nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2023‒01‒09
24 papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Discusiones en torno al capitalismo argentino: debate económico y aporte de Karl Polanyi para nuestros días By Ignacio Andrés Rossi
  2. Varieties of demand and growth regimes: Post-Keynesian foundations By Hein, Eckhard
  3. Nothing new under the sun: The so-called "growth model perspective" By Amable, Bruno
  4. House price cycles, housing systems, and growth models By Kohler, Karsten; Tippet, Ben; Stockhammer, Engelbert
  5. Phallocentric discourse of the modern era and restoration of the human race in Luce Irigaray By Tadagbé Adelphe Adambadji
  6. Demand and growth regimes of the BRICs countries By Campana, Juan Manuel; Emboava Vaz, João; Hein, Eckhard; Jungmann, Benjamin
  7. Families and Women in Alfred Marshall’s Analysis of Well-being and Progress. By Virginie Gouverneur
  8. Development of Grounded Theory in Social Sciences: A Qualitative Approach By Mohajan, Devajit; Mohajan, Haradhan
  9. A review of macroeconomic models for the WEFE nexus assessment By Chiara Castelli; Marta Castellini; Emanuele Ciola; Camilla Gusperti; Ilenia Gaia Romani; Sergio Vergalli
  10. Das deutsche Wachstumsmodell, 1991-2019 By Höpner, Martin; Baccaro, Lucio
  11. De l’Ecole Polytechnique et l’Ecole de la Régulation. Michel Aglietta, 1959 – 1979. By Yamina Tadjeddine
  12. EU-induced Financialisation and Its Impact on the Greek Wage Share, 1999-2021 By Gouzoulis, Giorgos; Iliopoulos, Panagiotis; Galanis, Giorgos
  13. Desregulación, endeudamiento y fragilidad financiera externa: un enfoque minskiano para la crisis argentina 2018-2019 By Nicolás Zeolla; Florencia Médici
  14. Exploration of Coding in Qualitative Data Analysis: Grounded Theory Perspective By Mohajan, Devajit; Mohajan, Haradhan
  15. Débats autour de la désindustrialisation française By Hubert Bonin
  16. Hereditarianism, Eugenics and American Social Science in the Interwar Years: Meet the Carverians By Fiorito, Luca; Erasmo, Valentina
  17. Elements of Intellectuality in Decision Making By Chatterjee, Sidharta
  18. The Economists and The Combination Laws: A Reappraisal By Hupfel, Simon
  19. Origen y consolidación de la dolarización del mercado inmobiliario en Argentina By Pablo Nemina; Alejandro Gaggero
  20. Social Structure, Economic Exclusion, and Fragility? Pertinent Theories and Empirics from Africa By Mulugeta Woldegiorgis, Mesfin
  21. FDI-led growth models: Sraffian supermultiplier models of export platforms and tax havens By Woodgate, Ryan
  22. The Knowledge Complexity of the European Metropolitan Areas: Selecting and Clustering Their Hidden Features By Carlo Bottai; Martina Iori
  23. Secular Stagnation: A Classical-Marxian View By Manuel David Cruz; Daniele Tavani
  24. Formation of trade networks by economies of scale and product differentiation By Chengyuan Han; Malte Schr\"oder; Dirk Witthaut; Philipp C. B\"ottcher

  1. By: Ignacio Andrés Rossi
    Abstract: Resumen: En este artículo, se propone abordar las discusiones actuales en torno al capitalismo nacional y la economía argentina a partir de un conjunto de ideas canónicas de la obra de Karl Polanyi. Argentina —que hace varias décadas se encuentra atravesando recurrentes crisis en su modelo económico— despierta una pluralidad de voces de cientistas sociales y periodistas especializados que debaten sobre los problemas, limitaciones y proyecciones de la economía y el capitalismo nacional. Para ello, se relevaron estas discusiones, en su mayor medida, a partir de la prensa especializada y la bibliografía de reciente publicación, prestando atención a las propuestas teóricas, interpretativas e ideológicas que permitieron generar relaciones con la teoría de Polanyi. Se concluye en que las ideas de este último en torno al funcionamiento del capitalismo, los mercados, el Estado y la dinámica social contemporánea aportan un bagaje conceptual significativo para enmarcar las discusiones actuales entre cientistas sociales sobre la economía argentina. Abstract: The article proposes to address the current discussions about national capitalism and the Argentine economy from a set of canonical ideas of the work of Karl Polanyi. Argentina, which for several decades has been going through recurring crises in its economic model, awakens a plurality of voices from social scientists and specialized journalists who debate the problems, limitations and projections of national capitalism. For this, we have surveyed these discussions, to a greater extent, from the specialized press and the recently published bibliography, paying attention to the theoretical, interpretative and ideological proposals that allow us to generate relationships with Polanyi's theory. It was concluded that the latter's ideas about the functioning of capitalism, markets, the State and contemporary social dynamics provide significant conceptual background to frame the current discussions among social scientists about the Argentine economy.
