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on Heterodox Microeconomics |
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Issue of 2025–02–24
twenty papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Bernard Gazier (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This text aims at identifying and discussing the content and present meaning of Blaise Pascal's contribution to the understanding of justice in economic matters: which inequalities in terms of wealth, status and power are acceptable or not in a country or a community? Such a project faces a difficulty and a paradox. The difficulty is that economics as a separate discipline does not exist in Pascal's times; the paradox lies in the fact that while Pascal was politically conservative, his heirs in the XXth century converge in a strongly critical stance against capitalism and established order. Our analysis proceeds in three steps. In the first step, we briefly situate Pascal's approach in its historical context, by comparing it to the views of other authors of his time who are considered as forerunners of political economy. In this second, we discuss the content of the legacy as identified and used in the XXth century, by comparing Pascal's statements on justice to the conceptions of his heirs, in order to pinpoint convergences and divergences. The last step adopts an epistemologic and genealogic stance. We take into consideration the long-term changes in knowledge modalities leading to the "human sciences" and among them to "positive" and "normative" economics, in order to set and discuss the meaning of the references to Blaise Pascal in contemporary debates on economic and social justice. |
| Abstract: | Cette contribution a pour objet le contenu et l'actualité des apports de Blaise Pascal à la compréhension de la justice économique : quelles inégalités de richesse, de statuts et de pouvoirs sont admissibles ou non dans un pays, une communauté ? Elle affronte une difficulté et un paradoxe : d'une part l'économie en tant que discipline n'existe pas à l'époque de Pascal, et d'autre part l'orientation conservatrice de Pascal contraste avec celle de sa postérité au XXe siècle, rassemblant des auteurs qui convergent sur la critique du capitalisme et de l'ordre établi. Nous procéderons en trois étapes. La première situe historiquement la démarche de Pascal sur la justice, en la confrontant brièvement aux conceptions d'auteurs de son époque formulant les prémices de l'économie politique. La seconde étape interroge directement les contenus des filiations revendiquées au XXe siècle, en confrontant les énoncés de Pascal sur la justice à ceux de ses successeurs, pour établir les éventuelles convergences et divergences. La troisième étape esquisse une mise en perspective épistémologique et généalogique. Elle introduit les mutations successives des savoirs donnant lieu au déploiement des " sciences humaines " et parmi elles l'économie positive et normative, afin d'inscrire et de questionner le sens des références à Pascal dans les débats contemporains sur la justice économique et sociale. |
| Keywords: | Blaise Pascal, social justice, normative economics, justice sociale, économie normative |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:halshs-04526422 |
| By: | Marco Bardoscia (BANK OF ENGLAND); Adrian Carro (BANCO DE ESPAÑA AND UNIVERSITY OF OXFORD); Marc Hinterschweiger (BANK OF ENGLAND); Mauro Napoletano (SCUOLA SUPERIORE SANT’ANNA, UNIVERSITÉ CÔTE D’AZUR AND SCIENCES PO, OFCE); Lilit Popoyan (UNIVERSITY OF LONDON AND SCUOLA SUPERIORE SANT’ANNA); Andrea Roventini (SCUOLA SUPERIORE SANT’ANNA AND SCIENCES PO, OFCE); Arzu Uluc (BANK OF ENGLAND) |
| Abstract: | We develop a macroeconomic agent-based model to study the joint impact of borrower and lender-based prudential policies on the housing and credit markets and the economy more widely. We perform three experiments: (i) an increase of total capital requirements; (ii) the introduction of a loan-to-income (LTI) cap on mortgages to owner-occupiers; and (iii) the introduction of both experiments at the same time. Our results suggest that tightening capital requirements leads to a sharp decrease in commercial and mortgage lending and housing transactions. When the LTI cap is in place, house prices fall sharply relative to income and the homeownership rate decreases. When both policy instruments are combined, we find that housing transactions and prices drop. Both policies have a positive impact on real GDP and unemployment, while having no material impact on inflation and the real interest rate. |
| Keywords: | prudential policies, housing market, macroeconomy, agent-based models |
| JEL: | C63 D1 D31 E58 G21 G28 R2 R21 R31 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:bde:wpaper:2502 |
| By: | Hanrieder, Tine |
