nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2023‒08‒14
sixteen papers chosen by
Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza”

  1. The Economics of Wellbeing and Psychology: An Historical and Methodological Viewpoint By Drakopoulos, Stavros A.
  2. Masculinities & paid domestic-care labour in India By Chambers, Thomas; Grover, Shalini
  3. The Marginal Revolution in the light of Foucault's typology of epistemes By Clémence Thebaut
  4. The (Ir)Relevance of the Cooperative Form By Tirole, Jean; Moisson, Paul-Henri; Dubois, Pierre
  5. Role of a support system dedicated to the emergence of social innovation projects: action research in a “territory lab”. By Guillaume Denos
  6. Physics-inspired analysis of the two-class income distribution in the USA in 1983-2018 By Victor Yakovenko; Danial Ludwig
  7. Growth and sustainability in post-Keynesian perspective: Some notes By Heise, Arne
  8. Evolutionary Economic Policy and Competitiveness By Michael Peneder
  9. Statistical Physics Perspective on Economic Inequality By Victor M. Yakovenko
  10. 10$ a ton of carbon ? The Stern-Nordhaus Controversy : Methodological and Ethical Issues By Mathieu Guigourez
  11. “Co-construction” in Deliberative Democracy: Lessons from the French Citizens’ Convention for Climate By Louis-Gaëtan Giraudet; Bénédicte Apouey; Hazem Arab; Simon Baeckelandt; Philippe Begout; Nicolas Berghmans; Nathalie Blanc; Jean-Yves Boulin; Eric Buge; Dimitri Courant; Amy Dahan; Adrien Fabre; Jean-Michel Fourniau; Maxime Gaborit; Laurence Granchamp; Hélène Guillemot; Laurent Jeanpierre; Hélène Landemore; Jean-François Laslier; Antonin Macé; Claire Mellier; Sylvain Mounier; Théophile Pénigaud; Ana Povoas; Christiane Rafidinarivo; Bernard Reber; Romane Rozencwajg; Philippe Stamenkovic; Selma Tilikete; Solène Tournus
  12. An Approach Towards Integrating Preference Formation Into Economic Theory By Marek Jenöffy-Lochau
  13. Conflict inflation and autonomous demand: a supermultiplier model with endogenous distribution By Guilherme Spinato Morlin; Riccardo Pariboni
  14. Political Economy shaped by Financialization By Saori Katada
  15. A Seesaw Model of Choices By Marek Jenöffy
  16. Mujeres y ¿desarrollo? Características, Obstáculos, Beneficios y Paradojas de la Participación de las Mujeres en el Mundo de la Producción By Carina Borrastero; María Celeste Gómez; Ana Viganó; Lucila Irazoqui; Delfina Pons Guisiano

  1. By: Drakopoulos, Stavros A.
    Abstract: Job satisfaction and life satisfaction research (economics of wellbeing) is an established and booming research field. However, until the late 1970s, the study of the impact of economic variables on subjective wellbeing was considered to be outside the domain of economics. The main reason was the methodological hostility of orthodox economists towards incorporating "subjective" and "psychological" variables. The legacy of economics as a positive social science that dealt with observed or revealed behavior only, was a major obstacle for economists to study subjective wellbeing. The main exception was the pioneering work of Richard Easterlin in 1974, who attempted to account for the discrepancy between income increases and overall life satisfaction. Opening up the communication of economists with psychologists in happiness research, Easterlin relied on references from psychology and especially from social psychology in order to construct his arguments. Influenced by Easterlin, references to theoretical and empirical work in psychology became more apparent when happiness economics attracted more interest by the end of the 20th century. After showing its rich historical past of interaction with psychology, the paper argues that this stance is contrary to the established mainstream tradition and methodology. Further, it demonstrates that leading figures of happiness economics adopt a conscious methodological position towards interacting with psychology, and this puts them at odds with the mainstream economics methodological approach. It is also argued that the economics of happiness attitude towards psychology is linked to other important differences of methodological nature. The paper identifies three major points of diversion: utility cardinality and comparability, empirical methodology, and the specification of agents’ utility function and the ensuing policy implications.
