nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2023‒03‒20
fifteen papers chosen by
Carlo D’Ippoliti
Università degli Studi di Roma “La Sapienza”

  1. Can a Catholic be Liberal? Roman Catholicism and Liberalism in a Political Economy Perspective (1800–1970) By Stefano Solari
  2. Decomposing Surplus-Value: An Analysis of Distribution and Unproductive Labour of the UK Economy, 1992-2020 By Papagiannaki, Eleni; Philp, Bruce; Wheatley, Daniel
  3. Why Economists Should Support Populist Antitrust Goals By Mark Glick; Gabriel A. Lozada; Darren Bush
  4. What would be a sustainable liberalism ? By Claude Gamel
  5. Analysis of the social innovation process: a methodological reframe grounded in immersion and participation By Guillaume Denos
  6. Towards a framework for assessing the sustainability of social-ecological landscapes By Atampugre, Gerald; Mensah, E.; Mabhaudhi, Tafadzwanashe; Cofie, Olufunke
  7. Weak sectors and weak ties? Labour dependence and asymmetric positioning in GVCs By Lorenzo Cresti; Maria Enrica Virgillito
  8. From bounded rationality to limited consideration: representation and behavioral analysis By Davide Carpentiere; Angelo Petralia
  9. Distributive Profiles Associated with Domestic Versus International Specialization in Global Value Chains By Ariel Luis Wirkierman
  10. Growth models, power blocs and authoritarianisms in Turkey and Egypt in the 21st century By Güngen, Ali Rıza; Akçay, Ümit
  11. Divorcing money creation from bank loans: Revisiting the “100% money” proposal of the 1930s By Samuel Demeulemeester
  12. Caves coopératives et portage foncier: quels choix de gouvernance ? By Christine Léger Léger-Bosch
  13. Опростяване и усъвършенстване By Fabio Ashtar Telarico
  14. Multinationals and Varieties of Capitalism: When U.S. Giants Stepped into the Swiss Coordinated Labor Market in the 1950s By Pitteloud, Sabine
  15. Order in Innovation By Martin Ho; Henry CW Price; Tim S Evans; Eoin O'Sullivan

  1. By: Stefano Solari (Unipd - Università degli Studi di Padova = University of Padua)
    Abstract: The philosophy of the Enlightenment and political thought of modernity found tough opposition in the Roman Catholic Church. Liberalism was associated with Free Masons and revolutionary intent. Nonetheless, liberalism and political economy stimulated some theoretical analysis and specific theoretical positions in terms of social philosophy and social economics by the Church. This paper presents an analysis of encyclical letters and other papal documents, as well as the writings of other Catholic scholars, to elaborate on the theoretical points used to contrast liberalism. Compromises, as well as turning points in the evolution of the Catholic position, are investigated. Lastly, the epistemological and historical reasons for the affinity of Roman Catholicism with ethical liberalism and the limits of this similarity are discussed. 1. Liberal and Catholic, an Italian drama
    Date: 2023–02–13
  2. By: Papagiannaki, Eleni; Philp, Bruce; Wheatley, Daniel
    Abstract: This article examines the trajectory of the surplus value (SV) rate in the UK economy, in the period 1992–2020, using ONS macroeconomic data (Blue Book) and micro-datasets (Understanding Society). We initially define productive and unproductive labour, proposing a “Marxist Productive Labour Classification System”, framed in critical context. Standard occupational (SOC) and standard industrial (SIC) codes are uniquely combined, using UK data, to derive empirical estimates of Marxian categories, specifically an aggregate model based on the New Interpretation framework. Then, movements in this rate are examined in terms of absolute and relative SV changes. We find that, prior to the 2008 Crisis, SV extraction is more reliant on production-related drivers, while after this dislocation SV is more reliant on the sphere of distribution, with the pandemic impacting all drivers negatively.
