nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2023‒08‒28
twelve papers chosen by
Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza”

  1. Socioeconomic agents as active matter in nonequilibrium Sakoda-Schelling models By Ruben Zakine; Jerome Garnier-Brun; Antoine-Cyrus Becharat; Michael Benzaquen
  2. The Homer economicus narrative: from cognitive psychology to individual public policies By Guilhem Lecouteux
  3. Aggregation of Information and Communications Industry and Self-organization Simulation Using an Agent-based Model (Japanese) By NAKAMURA Ryohei; NAGAMUNE Takeshi; HAYASHI Syuusei
  4. Basic income: conceptual elements and discussion By De Wispelaere, Jurgen; Farías, Consuelo
  5. Tracing Economic Policies to Ancient Indian Economic Ethics By Satish Y. Deodhar
  6. Qu’est-ce qu’un dirigeant de l’économie sociale et solidaire ? By Florian Bares
  7. Value-Based Governance as a Performance Element in Social and Solidarity Economy Organizations: A French Sustainable Post-Modern Proposal By Arnaud Lacan
  8. On the mathematics of the circular flow of economic activity with applications to the topic of caring for the vulnerable during pandemics By Aziz Guergachi; Javid Hakim
  9. Datalism and Data Monopolies in the Era of A.I.: A Research Agenda By Catherine E. A. Mulligan; Phil Godsiff
  10. Shannon entropy to quantify complexity in the financial market By Alexis Rodriguez Carranza; Jos\'e Luis Ponte Bejarano; Juan Carlos Ponte Bejarano; Segundo Eloy Soto Abanto
  11. What inflation disrupts? A comment on “Inflation – Pragmatics of money and inflationary sensoria” by Federico Neiburg By Jeanne Lazarus
  12. Long Tails, Automation and Labor By B. N. Kausik

  1. By: Ruben Zakine; Jerome Garnier-Brun; Antoine-Cyrus Becharat; Michael Benzaquen
    Abstract: How robust are socioeconomic agent-based models with respect to the details of the agents' decision rule? We tackle this question by considering an occupation model in the spirit of the Sakoda-Schelling model, historically introduced to shed light on segregation dynamics among human groups. For a large class of utility functions and decision rules, we pinpoint the nonequilibrium nature of the agent dynamics, while recovering the equilibrium-like phase separation phenomenology. Within the mean field approximation we show how the model can be mapped, to some extent, onto an active matter field description (Active Model B). Finally, we consider non-reciprocal interactions between two populations, and show how they can lead to non-steady macroscopic behavior. We believe our approach provides a unifying framework to further study geography-dependent agent-based models, notably paving the way for joint consideration of population and price dynamics within a field theoretic approach.
    Date: 2023–07
  2. By: Guilhem Lecouteux (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, COMUE UCA - COMUE Université Côte d'Azur (2015-2019))
    Abstract: A common narrative among some behavioural economists and policy makers is that experimental psychology highlights that individuals are more like Homer Simpson than the Mr Spock imagined by neoclassical economics, and that this justifies policies aiming to ‘correct' individual behaviours. This narrative is central to nudging policies and suggests that a better understanding of individual cognition will lead to better policy prescriptions. I argue that this Homer economicus narrative is methodologically flawed, and that its emphasis on cognition advances a distorted view of public policies consisting in fixing malfunctioning individuals, while ignoring the characteristics of the socio-economic environment that influence individuals' behaviours.
