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on Heterodox Microeconomics |
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Issue of 2024‒09‒16
24 papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Bellanca, Nicolo' |
| Abstract: | These writings examine Claudio Napoleoni's reflections on the themes of the Marxist theory of value. In particular, they focus on the concepts of economic exploitation and alienation, documenting their evolution and demonstrating how these explorations aim to delineate a horizon of human emancipation. Finally, the fourth essay argues that Napoleoni's Marxist contributions are not distinct from his more concrete analyses of the Italian economy. In the 1960s, his reassessment of the concepts of productive labour and rent allowed him to argue that the social and political hegemony of redistributive coalitions constitutes Italy's main structural weakness and the primary cause of inequality and lack of inclusion. |
| Keywords: | Marxist theory of value; Claudio Napoleoni; Hanna Arendt; Alienation; Economic exploitation; Productive labour; Political economy; Italian economy |
| JEL: | B24 D72 E11 |
| Date: | 2024–04–19 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121789 |
| By: | Sasaki, Hiroaki; Mizutani, Aya |
| Abstract: | In contemporary Japan, the realization of a virtuous cycle of growth and distribution (i.e., how the "new form of capitalism" should be) has been discussed. To examine the validity of economic policies suggested by the new form of capitalism, we present a Kaleckian model that considers the wage gap among workers and the retained earnings of firms, and investigate the effects of minimum wage, the rate of retained earnings, and profit sharing on growth and distribution. We reveal that a decrease in the rate of retained earnings and an increase in profit sharing do not lead to a virtuous cycle of growth and distribution, whereas a rise in the minimum wage increases the income share of workers and the economic growth rate. However, an increase in the minimum wage has a negative impact on employment, whereas a decline in the rate of retained earnings and an expansion of profit sharing have a positive effect. |
| Keywords: | growth and distribution; Kaleckian model; minimum wage; retained earnings; profit sharing; Japan's new form of capitalism |
| JEL: | E12 E25 J31 J53 |
| Date: | 2024–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121692 |
| By: | David H. Wolpert; Kyle Harper |
| Abstract: | Social evolutionary theory seeks to explain increases in the scale and complexity of human societies, from origins to present. Over the course of the twentieth century, social evolutionary theory largely fell out of favor as a way of investigating human history, just as advances in complex systems science and computer science saw the emergence of powerful new conceptions of complex systems, and in particular new methods of measuring complexity. We propose that these advances in our understanding of complex systems and computer science should be brought to bear on our investigations into human history. To that end, we present a new framework for modeling how human societies co-evolve with their biotic environments, recognizing that both a society and its environment are computers. This leads us to model the dynamics of each of those two systems using the same, new kind of computational machine, which we define here. For simplicity, we construe a society as a set of interacting occupations and technologies. Similarly, under such a model, a biotic environment is a set of interacting distinct ecological and climatic processes. This provides novel ways to characterize social complexity, which we hope will cast new light on the archaeological and historical records. Our framework also provides a natural way to formalize both the energetic (thermodynamic) costs required by a society as it runs, and the ways it can extract thermodynamic resources from the environment in order to pay for those costs -- and perhaps to grow with any left-over resources. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.08861 |
| By: | Jose Luis Oreiro |
| Abstract: | This paper aims to show that the political obstacles to the implementation of a new-developmentalist model in Brazil can be overcome by the reconstruction of a developmentalist class coalition like the one that emerged in Brazil after the 1930 Revolution led by Getúlio Vargas. The concept of class coalition was developed by Bresser-Pereira in his book "The Political Construction of Brazil". A class coalition is defined as the emergence of coalitions of interests between groups that belong to distinct social classes. A developmentalist coalition results from the perception on the part of urban workers, industrial entrepreneurs and government technocracy that their economic interests are not served by liberal policies, since they are incapable of generating economic development, being useful only to rentiers and the domestic and international financial interests. |