    Date: 2023–03–01
  3. By: Mark Glick (University of Utah); Gabriel A. Lozada (University of Utah); Darren Bush (University of Houston)
    Abstract: Antitrust economists have generally supported the Consumer Welfare Standard as a guide to antitrust policy questions because of its origins in Marshall's consumer surplus approach and the general economic surplus approach to welfare economics. But welfare economists no longer support the surplus approach because decades of research pertaining to the surplus approach have uncovered numerous inconsistencies and serious ethical challenges. However, the surplus approach to welfare survives in industrial organization textbooks and among industrial organization economists that specialize in antitrust. We argue in this paper that the Consumer Welfare Standard is not a reliable standard and should be abandoned. We cite several reasons: (1) it limits antitrust goals a priori without any defensible justification, (2) it considers all transfers of surplus between stakeholders in antitrust cases to be welfare neutral, (3) it is biased in favor of big business and the rich, and (4) the accumulation of inconsistencies and problems documented by welfare economists renders the theory completely unreliable. In a final section of the paper, we preliminarily contend that modern research in welfare economics concerning the factors that influence human welfare could be used to inform a more progressive standard for determining antitrust goals.
    Keywords: Consumer Welfare Standard, Consumer Surplus, Antitrust, Law and Economics, Compensating Variation, Equivalent Variation, Kaldor Hicks, Pareto Efficiency.
    JEL: K1 D61 L4
    Date: 2022–12–06
  4. By: Claude Gamel (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In France, liberalism is not a well-known philosophy, which is even often caricatured. After more than thirty years of personal academic research, the idea of developing a "sustainable" version of liberalism came to me slowly, which finally led to a book recently published (2021). The current text outlines the four basic components of which the book is the result (I) and the perspective adopted – Rawlsian "property-owning democracy" rather than Hayekian "rules of just conduct" (II). In fact, my (socially) sustainable liberalism is a true puzzle, in so far it aims to combine pieces borrowed from four authors – Hayek and Rawls, but also Sen and Van Parijs (III). In conclusion, such a liberalism could not be a completely sustainable one, because of course it concerns justice in society, but it is not enough to deal with other important challenges to be met in the contemporary world (IV).
    Abstract: Le libéralisme est en France une philosophie mal connue et souvent caricaturée. À l'issue de plus de trente ans de recherches universitaires personnelles, l'idée de développer une version « soutenable » du libéralisme s'est peu à peu imposée, conclue par la publication récente d'un ouvrage (2021). Le présent texte expose d'abord les quatre « ingrédients » dont cet ouvrage est le résultat (I), puis l'angle d'attaque adopté-la « démocratie de propriétaires » de Rawls, plutôt que « les règles de juste conduite » de Hayek (II). Mon libéralisme (socialement) soutenable est en fait un véritable puzzle qui cherche à emboiter des pièces empruntées à quatre auteurs-Hayek et Rawls, mais aussi Sen et Van Parijs (III). En conclusion, un tel libéralisme ne pourrait être complètement soutenable, car il aborde certes la question de la justice en société, mais cela ne suffit pas pour traiter d'autres défis importants que le monde contemporain a à relever (IV).
    Keywords: rules of just conduct, property-owning democracy, labour, capabilities, basic income, règles de juste conduite, démocratie de propriétaires, travail, capacités, revenu de base
    Date: 2023
  5. By: Guillaume Denos (GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - AGROCAMPUS OUEST - Institut National de l'Horticulture et du Paysage, IAE Angers - Institut d'Administration des Entreprises (IAE) - Angers - UA - Université d'Angers)
    Abstract: • Objective This article proposes a methodological reframe for social innovation research. Our work shows that ethnography offers an appropriate immersive and participatory methodological framework to address the need for contextualised research that can identify novel practices and initiatives led by agents for revitalisation and transformation within social communities. • Methodology Based on the ethnographic account from the experience with the nonprofit La Cocotte Solidaire, we discuss the adoption of the status of participant-observer and the deployment of a data collection system that combines triangulation with scanning for hot and cold information. • Results We detail ways to capture socially innovative initiatives taking into account the cultural and organisational specificities involved: the objective of social performance, territorial grounding, or collective and democratic functioning. • Managerial implications Our work promotes collaboration between social scientists and practitioner-innovators who need to embrace their capacity to drive social innovation and the value of ‘engaging' ethnographers in their approach. • Originality The article is part of the field of ethnographic marketing research and opens methodological pathways for studying emerging phenomena that drive social transformation.