    Keywords: Economics and Psychology; Economics of Wellbeing; Economic Methodology; History of Economic Thought
    JEL: B20 B40 I30
    Date: 2023–07
  2. By: Chambers, Thomas; Grover, Shalini
    Abstract: This article focuses on male domestic-care workers (MDCWs) in India. It explores how constructed notions of masculinity interplay with labour market structures, enable forms of labour discipline and shape labour subjectivities. The article details performative and embodied gendered practices engaged in by MDCWs, illuminates the interplay of spatial and temporal aspects of paid domestic-care work with gendered skill sets and labour roles, and connects the differentiated masculinities performed by MDCWs to the broader political economy of domestic-care labour. It also highlights how MDCWs utilise their gender to express degrees of agency vis-à-vis employers and others. The article argues that MDCWs perform masculinities in variegated ways in the face of stigma, marginalisation, and relations of servitude. These performances are not devoid of agency, but are commoditised within the political economy of the domesticcare sector and are framed within patriarchal gender norms as ‘protective care’ or as work requiring other masculine attributes.
    Keywords: paid domestic labour; care work; gender; masculinities; India
    JEL: J1 R14 J01
    Date: 2023–07–01
  3. By: Clémence Thebaut (NET - Neuroépidémiologie Tropicale - CHU Limoges - Institut d'Epidémiologie Neurologique et de Neurologie Tropicale - INSERM - Institut National de la Santé et de la Recherche Médicale - GEIST - Institut Génomique, Environnement, Immunité, Santé, Thérapeutique - UNILIM - Université de Limoges, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, PSL - Université Paris sciences et lettres, UNILIM - Université de Limoges)
    Abstract: Objective: We seek here to draw on the methods and tools put forward by Michel Foucault in The Order of the Things (1966) to shed light on history of welfare economics. More specifically we consider that the rejection of interpersonal comparisons that foreshadowed the marginalist revolution and the transition to ordinal measures of utility during the 19th century can be explained by the shift from the classical episteme to a modern episteme which is described by Foucault. Method: To explore this hypothesis, we drawn on the method of archaeological knowledge, proposed by Foucault (1966, 1969). We started by building a corpus using an incremental research strategy (the "snowball" method), starting from first bibliographic reference on history of welfare economics Baujard (2013, 2014). Then, we study the various statements within a corpus, in order to identify regularities and turning points both in semantics and concepts, so as to compare discourse "styles". Unlike other approaches in social sciences, the method of knowledge archaeology consists in analysing scientific discourses in themselves, outside the social, economic and political context that led them to emerge. Results: Using this methodology, we first examine to what extent the early utilitarianism is typical of the classical episteme as described by Foucault, which entails (i) the use of a mechanistic framework, (ii) the use of mathematics and more generally (iii) an effort to classify different entities. Second we examined how the rejection of interpersonal comparisons in the marginalist literature and the transition to ordinal utilities could be typical of the modern episteme, through the development of positivist stand and transcendental function of the notion of utility.
    Abstract: Cet article s'inscrit dans le cadre d'un projet de recherche visant à mobiliser les méthodes et outils proposés par Michel Foucault pour apporter un éclairage sur un ensemble de discussions que soulève l'évaluation économique en santé. Nous nous intéressons ici à l'ancrage épistémologique des méthodes de révélation des préférences individuelles issues de l'économie du bien-être, qui sont aujourd'hui utilisées pour valoriser les bénéfices en santé, en nous appuyant sur la typologie des épistémès de Foucault dans les Mots et les choses. Plus précisément, nous envisageons que le rejet des comparaisons interpersonnelles, que préfigure la révolution marginaliste et la transition vers une mesure ordinale des utilités, s'explique par le passage d'une épistémè classique à une épistémè moderne. La question du caractère cardinal ou ordinal de la mesure de l'utilité reste centrale pour l'évaluation économique en santé. En effet, les méthodes d'évaluation des bénéfices en santé, notamment au moyen des QALY, se rapprochent d'une mesure cardinale, contrairement au paradigme de la nouvelle économie du bien-être dans lequel elle est censée s'inscrire.
    Keywords: JEL Classification: B12, D61, D63, I10 Welfare economics, Health economic evaluation, Epistemology, Foucault
    Date: 2023–06–24
  4. By: Tirole, Jean; Moisson, Paul-Henri; Dubois, Pierre
    Abstract: It is puzzling that cooperatives, which stand for the interests of their users, do not occupy more space in the market for corporate forms. This paper unveils a new impediment to their formation. It shows that equilibrium free-riding handicaps cooperatives in their competition with alternative institutions, notably the for-profits. The irrelevance of cooperatives is a remarkably robust result. The paper then analyzes desirable government interventions in the corporate market.
