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on Heterodox Microeconomics |
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Issue of 2025–04–21
twelve papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | András Borsos (Magyar Nemzeti Bank, Complexity Science Hub Vienna and University of Oxford); Adrian Carro (Banco de España and University of Oxford); Aldo Glielmo (Banda d’Italia); Marc Hinterschweiger (Bank of England); Jagoda Kaszowska-Mojsa (University of Oxford, Narodowy Bank Polski and Polish Academy of Sciences); Arzu Uluc (Bank of England) |
| Abstract: | Over the past decade, agent-based models (ABMs) have been increasingly employed as analytical tools within economic policy institutions. This paper documents this trend by surveying the ABM-relevant research and policy outputs of central banks and other related economic policy institutions. We classify these studies and reports into three main categories: (i) applied research connected to the mandates of central banks; (ii) technical and methodological research supporting the advancement of ABMs; and (iii) examples of the integration of ABMs into policy work. Our findings indicate that ABMs have emerged as effective complementary tools for central banks in carrying out their responsibilities, especially after the extension of their mandates following the global financial crisis of 2007-2009. While acknowledging that room for improvement remains, we argue that integrating ABMs into the analytical frameworks of central banks can support more effective policy responses to both existing and emerging economic challenges, including financial innovation and climate change. |
| Keywords: | agent-based models, central bank policies, monetary policy, financial stability, prudential policies, payment systems |
| JEL: | C63 E27 E37 E42 E58 G10 G21 G23 G51 Q54 R21 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:bde:opaper:2503e |
| By: | Kamath, Ram Mohan Sasikumar |
| Abstract: | Given the adverse efects of climate change (such as drought and fooding, damage to ecosystems and infrastructure, depletion of resources, deterioration of human health), society needs to transition to using sustainable systems of production and consumption. Regions and countries increasingly view the creation of green-clusters that can nurture green-innovation and spur new green-industries, as a solution to this challenge. In fact, the formation of green-clusters, and the greening of existing industrial clusters has been identifed as an important tool to achieving the GHG-reduction goals of the European Green Deal. However, Green-clusters need not be intrinsically sustainable. Especially when green-clusters are derived from existing clusters, they will inherit unsustainable processes. This means before these clusters can help regions and nations transition, they must themselves transition to greener products and production techniques. The green-restructuring of clusters has become a key area of interest to Evolutionary Economic Geography; and to the emerging feld of Geography of Transitions, which bridges Evolutionary Economic Geography and Sustainability-Transition Studies. However, owing to extant cluster-evolution frameworks' and cluster-evolution studies' inability to settle still ongoing discussions regarding the development of clusters, scholarship risks falling behind policymakers. This thesis contributes to the resolution of some of these discussions. Most importantly, we address the debate regarding the dynamics behind the process of clusters' green-restructuring. We then address debates regarding the role of place-based structures in shaping cluster-evolution, the role of agency in shaping cluster-evolution, the role of proximitydimensions in shaping the greening of clusters, and the multiscalar nature of cluster-evolution. |
| Keywords: | Climate Change, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Sustainability |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iamost:356433 |
| By: | Kapeller, Jakob; Steinerberger, Stefan |
| Abstract: | Power law distributions are ubiquitous in socioeconomic contexts. While their general properties are well understood, it is often less clear why they regularly appear in empirical data. What are the generative mechanisms leading to power laws, how do they arise in the real world? This paper aims to partly fill this gap by discussing two candidate mechanisms that appear especially relevant for understanding the emergence of power laws in socioeconomic contexts. We identify core formal properties and potential real-world equivalents of these mechanisms. In addition, we explore the relation of power laws to indirectly related concepts relevant in heterodox economics, like path dependence, cumulative effects, power asymmetries or non-ergodicity. |
| Keywords: | power law distributions, inequality, generative mechanisms, wealth inequality, firm size |
| JEL: | B52 D00 D30 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:315194 |
| By: | Marcello Nieddu (University of Genova); Marco Raberto (University of Genova); Andrea Teglio (Ca' Foscari University of Venice) |
