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on Heterodox Microeconomics |
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Issue of 2024‒07‒29
thirteen papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Vlados, Charis (Democritus University of Thrace, Department of Economics); Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics) |
| Abstract: | Purpose: This study aims to analyze the emergence of a new structural configuration of globalization, with the 2008 global financial crisis serving as the first symptom of this change. By introducing the “Evolutionary Structural Triptych” (EST), this research seeks to understand the basic components of the new evolutionary trajectory of global capitalism post-2008. The study places emphasis on its interdependent and coevolving economic, political and technological dynamic facets. Design/methodology/approach: This research introduces the EST framework, critically contrasting it with conventional understandings in international political economy (IPE) to provide a comprehensive and structured analysis of global developments after 2008. It traces the phases of global capitalism since Second World War, examines the central dynamic dimensions during each evolutionary phase, identifies the basic patterns and delves into the foundational elements of the emerging era of globalization. Findings: The analysis reveals three key findings. First, the emerging restructured globalization indicates a need for a new balance in the contemporary world system; however, this balance cannot be achieved within the architecture of the old system. Second, the new era of globalization necessitates a re-equilibrated approach across different dimensions of geopolitical stability, economic development and innovation. This approach should emphasize sustainability, adaptability, resilience and inclusivity and lean toward responsible, open and organic innovation models for a revamped global structure. Third, while many current IPE theories tend to compartmentalize aspects of the new globalization, the EST advocates for a holistic perspective that integrates politics, economics and technology within the framework of global trends. This perspective bridges existing gaps and offers actionable insights for a dynamic and inclusive global future. Originality/value: The paper presents the EST as a novel analytical instrument in the realm of the modern IPE. This tool uniquely places technology and innovation at the forefront, parallel to economic and political spheres, to comprehend the progression of globalization. In doing so, it highlights the intertwined relationship of these structural dimensions in shaping the future of the subject of the IPE. |
| Keywords: | new globalization; evolutionary structural triptych; international political economy; evolutionary economics; global responsibility; world system phases |
| JEL: | B52 F50 M14 |
| Date: | 2024–04–30 |
| URL: | https://d.repec.org/n?u=RePEc:ris:duthrp:2024_002 |
| By: | Robert van der Veen (University of Amsterdam); Loek Groot (University of Utrecht) |
| Abstract: | The thesis of a capitalist road to communism (van der Veen and Van Parijs, 1986) asserts that Marx realm of freedom can be reached from within welfare capitalism, skipping socialism, by using a tax-financed unconditional basic income until it is close to disposable income per head, so that the very distinction between paid work and free time is cancelled as a result. We revisit and update this thesis for two reasons: the recent prospect of a post-labor society following the automation revolution in technology, and that welfare capitalism has become more inegalitarian and less hospitable to basic income. We use a simple economic model which incorporates an upward adjustment of basic income to labor-saving technical change and distinguishes between capital that complements labor and capital that is fully substitutable with labor. A baseline simulation of the model shows the economic feasibility of a capitalist transition to communism. Two versions of a scenario incorporating interplay between technical change and market socialist institutional reforms are set out which make the transition politically viable to some extent, depending on the social distribution of power over technology. The most promising version is one in which the productivity of labor and automation capital grow at similar rates. We show in which respects it approximates the ideal of communism. One finding is that communism does not require reaching the final stage of a post-labor society. We conclude with a reflection on the relevance of our present update for the more immediate future of unconditional basic income. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.18194 |
| By: | Zhi, Xiaoxu; Liu, Zongzhi; Yuan, Lingran; Gong, Binlei |
| Keywords: | Institutional And Behavioral Economics, Political Economy, Industrial Organization |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343636 |
| By: | Vlados, Charis (Democritus University of Thrace, Department of Economics); Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics) |
| Abstract: | The emerging new global socioeconomic system is marked by a complex tapestry of multifaceted challenges, significantly reshaping the past global architecture. In the context of international political economy, the current era might be more accurately described as “new globalization.” This field has recently begun to integrate the effects of the Russo-Ukrainian War, which erupted in February 2022, into its analytical framework. This military showdown exemplifies the complex and interrelated political, economic, and technological challenges inherent in the emerging new globalization. This paper delves into the potential ramifications of the Russo-Ukrainian War on the unfolding trajectory of new globalization, utilizing the analytical approach of the “Evolutionary Structural Triptych” (EST). This critical review of pertinent literature suggests that the war may increase the likelihood of diminished returns during the current phase of the emerging new globalization. |