    Keywords: Cooperatives; free-riding; competing corporate forms
    JEL: D23 D71 D8 L22
    Date: 2023–07–03
  5. By: Guillaume Denos (IAE Angers - Institut d'Administration des Entreprises (IAE) - Angers - UA - Université d'Angers, GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)
    Abstract: This article examines the role that sociomaterial systems can play in the dynamics of the emergence of social innovations within territories. The articulation of the theoretical frameworks of social innovation, neo-institutionalism and management tools is exposed and used for the analysis of Popcorn, a support system created in Nantes in France. Exploring the conception and use of this system, which tends to spread to neighbouring territories, allows us to understand their role as structuring intermediaries and their potential in making each territory spaces for social experimentation.
    Abstract: Cet article interroge le rôle que peuvent jouer les dispositifs sociomatériels dans la dynamique d'émergence d'innovations sociales sur les territoires. L'articulation des cadres théoriques de l'innovation sociale, du néo-institutionnalisme et des outils de gestion est exposée puis utilisée pour l'analyse du dispositif Popcorn, à Nantes dans la Loire-Atlantique. L'exploration de la conception et de l'usage de ce dispositif, qui tend à s'essaimer dans les territoires voisins, permet d'entrevoir les rôles d'intermédiaires structurants des dispositifs et leur participation à faire de chaque territoire des espaces d'expérimentations sociales.
    Keywords: Innovation sociale, Territoire, Dispositif, Recherche-action
    Date: 2022–12–30
  6. By: Victor Yakovenko (University of Maryland); Danial Ludwig (University of Maryland)
    Abstract: The first part of this paper is a brief survey of the approaches to economic inequality based on ideas from statistical physics and kinetic theory. These include the Boltzmann kinetic equation, the time-reversal symmetry, the ergodicity hypothesis, entropy maximization, and the Fokker-Planck equation. The origins of the exponential Boltzmann-Gibbs distribution and the Pareto power law are discussed in relation to additive and multiplicative stochastic processes. The second part of the paper analyzes income distribution data in the USA for the time period 1983-2018 using a two-class decomposition. We present overwhelming evidence that the lower class (more than 90% of the population) is described by the exponential distribution, whereas the upper class (about 4% of the population in 2018) by the power law. We show that the significant growth of inequality during this time period is due to the sharp increase in the upper-class income share, whereas relative inequality within the lower class remains constant. We speculate that the expansion of the upper-class population and income shares may be due to increasing digitization and non-locality of the economy in the last 40 years.
    Keywords: econophysics, economic inequality, Boltzmann–Gibbs distribution, Pareto power law, two-class society, stochastic processes
    JEL: D31 N32 D63 H24
    Date: 2023–07
  7. By: Heise, Arne
    Abstract: It can hardly be denied that perhaps the most serious challenge to mankind has not yet been addressed properly by post-Keynesianism: the over-stretching of our planetary boundaries. Most of the resources which we need to sustain our lives are non-renewable and, therefore, limited. And most of our production processes produce some kind of joint product (externality) like air, ground or water pollution which hold no value to the producer and instead harm the environment upon disposal. Consequently, the existence of mankind on this planet may be threatened when indispensable resources such as energy are running out and the environmental damage changes our living conditions in a way that mankind cannot survive.
    Keywords: Ecological crisis, monetary production economy, zero growth, stagnation, growth imperative
    JEL: B59 E12 P18 Q50
    Date: 2023
  8. By: Michael Peneder
    Abstract: This paper advances a dynamic rationale for competitiveness policy that focuses on an economy's ability to evolve in order to achieve high real incomes along with desired qualitative changes in the socio-economic system. It highlights that the ubiquitous "rationalities of failure", either of markets, governments, or systems, are rooted in a peculiar habit of accepting hypothetical perfect states as normative benchmarks. In contrast, competitiveness policy starts from the objectives that the system wants to achieve. By combining the structuralist ontology of the micro, meso and macro levels of development with the basic system functions of evolutionary change, a general typology is developed that differentiates, organizes, and integrates various economic policies according to their respective contributions to the evolvability of the system. Among other advantages, the proposed concept of competitiveness policy allows (i) to replace the negative "logic of failure" with the active pursuit of dynamic development goals, (ii) to break the ideologically afflicted dichotomy between "vertical" and "horizontal" policies and (iii) to better align the theoretical rationale with the actual perception of the societal purpose of public interventions by most policy agents.