    Keywords: Polanyi, capitalismo, Argentina, Estado, estabilidad, desarrollo; capitalism, State, Argentina, stability, development
    JEL: A10 A11 B15 B22
    Date: 2022–02–01
  2. By: Hein, Eckhard
    Abstract: We review post-Keynesian contributions to demand and growth regime analysis. First, we distinguish the Kalecki-Steindl approach and the Sraffian supermultiplier approach as relevant theoretical foundations for demand and growth regime research, with investment-driven and distribution-led growth in the focus of the former and autonomous demand-led growth in the latter. Based on this, we review different ways of analysing the co-existence of demand and growth regimes in the current period of neoliberal and finance-dominated capitalism. We distinguish, first, a basic national income and financial accounting decomposition approach, second, a Sraffian supermultiplier inspired growth decomposition approach, and, third, several lenses looking at growth drivers. We argue that these three levels of analysis are, in principle, not mutually exclusive nor even contradictory, but that they rather complement each other. We conclude that, in particular the PK analysis of growth drivers provides several systematic links with comparative and international political economy approaches, when it comes to the introduction of the political economy dimension (social blocs, growth coalitions, changes in institutions favouring certain type of re-distribution and economic policies, etc.), while the national income and financial accounting, as well as the Sraffian supermultiplier growth accounting decomposition approaches provide the consistent macroeconomic foundations for such syntheses.
    Keywords: Demand and growth regimes,post-Keynesian economics,Kalecki-Steindl models,Sraffian supermultiplier models,wage-/profit-led regimes,finance-led/finance-burdened regimes,debt-led private demand boom regimes,export-led regimes,domestic demand-led regimes
    JEL: B59 E02 E11 E12 E65 P51
    Date: 2022
  3. By: Amable, Bruno
    Abstract: Recent contributions in comparative political economy have made much of the 'growth model perspective', presenting it as a way to 'rethink political economy'. This paper argues that the origins of the growth model approach can be found in contributions by Michel Freyssenet made in the framework of GERPISA (Groupe d'étude et de recherche permanent sur l'industrie et les salariés de l'automobile) in the 1990s/2000. By presenting the contributions and limitations of Freyssenet's approach, it is possible to establish how contemporary growth model approaches fail to establish a solid link between political economy and heterodox macroeconomics. It appears that an approach that starts from the differentiation of interests of social groups and takes into account the autonomy of politics has more potential to achieve this task, allowing to recover the inspiration of Kalecki's 1943 article on the political limits to economic policy.
    Keywords: French Theory of Régulation,growth models,accumulation regimes,political economy
    JEL: B52 P10
    Date: 2022
  4. By: Kohler, Karsten; Tippet, Ben; Stockhammer, Engelbert
    Abstract: The paper provides a framework for theorising the role of house price cycles in national growth models. We synthesise Minskyan approaches with comparative political economy (CPE) by arguing that institutions influence the extent to which countries experience what we call 'house price-driven growth models'. First, we argue that house price dynamics have been undertheorized in existing growth models analysis. Finance-led models can be properly understood only against the background of rising house prices that stimulate consumption through wealth effects and investment through construction. Second, we identify behavioural and Minskyan theories of housing cycles as suitable frameworks to theorise the impact of housing on growth. However, this literature does not provide an analysis of cross-country differences in housing cycles. Third, drawing on the CPE literature on housing systems, we argue that institutions such as homeownership rates and mortgage-credit encouraging institutions can explain differences in the intensity of housing cycles. We provide preliminary empirical support for this framework from a cross-country analysis. Our results show strong cross-country heterogeneity in the intensity of housing cycles. Countries with more intense house price cycles also tend to exhibit more volatile business and debt cycles. Homeownership rates and mortgage-credit encouraging institutions are positively correlated with the volatility of house price cycles.
