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on Heterodox Microeconomics |
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Issue of 2025–03–17
thirteen papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Gustavo Lima Moura |
| Abstract: | This article analytically describes the contributions of Keynesian theory in the post-World War I context, by means of a synoptic reading of the bibliographical sources indicated, the Keynesian theory within its own historical and philosophical context. The discussion covers the main concepts of his theory. The aim is, through the excerpts highlighted in the article, to briefly contextualize the origins of the ideas of John Maynard Keynes' economic thought. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2502.20413 |
| By: | Johannes Buchner |
| Abstract: | The aim of this article is to present elements and discuss the potential of a research program at the intersection between mathematics and heterodox economics, which we call Criticial Mathematical Economics (CME). We propose to focus on the mathematical and model-theoretic foundations of controversies in economic policy, and aim at providing an entrance to the literature and an invitation to mathematicians that are potentially interested in such a project. From our point of view, mathematics has been partly misused in mainstream economics to justify `unregulated markets' before the financial crisis. We thus identify two key parts of CME, which leads to a natural structure of this article: The frst focusses on an analysis and critique of mathematical models used in mainstream economics, like e.g. the Dynamic Stochastic General Equilibrium (DSGE) in Macroeconomics and the so-called "Sonnenschein-Mantel-Debreu"-Theorems. The aim of the second part is to improve and extend heterodox models using ingredients from modern mathematics and computer science, a method with strong relation to Complexity Economics. We exemplify this idea by describing how methods from Non-Linear Dynamics have been used in what could be called "The Dynamical Systems approach to Post-Keynesian Macroeconomics", and also discuss (Pseudo-) Goodwin cycles and possible Micro- and Mesofoundations. We conclude by giving an outlook in which areas a collaboration between mathematicians and heterodox economists could be most promising. The focus lies on the mathematical and model-theoretic foundations of controversies in economic policy, and we discuss both existing projects in such a direction as well as areas where new models for policy advice are most needed from the perspective of the progressive political left. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2502.06015 |
| By: | Woodcock, Ramsi |
| Abstract: | The emerging law and political economy movement (LPE) in the United States has mistakenly conflated the conservative law and economics movement of the mid-20th century with law and economics generally. As a result, LPE has failed to draw upon a rich tradition of left-wing law and economic thought that predates the conservative law and economics movement and would provide LPE with powerful analytic tools. Law and economics is not inherently conservative. Indeed, progressives themselves created the field a century ago. The centerpiece of this early work consisted of two key points about the neoclassical approach to economics. The first was that policymakers can structure markets efficiently to produce any distribution of wealth that they desire. In contemporary parlance, law determines the market. The second was that even if a policymaker is constrained to accept a particular market structure, every market generates a surplus that policymakers can in principle redistribute through price regulation or taxation without harming efficiency. In mistakenly rejecting law and economics as enemy propaganda, LPE has found itself fighting old battles or unable to make intellectual headway in new ones. The movement has treated as a major new discovery the now century-old proposition that law determines the market. Unaware of the proposition’s history, LPE has also failed to grasp that conservative law and economics long ago accepted that proposition and parried by arguing that the market also determines the law. This has prevented LPE from offering a rejoinder—a glaring omission given the role this counterattack played in the demise of the New Deal state. Lacking the concept of economic surplus that left-wing law and economics spent so much time developing a century ago, LPE has also found itself unable to appreciate the great variety of the sources of economic power. LPE has instead tended to attribute all economic power to monopoly, leading to a focus on antitrust policy when taxation and rate regulation are more likely to achieve progressive goals. |
| Date: | 2023–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:twbrk_v1 |
| By: | Fronteddu, Antonio |
| Abstract: | The pursuit of global carbon neutrality makes the energy transition process no longer procrastinable. The switch towards renewable-based energy systems is paving the way for new forms of energy governance that prioritise the role of commons by demarketising access to energy. However, governments’ strategies worldwide seem to prioritise innovation in the raw materials (sun, wind, etc.) rather than in governance – favouring the continued extraction of energy from resource-rich regions. This work will analyse the case of Sardinia as an example where these two phenomena intersect contradictorily, by comparing the bottom-up nature of energy communities (ECs) vis-á-vis the top-down nature of public-private initiatives, alongside their policymaking trajectories. The key insights that will stem from this thesis elucidate a continuum with prior top-down policies of economic extractivism operated by the Italian government in Sardinia. Such top-down policies are conceptualised thanks to core and energy periphery theories and can explain the current mainstream regime of energy transition. Alternative strategies to pursue policy are conceptualised thanks to the energy democracy theory. Such theory envisions an active citizen engagement alongside the sustainable consumption of renewable energy and resources within the realm of energy communities. Therefore, the thesis will conclude that although large-scale top-down policies are being operated in the island, with special reference to the energy transition, energy communities can forge bottom-up alternative examples of policymaking, enabling an energy transition that can cross-tackle long-standing problems of Sardinian society, such as a stagnant economy, depopulation, self-determination, issues of land, landscapes, and pollution. |
