nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2022‒12‒12
twenty-one papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Effective Rank and Dimensionality Reduction: from Complex Disaggregation Back to a Simple World By Tsoulfidis, Lefteris
  2. Consumer sovereignty in the digital society By Alexandre Chirat
  3. The Rarity of Reswitching Explained By Schefold, Bertram
  4. Understanding how systemic change happens -marketisation and de-marketisation By Adam Fforde
  5. The impact of moving expenses on social segregation: a simulation with RL and ABM By Xinyu Li
  6. Mindspongenvironment By Khuc, Quy Van
  7. Privatizations Spark Socialist Backlash: Evidence from East Germany's Transformation By Anselm Hager; Moritz Hennicke; Werner Krause; Lukas Mergele
  8. Methodological Individualism and the Foundations of the "Law and Economics" movement By Jean-Baptiste Fleury; Alain Marciano
  9. Fast and spurious: How executives capture governance structures to prevent cooperativization By Emilie Bourlier-Bargues; Jean-Pascal Gond; Bertrand Valiorgue
  10. Center-OutwardMultiple-Output Lorenz Curves and Gini Indices a measure transportation approach By Marc Hallin; Gilles Mordant
  11. On the Over-determination Problem in a Two Sector Neo-Kaleckian Model By Huang, Biao
  13. Acción climática con igualdad de género: hacia una recuperación transformadora para la sostenibilidad y la igualdad de género en América Latina y el Caribe By Miranda, Francisca; Castañeda, Itzá; Román, Pilar; Velázquez, Margarita
  14. Narrowing women’s time and income gaps: an assessment of the synergies between working time reduction and universal income schemes By André Cieplinski; Simone D’Alessandro; Chandni Dwarkasing; Pietro Guarnieri
  15. The effect of decentralization of government power on the character of public goods provision By Olga Marut; Jacek Lewkowicz
  16. Eurocentric Supremacist Dependency And Eurasia Concept By Tulun, Teoman Ertuğrul; Tulun, Mehmet Oğuzhan
  17. Global ideas of welfare and the narrowing scope of social policy By Julia Ngozi Chukwuma
  18. La brecha estructural de inclusión financiera en México: una perspectiva territorial y del impacto de las normas sociales de género By Romero, Indira; López, Jesús A.; Hess, Sara
  19. It Makes a Village: Allomaternal Care and Prosociality By Alessandra Cassar; Alejandrina Cristia; Pauline Grosjean; Sarah Walker
  20. Input-Output Analysis of the Ukraine War: A Tool for Assessing the Internal Territorial Impacts of the Conflict By Haddad, Eduardo; Araujo, Inacio; Rocha, Ademir; Sass, Karina
  21. Women’s autonomy and gender equality at the centre of climate action in Latin America and the Caribbean By Aguilar Revelo, Lorena

  1. By: Tsoulfidis, Lefteris (University of Macedonia)
    Abstract: In recent years there is a revival of political economy, and discussions are about the near linearities of price rate of profit trajectories. In this article, we argue that economy’s input-output data are of low effective dimensionality, meaning that there is overfitting in that it takes only a few eigenvalues and respected eigenvectors for an adequate representation of the movement of prices, and that some of the fundamental features of the economy may be tracked down with the use of a low dimensional system.
    Keywords: Labor theory of value; Randomness hypothesis; Vertical integration; Effective rank; Eigendecomposition
    JEL: B24 B51 C67 D46 D57 E11 E32
    Date: 2022–07–27
  2. By: Alexandre Chirat
    Abstract: Do uses of digital technologies in the framework of early 21st century capitalism promote or reduce the expression of consumer sovereignty ? This paper addresses this question through the lens of John Kenneth Galbraith’s theory of consumption. First, I recall the main stakes of his theory. Second, I highlight the main differences between traditional advertising and online behavioral advertising. Third, I explain how online behavioral advertising strengthens the “dependence effect” and “revised sequence” depicted by Galbraith within the context of the industrial society. Fourth, I discuss some normative challenges raised by digital platform corporations to individual sovereignty. Lastly, I argue that platform capitalism appear as a mature form of the “new industrial state”, one important difference being that digital platform corporations, rather than traditional industrial corporations, largely preside over the allocation of resources in the economy.
