|
on Heterodox Microeconomics |
|
Issue of 2024–11–18
twenty-six papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Jan Toporowski (SOAS, University of London) |
| Abstract: | The discussion of financial stability, and the role of monetary policy, is incoherent because there is very little agreement on what constitutes financial stability (and, by implication, instability) - exchange rate stability, asset price stability, absence of debt default. By implication, there is a gap between the claims of various authors to the general applicability of their respective analyses, and the actual applicability of their conclusions, let alone the usefulness of some of their policy recommendations. The paper argues that the key issue is the regulation of the liquidity of all financial markets, and not just that of the banking system, through the markets for government securities. The paper examines the sources of this liquidity in the financial portfolios of the private sector, and how that liquidity may be managed through the open market operations of central banks and the debt management operations of governments. An implication of this approach is yield curve control and the use of (government) debt management to control the liquidity of the markets. These elements of monetary policy have been neglected in theory and policy since the 1950s. |
| Keywords: | monetary policy, liquidity, debt management, yield curve control. |
| JEL: | E50 G24 G29 H63 |
| Date: | 2024–01–24 |
| URL: | https://d.repec.org/n?u=RePEc:thk:wpaper:inetwp218 |
| By: | João Ferreira do Amaral |
| Abstract: | The purpose of this paper is to study the relations between the concept of technical progress of a certain type (technological wave with technical progress embodied in innovative capital) and the concept of surplus-value of the stock of equipment. For that purpose we define an income function instead of a production function. |
| Keywords: | economic growth; digital revolution; technological progress; innovation. |
| JEL: | E10 E11 E22 N10 O30 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp03482024 |
| By: | Tortia, Ermanno C. |
| Abstract: | This paper is devoted to the possibility of creating worker cooperatives in which worker members are remunerated not through wages, but through dividends calculated on the added value produced by the enterprise, that is, cooperatives in which there is no labor cost, but only dividends on the net economic value produced by collective venture. It is shown how this solution makes it possible to unambiguously link dividends paid to worker members in each accounting period with the value of the member's financial stake in the equity capital of the enterprise, that is, with the value of the shares held by each individual member even in the absence of a real market for corporate shares. In the presence of a capital market, that is, an equilibrium price for the shares held by members, it will be possible for the cooperative to issue shares to be allotted to worker members but also sold to investors outside the membership. The paper concludes by discussing possible fairness criteria in the distribution of income and shares to members and concludes that the Rawlsian maximin criterion seems to be the most suitable for the democratic and collegial governance of worker cooperatives. |
| Keywords: | worker cooperative; dividends; wages; labor contract; agency model; cooperative shares; Rawlsian distributive equity |
| JEL: | D7 D70 G30 L2 L21 M21 |
| Date: | 2024–10–24 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122500 |
| By: | Herbert Dawid; Domenico Delli Gatti; Luca Eduardo Fierro; Sebastian Poledna |
| Abstract: | In this paper we examine the role of the design of behavioral rules in agent-based macroeconomic modeling. Based on clear theoretical foundations, we develop a general representation of the behavioral rules governing price and quantity decisions of firms and show how rules used in four main families of agent-based macroeconomic models can be interpreted as special cases of these general rules. We embed the four variations of these rules into a calibrated agent-based macroeconomic framework and show that they all yield qualitatively very similar dynamics in business-as-usual times. However, the impact of demand, cost, and productivity shocks differ substantially depending on which of the four variants of the price and quantity rules are used. |
| Keywords: | agent-based macroeconomics, behavioral rules, pricing, forecasting |
| JEL: | C63 E37 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11411 |
| 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:journl:hal-04719263 |
| By: | Gilbert Alan Okouanga Pira (USMS - Université Sultan Moulay Slimane); Fatima Touhami (USMS - Université Sultan Moulay Slimane) |
| Abstract: | Cooperatives play an important role in job creation. It is a source of income generation throughout the world. It is also an economic player whose role and activities contribute to solving the problems of poverty and the development of societies, even if it gives rise to voluntary autonomy in order to satisfy common needs. Its establishment calls for several economic, social, cultural and legal aspects. This paper is concerned with a comparative study of the legal and economic framework of Moroccan and Gabonese cooperatives. The aim is to highlight the points in common, while noting the differences between the legislation governing cooperatives in these two countries, and to take advantage of the legal texts in force. Our main interest is to identify the different economic trends by showing the importance of the legal texts for good organization of the cooperative. This study has enabled us to put forward a number of proposals for the economic development of Moroccan and Gabonese cooperatives, in terms of both organization and functions. The creation of think tanks made up of economic and legal experts could be a step forward in terms of management methods and support for volunteers. The analysis of the information gathered has enabled us to monitor the legal and economic development of Moroccan and Gabonese cooperatives, through their organization and involvement in certain sectors of activity. |