    Abstract: • Objectif Cet article propose une réflexion méthodologique pour l'étude des innovations sociales. Constatant le besoin de travaux contextualisés permettant d'identifier les pratiques et initiatives originales portées par des acteurs en quête de renouveau et de transformations au sein de nos sociétés, nos travaux montrent que l'ethnographie comme approche immersive et participative est une méthode adaptée pour atteindre cet objectif. • Méthodologie Basés sur le récit de la recherche ethnographique menée auprès de l'association La Cocotte Solidaire, nous discutons de l'adoption du statut de participant observateur et du déploiement d'un dispositif de collecte de données alliant triangulation et quête d'informations chaudes et froides. • Résultats Nous précisons les moyens de s'emparer des initiatives socialement innovantes en tenant compte des spécificités culturelles et organisationnelles qu'elles impliquent : objectif de performance sociale, ancrage territorial ou encore fonctionnement collectif et démocratique. • Implications managériales Nos travaux valorisent les collaborations entre acteurs académiques et praticiens – innovateurs sociaux, ces derniers doivent prendre conscience de leurs capacités à innover socialement et de l'intérêt « d'embarquer » dans leur démarche des chercheurs-ethnographes. • Originalité L'article s'inscrit dans le champ de l'ethnomarketing et ouvre la voie méthodologique de l'étude de nouveaux phénomènes vecteurs de transformation sociale
    Keywords: innovation sociale, ethnomarketing, immersion, participation observante, méthodologie qualitative.
    Date: 2023–01
  6. By: Atampugre, Gerald (International Water Management Institute); Mensah, E.; Mabhaudhi, Tafadzwanashe (International Water Management Institute); Cofie, Olufunke (International Water Management Institute)
    Keywords: Landscape approaches; Social aspects; Ecological factors; Sustainability; Frameworks; Biodiversity; Ecosystem services; Agroecology; Livelihoods
    Date: 2022
  7. By: Lorenzo Cresti; Maria Enrica Virgillito
    Abstract: Focusing on labour requirements incorporated into GVCs, in the following, we develop a novel, non conventional measure of learning capabilities, represented by knowledge embodied along the division of labour within global production networks. In order to capture the division of labour, and the ensuing division of embodied knowledge, we move from monetary flows of production, or value-added embodied, to labour embodied in the I-O linkages. We focus on mature economies as offshoring has been particularly in place there. After constructing a new indicator of Bilateral Net Labour Dependence, we estimate its relationship with a measure of performance of industries, namely, labour productivity, seeking to challenge the established findings generally reporting a positive effect of GVCs participation for sector-level productivity. Our conjecture is that being in a weak position in terms of (net) labour provision results in an overall weakening of the capabilities of the loosing productive structure. We corroborate the conjecture with a panel analysis of OECD countries and industries for the time period 2000-2014.
    Keywords: Input-output; global value chains; international division of labour; dependency theory.
    Date: 2023–02–24
  8. By: Davide Carpentiere; Angelo Petralia
    Abstract: Many bounded rationality approaches discussed in the literature are models of limited consideration. We provide a novel representation and data interpretation for some of the analyzed behavioral patterns. Moreover, we characterize a testable choice procedure that allows the experimenter to uniquely infer limited consideration from irrational features of the observed behavior.
    Date: 2023–02
  9. By: Ariel Luis Wirkierman (Goldsmiths, University of London)
    Abstract: The present paper sets out trends in the functional income distribution implied by countries' integration in Global Value Chains (GVCs), taking account also of interregional interactions (South-South and North-South). Through the application of an innovative input-output methodology, it quantifies inter-country differences in functional income distribution by means of a novel indicator to estimate the distributive profile associated with domestic vis-a-vis international specialization. The focus is on trade flows, and the analysis carried out allows us to single out the distributive implications of alternative regional integration projects, in view of a more inclusive multilateral trade system.
    Keywords: Global Value Chains; Input-Output analysis; Functional income distribution.
    JEL: D57 E16 E23 F60
    Date: 2023–01–24
  10. By: Güngen, Ali Rıza; Akçay, Ümit
    Abstract: Analysis of the growth patterns in the global South in the 21st century suggests there is room for authoritarian states to search for new growth models. Authoritarian states, such as Turkey and Egypt, benefited from global financial circumstances in the early 21st century and opted for new growth models in the 2010s, suppressing political space further. To explain the changes in growth models amid the strength of reinforced authoritarianisms in these two countries, we employ a hybrid research strategy consisting of critical macroeconomic analysis and a critical political economy approach, tying growth model changes to conflicts within the power bloc. Peripheral goods producers gained the upper hand in Turkey in this period, while a military takeover in Egypt was followed by the promotion of exports and new investments in the mid-to-late 2010s. We contend that power bloc reconfigurations and the rise of new growth strategies led to the change in Turkey's growth model during the Covid-19 pandemic and the quasi-shift in Egypt's growth model in the late 2010s.
