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on Heterodox Microeconomics |
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Issue of 2025–04–07
eighteen papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Jonas Dominy (Institute for Socio-Economics, University of Duisburg-Essen, Germany); Claudius Graebner-Radkowitsch (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Institute for Plural Economics, Europa-Universitaet Flennsburg, Germany); Jakob Kapeller (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Institute for Socio-Economics, University of Duisburg-Essen, Germany); Philipp Heimberger (The Vienna Institute for International Economic Studies, Austria) |
| 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. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:ico:wpaper:159 |
| By: | Michalis Nikiforos |
| Abstract: | This chapter discusses the “utilization controversy, ” the debate on whether or not demand plays a role in the determination of the rate of utilization in the long run. First, it explains why utilization has a central role in the various theories of growth and distribution. Second, it examines the theory of utilization and explains how the standard model does not recognize a role of demand and outlines recent theoretical advancements that justify an endogenous-to-demand long-run rate of utilization. Finally, it examines different estimates of utilization. It argues that the Federal Reserve measure of utilization, commonly employed in the debate, is inappropriate to capture long-run variations in utilization. Other measures such as the Average Workweek of Capital or the National Emergency Utilization Rate are better suited. These estimates provide empirical support for a utilization rate which is endogenous to demand in the long run. |
| Keywords: | Accumulation; Growth; Distribution; Utilization |
| JEL: | B22 D20 D30 O40 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2508 |
| By: | Michel Bellet (Université Jean Monnet Saint-Étienne, CNRS, Université Lyon 2, emlyon, GATE Lyon Saint-Étienne UMR 5824, F-42023, Saint-Etienne, France) |
| Abstract: | Saint-Simonianism is often associated with the promotion of a productivist industrialism rooted in science and technology—a model that has fueled, to this day, a tension between its emancipatory and reformist aspirations on one hand, and environmental considerations on the other. This article reexamines that assessment in detail by exploring Saint-Simon’s naturalist philosophy and its transformation by his disciples. It highlights and explains lesser-known aspects that add complexity to the initial interpretation without fundamentally challenging it. |
| Keywords: | Saint-Simonianism, industrialism, ecological economics, naturalist philosophy, religion |
| JEL: | B14 Q5 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:gat:wpaper:2504 |
| By: | Emmanuel Caiazzo (University of Naples Federico II; Department of Economics and Statistics, University of Naples Federico II, CSEF, and MoFiR) |
| Abstract: | This paper provides an early warning exercise suggesting that in complex economies, characterized by the production of knowledge-intensive products, systemic banking crises are more frequent, even after considering standard predictors of crises. We relate our findings to standard contributions in development theory linking economic growth to structural transformation of the economy. In this perspective, we argue that while transitioning from a simple to a more complex productive structure can promote economic growth, it can also increase financial instability. |
| Keywords: | Financial fragility; Economic complexity Index; production Capabilities |
| JEL: | G01 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:anc:wmofir:190 |
| By: | Nelli, Linnea; Virgillito, Maria Enrica; Vivarelli, Marco |
| Abstract: | The aim of this paper is to understand whether what has been labelled as “twin transition”, at first as a policy flagship, endogenously emerges as a new technological trajectory stemming by the convergence of the green and digital technologies. Embracing an evolutionary approach to technology, we first identify the set of relevant technologies defined as “green”, analyse their evolution in terms of dominant blocks within the green technologies and concurrences with digital technologies, drawing on 560, 720 granted patents by the US Patent Office from 1976 to 2024. Three dominant blocks emerge as relevant in defining the direction of innovative efforts, namely energy, transport and production processes. We assess the technological concentration and underlying complexity of the dominant blocks and construct counterfactual scenarios. We hardly find evidence of patterns of actual endogenous convergence of green and digital technologies in the period under analysis. On the whole, for the time being, the “twin transition” appears to be just a policy flagship, rather than an actual endogenous technological trajectory driving structural change. |
| JEL: | O33 O38 Q55 Q58 |
| Date: | 2025–03–17 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025008 |
| By: | Francesco Felis |