| Keywords: | New-Developmentalism, Class Coalition, Bresser-Pereira |
| JEL: | B31 O10 O11 O20 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2411 |
| By: | Bulla Casas, Lina Juliana (Universidad Nacional de Colombia) |
| Abstract: | El trabajo reproductivo es un concepto económico y social que ha tomado importancia en el estudio de la ciencia económica desde múltiples puntos de vista. Por lo tanto, en el presente trabajo se genera un debate con uno de los principales referentes de la economía, Karl Marx. Con el fin de percibir cómo desde pensamientos considerados clásicos, desde la teoría del valor-trabajo, se le ha concebido al trabajo reproductivo una valoración y posición diferenciada del considerado trabajo productivo. Lo anterior, para concluir que mediante estas distinciones se ha subordinado al trabajo reproductivo aún hoy en día cuando se puede discernir de esta posición desde los argumentos presentados. |
| Keywords: | trabajo reproductivo; Marx; pensamiento económico; trabajo productivo; economía del cuidado; valor-trabajo. |
| JEL: | B14 B24 B54 |
| Date: | 2022–08–30 |
| URL: | https://d.repec.org/n?u=RePEc:col:000538:000044 |
| By: | Mouré, Christopher |
| Abstract: | Hager’s project examines the historical development of US public debt ownership and its political implications. His main innovation is to approach the topic from the perspective of disaggregated social class and frame questions of public debt ownership in terms of social inequality and power. He tackles four questions: who are the owners of the public debt; what are the distributional effects on income and wealth; what are the implications of increasingly foreign public debt ownership; and what is the relationship between debt-ownership concentration and political influence. He argues that the increasingly unequal power of bondholders undermines the ability of the US government to pursue a more equitable and democratic fiscal policy, which is essential to tackling a range of social issues (including inequality itself). The project is illuminating and has important political implications, though due to the narrow scope of the project, Hager gives light treatment of some key aspects of the relationship between debt and power. |
| Keywords: | capital as power, distribution, policy, public debt, ownership |
| JEL: | P1 H6 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:capwps:301396 |
| By: | Paraná, Edemilson |
| Abstract: | From an ‘infrastructural gaze, ’ this chapter examines the penetration of artificial intelligence in capital markets as a blend of continuity and change in finance. The growing infrastructural dimension of AI stems firstly from the evolution of algorithmic trading and governance, and secondly from its rise as a ‘general-purpose technology’ within the financial domain. The text discusses the consequences of this ‘infrastructuralisation’ of financial AI, considering the micro-macro tension typical of capital accumulation and crisis dynamics. Challenging the commonly held notion of AI as a stabilising force, the analysis underscores its connections with volatile, crisis-prone financialised dynamics. It concludes by outlining potential consequences (unpredictability, operational inefficiency, complexity, further concentration) and (systemic) risks arising from the emergence of AI as a ‘new’ financial infrastructure, particularly those related to biases in data and data commodification, lack of transparency in underlying models, algorithmic collusion, and network effects. The text asserts that a thorough understanding of these hazards can be achieved by adopting a perspective that considers the macro-meso-micro connections inherent in infrastructures. |
| Date: | 2024–08–18 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:ub92z |
| By: | Revant Nayar; Minhajul Islam |
| Abstract: | This paper explores the mechanisms behind extreme financial events, specifically market crashes, by employing the theoretical framework of phase transitions. We focus on endogenous crashes, driven by internal market dynamics, and model these events as first-order phase transitions critical, stochastic, and dynamic. Through a comparative analysis of early warning signals associated with each type of transition, we demonstrate that dynamic phase transitions (DPT) offer a more accurate representation of market crashes than critical (CPT) or stochastic phase transitions (SPT). Unlike existing models, such as the Log-Periodic Power Law (LPPL) model, which often suffers from overfitting and false positives, our approach grounded in DPT provides a more robust prediction framework. Empirical findings, based on an analysis of S&P 500 stocks from 2019 to 2024, reveal significant trends in volatility and anomalous dimensions before crashes, supporting the superiority of the DPT model. This work contributes to a deeper understanding of the predictive signals preceding market crashes and offers a novel perspective on their underlying dynamics. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.06433 |