    Keywords: Post-Keynesian Economics,Comparative Political Economy,growth models,housing,house price cycles
    JEL: E32 O57 R21 R31 B52
    Date: 2022
  5. By: Tadagbé Adelphe Adambadji (LEGS - Laboratoire d'Etudes de Genre et de Sexualité - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The phallocentric Discourse, in the modern era, has come up against the restoration of the human race. This restoration was also the workhorse of Luce Irigaray. In modern times, the essential qualities of women restored are: freedom, science and authority. Gabrielle Suchon is one of the emblematic figures who worked on this restoration. Following her, François Poullain de La Barre and Emmanuel Kant worked to restore women's legal status. A critical look at Luce Irigaray's exercises and the analysis of his thought on citizenship respectful of differences directs us towards the positive impacts they have had on literature, social behaviors, philosophical thought: these exercises are an enhancement of dialogue.
    Abstract: Le Discours phallocentrique, à l'époque moderne, s'est heurté à la restauration du genre humain. Cette restauration a été aussi le cheval de bataille de Luce Irigaray. A l'époque moderne, les qualités essentielles de la femme restaurées sont: la liberté, la science et l'autorité. Gabrielle Suchon est l'une des figures emblématiques qui a travaillé à cette restauration. A sa suite, François Poullain de La Barre et Emmanuel Kant ont œuvré pour resituer à la femme son statut juridique. Un regard critique sur les exercices de Luce Irigaray et l'analyse de sa pensée sur la citoyenneté respectueuse des différences nous orientent vers les impacts positifs qu'ils ont eu sur la littérature, les comportements sociaux, la pensée philosophique: ces exercices sont une valorisation du dialogue.
    Keywords: Gender, restoration, status, citizenship, dialogue, Genre, restauration, statut, citoyenneté
    Date: 2022–11–26
  6. By: Campana, Juan Manuel; Emboava Vaz, João; Hein, Eckhard; Jungmann, Benjamin
    Abstract: We contribute to the recent debate in post-Keynesian economics (PKE), comparative political economy (CPE) and international political economy (IPE) on growth regimes. The paper presents an analysis of changes in demand-led growth regimes in the BRICs countries, Brazil, Russia, India, and China, after the Global Financial Crisis and the Great Recession 2007-09. It discusses and applies two approaches, a first one based on national income and financial accounting decomposition and a second one, based on the Sraffian Supermultiplier (SSM) growth model, distinguishing the dynamics of autonomous expenditure growth from those of the induced components of aggregate demand. It is argued that the SSM approach provides the bridge between the traditional approach based on national income and financial accounting decomposition and the analysis of growth drivers, both in PKE as well as in CPE and IPE. This is illustrated by pointing out some changes in the underlying political economy and economic policy growth drivers in each of the countries.
    Keywords: Demand and growth regimes,growth decomposition,autonomous demand-led growth
    JEL: E02 E11 E12 P16 P51
    Date: 2022
  7. By: Virginie Gouverneur
    Abstract: Some commentators state that Marshall conceptualizes the well-being primarily in terms of the consumer’s surpluses, whose interdependence with the moral character rests on the ability of markets to produce their effects on character spontaneously. The purpose of the article is to show that evolutionary faith is not really enough to remove the tension between the economic and moral dimensions of Marshall’s definition of the well-being. Marshall understands that progress would not happen without assigning a peculiar role to families and women in cultivating family affections as an essential means to secure the link between these two dimensions. To prove this point, the article examines several economic texts written before Marshall’s major economic book, Principles of Economics, the first edition of which appeared in 1890. These writings have received little consideration in the existing literature about Marshall’s treatment of the role of women in a capitalist economy. Yet, they prefigure and allow to better understanding the theory expounded in Principles.
