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on Heterodox Microeconomics |
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Issue of 2023‒04‒10
twenty papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Alessio Emanuele Biondo |
| Abstract: | This paper presents an agent-based model with the aim to follow, as closely as possible, the rationale of the macroeconomic model advanced by J.M. Keynes in his famous book entitled The General Theory of Unemployment, Interest and Money. Since the task is admittedly ambitious, it has been divided over more than one single paper. In the present one, the modelling choices are described and the main objective of the General Theory will be provided, i.e., to determine the level of income and employment starting from the interest rate, the marginal efficiency of capital, and the marginal propensity to consume. In the forthcoming companion paper, results from a more articulated set of simulations - referred to some exercises of monetary and fiscal policy - will be reported. The description of the elements of the model is provided with several supporting parts of the original text. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.00889&r=hme |
| By: | Hirotaka Goto |
| Abstract: | Individual participants in human society collectively exhibit aggregation behavior. In this study, we present a simple microscopic model of labor force migration by employing the active Brownian particles framework. Through agent-based simulations, we find that our model produces clusters of agents from a random initial distribution. Furthermore, two empirical regularities called Zipf's and Okun's laws were observed in our model. To reveal the mechanism underlying the reproduced agglomeration phenomena, we derived an extended Keller-Segel system, a classic model that describes the aggregation behavior of biological organisms called "taxis, " from our microscopic model. The obtained macroscopic system indicates that the agglomeration of the workforce in real world can be accounted for through a new type of taxis central to human behavior, which highlights the relevance of urbanization to blow-up phenomena in the derived PDE system. We term it "econotaxis." |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.09720&r=hme |
| By: | Matthew Dicks; Andrew Paskaramoothy; Tim Gebbie |
| Abstract: | We consider the dynamics and the interactions of multiple reinforcement learning optimal execution trading agents interacting with a reactive Agent-Based Model (ABM) of a financial market in event time. The model represents a market ecology with 3-trophic levels represented by: optimal execution learning agents, minimally intelligent liquidity takers, and fast electronic liquidity providers. The optimal execution agent classes include buying and selling agents that can either use a combination of limit orders and market orders, or only trade using market orders. The reward function explicitly balances trade execution slippage against the penalty of not executing the order timeously. This work demonstrates how multiple competing learning agents impact a minimally intelligent market simulation as functions of the number of agents, the size of agents' initial orders, and the state spaces used for learning. We use phase space plots to examine the dynamics of the ABM, when various specifications of learning agents are included. Further, we examine whether the inclusion of optimal execution agents that can learn is able to produce dynamics with the same complexity as empirical data. We find that the inclusion of optimal execution agents changes the stylised facts produced by ABM to conform more with empirical data, and are a necessary inclusion for ABMs investigating market micro-structure. However, including execution agents to chartist-fundamentalist-noise ABMs is insufficient to recover the complexity observed in empirical data. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.07393&r=hme |
| By: | Mohajan, Devajit; Mohajan, Haradhan |
| Abstract: | This paper tries to discuss families of grounded theory. Grounded theory is a systematic research analysis that deals with qualitative research area. It is based on the effort to collect field data; follow the development and refinement through the systematic data analysis, and the final result can test existing theories or develop a new theory. Therefore, it constructs hypotheses and theories by the continuous collection and analysis of data. It is established for the first time in 1967 by two American sociologists Barney Galland Glaser and Anselm Leonard Strauss. Since the starting, it has taken on different iterations, and evolved a number of variants, such as classic grounded theory, Straussian grounded theory, constructivist grounded theory, and feminist grounded theory. New grounded theory researchers face difficulties to understand how to operate and apply families of grounded theory concepts and methods properly. This study has planned to provide an overview of families of grounded theory with the proper explanation for them. In this study an attempt has been taken to provide an up-to-date research framework of a grounded theory and its variants. |
| Keywords: | Grounded theory, qualitative research, Glaser, Strauss, variants of grounded theory |
| JEL: | A14 B54 D6 I31 |
| Date: | 2023–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116752&r=hme |