| By: | Rafa? W?? (Nicolaus Copernicus University in Toru?) |
| Abstract: | The comparison between a libertarian community and a communitarian one is presented. This comparison is different from the standard contrast between liberal and communitarian communities. This departure arises from the broad nature of liberalism, posing a challenge in providing a concise definition within this brief presentation. The perception of community may vary among liberals, with some aligning more with libertarians and others with communitarians (Szahaj 2000). Obviously, libertarianism and communitarianism, as ideologies, are not entirely homogeneous. In this context, they are treated as Weberian ideal types (Weber 2011). Essentially, a community based on voluntary relations among free individuals is advocated by libertarianism (Hayek 1958; Rothbard 1992), while communitarianism, regardless of political leaning, presupposes individuals' embeddedness in a community, a larger entity chosen not entirely voluntarily. (Sandel 1982; Taylor 1994). In this presentation, a resolution to this debate is proposed through Actor-Network Theory (ANT), which posits an ontologically flat world comprising actors and their connections. As these connections are not immediately apparent, ANT suggests exploring relationships by tracing the actions of actors (Latour 1993; 2004; 2005). Both libertarianism and communitarianism diverge from this postulate, both of them a priori define a specific worldview and human subjectivity.References:- Hayek Fredrich, ?Individualism and Economic Order?, The University of Chicago Press, 1958.- Latour Bruno, ?We have never been modern?, transl. Catherine Porter, Harvard University Press, 1993.- Latour Bruno, ?Politics of Nature - How to bring the sciences into democracy?, transl. Catherine Porter, Harvard University Press, 2004.- Latour Bruno, ?Reassembling the Social? ? An Introduction to Actor-Network-Theory?, Oxford University Press, 2005.- Rothbard Murray, ?How and How Not to Desocialize?, The Review of Austrian Economics 6:1 (1992). - Sandel Michael, ?Liberalism and the Limits of Justice?, Cambridge University Press, 1982.- Szahaj Andrzej, ?Jednostka czy wspólnota? Spór libera?ów z komunitarystami a ?sprawa polska??, Fundacja ALETHEIA, 2000.- Taylor Charles, ?Sources of the Self. The making of Modern Identity?, Harvard University Press, 1994.- Weber Max, ?Methodology of Social Sciences? transl. Edward A. Shils, Henry A. Finch, Transaction Publishers, 2011. |
| Keywords: | social philosophy; philosophy of culture; political theory; community; libertarianism; communitarianism; ANT |
| URL: | https://d.repec.org/n?u=RePEc:sek:iacpro:14216135 |
| By: | Sasaki, Hiroaki |
| Abstract: | This study builds a Kaleckian model that incorporates endogenous technological progress and investigates how a change in a parameter that directly fosters technological progress affects growth and distribution. In this model, there is an optimal wage share that maximizes the technological progress rate. Accordingly, if the actual wage share can be moved to an optimal level, the economic growth rate will increase. This analysis reveals that a policy that directly promotes technological progress consequently decreases the long-run equilibrium value of the wage share, the capacity utilization rate, the employment rate, and the economic growth rate. |
| Keywords: | endogenous technological progress; education; R\&D; growth and distribution |
| JEL: | E11 E12 E24 E25 O33 O41 |
| Date: | 2024–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121694 |
| By: | Diane Karinganire; Wilson Gachiri; Jean Paul NIZEYIMANA |
| Abstract: | The main purpose of this study was to examine the effect of project management practices on performance of agricultural cooperatives in Rwanda, a case study of VIVACIOUS Cooperative in Gasabo District 2017-2022. Specific the study aimed to explore the influence of monitoring and evaluation on the performance of agricultural cooperative in Gasabo district, to examine the influence of stakeholders on performance of agricultural cooperative in Gasabo District, and to analyse the influence of project leadership experience on performance of agricultural cooperative in Gasabo District. Qualitative data have been analysed using SPSS while qualitative data have been analysed using the thematic method. In order to select the sample size, the researcher adopted universal sampling with 85 respondents. In order to collect data, the researcher used documentation, interview, and questionnaire. Pearson correlation analysis revealed that the overall confirmed that there is significant positive relationship between project management practices and performance of agricultural cooperative in Gasabo district. The study recommended future planning process which will guided by the past records of the project. The management team must clarify the expected failure in their project plan happened while they were making monitoring and then provide possible solution to those problems so that plan money to mitigate those should be estimated and put aside.. Key words: Project, Project Management, Project management practices, Performance, Agricultural cooperatives. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:vor:issues:2024-49-01 |
