiscal and Monetary Policies in an Agent-Based Model By Pongpitch Amatyakul; Nutnicha Theppornpitak
  9. Data Production and the coevolving AI trajectories: An attempted evolutionary model. By Andrea Borsato; Andre Lorentz
  10. Repatriates Who Remain Loyal to Their Organization in Spite of Their Frustration. Analysis of A Paradox Using the Gift/Countergift Theory By Jérémy Vignal; Oiry Ewan
  11. Robots and women in manufacturing employment By Zuazu-Bermejo, Izaskun
  12. Describing Sen's Transitivity Condition in Inequalities and Equations By Fujun Hou
  13. Escaping the Fantasy Land of Freedom in Organizations: The Contribution of Hannah Arendt By Yuliya Shymko; Sandrine Frémeaux

  1. By: Ettore Gallo (Department of Economics, New School for Social Research); Mark Setterfield (Department of Economics, New School for Social Research)
    Abstract: This paper discusses Joan Robinson’s remarks on the importance of historical time in economic analysis. On the one hand, Joan Robinson expressed skepticism with equilibrium analysis as such, arguing that as soon as economists take into account the uncertainty of expectations, history needs to replace equilibrium. On the other, Robinson stressed that, while building economic models, one must be aware that it is historical time rather than logical time that rules reality, warning against the methodological mistake of confusing comparisons of equilibrium positions with a movement between them. We argue that these criticisms point to the possibility of thinking in terms of two different ‘levels’ of historical time – a higher (fundamentalist) level, and a practical (and more analytically tractable) lower level. Using this distinction, we provide a taxonomy of existing strands of post-Keynesian growth theory that are consistent with the concept of low-level historical time. It is shown that despite appearances to the contrary, much post-Keynesian growth theory displays fidelity to Joan Robinson’s concern with the importance of historical time.
    Keywords: Historical time, economic growth, provisional equilibrium, traverse, shifting equilibrium
    JEL: B31 B41 E11 E12 O41
    Date: 2022–04
  2. By: Tweneboah Senzu, Emmanuel
    Abstract: The foundation upon which this paper was submitted is to rigorously conceptualize the adoption, and the interpretation in the use of the term ‘Fragility’ in a strict economics perspective, to avoid the continual arbitrary interpretation of the terminology that confuses its explanation power in a strict economic context to that of political economy as a school of thought within the Lexicon of the School of Social Sciences.
    Keywords: Fragility, Concept, Interpretation, Pedagogy, Economics, Political Economy
    JEL: A2 E6 F4 G1 H5 P0
    Date: 2022–04
  3. By: César Castillo-García (Department of Economics, New School for Social Research)
    Abstract: This paper is the first part of a reconstruction of the evolution of neoliberalism in Peru throughout its different historical waves. The Peruvian case was an ideological precursor of the South American neoliberal authoritarianism before the 1950s. In this regard, I challenge a standard historical narrative that states neoliberalism is an outcome of the transfer of ideas like the case of the Chilean Chicago-Boys and their other Latin American counterparts (Valdés 1995). The Peruvian experience also constituted an opening episode of the deep transnational connection between the main neoliberal networks (Walter Lippmann Colloquium and the Mont Pèlerin Society) and Latin American economic experts. Since late 1940s, neoliberal intellectuals have implemented institutions and a hegemonic discourse affecting current economic affairs in Peru. They played a role in influencing public opinion through political relations and media outlets and directly devising economic policies. The discourse and actions of the neoliberals in Peru have left institutional legacies targeting topics as economic systems, the fiscal and monetary policies, the role of the State, development policies, the private initiative and foreign aid.