| By: | Claudius Graebner-Radkowitsch (Institute for Socio-Economics, University of Duisburg-Essen, Germany; Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; ZOE Institute for future-fit Economies, Bonn, Germany; International lnstitute of Management and Economic Education, Europa-Universitaet Flennsburg, Germany); Birte Strunk |
| Abstract: | We conduct a systematic literature review comprising both a quantitative and qualitative content analysis of the academic degrowth literature considering the Global South, and delineate substantive and methodological implications for future research. We find two main narratives: one stressing synergies, i.e. commonalities among Global South and Global North perspectives on degrowth, and another highlighting challenges, i.e. a constructive discussion of a range of challenges that emerge in this context. Our review reveals, inter alia, that the existing literature focuses mainly on the synergy narrative, and that there is a strong focus on theoretical and qualitative methodology. We argue that future research might want to put more emphasis on the investigation of structural dependencies between the North and South, using a broader methodological toolkit than so far. Only then one can effectively address the twin problem of global dependencies: the fact that within the current institutional framework, these dependencies are a motivation for and a potential obstacle to degrowth at the same time. |
| Keywords: | Degrowth; Global South; structural dependencies; decolonization |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:ico:wpaper:142&r=hme |
| By: | Jorge Notaro |
| Abstract: | Resumen: El objetivo del artículo es mostrar la relación de algunas decisiones de política económica en Uruguay, desde 2015 hasta 2019, con las reivindicaciones de grupos que se pueden considerar clases sociales de acuerdo a la definición adoptada. Se utilizó una metodología interdisciplinaria, heterodoxa, con planteamientos de Lukács (1969) considerando la sociedad como totalidad en movimiento y también de García (2006) con su definición de “sistema complejo†que orienta el análisis de las interrelaciones de la política económica, como una pieza de un engranaje social complejo y vasto, en un doble sentido, como condicionada y condicionante. Se concluyó que se implementó un ajuste heterodoxo, los objetivos fueron los característicos de estas políticas, pero la instrumentación incorporó innovaciones. La satisfacción del capital financiero se manifestó tanto en su discurso —expresado por el Fondo Monetario Internacional (FMI) y las calificadoras de riesgo— como en su práctica, por la creciente demanda de los bonos soberanos. La política que se instrumentalizó como estrategia de la alianza de clases dominantes hegemonizada por el capital financiero se impuso a pesar de la lucha de las organizaciones populares, en la pugna por la apropiación del excedente económico y la dominación. Abstract: The aim of the article is to show the relationship of some Economic Policy decisions in Uruguay, from 2015 to 2019, with the demands of groups that can be considered social classes according to the definition adopted. An interdisciplinary, heterodox methodology was used, with influences from Lukács (1969) considering society as a whole in motion and from García (2006) with his definition of "complex system" that guides the analysis of the interrelationships of Economic Policy, as a piece of a complex and vast social gear, in a double sense, as conditioned and as conditioning. It was concluded that a heterodox adjustment was implemented, the objectives were the characteristics of these policies but the instrumentation incorporated innovations. The satisfaction of financial capital was manifested both in its speech, expressed by the International Monetary Fund and the risk rating agencies, and in its practice, due to the growing demand for sovereign bonds. The policy that was instrumentalized as a strategy of the alliance of dominant classes hegemonized by financial capital was imposed despite the opposition of the popular organizations, in the struggle for the appropriation of the economic surplus and domination. |
| Keywords: | política económica, política de ajuste, metodología, interdiciplinar, sistema complejo, clases sociales (es)econonomic policy, adjustment policy, methodology, interdiscipline, complex system, social classes (en) |
| JEL: | A12 E60 F60 H11 P16 |
| Date: | 2022–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:col:000418:020648&r=hme |
| By: | Cars Hommes (University of Amsterdam); Sebastian Poledna (International Institute for Applied Systems Analysis) |