| Abstract: | In modern capitalism, the costs of care and social reproduction are widely externalised to women in households, but also to (women in) community organisations. This article analyses the role of community medicine in the US, and in particular the labour and struggles of community health workers (CHWs). Highlighting the gendered and raced inequalities of US welfare capitalism, I explore how CHWs sustain individuals and communities through three main forms of repair work: Safety net plugging is the often-invisible work of addressing unmet community needs; bridging is the work of intermediating between (punitive) state authorities and oppressed communities; and transforming lived experience is the devalued personal work of turning discrimination into care. Drawing on qualitative fieldwork in the US with a focus on California, my findings stress the laboriousness of caring in a punitive welfare state, and the devaluation of doing so in a ‘meritocratic', credentials-centred social order. I argue that CHWs' repair work might be a cost effective ‘fix’ for the health system, but that their struggle for professional recognition also challenges ingrained, racialised concepts of merit and professionalism. Their struggles connect with broader debates about reparative justice, repair, and labour value in our current socio-ecological crises. |
| Keywords: | racial capitalism; care; social reproduction; labour; global health; community health workers; welfare state |
| JEL: | R14 J01 |
| Date: | 2025–01–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126955 |
| By: | Engelbert Stockhammer; Quirin Dammerer; Andreas Maschke |
| Abstract: | This paper charts the rise and decline of post-Keynesian economics (PKE) in Austria. Keynesianism arrives in Austria via economic policy debates in social democratic circles where it is used to develop a policy strategy later known as Austro-Keynesianism. PKE gets a foothold at the Wirtschaftsforschungsinstitut (WIFO), Austria’s foremost applied economics research institute, and the Chamber of Labour, before establishing itself at the University of Linz. Over the course of the 1980s and 1990s the centre of gravity shifts from Linz to the Wirtschaftsuniversität Wien (WU). During the same period, a lot of applied and policy-oriented research is carried out at WIFO, most of it in German. In the 2000s a blooming of heterodox economics occurs at WU, followed by a rapid dissolution of the heterodox community there. Since around 2010 mainstream economics has reasserted itself and PKE is no longer present at economics departments across Austria. Many of the current generation of post-Keynesian scholars either work abroad, in other disciplines, or in policy-oriented institutions. The main themes of Austrian PKE include income and wealth distribution, finance and financialisation, and ecological economics. In a comparative perspective, the intricate link between the post-Keynesian academic milieu and progressive economic policy is particularly interesting. |
| Keywords: | Keynesianism, post-Keynesian economics, Austro-Keynesianism, Austria, economic policy |
| JEL: | B20 B24 B51 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2503 |
| By: | Madden, David J. |
| Abstract: | There is broad recognition today that there is a link between the crisis of social reproduction and the housing problem. But their precise relationship is not always clear. This paper is an attempt to clarify their connection. Housing, this paper argues, is not merely the location or container of the crisis of social reproduction. Rather, there are elements of the contemporary housing system which intensify and shape the crisis of social reproduction. Drawing on feminist political economy and critical housing research, this paper identifies four major pathways by which the housing system exacerbates the crisis of social reproduction: depletion, disruption, redomestication, and recommodification. It also considers housing as a site for repoliticising social reproduction. Ultimately, the paper argues that a complete account of the housing question cannot ignore social reproduction as a political‐economic process. |
| Keywords: | social reproduction; housing; housing crisis; housing politics; political economy of housing |
| JEL: | J1 |
| Date: | 2025–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126344 |
| By: | Bernard Gazier (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Frédéric Bruggeman (Auteur indépendant) |
