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on Heterodox Microeconomics |
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Issue of 2024‒10‒21
eightteen papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Manuel Alejandro Cardenete; M. Carmen Lima; Ferran Sancho |
| Abstract: | The input-output (I-O) model is a widely used tool to study the linkage structure of an economy and assess the effects of policies. The model is made up of two modules that describe the underlying forces that govern quantities and prices, but there is no connection between these modules as they reside in unconnected spheres: prices do not interact with quantities, and quantities, in turn, do not interact with prices. Because of this, the I-O model has been questioned for its limited descriptive capacity when a more comprehensive assessment exercise is required. This work tries to contribute an improvement to the explanatory capacity of the I-O model. We develop an extension of the classic I-O price and quantity models to an integrated "price-quantity" model that connects the two modules and makes them interdependent. This new version of the model could be useful to advance the explanatory capacity of I-O analysis without having to resort to the use of computational general equilibrium (CGE) models. As we know, CGE models are more complex in their structure and costlier to implement in terms of required data than I-O models. We use this integrated I-O model to evaluate the impact of NextGenerationEU funds on the Spanish economy using data from a Social Accounting Matrix (SAM) for 2016, the last year with official I-O data. |
| Keywords: | price-quantity feedback, social accounting data, impact evaluation |
| JEL: | C67 D57 E37 |
| Date: | 2023–07 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1396 |
| By: | Naudé, Wim (RWTH Aachen University) |
| Abstract: | This paper discusses four dimensions of the economics of AI that are neglected in business school and university teaching and research. First, students are not being taught that there is no 4th Industrial Revolution; on the contrary, the narrative of the inevitability and wonders of the 4IR is a vital staple of the curricula. Second, students are rarely told that we do not live in a technologically disruptive era; on the contrary, the mantra of "disrupt or else be disrupted" in a world of ceaseless innovation is drummed into students. Third, little is discussed about AI's scaling problem - it faces ecological constraints due to being an energy and water guzzler. Fourthly, business schools largely fail to create awareness that AI has essentially become a project of platform capitalism (techfeudalism) and that the last extraction zone it is being applied to is the Military Industrial Complex (MIC), in furtherance of the Permanent War Economy. Implications for AI governance and business school teaching and research are drawn from this big picture. |
| Keywords: | Artificial Intelligence, capitalism, economic growth, climate change, war |
| JEL: | P18 P17 N40 Q55 O33 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17306 |
| By: | Truc, Alexandre; Claveau, François; Herfeld, Catherine; Larivière, Vincent |
| Abstract: | This study examines gender diversity among authors in philosophy and methodology of economics, comparing it to the disciplines of economics and philosophy. Using bibliometric methods, we find that philosophy and methodology of economics, as an interdisciplinary field, consistently had a lower share of women authors than its parent disciplines, which are the two social sciences and humanities disciplines that are the furthest from gender parity. Although homogeneity compounding generally characterizes the whole field of philosophy and methodology of economics, one small and temporary subfield, making contributions to heterodox economics, structural realism, and the discussion on pluralism in economics, constituted a pocket of gender diversity. Alongside a more general discussion of possible reasons behind the striking gender imbalance in the field, we also elaborate on possible reasons for the limited size and duration of this pocket of diversity. |
| Date: | 2024–09–18 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:ck6s9 |
| By: | Kei Nakagawa; Masanori Hirano; Kentaro Minami; Takanobu Mizuta |
| Abstract: | The AI traders in financial markets have sparked significant interest in their effects on price formation mechanisms and market volatility, raising important questions for market stability and regulation. Despite this interest, a comprehensive model to quantitatively assess the specific impacts of AI traders remains undeveloped. This study aims to address this gap by modeling the influence of AI traders on market price formation and volatility within a multi-agent framework, leveraging the concept of microfoundations. Microfoundations involve understanding macroeconomic phenomena, such as market price formation, through the decision-making and interactions of individual economic agents. While widely acknowledged in macroeconomics, microfoundational approaches remain unexplored in empirical finance, particularly for models like the GARCH model, which captures key financial statistical properties such as volatility clustering and fat tails. This study proposes a multi-agent market model to derive the microfoundations of the GARCH model, incorporating three types of agents: noise traders, fundamental traders, and AI traders. By mathematically aggregating the micro-structure of these agents, we establish the microfoundations of the GARCH model. We validate this model through multi-agent simulations, confirming its ability to reproduce the stylized facts of financial markets. Finally, we analyze the impact of AI traders using parameters derived from these microfoundations, contributing to a deeper understanding of their role in market dynamics. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.12516 |