    Keywords: Consumer sovereignty – online behavioral advertising - digital economics – platform capitalism
    JEL: B2 P1 M3 L2
    Date: 2022
  3. By: Schefold, Bertram (Johann Wolfgang Goethe-Universitat)
    Abstract: Most studies of the frequency of reswitching and reverse capital deepening were based on two or three sector models and came to the conclusion that these phenomena are rare. Here it is shown that the probability of isolated reswitching tends to zero in large economic systems. The assumptions of the new mathematical theorems proposed are supported by an empirical enquiry. The randomness of input-output systems helps to explain the result. If the number of switch-points tends to infinity in large systems, it is not certain that even one represents a case of reverse capital deepening. The focus of the critique of capital will have to change.
    Keywords: capital theory; reswitching; reverse capital deepening; Sraffian economics; input-output analysis
    JEL: B24 C62 C67 D57
    Date: 2022–08–04
  4. By: Adam Fforde (University of Melbourne)
    Abstract: This paper discusses possible conceptual foundations of formal models of endogenous change processes, understood here as movements between market and non-market transactions at the level of the national economy. It links but does not merge movements of resources with shifts in the pattern of transaction types. In focussing on transaction types, it deploys insights from Commons, Coase, and Godelier, to discuss how framing transaction types as the fundamental 'thing to be explained' points to the value of choices about how activity may best be organised, which requires a general concept, which can be found in Commons' 'going concern', applicable to transactions focussing on markets or not. It entails the possibility of institutional change and shifts in the location of economic resources without formal policy change. It suggests that the main requirement for such change processes are dualistic incentive patterns that operate upon institutional choice and/or development, which derive at root from experienced contrasts between the realities of existing and normatively privileged systems, and others, normatively initially deemed inferior, that offer key actors greater economic efficiency. Moves of institutional activity from one to the other are thus conceptually processes of endogenous systemic change. System in this sense is thus viewed as a coexistence of alternatives. The motivation comes directly from consideration of two very different historical moments: endogenously driven shifts 'from plan to market' in countries attempting central planning, and contemporary pressures in market economies from areas of the economy, such as services, where joint production and/or own consumption imply irremediable market failure and so non-market based economic institutions offer greater economic efficiency and may therefore attract both resources (factors of production) and investment in development of suitable transactions and their organisation.
    Keywords: transition,modelling,structural change,transaction type,Commons' Going Concerns,market failure
    Date: 2022
  5. By: Xinyu Li
    Abstract: Over the past decades, breakthroughs such as Reinforcement Learning (RL) and Agent-based modeling (ABM) have made simulations of economic models feasible. Recently, there has been increasing interest in applying ABM to study the impact of residential preferences on neighborhood segregation in the Schelling Segregation Model. In this paper, RL is combined with ABM to simulate a modified Schelling Segregation model, which incorporates moving expenses as an input parameter. In particular, deep Q network (DQN) is adopted as RL agents' learning algorithm to simulate the behaviors of households and their preferences. This paper studies the impact of moving expenses on the overall segregation pattern and its role in social integration. A more comprehensive simulation of the segregation model is built for policymakers to forecast the potential consequences of their policies.
    Date: 2022–11
  6. By: Khuc, Quy Van
    Abstract: Mindspongenviron is a branch of mindspongeconomics, a new social science theory using information as an input. Based on the environmental values and decision making systems, mindspongenviron is able to nurture and build the ecosurplus culture, high value culture, which is a key for tackling the environmental problems that humans face today.