| Abstract: | This article explores the idea that a possible commitment to an ecological bifurcation requires the coupling of political democracy and social democracy. This recourse to social dialogue is doubly paradoxical. On the one hand, it is very unevenly developed, and on the whole, has been weakened since the 1970s. On the other hand, unions mainly voice the concerns of workers faced with the threat of job losses and impoverishment arising from both the manifestations of the ecological crisis and the measures designed to respond to it. However, the mobilisation of social democracy is essential if all stakeholders, and workers in particular, are to be involved. We set out to show that this requires a broadening and renewal of social dialogue. The argument proceeds in four stages. First, we look back at current difficulties, to show that the aim is in fact to establish a new social contract to replace the one defined and implemented during the Fordist era. We then examine how ecological issues and players are currently being introduced into the existing social dialogue in France and Europe, and show that this process is not up to the challenge. Thirdly, a theoretical perspective is introduced which broadend the discussion by focusing on the "real freedom" of workers and the old and new forms of scarcity facing our societies. Finally, we return to the subject of social dialogue, examining the major transformations that are needed if the emancipation of workers and the ecological transition are to be mutually supportive. |
| Keywords: | Social dialogue, ecological transition, capabilities, Transitional Labour Markets, Dialogue social, transition écologique, capabilités, Marchés Transitionnels du travail |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:halshs-04490862 |
| By: | Charlène Arnaud (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INP - PURPAN - Ecole d'Ingénieurs de Purpan - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, LGTO - Laboratoire de Gestion et des Transitions Organisationnelles - UT3 - Université Toulouse III - Paul Sabatier - UT - Université de Toulouse); Pascale Chateau Terrisse (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INP - PURPAN - Ecole d'Ingénieurs de Purpan - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This research is rooted in the recently emerging stream of research on cooperative degeneration that acts as a counterpoint to the initial orthodox approaches and focuses on the processes, conditions, and practices that enable cooperatives to avoid degeneration. This research therefore analyzes a repertoire of practices that constitute an alternative organization and provides us with insight into the organization of work, coordination mechanisms, cooperative practices, and the rights and capacity for expression and decision-making of each individual within FINACOOP, a French multi-stakeholder accounting cooperative (SCIC – société coopérative d'intérêt collective). This makes it possible to assess under what conditions and how the SCIC studied maintains its alternative character, that is, combats the various dynamics of degeneration (of work, organization, and culture). Based on an atypical case study (FINACOOP is the only chartered accountancy firm operating under SCIC status in France), this research makes a significant contribution to the theory of degeneration by improving our understanding of the conditions for the establishment of this alternative that is distinctive in two ways: the fact that it operates within a regulated profession and its multi-stakeholder nature. |
| Keywords: | Neo-weberian perspective, Degeneration, Multi-stakeholder cooperative, Liberal profession |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04906039 |
| By: | Boschma, Ron; Hernández-Rodríguez, Eduardo; Morrison, Andrea; Pietrobelli, Carlo (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn) |
| Abstract: | This paper combines insights from the literatures on Global Value Chains (GVC), Economic Complexity and Evolutionary Economic Geography to assess the role of GVC participation and regional capabilities in fostering economic complexity in EU NUTS-2 regions. Our results suggest there is no such thing as a common path towards economic complexity across EU regions. Low-income regions manage to benefit from both regional capabilities and GVC participation. In contrast, high-income regions rely more on their existing local capabilities rather than on GVC participation. |
| JEL: | B52 F23 O19 O33 R10 |
| Date: | 2025–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025002 |
| By: | Filippo Pietrini |
| Abstract: | This paper adopts the synthetic control method to empirically tests Willis thesis that †the major breakthrough" (Willis, 1977, p. 420) in the dissemination of Marx in England was the publication of the first volume of Capital in English in 1887. The specificities of late Victorian society and the fact that Marx wrote his theoretical works in German contributed to his anonymity in England up the 1880s-1890s. The liberal-radical roots of the left-wing intellectuals and of the working class movements together with the strong parlamentary tradition constituted a challenging environment for the spread of Marxism. After having downloaded data from Google Ngram, I run the SC model. Findings reveal that the 1886 is the breakthrough year for the quotations of Marx in England. Willis’s thesis on 1887 as the decisive year is thus slighlty anticipated by the quantitative result. Rather, two events that possibly revived Marx’s quotations were the publication of the first 10 chapters of ‘Capital’ in Hyndman’s newly bought and renamed “To-Day: Monthly Magazine of Scientific Socialism†and the Trafalgrar Riots (also known as West end riots or Pall Mall riots) of February 1886, an event that broadened the perception of socialist imminence to the average public. |
