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on Heterodox Microeconomics |
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Issue of 2025–02–10
fourteen papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Drakopoulos, Stavros A. |
| Abstract: | With a career spanning over many decades, Tony Lawson has made important contributions ranging from the philosophy of social sciences, history economic thought, methodology of economics, political economy, monetary theory, to the theory of ethics. His work concerning ontology has had a remarkable impact on economic methodologists in promoting the discussion of social ontology. Similarly, his articulation of critical realism has strengthened the criticism of heterodox economists against the economics orthodoxy regarding its lack of realism. Although not identified with a specific heterodox strand, it can be argued that Lawson’s work has promoted the development and the appeal of heterodox economics in many ways. A common feature of most heterodox economics relates to the criticism of mathematical formalism which is a core principle of orthodox economic theory. Another common characteristic is the heterodox emphasis on the crucial role of economic methodology for the discipline. Further, most heterodox economists call for a more realistic approach to the study of economic phenomena. This paper will discuss the facets of Lawson’s work which have exerted considerable influence on above- mentioned common attributes of heterodox economics. In particular, it will focus on: A. the argumentation countering the negative stance of mainstream economics towards economic methodology and the support of its usefulness as a subject of study. B. the critique of mainstream economic methodology and especially its use of mathematics. C. the analysis of the nature of heterodox economics. Lawson’s discourses on these themes have contributed towards a credible and coherent alternative to mainstream economics. |
| Keywords: | Economic Methodology; Heterodox Economics; Critique of Mainstream Economics; Tony Lawson |
| JEL: | B20 B40 B50 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123406 |
| By: | Andini, Corrado (University of Madeira) |
| Abstract: | This paper proposes a theory of the mark-up that is embedded in a circuit model of the capitalist mode of production. The model and the theory are built on Keynes's principle of effective demand, Graziani's monetary theory of production and Pivetti's monetary theory of distribution. The price-setting mechanism is conceived as driven by a Kaleckian rule. The rate of interest on bank loans and the propensities to save of different macro-players are shown to affect the level of the mark-up, thus contributing to explain "labour exploitation" as measured by the average gap between worker's pay and productivity. In other words, "labour exploitation" is seen as being in part originated by monetary phenomena, such as the rentability of bank credit and the macro-players' propensities to accumulate money in a bank account. |
| Keywords: | profit, wage, money, finance, capitalism |
| JEL: | B22 E11 E12 E40 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17609 |
| By: | Bellanca, Nicolo' |
| Abstract: | This note draws inspiration from Riccardo Bellofiore’s recent monograph dedicated to Claudio Napoleoni. It examines Napoleoni’s reflections on key issues within Marxist theory, including the theory of value, alienation and exploitation, rent within the Italian economy, the status of economic science, and the pathways to human emancipation. The interpretative framework proposed by Bellofiore is also analyzed, along with his attempt to reconstruct Marx’s approach. |
| Keywords: | Marxist theory of value; Claudio Napoleoni; Productive labour; Economic alienation |
| JEL: | B31 B41 B51 O11 P10 |
| Date: | 2025–01–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123472 |
| By: | Elisa Palagi (SSSUP - Scuola Universitaria Superiore Sant'Anna = Sant'Anna School of Advanced Studies [Pisa]); Mauro Napoletano (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Andrea Roventini (SKEMA Business School, Université Côte d'Azur (GREDEG)); Jean-Luc Gaffard (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | We build an agent-based model to study how coordination failures, credit constraints, and unequal access to investment opportunities affect inequality and aggregate income dynamics. We show that macroeconomic conditions are affected by income distribution and that the model features trickle-up growth dynamics. Redistribution toward poorer households raises demand and benefits all agents' income growth. Simulations show that our model reproduces several stylized facts concerning income inequality and social mobility. Finally, fiscal policies facilitating access to investment opportunities by poor households have the largest impact, raising income and decreasing inequality, with policy timing being crucial. |
| Date: | 2023–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04531031 |
| By: | Sergio Cesaratto |
| Abstract: | Models, Methods, and Morality discusses moral values in the field of ancient economic history, where neoclassical hegemony in the form of the New Institutional Economics has progressively gained ground. The book mainly criticises mainstream economics for focusing on quantitative growth without much regard to its social consequences. The spirit of this review is a constructive encouragement to build an alternative approach to economic history possibly based on the classical economists’ surplus approach, taking also advantage of the familiarity that scholars of ancient societies have with the concept of economic surplus. The risk is that without a resolute criticism of mainstream economics and the adoption of an alternative point of view, mainstream economics might paternalistically reabsorb the legitimate moral criticism that pervades many of the contributions to the volume. Being based on a simple heuristic of the economic sources of the élites’ wealth and not possessing a pre-packaged view of human behaviour, surplus theory may usefully be at the core of a socially sensitive, economic history agenda. |