| By: | Worrawoot Jumlongnark |
| Abstract: | This article explores the challenges and opportunities faced by the Bank for Agriculture and Agricultural Cooperatives (BAAC) in Thailand from a microfinance perspective. It examines the role of BAAC as a specialized financial institution in assisting underprivileged households and small businesses in accessing financial services. The study highlights the political exploitation of BAAC for populist strategies and the negative impact of corruption on the effectiveness of its operations. Additionally, it discusses the rice-pledging policy in Thailand, which was driven by political motivations and resulted in significant losses for the government. The article emphasizes the need for sustainable development strategies and decreased political interference to enhance the performance of BAAC and effectively support farmers and the poor in Thailand. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.03157 |
| By: | Alexandre Truc (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur); Dorian Jullien (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - École d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | This paper studies the controversy on Fehr and Schmidt's model of inequity aversion. It borrows insights from disciplines such as philosophy and the sociology of science that have specialized in studying scientific controversies. Our goal is to contribute to the historical and methodological literature on behavioral economics, which happens to have neglected behavioral economists' research on social preferences. Our analysis of the controversy reveals some new insights about the relation of behavioral economics with other sub-fields in economics, as well as with other disciplines. |
| Keywords: | Controversies, Behavioral Economics, Rhetoric, Social Preferences, Norms, Inequity Aversion |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cesptp:hal-04719263 |
| By: | Ganguly, Sujata; Nikolova, Elena |
| Abstract: | This chapter argues that gender equality and economic development are tightly intertwined, and that gender aspects should be an essential consideration for economic development. The chapter starts by developing a conceptual framework explaining how gender equality and economic development influence each other. In particular, the framework emphasizes the interaction between SDG 5 (gender equality), SDG 3 (good health and well-being) and SDG 4 (quality education). It then applies the developed framework to discuss how gender affects economic development in four broad domains with reference to the green economy. First, the chapter discusses the links between gender and economic development in employment and social protection, followed by unpaid work and the care economy. Second, the chapter discusses how we can bridge the gap between the green economy and gender inequality. Finally, the chapter points out that the post-COVID-19 recovery can be exploited as a window of opportunity to initiate a development model that encompasses gender inclusiveness and the green economy. The chapter concludes with recommendations for gender-sensitive programmes and policies that can be used by governments to fast-track economic development and growth, and to build inclusive and resilient societies. |
| Keywords: | Green economy, Gender equality, Economic development, Employment, Social protection, Unpaid work, Care economy, COVID-19 |
| JEL: | J16 O12 O13 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1497 |
| By: | Kshetri, Nir |
| Abstract: | This paper aims to highlight how disruptive changes such as generative artificial intelligence (GAI) have led to confusion in the academic industry and created an environment of uncertainty for academic entities. Drawing on institutional theory, it examines the discursive legitimacy and responses of key actors in academia to the introduction of GAI tools, shedding light on the complex dynamics shaping the future of education in the age of GAI. The paper provides details of changing response of the academic industry to GAI as a result of academic institutions' evaluation of value creation potential of GAI, their engagement in isomorphic actions to control and gain resources from key actors, and institutional change agents' actions. It attempts to explain the roles of diverse categories of institutional change agents in creating new institutions around GAI. We discuss how these agents theorize such changes and facilitate the diffusion of new ideas related to GAI. |