| Keywords: | Marx Dissemination, Synthetic Control Method, Victorian zeitgeist, Modern socialism |
| JEL: | B14 B24 B51 Z10 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:frz:wpaper:wp2025_01.rdf |
| By: | Ulrike Lepont (CEE - Centre d'études européennes et de politique comparée (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Many studies highlight a strengthening of economic interventionism since 2008, leading to the redefinition of the state's role in the economy and the state/market relationship. This article seeks to demonstrate that this redefinition is not limited to the strictly economic sphere but outlines a new framework for public action in general, one which we propose to characterize by the concept of the "Investor State." By this concept, we refer to a strong tendency to view the role of the state as an "investor, " in reference to private financial investors, but also to make investment – in the economic and financial sense – the primary basis for legitimizing its action. In fact, the contemporary valorization of "public investment" entails the delegitimization and maintenance of austerity policies for all areas of public action that are not considered to contribute to "productive" investment. This primarily concerns all sectors that fall under the welfare state. Thus, austerity policies, far from being in contradiction with the Investor State, are at the heart of its logic. The proposed analytical framework has primarily been developed based on the French case, but the author argues for a broader application, particularly at the level of the European Union. |
| Abstract: | De nombreux travaux ont commencé à pointer un renforcement de l'inter- ventionnisme économique depuis 2008, conduisant à la redéfinition du rôle de l'État dans l'économie et de la relation État/marché. Cet article cherche à montrer que cette redéfinition n'est pas limitée à la sphère strictement économique mais dessine les contours d'un nouveau cadre d'action publique en général, que nous proposons de caractériser par le concept d'« État investisseur ». Par ce concept, nous désignons la propension à envisager le rôle de l'État en tant qu'« investisseur », en référence aux investisseurs financiers privés, mais aussi à faire de l'investissement au sens écono- mique et financier du terme le principal registre de légitimation de son action. De fait, la valorisation contemporaine de l'« investissement public » a pour corollaire la délégiti- mation et le maintien de politiques d'austérité pour tous les domaines d'action publique qui ne sont pas considérés comme contribuant à l'investissement « productif ». Sont concernés au premier chef tous les secteurs qui relèvent de l'État-providence. Ainsi, les politiques d'austérité, loin d'être en contradiction avec l'État investisseur, sont au cœur de sa logique. Le cadre d'analyse proposé a principalement été élaboré à partir du cas français mais l'autrice défend une application plus large, en particulier au niveau de l'Union européenne. |
| Keywords: | AUSTERITY, ECONOMIC INTERVENTIONISM, EUROPEAN UNION, FISCAL POLICIES, FRANCE, INDUSTRIAL POLICIES, INVESTOR STATE, NEOLIBERALISM, PUBLIC INVESTMENT POLICIES, politique budgétaire, union européenne, austérité, politiques industrielles, État investisseur, néo-libéralisme, politiques d’investissement public, interventionnisme, France |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04875283 |
| By: | Burschel, Maria |
| Abstract: | Background and Objective: This paper posits that market-oriented economies foster narcissistic behavior due to their focus on profit, private ownership, competition, and free markets. The research presented demonstrates that while overall levels of narcissism remain stable, certain political groups and leaders exhibit higher levels of narcissism compared to the general population. Due to the visibility and attention-seeking nature of narcissistic individuals, values such as self-promotion, prioritizing personal gain, blame-shifting, diminishing others, and populist rhetoric become normalized. These trends contribute to right-wing populism, social injustice, and climate change denial. The paper elaborates on the dynamics of narcissism and the use of gaslighting as a manipulation tactic to scapegoat particularly vulnerable societal groups and the field of Social Work itself. Conclusions will be substantiated with examples from politics and business, highlighting the risks posed by narcissistic leaders. The article aims to offer a framework for understanding the rise of right-wing populism in Europe and the USA, which may hinder progress towards a socially, economically, and ecologically sustainable society. Method: The article is based on an integrative literature review. Conclusion: The article suggests considering human personality when selecting leaders and analyzing political movements. It highlights the role of social work in forming social and economic structures that encourage empathic, responsible, and diligent behavior rather than narcissistic behavior. The article notes the need for further research to support social change and innovation. Additionally, it offers recommendations for policymakers, educators, and social workers. |