    Keywords: Austrian economics, Digitization, central bank digital currency (CBDC), crypto coins, currency competition, evolution of money, general ledger
    Date: 2023–07–24
  9. By: Victor M. Yakovenko
    Abstract: This article is a supplement to my main contribution to the Routledge Handbook of Complexity Economics (2023). On the basis of three recent papers, it presents an unconventional perspective on economic inequality from a statistical physics point of view. One section demonstrates empirical evidence for the exponential distribution of income in 67 countries around the world. The exponential distribution was not familiar to mainstream economists until it was introduced by physicists by analogy with the Boltzmann-Gibbs distribution of energy and subsequently confirmed in empirical data for many countries. Another section reviews the two-class structure of income distribution in the USA. While the exponential law describes the majority of population (the lower class), the top tail of income distribution (the upper class) is characterized by the Pareto power law, and there is no clearly defined middle class in between. As a result, the whole distribution can be very well fitted by using only three parameters. Historical evolution of these parameters and inequality trends are analyzed from 1983 to 2018. Finally, global inequality in energy consumption and CO2 emissions per capita is studied using the empirical data from 1980 to 2017. Global inequality, as measured by the Gini coefficient G, has been decreasing until around 2010, but then saturated at the level G=0.5. The saturation at this level was theoretically predicted on the basis of the maximal entropy principle, well before the slowdown of the global inequality decrease became visible in the data. This effect is attributed to accelerated mixing of the world economy due to globalization, which brings it to the state of maximal entropy and thus results in global economic stagnation. This observation has profound consequences for social and geopolitical stability and the efforts to deal with the climate change.
    Date: 2023–07
  10. By: Mathieu Guigourez (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The Stern-Nordhaus controversy has been emblematic of the economic and ethical debate around the formulation of a discount rate and a carbon price. The aim of this article is to study this controversy in order to shed light on the epistemological and ethical postulates implicitly accepted by the two economists in their work, and more broadly in the integrated models concluding to a social cost of carbon. These implicitly accepted postulates are 1) the comprehension of economic rationality solely as the maximization of expected utility, and 2) a consequentialist point of view. The latter compartmentalize the scope of the ethical debate into cleavages over the formulation of an optimal discount rate. This article aims to broaden the ethical debate around these integrated models by questioning the implicit normativity of how economic rationality is at play in these models and proposes a new way of conceiving individual responsibility in regard to climate change.
    Keywords: Integrated Assessment Models, Economic Rationality, Discount Rate, Social Cost of Carbon, Individual Responsibility, Philosophy of Economics, Expected utility
    Date: 2023–05
  11. By: Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Bénédicte Apouey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Hazem Arab (UP1 - Université Paris 1 Panthéon-Sorbonne); Simon Baeckelandt (CERAPS - Centre d'Etudes et de Recherches Administratives, Politiques et Sociales - UMR 8026 - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Philippe Begout; Nicolas Berghmans (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris); Nathalie Blanc (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité); Jean-Yves Boulin (IRISSO - Institut de Recherche Interdisciplinaire en Sciences Sociales - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Eric Buge (IMV - Institut Michel Villey pour la Culture Juridique et la Philosophie du Droit - Université Paris-Panthéon-Assas); Dimitri Courant (UNIL - Université de Lausanne = University of Lausanne, CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, Harvard University); Amy Dahan (CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Adrien Fabre (ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]); Jean-Michel Fourniau (Université Gustave Eiffel); Maxime Gaborit (CEE - Centre d'études européennes et de politique comparée (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Laurence Granchamp (LINCS - Laboratoire interdisciplinaire en études culturelles - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique); Hélène Guillemot (CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Laurent Jeanpierre (CESSP - Centre européen de sociologie et de science politique - UP1 - Université Paris 1 Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Hélène Landemore (Yale University [New Haven]); Jean-François Laslier (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Antonin Macé (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Claire Mellier (Cardiff University); Sylvain Mounier; Théophile Pénigaud (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS de Lyon - École normale supérieure de 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); Ana Povoas (ULB - Université libre de Bruxelles); Christiane Rafidinarivo (LCF - Laboratoire de recherches sur les espaces créoles et francophones - UR - Université de La Réunion, CEVIPOF - Centre de recherches politiques de Sciences Po (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Bernard Reber (CEVIPOF - Centre de recherches politiques de Sciences Po (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Romane Rozencwajg (Cresppa-LabToP - Laboratoire Théories du politique : pouvoir et relations sociales - CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Philippe Stamenkovic (BGU - Ben-Gurion University of the Negev); Selma Tilikete (Cresppa-CSU - Cultures et sociétés urbaines - CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique, EHESS - École des hautes études en sciences sociales); Solène Tournus (CNRS - Centre National de la Recherche Scientifique)
    Abstract: Launched in 2019, the French Citizens' Convention for Climate (CCC) tasked 150 randomly-chosen citizens with proposing fair and effective measures to fight climate change. This was to be fulfilled through an "innovative co-construction procedure, " involving some unspecified external input alongside that from the citizens. Did inputs from the steering bodies undermine the citizens' accountability for the output? Did co-construction help the output resonate with the general public, as is expected from a citizens' assembly? To answer these questions, we build on our unique experience in observing the CCC proceedings and documenting them with qualitative and quantitative data. We find that the steering bodies' input, albeit significant, did not impair the citizens' agency, creativity and freedom of choice. While succeeding in creating consensus among the citizens who were involved, this co-constructive approach however failed to generate significant support among the broader public. These results call for a strengthening of the commitment structure that determines how follow-up on the proposals from a citizens' assembly should be conducted.
    Keywords: Citizens’ assemblies, Climate assemblies, Deliberative democracy, Co-construction, Carbon tax, Referendum
    Date: 2022–06
  12. By: Marek Jenöffy-Lochau (Büro am Carlsplatz)
    Abstract: The concept of 'preferences' is a cornerstone of economic theory. However, the question whether or how preferences accrue has not been discussed in economic literature so much. Kirchgässner suggested that this happens during a 'phase of socialisation' of an individual. Discussing the topic 'preferences, ' leads to several contradictions and unanswered questions. I show a path how to address the topic and present a first step towards an economic 'theory of persuasive rhetoric' that Galperti recently requested.
    Keywords: Preferences, Preference Formation, Information, Communication, Persuasion, Economic Methodology
    Date: 2023–06–23
  13. By: Guilherme Spinato Morlin; Riccardo Pariboni
    Abstract: The disciplinary role of unemployment has long been acknowledged in economic theory. Seminal works on conflict inflation have included the unemployment rate as a determinant of workers’ bargaining power, which thus affects distribution and inflation (Rowthorn, 1977). In extensions to the long run, however, conflict inflation models have shifted away from this analytical approach and replaced the unemployment rate with the rate of change in unemployment as a determinant of workers’ claim (Cassetti, 2002; Lavoie, 2022). A similar approach is found in Nah and Lavoie (2019), who introduced conflict inflation in an autonomous demand-led growth model in which the unemployment rate – contrarily to empirical evidence – has no permanent effect on wage claims and income distribution We propose here an alternative way to combine conflict inflation and autonomous demand-led growth in a Sraffian supermultiplier model. We introduce the unemployment rate as a determinant of workers’ claim in a conflicting claims model. Modeling of the labor market relies on an endogenous adjustment of labor supply to demand (Fazzari, Ferri, and Variato, 2020). We extend the typical results of short-run conflict inflation models to the long run, finding that high (low) unemployment rate reduces (increases) both the equilibrium wage share and conflict inflation. By incorporating income distribution as an endogenous factor through a conflicting claims process, we establish a direct relationship between the growth rate of autonomous demand and the wage share. This relation discloses a conflict underlying the determinants of autonomous demand growth. We conclude that in the political economy of growth and distribution it is crucial to consider the impact of autonomous demand growth on workers’ bargaining power and income distribution
    Keywords: Phillips curve; Sraffian supermultiplier; demand-led growth; autonomous demand; inflation; distributive conflict.
