nep-hme New Economics Papers
on Heterodox Microeconomics
Issue of 2024‒01‒01
thirteen papers chosen by
Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza”

  1. 상품에서 자산으로: 권력으로서의 자본과 금융의 존재론 By Suaste Cherizola, Jesús
  2. Is cohesive capitalism under threat? By Besley, Timothy
  3. Distribuição de renda, consumo e estrutura produtiva: uma análise a partir das matrizes de contabilidade social e financeira para a economia brasileira By Juliana Rodrigues Vieira; Gilberto de Assis Libânio; Débora Freire Cardoso
  4. Inflation is always and everywhere … a conflict phenomenon: Post-Keynesian inflation theory and energy price driven conflict inflation By Hein, Eckhard
  5. Economic growth, income distribution, and financial system: an analysis based on financial social accounting matrices for the brazilian economy By Juliana Rodrigues Vieira; Gilberto de Assis Libânio; Débora Freire Cardoso
  6. When Microeconomic Instruction Serves as Ideology By Jon D. Wisman; Michael Cauvel; Aaron Pacitti
  7. Reconciling the Just and Sustainable City in the Era of Just Transition: A Review of Urban Visions By Aurore Fransolet; Julien Vastenaekels
  8. Socioeconomic and spatially-explicit assessment of Nature-related risks: the case of South Africa By Paul HADJI-LAZARO; Julien CALAS; Antoine GODIN; Pamela SEKESE; Andrew SKOWNO
  9. The Financial Collapse of Capitalism. By Blaber, Richard Michael
  10. Intersectionality in Individual Choice Behavior: Pitfalls and Opportunities By Liqui-Lung, C.
  11. Institutional configurations in international investment research By Weber, Christopher; Mayer, Pascal
  12. On par: A Money View of stablecoins By Iñaki Aldasoro; Perry Mehrling; IDaniel H. Neilson
  13. המהפכה המשטרית" וקבוצות ההון הדומיננטיות" By Nitzan, Jonathan; Bichler, Shimshon

  1. By: Suaste Cherizola, Jesús
    Abstract: 자산은 자본가 계급의 실천 및 사고방식을 형성하는 데 결정적인 개념이다. 하지만 자본 주의에 관한 비판적 분석은 상품교환을 자본주의 분석의 초석이라 승인하는 경향이 있다. 이 논문은 다른 접근법을 취한다. 나는 자산이 자본주의에 대한 과학적 연구를 위한 견고한 출발점을 제공한다고 주장한다. 자산에 대한 분석은 경제적 거래에 대한 일반적 서술을 정 교화할 수 있도록 해주고, 그런 한에서, 자산 분석은 금융 분야를 재개념화하기 위한 기틀 을 마련해줄 수 있다. 이 두 가지 쟁점은 밀접히 연관된다. ‘자산이란 무엇인가’라는 질 문에 대한 답은 ‘금융이란 무엇인가’라는 질문을 해결할 수 있는 좌표를 제공해줄 것이 다. 저자 제수스 수아스테 체리졸라(JesÚs Suaste Cherizola)는 멕시코 푸에블라 오토노마 대학교(Universidad Autónoma de Puebla)에서 박사학위를 받았고, 권력자본 이론을 전공하는 사회학자이다. 저자는 이 논문을 통해 경제학과 사회과학에 새로운 아이디어를 제공한 기여로 2021 CASP Essay Prize를 수상했다. 따라서 제도주의 경제학 현장에서 이 논문이 지니는 학술적 가치가 높은 평가를 받았다고 볼 수 있다.
    Abstract: Translated by Yong-taek Jung (Korean): In this paper, the author analyzes the concept of 'assets', a crucial concept in the practice and mindset of today's capitalist class. In particular, it emphasizes the emerging importance of assets in financialized capitalism by contrasting them with the concept of commodities, which have enjoyed an important place in the analysis of conventional capitalism. Recently, in the critical academia of finance and money in the West, especially in the sociology of finance, the concepts of capitalization and assetization are emerging as a powerful analytical framework that reveals the characteristics of modern capitalism by replacing the existing commercialization and financialization. The paper provides a clear explanation of the concept of asset, capitalization, and capitalization from the perspective of power capital theory. In addition, by emphasizing the difference between commodity exchange and asset trading, which has been presented centering on the existing Marxism, it explains well why the asset type and the process of assetization can be an important analytical framework for studying today's financial capitalism. Therefore, this paper in domestic academia, it can provide impetus to advance the discussion of financialization in terms of capitalization and assetization, and it can also serve as a useful reference point for understanding recent academic discussions on the changes and core of modern capitalism. Author Jesús Suaste Cherizola is a sociologist who received her Ph.D. from Universidad Autónoma de Puebla, Mexico, and specializes in power capital theory. The author won the 2021 CASP Essay Prize for his contributions to new ideas in economics and social sciences with this paper. Therefore, it can be said that the academic value of this thesis has been highly evaluated in the field of institutional economics.