    Keywords: Alfred Marshall, family environment, women’s role, well-being, progress.
    JEL: B13 I31
    Date: 2022
  8. By: Mohajan, Devajit; Mohajan, Haradhan
    Abstract: Grounded theory (GT) is a general research method that provides the efficient generation of theory from data, which are collected by a strong, sound, and fair research method. It is an inductive methodology that systematically collects and analyzes data for developing theory on human behavior in social welfare perspectives. It is considered as one of the most popular qualitative research methodologies in the world. It is originally developed by two American sociologists Barney Galland Glaser and Anselm Leonard Strauss in 1967 through the publication of their revolutionary book “The Discovery of Grounded Theory”. It emphasizes the importance of developing an understanding of human behavior through a process of discovery. Grounded theory has originated in sociology, and at present it has become a key methodological setting in a wide range of other disciplines, such as in nursing, physiotherapy, healthcare, education, anthropology, psychology, management, information systems, software engineering, etc. It is useful both for expert and novice researchers to generate new explanatory theories. This article tries to discuss grounded theory methodology through the discussion of its origin and development, basic principles, characteristics, advantages and disadvantages, and its usefulness in social science researches for qualitative analysis.
    Keywords: Grounded theory, qualitative research, Glaser, Strauss
    JEL: A13 A14 I24 I31 J16
    Date: 2022–10–05
  9. By: Chiara Castelli (Fondazione Eni Enrico Mattei and Wiener Institut fur Internationale Wirtschaftsvergleiche); Marta Castellini (Fondazione Eni Enrico Mattei and Department of Civil, Environmental and Architectural Engineering, University of Padua); Emanuele Ciola (Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia); Camilla Gusperti (Fondazione Eni Enrico Mattei); Ilenia Gaia Romani (Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia); Sergio Vergalli (Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia)
    Abstract: The Water, Energy, Food and Ecosystems (WEFE) nexus refers to the system of complex and highly non-linear interconnections between these four elements. It now represents the basic framework to assess and design policies characterized by an holistic environmental end economical perspective. In this work, we provide a systematic review of the macroeconomic models investigating its components as well as combinations of them and their interlinkages with the economic system. We focus on four different types of macroeconomic models: Computable General Equilibrium (CGE) models, Integrated Assessment Models (IAMs), Agent-based Models (ABMs), and Dynamic Stochastic General Equilibrium (DSGE) models. On the basis of our review, we find that the structure of IAMs is currently the most used to represent the nexus complexity, while DSGE models focus only on single components but appear to be better suited to account for the randomization of exogenous shocks. CGE models and ABMs could be more effective on the side of the policy perspective. Indeed, the former can account for interlinkages across sectors and countries, while the latter can define theoretical frameworks that better approximate reality.
    Keywords: Agent-based, Computable general equilibrium, Dynamic stochastic general equilibrium, Integrated assessment, Macroeconomic models, Water-energy-food ecosystems nexus
    JEL: Q18 Q25 Q43 Q54 Q57
    Date: 2022–11
  10. By: Höpner, Martin; Baccaro, Lucio
    Abstract: Dieser Beitrag analysiert Deutschlands exportorientiertes Wachstumsmodell in den Jahren 1991 bis 2019. Er richtet sich speziell an Leserinnen und Leser mit Interesse an politökonomischen Problemstellungen, aber ohne spezielle Vorkenntnisse über Forschungsansätze der Vergleichenden Politischen Ökonomie. Wirtschaftspolitik bewegt sich in einem Zielkonflikt zwischen Binnenstabilisierung und Exportförderung. Das deutsche Wirtschaftswachstum wurde im untersuchten Zeitraum vor allem von der Auslandsnachfrage getragen, was auf eine ungewöhnliche Kalibrierung der wirtschaftspolitischen Parameter hindeutet. Diese Ausrichtung wird in drei Sphären analysiert: in der Fiskal- und Geldpolitik, der Lohnpolitik und im Finanz-Wohnbau-Komplex. Das Wachstumsmodell hatte zwei formative Phasen, eine nach dem Ende des Wiedervereinigungsbooms und eine während der ersten ungefähr sechs bis acht Jahre nach der Eurogründung. Eine zurückhaltende Fiskalpolitik, ein gedämpftes Lohnwachstum und eine konservative Kredit- und Wohnungsbaupolitik hemmten das Binnenwachstum und die Preisauftriebe, verschafften dem Exportsektor vor dem Hintergrund einer preiselastischen Nachfrage nach deutschen Exportgütern aber Wettbewerbsvorteile. Zum Ende des Analysezeitraums wich die extreme Exportorientierung einem stärker ausbalancierten Wachstumsmodell. Der Beitrag schließt mit einem Ausblick auf mögliche zukünftige Entwicklungspfade.
