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on Heterodox Microeconomics |
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Issue of 2024‒04‒15
ten papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Severin Reissl; Luca E. Fierro; Francesco Lamperti; Andrea Roventini |
| Abstract: | We present an updated, stock-flow consistent version of the 'Dystopian Schumpeter meeting Keynes' agent-based integrated assessment model. By embedding the model in a fully specified accounting system, all balance sheet items and financial flows can be explicitly and consistently tracked throughout a simulation. This allows for an improved analysis of climate change and climate policy scenarios in terms of their systemic implications for agent and sector-level balance sheet dynamics and financial stability. We provide an extensive description of the updated model, representing the most detailed outline of a model from the well-established 'Keynes + Schumpeter' family available to date. Following a discussion of calibration and validation, we present a range of example scenarios. |
| Keywords: | Climate change; Agent-based models; Integrated assessment |
| Date: | 2024–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/09&r=hme |
| By: | Njiru, Ruth; Appel, Franziska; Dong, Changxing; Balmann, Alfons |
| Abstract: | In light of the dynamic challenges facing agricultural land markets, the conventional analytical frameworks fall short in capturing the intricate interplay of strategic decisions and evolving complexities. This necessitates the development of a novel method, integrating deep learning into Agent-based Modelling, to provide a more realistic and nuanced understanding of land market dynamics, enabling informed policy assessments and contributing to a comprehensive discourse on agricultural structural change. In this paper, different deep learning models are tested and evaluated, as emulators of AgriPoliS (Agricultural Policy Simulator). AgriPoliS is an agent-based model used to model the evolution of structural change in agriculture resultant on the change in the policy environment. This study is part of preliminary works towards integrating deep learning methods and predictions with AgriPoliS to capture strategic decision making and actions of agents in land markets. The paper tests the models on their suitability, computational requirements and run-time complexities. The output from AgriPoliS serves as the input features for the deep learning models. Models are evaluated using a combination of coefficient of determination (R2 score), mean absolute error, visual displays and runtime. The models were able to replicate the variable of interest with a high degree of accuracy with R2 score of more than 90%. The CNN was the most suited for replicating the data. Through this work, we learned the required complexities, computational and training efforts needed to integrate deep learning and AgriPoliS to capture strategic decision-making. |
| Keywords: | Land Economics/Use |
| Date: | 2024–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:bokufo:340874&r=hme |
| By: | Gianluca Pallante; Mattia Guerini; Mauro Napoletano; Andrea Roventini |
| Abstract: | We extend the Schumpeter meeting Keynes (K+S; see Dosi et al., 2010, 2013, 2015) to model the emergence and the dynamics of an interbank network in the money market. The extended model allows banks to directly exchange funds, while evaluating their interbank positions using a network- based clearing mechanism (NEVA, see Barucca et al., 2020). These novel adds on, allow us to better measure financial contagion and systemic risk events in the model and to study the possible interactions between micro-prudential and macro-prudential policies. We find that the model can replicate new stylized facts concerning the topology of the interbank network, as well as the dynamics of individual banks’ balance sheets. Policy results suggest that the economic system at large can benefit from the introduction of a micro-prudential regulation that takes into account the interbank network relationships. Such a policy decreases the incidence of systemic risk events and the bankruptcies of financial institutions. Moreover, a trade-off between financial stability and macroeconomic performance does not emerge in a two-pillar regulatory framework grounded on i) a Basel III macro-prudential regulation and ii) a NEVA-based micro-prudential policy. Indeed, the NEVA allows the economic system to achieve financial stability without overly stringent capital requirements. |
| Keywords: | Financial contagion, Systemic risk, Micro-prudential policy, Macro-prudential policy, Macroeconomic stability, Agent-based computational economics |
| Date: | 2024–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/08&r=hme |
| By: | Lackner, Teresa; Fierro, Luca Eduardo; Mellacher, Patrick |