    Keywords: assets, commodities, finance, financialization, ownership, power, property, value
    JEL: P P1 P14 P46 G12 G3
    Date: 2023
  2. By: Besley, Timothy
    Abstract: This paper argues that a distinctive form of capitalism, cohesive capitalism, emerged in the post-war period supporting the wellbeing of its citizens through building state capacities alongside open and democratic forms of government. The paper identifies a range of threats that this model now faces and speculates on what it would take, particularly in terms of international cooperation, to respond to them.
    Keywords: state capacity; cohesive capitalism
    JEL: P16 P51
    Date: 2021–12–01
  3. By: Juliana Rodrigues Vieira (BDMG); Gilberto de Assis Libânio (UFMG); Débora Freire Cardoso (UFMG)
    Abstract: This work aims to analyze the impact of the improvement in distributive indicators, verified in the 2000s, on the productive structure and how this dynamic affected the economic growth trajectory of the Brazilian economy, as well as its repercussion on income distribution. This study is based on social accounting multipliers, obtained from the Social and Financial Accounting Matrices (MCSF) for the years 2005, 2008 and 2017. The main results suggest that the existing problems in the Brazilian productive structure contributed to minimizing the gains arising from an improvement in income distribution and, consequently, limit economic growth. It was also observed the existence of a strong connection between productive structure and income distribution, signaling significant endogeneity between these elements.
    Keywords: Productive structure, economic growth, income distribution.
    JEL: O11 O47 N20
    Date: 2023–12
  4. By: Hein, Eckhard
    Abstract: This paper reviews the post-Keynesian theory of inflation against the background of the simultaneous rise in inflation and profit shares in the course of the Covid-19 recovery and the Russian war in Ukraine. It distinguishes between the Keynes, Kaldor, Robinson, and Marglin tradition, and the Kalecki, Rowthorn, and Dutt tradition. Two prototype models in the latter tradition-the Dutt, Blecker/Setterfield and Lavoie variant, and the Rowthorn and Hein/Stockhammer variant-are discussed. The paper applies the latter to elucidate recent inflation trends propelled by increasing imported energy prices and then rising mark-ups. The effects of inflation-targeting central bank interest policies versus a post-Keynesian alternative macroeconomic policy approach are evaluated. It is argued that from a post-Keynesian perspective inflation is always and everywhere a conflict phenomenon, with different potential triggers. Adequate policies should thus focus on moderating distribution conflict by incomes policies, complemented by central banks targeting low long-term real interest rates, functional finance fiscal policies and international coordination of inflation targets.
    Keywords: conflict inflation, post-Keynesian models, imported energy inflation shock
    JEL: E12 E25 E31 E61
    Date: 2023
  5. By: Juliana Rodrigues Vieira (BDMG); Gilberto de Assis Libânio (UFMG); Débora Freire Cardoso (UFMG)
    Abstract: This study analyzes the relationship between income distribution, economic growth, and the financial system for the Brazilian economy from 2005 to 2017. Our main goal is to investigate the role of the financial sector in explaining economic growth and the distributive structure. In terms of methodology, this work is based on the social accounting model, via the estimation of social accounting multipliers. These were obtained from financial social accounting matrices for the years 2005, 2008 and 2017. Our results suggest that the financial sector has contributed to economic growth and agents’ income. However, it has also brought about negative effects on income distribution, due to the unequal access to financial products across income deciles – which highlights the importance of policies aimed at facilitating access to the financial sector by lower income individuals.