| Keywords: | Academic industry, institutional change agent, plagiarism, superstitious learning, theorization, uncertainty |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302526 |
| By: | Andréas Maitre-Ferri (Iaelyon - Iaelyon School of Management - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon) |
| Abstract: | Face à des entreprises qui communiquent et mettent en pratique de plus en plus de démarches de responsabilité sociétale (RSE), la problématique de la performance globale apparait désormais centrale pour le secteur de l'économie sociale et solidaire (ESS) dont le modèle organisationnel repose sur une logique clé : la défense d'une raison d'être sociale. C'est en conduisant une recherche-intervention au sein d'une organisation partenariale du secteur de l'ESS que nous avons cherché à expérimenter le potentiel de structuration et de valorisation de la performance globale que peut offrir une démarche RSE. Par la mise en exergue des convergences et spécificités de l'ESS et de la RSE et d'un état de l'art des méthodologies et outils de mesure et d'intégration de la performance globale, cette recherche converge avec d'autres sur le potentiel de performance de la RSE pour l'ESS ainsi que sur le degré qualimétrique de performance globale d'une organisation défendant une raison d'être sociale. |
| Keywords: | Économie sociale et solidaire responsabilité sociétale des entreprises performance globale intégrée hybridité organisationnelle théorie socio-économique recherche-intervention, Économie sociale et solidaire, responsabilité sociétale des entreprises, performance globale intégrée, hybridité organisationnelle, théorie socio-économique, recherche-intervention |
| Date: | 2024–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04687729 |
| By: | Dvoskin, Ariel (CONICET – University of San Martín, EIDAES); Libman, Emiliano (CONICET – Center for the Study of State and Society) |
| Abstract: | Following Aspromourgos’ (2007) steps, in this paper we examine the role of the interest rate as a “conventional” variable under different assumptions regarding price and quanti-ty determination, that aim to characterize the reaction functions of Central Banks, repre-sented in standard New Consensus models. More specifically, we lay out a minimal model and suggest a taxonomy that helps examining under which conditions prices and quantities can be determined independently of each other, and whether there is or there is not a unique natural rate of interest consistent with the equilibrium level of output. We argue that the natural rate of interest need not exist even if, as the New Consensus ar-gues, we allow prices and quantities to be somehow connected. |
| Keywords: | Inflation Targeting; Interest Rates; Monetary Theory of Distribution; New Consensus Model |
| JEL: | E31 E52 E58 |
| Date: | 2024–09–26 |
| URL: | https://d.repec.org/n?u=RePEc:ris:sraffa:0068 |
| By: | Anja Janischewski (Faculty of Economics and Business Administration, Chemnitz University of Technology); Katharina Bohnenberger (German Institute for Interdisciplinary Social Policy Research, University of Bremen, SOCIUM and Institute for Socio-Economics, University of Duisburg-Essen); Matthias Kranke (Freiburg Institute for Advanced Studies); Tobias Vogel (Department for Philosophy, Politics and Economics, Faculty of Economy and Society, Witten/Herdecke University); Riwan Driouich (Institut de Ci\`encia i Tecnologia Ambientals); Tobias Froese (Chair for Corporate Sustainability, ESCP Business School); Stefanie Gerold (Institute of Philosophy and Social Science, Brandenburg University of Technology Cottbus-Senftenberg); Raphael Kaufmann (ZOE Institute for Future-Fit Economies); Lorenz Key{\ss}er (Institute of Geography and Sustainability, Faculty of Geosciences and Environment, University of Lausanne); Jannis Niethammer (ICLEI European Secretariat); Christopher Olk (Otto Suhr Institute for Political Science, Freie Universit\"at Berlin); Matthias Schmelzer (Norbert-Elias-Center for Transformation Design and Research, University of Flensburg, Germany and Friedrich-Schiller-University Jena); Asl{\i} Y\"ur\"uk (Urban Transformation and Global Change Laboratory); Steffen Lange (Centre for Pluralist Economics, University of Siegen) |
| Abstract: | Many socio-economic systems require positive economic growth rates to function properly. Given uncertainty about future growth rates and increasing evidence that economic growth is a driver of social and environmental crises, these growth dependencies pose serious societal challenges. In recent years, more and more researchers have thus tried to identify growth-dependent systems and develop policies to reduce their growth dependence. However, the concept of 'growth dependence' still lacks a consistent definition and operationalization, which impedes more systematic empirical and theoretical research. This article proposes a simple but powerful framework for defining and operationalizing the concept of 'growth dependence' across socio-economic systems. We provide a general definition consisting of four