    Keywords: Deutschland,exportgetriebenes Wachstum,Fiskalpolitik,Lohnpolitik,Phasen des Kapitalismus,Spielarten des Kapitalismus,Vergleichende Politische Ökonomie,Wachstumsmodelle,comparative political economy,export-led growth,fiscal policy,Germany,growth models,phases of capitalism,varieties of capitalism,wage policy
    Date: 2022
  11. By: Yamina Tadjeddine
    Abstract: Ecole of Regulation emerged in France in the mid-1970s. The two founding figures of this school are Michel Aglietta and Robert Boyer. In this article, we propose to follow Aglietta's personal and professional career between 1959 and 1976 to understand the genesis of regulation theory. Aglietta's career is structured by three formative phases, each of which is successively presented: student at the Ecole Polytechnique (1959-1965), senior civil servant at the INSEE (1965-1970), doctoral student (1970-1974). The Ecole de la Régulation is based on an original epistemic composite: the time spent at the Ecole Polytechnique and the programme division of the INSEE provided the macro-economic foundation, the use of national accounting, the hypothetico-deductive methodology; the stay at Harvard the American institutionalism; the personal affinities with Marxism and the work of François Perroux. The methodology mixes formal modelling from macroeconomics, historical materialism from Marxism, the use of national accounting and finally historical data on organisations from institutionalist heritage. We also highlight three ethical presupposition - tolerant humanism, state benevolence and prescriptive positivism - that run through Aglietta's scientific work and have their origins in the period 1959-1968, marked by the reconstruction of France after the Second World War and the Algerian War. This work is based on numerous interviews, on the analysis of published works and on the consultation of archives.
    Keywords: Ecole de la Régulation, Michel Aglietta, French Planning, History of economic though.
    JEL: B5
    Date: 2022
  12. By: Gouzoulis, Giorgos; Iliopoulos, Panagiotis; Galanis, Giorgos
    Abstract: This paper examines the determinants of the income share of wage earners in the non-financial, private sectors of Greece since its introduction to the Eurozone in 1999. The main outcome of the integration of Greece into the Eurozone has been the financialisation of its economy, which has been particularly influential for households since it led to the rapid rise of household indebtedness. Building on recent research within industrial relations, sociology of work, and political economy, which shows that financialisation is a key driver of wage bargaining outcomes, we demonstrate that the relative size of the FIRE sectors and the increase in household debt have been negative drivers of the wage share in Greece over the last 22 years. Our findings also suggest that the employment-tied social benefits system and tertiary education provision have also been important determinants of workers' income share.
    Keywords: Financialisation, Household Debt, EU Integration, Wage Share, Greece
    JEL: E24 E25 D33 F36 G51
    Date: 2022
  13. By: Nicolás Zeolla; Florencia Médici
    Abstract: Resumen: Entre 2015 y 2019, la economía argentina experimentó grandes transformaciones en su forma de inserción financiera, lo cual desencadenó una de las crisis externas más importantes de la región en los últimos 20 anos. A pesar de que existían signos de estar frente a los clásicos problemas estructurales de balance de pagos, la liberalización cambiaria y financiera incrementó la fragilidad financiera externa. Desde una perspectiva minskiana para economías abiertas, el objetivo de este artículo es analizar la gestación y secuencia de la crisis argentina de 2018, enfatizando la dimensión desregulatoria y de inestabilidad financiera creada por la inversión LEBACs (Letras del Banco Central), la persistencia de la salida de dólares y la inefectividad del acuerdo con el FMI para estabilizar la situación. Abstract: In the period from 2015 to 2019, Argentina´s economy underwent major transformations in the regulations of its financial market that ended up in generating one of the largest external crises in the region in the last 20 years. Despite the fact that the economy faced problems related to the historical balance-of-payment constraints, both exchange rate and financial liberalization increased external financial fragility. From a Minskian framework for open economies, the aim of this paper is to analyze the gestation of the last Argentinian financial crisis, the sequence of the crisis and, finally, the outflow of capital. We focus on the deregulatory dimension and the dynamics of financial instability produced by LEBACs investment, persistence of dollar outflows and the failure of the IMF agreement to stabilize the economy.