| Abstract: | We develop an agent-based model for the euro area that fulfils widely recommended requirements for nextgeneration macroeconomic models by i) incorporating financial frictions, ii) relaxing the requirement of rational expectations, and iii) including heterogeneous agents. Using macroeconomic and sectoral data, the model includes all sectors (financial, non-financial, household, and a general government) and connects financial flows and balance sheets with stock-flow consistency. The model, moreover, incorporates many features considered essential for future policy models, such as a financial accelerator with debt-financed investment and a complete GDP identity, and allows for non-linear responses. We first show that the agent-based model outperforms dynamic stochastic general equilibrium and vector autoregression models in out-of-sample forecasting. We then demonstrate that the model can help make sense of extreme macroeconomic movements and apply the model to the three recent major economic crises of the euro area: the Financial crisis of 2007-2008 and the subsequent Great Recession, the European sovereign debt crisis, and the COVID-19 recession. We show that the model, due to non-linear responses, is capable of predicting a severe crisis arising endogenously around the most intense phase of the Great Recession in the euro area without any exogenous shocks. By analysing the COVID-19 recession, we further demonstrate the model for scenario analysis with exogenous shocks. Here we show that the model reproduces the observed deep recession followed by a swift recovery and also captures the persistent rise in inflation following the COVID-19 recession |
| Keywords: | agent-based models, behavioural macro, macroeconomic forecasting, microdata, financial crisis, inflation and prices, coronavirus disease (COVID- 19). |
| JEL: | E70 E32 E37 |
| Date: | 2023–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20230013&r=hme |
| By: | Paul Koster (Vrije Universiteit Amsterdam) |
| Abstract: | Public benefit-cost analysis of market policies often relies on a particular definition of market surplus that adds up consumer and producer surplus and external costs. This paper provides an overview of conceptual strategies to deal with moral considerations and then develops an adjusted market surplus function that is able to deal with heterogeneous normative perspectives. In a stylised model, new expressions for first-best Pigouvian taxes are developed that depend on moral considerations. A novel moral rule-of-half approximation is provided for the potential surplus gains of taxation or behavioural change. |
| Keywords: | Welfare economics, Moral considerations, Normative Pluralism, Ethics and market value, Benefit-cost analysis, Pigouvian taxation. |
| JEL: | D04 D61 D62 D63 B59 A13 |
| Date: | 2023–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20230008&r=hme |
| By: | Rainer Diaz-Bone; Guillemette de Larquier (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The notion of convention is a core notion of the interdisciplinary and in-ternational movement of economics and sociology of conventions (in short EC/SC). This chapter presents developments, models and different notions of the name giving concept of "convention". EC/SC can be conceived as a complex pragmatist institutionalism, which explains coordination, evaluation and interpretation in situations by referring to conventions. This way, conventions can be regarded as institutional logics for the valuation or valorization of goods, actions and persons. An early application of EC/SC has been the sociology of quantification and categorization, where conventions are analyzed as the basis for measurement. EC/SC has built up its perspective on conventions on two foregoing notions, which were introduced by Keynes and Lewis. EC/SC assumes that real situations are governed by a plurality of co-existing conventions. Therefore, a set of models have been worked out, which systematize conventions as logics of evaluation, valuation and interpretation. This chapter presents how EC/SC approaches the stability and dynamics of conventions and concludes by pointing to EC/SC as a contemporary reconciliation of pragmatism and structuralism. |
| Keywords: | Conventions, Coordination, Evaluation and interpretation, Orders of justification, Worlds of production, Measurement conventions, Institutions |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03932263&r=hme |
| By: | Claude Ménard (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - École d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | That "institutions matter" has become a mantra among economists. It has not always been so. For a long time, the conventional wisdom considered institutions as exogenous parameters, the study of which should be delegated to ‘soft' social sciences, mainly sociology and political sciences. And many contemporary economists still disregard the analysis of institutions in their research agenda, mainly because of the difficulty in quantifying and modeling their role |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04012202&r=hme |
| By: | Masao Ogaki (Faculity of Economics, Keio University) |
| Abstract: | 1. This paper discusses the importance of the community mechanism that complements the market and power mechanisms in an economic system during an era of crisis. 2. The community mechanism is defined as a mechanism for resource allocation by which at least one person proposes voluntary cooperation, and the proposal is not rejected. 3. While this community mechanism can function alongside homo economicus in win?win situations, it can be further activated with social preferences for altruism and reciprocity and with norms or worldviews that encourage cooperation. 4. Other factors that relate to these include the character strengths that contribute to community and society known as virtues, with the concept of wellbeing related to virtues being known as eudaimonia |
| Keywords: | Community mechanism, Altruism, Reciprocity, Trust, Virtue, Eudaimonia |