| Abstract: | La coopérative joue un rôle important dans la création d'emploi. Il s'agit d'une source génératrice de revenus dans le monde entier. C'est aussi un acteur économique dont le rôle et les activités contribuent à résoudre les problèmes de pauvreté et du développement des sociétés, même si elle suscite une autonomie volontaire afin de satisfaire des besoins communs. Sa mise en place fait appelle à plusieurs aspects économiques, sociaux, culturels et juridiques. Le présent travail s'intéresse à une étude comparative du cadre juridico-économique des coopératives marocaines et gabonaises. Il s'agit de mettre en avant les points communs, tout en relevant les différences entre ce qui se fait dans la législation des coopératives dans ces deux pays et en tirer profit des textes de loi en vigueur. Notre intérêt principal est de déceler les différentes tendances économiques en montrant l'importance des textes de loi pour une bonne organisation de la coopérative. Cette étude nous a permis d'émettre des propositions favorables à l'essor économique des coopératives marocaines et gabonaises aussi bien sur l'aspect organisationnel que fonctionnelles. La création de cercles de réflexion composés d'experts économiques et juridiques pourrait constituer une avancée sur les méthodes de gestion et d'accompagnement des volontaires. Ainsi, l'analyse des informations recueillies nous a donné la possibilité de suivre l'évolution juridico-économique des coopératives marocaines et gabonaises, par leur organisation et leur implication dans certains secteurs d'activité. |
| Keywords: | Morocco, legal economic, Cooperative Classification JEL: K40 Ppaper type: Theoretical research, Gabon Maroc Juridico-économique Coopérative JEL Classification : K40 Type du papier : Recherche théorique Gabon Morocco legal economic Cooperative Classification JEL: K40 Ppaper type: Theoretical research, Gabon, Maroc, Juridico-économique, Coopérative JEL Classification : K40 Type du papier : Recherche théorique Gabon |
| Date: | 2024–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04680960 |
| 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) |
| Abstract: | In June of 2010, a special issue in the Journal of Economic Methodology was introduced with the question: "Neuroeconomics: Hype or Hope?" (Marchionni and Vromen, 2010). More than ten years later, it is time to provide an answer. Using a variety of sources ranging from Web of Science to EconLit, I assess the importance of neuroeconomics as a research program in economics. I show that after a rapid increase in interest in the early 2000s, neuroeconomics decreased in importance beginning in the 2010s, especially compared with the continuing rise of behavioral economics. Here, I explore a number of explanations for this decline in interest. Then, I compare neuroeconomics with behavioral economics to emphasize key points of divergence in how these programs were constructed at the frontiers of economics. Most notably, I show that neuroeconomists were more confrontational in their approach to economics, more focused on programmatic writings with few theoretical contributions, and importantly, more oriented towards neuroscience rather than economics. |
| Abstract: | En juin 2010, un numéro spécial du Journal of Economic Methodology soulevait la question suivante : « Neuroeconomics: Hype or Hope ? » (Marchionni et Vromen, 2010). Plus de dix ans après, il est temps de proposer une réponse à cette question. En m'appuyant sur diverses sources, allant de Web of Science à EconLit, j'évalue l'importance de la neuroéconomie en tant que programme de recherche en sciences économiques. Je montre que, après une montée rapide de l'intérêt pour la neuroéconomie au début des années 2000, l'importance de la neuroéconomie a baissé dans les années 2010, notamment en comparaison à l'essor ininterrompu de l'économie comportementale. Dans cet article, j'explore un certain nombre d'explications pour cette perte d'intérêt. Ensuite, je compare neuroéconomie et économie comportementale pour souligner des différences essentielles dans la manière dont ces deux programmes ont été construit à la frontière des sciences économiques. Plus particulièrement, je montre que les neuroéconomistes ont été plus conflictuels dans leur rapport aux sciences économiques, plus actifs dans la production de contributions programmatiques que théoriques, et plus tournés vers le dialogue avec les neurosciences qu'avec les sciences économiques. |
| Keywords: | interdisciplinarity, neuroeconomics, behavioral economics, psychology, neuroscience, interdisciplinarité, neuroéconomie, économie comportementale, psychologie, neurosciences |
| Date: | 2023–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04719266 |
| By: | Grégoire Croidieu (EM - EMLyon Business School); Walter W. Powell; Stewart Clegg; Michael Grothe-Hammer; Kathia Serrano Velarde |