    Date: 2022–09–12
  7. By: Anselm Hager; Moritz Hennicke; Werner Krause; Lukas Mergele
    Abstract: The fall of the Berlin Wall in 1989 brought the end of socialism, yet pro-socialist sentiment regained momentum surprisingly quickly across Eastern Europe. Why did voters move back to an ideology that was associated with unfree elections and lackluster economic performance? This paper points to the rushed privatization of East European economies as one plausible driver of the revival of socialist voting. Using micro-level data from East Germany, we show that firm privatizations led to a marked resurgence of the former Socialist Unity Party. We argue that this effect is likely due to perceived inequity: Socialist voting thrived whenever firms were sold to Western elites, which East Germans took as a sign that capitalism was not meritocratic.
    Keywords: privatization, socialist backlash, structural change, democratization
    Date: 2022
  8. By: Jean-Baptiste Fleury (HDEA - Histoire et Dynamique des Espaces Anglophones - SU - Sorbonne Université); Alain Marciano (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier)
    Abstract: The purpose of this paper is to discuss the methodological foundations of the law and economics movement, with a special emphasis on the role and place of individuals within their framework. Reviewing the works of the main contributors-the founders, indeed-to the law and economics movement, we show that all of them considered that the analysis of legal phenomena had to start from individual behavior, even as these very behaviors were embedded, to various degrees, though not determined, in legal and institutional frameworks. The all use social, systemic, institutional and anti-reductionist individualistic methodology. This is not inconsistent or contradictory. Indeed, methodological individualism does not imply to conceive human beings as (isolated) atoms living as if they were suspended in a social vacuum.
    Keywords: Law and economics,economic analysis of law,methodological individualism
    Date: 2022
  9. By: Emilie Bourlier-Bargues (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020]); Jean-Pascal Gond; Bertrand Valiorgue
    Abstract: Although workers' cooperatives are regarded as credible alternatives to private companies to reform capitalism, scholars have only started to document the struggles inherent to cooperativizationthe process by which private companies transition to cooperative forms. This paper analyses how executives prevent actual cooperativization in practice by shaping and capturing governance structures. Relying on 35 interviews, observations, and focus groups of two private firms having adopted cooperative forms, we document a set of governance practices used by executives to prevent cooperativization: general assembly disempowerment, board neutralisation, and executive committee entrenchment. We then explain how these practices interact to form a spiral of democratic governance prevention that generate spurious workers cooperatives. These results contribute to cooperative studies by explaining the role of executives and governance in preventing cooperativization. Our study
    Date: 2022
  10. By: Marc Hallin; Gilles Mordant
    Abstract: Based on measure transportation ideas and the related concepts of centeroutwardquantile functions,we propose multiple-output center-outward generalizationsof the traditional univariate concepts of Lorenz and concentration functions,and the related Gini and Kakwani coefficients. These new concepts have anatural interpretation, either in terms of contributions of central (“middle-class”)regions to the expectation of some variable of interest, or in terms of the physicalnotions of work and energy, which sheds new light on the nature of economicand social inequalities. Importantly, the proposed concepts pave the way to statisticallysound definitions, based on multiple variables, of quantiles and quantileregions, and the concept of “middle class,” of high relevance in various socioeconomiccontexts.
    Keywords: Center-outward quantiles; Measure transportation; Concentration indices; Inequality measurement; Definition of “middle class”
    Date: 2022–11
  11. By: Huang, Biao (Renmin University of China)
    Abstract: In this paper, we aim to solve the over-determination problem in two-sector neo-Kaleckian models raised by Park (1995) against Dutt (1990). After summarising the over-determination problem and existing solutions, we argue that the over-determination problem is not caused by the incompatibility of sectors’ investment functions and equalised rates of profit, but rather the incompatibility of profit rate equalisation and the arbi-trarily given mark-up rates of different sectors. We propose to solve the problem by introducing an endogenous variable, the relative mark-up ratio, which makes the model perfectly determined and more logically consistent. We also discuss the adjustment mechanism from the short-run to the long-run equilibrium.