| JEL: | A10 D01 D04 |
| Date: | 2023–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2023-004&r=hme |
| By: | Ankel-Peters, Jörg; Fiala, Nathan; Neubauer, Florian |
| Abstract: | Replication and constructive controversy are essential for scientific progress. This paper reviews the impact of all replications published as comments in the American Economic Review between 2010 and 2020. We investigate the citation rates of comments and whether a comment affects its original paper's citation rates. We find that most comments are barely cited, and they have no impact on the original papers' subsequent citations. This finding holds for original papers for which the comment diagnoses a substantive problem. We conclude from these citation patterns that replications do not update the economics literature. In an online opinion survey, we elicited viewpoints of both comment authors and original authors and find that in most cases, there is no consensus regarding the replication's success and to what extent the original paper's contribution sustains. This resonates with the conventional wisdom that robustness and replicability are hard to define in economics. |
| Keywords: | Replication, citations, meta-science |
| JEL: | A11 A14 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:1005&r=hme |
| By: | Alastair Langtry; Christian Ghinglino |
| Abstract: | This paper adapts ideas from social identity theory to set out a new framework for modelling conspicuous consumption. Notably, this approach can explain two stylised facts about conspicuous consumption that initially seem at odds with one another, and to date have required different families of models to explain each: (1) people consume more visible goods when their neighbours' incomes rise, but (2) consume less visible goods when incomes of those with the same race in a wider geographic area rise. The first fact is typically explained by `Keeping up with the Joneses' models, and the second by signalling models. Our model also explains related features of conspicuous consumption: that the rich are more sensitive to others' incomes than the poor, and that the effect of income inequality on consumption differs qualitatively across groups. Importantly, it explains this fourth stylised fact without falling back on differences in preferences across groups, as required in other models. In addition, our model delivers new testable predictions regarding the role of network structure and income inequality for conspicuous consumption. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.07008&r=hme |
| By: | Bursztyn, Leonardo (University of Chicago); Cappelen, Alexander (Dept. of Economics, Norwegian School of Economics and Business Administration); Tungodden, Bertil (Dept. of Economics, Norwegian School of Economics and Business Administration); Voena, Alessandra (Stanford University); Yanagizawa-Drott, David (Zurich University) |
| Abstract: | Actual and perceived gender norms are key to understanding gender inequality. Using newly-collected, nationally representative datasets from 60 countries covering 80% of the world population, this paper studies gender norms on two policy issues: basic rights, allowing women to work outside of the home, and affirmative action, prioritizing women when hiring for leadership positions. Misperceptions of gender norms are pervasive across the world, and the nature of the misperception is context-dependent. In less gender-equal countries, people underestimate support for both policies, particularly support among men; in more gender-equal countries, people overestimate support for affirmative action, particularly support among women, and underestimate support for basic rights. Gender stereotyping and overweighting of minority views are potential drivers of the global patterns of misperceptions. Our findings indicate how misperceptions of gender norms may obstruct progress toward gender equality and contribute to sustaining gender policies that are not necessarily favored by women. |
| Keywords: | Social norms; misperceptions; gender |
| JEL: | J00 J16 |
| Date: | 2023–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2023_005&r=hme |
| By: | , 段贤香 |
| Abstract: | The paper proposes that the essence of the financial crisis is the gap between the speed of money flow is too big. and gives two formulas. One formula is to calculate the speed of money flow, and one is the supply formula derived from it. The paper also presents methods for analyzing complex science, which economics is. The paper proposes several methods to analyze complex systems, such as "program" and "fractal" |
| Date: | 2023–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:4azjc&r=hme |
| By: | Actis Di Pasquale, Eugenio |
| Abstract: | En este texto se pretende responder al interrogante ¿qué es la economía? Para ello, en primer lugar, se diferencia el significado de ortodoxia y heterodoxia, lo que permite presentar una selección de escuelas de pensamiento económico (clásica, socialista científica, neoclásica, keynesiana, institucionalista y feminista). Esto nos va a permitir distinguir los objetos de estudio de cada una y su correspondiente definición, ubicando doctrinalmente las diferencias entre macroeconomía y microeconomía, como recuperar el debate entre economía positiva y normativa. En segundo lugar, a través de una mirada crítica estudiamos la definición más difundida de economía como ciencia de la escasez, destacando sus limitaciones. En tercer lugar, presentamos los avances recientes en el campo de la economía (economía social y solidaria, economía del comportamiento, neuroeconomía, economía azul, economía ecológica, economía del conocimiento y economía del cuidado). En cuarto lugar realizamos una reflexión final y proponemos una definición general de esta ciencia. Al final del documento se presenta una guía de autoestudio y repaso. |