| Abstract: | This paper seeks to understand how a new elite, known as the cork aristocracy, emerged in the Bordeaux wine field, France, between 1850 and 1929 as wine merchants replaced aristocrats. Classic class and status perspectives, and their distinctive social closure dynamics, are mobilized to illuminate the individual and organizational transformations that affected elite wineries grouped in an emerging classification of the Bordeaux best wines. We build on a wealth of archives and historical ethnography techniques to surface complex status and organizational dynamics that reveal how financiers and industrialists intermediated this transition and how organizations are deeply interwoven into social change. |
| Keywords: | Class, Status, Social closure, Historical ethnography, Bordeaux wine |
| Date: | 2024–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04717620 |
| 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); Olivier Santerre (UdeS - Université de Sherbrooke); Yves Gingras (UQAM - Université du Québec à Montréal = University of Québec in Montréal); François Claveau (UdeS - Université de Sherbrooke) |
| Abstract: | Economics has the reputation to be an insular discipline with little consideration for other social sciences and humanities (SSH). Recent research (Angrist et al., 2020) challenges this perception of economics: the perception would be historically inaccurate and especially at odds with the recent interdisciplinarity of economics. By systematically studying citation patterns since the 1950s in thousands of journals, we offer the best established conclusions to date on this issue. Our results do show that the discipline is uniquely insular from a historical point of view. But we also document an important turn after the 1990s that drastically transformed the discipline as it became more open, very quickly, to the influence of management, environmental sciences and to a lesser degree, a variety of the SSH. While this turn made economics less uniquely insular, as of today economics remains the least outward-looking discipline with management among all SSH. Furthermore, unlike in the other major social sciences, the most influential journals in economics have not significantly contributed to the recent increase in the interdisciplinarity of the discipline. While economics is changing, it is too soon to claim that it has completed an interdisciplinary turn. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04719259 |
| By: | HARIT, ADITYA |
| Abstract: | This paper presents a quantum-inspired economic equilibrium model that incorporates fundamental uncertainty in market dynamics. Drawing upon the analogy between quantum mechanics and economic behavior, the model defines an uncertainty constant, σ, which limits the precision with which both price and money flow can be simultaneously predicted. The model investigates the dynamics of price and money f low as they asymptotically approach equilibrium, constrained by the uncertainty principle ∆P · ∆M ≥ σ. Solutions for price and money f low are derived, and the behavior of the system as it reaches equilibrium is analyzed, offering a novel perspective on how markets behave in the presence of irreducible uncertainty. |
| Keywords: | Quantum economics, uncertainty, equilibrium, price dynamics, money flow, financial markets |
| JEL: | A1 C0 E0 O1 P40 |
| Date: | 2024–10–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122378 |
| By: | Krystal Laryea; Christof Brandtner (EM - EMLyon Business School) |
| Abstract: | Sociologists have long thought of the integration of people in communities – social integration – and hierarchical social systems – systemic integration – as contradictory goals. What strategies allow organizations to reconcile social and systemic integration? We examine this question through 40 in-depth, longitudinal interviews with leaders of nonprofit organizations that engage in the dual pursuit of social and systemic integration. Two processes reveal how the internal structure of organizations often mirrors the ways in which organizations are embedded in their local environments. When organizations engage in loose demographic coupling, relegating those who "match" the community to the work of social integration, they produce internal inequalities and justify them by claiming community building as sacred work. When engaging in community anchoring, organizations challenge internal and external inequalities simultaneously, but this process comes with costs. Our findings contribute to a constructivist understanding of community, the mechanisms by which organizations produce inequalities, and a place-based conception of organizations as embedded in community. |
| Keywords: | organizations, cities, social integration, strategy, nonprofits, community, organization theory |
| Date: | 2024–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04717623 |
| By: | Stine Grodal; Jaekyung Ha (EM - EMLyon Business School); Elizabeth Hood; Micah Rajunov |
| Abstract: | ChatGPT's debut in 2022 heralded the entry of generative AI into mainstream public attention. The radical technology could do what no machine had done before: mimic humans' complex linguistic abilities. The ghost had entered the machine. In their essay, Phillips, Kalvapalle and Kennedy (2024) argue that one of the important aspects of generative AI is that it participates in the social construction of categories. Many other technologies also participate in the social construction of categories, yet this process often goes unnoticed. Why? We argue that the degree to which technologies are perceived to participate in the social construction process depends on three elements: the degree to which we anthropomorphize the technology, whether its affordances allow for easy interaction, and the vested interests of powerful stakeholders. We agree that humans and machines co-construct categories, but we argue that this process is itself socially constructed through an iterative process among participating stakeholders. |