    Date: 2022–04
  4. By: Owen F. Davis (Department of Economics, New School for Social Research)
    Abstract: Economic agents must form models of their environments in order to develop expectations and make decisions, yet these models are certain to be misspecified. An agent aware of their own inability to perfectly capture the structural relationships of their observed world will entertain model uncertainty. Under the plausible assumptions that the “true” model is not known to the decision-maker and the decision-maker knows this—known as the M-open case in Bayesian statistics—uncertainty over propositions becomes numerically irreducible. The notion of model uncertainty is developed with reference to Post Keynesian theories of fundamental uncertainty as well as relevant areas of study within decision theory, including the growing literature on unawareness. The model uncertainty view poses challenges for both literatures and provides a novel justification for the types of uncertainty associated with Knight and Keynes.
    Keywords: Fundamental uncertainty, model uncertainty, decision theory, Post Keynesian
    JEL: C11 D81 E12
    Date: 2022–04
  5. By: Louis Larue; Camille Meyer; Marek Hudon; Joakim Sandberg
    Abstract: Alternative currencies are means of payment that circulate alongside-as an alternative or complement to-official currencies. While these currencies have existed for a long time, both society and academia have shown a renewed interest in their potential to decentralize the governance of monetary affairs and to bring people and organizations together in more ethical or sustainable ways. This article is a review of the ethical and philosophical implications of these alternative monetary projects. We first discuss various classifications of these currencies before analyzing the ethical challenges linked to the way they tackle social and environmental issues. We also examine the incentive-based and coercive mechanisms used by these currencies from an ethical perspective and debate the promises and perils of monetary decentralization and democracy. We conclude by identifying an agenda for future research.
    Keywords: alternative currencies; complementary currencies; cryptocurrencies; ethics of money; nature of money
    Date: 2022
  6. By: Wojciech Keblowski; Frédéric Dobruszkes; Kobe Boussauw
    Abstract: This article introduces a virtual special issue that carries the same title. We open our editorial by observing that the contemporary transport debate continues to find strong inspiration in the notion of “sustainable” development, which strongly resonates among academics and practitioners alike. While placing important environmental issues on the agenda, sustainable approaches to urban transport exhibit a number of serious limitations, as, as it has insufficiently engaged with diverse social, political and economic dynamics that shape how transport is planned, regulated, organised, practiced and contested in urban contexts.To respond to this gap, we propose to develop an emerging “critical” perspective on urban transport, which considers it to be socially constructed and contested, underpinned by structural power dynamics, class relations, gender and patriarchy, ethnicity and race. Building on critical urban theory, we argue that being critical about urban transport involves approaching it as a phenomenon that reproduces complex social and spatial processes, and acts as a crucial component of capitalism. On the one hand, this means analysing transport policy, practice and infrastructure through the lens of capitalist dynamics observed in particular urban contexts. On the other, it entails exploring the complexity of processes, institutions and interests that make up a city through its transport.While critical research on transport and mobility may be on the rise, it still constitutes a rather marginal research area. Therefore, the objective of the virtual special issue is to advance the critical agenda of transport research. The diverse contributions to this virtual special issue offer a number of avenues for thinking critically with and through urban transport as part and parcel of capitalism. Our authors discuss theoretical and methodological frameworks for studying transport, and offer empirical analyses of specific policies and practices, inquiring into their sociospatial impact, political-economic embeddedness and the power relations and regulatory frameworks by which they are shaped.What emerges from this anthology is that there is no singular or universal way of being critical about urban transport. Unravelling and analysing power and ideology underpinned and reproduced by transport in urban settings is by no means an exercise that hinges on a particular theoretical lens or focuses on a specific social group or factor. As this endavour is far from complete, we outline several directions for further critical research. Notably, we suggest to diversify spaces and scales of analysis by exploring long-distance travel, to diversify research objects by analysing freight and logistics. We also note that future research could consider diversifying social theories and epistemologies through which transport is perceived, to contribute to a decolonial turn in transport studies.
