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on Heterodox Microeconomics |
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Issue of 2024‒09‒30
sixteen papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Ramirez Chaparro, Maria Nathalia; Chacón Mejía, Catalina |
| Abstract: | The article critiques the linear, economically focused definitions of poverty that objectify individuals and perpetuate inequality, advocating for a nuanced understanding of poverty as an adaptive, dynamic phenomenon shaped by systemic instabilities and market failures. It highlights how urban poverty manifests through inadequate housing, lack of services, unemployment, and social exclusion, despite economic growth. Viewing cities as complex systems with interconnected components and feedback loops, the article suggests using complexity theory to understand urban poverty's emergent properties like self-organization and resilience. It connects urban poverty to globalization, technological changes, spatial segregation, and inadequate social safety nets, calling for a holistic approach that integrates economic systems, social structures, and public policies to foster equitable urban development and mitigate poverty. |
| Keywords: | complexity studies, poverty, economics of poverty |
| JEL: | O1 O10 O3 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121007 |
| By: | Bezencry, Gabriel F.; Jensen, Nicholas; Smith, Daniel J. |
| Abstract: | This paper examines the writings of socialist scholars who played a pivotal role in shaping Hayek’s perspective in TRTS, including William Beveridge, Stuart Chase, Henry Dickinson, Hugh Dalton, Evan Durbin, Oskar Lange, Harold Laski, Abba Lerner, Barbara Wootton, and the contributing authors in Findlay Mackenzie’s Planned Society (1937). Many of these socialist thinkers held two main hypotheses. First, industrial concentration was inevitable under capitalism. Second, they argued that government ownership or control of key economic sectors was necessary to protect democracy from industrial consolidation in the capitalist system and to reduce political opposition to complete state ownership or control over the means of production. Despite sharing Hayek’s concern for socialism’s potential erosion of democratic freedoms, these socialist hypotheses have received much less scholarly attention than Hayek’s TRTS. We conclude that Hayek formalized socialist scholars’ fears and developed a well-defined hypothesis that central planning could threaten democratic freedoms. |
| Date: | 2024–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:vad37 |
| By: | Corneliu Ben Buzguta (Aurel Vlaicu University Arad, Romania) |
| Abstract: | This paper delves into the philosophical underpinnings and theological significance of the concepts of Eros and Agape, exploring their origins, and implications in their respective contexts. In examining Plato's dialogues "Symposium" and "Phaedrus, " the fundamental aspects of Eros in his philosophy are investigated, discussing its enduring influence and relevance today. Following this, the concept of Agape in Christian thought is explored, focusing on its presentation in the New Testament and the innovative perspectives it brought to the understanding of love. Key aspects of Agape love in Christian thought are identified, illustrating how Agape reconsiders religious and moral values, transforming traditional thinking. The paper concludes by discussing the opposition and similarities between Eros and Agape, emphasizing that interdisciplinary research on love is prolific and remains open to new avenues of investigation. Both concepts challenge individuals to transcend immediate desires and embrace a more expansive vision of love, encompassing personal growth and selfless devotion. The ongoing dialogue between Eros and Agape continues to enrich our understanding of love and its role in the human experience, providing practical guidance for living a life grounded in love, wisdom, and compassion. |
| Keywords: | eros, agape, Plato, Christian thought, love |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0413 |
| By: | Jakob Kapeller (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Institute for Socio-Economics, University of Duisburg-Essen, Germany); Anna Hornykewycz (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria); Jan David Weber (Institute for Socio-Economics, University of Duisburg-Essen, Germany); Lukas Cserjan (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria) |
| Abstract: | Der Gebaeudesektor stellt einen Schluesselsektor für eine erfolgreiche Dekarbonisierung Deutschlands dar und bildet damit eine wesentliche Schnittstelle zur Erreichung der gesamtgesellschaftlichen Klimaziele. Vor diesem Hintergrund versucht dieser Policy Brief, den noetigen Sanierungsbedarf zur Erreichung einer solchenDekarbonisierung zu bestimmen, die damit verbundenen Kosten zu schätzen und Vorschläge für mögliche Finanzierungsmodelle einer solchen Transformation des Gebaeudesektors vorzulegen. Darueber hinaus werden auch die oekonomischen Auswirkungen der untersuchten Transformationsstrategie - wie damit verbundene Wachstums- und Beschaeftigungseffekte sowie technologische und organisatorische Innovationspotentiale - diskutiert. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ico:wpaper:156 |
| By: | Hipólito, Inês |
