nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2022‒10‒03
ten papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Structured Macroeconomics: a self-deploying modeling and simulation approach By Martin Jaraiz
  2. Does the Supply Network Shape the Firm Size Distribution? The Japanese case By Corrado DI GUILMI; FUJIWARA Yoshi
  3. Four Waves of Feminism: A Blessing for Global Humanity By Mohajan, Haradhan
  4. Anatomy of Green Specialisation: Evidence from EU Production Data, 1995-2015 By Bontadini, Filippo; Vona, Francesco
  5. Cuentas ambientales para la formulación e implementación de la política climática By Pizarro Gariazzo, Rodrigo
  6. Singular Secular Kuznets-like Period Realized Amid Industrial Transformation in US FDA Medical Devices: A Perspective on Growth from 1976 to 2020 By Iraj Daizadeh
  7. E pluribus, quaedam. Gross domestic product out of a dashboard of indicators By Guerini, Mattia; Vanni, Fabio; Napoletano, Mauro
  8. Industrial Policy for the 21st Century Lessons from the Past By Alessio Terzi; Aneil Singh; Monika Sherwood
  9. Wir werden überschwemmt von einer Springflut schlechter Ideen: Nachdenkliches (nicht nur) zum Ukraine-Krieg By Pies, Ingo
  10. A sustainability transition on the move? Evidence based on the disconnect from market fundamentals By Alessi, Lucia; Hirschbuhl, Dominik; Rossi, Alessandro

  1. By: Martin Jaraiz
    Abstract: This article presents an agent-based macroeconomics modeling framework that can read a Social Accounting Matrix (SAM) and build an economic system (active population, activity sectors acting as firms, a central bank, government, external sectors...) whose structure and activity replicate the economy at the time of the SAM snapshot. The main feature of the approach is the ability of the emergent macroeconomic system to adapt itself to subsequent changes, including the sustained dynamic evolution from initial models with simple behavioral rules towards models with increasingly complex behavior.
    Date: 2022–08
  2. By: Corrado DI GUILMI; FUJIWARA Yoshi
    Abstract: The paper presents an investigation on how the upward transmission of demand shocks in the Japanese supply network influences the growth rates of firms and, consequently, shapes their size distribution. Through an empirical analysis, analytical decomposition of the growth rates' volatility, and numerical simulations, we obtain several original results. We find that the Japanese supply network has a bow-tie structure in which firms located in the upstream layers display a larger volatility in their growth rates. As a result, the Gibrat's law breaks down for upstream firms, whereas downstream firms are more likely to be located in the power law tail of the size distribution. This pattern is determined by the amplification of demand shocks hitting downstream firms, and the magnitude of this amplification depends on the network structure and on the relative market power of downstream firms. Finally, we observe that in an almost perfectly hierarchical network, the power-law tail in firm size distribution disappears. The paper shows that aggregate demand shocks can affect the economy directly through the reduction in output for downstream firms and indirectly by shaping the firm size distribution.
    Date: 2022–08
  3. By: Mohajan, Haradhan
    Abstract: This paper tries to analyze the development of waves of feminism. In the human civilization, “Feminism” is considered as a mass movement, which has commenced by women of all groups to remove all forms of feminist oppressions by men that are prevailing in a patriarchal society. The world has already experienced four waves of feminism that act against women’s abuse and oppression. The first wave of feminism arises in the United States and Europe during the 19th and early 20th centuries, and concerns with the achieving voting right, equal opportunities, and other legal rights of women. Second wave of feminism has initiated by both white and non-white women of Western countries as well as in developing countries, starts in the 1960s and ends in the 1990s. It works for equal education and employment opportunities, maternity leave, birth control and abortion rights, etc.; and fights against domestic violence issues, marital rape issues, sexual harassment and rape, etc. Third wave of feminism presents a dynamic critique to the previous feminist political trends, and extents from the 1990s to 2000s. In this movement, women find themselves as strong and rebellious, and working women in various occupations are not subjected to a sexist patriarchy. Fourth wave feminism starts around 2012, which offers a new feminism that depends on online social media, such as Facebook, Twitter, Instagram, YouTube, etc. After the development of waves of feminism, various laws have been established in many countries of the world to support the participation of women in all activities of the society. This study takes attempts to discuss aspects of four waves of feminism elaborately.