| By: | Dean, Hartley |
| Abstract: | The article critically reviews concepts and uses of the term altruism in relation to the emergence of the capitalist welfare state. It argues that altruism may be regarded as a fetishized representation of ‘sociality’ and that notions of altruism tend to obscure or distort understandings of the essential social interdependence that characterises humanity as a species. The article reaches back to anthropological evidence, to religious and philosophical influences, and to insights from scientific inquiry and it makes a case for a humanistic switch in perspective within the study of social policy. |
| Keywords: | altruism; fetishism; interdependence; social policy; sociality; species-being |
| JEL: | J1 |
| Date: | 2023–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:115643 |
| By: | Frattini, Federico Fabio; Vona, Francesco; Bontadini, Filippo |
| Abstract: | What are the consequences of green industrialization on the labour market and industry dynamics? This paper tackles and quantifies this question by employing observable and reliable data on green manufacturing production for an extensive set of EU countries and 4-digit manufacturing industries for over a decade. First, at a descriptive level, this paper documents that potentially green industries outperform the others in terms of employment, average wages, value added and productivity, net of controlling for other drivers of the labour market and industry dynamics. Second, employing a shiftshare instrument to purge the analysis from possible endogeneity within green potential industries, this paper finds that an expansion of green production implies an increase in employment and value added. In contrast, average wages and labour productivity remain unchanged. These results hold in the short and long term, are heterogeneous depending on the countries considered, and are amplified by existing industry specialization and by accounting for input-output linkages. |
| Keywords: | Climate Change, Environmental Economics and Policy, Political Economy, Sustainability |
| Date: | 2024–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:344791 |
| By: | Bichler, Shimshon; Nitzan, Jonathan |
| Abstract: | Our recent article on ‘The Road to Gaza’ examined the history of the three supreme-God churches and the growing role of their militias in armed conflicts and wars around the world. The present paper situates these militia wars in the broader vista of the capitalist mode of power. Focusing specifically on the Middle East, we show the impact these militia wars have on relative oil prices and differential oil profits and explain how the wars themselves, those who stir them and the subjects that fight them all get discounted into capitalized power. |
| Keywords: | capitalization, church, corporation, differential accumulation, dominant capital, energy conflicts, Gaza, Middl East, militias, oil, OPEC, religion, war, Weapondollar-Petrodollar Coalition |
| JEL: | P00 P1 P12 P18 H56 N4 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:capwps:301398 |
| By: | Marketa Mala (Institute of Economic Studies, Charles University, Prague, Czech Republic) |
| Abstract: | This paper explores foreign engagements of socialist enterprises in non-socialist countries during the late stage of socialism in Central Europe. It shows that, contrary to popular belief, phenomena such as Foreign Direct Investment (FDI) and Multinational Enterprises (MNEs) were relevant in the context of former socialist countries. Using Å koda Works as a case study and drawing upon previously unused archival data, this paper outlines an alternative model of international expansion of firms that prioritizes securing future export markets over the typical capitalist focus on equity and profit. This paper also highlights country-level differences of Skoda Works´ activities, the bonuses tied to export quotas and profit targets incentivizing managers to pursue foreign activities, or the considerable autonomy of the enterprise in its foreign operations despite the overarching control of the socialist state, which influenced its activities through high-level bilateral agreements, financing, and foreign exchange targets. By employing the approach of a detailed case study placed within the broader context of the era and the region, the paper contributes to a more comprehensive and nuanced understanding of the subject and it enriches the predominantly Hungaryand Poland-focused literature with insights from Czechoslovakia. Additionally, the paper contributes to the ongoing critical debate on the challenges and impacts associated with the operations of international businesses and offers valuable perspectives for future research in this area. |
