nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2023‒10‒30
six papers chosen by
Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza”

  1. A Classical Marxian Two-Sector Endogenous Cycle Model: Integrating Marx, Dutt, and Goodwin By Cajas Guijarro, John
  2. Utility of sacrifices: Reorientation of the utility theory By GC, Arun
  3. Bottom-up Policies Trump Top-down Missions By Henrekson, Magnus; Stenkula, Mikael
  4. "Community Voices and Financial Choices: Unravelling the Impact of Representation on Rural Cooperative Banks" By Amoako, Frimpong; Asuamah Yeboah, Samuel
  5. Wage labor and social inequality in Kinshasa's informal economy: A class analysis By Héritier Mesa
  6. Austerity and the shaping of the ‘waste watching’ health professional: A governmentality perspective on integrated care policy By Kendrick, Hannah; Mackenzie, Ewan

  1. By: Cajas Guijarro, John
    Abstract: This paper introduces a Classical Marxian Two-Sector Endogenous Cycle (CMTSEC) model, merging Dutt's (1988) two-sector model of Classical convergence with labor dynamics inspired by Goodwin (1967) and an endogenous labor supply inspired by Harris (1983). Empirical support fortifies these assumptions. Utilizing the Hopf bifurcation theorem and numerical simulations, we demonstrate the model's capacity to produce stable limit cycles encompassing wage share, employment rate, and sectoral capital distribution. Notably, sectoral profit rates exhibit cyclic fluctuations, prompting a reevaluation of long-run equilibrium. The model underscores the role of investment sensitivity to sectoral profit rate disparities in determining cycle stability. Hence, the CMTSEC model extends Goodwin’s (1967) endogenous cycle model, encapsulating the conflict between capital and labor while delving into the intricate dynamics of capitalist reproduction in a two-sector economy.
    Keywords: two-sector model; labor market dynamics; endogenous cycles; sensitivity of investment to profit rate differentials; long-run equilibrium
    JEL: C61 E11 E32 O41
    Date: 2023–09–22
  2. By: GC, Arun
    Abstract: Utility theory is a pivotal concept in economics that provides insights into how an individual is motivated to act under budget constraints. The main assumption of this theory and the entire field of economics is that a rational human being and an individual derive utility from the consumption of goods and services under given budget constraints. The aim of this article is to explore these fundamental assumptions and introduce a new theoretical framework for deriving utility, which is termed the “utility of sacrifices”. Various methods were employed in the study, including a review of existing literature, an analysis of prevailing theories, and observations in real-world scenarios. The results show that, through observations, a “rational” human being derives utility from both consumption and voluntary sacrifices. Therefore, in conclusion, it is proposed that the total utility of an individual is the sum of these two components. This theoretical framework provides a more comprehensive understanding of human decision-making and behavior in economics. It also provides novel insights for future research and applications in economics.
    Keywords: utility; consumption; sacrifices; decision making; behavior
    JEL: B41 B5 B50 D1 D11
    Date: 2023–05
  3. By: Henrekson, Magnus (Research Institute of Industrial Economics); Stenkula, Mikael (IFN - Research Institute of Industrial Economics)
    Abstract: Mission-oriented innovation policies are becoming increasingly popular among policymakers and scholars. We maintain that these policies are based on an overly mechanistic view of innovation and economic growth, suggesting that a more bottom-up approach is called for. By invoking an entrepreneurial ecosystem perspective, we point out that innovative entrepreneurship requires many other actors—besides the entrepreneur—whose skills and abilities are necessary to realize an entrepreneurial project. When mission-oriented policies play a large role in the economy, connections between actors in the ecosystem risk becoming distorted. A functioning and well-balanced entrepreneurial ecosystem requires instead an institutional framework that levels the playing field for potential entrepreneurs and encourages productive entrepreneurship. To promote this kind of system, we discuss in more detail eight key areas where appropriate horizontal or bottom-up policy measures can foster innovation and, in the end, the welfare-enhancing productive entrepreneurship policymakers and scholars strive for.
    Keywords: collaborative innovation bloc, entrepreneurial ecosystem, entrepreneurship policy, institutions, public choice
    JEL: H50 L26 O31 P16
    Date: 2023–09
  4. By: Amoako, Frimpong; Asuamah Yeboah, Samuel
    Abstract: The study investigates the critical role of community representation within Rural Cooperative Banks (RCBs) and its influence on key decision-making processes, specifically, pertaining to financial policies, lending practices, and resource allocation. As RCBs play a pivotal role in providing financial services to local communities, understanding the dynamics of community representation within these institutions is essential. Through a comprehensive examination of the interactions between community voices and RCB operations, this research sheds light on whether and how local perspectives shape the accessibility of financial services for rural populations. By exploring the intricate relationship between representation and decision-making, this study contributes valuable insights to enhance the effectiveness of RCBs in serving their communities and promoting financial inclusivity.
    Keywords: Community representation, Rural Cooperative Banks (RCBs), Decision-making processes, Financial policies, Lending practices, Resource allocation, Financial services, Rural communities, Access to finance, Financial inclusivity
    JEL: G21 G28 O16 P25 R12
    Date: 2023–05–07
  5. By: Héritier Mesa
    Abstract: This article explores the social trajectories of some “informal workers” and the dynamics of inequality they highlight. The study investigates how the structure of labor relations reveal class relations and unequal social positionalities more broadly within the informal economy. The research draws from ethnographic data collected about three forms of income-generating activities in Kinshasa: street bread, second-hand clothing, and urban agriculture. While access to capital offers some the opportunity to successfully develop a profitable income-generating activity, the limited access to various forms of capital constrains many to sell their labor power—often with weakened bargaining power—to those in possession of capital. Conversely, some actors have successfully overcome the constraint of the forms of asymmetric labor relations within the informal economy and secured a relatively decent living despite their precarious position.
    Keywords: Democratic Republic of Congo; informal economy; Kinshasa; labor; social class; social inequality
    Date: 2022–09–01
  6. By: Kendrick, Hannah; Mackenzie, Ewan
    Abstract: Discussion related to the boundary between health and social care has existed in the United Kingdom (UK) since the inception of the English National Health Service (NHS), with successive governments outlining a desire to ‘integrate’ care. Globally, high-income, and low- and middle-income countries, are increasingly advocating integrated care (IC) as a solution to financial and quality issues. Recent research has argued that IC policy works discursively to manage tensions between competing policy aims, facilitating the continuation of austerity measures and the fragmentation of health and social care services. This paper extends this debate by moving beyond the discursive realisation of IC policy in official governmental texts to instead investigate its reception among practitioners ‘on the ground’. By complementing the perspective of governmentality with Fairclough's (2008) Dialectical Relational Approach (DRA), our paper exposes shifting articulations and enactments of IC policy discourse as it moves through implementation in a community based integrated care service (CBIC) in England. Faced with the material reality of funding cuts to the service, integrated care is reformulated from ‘transformational change’ to the responsibilisation of ‘ideal integrated workers’ tasked with eliminating ‘waste’. Whilst frontline staff strongly resisted these subjectivities, they were ultimately subject to the harmful material effects of austerity politics with little in the way of positive change for patient care.
    Keywords: integrated care policy; governmentality; critical discourse analysis; lean; austerity; health and social care; healthcare workers
    JEL: J1
    Date: 2023–06–01

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