| Abstract: | The paper introduces an integrated approach, blending Opinion Dynamics with a Macroeconomic Agent-Based Model (OD-MABM). It aims to explore the co-evolution of climate change mitigation policy and public support. The OD-MABM links a novel opinion dynamics model that is calibrated for European countries using panel survey data to the Dystopian Schumpeter meeting Keynes model (DSK). Opinion dynamics regarding stringent climate policy arise from complex interactions among social, political, economic and climate systems where a household's opinion is affected by individual economic conditions, perception of climate change, industry-led (mis-)information and social influence. We examine 133 policy pathways in the EU, integrating various carbon tax schemes and revenue recycling mechanisms. Our findings reveal that while effective carbon tax policies initially lead to a decline in public support due to substantial macroeconomic transition costs, they concurrently drive a positive social tipping point in the future. This shift stems from the evolving economic and political influence associated with the fossil fuel-based industry, gradually diminishing as the transition unfolds. Second, hybrid revenue recycling strategies that combine green subsidies with climate dividends successfully address this intertemporal tradeoff, broadening public support right from the introduction of the carbon tax. |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:rdfze&r=hme |
| By: | Emmanuel Petit (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In economic theory, the term « interaction » is used to describe the exchange relationship between agents in the market. In semantic terms, the word is used in different ways depending on whether one is in a classical model of pure and perfect competition, in a game theory model or in institutional economics. The polysemous use of the term interaction reveals different methodological positions. Among economists, however, the meaning of the term interaction does not fully overlap with that of « transaction », identified by John Dewey, in which the entities that participate in the exchange are themselves transformed – thus suggesting an extension of the analysis of interaction in economics. |
| Abstract: | En théorie économique, le terme d'interaction est utilisé pour qualifier la relation d'échange entre des agents sur le marché. Sur le plan sémantique, l'usage du mot recouvre des significations différentes selon que l'on se trouve dans un modèle classique de concurrence pure et parfaite, dans un modèle de théorie des jeux ou encore à l'intérieur de l'économie institutionnelle. L'usage polysémique du terme d'interaction révèle notamment des postures méthodologiques différentes. Chez les économistes, cependant, la signification du terme d'interaction ne recouvre pas totalement celle de « transaction », identifiée par John Dewey, dans laquelle les entités qui participent à l'échange sont elles-mêmes transformées – laissant ainsi entrevoir un prolongement de l'analyse de l'interaction en économie. |
| Keywords: | Economic exchange, Semantics, Influence, Trans-action, Inter-action, échange économique, inter-action, trans-action, influence, sémantique |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04493593&r=hme |
| By: | Leonardo Barros Torres; Gilberto Tadeu Lima; Jaylson Jair da Silveira |
| Abstract: | We incorporate tax evasion to a demand-led macrodynamic model of capacity utilization and output growth rate. The frequency of tax evaders is endogenously time-varying, driven by imitation-augmented satisficing evolutionary dynamics involving pecuniary and non-pecuniary factors reflecting the distribution of tax morale across taxpayers. Consequently, the microdiversity of tax compliance behavior and the macrodynamics of economic activity are co-evolutionarily coupled. Matching empirical evidence, long-run heterogeneity in tax compliance is a stable evolutionary equilibrium, and the higher the median tax morale, the lower the frequency of tax evaders. Other comparative statics matching empirical evidence are obtained analytically and through numerical simulations. |
| Keywords: | Tax compliance behavior; tax morale; satisficing evolutionary dynamics; capacity utilization; output growth rate |
| JEL: | B52 C52 D33 E12 E70 H26 |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2024wpecon10&r=hme |
| By: | Souza, Bruno Rezende (Universidade Federal de Minas Gerais) |
| Abstract: | Scientific publishing has become a complex economic engine intertwined with prestige and power. While publicly funded research fuels prestigious journals owned by private entities, the success of scientists and institutions becomes intimately tied to a cycle of increasing publication costs and limited access. The initial section of this article employs a satirical analogy, drawing parallels between the scientific publishing industry and the familiar framework of social media platforms. It offers a succinct historical overview, elucidating the progression of the present publishing structure. The final section delves into the paradoxical realities of this system. (1) Nation-funded research, public players, private profits: Public institutions and nation-states fuel research, but publishers reap the financial benefits through copyright ownership and inflated Article Processing Charges (APCs); (2) The prestige trap: Journals become platforms for constructing and maintaining scientific authority, with citation counts fueling the cycle of high prices and exclusivity; (3) Higher prices, more visibility: The APCs add a layer of financial burden, hindering access for researchers, especially from developing countries. This article proposes potential solutions such as leveraging existing models. Platforms like arXiv demonstrate sustainable open-access models, relying on voluntary contributions and community engagement. Integrating scientist-driven peer review within open-access frameworks can create a more equitable and accessible system, empowering the scientific community. The future of scientific publishing demands a shift towards transparency, affordability, and open access. By disentangling the economic web and prioritizing open access and transparency, we can create a more equitable and sustainable future for scientific publishing, ensuring that knowledge truly serves its intended purpose – to benefit humanity as a whole. |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:9ejhm&r=hme |