    Keywords: Two-sector neo-Kaleckian model; equalised profit rate; mark- up pricing; free competition
    JEL: B51 E11 O41
    Date: 2022–07–07
  12. By: prastyaningsih, ika
    Abstract: The aim of research to explain the concept of supervision based on Islamic and its relevance of supervision to the role of Syariah Supervisory Board on the implementation of syariah compliance that accordance with the provisions of DSN-MUI and BI regulations. In the context of banking, Syariah compliance is a crucial issue, because, in many studies, people still have perceived that Islamic banks as the same as conventional banks that used Riba’ system. In another hand, Syariah Supervisory Board holds a fundamental role for Supervising the Implementation of Syaria Compliance in syariah banking operations also as a differentiator between syaria banking and conventional one. Supervising of Syariah Supervisory Board plays an important role in ensuring the quality of it towards syariah principles. This research used a Descriptive qualitative method. The results of this research explained that the role of Syariah Supervisory Board supervision in the implementation of syariah compliance has relevant by the concept of supervision in Islam, also the principles and methods of supervising that run are relevant by the Islamic rule. As well as the criteria for appointment of members of Syariah Supervisory Board meet the criteria of muhtasib in Islamic supervision.
    Date: 2022–07–24
  13. By: Miranda, Francisca; Castañeda, Itzá; Román, Pilar; Velázquez, Margarita
    Abstract: Este documento es resultado del Encuentro Regional sobre Cambio Climático e Igualdad de Género, que se realizó de manera virtual en septiembre de 2021, organizado por el Gobierno de Chile —como país que ejerció la Presidencia del 25º período de sesiones de la Conferencia de las Partes en la Convención Marco de las Naciones Unidas sobre el Cambio Climático (CP 25)—, a través de sus Ministerios de Medio Ambiente, de Relaciones Exteriores y de la Mujer y la Equidad de Género, con el apoyo de la Unión Europea, a través de sus programas Euroclima+ y EUROsociAL+, el apoyo técnico de la Comisión Económica para América Latina y el Caribe (CEPAL) y la colaboración del sistema de las Naciones Unidas en Chile. En el Encuentro se presentaron y analizaron experiencias, buenas prácticas, desafíos y oportunidades para integrar la igualdad de género en la acción climática en América Latina y el Caribe, y la hoja de ruta del plan de acción sobre el género de la Convención Marco de las Naciones Unidas sobre el Cambio Climático. El documento recoge los avances de la región en materia de género y cambio climático, con el objetivo de servir como instrumento conectado al proceso de negociación en el marco del Acuerdo de París.
    Date: 2022–11–07
  14. By: André Cieplinski (Department of Economics and Management, University of Pisa); Simone D’Alessandro (Department of Economics and Management, University of Pisa); Chandni Dwarkasing (Department of Economics, SOAS University of London); Pietro Guarnieri (Department of Economics and Management, University of Pisa)
    Abstract: The COVID-19 crisis re-opened a discussion on the gendered nature of time-poverty and income inequality. We compare two policy combinations that assess the synergies between working time reduction and two universal income schemes: basic income and care income programmes. While the former provides every individual with an equal monetary benefit, the latter ties monetary benefits to the amount of unpaid and care work performed by individuals. We assess the impact of these policy combinations applying Eurogreen, a macrosimulation model tailored to Italy. Results suggest that while working time reduction directly improves the distribution of unpaid work and alleviates time-poverty, its impact on income inequality is limited. By contrast, the universal income schemes promote a similar and significant reduction of income inequality but differ in terms of gender equality outcomes. When it comes to improvements in women’s employment, labour force participation and real wages, working time reduction in combination with basic income outperforms care income. Meanwhile, care income outperforms basic income in terms of women’s income gap. Finally, regarding time-use, the adverse labour market effects of a care income on women’s participation rates compromises the redistribution of unpaid work from women to men.