    Keywords: Argentina, crisis financiera, Minsky, deuda externa, Fondo Monetario InternacionalFinancial Crisis, Minsky, External Debt, IMF
    JEL: G01 F32 F34
    Date: 2022–01–19
  14. By: Mohajan, Devajit; Mohajan, Haradhan
    Abstract: This study tries to identify, define, and analyze the coding techniques that the grounded theory researchers follow when they develop the qualitative research. Grounded theory is a qualitative research analysis that systematically collects and analyzes data to develop a new theory on human behavior in social welfare perceptions. It also tries to discuss coding method, coding cycle, theoretical sensitivity, theoretical sampling, theoretical saturation, etc. Usually a code is a word or short phrases that symbolically allocate a summative, salient, and essence capturing for a portion of visual data. In qualitative grounded theory research coding plays an important role that enables the researchers to identify, organize, and build new theory that is grounded in data. The purpose of this study is to provide an overview of codes, coding, and coding methods that form a qualitative grounded theory.
    Keywords: Grounded theory, qualitative research, data analysis, coding procedures
    JEL: A2 I23 I31
    Date: 2022–09–12
  15. By: Hubert Bonin (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This essay mobilises the critical studies of two historians and a public company manager who have constructed systems for analysing the causes of France's deindustrialisation since the turn of the 1980s. A review of the ten or so themes around which issues concerning the responsibilities of the state's economic apparatus, company managers or experts are articulated allows for discussions about a recent history, admittedly, but which benefits from two dozen testimonies.
    Keywords: Third industrial revolution, Delocalisation, Competitiveness, Industrial decline, Economic lucidity.
    Date: 2022–12–09
  16. By: Fiorito, Luca; Erasmo, Valentina
    Abstract: The aim of this paper is to document Carver’s influence as a teacher and to shed further light on Harvard’s role as the “brain trust” of American eugenics (Fiorito 2019). On the same time, in more general terms, what follow adds to our general understanding of the extent to which biological considerations continued to permeate American social science well after the first two decades of the last century, the period which marked the "golden age" of eugenics (Leonard 2016).
    Date: 2022–12–13
  17. By: Chatterjee, Sidharta
    Abstract: This brief research note stresses the role intellectual and cognitive elements play in critical thinking and decision-making. Critical thinking skills are highly desirable among young adults and students, employees, teachers, and creative artists. The various elements of the functional brain that contribute to critical thinking are those that define our complex cognitive system. Critical thinking, like any other intellectual process, necessitates the use of focused attention, information processing, and reasoning abilities. It is an essential skill that has important applications in decision-making and in various domains of creative endeavors. A competent critical thinker is able to take a more rational approach to decision making. This paper highlights these issues and urges individuals to make space for critical thinking, which is so much in demand in these fast-paced digital environments.
    Keywords: Critical thinking, decision-making, rational choices, Intellectual process
    JEL: D7 O34
    Date: 2022–12–15
  18. By: Hupfel, Simon
    Abstract: The repeal of the British Combination Laws in 1824 is generally considered by historians as the landmark of modern trade unionism, and has been attributed to the contributions of classical political economists. In the sole article that addressed this issue in the field of the history of economic thought, William Grampp reached the opposite conclusion, according to which the influence of the economists (Ricardo, McCulloch, Malthus, Torrens and Senior) on repeal was actually small. Resituating the debates over the Combination Laws in their political context, we try to show, despite the relatively reduced volume of the classical economists’ direct contributions, that the economists were clearly favorable to the measure, and how “political economy” played a significant role in the achievement of repeal. In doing so, we offer a reflection on the methodology used by Grampp to study the influence of economic ideas on political debates and public policy.