    JEL: B51 E11 E24 E31 O41
    Date: 2023–06
  14. By: Saori Katada (USC - University of Southern California)
    Abstract: Financialization has, in the last several decades, touched many aspects of political economy, intensified politics of distribution and redefined power struggles around the world. Nonetheless, the style and types of financialization and its manifestation in both domestic politics and foreign policy vary greatly among different economies depending on financialization and the important role of financialized wealth both to sustain corporations and savers (especially in rapidly aging population like Japan for the pensioners). Despite its comparatively low level of financialization among the OECD members, the phenomenon have had visible influence in shaping the Japanese government's role both in its monetary policy through the Bank of Japan (BOJ) and for its external geoeconomic strategy of infrastructure investment financing in competition with China's Belt-and-Road Initiative (BRI) since 2013. I argue in this report that due to the rising level of financialization, the Japanese government has faced increased pressure to adjust its policies to accommodate the demands of market-based financial interest, on the one hand, and to direct the country's financial power for its foreign policy goals, on the other hand. The developmental legacy of Japan's institutions, however, continues to influence the government's financial strategy.
    Keywords: Financialization, monetary policy, infrastructure investment, Japan, OECD, derisking
    Date: 2023–05
  15. By: Marek Jenöffy (Büro am Carlsplatz)
    Abstract: In 2019, Galberti called for the formulation of a theory of "how decision makers change worldviews." He was looking for a "theory of persuasive rhetoric" that goes "beyond Bayesianism." In this field, there is insight of ancient rhetoric, and empirical results of modern communications research. I discuss these results and extract possible variables for a theory of persuasive rhetoric. I model a decision as a seesaw. Seesaws follow the principle of the lever. The model explains why the assumption of constant preferences in economic models often makes sense.
    Keywords: Preferences, Formation, Information
    Date: 2023–06–21
  16. By: Carina Borrastero (UNC-CONICET); María Celeste Gómez (UNC-CONICET); Ana Viganó (UNC); Lucila Irazoqui (UNC); Delfina Pons Guisiano (UNC)
    Abstract: Proponemos una revisión crítica de literatura sobre el rol de las mujeres en el campo productivo y empresarial, los obstáculos a la igualdad de género que allí se identifican y los beneficios económicos de una mayor y mejor participación femenina en determinados sectores, espacios de decisión, y en los procesos de desarrollo en general. En particular, nos planteamos el objetivo de dilucidar qué ocurre y qué se dice de las dimensiones de género en el ámbito de la industria, los procesos de industrialización y el desarrollo industrial. Observamos que se trata de un conjunto de problemas que no ha sido suficientemente analizado, siquiera abordado, en la literatura económica con perspectiva de género, pese a la notablemente baja participación femenina en dicho ámbito donde, a su vez, se encuentra una porción importante de los empleos más calificados, formalizados y mejor remunerados. En función de ello revisamos, por un lado, contribuciones referidas específicamente a dimensiones de género en la industria. Al mismo tiempo, sistematizamos aportes vinculados a aspectos comunes de la generización de los roles económicos, independientemente del sector que se analice, que constituyen las condiciones básicas de todo proceso de desarrollo industrial. Abordamos así siete ejes temáticos que permiten componer un cuadro general del papel de las mujeres y los obstáculos a su crecimiento en nuestro campo de interés: las mujeres y las brechas de género en la industria, las relaciones entre género e innovación en las empresas, la segregación horizontal y las características de mercados laborales generizados, el techo de cristal y el desempeño de las firmas, el rol productivo de las mujeres y el desarrollo macroeconómico, claves del empoderamiento femenino, y la agenda de género en los organismos internacionales dedicados al desarrollo económico. Revisamos textos seleccionados y, adicionalmente, para cada eje de análisis reportamos algunos datos que permiten dimensionar en términos generales el problema de estudio. Destacan como problemáticas la baja participación femenina en las industrias productoras de bienes y en los puestos corporativos jerárquicos, así como distintos efectos no deseados de los procesos de industrialización periférica para las mujeres, y algunas claves para la concepción de políticas industriales género-inclusivas para un desarrollo promotor de la autonomía de las mujeres. Concluimos señalando la necesidad de profundizar en investigaciones que apuesten a traducir autonomía femenina y eficiencia sistémica en un solo término sintético llamado desarrollo.
    Date: 2023–07

This nep-hme issue is ©2023 by Carlo D’Ippoliti. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.