| By: | Julie Robin (CEREGE - Centre de Recherche en Gestion - UP - Université de Poitiers = University of Poitiers); Olivier Coussi (CEREGE - Centre de Recherche en Gestion - UP - Université de Poitiers = University of Poitiers, FED 4229 - Fédération Territoires - UP - Université de Poitiers = University of Poitiers - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Benjamin Dreveton (CEREGE - Centre de Recherche en Gestion - UP - Université de Poitiers = University of Poitiers) |
| Abstract: | Circular economy emerges as an essential economic paradigm to address contemporary challenges of sustainability and natural resources preservation. However, establishing effective and sustainable circular practices hold complex challenges due to the heterogeneity of circular approaches and the need for cooperation between public and private actors at the territorial level. How can governance based on cooperation be observed among these heterogeneous actors within a circular ecosystem? This theoretical and conceptual paper explores how the relational view allows for understanding the mechanisms of interactions between public and private actors within circular ecosystems. We introduce the concepts of territory, governance, and ecosystem to develop an analytical framework linking these three concepts. Drawing on the theory of relational rents, this framework is constructed through a multicriteria and multi-actor analysis to enhance the understanding of interactions between actors. With the example of the Territorial Cooperative Ecosystem (TCE), this managerial analysis framework of cooperation and value creation criteria in a circular ecosystem facilitates the understanding of governance in circular ecosystems. |
| Abstract: | L'économie circulaire émerge comme un paradigme économique essentiel pour faire face aux enjeux contemporains de soutenabilité et de préservation des ressources naturelles. Cependant, la mise en place de pratiques circulaires efficaces et pérennes pose des défis complexes, notamment en raison de l'hétérogénéité des approches circulaires et de la nécessité d'une coopération entre acteurs publics et privés au niveau territorial. Comment observer une gouvernance fondée sur la coopération entre ces acteurs hétérogènes au sein d'un écosystème circulaire ? Cette proposition théorique et conceptuelle explore comment la perspective relationnelle permet la compréhension des mécanismes d'interactions entre les acteurs publics et privés au cœur des écosystèmes circulaires. Nous introduisons les notions de territoire, de gouvernance et d'écosystème pour aboutir sur une grille d'analyse permettant de lier ces trois concepts. En prenant appui sur la théorie des rentes relationnelles, celle-ci est construite à partir d'une analyse multicritère et multi-acteurs pour favoriser la compréhension des interactions entre acteurs. Ce cadre d'analyse managérial des déterminants de la coopération et de la création de valeur dans un écosystème circulaire est appliqué à l'exemple de l'écosystème coopératif territorial (ECT) afin de comprendre comment la grille managériale favorise la compréhension de la gouvernance des écosystèmes circulaires. |
| Keywords: | territorial governance, circular economy, ecosystem, cooperation, managerial analysis, gouvernance territoriale, économie circulaire, écosystème, coopération, analyse managériale |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04485145&r=hme |
| By: | David Lagziel (BGU); Lotem Ikan (BGU) |
| Keywords: | evolutionary processes; contest theory; non-Bayesian social learning; polarization |
| JEL: | C72 D62 D72 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:bgu:wpaper:2304&r=hme |
| By: | Bramoullé, Y.; Ghiglino, C. |
| Abstract: | We introduce loss aversion into a model of conspicuous consumption in networks. Agents allocate heterogeneous incomes between a conventional good and a status good. They interact over a connected network and compare their status consumption to their neighbors’ average consumption. We find that aversion to lying below the social reference point has a profound impact. If loss aversion is large relative to income heterogeneity, a continuum of conformist Nash equilibria emerges. Agents have the same status consumption, despite differences in incomes and network positions, and the equilibrium is indeterminate. Otherwise, there is a unique Nash equilibrium and status consumption depends on the interplay between network positions and incomes. Our analysis extends to homothetic and heterogeneous preferences. |
| Keywords: | Conspicuous Consumption, Loss Aversion, Social Networks |
| Date: | 2024–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2414&r=hme |