    Keywords: Comparative political economy, growth models, growth strategies, Turkey, Egypt
    JEL: B52 E65 E66 F43 O43 P52
    Date: 2023
  11. By: Samuel Demeulemeester (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The 2007-2008 global financial crisis has brought strong renewed interest in the "100% money" reform proposal, inherited from the 1930s, which aims at divorcing money creation from bank lending by imposing 100% reserves on current account deposits. This reform idea, however, is frequently subject to confusion, being sometimes likened to the idea of abolishing bank intermediation, sometimes to that of setting up a currency board, or yet mistaken for the more recent "narrow banking" proposal. For this reason, this article offers to clarify its concept and objectives, by revisiting the works of the authors of this proposal in the 1930s—Henry Simons, Lauchlin Currie and Irving Fisher in particular. After briefly recalling the history of the "100% money" idea, we present its main arguments, and then discuss its implications for the payment system, bank intermediation, and the institutional framework of money issuance. We conclude on the importance of a conceptual clarification of this reform idea in respect of the ongoing discussions about it.
    Abstract: La crise financière mondiale de 2007-2008 a conduit à un renouvellement d'intérêt marqué pour la proposition de réforme « 100% monnaie », héritée des années 1930, qui vise à dissocier la création monétaire des prêts bancaires en imposant 100% de réserves sur les dépôts en compte courant. Cette idée de réforme est cependant régulièrement sujette à confusion, étant tantôt assimilée à l'idée d'abolir l'intermédiation bancaire, tantôt à celle d'instaurer un currency board, lorsqu'elle n'est pas confondue avec la proposition plus récente du narrow banking. Pour cette raison, cet article entreprend d'en clarifier le concept et les objectifs, en revisitant les travaux des auteurs de cette proposition dans les années 1930 – Henry Simons, Lauchlin Currie et Irving Fisher notamment. Après un bref rappel historique de l'idée de « 100% monnaie », nous en présentons les principaux arguments, puis discutons de ses implications pour le système de paiement, l'intermédiation bancaire, et le cadre institutionnel de l'émission monétaire. Nous concluons sur l'importance d'une clarification conceptuelle de cette idée de réforme au regard des débats dont elle continue de faire l'objet.
    Keywords: 100% money, money creation, Irving Fisher, Chicago Plan, narrow banking, 100% monnaie, Plan de Chicago, création monétaire
    Date: 2022
  12. By: Christine Léger Léger-Bosch (UCA [2017-2020] - Université Clermont Auvergne [2017-2020], Territoires - Territoires - INRA - Institut National de la Recherche Agronomique - AgroParisTech - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture - UCA [2017-2020] - Université Clermont Auvergne [2017-2020], INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Le document fait une synthèse de la démarche du projet Coop'Portage et de ses résultats, résultats qui constituent un outil d'aide à la réflexion pour les caves coopératives envisageant une action de portage foncier.
    Date: 2022–12–06
  13. By: Fabio Ashtar Telarico (University of Ljubljana)
    Abstract: В продължение на 30 години след края на реалния социализъм България премина от доста радикално "различна" данъчна система към плоска данъчна ставка с пределни данъчни ставки, които спаднаха от 40 % до 10 % както за корпоративния данък, така и за данъка върху доходите на физическите лица. От съществено значение е, че иконометричните модели за прогнозиране, използвани от българското Министерство на финансите, сочат увеличение на данъчните приходи, съвместимо с така наречената "крива на Лафер". Също така много икономисти бяха на мнение, че приходите щяха да се увеличат. Реалността обаче не отговори на очакванията, основани на прогнозните модели и залегнали в основната икономическа теория. Ето защо в настоящата статия се поставя въпросът дали съществуват по-ефективни модели за прогнозиране на приходите от данъци върху доходите на физическите лица и корпоративните данъци в България, които са лесно приложими и превъзхождат сега използваните. След като формулира конструктивна критика на настоящите модели за прогнозиране, статията предлага лесно приложими, прозрачни алтернативи и доказва тяхното превъзходство.