| Keywords: | discourse theory (metaphor, narratives, rhetoric etc.), information systems, innovation, institutional theory, social constructionism, technology |
| Date: | 2024–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04731673 |
| By: | Namid R. Stillman; Rory Baggott |
| Abstract: | Deep generative models are becoming increasingly used as tools for financial analysis. However, it is unclear how these models will influence financial markets, especially when they infer financial value in a semi-autonomous way. In this work, we explore the interplay between deep generative models and market dynamics. We develop a form of virtual traders that use deep generative models to make buy/sell decisions, which we term neuro-symbolic traders, and expose them to a virtual market. Under our framework, neuro-symbolic traders are agents that use vision-language models to discover a model of the fundamental value of an asset. Agents develop this model as a stochastic differential equation, calibrated to market data using gradient descent. We test our neuro-symbolic traders on both synthetic data and real financial time series, including an equity stock, commodity, and a foreign exchange pair. We then expose several groups of neuro-symbolic traders to a virtual market environment. This market environment allows for feedback between the traders belief of the underlying value to the observed price dynamics. We find that this leads to price suppression compared to the historical data, highlighting a future risk to market stability. Our work is a first step towards quantifying the effect of deep generative agents on markets dynamics and sets out some of the potential risks and benefits of this approach in the future. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.14587 |
| By: | Ihsane Ihendyane (FEG-UIT - Laboratoire des Sciences Économiques et Politiques Publiques, Faculté d’Economie et de Gestion, Université Ibn Tofail, Kénitra); Hassan El Aissaoui; Kenza El Kadiri; Adil Mansour |
| Abstract: | الأفضلية الوطنية يستكشف هذا المقال التفاعل بين التعاونيات المغربية وسياسة التفضيل الوطنية في سياق التنمية الصناعية في البلاد. وبالاستناد إلى التحليل النظري والوثائقي، تسلط الدراسة الضوء على كيفية قيام التعاونيات، من خلال الاستفادة من قدرتها على الابتكار والتكيف والتعلم، بدور محوري في تعزيز الصناعة الوطنية. يوضح النهج المتبع كيف تتماشى هذه المنظمات مع أهداف سياسة الأفضلية الوطنية مع تعزيز قدرتها التنافسية ومرونتها. وتؤكد النتائج على أهمية التكيف المستمر مع متطلبات السوق والأولويات الصناعية في المغرب، مع إيلاء اهتمام خاص للأخلاقيات والابتكار. وفي الختام، تؤكد الدراسة على حاجة التعاونيات إلى تعزيز مساهمتها في التنمية الاقتصادية الوطنية من خلال استراتيجيات مصممة خصيصًا لتلبية متطلبات بيئة دائمة التطور. |
| Abstract: | This article explores the interaction between Moroccan cooperatives and the national preference policy within the context of the country's industrial development. Drawing on theoretical and documentary analysis, the study highlights how cooperatives, by leveraging their ability to innovate, adapt, and learn, play a pivotal role in strengthening the national industry. The approach taken demonstrates how these organizations align with the goals of the national preference policy while enhancing their competitiveness and resilience. The findings underscore the importance of continuous adaptation to market demands and industrial priorities in Morocco, with particular attention to ethics and innovation. In conclusion, the study emphasizes the need for cooperatives to strengthen their contribution to national economic development through strategies tailored to the demands of an ever-evolving environment. |
| Abstract: | Cet article explore l'interaction entre les coopératives marocaines et la politique de préférence nationale dans le contexte du développement industriel du pays. En s'appuyant sur une analyse théorique et documentaire, l'étude met en lumière la manière dont les coopératives, en tirant parti de leurs capacités à innover, à s'adapter et à apprendre, jouent un rôle crucial dans le renforcement de l'industrie nationale. L'approche adoptée permet de comprendre comment ces organisations s'alignent sur les objectifs de la politique de préférence nationale tout en renforçant leur compétitivité et leur résilience. Les résultats soulignent l'importance de l'adaptation continue des coopératives aux exigences du marché et aux priorités industrielles du Maroc, avec une attention particulière accordée à l'éthique et à l'innovation. En conclusion, l'étude met en avant la nécessité pour ces structures de consolider leur contribution au développement économique national par des stratégies adaptées aux exigences d'un environnement en constante évolution. |
| Keywords: | Dynamic capabilities, National preference policy, Industrial policy, Cooperatives, Made in Morocco |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04722315 |
| By: | Thapa, Manish; Jebin, Sharmin; Ababil, Saify |