    Date: 2022–12–13
  19. By: Pablo Nemina; Alejandro Gaggero
    Abstract: Resumen: La dolarización del mercado inmobiliario argentino se instaló a finales de la década de 1970 y —luego de una fugaz retracción— se consolidó en la década siguiente. Los pocos trabajos que analizan la problemática conciben a la dolarización como la adaptación racional ante la inflación o una condena cultural. Este artículo busca aportar a los estudios de sociología económica sobre la determinación cualitativa de los precios. Desde una perspectiva de sociología económica, se analiza cómo las transformaciones en el régimen institucional de política económica llevadas adelante por la última dictadura militar (1976-1983), y los cambios en las expectativas de los actores económicos, incidieron en la dolarización del mercado inmobiliario iniciada a finales de la década de 1970 y consolidada a comienzos de la década siguiente. Menos que una adaptación automática de la población, se plantea que la dolarización fue el resultado de tres procesos que confluyeron en esos anos: la liberalización cambiaria y financiera, que favoreció el acceso a la divisa norteamericana; la mercantilización de la vivienda; y la institucionalización de la inflación. Se trató de un proceso no exento de retrocesos y decididamente no buscado por el gobierno. Abstract: The Argentinean real estate market dollarization was installed in the late 1970s and, after a brief retraction, was consolidated in the following decade. The few studies that analyze the problem conceive dollarization as a rational adaptation to inflation or a cultural rout. This paper seeks to contribute to economic sociology studies on the qualitative determination of prices. From an economic sociology perspective, how the changes in the economic policy institutional framework carried out by the military dictatorship, and changes in economic actors’ expectations, influenced the dollarization of the housing market is examined. Beyond an automatic adaptation by the population, it is argued that the housing market dollarization was the result of three processes that came together in those years: the exchange rate and financial liberalization, which favoured access to the US currency; the commodification of housing; and institutionalization of inflation. Also, it was a process not without setbacks and decidedly not promoted by the government.
    Keywords: dolarización, mercado inmobiliario, Argentina, inflación, indexación, expectativas económicas, mercantilización de la vivienda, neoliberalismo; dollarization, real estate market, Argentina, inflation, indexation, economic expectations, housing commodification, Neoliberalism
    JEL: A14 D81 D84 R30
    Date: 2022–03–27
  20. By: Mulugeta Woldegiorgis, Mesfin
    Abstract: The current paper is keen to elucidating the nexus of social structure, economic exclusion, and wealth inequality as the instigating causes of political instability in the milieu of Africa. The paper uses eclectic notions including economic, sociological, and governance ideas. The panel dataset for the years 1990–2018 is amassed for 34 African countries, principally from the World Development Indicators, African Development Bank, and Fund for Peace databases. The country-specific fixed effects regression has been run using STATA software. The statistical finding suggests that hierarchical social structures cause economic exclusion and trigger conflict. Conversely, adapting an inclusive development approach is bearable remedy for the national social, economic, and political fragility of the countries. The foremost merit of the paper is that it encompasses the notion of structural and economic exclusion in the theories of peace and development.
    Keywords: Social inclusion Social interaction models Conflicts Social justice Social economics
    JEL: I31 I38 P3
    Date: 2021–10–22
  21. By: Woodgate, Ryan
    Abstract: This paper develops two Sraffian supermultiplier models of two different kinds of economies that are dependent upon foreign direct investment (FDI): the "export platform FDI-led" growth model and the "tax haven FDI-led" growth model. The former is driven by the growth of the exports of foreign-owned firms and is associated with greenfield FDI inflows, whereas the latter is driven by the growth of profits booked at foreign-owned shell companies that are partly absorbed through taxation and is associated with intangible FDI inflows. The two models achieve demand, output, and income growth via fundamentally different channels yet appear similarly export-led given how profit shifting artificially inflates the net exports of tax havens. Based on these models, a set of empirical indicators are proposed to differentiate exportplatform from tax haven economies. In contrast to Bohle/Regan (2021), who characterise output growth in both Hungary and Ireland as being led by the exports of foreign-owned firms, the model and indicators proposed here support the hypothesis that Ireland is closer to the tax haven FDI-led growth model.