    Keywords: inequality; time-use, unpaid work, care work, working time reduction, basic income
    JEL: C63 B54 J22 E24
    Date: 2022–04
  15. By: Olga Marut (University of Warsaw, Faculty of Economic Sciences); Jacek Lewkowicz (University of Warsaw, Faculty of Economic Sciences)
    Abstract: What are the institutional drivers of public goods provision? What do we know about the impact of concentration of power on their distribution? The current literature proves the relevance of the allocation of public goods, mostly in the context of economic and social progress. A growing number of empirical studies is focused primarily on public policies that may matter in this context. However, we still know relatively little about institutional factors that may affect public goods provision. In this article we apply econometric and machine learning tools to verify the importance of governmental power decentralization for distribution of public goods. The obtained output implies that indeed concentration of power impacts public goods provision and the results are robust across various quantitative methods. Our conclusions may be of practical relevance also for policymakers.
    Keywords: public goods, power decentralization, politics, institutional economics, political economy
    JEL: B52 H41 H72 P48
    Date: 2022
  16. By: Tulun, Teoman Ertuğrul; Tulun, Mehmet Oğuzhan
    Abstract: Eurocentric thought essentially reflects the tendency to interpret the world in terms of European or Anglo-American values and experiences and takes these values as a triangulation point for reading and analyzing worldwide developments. Rather than producing value-free and universalist theories of inter-state relations, this approach furnishes self-oriented analyses that fanatically promote western liberal and currently neo-liberal values, priorities, and interests as the subject of an ideal normative referent in world politics. It primarily prefers western over non-western, perceives the non-western as the "other," and often stigmatizes it. Contrary to this exclusionary approach, AVİM argues that Turkey must not position itself as a purely Western or Eastern, or European or Asian country. On the contrary, Turkey is and must be all of these simultaneously because such a stance reflects Turkey's true and rich nature. In such an understanding, we keep our distance from the Eurocentric supremacist dependency and follow a path that prioritizes Turkey's objective interests.
    Date: 2022–09–12
  17. By: Julia Ngozi Chukwuma (School of Social Sciences and Global Studies, Faculty of Arts and Social Sciences, The Open University)
    Abstract: This paper documents contemporary trends within social policymaking. I illustrate how the scope of social policy has narrowed over time, with social assistance programmes nowadays being favoured over more comprehensive forms of social policy. I argue that, overall, social service delivery has been subject to privatisation with the ascendency of neo-liberalism. I moreover provide an overview of the relevant literature discussing the evolution of welfare states (and their retrenchment). With an initial focus on the European context, I survey theories according to which welfare states emerged as a consequence of industrialism, were the outcome of class struggles or a result of historical institutionalism and/or power relations. I then move on to review concepts and theories that account for social policy trajectories in countries of the Global South, and Africa in particular. Many of Africa’s post-colonial states sought to promote social policy as a way of facilitating social cohesion and nation-building and in order to create inclusive states. Still, the rise of neo-liberalism significantly shaped and influenced their particular practices. Finally, I introduce Ben Fine’s Systems of Provision (SoP) approach as the theoretical framework, which stands out amongst the various theories seeking to explain social policy trajectories. A crucial benefit of the SoP approach is that it encourages and facilitates a context- and system-specific analysis, helping to understand how contextual factors and structures determine consumption outcomes in a specific setting. Moreover, it takes account of both social dynamics and constructs as well as global trends, such as globalisation and neo-liberalisation, which impact processes and narratives as well as the meaning that participants within a system of provision attach to the consumption of a specific good and/or service.
    Keywords: social policy; social service delivery; neoliberalism; privatisation; Africa
    JEL: I38 H50 P16
    Date: 2022–09
  18. By: Romero, Indira; López, Jesús A.; Hess, Sara
    Abstract: En las últimas décadas se han registrado avances en todo el mundo en materia de inclusión financiera, pero continúa existiendo una brecha de género. En este estudio, se analiza el menor nivel de inclusión financiera de la mujer en México como una brecha estructural, dada su persistencia y profundidad. Además, se ahonda en el análisis de las brechas entre mujeres y hombres, y se comparan las experiencias de las mujeres que viven en los medios rurales y de las que habitan en zonas urbanas, incorporando el enfoque de las normas de género. Para ello, se lleva a cabo un análisis estadístico y econométrico, así como un trabajo de campo. Los resultados de la primera etapa apuntan a la existencia de ciertas características —como el género, el estado civil, la edad y los ingresos— que se relacionan positivamente con un indicador de inclusión financiera elaborado para este fin. Los resultados de la segunda etapa muestran que la mujer tiene una menor participación en el mercado laboral, así como una mayor carga en las tareas de cuidado del hogar, y que el estar casada limita su realización de actividades fuera del hogar.