| Keywords: | Economic history, Ancient economies, Surplus approach, New Institutional Economics, Moral economy Jel Classification: B12, B51, N01 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:923 |
| By: | Riccardo Zolea |
| Abstract: | : This paper tries to offer a new interpretation of the relationship between interest rate and profit rate, based on the profitability of bank capital and a rethinking of the traditional multi-sectoral depiction of the economy: that is, considering the banking sector as a particular ‘productive’ sector with a specific price equation. The tool of the Sraffian-type price equation is used to study and represent this relationship within the framework of the Sraffian “Marxian” approach of Garegnani. In order to describe the operation of the banking sector with such a tool, a careful analysis of the necessary and normal coefficients of a banking sector price equation is conducted and the compatibility of economic concepts such as input, output and capital with endogenous money theory is discussed. The results of this investigation show the possibility of conceiving a causal relationship between the rate of profit to the rate of interest, with the central bank wielding significant influence. These findings can also reconnect and develop the different cues in Marx's analysis of the financial system, which are apparently contradictory. |
| Keywords: | : Sraffian price equation; bank profitability; interest rate, endogenous money; Marx Jel Classification: E11; E43; G21 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:924 |
| By: | Vinícius da Silva Centeno |
| Abstract: | This work aims to develop an analytical model that addresses the transition to a low-carbon economy by interplaying demand-driven dynamics and energy supply constraints. As the modeling of energy production in the ecological macroeconomics literature has been addressed within supplydriven growth models, the novelty of this article lies in integrating the energy sector into a demandled growth framework. On the growth side, our model follows the Sraffian supermultiplier literature (Serrano, 1995). On the energy side, it draws inspiration from Bernardo and D’Alessandro (2016), explicitly modeling energy production from renewable sources. We assume business-as-usual and green government expenditures are sources of autonomous demand, with investment and capital stock composed of green and conventional components, respectively. The growth and energy sides of the model are connected through a green investment equation, which embodies a constraint on green capital stock accumulation given by the availability of renewable energy. Therefore, the growth dynamics are demand-driven, but the feasibility of the ecological transition is supply-constrained. Numerical simulations demonstrate that scenarios combining green fiscal policy and low growth are more conducive to promoting the energy transition, aligned with post-growth approaches. |
| Keywords: | Ecological macroeconomics; demand-led growth; energy transition; mission-oriented policy Jel Classification:Q57; E11; E12; E62; P28 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:922 |
| By: | Patrick Llerena; Corentin Lobet; Andr\'e Lorentz |
| Abstract: | We propose a disaggregated representation of production using an agent-based fund-flow model that emphasizes inefficiencies, such as factor idleness and production instability, and allows us to explore their emergence through simulations. The model incorporates productivity dynamics (learning and depreciation) and is extended with time-saving process innovations. Specifically, we assume workers possess inherent creativity that flourishes during idle periods. The firm, rather than laying off idle workers, is assumed to harness this potential by involving them in the innovation process. Results show that a firm's organizational and managerial decisions, the temporal structure of the production system, the degree of workers' learning and forgetting, and the pace of innovation are critical factors influencing production efficiency in both the short and long term. The coevolution of production and innovation processes emerges in our model through the two-sided effects of idleness: the loss of skills through forgetting and the deflection of time from the production of goods to the production of ideas giving birth to idleness-driven innovations. In doing so, it allows us to question the status of labour as an adjustment variable in a productive organisation. The paper concludes by discussing potential solutions to this issue and suggesting avenues for future research. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.09778 |
| By: | Gaël Giraud (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Paul Valcke (GEJP - Georgetown Environmental Justice Program [Washington] - GU - Georgetown University [Washington]) |
| Abstract: | Abstract Designing policy for global warming requires an integrated analysis of the interplay between the economy and the environment. The consensus is growing that, despite their dominance in the economics literature and their influence in public discussion and policymaking, the methodology employed so far by most Integrated Assessment Models (iams) ‘rests on flawed foundations' (Stiglitz et al. 2016). This is particularly worrisome in the face of the immense risks and challenges of global warming and the radical changes in our economies that an effective response requires. This paper introduces an alternative paradigm, IDEE (Integrated Dynamics Environment-Economy), based on coupling a medium-size climate model with nonlinear, out-of-equilibrium, stock-flow-consistent macroeconomic dynamics in continuous time. IDEE allows for multiple economic steady states, endogeneous business cycles, endogenous growth, corporate default, and the short- and long-run assessment of various mitigation and adaptation policies. We argue that this approach is suitable for providing insights into managing the transition to net-zero emissions and coping with damages induced by the ecological crisis. |