| Abstract: | Urban green infrastructure, such as parks and reforestation programs, is critical for building municipal resilience to environmental, social, and economic concerns. The Metro Forest Project in Bangkok shows this by converting an abandoned site into a thriving biological forest utilizing the Miyawaki technique. The PTT Reforestation and Ecology Institute began this initiative, which focuses on using native species to reproduce past landscapes, enhancing biodiversity and ecological resilience. Despite its success, the initiative faces obstacles such as climate change effects, air and water pollution, and obtaining long-term finance. The study's goal is to assess the project's resilience by comparing it to the National Garden of Athens, identifying strengths, flaws, and areas for improvement. The study used diverse research methodologies, including qualitative and quantitative approaches, to examine the resilience of the Metro Forest Project and the National Garden of Athens. Data were gathered from both secondary and primary sources, including literature studies, field trips, and key informant interviews. The data was examined using a contextualized city resilience paradigm that considered social, environmental, economic, and institutional components. This thorough approach gave a full picture of the resilience status of both urban green areas, allowing for a comparative analysis that yielded valuable insights. According to the study, the Metro Forest Project successfully boosted urban biodiversity and resilience through innovative design and community engagement. Due to the limitation of this study, the resilience for sitting in the perspective of a broad urban fabric could not be identified. Some ongoing obstacles have been identified including the need for consistent funding, active community participation, and intensive data gathering to monitor environmental changes. To improve the project's resilience, recommendations include creating a strong data collection system, increasing community participation, improving institutional backing, and performing frequent resilience evaluations. By tackling these issues and using its strengths, the Metro Forest Project can make a substantial contribution to Bangkok's overall resilience programs, supporting a sustainable and livable city environment. |
| Keywords: | Urban Resilience, Green Infrastructure, Public Space, Eco-Friendly Space |
| JEL: | I3 R0 Z0 Z00 |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122419 |
| By: | Clare Branigan |
| Abstract: | We explore the role of repressed ancestral suffering in driving institutional and broader societal responses to contemporary events. We demonstrate how a traumatic past becomes interwoven in the fabric of the social order, rendering state and parastatal organizations and their leaders powerless. This is manifest in the recent destructive Irish real estate bubble, and its associated economic and social consequences. The concept of intergenerational transmission of trauma is key to our analysis. We show how the Irish obsession with owning property and land is a psychic attempt to transcend the traumatic past to ‘inhabit’ an idealized pre-colonial land leading to emergent feelings of empowerment, euphoria and omnipotence. We also explain why the property bubble is being re-enacted so soon with no apparent learning. In addition, we highlight the potential for an enhanced understanding of this bubble with insights from novels, drama, and poetry. |
| Keywords: | real estate bubble; social unconscious; socio-economic crisis |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-030 |
| By: | Melannie Hernández Robles; José Raymundo Ibáñez Luis (Centro de Estudios Espinosa Yglesias) |
| Abstract: | Con una perspectiva interseccional, este artículo explora cómo medir el efecto que tienen las características individuales y el contexto para incidir sobre la percepción de la riqueza de las personas en Nuevo León. Se analizan tanto la movilidad económica como la movilidad educativa y ocupacional con respecto al hogar de origen y se analizan variables individuales correlacionadas con la percepción y que condicionan el comportamiento, el esfuerzo, las aspiraciones y las expectativas que tienen un efecto directo sobre el bienestar y las posibilidades de movilidad social. Con los datos de la Encuesta ESRU de Movilidad Social en Nuevo León 2021, se encuentra una variación significativa entre la percepción de la riqueza y el estatus socioeconómico de las personas encuestadas. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:auk:ecosoc:2024_13 |
| By: | Annamaria Porreca; Viviana Ventre; Roberta Martino; Salvador Cruz Rambaud; Fabrizio Maturo |
| Abstract: | Classical finance models are based on the premise that investors act rationally and utilize all available information when making portfolio decisions. However, these models often fail to capture the anomalies observed in intertemporal choices and decision-making under uncertainty, particularly when accounting for individual differences in preferences and consumption patterns. Such limitations hinder traditional finance theory's ability to address key questions like: How do personal preferences shape investment choices? What drives investor behaviour? And how do individuals select their portfolios? One prominent contribution is Pompian's model of four Behavioral Investor Types (BITs), which links behavioural finance studies with Keirsey's temperament theory, highlighting the role of personality in financial decision-making. Yet, traditional parametric models struggle to capture how these distinct temperaments influence intertemporal decisions, such as how individuals evaluate trade-offs between present and future outcomes. To address this gap, the present study employs Functional Data Analysis (FDA) to specifically investigate temporal discounting behaviours revealing nuanced patterns in how different temperaments perceive and manage uncertainty over time. Our findings show heterogeneity within each temperament, suggesting that investor profiles are far more diverse than previously thought. This refined classification provides deeper insights into the role of temperament in shaping intertemporal financial decisions, offering practical implications for financial advisors to better tailor strategies to individual risk preferences and decision-making styles. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.16307 |