| Abstract: | Il lavoro parte dal presupposto che l’economia è una scienza sociale. Pertanto deve essere realistico, riferirsi alla realtà sia nei suoi presupposti e ambientazioni sia nei suoi effetti: non può essere “la meccanica celeste di un mondo inesistente†. Per questo motivo il lavoro analizza una teoria, la Scuola Austriaca di Economia, che ha avuto un impatto in politica. Lo analizza partendo da uno dei suoi principali esponenti viventi. Ne contesta alcuni approcci a partire dal realismo e certi approcci giuridici scorretti. A volte il diritto, ex facto oritur ius, è più realistico dell’economia. The work starts from the assumption that economics is a social science. Therefore it must be realistic, refer to reality both in its assumptions and settings and in its effects: it cannot be "the celestial mechanics of a non-existent world". For this reason the work analyzes a theory, the Austrian School of Economics, which has had an impact in politics. He analyzes it starting from one of its main living exponents. He contests some of its approaches starting from realism and certain incorrect legal approaches. Sometimes law, ex facto oritur ius, is more realistic than economics. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:gfe:pfrp00:00069 |
| By: | César Castillo-García (Department of Economics, Wesleyan University) |
| Abstract: | This paper analyzes the evolution of household income in Peru over the past two decades using the maximum entropy method and an expectation-maximization (EM) algorithm to estimate a mixture of density components that reflect various aspects of the political economy. The findings suggest that Peru’s income distribution aligns with a combination of exponential and Pareto distributions, similar to patterns observed in advanced capitalist economies. For the period 2004-2022, the estimates indicate that 10% of the income distribution is best described by an exponential density, 8% by a log-normal distribution, and 82% by a Pareto distribution. The chapter also confirms the persistence of these exponential-log-normal-Pareto patterns in Peru and other Latin American economies. In response to criticisms regarding the method’s handling of homoplutia, the chapter presents descriptive statistics showing that variations in homoplutia across countries correlate with profitability trends, providing evidence for the relatively low significance of this phenomenon in Peru’s household income distribution. Lastly, the estimation of the Lorenz curve for the Peruvian income distribution suggests that the finite mixture model, along with the exponential density, performs better in capturing the dynamics of income distribution. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:wes:weswpa:2025-002 |
| By: | International Finance Corporation |
| Keywords: | Poverty Reduction-Equity and Development Poverty Reduction-Employment and Shared Growth Law and Development-Labor & Employment Law |
| Date: | 2023–12 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40722 |
| By: | Jakob Kapeller (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Institute for Socio-Economics, University of Duisburg-Essen, Germany); Laura Porak (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria); Bernhard Schuetz (Institute for Socio-Economics, University of Duisburg-Essen, Germany; The Vienna Institute for International Economic Studies, Austria) |
| Abstract: | Der Sektor Mobilitaet steht im Zusammenhang mit der Klimakrise immer wieder im Mittelpunkt der oeffentlichen Debatte – auch deshalb, weil es im Verkehrssektor in der Vergangenheit nicht gelungen ist das bestehende Emissionsvolumen zu reduzieren. Vor diesem Hintergrund scheint eine Verlagerung des Verkehrssektors in Richtung Schiene als zentrale Optionen um die Klimavertraeglichkeit des Verkehrssektors zu erhoehen. Eine solche Verlagerung erfordert jedoch einen Ausbau der Infrastruktur. Daher beschaeftigt sich dieser Policy Brief mit den Herausforderungen und Chancen, die der transeuropaeische Schieneninfrastrukturausbau mit sich bringt. Zu diesem Zweck wird Deutschland, das auf Grund fehlender Schieneninfrastrukturinvestitionen alleine in diesem Bereich eine Investitionsluecke in Hoehe von 100 Mrd. Euro aufweist, in Form einer mixed-methods Fallstudie genauer analysiert. Hierfuer, wurden auf Basis einer umfaenglichen Literaturrecherche Interviews mit zentralen Expert-innen (Mitarbeitenden der Bundesbahnen, Interessensvertretungen und Politiker-innen) geführt und in Folge, auch unter Einbezug von Informationen aus den Interviews, eine Input-Output-Analyse durchgeführt, die die Wertschoepfungs- und Beschaeftigungseffekte von Infrastrukturinvestitionen berechnet. Die so erzielten Ergebnisse legen nahe, dass eine rasche Umsetzung der Baumassnahmen innerhalb der Kapazitaetsgrenzen laege und zugleich hoehere Wertschoepfungs- und Beschaeftigungseffekte erzeugen wuerde. Ferner steigert eine Verschiebung des Ausbaus die Kosten wegen der anhaltenden Baukosteninflation. Abschliessend argumentiert der Policy Brief, dass der Infrastrukturausbau von einer aktiven Gestaltung der politischen Rahmenbedingungen sowie einer Ausweitung der oeffentlichen Finanzierung fuer Infrastruktur begleitet werden sollte. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:ico:wpaper:158 |
| By: | Valeria Jimenez; Ryan Woodgate |
| Abstract: | Despite the scientific consensus on the need to achieve net-zero greenhouse gas (GHG) emissions by 2050 as a key environmental goal, there is little consensus among economists on the best pathway to achieve this crucial goal. Particularly contentious is what achieving net zero in time implies for the growth rate of the global economy. In the search for a post-Keynesian answer, we first review the related literature showing the divide between degrowth/post-growth authors, who argue that net zero implies a need for negative or zero growth, and Keynesian green growth advocates, who argue that positive growth rates are required. Motivated by these controversies, we develop a simple Sraffian supermultiplier model of the global economy, where GHG emissions depend on the stock of capital in production and absorption depends on the stock of natural capital, from which we can formally demonstrate that the goal of net-zero GHG emissions implies a constraint on the growth rate of the global economy. Crucially, this “balance-of-emissions constraint” on growth depends on a number of key parameters that are influenced by public policy, such as the share of public spending on natural capital, the share of investment in low-emission production capital, and the parameters that enter the supermultiplier, which determine the size of the rebound effect. From this, we model different pathways to net zero and argue for an interventionist policy mix, which we show brings about net zero emissions much more rapidly than any laissez-faire alternative scenario, even one with utmost optimism about future green technology. |