| Abstract: | This paper applies complex systems theory to examine generative artificial intelligence (AI) as a contemporary wicked problem. Generative AI technologies, which autonomously create content like images and text, intersect with societal domains such as ethics, economics, and governance, exhibiting complex interdependencies and emergent behaviors. Using methodologies like network analysis and agent-based modeling, the paper maps these interactions and explores potential interventions. A mathematical model is developed to simulate the dynamics between key components of the AI-society system, including AI development, economic concentration, labor markets, regulatory frameworks, public trust, ethical implementation, global competition, and distributed AI ecosystems. The model demonstrates non-linear dynamics, feedback loops, and sensitivity to initial conditions characteristic of complex systems. By simulating various interventions, the study provides insights into strategies for steering AI development towards more positive societal outcomes. These include strengthening regulatory frameworks, enhancing ethical implementation, and promoting distributed AI ecosystems. The paper advocates for using this complex systems framework to inform inclusive policy and regulatory strategies that balance innovation with societal well-being. It concludes that embracing complexity enables stakeholders to better navigate the evolving challenges of generative AI, fostering more sustainable and equitable technological advancements. |
| Date: | 2024–08–29 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:aq4tw |
| By: | Ivan Prates Sternick (Cedeplar/UFMG e PHARE/Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | This article reconsiders the status of the so-called four stages theory in Smith’s work, and its relationship with the historical accounts of the Lectures on Jurisprudence and Book III of the Wealth of Nations (WN). The article discusses some recent contributions to the literature, which claim that the stadial theory is either a kind of fictitious economic model or a counterfactual thought experiment completely divorced from historical experience. These interpretations usually conflate the stadial theory and what Smith presents as the “natural progress of opulence†in book III of WN, and accordingly imply there is a separation between a priori theory (economic model) and empirical history in Smith’s work. We will argue that, though the FST is indeed presented as a thought experiment, the progression depicted in it from shepperding to agrarian and then to commercial societies, in Smith’s vision, was actually followed by Antient Greece and Modern Europe. And that, therefore, it should not be conflated with the model of the “natural progress of opulence†, but rather that they fulfill different analytical roles in Smith’s work. |
| Keywords: | Adam Smith; Four Stages Theory; Philosophical History; Conjectural History |
| JEL: | B10 B11 B12 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:cdp:texdis:td675 |
| By: | Ahmet Faruk Aysan (HBKU - Hamad Bin Khalifa University [Doha, Qatar]); Ibrahim Musa Unal (HBKU - Hamad Bin Khalifa University [Doha, Qatar]) |
| Abstract: | Islamic finance, based on ethical investing principles and socio-economic justice, has the potential to tackle worldwide financial difficulties and advance sustainable development. This article examines Islamic finance's historical background, present condition, and prospects, focusing on its compatibility with Environmental, Social, and Governance (ESG) standards and sustainable development goals (SDGs). Throughout its history, Islamic finance has developed from its initial focus on fairness and societal accountability to become a complex business that includes Sukuk, Islamic banking, and Takaful. The industry encounters obstacles such as discrepancies in regulations and fluctuations in the economy while also having prospects for expansion and incorporation into the global financial system. Global uncertainties, such as technological upheavals and socio-political dynamics, require Islamic finance to possess resilience and adaptation. The future of Islamic finance hinges on its ability to incorporate ESG (Environmental, Social, and Governance) and sustainability factors. This can be achieved by utilizing novel financial instruments such as Green Sukuk and Social Impact Sukuk, which aim to raise funds for projects with positive environmental and social impacts. Strategic measures such as standardization, increasing awareness, improving regulations, and creating capacity are essential for promoting the integration of ecological, social, and governance (ESG) factors. The capacity of Islamic finance to appeal to socially aware investors and promote sustainable economic growth highlights its crucial role in establishing a fairer and more robust global financial system. This article offers valuable insights and suggestions on utilizing Islamic finance's ethical principles to promote sustainable development and enhance economic resilience. |
| Keywords: | Islamic Finance, Historical, Future, Finance |
| Date: | 2024–05–22 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04669980 |
| By: | Beyer, Jürgen |
| Abstract: | This article describes the evolution of the discussion around the concept of path dependence, which has established itself as an explanatory framework in various academic disciplines, including policy research. It outlines the diversity of conceptual ideas, presents efforts at specification that have helped to further multiply the interpretive possibilities of the concept, and illustrates the application of the concept in social and environmental policy. In the two policy fields, the concept is significant for the scientific debate in different ways, which indicates that the meaning of concepts is shaped by the respective discussion environment. The article shows that the ambiguity of the concept has not hindered its further application. There are now many different plausible reference points for dealing with the concept of path dependence in policy research. |
| Date: | 2024–08–26 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:4nhxk |
| By: | Rusch, Hannes (RS: GSBE UM-BIC, Microeconomics & Public Economics, RS: GSBE other - not theme-related research); Vostroknutov, Alexander (RS: GSBE UM-BIC, RS: GSBE other - not theme-related research, Microeconomics & Public Economics) |