| By: | Alberto Botta (School of Accounting, Finance and Economics, University of Greenwich, London, UK); Eugenio Caverzasi (Department of Economics, Università degli Studi dell’Insubria, Varese, Italy); Alberto Russo (Department of Economics and Social Sciences, Università Politecnica delle Marche, Ancona, Italy and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | With central banks and national governments returning to more conservative monetary and fiscal policies after Covid, the debate about the macroeconomic effects of fiscal rules has revamped. We address this topic via an extended version of the hybrid ABM-SFC model in Botta et al. (2024) that includes a Taylor-type monetary policy rule and a variety of fiscal rules aimed at reducing the public debt-to-GDP ratio. We compare spending-based fiscal rules vastly advocated by international economic institutions with wealth tax-based fiscal policies. We do this in the context of a modern financialized economy where securitization and complex financial products like Asset-Backed Securities (ABS) alter economic dynamics and the effectiveness of monetary policy in controlling inflation. We assume heterogeneous households to track how alternative fiscal strategies affect income and wealth inequality. Our findings are threefold. First, spending-based fiscal rules can reduce the debt-to-GDP ratio in the long term but at the cost of significantly higher unemployment and permanently lower real GDP. Second, wealth tax-based fiscal policies reduce public debt without harming economic performance. Third, perhaps unexpectedly, in a financialized economy, spending-based fiscal austerity may hurt the relative position of rich households in wealth distribution as much as a wealth tax does; this is due to capital losses that spending cuts may eventually induce in households’ financial wealth. In the end, wealth taxes are preferable to spending cuts, and the usual political opposition against them by the rich appears largely unfounded given their potential economic benefits compared to spending-based fiscal austerity. |
| Keywords: | Spending-based fiscal rule, Wealth tax, Securitization |
| JEL: | E44 E63 H6 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:jau:wpaper:2024/07 |
| By: | Adam Polko |
| Abstract: | Urban commons emerge through collective actions by urban communities utilizing shared resources to collaboratively create and share various goods, both material and immaterial (Foster 2013; Polko et al. 2021). Establishing and sustaining commons involves three essential components: shared resources, a community, and a set of rules (social protocol), rendering it a complex phenomenon (Bollier 2014; Harvey 2012). This underscores a unique connection between the community and resources, reflected in the need to safeguard resources and an awareness of their value (Bollier 2014; Bollier, Helfrich (Eds.) 2015). Numerous instances of urban commons exist, ranging from community gardens, community land trusts (CLTs), and repair cafes to friends' park groups, among others (Feinberg et al. 2021). In urban settings, residents in neighbourhoods are increasingly forming communities to enhance the quality of their neighbourhoods or protect places from threats, such as preventing the appropriation of a park by developers. These residents are adopting commoning practices that extend beyond market and state mechanisms to manage shared urban spaces. This research article aims to deepen the understanding of how the process of urban commoning impacts the management of shared spaces in urban residential areas, with a focus on improving quality. The article addresses key research questions: Why and when do residents initiate the commoning process in residential areas? Does the structure, size, and spatial layout of a housing development influence the creation of urban commons? What types of urban commons are produced, and do they enhance housing quality and impact housing prices?Scientific studies have been conducted in various Polish cities, and the research results aim to provide a comprehensive understanding of the interactions among residents of housing estates. Additionally, the findings will offer recommendations on principles for managing shared spaces within housing estates, including squares, parks, backyards, parking lots, etc. |
| Keywords: | commoning; residential area; urban commons |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-153 |
| By: | Marc Germain (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Based on a Kaya identity decomposing the ecological footprint as a function of ecological intensity, GDP/capita and population, the aim of the article is to calculate a country's sustainable GDP/capita, i.e. the maximum GDP/capita level compatible with the absence of ecological overshoot. For France and Germany (resp. for Belgium), the sustainable GDP/cap corresponds to the levels of GDP/cap observed during the 1st half of the 1960s (resp. 1950), i.e. a division by 3 (resp. by almost 4) compared to the current GDP/cap. The results show that the reduction in GDP/capita required to eliminate ecological overshoot would in no way imply a return to the candle age. Nor would it involve a pure and simple return to the 1950s or 1960s, given that the neutralization of overshoot is achieved via a reduction in GDP/capita alone, without giving up current technology and population. In view of the literature on the links between growth and well-being, it is also likely that the decline in GDP/capita would not be accompanied by a loss of well-being of the same magnitude (assuming there is a loss). |