| Keywords: | International Business under Socialism, Foreign Direct Investment (FDI), Socialist Multinational Enterprises (MNEs), Socialist Central Europe, Non-equity Foreign Operations, Skoda Works |
| JEL: | F23 N74 N84 P31 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2024_27 |
| By: | Gallardo, Rocío Jazmín; Cutuli, Romina; Labrunée, María Eugenia |
| Abstract: | En Argentina las responsabilidades del cuidado están distribuidas de forma desigual entre distintos actores, afectando principalmente a mujeres y sectores populares. En este sentido, se detecta al Programa de Responsabilidad Social Compartida Envión Puerto como una de las pocas políticas públicas que el Estado decide definir con formato de corresponsabilidad para acompañar a juventudes desde los 12 años. En el siguiente trabajo se analiza su impacto en la organización social del cuidado considerando el vínculo con actores e instituciones zonales, con una perspectiva cualitativa. Como resultados de la investigación detectamos una fuerte corresponsabilidad con instituciones territoriales, no así con el sector privado. |
| Keywords: | Programas Sociales; Políticas Públicas; Mar del Plata; |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4167 |
| By: | Popov, Vladimir |
| Abstract: | This is a book about modern China, mainly about the economy (about half the text), but also about culture, history, religion, and politics. There are three main issues discussed in the book: (1) Why did China (and earlier other countries and territories of East Asia, largely based on the Chinese model – Japan, Korea, Taiwan, Southeast Asian countries) in the 18-19 centuries started to lag behind not only the West, but even many developing countries (Russian Empire, Latin America)? (2) Why since the middle of the 20th century have these countries and territories became the only major region that started to close the gap in economic development levels with the West? (3) Is the Chinese economic and social model (based on “Asian values”, the primacy of public over private interests) more competitive than the liberal Western model and how will their competition end? It is generally believed that the economic success of the West during and after the transition to capitalism is associated with the expansion of human rights (the abolition of slavery and serfdom, guarantees of property rights and contracts). In contrast, this book argues that the rise of the West has less to do with securing individual freedoms and more to do with rising rates of saving and investment as a result of the destruction of the agricultural community and associated rise in the inequality in income distribution. The expansion of human rights became later a consequence of economic success, a kind of luxury that successful and competitive countries could afford. Today, however, the liberal Western model is experiencing increasing difficulties. The unwillingness to limit human rights in a variety of areas (refusal to introduce progressive taxation and active income regulation, leading to increased inequality, indecisiveness in limiting greenhouse gas emissions in rich countries, inability to cope with populism in the media and in politics) stimulates internal conflicts, reduces competitiveness as compared to countries that more aggressively restrict the rights of individuals for the sake of the common good. The liberal West is beginning to lose out to collectivist East Asia, the Middle East and partly South Asia in economic and social progress. |
| Keywords: | Chinese model, economic growth, Great Divergence, convergence, inequality, liberalism |
| JEL: | N0 O1 O40 O47 P0 P2 P20 P27 P51 |
| Date: | 2024–08–23 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121802 |
| By: | Arias Rodríguez, Mateo (Universidad Nacional de Colombia) |
| Abstract: | Desde una perspectiva histórica y filosófica, este ensayo busca vincular el reciente proceso de financiarización de la economía mundial con un proceso de evolución social reaccionario donde las nuevas condiciones productivas acercan al sistema más a una nueva forma de feudalismo que a alguna forma de capitalismo o de socialismo. Con esto mente, la primera parte de este escrito analiza las características del feudalismo; la segunda, tercera y cuarta la evolución del capitalismo; la quinta el papel de la financiarización y la Inversión Extranjera Directa (IED) en las crisis macroeconómicas recientes, la sexta entrada se discute el concepto de ‘Tecnofeuda-lismo’ como una subsiguiente etapa del imperialismo; y finalmente se presentan conclusiones hilando sobre lo expuesto. |