    Abstract: In the thirty years since the end of real socialism, Bulgaria's went from having a rather radically 'different' tax system to adopting flat-rate taxation with marginal tax rates that fell from figures as high as 40% to 10% for both the corporate-income tax and the personal-income tax. Crucially, the econometric forecasting models in use at the Bulgarian Ministry of Finance hinted at an increase in tax revenue compatible with the so-called 'Laffer curve'. Similarly, many economists held the view that revenues would have increased. However, reality fell short of those expectations based on forecasting models and rooted in mainstream economic theory. Thus, this paper asks whether there are betterperforming forecasting models for personal-and corporate-income tax-revenues in Bulgaria that are readily implementable and overperform the ones currently in use. After articulating a constructive critique of the current forecasting models, the paper offers readily implementable, transparent alternatives and proves their superiority.
    Abstract: Au cours des trente années qui se sont écoulées depuis la fin du socialisme réel, la Bulgarie est passée d'un système fiscal assez radicalement "différent" à l'adoption d'une imposition forfaitaire, avec des taux d'imposition marginaux qui sont passés de 40 % à 10 %, tant pour l'impôt sur les sociétés que pour l'impôt sur le revenu des personnes physiques. Les modèles économétriques de prévision utilisés par le ministère bulgare des finances laissaient entrevoir une augmentation des recettes fiscales compatible avec la "courbe de Laffer". De même, de nombreux économistes étaient d'avis que les recettes auraient augmenté. Cependant, la réalité n'a pas répondu aux attentes fondées sur les modèles de prévision et ancrées dans la théorie économique dominante. Cet article pose donc la question de savoir s'il existe des modèles de prévision plus performants pour les recettes fiscales des particuliers et des entreprises en Bulgarie, qui soient facilement applicables et plus performants que ceux actuellement utilisés. Après avoir formulé une critique constructive des modèles de prévision actuels, l'article propose des alternatives transparentes et faciles à mettre en œuvre et prouve leur supériorité.
    Abstract: Nei trent'anni trascorsi dalla fine del socialismo reale, la Bulgaria è passata da un sistema fiscale radicalmente "diverso" all'adozione di una tassazione forfettaria con aliquote marginali che sono scese dal 40% al 10% sia per l'imposta sul reddito delle società che per quella sul reddito delle persone fisiche. In particolare, i modelli econometrici di previsione in uso presso il Ministero delle Finanze bulgaro indicavano un aumento del gettito fiscale compatibile con la cosiddetta "curva di Laffer". Allo stesso modo, molti economisti ritenevano che le entrate sarebbero aumentate. Tuttavia, la realtà è stata inferiore alle aspettative basate sui modelli di previsione e radicate nella teoria economica tradizionale. Il presente documento si chiede quindi se esistano modelli di previsione più efficaci per le entrate fiscali delle persone fisiche e delle società in Bulgaria, facilmente implementabili e superiori a quelli attualmente in uso. Dopo aver formulato una critica costruttiva agli attuali modelli di previsione, il documento offre alternative trasparenti e facilmente implementabili e ne dimostra la superiorità.
    Keywords: данъчни приходи, прогнозиране на приходи, България, иконометрично моделиране, tax revenues, revenue forecasting, Bulgaria, econometric modelling, recettes fiscales, prévision des recettes, Bulgarie, modélisation économétrique, gettito fiscale, previsione del gettito, modelli econometrici
    Date: 2023–02–13
  14. By: Pitteloud, Sabine
    JEL: N0
    Date: 2022
  15. By: Martin Ho; Henry CW Price; Tim S Evans; Eoin O'Sullivan
    Abstract: Is calendar time the true clock of innovation? By combining complexity science with innovation economics and using vaccine datasets containing over three million citations and eight regulatory authorisations, we discover that calendar time and network order describe innovation progress at varying accuracy. First, we present a method to establish a mathematical link between technological evolution and complex networks. The result is a path of events that narrates innovation bottlenecks. Next, we quantify the position and proximity of documents to these innovation paths and find that research, by and large, proceed from basic research, applied research, development, to commercialisation. By extension, we are able to causally quantify the participation of innovation funders. When it comes to vaccine innovation, diffusion-oriented entities are preoccupied with basic, later-stage research; biopharmaceuticals tend to participate in applied development activities and clinical trials at the later-stage; while mission-oriented entities tend to initiate early-stage research. Future innovation programs and funding allocations would benefit from better understanding innovation orders.
    Date: 2023–02

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