| Date: | 2023–05–07 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:pgv78_v1 |
| By: | Juskowiak, Piotr |
| Abstract: | In this article, I ask how Henri Lefebvre’s oeuvre can contribute to the foundations for a metromarxist theory of urban commoning. To provide an answer to this question I discuss three main areas in which his thinking about the common emerges – his anthropology, philosophy of the urban, and politics of autogestion. This allows me to emphasize the multidimensionality of the Lefebvre-minded commoning, which manifests itself not only at the level of local activism but also touches the dimensions of the production of subjectivity and the constitution of the urban. Read in this way, Lefebvre’s theory of urban commoning helps us to move beyond some of the limitations of the existing discussion of urban commons, as well as to make room for a more fruitful dialogue between urban scholars and autonomist Marxists. It also equips us with an alternative conceptual framework that potentially enhances post-Lefebvrian projects of direct urban democracy. |
| Date: | 2023–04–22 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:5gwbk_v1 |
| By: | Fussell, Cathy |
| Abstract: | Governments and businesses are under pressure to realise the value of data. However, value realisation is often fraught, and it is possible to get it scandalously wrong. It is difficult to realise value unless you know what it looks like, and our current theories of value are an inadequate guide. The mechanistic Newtonian-inspired logic that often informs thinking about value creation is counterproductive in complex problem spaces typical of social domains. This logic often leads to harmful practices that erode reputations and trust. However, we do not yet know how to govern complexity to create collective value. To address this problem, I propose a combined theory of value and power underpinned by complexity theory. That is, value is the enhanced capacity to act (i.e. power) we seek from all social arrangements. I rework the power-to, -over, and -with trichotomy to argue that the value created in social assemblages can be hoarded (power-over) or shared (power with). I pose the questions ‘what does a power-with look like?’ and ‘why should we choose it?’ I propose that systemic power with (i.e. governing-with) tends to look like a collective experiment in which data is used as feedback, rather than to judge and control. As all participants obtain value, virtuous cycles of value creation ensue. Governing with is proposed as normatively superior to governing-over for producing long-term collective value and flourishing as the contributing capacities of all are enhanced. We cannot effectively combat domination (i.e. power-over) unless we can clearly articulate an alternative. This paper proposes power-with and governing-with as domination’s foil. |
| Date: | 2023–03–20 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:u7ng3_v1 |
| By: | Vallstrom, Daniel |
| Abstract: | https://doi.org/10.48550/arXiv.2404.03685 With an evolutionary approach, the basis of morality can be explained as adaptations to problems of cooperation. With ‘evolution’ taken in a broad sense, AIs that satisfy the conditions for evolution to apply will be subject to the same cooperative evolutionary pressure as biological entities. Here the adaptiveness of increased cooperation as material safety and wealth increase is discussed — for humans, for other societies, and for AIs. Diminishing beneficial returns from increased access to material resources also suggests the possibility that, on the whole, there will be no incentive to for instance colonize entire galaxies, thus providing a possible explanation of the Fermi paradox, wondering where everybody is. It is further argued that old societies could engender, give way to, super-AIs, since it is likely that super-AIs are feasible, and fitter. Closing is an aside on effective ways for morals and goals to affect life and society, emphasizing environments, cultures, and laws, and exemplified by how to eat. `Diminishing returns’ is defined, as less than roots, the inverse of infeasibility. It is also noted that there can be no exponential colonization or reproduction, for mathematical reasons, as each entity takes up a certain amount of space. Appended are an algorithm for colonizing for example a galaxy quickly, models of the evolution of cooperation and fairness under diminishing returns, and software for simulating signaling development. |
| Date: | 2025–02–03 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:bq438_v2 |
| By: | Pascal Stiefenhofer |
| Abstract: | The emergence of Artificial General Intelligence (AGI) labor, including AI agents and autonomous systems operating at near-zero marginal cost, reduces the marginal productivity of human labor, ultimately pushing wages toward zero. As AGI labor and capital replace human workers, economic power shifts to capital owners, resulting in extreme wealth concentration, rising inequality, and reduced social mobility. The collapse of human wages causes aggregate demand to deteriorate, creating a paradox where firms produce more using AGI, yet fewer consumers can afford to buy goods. To prevent economic and social instability, new economic structures must emerge, such as Universal Basic Income (UBI), which redistributes AGI-generated wealth, public or cooperative AGI ownership, ensuring broader access to AI-driven profits, and progressive AGI capital taxation, which mitigates inequality and sustains aggregate demand. Addressing these challenges in form of renegotiation the Social Contract is crucial to maintaining economic stability in a post-labor economy. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2502.07050 |