    Keywords: Foreign direct investment,growth model,multinational corporation,tax haven
    JEL: E12 P44 F21 F23 F62
    Date: 2022
  22. By: Carlo Bottai; Martina Iori
    Abstract: Cities are key places of economic activity, as they produce an enormous amount of wealth compared to the land they cover. Their study is, therefore, of primary importance in understanding the success of nations. Given the many interactions among people that happen within them, cities are well described as complex evolving systems, and a thorough analysis of their economy should be able to deal with this complexity. A likely candidate to grasp the reality of complex evolving systems, such the economy of cities, is the Economic Complexity framework (Hidalgo and Hausmann, 2009), given its capacity to synthesize a large amount of informa- tion into a single index. We use patent data to compute the knowledge complexity index (KCI) of European metropolitan areas and describe their economy in terms of their innovative potential. Interpreted as a dimensionality-reduction algorithm, as proposed by Mealy et al. (2019), KCI helps to filter out the background noise from the abundant information produced by the interactions that happen within cities. By extending the work by van Dam et al. (2021), we highlight the relevance of going beyond the first leading eigenvector, to the analysis of which the rest of the literature is limited. We define clusters of similar cities, based on the additional dimensions obtained through this dimensionality-reduction procedure. The introduction of clusters dramatically increases the predicting power of KCI. Under this lens, the Economic Complexity framework is more than a single index: it is a powerful methodology to reveal the organized complexity hidden behind the large amount of chaotic information produced by out-of-equilibrium economic systems such as cities.
    Keywords: Gains from productivity; Development; Asymmetries.
    Date: 2022–12–19
  23. By: Manuel David Cruz; Daniele Tavani
    Abstract: We study a model of secular stagnation, income and wealth distribution, and employment in the classical-Marxian (CM) tradition, with the purpose of drawing a contrast with established neoclassical accounts of the topic (Piketty, 2014; Gordon, 2015). In these explanations, which assume full employment of labor at all times, an exogenous reduction in the growth rate g increases the difference with the endogenous rate of return to capital r. The capital-income ratio rises and, if the elasticity of substitution is above one, the wage share falls. Our explanation does not presuppose full employment, and features a crucial tension between profit-driven capital accumulation and wage-driven labor-augmenting technical change: both these features are defining for CM economics and have been emphasized in recent heterodox macro literature. Institutional or technological shocks that lower the wage share initially foster capital accumulation —which is profit-driven— and increase wealth inequality. However, the effect on long-run growth is negative, because a reduction in the wage share lessens the incentives by firms to introduce labor-saving innovation, which is wage-driven. The capital-income ratio must rise in order to restore balanced growth and stabilize employment in the long run; and the increase in wealth inequality is permanent. The ultimate effect on long-run employment depends on the relative strength of the response of technical change vs. real wage growth to labor market institutions: we identify a simple condition that delivers either a wage-led or a profitled long-run employment regime. We then test the model using time-series data for the US (1960-2019): impulse responses from VECM estimators lend support to the main predictions of our model, and point to the employment-population ratio being wage-led.
    Keywords: Secular Stagnation, Factor Shares, Wealth Inequality, Employment
    JEL: D31 D33 E11 E24 E25
    Date: 2022–12
  24. By: Chengyuan Han; Malte Schr\"oder; Dirk Witthaut; Philipp C. B\"ottcher
    Abstract: Understanding the structure and formation of networks is a central topic in complexity science. Economic networks are formed by decisions of individual agents and thus not properly described by established random graph models. In this article, we establish a model for the emergence of trade networks that is based on rational decisions of individual agents. The model incorporates key drivers for the emergence of trade, comparative advantage and economic scale effects, but also the heterogeneity of agents and the transportation or transaction costs. Numerical simulations show three macroscopically different regimes of the emerging trade networks. Depending on the specific transportation costs and the heterogeneity of individual preferences, we find centralized production with a star-like trade network, distributed production with all-to-all trading or local production and no trade. Using methods from statistical mechanics, we provide an analytic theory of the transitions between these regimes and estimates for critical parameters values.
    Date: 2022–12

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