| Keywords: | Degrowth, post-growth, green growth, net zero, structural change |
| JEL: | E12 O44 Q54 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2507 |
| By: | Jérôme Ballet (Université de Bordeaux, Bordeaux School of Economics (BSE)); Damien Bazin (Université Côte d'Azur; GREDEG CNRS); Frédéric Thomas (University of Montpellier, CNRS, IRD, MIVEGEC, France); François-Régis Mahieu (Fund for Research in Economic Ethics, FREE, France) |
| Abstract: | Governments, civil society groups, and international organisations actively raise awareness about major environmental risks and work to mitigate them. In practice, however, sustainable development tends to be approached in stages: first by addressing the economic dimension, followed by the environmental, and finally, the social dimension. We argue that this sequencing reflects an inherent bias in how the importance of each dimension is perceived, with the social dimension consistently being undervalued. We challenge the prevailing notion that the social dimension is synonymous with poverty and is detrimental to natural resources. Instead, we propose that sustainable development must shift towards a model of socially sustainable development. Our findings suggest that socially sustainable development is more closely aligned with addressing inequity and enhancing capabilities, rather than merely alleviating poverty. It is therefore essential to move beyond the outdated view that economics and environmental protection are in conflict. Instead, we must frame the environment as a matter of human justice, where the social dimension is given its rightful importance. In this context, we present three key pillars of analysis—equity, safety, and social cohesion—to renew the sustainability debate and mitigate the disruptions caused by imbalances between the dimensions. |
| JEL: | Q01 Q26 Q50 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-06 |
| By: | Anselm Küsters; Benjamin Schneider |
| Abstract: | Will robots or artificial intelligence take our jobs? At the center of the debate about the future of work is “technological unemployment”, a term that has a seemingly simple definition but has in fact been used and defined differently by economists. In this paper, we explore how economists have discussed the potential for new techniques to replace workers since Aristotle, and how they have defined and conceived of technological unemployment over the past century. We begin with a detailed analysis of classic texts on this topic, from ancient times to the 20th century. To capture changes in the research frontier, we quantitatively and qualitatively analyze all 153 articles that mention the term “technological unemployment” in twelve major economics journals, including the top five, since their inception. We then use the 19 editions of Paul Samuelson’s seminal textbook and a cross-section of 43 economics textbooks from the 2000s and 2010s to observe the state of discourse and changes in economics pedagogy. Our analysis shows that economists have used a range of definitions in their discussions of technological unemployment, and most definitions are brief and imprecise. Economics textbooks notably omit technological unemployment in their discussions of the relationship between technological change and employment, despite the continuing interest in the topic in the academic literature. Nonetheless, we find a surprising consensus in our corpus that technological change may cause unemployment. Over time, the debate around technological unemployment has become narrower and more technical, but also more heated during historical periods of technological anxiety. We suggest that the adoption of a clear definition with specific temporal and scale modifiers could clarify theoretical debates and improve the precision of future empirical research on the topic, which will allow economists to speak directly to public and policy concerns |
| Date: | 2025–03–13 |
| URL: | https://d.repec.org/n?u=RePEc:oxf:esohwp:_218 |
| By: | Samuel De La Cruz Solal (Université Côte d'Azur, France; GREDEG CNRS) |
| Abstract: | The aim of this article is to highlight the potential of codesign approaches to address the risk of boomerang effects following the implementation of social norm nudges. I highlight several epistemic causes of the boomerang effect and argue that a co-design of nudges could provide an effective solution to address these causes. Furthermore, I argue that such an approach, based on the deliberation process between citizens and experts, is likely to enhance the ethical aspects of nudging. After a clarification of the notion of ‘codesign’, which remains quite elusive in the literature, I discuss some challenges that codesign approaches face, in particular regarding the status of ‘expert-citizens’ in codesign |
| Keywords: | social norm nudges, boomerang effect, expert-citizens, co-design, social acceptability, behavioural public policies |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-05 |