    Date: 2022–03–01
  7. By: Jean-Philippe Deranty; Thomas Corbin
    Abstract: This review seeks to present a comprehensive picture of recent discussions in the social sciences of the anticipated impact of AI on the world of work. Issues covered include technological unemployment, algorithmic management, platform work an the politics of AI work. The review identifies the major disciplinary and methodological perspectives on AI's impact on work, and the obstacles they face in making predictions. Two parameters influencing the development and deployment of AI in the economy are highlighted, the capitalist imperative and nationalistic pressures.
    Date: 2022–02
  8. By: Pongpitch Amatyakul; Nutnicha Theppornpitak
    Abstract: In this paper, we aim to assess the impacts of using monetary policies and fiscal transfers on the economy using an agent-based model. The model used is based on the original model developed by Ashraf et al. (2017), where agents endogenously develop trading networks of goods and labor, to study the impacts of the banking sector, and extended by Popoyan et al. (2017) to include different policy rate rules and macroprudential policy. We evaluate different fiscal policies and their interactions with monetary policy on how the economy performs based on aggregates such as total output and inflation, as well as based on granular data such as the wealth and consumption of the agents at specific percentiles. The findings are that consumption-based policies are best for reducing the aggregate effects on GDP, targeted policies are efficient if the government's goal is to help a specific group, and unconditional transfers are the least efficient of the three. In addition, we analyze the effects of implementing monetary and fiscal policies synchronously after a COVID-19-like crisis, and we do not find conclusive evidence that combining the two policies are better than the sum of the individual effects, but it is likely to be necessary to do both in order to get the economy back to its original path in a timely manner.
    Keywords: Monetary policy; Fiscal policy; Simulation
    JEL: E52 E62
    Date: 2022–04
  9. By: Andrea Borsato; Andre Lorentz
    Abstract: This paper contributes to the understanding of the relationship between the nature of data and the Artificial Intelligence (AI) technological trajectories. We develop an agentbased model in which firms are data producers that compete on the markets for data and AI. The model is enriched by a public sector that fuels the purchase of data and trains the scientists that will populate firms as workforce. Through several simulation experiments we analyze the determinants of each market structure, the corresponding relationships with innovation attainments, the pattern followed by labour and data productivity, and the quality of data traded in the economy. More precisely, we question the established view in the literature on industrial organization according to which technological imperatives are enough to experience divergent industrial dynamics on both the markets for data and AI blueprints. Although technical change behooves if any industry pattern is to emerge, the actual unfolding is not the outcome of a specific technological trajectory, but the result of the interplay between technology-related factors and the availability of data-complementary inputs such as labour and AI capital, the market size, preferences and public policies.
    Keywords: Artificial Intelligence, Data Markets, Industrial Dynamics, Agent-based Models.
    JEL: L10 L60 O33 O38
    Date: 2022
  10. By: Jérémy Vignal (CREGO - Centre de Recherche en Gestion des Organisations (EA 7317) - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE] - UB - Université de Bourgogne - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UBFC - Université Bourgogne Franche-Comté [COMUE]); Oiry Ewan (ESG UQAM - Département de management et de technologie - UQAM - Université du Québec à Montréal = University of Québec in Montréal)
    Abstract: This article analyzes the paradoxical behaviour of repatriates who are frustrated yet remain loyal to their organization, using Marcel Mauss's gift/countergift theory, which is a still-emerging in management science. Considering an expatriation experience as a "total social fact" that includes an individual's past, present and future and connects all their personal and professional dimensions, we set forth a renewed perspective on the period of repatriation and offer managerial recommendations that take into account the new mechanisms brought to light.
    Abstract: Este artículo analiza el paradójico comportamiento de los repatriados frustrados pero fieles a su organización, a partir de una teoría aún emergente en las Ciencias de Gestión, la del "don/contra-don", de Marcel Mauss. Considerando una experiencia de expatriación como un "hecho social total" que incluye el pasado, el presente y el futuro del individuo y articula el conjunto de las dimensiones personales y profesionales, proponemos una perspectiva renovada sobre el periodo de regreso de la expatriación y formulamos preconizaciones que toman en cuenta los nuevos mecanismos puestos en evidencia.