| Abstract: | Social norms have become a conceptual cornerstone in the study of human decision making across the social sciences. The functions of social norms in guiding individual and collective decision-making have been extensively scrutinized empirically, too. However, possible evolutionary origins of the psychological mechanisms required to carry out these functions are less well understood. In particular, trajectories from individually adaptive to socially functional heuristics for norm formation have rarely been studied. Here, we trace such a trajectory. We present a model that allows for the comparison of two heuristics broadly applicable across individual and social decision contexts: ‘rejoicing’ own achievements vs. ‘regretting’ missed opportunities. We find that (i) both perform better than the homo oeconomicus benchmark in individual decision problems under plausible ecological assumptions and (ii) each is adaptive in different environments. We argue that observation (i) provides a potent microfoundation for social norms as a product of co-optation of individually evolved heuristics, i.e., a reduction of social norm formation to the evolution of individual traits. Moreover, observation (ii) lends itself to empirical testing, thus laying the ground for a new wave of studies in the literature fascinated with human norm psychology. |
| Date: | 2024–09–09 |
| URL: | https://d.repec.org/n?u=RePEc:unm:umagsb:2024011 |
| By: | Keita, Moussa |
| Abstract: | Since the 17th century, the question of the economic valuation of time (in particular the working time) has been at the center of debates among economists, from classicists to neoclassicists, Marxists to contemporary schools of thought. Today, with the advent of the digital age, characterized by the pronounced robotization and digitalization of common uses in society, the question of the economic value of time remains more relevant than ever. By supporting it with the new consumer theory, this article attempts to contribute to economic theory by providing new insights of the foundations of the economic value of time. To this end, we propose a mathematical formalization in which economic time results from the combination of physical time and the mobilization of a set of physico-cognitive resources that can be assimilated to effort. |
| Keywords: | Allocation du temps, effort, pénibilité |
| JEL: | D01 D11 D13 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121886 |
| By: | Julia M. Puaschunder (Columbia University, USA) |
| Abstract: | One of the hallmarks of macroeconomics is the Keynesian multiplier. John Maynard Keynes described the multiplying effect of new investments in the economy to have multifaceted influences on the overall wellbeing of nations. The notion that investments drive economic activity and growth is consolidated with many empirical findings in different domains. Interestingly, hardly any account exists on intertemporal aspects of Keynes’ multiplier. The discounting and temporal elements of multiplying effects and the time-lag for investments to bloom in the economy are – to this day – not captured. Behavioral economics offers ample account on discounting. People are found to focus on the present rather than discounting for future instances properly. Integrating a temporal element into the Keynesian multiplier effect offers opportunities to understand the long-term benefits of green investments. Environmentally-conscientious finance has seen an advent in most recent decades. To this day, however, there is no clear account of the performance of green funds. Temporal aspects in Keynes’ multiplier may help understand the difficulty in determining the long-term advantages of green investments. Adding information on the long-term benefits of green funds may also serve contemporary endeavors to capture wealth in nature. This article is organized as follows: First, an introduction describes Keynes’ multiplier and temporal discounting. Then the need for integrating temporal aspects into Keynes’ multiplier is outlined. The application of temporal Keynes’ multiplier aspects in the green investment domain is provided. The discussion closes with a prospect for future research avenues. |
| Keywords: | behavioral economics, economics, finance, green funds, green investments, Keynes’ multiplier, sustainability, temporal discounting |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0380 |
| By: | Iosif Anca (Aurel Vlaicu University of Arad, Romania) |
| Abstract: | Recognizing the vulnerabilities of debtors, C. H. Spurgeon, through his rich imagination, wanted to offer a model of good practice that rejects any lending that is not fully covered by the borrower's financial possibilities or material assets. In doing so, he sought to draw attention to the risks that those who resort to such practices run and the inappropriateness of excuses for those who can no longer pay the debts they have incurred. Spurgeon argues that financial ignorance and immaturity cost enormously when one resorts to borrowing. On the other hand, this paper will investigate Spurgeon's openness to forms of borrowing that do not involve any further cost except gratitude or thanksgiving. The analysis will focus on how he approached God's grace given to humanity, but also on His great work in creation or in our fellow man, in which he considered that we find an inexhaustible source of resources that one can borrow without fear of having something to lose. |
| Keywords: | Spurgeon, loans, creditors, refunds |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0411 |
| By: | Chavis, Larry (Institute for American Indian Arts); Wheeler, Laurel (University of Alberta, Department of Economics) |