| Keywords: | Financiarización; IED; Tecnofeudalismo; Pensamiento Económico; Historia Económica; Economía Política; Crisis. |
| JEL: | E44 F54 N20 |
| Date: | 2022–11–06 |
| URL: | https://d.repec.org/n?u=RePEc:col:000538:000045 |
| By: | Yu-Hao Huang; Chang Xu; Yang Liu; Weiqing Liu; Wu-Jun Li; Jiang Bian |
| Abstract: | Order flow modeling stands as the most fundamental and essential financial task, as orders embody the minimal unit within a financial market. However, current approaches often result in unsatisfactory fidelity in generating order flow, and their generation lacks controllability, thereby limiting their application scenario. In this paper, we advocate incorporating controllability into the market generation process, and propose a Diffusion Guided meta Agent(DiGA) model to address the problem. Specifically, we utilize a diffusion model to capture dynamics of market state represented by time-evolving distribution parameters about mid-price return rate and order arrival rate, and define a meta agent with financial economic priors to generate orders from the corresponding distributions. Extensive experimental results demonstrate that our method exhibits outstanding controllability and fidelity in generation. Furthermore, we validate DiGA's effectiveness as generative environment for downstream financial applications. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.12991 |
| By: | Mouré, Christopher |
| Abstract: | Much of the economic analysis of banking crises focuses on the interplay between concentration and stability. A common theory is that concentration is associated with greater stability, whereas competition is associated with instability. In this view, there is a trade-off between, on the one hand, the higher prices and higher profits associated with a banking cartel, and on the other, frequent banking crises and lower prices caused by a fragmented sector. However, this theory is not entirely convincing. Principally, it tends to treat competition and concentration as independent variables, whereas in reality, causality works both ways: banks actively work to transform the structure of the system and transcend apparent constraints – whether through coordinating interest rates, influencing policy, or by transforming the business landscape through corporate amalgamation. In addition, the last two major banking crises in the US occurred in dramatically different conditions of concentration from one other, complicating any obvious empirical connection between concentration and stability. In this paper, I try to move beyond this hypothesis by investigating the relationship between corporate concentration and banking stability through the lens of organized power. Using a combination of quantitative and qualitative analyses, I make two claims. First, since the 1980s, the differential profitability of large banks has been driven by corporate amalgamation. Second, crises tend to be followed by an increase in the pace of amalgamation. As a result, since the 1980s, banking crises have preceded a dramatic redistribution of resources and control to a handful of large banks. While it is not clear that concentration makes a banking crisis less likely, the evidence suggests that crisis makes concentration more likely. Though the research presented here is only tentative and exploratory, it indicates that since the 1980s, large banks have remade the business and regulatory landscape in ways that defy the logic of a simple binary relationship between concentration and stability, and that this needs to be taken into account when analysing the dynamics of banking crises. |
| Keywords: | banks, capital as power, concentration, crisis, mergers & acquisitions, United States |
| JEL: | G G2 G3 G01 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:capwps:301397 |
| By: | Yolande François (ISEOR - Institut de Socio-économie des Entreprises et des ORganisations - Institut de socio-économie des entreprises et des organisations) |
| Abstract: | This article explores the notion of group ethics and its role in corporate ethical practice. It highlights the importance of the group of actors in the construction of collective ethics, as well as the inseparability between ethics and the actor in the predictability of the group. The article also highlights the conflictual nature of ethics within the group, and the need to find solutions to manage these conflicts. Finally, it highlights the role of free will and the ability to act in the realization of collective ethics. |
| Keywords: | group ethics values actors free will conflict resolution, group ethics, values, actors, free will, conflict resolution |