    Keywords: income distribution, economic growth, financial system
    JEL: O11 O47 N20
    Date: 2023–12
  6. By: Jon D. Wisman; Michael Cauvel; Aaron Pacitti
    Abstract: The standard introductory course in microeconomics presents a sophisticated set of tools for understanding the dynamics of markets, which are of central importance in all contemporary societies. Unfortunately, most textbooks for this course inadequately address and frequently distort the six following issues critical to students' understanding of economic society: Work is presented negatively as providing disutility; interdependence in decision making is ignored, masking the social nature of humans; the view that economic growth be society's principal goal is uncritically embraced; and the consequences of externalities are inadequately addressed, as too are market power, and property rights. The outcome is that students are often left with the impression that unfettered markets necessarily deliver economic efficiency and just outcomes, resulting in pedagogy that serves as ideology legitimating prevailing unequal social conditions. This article is intended to help professors recognize the incomplete and unbalanced understanding offered by most microeconomics textbooks to better enable them to avoid teaching economics as ideology.
    Keywords: Microeconomic education, realism of assumptions, ideology, social role of microeconomics
    JEL: A11 A14 B40 D00
    Date: 2023
  7. By: Aurore Fransolet; Julien Vastenaekels
    Abstract: Just transition occupies an increasingly important place in political agendas from global to local levels. In recent years, this concept has evolved from a reactive social project aimed at protecting industrial workers affected by environmental regulations to a proactive social-ecological project aimed at simultaneously reducing social inequalities and environmental degradation. This ambition of bridging social justice and sustainability objectives is particularly relevant for the urban context, where social and environmental issues tend to concentrate and intertwine. However, questions of what a just and sustainable city could and should look like remain largely unexplored. While there exist several urban visions that centre social justice (most notably Susan Fainstein’s “Just City”), sustainability issues are not central to these visions. At the same time, it remains unclear whether and how urban visions that do focus on sustainability (e.g. sustainable cities, eco-cities, green cities, low-carbon cities.) consider social justice concerns. This research has two main goals: first, to identify and analyse the role of sustainability in the prominent just city visions and, second, to examine visions of sustainable cities and their conceptualization of justice. The research is based on an analysis of several seminal texts on just cities and sustainable city visions. The visions are analysed through a framework that highlights considerations of distributional, procedural and recognition-based justice. By analysing the place of sustainability within just city visions and the place of social justice in sustainable city visions, we give direction to and open discussion about the contours of possible just and sustainable urban futures.
    Date: 2023–06
  8. By: Paul HADJI-LAZARO; Julien CALAS; Antoine GODIN; Pamela SEKESE; Andrew SKOWNO
    Abstract: This study introduces new methods for evaluating nature-related socioeconomic risks in the South African context, anchored on two main contributions. Firstly, it embarks on a multidimensional analysis of the exposure of several macro-financial and social variables to nature-related risks. Based on Environmentally Extended Input-Output tables and socioeconomic satellite accounts, the analysis identifies how physical and transition risks could exert significant impacts on directly and indirectly sectors essential for domestic and international supply chains but also for employment and fiscal revenues. Secondly, the research extends to a more granular spatially-explicit assessment, at the municipality level, of socioeconomic vulnerabilities related to water scarcity and the protection of terrestrial ecosystems. Results localize socioeconomic exposures through key sectors, especially in Mpumalanga. These two intertwined facets underline the importance of a holistic approach to nature-related risks, combining economists and ecologists' knowledge, and able to emphasize the intertwined goals of economic prosperity, social stability, and environmental sustainability.
    Keywords: Afrique du Sud
    JEL: Q
    Date: 2023–12–09
  9. By: Blaber, Richard Michael
    Abstract: This paper will argue that the current level of international debt is a huge ‘bubble’ waiting to burst, and that, if and when it does so, the entire financial structure of global capitalism will collapse, taking capitalism, as such, with it. The mechanism of this collapse, if it occurs, will be a collapse of the international banking system, and complete loss of confidence on the exchange markets in any form of reserve currency – either the US dollar or any putative replacement for it.
    Date: 2023–11–23
  10. By: Liqui-Lung, C.
    Abstract: I show how intersectionality, the interconnections of social organizations that create interdependent systems of disadvantage, plays a role in individual choice behavior when people use outcomes of others like them to cope with sources of noise in decision making they cannot control for. I analyze how the different dimensions of a social type interact in belief formation and choice behavior at the individual and aggregate level, and show how an intersectional lens sheds light on inequalities and patterns in aggregate choice behavior that are not visible with a one-dimensional lens. Finally, I illustrate how these insights could help explain the pitfalls we encounter in the evaluation of one-dimensional policy measures targeting the underrepresentation of social groups, and guide us in developing potentially more effective multidimensional approaches.