    Keywords: Feminism, waves of movement, Black women, feminist oppressions, suffrage, social media
    JEL: B54 H0 I31 Z13
    Date: 2022–06–18
  4. By: Bontadini, Filippo; Vona, Francesco
    Abstract: We study green specialisation across EU countries and detailed 4-digit industrial sectors over the period of 1995-2015 by harmonizing product-level data (PRODCOM). We propose a new list of green goods that refines lists proposed by international organizations by excluding goods with double usage. Our analysis reveals important structural characteristics of green specialisation in the manufacturing sector. First, green production is highly concentrated, with 13 out of 119 4-digit industries, which are high-tech and account for nearly 95% of the total. Second, green and polluting productions do not occur in the same sectors, and countries specialise in either green or brown sectors. Third, our econometric analysis identifies three key drivers of green specialisation: (i) first-mover advantage and high persistence of green specialisation, (ii) complementarity with non-green capabilities and (iii) the degree of diversification of green capabilities. Importantly, once we control for these drivers, environmental policies are not anymore positively associated with green specialisation.
    Keywords: Production Economics, Resource /Energy Economics and Policy
    Date: 2022–06–17
  5. By: Pizarro Gariazzo, Rodrigo
    Abstract: Debido a su naturaleza global y al alcance de su impacto, el cambio climático plantea una serie de desafíos complejos e interconectados para la política pública. Por ello, los países necesitan disponer de una amplia variedad de datos e indicadores para comprender todos los factores vinculados a la gestión climática y las múltiples dimensiones que esta abarca: las presiones y fuerzas motrices que actúan sobre el cambio climático, los efectos directos e indirectos que este tiene en los sistemas humanos y ambientales y, sobre todo, la evaluación de las respuestas que ofrece la gestión pública. El Sistema de Contabilidad Ambiental y Económica (SCAE) conceptualiza el nexo entre medio ambiente y economía aplicando un enfoque sistémico para integrar información de distintos ámbitos. El objetivo de este documento es explicar cómo el SCAE puede usarse para apoyar la toma de decisiones relativas al cambio climático, teniendo en cuenta que solo un marco estadístico completo, que integre información de múltiples fuentes y sistemas, puede dar cuenta de la complejidad del cambio climático y permitir la generación de la información necesaria para adoptar decisiones adecuadas.
    Date: 2022–05–31
  6. By: Iraj Daizadeh
    Abstract: Introduction: Since inception, the US FDA has kept a robust record of regulated medical devices (MDs). Based on these data, can we gain insight into the innovation dynamics of the industry, including the potential for industrial transformation? Areas Covered: Using post-marketing notifications (PMNs) and approvals (PMAs) data, it is shown that from 1976 to 2020 the total composite (PMN+PMA) follows a single secular period: 20.5 years (applications peak-to-peak: 1992-2012; trough: 2002) and 26.5 years (registrations peak-to-peak: 1992-2019; trough: 2003), with a peak-to-trough relative percentage difference of 24% and 28%, respectively. Importantly, PMNs and PMAs independently present as an inverse structure. Expert Opinion: The evidence suggests: MD innovation is driven by a singular secular Kutnets-like cyclic phenomenon (independent of economic crises) derived from a fundamental shift from simple (PMNs) to complex (PMAs) MDs. Portentously, while the COVID-19 crisis may not affect the overriding dynamic, the anticipated yet significant (~25%) MD innovation drop (including PMN stagnation-to-decay) may be attenuated with attentive measures. Limitations of this approach and further thoughts complete this perspective.