| Abstract: | L'élaboration d'une politique de lutte contre le réchauffement climatique nécessite une analyse intégrée de l'interaction entre l'économie et l'environnement. Il est de plus en plus admis que, malgré leur domination dans la littérature économique et leur influence dans le débat public et l'élaboration des politiques, la méthodologie employée jusqu'à présent par la plupart des modèles d'évaluation intégrée (MEI) « repose sur des bases erronées » (Stiglitz et al. 2016). Ceci est particulièrement inquiétant face aux risques et défis immenses du réchauffement climatique et aux changements radicaux de nos économies qu'une réponse efficace requiert. Cet article présente un paradigme alternatif, IDEE (Integrated Dynamics Environment-Economy), basé sur le couplage d'un modèle climatique de taille moyenne avec une dynamique macroéconomique non linéaire, hors équilibre, cohérente avec les flux de stocks en temps continu. IDEE permet des états stables économiques multiples, des cycles économiques endogènes, une croissance endogène, des défaillances d'entreprises et l'évaluation à court et à long terme de diverses politiques d'atténuation et d'adaptation. Nous soutenons que cette approche est adaptée à la gestion de la transition vers des émissions nettes nulles et à la gestion des dommages induits par la crise écologique. |
| Keywords: | climate change, extreme risk, market imperfections, climate policy, integrated assessment, stock-flow consistency |
| Date: | 2023–02–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04872596 |
| By: | Abdul Rahim, Mohamad Syafiqe |
| Abstract: | The Islamic Financial Services Act 2013 (IFSA) came into force on 30 June 2013 with the objective to pave way for the development of an end-to-end Shariah compliant regulatory framework for the conduct of Islamic financial operation in Malaysia. A key concern among Islamic banks is regarding the reclassification and requirements in differentiating between Islamic deposit and investment account. IFSA has introduced two major classifications of products for the acceptance of money from customers by the Islamic banks, namely Islamic deposits and investment accounts. This paper retrospectively analyses the development of Islamic deposit products following the enforcement of the IFSA. This paper explores the industry's response to these requirements and outlines the prevailing structures of Islamic deposit products used by Malaysian Islamic banks. It also assesses the impact of IFSA regulations on these structures. This study is based on qualitative research approach which is purely based on primary data gathered through library research and interview. The paper highlights that, while the reclassification requirement under IFSA 2013 necessitates additional efforts from Islamic banks, it aligns Islamic banking more closely with the objective of underlying Shariah contract (maqasid al-aqd). This initiative, though still in its early stages, represents a departure from conventional banking practices and emphasizes the significance of ijtihad in the development of novel financial products. |
| Keywords: | Islamic Financial Services Act, Transition, Islamic Deposit, Investment Account, Shariah contract |
| JEL: | G21 K1 K10 K20 |
| Date: | 2025–01–15 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123343 |
| By: | Rym Ibrahim (COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne, LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The primary venue for the dissemination of academic knowledge remains overwhelmingly the classroom; however, the teaching of certain subjects may be subject to critical questioning – or even militant rejection – by students, thereby signalling a certain democratic vitality. In our case, this concerned a teaching module on innovation and entrepreneurship for ecological and solidarity-based transition. These refreshing challenges invite us to take these criticisms seriously and to search for the reasons behind these rejections in the content of the questioned teachings. In this essay, we specifically explore how the adoption of a performative epistemology might guide our ethical reflection as educators. It seems to us that teaching in innovation management and entrepreneurship constitutes an interesting case study, insofar as it raises a singular paradox: these subjects inherently carry the project of social evolution, if not transformation; yet, in doing so, they frequently draw their ontologies from other social science disciplines, particularly economics, whose systems of representation are often criticised. These teachings are now facing the growing politicisation and activism of young people in relation to climate issues and the questioning of an economic system they consider harmful to the planet. |
| Abstract: | Le lieu privilégié de la diffusion des connaissances académiques restant massivement la salle d'enseignement, l'enseignement de certaines matières peut être amenées à faire l'objet de remises en question critiques – voire d'un rejet militant – de la part des étudiants, signalant par là une certaine vitalité démocratique. Pour notre part, elles ont concerné un module d'enseignement en innovation et en entrepreneuriat pour la transition écologique et solidaire. Ces remises en question rafraichissantes nous invitent à prendre au sérieux ces critiques, et rechercher les raisons de ces rejets dans le contenu des enseignements mise en cause. Nous interrogeons notamment dans cet essai la manière dont l'adoption d'une épistémologique performative pourrait guider notre réflexion éthique en tant qu'éducateurs. Il nous semble que les enseignements en management de l'innovation et en entrepreneuriat constituent un cas d'étude intéressant dans la mesure où ils soulèvent un paradoxe singulier : ils portent intrinsèquement en eux le projet d'une évolution, sinon d'une transformation sociale ; ce faisant ils empruntent néanmoins fréquemment leurs ontologies à d'autres disciplines des sciences sociales, en particulier la science économique, dont les systèmes de représentation sont fréquemment décriés. Ces enseignements se confrontent désormais à la politisation et à l'activisme croissant des jeunes en matière de climat, et à la remise en cause d'un système économique qu'ils considèrent comme délétère pour la planète. |