    JEL: D81 D91 Z13
    Date: 2023–12–11
  11. By: Weber, Christopher; Mayer, Pascal
    Abstract: In the area of International Business (IB), a substantial body of research has accumulated analyzing the effect of various host country characteristics on foreign direct investments (FDI). Special attention has been given to institutions. However, the conventional approach of addressing institutions in IB research has recently been criticized for not paying sufficient attention to the interrelationships among institutions. We address those calls and conceptualize institutions as 'holistic systems composed of interrelated components' (Kim & Aguilera 2016, p. 149) and employ the fuzzy set Qualitative Comparative Analysis (fsQCA) to investigate the interrelated effect of formal and informal institutions on FDI inflows. In our empirical methodology, we use data on FDI and formal and informal institutions from 57 countries. The results support the configurational approach and corroborate a systemic view on the effect of institutions on FDI. Our study contributes to a more nuanced understanding of the workings of institutions on FDI and demonstrate the value in adopting a configurational perspective in institutional research.
    Abstract: Viele Studien haben sich im Bereich International Business (IB) mit den Auswirkungen verschiedener Ländercharakteristika auf ausländische Direktinvestitionen (ADI) befasst. Insbesondere der Analyse von Institutionen wurde in diesem Zusammenhang besondere Aufmerksamkeit gewidmet. Der herkömmliche Ansatz, Institutionen in der IB-Forschung zu berücksichtigen, ist jedoch in letzter Zeit zunehmend kritisiert worden, da er den Wechselbeziehungen zwischen einzelnen institutionellen Elementen nicht genügend Aufmerksamkeit schenkt. Wir greifen diese Kritik auf und konzeptualisieren Institutionen als 'ganzheitliches System zusammenhängender Elemente' (Kim & Aguilera 2016, S. 149; eigene Übersetzung) und verwenden die Fuzzy Set Qualitative Comparative Analysis (fsQCA), um die zusammenhängende Wirkung von formellen und informellen Institutionen auf ADI-Zuflüsse zu untersuchen. In unserer empirischen Methodik verwenden wir Daten über ADI und formelle und informelle Institutionen aus 57 Ländern. Unsere Ergebnisse unterstützen den Konfigurationsansatz und bestätigen eine systemische Sichtweise auf die Auswirkungen von Institutionen auf ADI. Unsere Studie trägt zu einem differenzierteren Verständnis der Wirkungsweise von Institutionen auf ADI bei und verdeutlicht den Wert der konfigurativen Perspektive in der institutionellen Forschung.
    Keywords: Foreign Direct Investment, Institution, International Business, Location Choice, Qualitative Comparative Analysis
    JEL: D02 F21 F23
    Date: 2023
  12. By: Iñaki Aldasoro; Perry Mehrling; IDaniel H. Neilson
    Abstract: This paper presents a money view analysis of the recent crypto innovation of stablecoins, which have seen a remarkable rise and more recently some spectacular collapses. By analogizing on-chain with offshore, and developing an extended analogy of stablecoins with Eurodollars, we reveal the primitive character of the existing on-chain liquidity mechanism which supports the promise of par settlement by existing on-chain stablecoin models. Liquidity, not solvency, is the issue confronted by par settlement.
    Keywords: stablecoins, Eurodollar, forward market, dealer function, liquidity
    JEL: E42 F33 G21 G23
    Date: 2023–11
  13. By: Nitzan, Jonathan; Bichler, Shimshon
    Abstract: המשברים האחרונים בישראל, המכונים בשם אורווליאני טיפוסי "המהפכה המשפטית", הובילו לשתי תגובות סותרות לכאורה: האחת הייתה של פירמות ההשקעה ומיני כלכלנים ואנליסטים והתגובה השנייה הייתה של נתניהו ומרעיו למה שהם מכנים "רפורמה". מי צודק? האם צודקים ראשי קבוצות הון דומיננטיות המתריעים מפני "הפגיעה בדמוקרטיה", "הפרת שיווי המשקל שבין הרשויות", "הברחת הון סיכון", "שיבוש היציבות" ושאר מיני אזהרות? או שמא צודקים נתניהו וכנופייתו, המבטיחים שהליברליזציה בישראל משגשגת, שכלכלת ישראל מבוססת על יסודות איתנים ותמשיך לצמוח ובעיקר, כי היא נמצאת בידיים אחראיות ומנוסות. לנו נראה כי שני הצדדים צודקים.
    Keywords: Benjamin Netanyahu, crisis, differential accumulation, dominant capital, Israel, fascism, globalization, leaders, neoliberalism, redistribution, religion, ruling class
    JEL: P16 D3 G11 D53 G
    Date: 2023

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