    Date: 2022–07
  7. By: Guerini, Mattia; Vanni, Fabio; Napoletano, Mauro
    Abstract: Is aggregate income enough to summarize the well-being of a society? We address this longstanding question by exploiting a novel approach to study the relationship between gross domestic product (GDP) and a set of economic, social and environmental indicators for nine developed economies. By employing dimensionality reduction techniques, we quantify the share of variability stemming from a large set of different indicators that can be compressed into a univariate index. We also evaluate how well this variability can be explained if the univariate index is GDP. Our results indicate that univariate measures, and GDP among them, are doomed to fail in accounting for the variability of well-being indicators. Even if GDP would be the best linear univariate index, its quality in synthesizing information from indicators belonging to different domains is poor. Our approach provides additional support for policy makers interested in measuring the trade offs between income and other relevant socio-economic and ecological dimensions. Furthermore, it adds new quantitative evidence to the already vast literature criticizing GDP as the most prominent measure of well-being.
    Keywords: Environmental Economics and Policy, Labor and Human Capital, Political Economy, Production Economics
    Date: 2022–06–30
  8. By: Alessio Terzi; Aneil Singh; Monika Sherwood
    Abstract: The urgent need to accelerate on, and make a national success of, the green and digital transition are leading to wide-spread calls for greater government involvement in the economy, including by means of an active industrial policy. After reviewing several case studies, it becomes evident that, against conventional wisdom, nearly all countries have systematically engaged in some form of industrial policy, especially large economies like the USA and China, notwithstanding their very different economic models. The same is true for Europe, both at national level and through EU policies. After analysing these experiences, we draw six key policy lessons to inform future debates on how to shape a successful industrial policy in the years to come, and mitigate its risks, while acting in a context of souring geopolitical tensions. Nonetheless, industrial policy should not undermine the integrity of the Single Market, which has been, and should remain, a central element to ensure Europe’s prosperity going forward.
    JEL: E65 H50 H81 L52 N10
    Date: 2022–01
  9. By: Pies, Ingo
    Abstract: Dieses Interview stellt einige grundlegende Thesen zur Diskussion, die aus der Perspektive des ordonomischen Forschungsprogramms hergeleitet werden. Die vorgestellten Überlegungen betreffen zum einen den Ukraine-Krieg, zum anderen die Klimapolitik. Beide Politikbereiche, so das Hauptargument, sind anfällig für ein Diskursversagen, welches durch bestimmte Denkfehler ausgelöst wird, die hier mit den Stichworten 'Moralkonfusion' und 'dichotom(an)isches Tradeoff-Denken' markiert werden. Diese Denkfehler werden auch mit vielen weiteren Beispielen anschaulich illustriert.
    Keywords: Ordonomik,Wirtschaftsethik,Diskursversagen,Wirtschaftssanktionen,Klimapolitik,orthogonale Positionierung,ordonomics,business ethics,discourse failure,economic sanctions,climate policy,orthogonal positioning
    Date: 2022
  10. By: Alessi, Lucia (European Commission); Hirschbuhl, Dominik (European Commission); Rossi, Alessandro (European Commission)
    Abstract: In a context where European stock prices have been trending upwards, one of the main concerns is that stocks perceived as more sustainable from an environmental, social and governance (ESG) perspective could be particularly exposed to exuberance. To shed some light on the magnitude of the deviation of stock prices from fundamentals we apply a Markov-switching augmented version of the present-value model. Using monthly data on the European stock market from 2005 to 2022, our model suggests that at the beginning of 2022 the non-fundamental component was about one fourth of the total price. When looking at particular market segments, the model shows that green and ESG stocks behave broadly in line with the market. However, in recent years ESG stocks have shown a significant, though small, disconnect from the market. These finding suggest that investor preferences are shifting towards sustainability, while not posing immediate risks to market stability.
    Keywords: Bayesian inference, European stock market, green transition, Markov-switching, present-value model
    JEL: C11 C32 G12
    Date: 2022–07

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