| By: | Uquillas, Carlos Alfredo |
| Abstract: | En este artículo se presenta una propuesta metodológica para el ingreso de los residuos y la materia prima secundaria en la matriz insumo producto visión matriz de contabilidad social que permita la evaluación de la política de gestión residuos. Para el efecto se utilizó como marco teórico la demanda agregada de Kalecki, la metodología para elaborar una MIP y las estimaciones porcentuales de residuos industriales y municipales. Con esta información se alcanzó el objetivo planteado y confirmó el equilibrio entre oferta y demanda agregada y las dos condiciones de consistencia macroeconómica necesarias para este modelo. |
| Keywords: | Residuos, demanda agregada, matriz insumo producto, materia prima secundaria. |
| JEL: | C67 E12 E13 Q51 Q53 |
| Date: | 2025–01–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123667 |
| By: | Ismail Benslimane (ERMOT - Laboratoire "Etudes et recherches en Management des Organisations et des Territoires" [Fez] - USMBA - Université Sidi Mohamed Ben Abdellah); Sanae Benjelloun (ERMOT - Laboratoire "Etudes et recherches en Management des Organisations et des Territoires" [Fez] - USMBA - Université Sidi Mohamed Ben Abdellah); Sifouh Nabil; Asserraji Rym |
| Abstract: | This paper aims to explore the evolution of the concept of value co-creation, particularly from a historical perspective, to address the fundamental question: Is value co-creation an incremental evolution or a disruptive revolution within the field of management literature? To achieve this, the initial section of this study summarizes scientific literature related to the concept of value, taking into account both philosophical and economic viewpoints, while also tracing their impact on the concept of value creation from a managerial perspective. Subsequently, this article elucidates the limitations of the traditional approach to value creation, which is based on three distinct perspectives: endogenous, exogenous, and their combination. This naturally leads to an exploration of the reasons behind the shift from the concept of value creation to that of value co-creation. Finally, the paper outlines the fundamental principles of this emerging paradigm. |
| Keywords: | value, value creation, value co-creation, evolution, revolution |
| Date: | 2024–05–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04912324 |
| By: | Lamia Saidane (Laboratoire de Recherche en Economie et Finance Islamiques - Institut Supérieur de Théologie-ISTH) |
| Keywords: | Blue economy, Islamic Blue Financing, climate change, sustainable development, Economie bleue, Financement Islamique bleue, changements climatiques, développement durable |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04949157 |
| By: | Chee, Liberty (Ca' Foscari University of Venice) |
| Abstract: | This paper examines the processes of attempting to set standards for one of the largest labour sectors in the world that employs women. It demonstrates how “domestic work” came to be understood as a problem that demanded responses and solutions in the context of the International Labour Organization. It does so through the lenses of problematization, a mode of analysis that makes it possible for something to become an object of thought. While the emerging literature on problematization in IR illustrates how these processes may be contingent, or a result of outright power struggles, this paper rather demonstrates how problematization may be characterised as one of iteration. It shows the repetition and progression in thinking about the problem of domestic work, the changes in solutions offered, and the conceptual and theoretical innovations to understand elements of domestic work. Through the iterative actions of various actors, which eventually included domestic workers themselves, the phenomenon of domestic work increased in comprehensibility and tractability, from a “non-problem” to a problem of the global economy. |
| Date: | 2023–09–28 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:bfm3s_v1 |
| By: | KOUAKOU, Thiédjé Gaudens-Omer |
| Abstract: | This article analyzes the factors explaining the volatility of cryptocurrency prices and the regulatory pathways aimed at the stability of these prices. Considering cryptocurrency as a social innovation and a total social fact, the social economy approach distinguishes two essential components in the value of cryptocurrencies: an intrinsic value which ensures the stability of this encrypted currency, and a value resulting from a balance of power between ethical users and speculative users with different logics. The extreme volatility of cryptocurrencies is explained by the prevalence of extractive (speculative) logic over collaborative (ethical) logic and is reinforced via their spatial (decentralized) logic. The study recommends “negotiated” and democratic regulation of cryptocurrencies, taking into account the interaction between ethics and technique at the heart of the blockchain, and implemented on a national and supranational scale. Such regulation requires configuring blockchain protocols compatible with limited volatility and cryptocurrencies backed by projects of concrete utility. |
| Keywords: | cryptocurrencies, blockchain, social economy, regulation |
| JEL: | E40 E50 G28 |
| Date: | 2025–02–24 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123774 |