| Date: | 2024–08–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04666361 |
| By: | Sasaki, Hiroaki; Asada, Yasukuni; Sonoda, Ryunosuke |
| Abstract: | This study extends Goodwin’s growth cycle model by considering low- and high- skilled workers. Using the parameters obtained from the Japanese economy data, we conduct numerical simulations to reproduce Japanese business cycles. We investigate how the introduction of the minimum wage share and reduction in the wage gap between low- and high-skilled workers affect the wage share and employment rates. The results reveal that introducing the minimum wage share diminishes the amplitude of the fluctuations in both the wage shares and employment rates of the two types of workers. Reducing the wage gap decreases the amplitude of fluctuations in the wage share and employment rate of high-skilled workers and increases the amplitude of fluctuations in the wage share and employment rate of low-skilled workers. |
| Keywords: | growth cycles; low- and high-skilled workers; minimum wage share; wage gap |
| JEL: | E24 E25 E32 |
| Date: | 2024–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121695 |
| By: | Miller, Anne |
| Abstract: | Two propositions are required to introduce separate needs into utility theory. Firstly, the shape of the utility function must represent the different stages of fulfilment of a need as experienced by a consumer: deprivation, subsistence, sufficiency, satiation, surfeit. The second proposes weak separability for the utilities of commodities fulfilling the same need, and strong separability for different needs. A utility function, formed from the addition of two leaning-S-shaped, bounded cardinal utilities with satiation at infinity, is used to create an indifference curve map. Functional forms for the leisure-consumption choice are derived and their diagrams drawn – labour supply, consumption demand and their Engels curves. The main outcomes are: * Concave- and convex-to-the-origin indifference curves, (the former defining ‘dysfunctional poverty), are separated by a straight-line indifference curve, BA, (the slope of which is defined by relative-intensities-of-need), identifiable as an absolute poverty line. It leads to disequilibrium in the derived functional forms. * Each commodity responds as superior, inferior and even Giffen, in different areas of the convex-to-the-origin indifference curves. Their boundaries are reflected in envelope curves in the derived functional form diagrams. * An individual’s labour supply responses vary markedly according to three levels of unearned consumption/income, representing dysfunctional poverty (involuntary unemployment), functional poverty (working, but deprived of either leisure or consumption) and sufficiency. * The reservation wage is a U-shaped function of endowments of unearned consumption. The functional form’s parameters have meaningful psychological interpretations. The concept of separate needs in utility offers a new dimension in labour supply theory. |
| Keywords: | leaning-S-shaped utility, additive utilities, absolute poverty line, disequilibrium, Giffen good, envelope curve, involuntary unemployment, functional poverty, reservation wage |
| JEL: | D11 J22 |
| Date: | 2024–08–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121671 |
| By: | Polterovich, Victor |
| Abstract: | The concept of the VAN- consortium is introduced. It is a consortium, distinguished by two specific features. Firstly, it includes a group of enterprises that carry out successive stages of production of one or more products. Secondly, the tasks of a VAN- consortium include the development and implementation of projects for the creation and/or implementation of new technologies intended for use in its network, including by enterprises from various sectors of the national economy. Therefore, it should iincorporate organizations capable of performing such tasks, possibly with the involvement of temporary participants - research and project institutes. Members of the consortium retain their independence. Coordination of their activities is carried out by a coordination council formed from their representatives. Real examples show that consortia of this type are capable of ensuring the formation and functioning of domestic value-added networks (VANs). Such networks are necessary for the technological development of a country under severe sanctions pressure. The creation of VAN-consortia could become an important element of indicative plans, and government support would contribute to the development of the VAN-consortium as a collaborative institution. |
| Keywords: | consortium, sanctions, trust, technological development, indicative plan |
| JEL: | B52 D02 O12 O25 O33 P21 |
| Date: | 2024–08–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121661 |