    Keywords: homo economicus, rational choice, replication crisis, behaviourally informed policy, Homer Simpson and Mr Spock
    Date: 2023
  3. By: NAKAMURA Ryohei; NAGAMUNE Takeshi; HAYASHI Syuusei
    Abstract: As a preliminary step to conducting a self-organization simulation of the concentration and dispersion of the information and communications industry, we will quantify the spatial concentration of the information and communications industry in large cities in Japan. Spatial analysis of the information and communications industry in Sapporo, Sendai, Hiroshima, and Fukuoka, which are regional core cities, in addition to the 23 wards of Tokyo, was conducted using Chocho data from the "Economic Census." As a result of detecting spatial autocorrelation in small area units in each city, hotspots indicating concentration of information and communications business establishments were detected in the city center of each city. At the same time, we were able to confirm the influence of the economy of agglomeration, which is the premise of the self-organization model, and also recognized that the information and communications industry is an industry that is suitable candidate for simulation of the self-organization phenomenon. Krugman (1996) first formulated the self-organization phenomenon in the city and clarified the emergence principle of the peripheral city, but it was limited to numerical simulation. After that, Kumar et al. (2007) used actual data to show the possibility of applying Krugman's self-organization model to predict the concentration and dispersion of firms. In this paper, we examined whether the self-organization model is effective for reproducing and predicting the accumulation and dispersion of the information and communications industry in Japanese cities by using the agent-based model.
    Date: 2023–08
  4. By: De Wispelaere, Jurgen; Farías, Consuelo
    Date: 2023–06–20
  5. By: Satish Y. Deodhar
    Abstract: Ancient Indian Treatises, History of Economic Thought, Vedas, Upanishads, Mahabharata, Ramayana, Arthashastra, Shukranitisara, Narada, Bhishma, Kautilya, Shukracharya, Science of Political Economy, Sanskrit.
    Abstract: Science without history is like a man without memory. The colossal history of India stores many ideas on economic ethics and public policy which have been forgotten in the course of time. This paper is an attempt to bring to the fore, contributions from ancient Indian treatises. In this context, the paper briefly summarizes alternative economic ideas such as communism, capitalism, and the holistic approach of ancient Indian writings. I discuss the idea of the welfare brick for an individual consisting of three dimensions – Purusharthas, Ashramas, and Varnas. Given the contours of the welfare brick, next I discuss the concept of state and its economic policies, followed by coverage of markets, prices, interest rates, and credit. Thereafter, I delve into treatment of land, property rights, and guilds and unions, with special attention to labour relations covered in Arthashastra and Shukranitisara. The penultimate section summarises the economic advice author of Shukrantisara offers to the head of a household. Finally, in concluding comments, I bring out the relevance of ancient Indian writings for modern times –both for pedagogy and economic policies.
    Date: 2023–08–10
  6. By: Florian Bares (PRINTEMPS - Professions, institutions, temporalités - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Cette contribution a pour but de faire un état de l'art sur le concept de « dirigeant de l'économie sociale et solidaire » et d'en proposer une analyse critique. De replacer l'émergence de ce concept dans le cadre de l'institutionnalisation du champ de l'économie sociale et solidaire et des luttes idéologiques qui l'ont accompagnée (Duverger, 2016). De s'interroger si ce concept de « dirigeant de l'ESS » témoigne d'un isomorphisme vers le secteur lucratif et/ou vers le secteur public, ou au contraire de l'affirmation d'une spécificité de l'économie sociale et solidaire (Bidet, 2003). Elle s'appuie sur une revue de littérature en cours (40 documents traités sur 140), un travail d'enquête auprès d'acteurs de la formation de l'ESS et de membres du CJDES (25 entretiens), ainsi que sur nos observations ethnologiques réalisées au cours de nos activités associatives salariées et bénévoles. Travaux qui s'inscrivent dans le cadre de notre thèse. Dans un premier temps, nous présenterons et proposerons une analyse critique du concept à partir de quatre approches théoriques identifiées dans la littérature. Dans un second temps nous chercherons, à comprendre en quoi l'émergence du concept de « dirigeant de l'ESS » s'inscrit ou non dans une forme d'isomorphisme avec le secteur lucratif ou le secteur public et en quoi l'utilisation de ce concept s'oppose ou non à celui « d'Entrepreneur Social.