components that can be specified for different empirical cases: (1) the system under investigation, (2) the unit of measurement of growth, (3) the level of growth and (4) the relevant functions or properties of the system under investigation. According to our general definition, a socio-economic system is growth-dependent if it requires a long-term positive growth rate in terms of a unit of economic measurement to maintain all its functions or properties that are relevant within the chosen normative framework. To illustrate the usefulness of our scheme, we apply it to three areas at the heart of the existing literature on growth dependence: employment, social insurance systems and public finance. These case studies demonstrate that whether or not a system is growth-dependent hinges not only on the empirical properties of the system itself but also on the specification of the concept of growth dependence. Our framework enables coherent, robust and effective definitions and research questions, fostering comparability of findings across different cases and disciplines. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.12109 |
| By: | Kunal Sen |
| Abstract: | An important stylized fact about African economic development is the phenomenon of urbanization without structural transformation. This paper provides a political economy analysis of the lack of structural transformation in African cities, drawing on the Deals and Development framework. |
| Keywords: | Structural transformation, Deals & Development, Political economy, Africa, Urbanization |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-50 |
| By: | Ekström, Mathias (Dept. of Economics, Norwegian School of Economics and Business Administration); Sjåstad, Hallgeir (Dept. of Strategy and Management, Norwegian School of Economics and Business Administration); Bjorvatn, Kjetil (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | To mitigate global warming, collective behavior change is needed. But which tools should policymakers prioritize: economic incentives, nudges, or a combination? Current evidence from social science provides little direct advice, as it either lacks credible identification of causality or objective long-term behavioral data. Addressing both limitations, we present causal evidence from a two-year field experiment, comparing how a small price incentive and a social norm-nudge affect the recycling behavior of more than 2, 000 households. The results show a large, immediate, and persistent positive effect of incentives on both the quantity and quality of recycling, but no effect of the norm-nudge. However, the price incentive reduced customer satisfaction, unless it was combined with the norm-nudge, suggesting that appealing to norms can make climate incentives more acceptable. |
| Keywords: | economic incentives; nudges; behavior change; norm-nudge |
| JEL: | J01 J12 |
| Date: | 2024–09–26 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhheco:2024_015 |
| By: | Ron Boschma; Rune Fitjar; Elisa Giuliani; Simona Iammarino; |
| Abstract: | Notwithstanding the wide consensus around the undeniable positive effects of innovation, there is increasing awareness that innovations may also have their dark sides. These dark sides of innovations have received little attention in regional studies. This editorial to a special issue on The Dark Side of Innovation and its Geography argues there are clear geographical footprints to this, which are related to both the inputs and the outcomes of innovation processes. In particular, we discuss how innovation activities have geographically uneven outcomes, driving spatial inequality, and how they require material inputs located in certain places, meaning that their costs are also unevenly distributed across space. |
| Keywords: | dark side of innovation, harmful innovations, critical and conflict materials, regional inequality, geography of innovation |
| JEL: | O25 O30 O31 O33 Q34 Q55 R11 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2428 |
| By: | Generoso Branca; Monica Grosso (EM - EMLyon Business School); Sandro Castaldo |
| Abstract: | Embracing diversity and promoting inclusion is a critical challenge for marketers to meet the diverse consumers' needs and have a positive social impact. Despite increasing attention to diversity and inclusion, and calls to address inequalities, there appears to be a lack of a thorough understanding of diversity and inclusion in consumer research, and how marketing can effectively contribute to an inclusive and equity-oriented society. Previous reviews and conceptual articles often focus on specific types of diversity or contexts. This study aims to provide a comprehensive examination of diversity and inclusion in consumer research through a systematic literature review of 52 articles combined with the theory, context, characteristics, and methodology (TCCM) framework. Our findings highlight that companies can actively foster inclusion and enhance equity through their policies, also by addressing stigmatization and marginalization. A conceptual framework outlines the impacts of these policies on individuals, society, and company performances, followed by a detailed research agenda for future studies. This article emphasizes the role of marketing in fostering inclusion but also stimulates practitioners to contribute through policies beyond representation and advertising, such as service and product design, and ensuring vulnerable consumers access to resources. |