| Abstract: | A partir d'une identité à la Kaya décomposant l'empreinte écologique en fonction de l'intensité écologique, du PIB/hab et de la population, le but de l'article est de calculer le PIB/hab soutenable d'un pays, c-à-d le niveau de PIB/hab maximal compatible avec l'absence de dépassement écologique. Pour la France et l'Allemagne (resp. pour la Belgique), le PIB/hab soutenable correspond aux niveaux du PIB/hab observés pendant la 1ère moitié des années 1960 (resp. 1950), soit une division par 3 (resp. par près de 4) par rapport au PIB/hab actuel. Les résultats montrent que la décroissance du PIB/hab nécessaire pour faire disparaître le dépassement écologique n'impliquerait aucunement un retour à l'âge de la bougie. Il ne s'agirait pas non plus d'un retour pur et simple aux années 1950 ou 1960, vu que la neutralisation du dépassement est obtenue via la seule réduction du PIB/hab, sans renoncer à la technologie et à la population actuelles. Au vu de la littérature sur les liens entre croissance et bien-être, il est également vraisemblable que la décroissance du PIB/hab ne s'accompagnerait pas d'une perte de bien-être de même ampleur (en supposant qu'il y ait perte). |
| Keywords: | Degrowth, Kaya identity, Ecological footprint, Décroissance, Identité de Kaya, Empreinte écologique |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04726726 |
| By: | Chiad, Faycal; GHERBI, Abdelhalim |
| Abstract: | The aim of this research is to provide a suitable empirical framework for the interaction between Islamic finance, financial stability and economic development. Additionally, it is an attempt to empirically evaluate how the levels of financial system stability and economic growth in an oil-rich nation are affected by the financing provided by the Islamic banks. Employing fully modified ordinary least squares (FMOLS) and quantile regression (QR) based on quarterly data for the years 2013 to 2022. The paper explores strong evidence that Islamic banking finance supports economic growth (coefficients ranging from 0.14 to 0.22) and improves financial system stability, as indicated by the coefficients ranging from 0.25 to 0.32. Moreover, the study highlights that this positive relationship is negatively affected by inflation rates and levels of economic policy uncertainty. Financial inclusion has an important positive impact on both dependent variables, which reinforces this link. Furthermore, oil rents in Saudi Arabia contributed to improving economic development and supporting the financial sector's development to achieve economic diversification aimed by Saudi Vision 2030. These findings confirm the necessity of paying attention to developing Islamic banking and increasing its market share by creating products and services that achieve economic efficiency in accordance with suitable policies for making the financial sector a strategic sector that supports economic development in KSA. |
| Keywords: | Islamic Banks, Financial Stability, Economic Growth, Quantile Regression |
| JEL: | C21 G21 G32 O47 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122409 |
| By: | Gunnthorsdottir, Anna; Thorsteinsson, Palmar |
| Abstract: | Social stratification, segregation and inequity invite concerns about fairness and social harmony. Our game-theoretic and experimental results indicate that they can also be detrimental to productivity, efficiency, and welfare. Class is defined by players’ resources, incentives to make a public contribution, and social mobility. We discuss the model’s real-world applications, and ways to increase efficiency and welfare through increased equity, mobility, or competition. We also describe how the model can be adapted to represent and experimentally test different class structures, the interaction between demographic characteristics and class, and the effectiveness of policies that modify incentives. We experimentally test a two-class model. The poorer L-class are socially mobile: for them, effort is linked to social positioning and earnings akin to what is often referred to as a Middle-Class mindset. The productive L-players support a relatively efficient equilibrium that encompasses both classes. Upper-class H-players, notwithstanding their guaranteed privilege and superior resources, are relatively unproductive and display behavior akin to class-consciousness by contributing only what is necessary to remain above the L-class. The experimental results confirm that humans respond swiftly to incentives associated with their material status and economic opportunities and suggest that policies aimed at increasing welfare through incentive modification can be successful. |
| Keywords: | Inequality, social class, game theory, experiment, welfare |
| JEL: | C72 C91 D63 I3 I38 |
| Date: | 2024–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122275 |
| By: | Adam Czerniak; Patrycja Graca-Gelert |
| Abstract: | Goal: To jointly analyse different approaches to housing inequality in search of similarity patterns across various coexisting housing regimes in Europe.Research hypothesis: Each variety of residential capitalism (i.e. housing regime) exhibits its own pattern of housing inequalities.Research method: Using microdata from the newest Household Finance and Consumption Survey (HFCS) wave 2021 [for Poland, data from the wave 2017 was used], we calculated various measures of housing inequality for 20 EU member states. We consider housing space inequality and the size of multiple homeownership, as well as gross and net housing wealth inequality, both for the whole population and for homeowners only. Additionally, we have added Eurostat data on housing cost overburden and housing over- and undercrowding rates. On this data set we performed k-means cluster analysis to search for