| Keywords: | Narcissism, capitalism, transformation, sustainability |
| JEL: | P |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iubhso:311208 |
| By: | Jérôme Blanc (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Our current monetary system displays major flaws as to whether it can support the ecological turn. This article stylises them as bank credit, a-territoriality and non-specialisation of money, and commensurability. Yet, the variety of experiences of alternative currencies displays remarkable features like territorialisation, socio-economic specialisation of money, a practical criticism of commensurability and non-bank funding and financing schemes. Considering those features seriously, and making them part of monetary systems, require adapting the existing monetary infrastructure by creating specific circuits through the establishment of boundaries. |
| Keywords: | Ecological turn, monetary infrastructure, territorialisation, alternative currencies |
| Date: | 2024–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:halshs-04513773 |
| By: | Diab, Osama |
| Abstract: | By emphasising the role of historical contingency in determining the losers and winners of economic interaction, the article argues that barter terms of trade (BTT) evolution is key to understanding central phenomena of the modern capitalist era apart from Weberian and Sombartian culturalist interpretations. By examining BTT data between Egypt and Britain in the long 19th century, the article demonstrates how it was a rational choice by an independent economy to commit to a 'peripheral' comparative advantage as future value evolution could not have been predicted at the onset of such commitment. Relying on previously unpublished archival records, the article also explores the role of empire and political power in determining supply and demand and hence value evolution, challenging neoclassical assumptions about the central role of consumer choice in influencing supply, demand and commodity value. The article argues that the BTT evolution is key to understanding two central phenomena of the modern capitalist era away from Weberian- and Sombartian-style culturalist interpretations. First is the growing uneven development–known as the Great Divergence–between the 'core' and the 'periphery' of the global economic system, and second is the rise of anti-colonial sentiments and policies in the Global South. |
| Date: | 2023–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:osf:africa:g69ed_v1 |
| By: | Claude Didry (CMH - Centre Maurice Halbwachs - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - Département de Sciences sociales ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres) |
| Abstract: | Beyond an economic determinism associating industrial structures (or "Fordism") to collective bargaining, EC/SC envisage Industrial Relations (IR) from the concrete coordinations of employees starting at the workplace level, as a normative expression of their collectivities. It has analyzed firstly IR as "investments in form", that can be used as reference enabling people to find their way in labor conventions. IR are not the result of a pure spontaneous mobilization of the workers' collectivity, but their dynamic is based on legal definitions of the collective agreements, the procedure of negotiation and their actors (employees-employers), by which it refers to legislation as a state production expressing conventions of the state. The sociohistorical emergence of labor law and employment explains a radical modernization of IR evidenced by the French case at the beginning of the XXth century. IR have followed paths specific to different states influencing each other in a "histoire croisée", leading sometimes to transnational negotiated legislations as in the 1990s EU. The current developments of IR during the neoliberal period witness an open-ended process articulating new issues, such as employment in the face of intense restructuring, and reactivating mobilization on wages issues in a context of inflation. |
| Keywords: | Workplace Worlds of Production Industrial Relations Employment Contract Subcontracting Cause Strike Collective Bargain Investments in form Qualifications Unions, Workplace, Worlds of Production, Industrial Relations, Employment Contract, Subcontracting, Cause, Strike, Collective Bargain, Investments in form, Qualifications, Unions |
| Date: | 2024–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:halshs-04748305 |
| By: | Kinuthia, Dickson; Oingo, Balentine; Bryan, Elizabeth; Davis, Kristin E.; Wallin, Elsa; Bukachi, Salome A. |