| By: | Francisco J. Medina-Albaladejo (Departament d’Anàlisi Econòmica e IUDESCOOP, Universitat de València, Valencia, Spain); José L. Martínez-González (Facultat d’Economia i Empresa, Universitat Autònoma de Barcelona, Barcelona, Spain) |
| Abstract: | The literature has highlighted the importance of various factors in explaining the success or failure of cooperatives based on the study of multiple historical cases. The aim of this paper is to identify the determinants of the performance of Spanish consumer cooperatives using a sample of 14 societies between 1898 and 1935. The results show that their successful performance was driven by a combination of favourable economic contexts and internal factors such as greater experience, management skills, and lower dependence on external financial resources. |
| Keywords: | Consumer Co-operatives, Rochdalian Model, Business Performance, Management Skills, Economic Context, Panel Data Model |
| JEL: | N14 N34 N84 P13 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ahe:dtaehe:2501 |
| By: | Eva O. Arceo-Gómez (Department of Economics, CIDE) |
| Abstract: | The status of women in Economics in Mexico is unmoved. Progress has stalled at all levels. Female representation among students has varied from around 38 to 42% on average between 2010 and 2022. I found tiny declines in female representation from undergraduate to doctoral level, so there is no strong evidence of a leaky pipeline. Among researchers, 34% of the Economics researchers in the National System of Researchers are women. Female representation falls sharply for researchers as we climb the system's ladder. At the top of the system are four male economists per woman. Women's representation in academic production has increased over time, but for women in Mexican institutions, it has stalled, even though they are now teaching relatively less than men. Overall, Mexican women in Economics are facing stagnation in their progress toward a more balanced representation in student bodies, faculties, and academic production.Length: 54 pages |
| Keywords: | Mexico, Economics, women, underrepresentation |
| JEL: | A11 J16 J44 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:emc:wpaper:dte649 |
| By: | Schulz, Jan; Weber, Jan David |
| Abstract: | Power laws are pervasive in economics and social sciences, particularly in the upper tails of distributions such as wealth, income, firm size, and city populations. Their scale-free property makes them a universal framework to understand phenomena spanning several orders of magnitude. This chapter explores their mathematical and often counterintuitive statistical properties, empirical evidence, and the stochastic processes that generate them. Emphasis is placed on their universal applicability, particularly to firm size, wealth, and income distributions and their potential to address the pressing issues of our time. |
| Keywords: | Distribution, Growth Processes, Extreme Values, Concentration, Inequality |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bamber:314423 |
| By: | Marc Jim M. Mariano; George Verikios; Yingying Lu |
| Abstract: | Continued climate change raises concerns on climate-related physical and transition risks. This study focuses on transition risk or the structural change related to decarbonisation. Specifically, we model the structural change associated with net zero emissions (NZE) for Australia along with global action to limit warming to 1.5°C by the end of the century. This scenario is implemented using a two-stage integrated approach that links two computable general equilibrium (CGE) models – one representing the world economy at a broad level and the other representing the Australian economy in greater detail. Results indicate that achieving NZE would contract the global and Australian economy. Global GDP is projected to fall by 5% and Australian GDP by 3.95%. Both globally and in Australia the capital and labour use falls. The NZE pathway is transformative for the energy sector but disruptive to other industries. Electricity generation increases by 1.45% per year as the Australian economy shifts from fossil-fuel-based energy to renewable energy. Economic activity of the non-energy sector contracts due to higher production costs related to the cost of abatement. Sensitivity analysis indicates that the GDP effects are rather sensitive to the speed with which NZE is reached. |
| Keywords: | computable general equilibrium, model Integration, net-zero transition, Australia |
| JEL: | C68 Q43 Q54 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-18 |
| By: | Sandström, Christian (Linnaeus University); Stenkula, Mikael (Research Institute of Industrial Economics (IFN)) |
| Abstract: | This paper critically evaluates the European Union’s shift towards large-scale green industrial policies. It highlights the risks of government-directed resource allocation, such as inefficiencies, misaligned incentives, rent-seeking, and lobbying. Politicians and bureaucrats at the EU level lack the ability to identify the future industries, products, and technologies for this policy to work effectively. The EU is not designed to operate large top-down interventions successfully. There is a substantial risk that large amounts of resources will be spent on initiatives that ultimately fail. Instead, this paper emphasizes competition- and technological-neutral frameworks, emissions trading systems, and general policy incentives. The paper concludes that a decentralized, market-driven approach is more sustainable for fostering innovation. |
| Keywords: | New industrial policy; Green investments; Innovation policy; Mission-oriented policies |
| JEL: | H50 L52 O38 P16 |
| Date: | 2025–02–25 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1523 |