| Keywords: | Energy transition; evolutionary structural triptych (EST); international political economy (IPE); new globalization; Russo-Ukrainian War |
| JEL: | F50 P48 |
| Date: | 2024–01–24 |
| URL: | https://d.repec.org/n?u=RePEc:ris:duthrp:2024_001 |
| By: | Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics); Vlados, Charis (Democritus University of Thrace, Department of Economics) |
| Abstract: | Achieving green and sustainable development is a fundamental characteristic of the emerging new globalisation, evident at the organisational and broader socioeconomic levels. This conceptual research explores how the recent literature approaches the dimensions and methodologies of green organisations, introducing a mechanism for advising and reinforcing their green physiology in Stra.Tech.Man terms (strategy-technology-management synthesis). The Green Stra.Tech.Man Scorecard is an action research diagnostic tool for all organisational sizes, regardless of industry, ownership type, or location, integrating fundamental green organisational dimensions. |
| Keywords: | Green development; new globalisation; Stra.Tech.Man approach |
| JEL: | D23 L10 Q01 |
| Date: | 2024–03–15 |
| URL: | https://d.repec.org/n?u=RePEc:ris:duthrp:2024_003 |
| By: | Dawid, Herbert; Gemkow, Simon; Harting, Philipp; Kabus, Kordian; Neugart, Michael; Wersching, Klaus |
| Abstract: | We develop an agent-based macroeconomic model featuring a distinct geographical dimension and heterogeneous workers with respect to skill types. The model, which will become part of a larger simulation platform for European policymaking (EURACE), allows us to conduct exante evaluations of a wide range of public policy measures and their interaction. In particular, we study the growth and labor market effects of various policy types that promote workers’ general skill levels. Using a calibrated model it is examined in how far effects differ if spending is uniformly spread over all regions in the economy or focused in one particular region. We find that the geographic distribution of policy measures significantly affects the effects of the policy even if total spending is kept constant. Focussing training efforts in one region is the worst policy outcome while spreading funds equally across regions generates a larger output in the long-run but not in the short-run. |
| Date: | 2024–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:146365 |
| By: | Lukas K\"ung; George M. Giaglis |
| Abstract: | Decentralized autonomous organizations (DAOs) are emerging innovative organizational structures, enabling collective coordination, and reshaping digital collaboration. Despite the promising and transformative characteristics of DAOs, the potential technological advancements and the understanding of the business value that organizations derive from implementing DAO characteristics are limited. This research applies a systematic review of DAOs' business applicability from an open systems perspective following a best-fit framework methodology. Within our approach, combining both framework and thematic analysis, we discuss how the open business principles apply to DAOs and present a new DAO business framework comprising of four core business elements: i) token, ii) transactions, iii) value system and iv) strategy with their corresponding sub-characteristics. This paper offers a preliminary DAO business framework that enhances the understanding of DAOs' transformative potential and guides organizations in innovating more inclusive business models (BMs), while also providing a theoretical foundation for researchers to build upon. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.12445 |
| By: | Pattit, Jason M.; Pattit, Katherina G.; Spender, J-C |
| Abstract: | When Edith T. Penrose became Fritz Machlup’s student in the late-1940s, she found little in mainstream or Austrian economics to guide her as she began her explorations into the growth of the firm. While she acknowledged Kenneth Boulding’s influence on her work, we suspect she drew on a broader tradition that includes, among others, Alfred Marshall, Frank Knight (Boulding’s teacher), and Ronald Coase. We seek to demonstrate Penrose’s connection to this ‘invisible college’, particularly to Knight, and its influence on her investigation of the growth of the firm. Given mainstream economists’ pursuit of rigor at the expense of practical relevance and their continuing inattention to Coase’s work, we suggest Penrose’s work on the growth of the firm can be understood as part of a broader tradition represented by this ‘invisible college’, lending to useful new insights for business strategy and business ethics scholarship. |
| Keywords: | Edith T. Penrose, Frank Knight, Theory of the Firm, Management History |
| JEL: | B31 M0 N8 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121229 |
| By: | Basilio Tavares Ramos, Erica; Dias Paes Ferreira, Marcelo; De Carvalho Reis Neves, Mateus |
| Keywords: | Production Economics, Agricultural And Food Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343654 |
| By: | Zattler, Jürgen K. |