    Keywords: association, économie sociale et solidaire, CJDES, dirigeant, coopérative, dirigeant de l'ESS
    Date: 2023–07–04
  7. By: Arnaud Lacan (KEDGE Business School [Marseille], AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article offers a general reflection on governance and managerial practices within a Social and Solidarity Economy (SSE) and suggests that in a time of profound socioeconomic change, it is in SSE companies' interest to establish global sustainable governance and responsible team management systems consistent with both the values structuring this domain as well as employee aspirations. This a French point of view with a sustainable dimension based on a literature review and on several published studies but not on an empirical approach. In a way it is an essay more than a demonstration. It is a proposal which could lead to methodological work. Here is a first step.
    Keywords: governance, management, SE, values, staff, sustainability
    Date: 2022–02
  8. By: Aziz Guergachi; Javid Hakim
    Abstract: We investigate, at the fundamental level, the questions of `why', `when' and `how' one could or should reach out to poor and vulnerable people to support them in the absence of governmental institutions. We provide a simple and new approach that is rooted in linear algebra and basic graph theory to capture the dynamics of income circulation among economic agents. A new linear algebraic model for income circulation is introduced, based on which we are able to categorize societies as fragmented or cohesive. We show that, in the case of fragmented societies, convincing wealthy agents at the top of the social hierarchy to support the poor and vulnerable will be very difficult. We also highlight how linear-algebraic and simple graph-theoretic methods help explain, from a fundamental point of view, some of the mechanics of class struggle in fragmented societies. Then, we explain intuitively and prove mathematically why, in cohesive societies, wealthy agents at the top of the social hierarchy tend to benefit by supporting the vulnerable in their society. A number of new concepts emerge naturally from our mathematical analysis to describe the level of cohesiveness of the society, the number of degrees of separation in business (as opposed to social) networks, and the level of generosity of the overall economy, which all tend to affect the rate at which the top wealthy class recovers its support money back. In the discussion on future perspectives, the connections between the proposed matrix model and statistical physics concepts are highlighted.
    Date: 2023–07
  9. By: Catherine E. A. Mulligan; Phil Godsiff
    Abstract: The increasing use of data in various parts of the economic and social systems is creating a new form of monopoly: data monopolies. We illustrate that the companies using these strategies, Datalists, are challenging the existing definitions used within Monopoly Capital Theory (MCT). Datalists are pursuing a different type of monopoly control than traditional multinational corporations. They are pursuing monopolistic control over data to feed their productive processes, increasingly controlled by algorithms and Artificial Intelligence (AI). These productive processes use information about humans and the creative outputs of humans as the inputs but do not classify those humans as employees, so they are not paid or credited for their labour. This paper provides an overview of this evolution and its impact on monopoly theory. It concludes with an outline for a research agenda for economics in this space.
    Date: 2023–07
  10. By: Alexis Rodriguez Carranza; Jos\'e Luis Ponte Bejarano; Juan Carlos Ponte Bejarano; Segundo Eloy Soto Abanto
    Abstract: In this paper we study the complexity in the information traffic that occurs in the peruvian financial market, using the Shannon entropy. Different series of prices of shares traded on the Lima stock exchange are used to reconstruct the unknown dynamics. We present numerical simulations on the reconstructed dynamics and we calculate the Shannon entropy to measure its complexity
    Date: 2023–07
  11. By: Jeanne Lazarus (CSO - Centre de sociologie des organisations (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)
    Keywords: Inflation, poverty
    Date: 2023
  12. By: B. N. Kausik
    Abstract: A central question in economics is whether automation will displace human labor and diminish standards of living. Whilst prior works typically frame this question as a competition between human labor and machines, we frame it as a competition between human consumers and human suppliers. Specifically, we observe that human needs favor long tail distributions, i.e., a long list of niche items that are substantial in aggregate demand. In turn, the long tails are reflected in the goods and services that fulfill those needs. With this background, we propose a theoretical model of economic activity on a long tail distribution, where innovation in demand for new niche outputs competes with innovation in supply automation for mature outputs. Our model yields analytic expressions and asymptotes for the shares of automation and labor in terms of just four parameters: the rates of innovation in supply and demand, the exponent of the long tail distribution and an initial value. We validate the model via non-linear stochastic regression on historical US economic data with surprising accuracy.
    Date: 2023–07

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