| Keywords: | Economía; Pensamiento Económico; |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:3818&r=hme |
| By: | Ariel Dvoskin; Guido Ianni |
| Keywords: | Cadena de ventajas comparativas; Costos comparativos; Bienes de capital importados; Patrón del comercio |
| JEL: | B51 F10 F16 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4463&r=hme |
| By: | Hernán Alejandro Roitbarg |
| Abstract: | Resumen: Este artículo analiza la inserción latinoamericana en cadenas de producción globales y regionales, según la especialización funcional desempenada. Para realizar el análisis se ha construido y armonizado una base de datos sobre ingresos por ocupación para siete países de la región. La metodología se basó en un enfoque de Insumo Producto multi-país. Los resultados indican un perfil de especialización manufacturero basado fundamentalmente en tareas de fabricación. Los casos excepcionales se concentran en Brasil y México, países que también participan por medio de las funciones de dirección e investigación y desarrollo. Los hallazgos implican que la inserción general de Latinoamérica por medio de acuerdos comerciales no ha logrado plantear un perfil de especialización diferente, y sí con efectos levemente positivos, limitados y concentrados en las principales economías de la región. Para lograr mejores resultados, se identifica como desafío la coordinación de políticas que promuevan el crecimiento de la demanda intrarregional en conjunto con políticas que guíen las economías de aglomeración, a los fines de un reparto más equitativos de la participación en las etapas productivas y los ingresos derivados. Abstract: This article analyses how Latin America fits into global and regional production chains based on functional specialization. A database on income by occupation has been constructed and harmonized for seven nations in the region in order to conduct the analysis. A multi-country input-output approach was used in the methodology. The findings point to a manufacturing specialization profile based primarily on manufacturing tasks. The rare situations are focused in Brazil and Mexico, these countries are also involved in management and research and development. The findings imply that the general insertion of Latin America through trade agreements does not pose a different specialization profile. However, regional insertion had slightly positive effects, limited in magnitude and concentrated in the main economies of the region. To achieve better results, the challenge is to coordinate policies that promote the growth of intra-regional demand with policies that guide agglomeration economies, for the purpose of a more equitable distribution of participation in the productive stages and derived income. |
| Keywords: | cadenas globales de valor, integración, comercio de tareas, especialización funcional, Latinoamérica., ocupaciones laborales (es)global value chains, integration, trade in tasks, functional specialization, Latin America, labor occupations (en) |
| JEL: | F14 F59 O18 O54 |
| Date: | 2022–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:col:000418:020652&r=hme |
| By: | Noortje van Amsterdam; Dide van Eck (KU Leuven - Catholic University of Leuven - Katholieke Universiteit Leuven); Katrine Meldgaard Kjær; Margot Leclair (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique); Anne Theunissen; Maryse Tremblay; Alistair Thomson; Ana Paula Lafaire; Anna Brown; Camilla Quental; Marjan de Coster (KU Leuven - Catholic University of Leuven - Katholieke Universiteit Leuven); Alison Pullen |
| Abstract: | In this paper, we offer a collective, multi-vocal reflection on using poetry for research purposes. These were reflections on an online sub-plenary session organized as a workshop, which was held at the European Group for Organization Studies conference in 2021. During this workshop, the first three authors presented a step-by-step method for doing poetic inquiry and invited participants to apply it to their own empirical data or research praxis. The method was created in response to the marginalization of affect and embodiment in mainstream research in organization studies. Poetic inquiry aims to formulate specific practices of "writing differently" that assist researchers in their attempts to analyze and articulate their findings in embodied and affective ways. In this paper, we describe the method and bring together multi-vocal reflections from the participants and organizers of the workshop on the affects of poetic inquiry and the (ethical) questions that it poses. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04006035&r=hme |
| By: | María Agostina Zulli; Francesco Giovanni Angeli; Alejandro Danon; Ana Carolina Ortega Masagué |
| Keywords: | Gender gap, CODIV-19, Academic publications |
| JEL: | B54 J24 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4532&r=hme |