patterns of similarity between the analysed countries.Main findings: The calculations showed that the k-means cluster composition almost perfectly overlapped with the classifications of housing regimes in Europe. In other words, we have identified that each variety of residential capitalism exhibits its own distinct housing inequality patterns. In statist countries such as Germany, Austria, the Netherlands, and France, there are high housing wealth inequalities but much lower inequalities in housing space and costs. In turn, corporatist countries such as Belgium, Ireland, and Finland exhibit medium wealth inequalities but high housing space and cost inequalities. Mediterranean member states, also denoted as countries with a commodified familial model of residential capitalism, have developed the largest class of homeowners, where, on average, 18% of households own two or more residential estates. This increases housing wealth inequalities, especially when considering mortgage debt, but has no effect on space inequalities which is one of the lowest among all analysed countries. Finally, Central and Eastern European countries, also called super-ownership states, which exhibit a non-commodified familial model of residential capitalism, have the lowest housing wealth inequalities, with 72% of households owning just one residential property, which they occupy, but they have very high space inequalities, with almost a quarter of the population living in overcrowded dwellings and medium to large housing cost inequalities. These results indicate that each housing regime requires a unique housing policy approach to mitigate future housing inequalities. |
| Keywords: | housing inequality; housing regimes; Housing Wealth; varieties of residential capitalism |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-221 |
| By: | Juliette Fronty (LGTO - Laboratoire de Gestion et des Transitions Organisationnelles - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse, IUT Paul Sabatier - Institut Universitaire de Technologie - Paul Sabatier - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse); Anne-Laure Gatignon Turnau (LGTO - Laboratoire de Gestion et des Transitions Organisationnelles - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse); Anna Glaser (ESCP-EAP - ESCP-EAP - Ecole Supérieure de Commerce de Paris); Ziad Malas (LGTO - Laboratoire de Gestion et des Transitions Organisationnelles - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse) |
| Abstract: | L'objectif de cette communication est, en s'intégrant à l'axe 2 « Questionner les dispositifs managériaux et le cadre théorique auxquels ils s'attachent » d'ouvrir une réflexion sur la manière dont le care et l'éthique du care peuvent influencer la recherche en gestion, non pas seulement en termes d'objet de recherche, mais aussi en termes de manière de faire de la recherche. Si la perspective du Care conduit à repenser les dispositifs managériaux, comment conduit-elle à changer les méthodes et les finalités des recherches en sciences de gestion ? Le Care met en évidence l'interdépendance qui nous lie les uns aux autres et critique l'appréhension de la société basée sur le modèle individualiste du travailleur (manager, entrepreneur, dirigeant, etc…) indépendant, autonome, qui se fait « tout seul ». Les dispositifs managériaux, ou de GRH, tournés vers la performance et l'évaluation individuelles sont donc une « incohérence », du point de vue du Care. L'éthique du Care appliquée au management implique de non seulement revoir les dispositifs managériaux mais aussi de réfléchir au rapport au travail et aux autres des salariés et des dirigeants. En tant que chercheurs en sciences de gestion, nous nous demandons comment contribuer à cette réflexion, qui nous semble être un changement de paradigme, sans changer notre propre manière de contribuer à construire de la connaissance. Nous nous demandons si le Care en tant qu'éthique peut servir de cadre théorique de référence à l'instar des cadres théoriques féministes ou marxistes, cadres qui ont insufflé un renouvellement des approches en sciences de gestion. En complément, nous nous interrogeons sur la possibilité du Care d'être incarné dans nos méthodologies de recherche, afin de développer un rapport dans le soin avec nos terrains et nos données. |
| Date: | 2023–12–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04717535 |
| By: | Giulia Iannone (Gran Sasso Science Institute); Andrea Ascani (Gran Sasso Science Institute); Alessandra Faggian (Gran Sasso Science Institute); Alexandra Tsvetkova (OECD Trento Centre for Local Development) |
| Abstract: | There is an increasing need for today’s economies to be both productive and resilient, but the interplay between these two fundamental factors for economic growth has been neglected in the literature. This paper aims at filling this gap by adopting an evolutionary framework for the joint study of productivity and resilience and proposes a regional taxonomy based on characteristics of the industrial structure. Data on European regions at the NUTS2 level are used first to classify regions as productive and/or resilient and then to analyze how certain regional features, in particular related and unrelated variety, relate to a combined measure of productivity and resilience. Results show that the spatial distribution of productive and resilient regions follows a core– periphery pattern and that related and unrelated variety have significant but heterogeneous effects on regions’ economic performance. |
| Keywords: | productivity, regional resilience, industrial structure, relatedness |
| JEL: | B52 O4 R1 |
| Date: | 2023–12 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp44 |