    Date: 2022–10–14
  19. By: Alessandra Cassar (University of San Francisco, Chapman University and CEGA); Alejandrina Cristia (Laboratoire de Sciences Cognitives et Psycholinguistique, ENS, EHESS, CNRS, PSL University); Pauline Grosjean (Department of Economics, UNSW and CEPR); Sarah Walker (Department of Economics, UNSW)
    Abstract: A recent hypothesis suggests that an impetus for human cooperation could have emerged from the needs of mothers to elicit and sustain help from others, i.e. allomaternal care, for the purpose of bringing offspring to maturity. We design a novel economic experiment to elucidate the relationship between allomaternal care and cooperative behavior among a random sample of 820 adults and 200 children in the Solomon Islands. Our results show that allomaternal care, especially by non-kin, nurtures adult reciprocity and altruism, and impersonal prosociality among mothers. We also document socio-cognitive benefits to children from child care by non-kin, based on daylong vocalizations analyzed using a multilingually-trained neural network. Further analysis utilizing cross-cultural ethnographic data shows a positive relationship between allomaternal care and societal orientation toward trust. Altogether, our findings suggest an important role for allomaternal care - especially by non-kin - in supporting societal cooperation. Classification JEL: I15, O15, Z13
    Keywords: Allomaternal care, Altruism, Child vocalizations, Dictator game, Reciprocity
    Date: 2022–11
  20. By: Haddad, Eduardo (Departamento de Economia, Universidade de São Paulo); Araujo, Inacio (Departamento de Economia, Universidade de São Paulo); Rocha, Ademir (Departamento de Economia, Universidade de São Paulo); Sass, Karina (Departamento de Economia, Universidade de São Paulo)
    Abstract: The Russian invasion of Ukraine on February 24, 2022, scaled up the ongoing conflict in Donbas beyond its regional borders, hindering and halting different aspects of economic life. Considering the internal geography of Ukraine’s economic structure, the damages to physical infrastructure and supply chain disruptions are likely to propagate to other parts of the country through an intricate plot of production and income linkages. From a disaggregated analysis of multiregional and multisectoral linkages, this paper offers a systematic, integrated account of the structural linkages that allows modeling spillovers from one Ukrainian region to another. This approach breaks new ground by highlighting the internal economic effects of the conflict in Ukraine. We develop an interregional input-output system for Ukraine, providing the numerical basis for developing analytical frameworks to support knowledge building in the recovery process of distressed territories during the post-war period. We offer this database to the international scientific community to support modeling projects focusing on structural features of the Ukrainian economy. As shown in our illustrative exercises, understanding the structure of intersectoral and interregional linkages is critical to understanding better the propagation of exogenous shocks in the economy.
    Keywords: Input-output model; Europe; National Security; War
    JEL: H56 O52 R15
    Date: 2022–10–05
  21. By: Aguilar Revelo, Lorena
    Abstract: This document was prepared —within the framework of the sixty-second meeting of the Presiding Officers of the Regional Conference on Women in Latin America and the Caribbean— as part of the preparations for the sixty-sixth session of the Commission on the Status of Women, whose priority theme was “Achieving gender equality and the empowerment of all women and girls in the context of climate change, environmental and disaster risk reduction policies and programmes”. The purpose of this document and the recommendations it contains is not only to advance towards the achievement of gender equality and sustainable development in the region, but also to offer innovative and transformative contributions from Latin America and the Caribbean, placing gender equality and women’s autonomy at the centre of the process.
    Date: 2022–10–28

This nep-hme issue is ©2022 by Carlo D’Ippoliti. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.