| Abstract: | The environment in which development policy operates has changed quickly. Some of these changes are longer-term trends to which development policy should adapt: the global economy is in upheaval, while global crises are becoming the norm and are increasing the debt level even further. Moreover, they are exacerbating inequality in our partner countries, which in turn is undermining democratic structures. Public budgets are increasingly coming under pressure and populist forces are calling into question the very principle of development policy. At the same time, the world is becoming more multipolar and developing countries are gaining in self-confidence.Development policy needs to find structural answers to these challenges: – It should explicitly see itself as part of overall policy and should systematically contribute to overcoming global challenges; – It must find new ways to ensure that environmental transformation goes hand in hand with social progress; – It needs to become even more effective and more political, particularly by systematically integrating bilateral contributions into the policies of the partner countries and into multilateral and European approaches; moreover, policy reforms must be addressed comprehensively, most importantly those related to the green transformation; – It must profoundly change the way it mobilises private investments, focusing not on subsidising individual investments but on transforming markets; – Finally, development partners need to team up to find solutions to the acute debt and financial crisis. This paper will not only outline current trends and formulate principles for a modern development policy. It will also show examples of how these principles could be put into practice through concrete initiatives: – Socio-ecological fiscal reforms: environmentally harmful subsidies can be repurposed for social security – A new Sustainable Development Goal (SDG) to reduce intra-country inequality – Climate programmes that focus on policy reforms. |
| Keywords: | international financial system, development financing |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:299129 |
| By: | Dawid, Herbert; Neugart, Michael |
| Abstract: | The advent of artificial intelligence is changing the task allocation of workers and machines in firms’ production processes with potentially wide ranging effects on workers and firms. We develop an agent-based simulation framework to investigate the consequences of different types of automation for industry output, the wage distribution, the labor share, and industry dynamics. It is shown how the competitiveness of markets, in particular barriers to entry, changes the effects that automation has on various outcome variables, and to which extent heterogeneous workers with distinct general skill endowments and heterogeneous firms featuring distinct wage offer rules affect the channels via which automation changes market outcomes. |
| Date: | 2024–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:146300 |
| By: | Carlo Bottai; Jacopo Di Iorio; Martina Iori |
| Abstract: | Economic growth results from countries' accumulation of organizational and technological capabilities. The Economic and Product Complexity Indices, introduced as an attempt to measure these capabilities from a country's basket of exported products, have become popular to study economic development, the geography of innovation, and industrial policies. Despite this reception, the interpretation of these indicators proved difficult. Although the original Method of Reflections suggested a direct interconnection between country and product metrics, it has been proved that the Economic and Product Complexity Indices result from a spectral clustering algorithm that separately groups similar countries or similar products, respectively. This recent approach to economic and product complexity conflicts with the original one and treats separately countries and products. However, building on previous interpretations of the indices and the recent evolution in spectral clustering, we show that these indices simultaneously identify two co-clusters of similar countries and products. This viewpoint reconciles the spectral clustering interpretation of the indices with the original Method of Reflections interpretation. By proving the often neglected intimate relationship between country and product complexity, this approach emphasizes the role of a selected set of products in determining economic development while extending the range of applications of these indicators in economics. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.16199 |
| By: | Christian Ghiglino; Nicole Tabasso |
| Abstract: | Interaction with individuals from other socioeconomic classes has been shown to be a main driver for social mobility. We employ tools of social identity theory and network analysis to show how exposure to individuals of different social identities can lead to interactions with them, and an adoption of their identity, creating social mobility. We find that even if all individuals have the same ability, they may endogenously choose different identities, leading to different classes and actions. In particular, we derive a sufficient condition for such an equilibrium to exist, which equates to a novel measure of cohesion. Furthermore, we show that the most socially mobile individuals (changing their identity) are those who either have few connections or a more heterogeneous mix of identities in their connections. Finally, we show that upward social mobility increases action levels in society, but not necessarily welfare. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.10972 |