    Abstract: Cet article analyse le comportement paradoxal des expatriés de retour frustrés mais fidèles à leur organisation à partir d'une théorie encore émergente en sciences de gestion, celle du don/contre-don de Marcel Mauss. En considérant une expérience d'expatriation comme un « fait social total » qui inclut le passé, le présent et le futur de l'individu et articule l'ensemble des dimensions personnelles et professionnelles, nous proposons une perspective renouvelée sur la période du retour d'expatriation et formulons des préconisations managériales qui prennent en compte les mécanismes nouveaux mis en évidence.
    Keywords: Expatriation,Gift/countergift,Marcel Mauss,Career,International human resources management,Expatriación,Don/contra-don,Carrera profesional,Gestión Internacional de Recursos Humanos,Don/contre-don,Carrière,Gestion internationale des ressources humaines
    Date: 2021
  11. By: Zuazu-Bermejo, Izaskun
    Abstract: Automation transforms the combination of tasks performed by machines and humans, and reshapes existing labour markets by replacing jobs and creating new ones. The implications of these transformations are likely to differ by gender as women and men concentrate in different tasks and jobs. This article argues that a gender-biased technological change framework will advance our understanding of the differentiated role of robots in labour market outcomes of women and men. The article empirically analyses the impact of industrial robots in gender segregation and employment levels of women and men using an industry-level disaggregated panel dataset of 11 industries in 14 developed and developing countries during 1993-2015. Within fixed-effects and instrumental variables estimates suggest that robotization increases the share of women in manufacturing employment. However, this impact hinges upon female labour force participation. As female labour participation rate increases, robots are associated with a negative effect of robotization in the female share of manufacturing employment. Results also show that the impact of robotization varies at different levels of economic development. The estimates point to a reducing employment effects of robotization, although the effect for women is larger. The results are robust to a variety of various sensitivity checks.
    Keywords: gender-biased technological change,robotization,manufacturing employment,gender industrial segregation
    JEL: C23 F16 J16 F14
    Date: 2022
  12. By: Fujun Hou
    Abstract: In social choice theory, Sen's value restriction condition is a sufficiency condition restricted to individuals' ordinal preferences so as to obtain a transitive social preference under the majority decision rule. In this article, Sen's transitivity condition is described by use of inequality and equation. First, for a triple of alternatives, an individual's preference is represented by a preference map, whose entries are sets containing the ranking position or positions derived from the individual's preference over that triple of those alternatives. Second, by using the union operation of sets and the cardinality concept, Sen's transitivity condition is described by inequalities. Finally, by using the membership function of sets, Sen's transitivity condition is further described by equations.
    Date: 2022–04
  13. By: Yuliya Shymko (Audencia Business School); Sandrine Frémeaux (Audencia Business School)
    Abstract: This article examines why and how workers adhere and contribute to the perpetuation of the freedom fantasy induced by neoliberal ideology. We turn to Hannah Arendt's analysis of the human condition, which offers invaluable insights into the mechanisms that foster the erosion of human freedom in the workplace. Embracing an Arendtian lens, we demonstrate that individuals become entrapped in a libertarian fantasy-a condition enacted by the replacement of the freedom to act by the freedom to perform. The latter embodies the survivalist modus operandi of animal laborans (1) who renounces singularity, by focusing on the function of supervised labor, (2) who renounces solidarity, by focusing on individualist and competitive labor, and (3) who is deprived of spontaneity, by focusing on the measured productivity of labor. Therefore, we propose a new corporate governance perspective based on the rehabilitation of political action in organizations as the best way to preserve human capacity for singularity, solidarity, and spontaneity.
    Keywords: Freedom fantasy,Neoliberalism,Performing,Acting,Singularity,Solidarity,Spontaneity,Performing/Acting
    Date: 2021

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