| Abstract: | Agricultural intensification that prioritizes profits over people and the environment is increasingly recognized as harmful to people’s wellbeing and the sustainability and resilience of smallholder farming systems. Nature-based solutions are part of nature-positive eco-agrifood systems and are critical for restoring ecosystems and preventing further biodiversity loss and environmental degradation during a climate crisis. To support more widespread adoption of nature-based solutions, it is important to understand dynamics within local communities where these solutions will be applied. This includes deeper understanding of environmental challenges, institutional and governance arrangements, current farming practices, gender relations, and perceptions of nature-based solutions. This study draws on qualitative data on these topics collected from smallholder farmers and key informants in three counties of Kenya. The discussion centers on the potential for nature-based practices to place agricultural production systems on a more sustainable path. |
| Keywords: | agricultural production; gender; natural resources; nature-based solutions; smallholders; sustainability; Africa; Eastern Africa; Kenya |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprid:2319 |
| By: | Biagio Bossone |
| Abstract: | This article investigates whether an economy with perfectly flexible prices and wages can experience persistent unemployment, challenging classical and neoclassical views that markets clear efficiently through price adjustments. Adopting a strictly neoclassical framework, but differing from other contributions, the article explores how conventional beliefs shape macroeconomic outcomes. It demonstrates that a recessionary shock can lead to prolonged unemployment when agents adhere to a Keynesian Conventional Belief (KCB), in contrast to the self-correcting outcomes associated with the Walrasian Conventional Belief (WCB). The article concludes that if agents operating in a neoclassical economy hold Keynesian beliefs, the economy's response to shocks will be influenced by these beliefs, resulting in Keynesian outcomes. This analysis underscores the potential of policies targeting nominal stability to stabilize expectations and support full employment while cautioning against excessive reliance on fiscal and monetary interventions in structurally weak economies. Aligning with Keynes’s original policy vision, the article advocates combining “counter-cyclical” macroeconomic policies with “anti-cyclical” public-sector actions to enhance the economy’s productivity and growth potential. |
| Keywords: | Expectations formation; Involuntary unemployment; Macroeconomic policies; Recessionary shock; Self-fulfilling equilibria |
| JEL: | D51 E12 E13 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2504 |
| By: | Dominy, Jonas; Gräbner-Radkowitsch, Claudius; Heimberger, Philipp; Kapeller, Jakob |
| Abstract: | This paper analyzes developmental trajectories in the EU. In doing so, it diagnoses economic polarization on two different levels: for one, we observe a divergence of average incomes across EU countries as a persistent empirical feature associated with European integration. For another, European economic integration in general and the introduction of the Euro in particular are associated with the emergence of heterogeneous developmental trajectories, which build on, and intensify differences in technological capabilities, institutional and legal setups, as well as labor market characteristics. When clustering countries with reference to similarities in terms of macroeconomic and institutional characteristics across countries, we find evidence for the existence of four distinct development models: core, periphery, and workbench economies, as well as financial hubs. Each of these groups is defined by distinct technological, institutional, and macroeconomic characteristics. Our findings point to suitable ways for extending and refining existing typological approaches, such as the Varieties of Capitalism or the growth model approach, thereby allowing us to better account for the heterogeneity of developmental pathways emerging in the course of an intensifying European race for the best location. |
| Keywords: | Economic polarization, European integration, Development models, growth models, European Union |
| JEL: | B5 F6 F45 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:311852 |
| By: | Alicia Vidler; Toby Walsh |