| Keywords: | consumer, diversity, equity, inclusion, stigma, systematic literature review, vulnerability |
| Date: | 2024–08–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04692540 |
| By: | Ciarli, Tommaso; Madariaga Espinoza, Andrés; Foster-McGregor, Neil |
| Abstract: | This report documents global shifts in of industrial policy objectives and the rationales behind public intervention to address them. Drawing from a selected sample of policy documents from international organizations and countries with literature on innovation and technical change, this report presents a classification of objectives and rationales. This classification is used to code systematically the academic literature on industrial policy to analyse changes in objectives and rationales in publications on countries of different income groups. The findings show increased attention to social challenges with respect to economic objectives, especially in lower-income countries, while in high-income countries the shift is towards strategic objectives. There has, however, been limited change in rationales. There is also greater coherence between objectives and rationales for policy intervention in the discussion on specific instruments. Based on this evidence, it is suggested that more careful analysis of the rationales for public intervention is needed within existing frameworks and strategic thinking on industrial policies with a view to designing industrial strategies that are time consistent and systematically take into account the synergies and tensions between objectives. |
| Date: | 2024–09–10 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80651 |
| By: | Tom Broekel; Torben Klarl; ; ; |
| Abstract: | Innovations are widely accepted as fundamental drivers of economic growth by increasing productivity and creating new markets. However, empirical evidence on the long-term relationship between technological progress and economic growth remains scarce, with few studies considering shifts in technologies’ fundamental properties, such as their degree of complexity. Yet, higher levels of complexity are argued to increase technologies’ economic potential, and consequently, ignoring this dimension of technologies provides an incomplete picture of innovations’ growth effects. We address this research gap by exploring the relationship between economic growth and technological complexity over more than 170 years in the United States (US). Utilizing patent data, the concept of the complexity frontier, and partial wavelet analysis, we find that economic growth has not been driven by patented innovation and technological complexity for most of this period. However, since the beginning of the ICT revolution in the 1990s, it has significantly contributed to GDP growth. |
| Keywords: | Innovation, Economic Growth, Technological Complexity, USA, Complexity Frontier, Wavelt Analysis |
| JEL: | O30 O47 N10 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2427 |
| By: | Ekene ThankGod Emeka (University of Nigeria, Nsukka, Nigeria); Simplice A. Asongu (Johannesburg, South Africa); Yolande E. Ngoungou (Yaoundé, Cameroon) |
| Abstract: | This study examines the effects of gender economic inclusion on economic complexity in Africa, as well as the moderating role of governance institutions on the relationship between gender inclusion and economic complexity. The analysis was based on the pooled OLS and the system generalized method of moments (GMM) estimation techniques, with data from 34 African economies between 2010-2021. The analysis uncovered several important findings. First, from the most robust model (i.e., GMM), positive synergies are apparent because gender economic inclusion promotes economic complexity, and governance dynamics further enhance the positive effect of gender economic inclusion on economic complexity. Second, regardless of the adopted technique, a predominantly positive and statistically significant relationship was identified between gender economic inclusion and economic complexity. Third, it was observed that while governance institutions exhibit a negative relationship with economic complexity, they play a positive role in moderating the relationship between gender inclusion and economic complexity. Fourth, factors such as foreign direct investment inflow, trade openness, and international tourism were identified as potent drivers of economic complexity in Africa, while the impact of human capital appears to be relatively subdued. Consequently, the study emphasizes the need for institutional reforms to improve governance transparency, accountability, and efficiency, alongside advocating for gender-inclusive policies and increased investment in education. |
| Keywords: | Gender economic inclusion; economic complexity; governance institutions; panel data; Africa |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/012 |