| Abstract: | We contribute to the effort to build a more inclusive discipline by offering lessons and teaching strategies derived from the Indigenous peoples of North America. Our proposed relational approach to teaching provides a framework that accommodates many practices already gaining traction in economics. Drawing on the literature on inclusive teaching practices as well as personal narratives from the classroom, we propose a set of principles of Indigenous-influenced economics courses, and we talk about how to translate those principles into applied teaching strategies. We believe borrowing from Indigenous pedagogies can build belonging and community in our classrooms, thereby contributing to a discipline that is more welcoming of a broader range of students. |
| Keywords: | teaching economics; Indigenous; Native American; First Nations; diversity; inclusion |
| JEL: | A20 |
| Date: | 2024–09–16 |
| URL: | https://d.repec.org/n?u=RePEc:ris:albaec:2024_005 |
| By: | Giacomo Damioli (BETA, Université de Strasbourg, Strasbourg, France); Vincent Van Roy (Faculty of Business and Economics, KU Leuven, Belgium - Idea Consult, Belgium); Daniel Vertesy (International Telecommunication Union, Geneva, Switzerland – UNU-MERIT, Maastricht, The Netherlands); Marco Vivarelli (Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy – UNU-MERIT, Maastricht, The Netherlands – IZA, Bonn, Germany) |
| Abstract: | Artificial intelligence (AI) is emerging as a transformative innovation with the potential to drive significant economic growth and productivity gains. This study examines whether AI is initiating a technological revolution, signifying a new technological paradigm, using the perspective of evolutionary neo-Schumpeterian economics. Using a global dataset combining information on AI patenting activities and their applicants between 2000 and 2016, our analysis reveals that AI patenting has accelerated and substantially evolved in terms of its pervasiveness, with AI innovators shifting from the ICT core industries to non-ICT service industries over the investigated period. Moreover, there has been a decrease in concentration of innovation activities and a reshuffling in the innovative hierarchies, with innovative entries and young and smaller applicants driving this change. Finally, we find that AI technologies play a role in generating and accelerating further innovations (so revealing to be “enabling technologies”, a distinctive feature of GPTs). All these features have characterised the emergence of major technological paradigms in the past and suggest that AI technologies may indeed generate a paradigmatic shift. |
| Keywords: | Artificial Intelligence, Technological Paradigm, Structural Change, Patents |
| JEL: | O31 O33 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ctc:serie5:dipe0038 |
| By: | Jamie Rainey (Department of Computer Science and Information System, Kalasin University) |
| Abstract: | This article examines the intersection of technological resilience and sustainable dwelling design in the context of hydrogen production, with a focus on the potential role of epigenetic mechanisms. As the global energy landscape shifts towards cleaner alternatives, hydrogen production emerges as a critical component. However, the success of hydrogen as a sustainable energy source depends on the resilience of the technologies involved and their integration into everyday life, including the design of sustainable dwellings. This study explores how epigenetic mechanisms, which influence gene expression without altering DNA sequences, could play a role in enhancing the resilience of hydrogen production technologies. The article also discusses how these advances can be integrated into sustainable dwelling designs, contributing to a more robust and adaptive energy future. This study explores the intersection of technological resilience in hydrogen production with epigenetic mechanisms and sustainable dwelling designs. As hydrogen production advances towards becoming a cornerstone of clean energy, understanding how to enhance its resilience against technological disruptions is crucial. This research investigates the role of epigenetic mechanisms in optimizing microbial processes for hydrogen production, which can be influenced by environmental factors associated with sustainable dwelling designs. By integrating principles of sustainable architecture with cutting-edge biotechnological insights, the study aims to develop robust, adaptable systems that improve hydrogen production efficiency while fostering environmental sustainability. The findings reveal how epigenetic adaptations in microorganisms can be leveraged to enhance hydrogen production processes, and how integrating these insights with green building practices can further support the creation of resilient, eco-friendly energy systems. |
| Keywords: | dwelling, epigenetic mechanisms, hydrogen production, technological resilience |
| Date: | 2024–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04670052 |
| By: | Mónica E. OROZCO; Rocío ESPINOSA; Claudia FONSECA; Melanie MARCHANT; Roberto VELEZ-GRAJALES |
| Abstract: | In this study, we shed light on the connections between social mobility and social protection related to care. The objective is to examine women's opportunities for choice and life achievements in terms of social mobility. In particular, it proposes a broader human development approach that, beyond education, health, and social security, integrates the contribution of both paid and unpaid care work to individuals' wellbeing and social mobility. The results confirm that early childhood care services and care for other population groups, lifelong social security in the households of origin, and women's opportunities to participate in the labour market have positive effects on their social mobility and thus contributes to reducing inequality. |
| JEL: | Q |
| Date: | 2024–08–21 |
| URL: | https://d.repec.org/n?u=RePEc:avg:wpaper:en17239 |