| Abstract: | The over-the-counter (OTC) government bond markets are characterised by their bilateral trading structures, which pose unique challenges to understanding and ensuring market stability and liquidity. In this paper, we develop a bespoke ABM that simulates market-maker interactions within a stylised government bond market. The model focuses on the dynamics of liquidity and stability in the secondary trading of government bonds, particularly in concentrated markets like those found in Australia and the UK. Through this simulation, we test key hypotheses around improving market stability, focusing on the effects of agent diversity, business costs, and client base size. We demonstrate that greater agent diversity enhances market liquidity and that reducing the costs of market-making can improve overall market stability. The model offers insights into computational finance by simulating trading without price transparency, highlighting how micro-structural elements can affect macro-level market outcomes. This research contributes to the evolving field of computational finance by employing computational intelligence techniques to better understand the fundamental mechanics of government bond markets, providing actionable insights for both academics and practitioners. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.16331 |
| By: | Marie-Laure Lambert (AMU - Aix Marseille Université, LIEU - Laboratoire Interdisciplinaire En Urbanisme - AMU - Aix Marseille Université); François Briens (LIEU - Laboratoire Interdisciplinaire En Urbanisme - AMU - Aix Marseille Université) |
| Abstract: | Energy sobriety or sufficiency, and more broadly, of all consumption of natural resources, is a goal of climate policies, inscribed in law. The document presents examples of regulations that push towards sobriety but reinforces social inequalities, and on the contrary, regulations that begin to seek a just and equitable sobriety. To achieve this, it is possible to rely on a qualification of uses, as defined by the "Négawatt" approach, to guarantee vital and essential uses, and regulate or prohibit extravagant or harmful uses. To achieve this, the law still has many questions to answer. However, recent court decisions relaxing activists show that climate inaction justifies warnings by citizens or scientists. |
| Abstract: | La sobriété énergétique, et plus largement, de toutes les consommations de ressources naturelles, est un objectif des politiques climatiques, inscrit dans le droit. Le document présente des exemples de régulations qui poussent vers une sobriété qui renforce les inégalités sociales, et au contraire, des régulations qui commencent à rechercher une sobriété plus juste et équitable. Pour y parvenir, il est possible de s'appuyer sur une qualification des usages, telle que définie par la démarche "Négawatt", pour garantir les usages vitaux et essentiels, et réguler ou interdire les usages extravagants ou nuisibles. Pour y parvenir, le droit doit encore faire face à de nombreuses questions. Pour autant, de récentes décisions de justice relaxant des activistes montrent que l'inaction climatique justifie les alertes portées par les citoyens ou les scientifiques. |
| Keywords: | sobriety, climatic justice, social inequities, sobriété énergétique, sobriété numérique, justice climatique, Droit de l'énergie, Inégalités sociales et environnementales |
| Date: | 2024–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:halshs-04837255 |
| By: | Eckhard Hein; Moritz Marpe; Karolina Schütt |
| Abstract: | Ederer/Rehm (2020b) empirically calibrated long-run equilibrium wealth distribution for ten European countries, mainly using 2010 Household Finance and Consumption Survey (HFCS) data. Measuring wealth inequality through the capitalists’ share of wealth, they find that seven out of ten countries deviate from Piketty’s (2014) prediction that under the condition of r > g wealth distribution will become ever more unequal. With the actual capitalists’ share in 2010 below the calibrated equilibrium, however, they forecast increasing wealth inequality. Our research extends this analysis in two ways. Firstly, using the 2010, 2014, 2017, and 2021 HFCS data, we recalibrate the equilibrium based on 2010 data and track the capitalists’ share of wealth over the decade. We observe convergence tendencies towards the stable long-run equilibrium in some but not in all countries. Secondly, we expand the Ederer/Rehm (2020b) model to include real estate assets and mortgage debt. Recalibrating the long-run equilibrium for this extended model using 2010 values produces a similar pattern: For three countries, Piketty’s prediction holds, while for the remaining seven the equilibrium capitalists’ wealth share is lower than 100 per cent. The extended model shows a much lower actual capitalists’ share of wealth, supporting the idea that real estate assets, adjusted for mortgage debt, are more equally distributed than other types of wealth. Wealth inequality for the extended model is also predicted to rise. Based on 2014, 2017 and 2021 HFCS data, we indeed find a convergence of actual wealth distribution towards the stable long-run equilibrium for some, but not for all countries. In several countries, the stable long-run equilibrium distribution itself varies over time, partly in line with actual distribution which points to potential endogeneity of the former towards the latter. The channels remain to be explored. |
| Keywords: | Wealth distribution, post-Kaleckian model, model calibration |
| JEL: | D31 E12 E21 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2506 |