| Keywords: | Innovation, Education, Ontology, Epistemology, Performativity, Entrepreneurship, Entrepreneuriat, Ontologies, Epistémologie, Performativité |
| Date: | 2024–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04893674 |
| By: | Mahya Karbalaii |
| Abstract: | With the growing popularity and rising value of cryptocurrencies, skepticism surrounding this groundbreaking innovation persists. Many financial and business experts argue that the value created in the cryptocurrency realm resembles the generation of currency from thin air. However, a historical analysis of the fundamental concepts that have shaped money reveals striking parallels with past transformations in human society. This study extends these historical insights to the present era, demonstrating how enduring monetary concepts are once again redefining our understanding of money and reshaping its form. Additionally, we offer novel interpretations of cryptocurrency by linking the intrinsic nature of money, the communities it fosters, and the cryptographic technologies that have provided the infrastructure for this transformative shift. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.10443 |
| By: | Hualin Xiao (LSCP - Laboratoire de sciences cognitives et psycholinguistique - DEC - Département d'Etudes Cognitives - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique, IJN - Institut Jean-Nicod - DEC - Département d'Etudes Cognitives - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CdF (institution) - Collège de France - CNRS - Centre National de la Recherche Scientifique - Département de Philosophie - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres, UM6P - Université Mohammed VI Polytechnique = Mohammed VI Polytechnic University [Ben Guerir]); Antoine Marie (IJN - Institut Jean-Nicod - DEC - Département d'Etudes Cognitives - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CdF (institution) - Collège de France - CNRS - Centre National de la Recherche Scientifique - Département de Philosophie - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres, Aarhus University [Aarhus]); Brent Strickland (UM6P - Université Mohammed VI Polytechnique = Mohammed VI Polytechnic University [Ben Guerir], IJN - Institut Jean-Nicod - DEC - Département d'Etudes Cognitives - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CdF (institution) - Collège de France - CNRS - Centre National de la Recherche Scientifique - Département de Philosophie - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres) |
| Abstract: | Exploring what modulates people's trust in evidence of hiring discrimination is crucial to the deployment of corrective policies. Here, we explore one powerful source of variation in such judgments: moral commitment to gender equality (MCGE), that is, perceptions of the issue as a moral imperative and as identity‐defining. Across seven experiments (N = 3579), we examined folk evaluations of scientific reports of hiring discrimination in academia. Participants who were more morally committed to gender equality were more likely to trust rigorous, experimental evidence of gender discrimination against women. This association between moral commitment and research evaluations was not reducible to prior beliefs, and largely explained a sex difference in people's evaluations on the issue. On a darker note, however, MCGE was associated with increased chances of fallaciously inferring discrimination against women from contradictory evidence. Overall, our results suggest that moral convictions amplify people's myside bias, bringing about both benefits and costs in the public consumption of science. |
| Keywords: | Reference, Memory, Events, Completion, Mental files, Singular thought |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04876452 |
| By: | Radrigán Rubio, Mario; Inostroza, Patricio; Correa, Felipe |
| Abstract: | En el presente estudio se realiza una comparación estadística y legal de las distintas formas jurídicas que podrían asumir las organizaciones de la economía social y solidaria en Chile. Desde el punto de vista legal, se utilizan variables como la finalidad del tipo de organización o empresa, la posibilidad o no de repartir excedentes, si la entidad se puede clasificar o no como “organización de interés público”, la edad mínima necesaria para participar como asociado, el tipo de socio permitido, considerando personas jurídicas o naturales, el número de asociados, el modo de constitución y registro, y la entidad fiscalizadora. En cuanto a las actividades que realizan, el estudio muestra la dificultad de comparar los distintos tipos jurídicos debido, por una parte, a que cada entidad fiscalizadora utiliza clasificadores propios que no son comparables entre sí y, por otra parte, a la dificultad de identificar a las organizaciones y empresas de la economía social y solidaria inscritas en el Servicio de Impuestos Internos para realizar actividad económica. El documento concluye con recomendaciones que abordan aspectos estadísticos de la información sobre los tipos de organizaciones de la economía social y solidaria, así como recomendaciones de política pública para su fomento. |
| Date: | 2024–11–11 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80857 |