| Abstract: | This study develops a family of models to evaluate how agent heterogeneity and interactions shape macroeconomic dynamics, challenging the adequacy of representative agent frameworks. Building on dynamic multi-sector models populated by boundedly rational firms and households, we conduct both analytical and computational comparisons between aggregated and disaggregated representations across equilibrium and disequilibrium regimes. We identify precise conditions –individual and relational indistinguishability– under which representative constructs successfully replicate multi-agent dynamics, and we demonstrate their failure in constrained regimes where rationing-induced network shocks generate irreversible structural changes. The analysis reveals that aggregation errors escalate with heterogeneity, asymmetric interactions, and shock-driven reconfigurations of economic networks, critically undermining policy inferences. The proposed family of multi-agent models, grounded in minimal realistic principles, allows us to systematically quantify the errors derived by treating the response to exogenous shocks as a dynamic sequence of equilibria, rather than explicitly accounting for out-of-equilibrium dynamics. These insights bridge Keynesian coordination failures with modern complexity economics, offering methodological rigor to address Blanchard's critique on the relevance of interactions for macroeconomic modeling. |
| Keywords: | macroeconomics, aggregation, interaction, multi-agent, multi-sector |
| JEL: | E00 E12 C63 C67 D85 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ven:wpaper:2025:04 |
| By: | , 段贤香 |
| Abstract: | The financial crisis is because money flows are blocked or interrupted, and gives two formulas. One formula is to calculate the speed of money flow, and another formula is the money demand and supply formula of the "nodes". The paper also presents methods for analyzing complex science, which economics is. The paper proposes several methods to analyze complex systems, such as "program" and "fractal". |
| Date: | 2023–03–03 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:4azjc_v1 |
| By: | Laura Onofri; Conrad Landis; Phoebe Koundouri |
| Abstract: | The study performs a qualitative meta-analysis of literature on economic valuation of spiritual values, to possibly assess and attach them a common meaning and content. We apply the qualitative meta-analysis procedure, developed by Atkins et al. (2008), and validated by econometric analysis, to (1) literature on spiritual ecosystem services (SES) valuations studies and to (2) literature on measurement of spiritual capital impacts on economies and markets, with a focus on religious markets. Markets and economies, in fact, are complex social structures, where the spiritual values originated in environmental and ecosystem contexts might change connotation and significance. Results show that when spiritual values are expressed as nature direct consumption or instinctual feedback from nature, they seem to have a use value at personal level and a negative impact at social level (economies and institutions). When spiritual values are expressed as responsibility and connection through nature they have a non-use value at personal level and a positive impact at social level (economies and institutions). In this perspective, qualitative meta-analysis results may offer a preliminary support for a better understanding, design and implementation of quantitative and monetary valuation methods for SES and other spiritual values. |
| Keywords: | spiritual values, ecosystems, spiritual ecosystem services, spiritual capital, spiritual capital impacts on economies and markets, qualitative meta-analysis |
| JEL: | Z12 Q01 Q57 O10 |
| Date: | 2025–04–15 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2530 |
| By: | Götze, Jacqueline; Klingebiel, Stephan; Khalid, Maryam |
| Abstract: | The significance of gender equality needs to be spotlighted since women and LGBTQIA* communities are prone to become victims of violence and have limited participation in political and decision-making processes. The approaches of feminist development policies and feminist foreign policies have been criticised for their potential inapplicability to diverse contexts and for perpetuating paternalistic or neo-colonial behaviours. The global rise of right-wing policies has influenced politics, prompting researchers on feminist policies to critically examine their limitations and the ways they have been institutionalised. The present study builds on the expertise, knowledge and experiences of partners from Ghana, India and Ukraine. It introduces local feminist perspectives as levers for transformative change for greater gender equality that can produce context-specific alternative approaches to development processes by addressing prevailing norms and practices, and thereby enhance access to resources and improve the political participation of women, girls and members of the LGBTQIA* communities. This synthesis study identifies common themes, challenges and opportunities across the three case studies prepared by the partner organisations through a combination of deductive and inductive processes. We have developed a matrix of 13 criteria, which can be categorised into five thematic clusters that include: intersectionality, special characteristics of local feminisms and gender (in)equalities, multi-directional flow of norms, challenges and opportunities for gender-transformative change, and future of gender-transformative policies. Key findings reveal persistent barriers faced by local feminist perspectives in influencing policy, decision-making and gender norms due to limited possibilities and restricted opportunities. |
| Keywords: | Gender, multilateral development policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:diedps:313629 |
| By: | Sandra Eickmeier |
| Abstract: | Economists recently have pointed to a critical disconnect between economic value and ethical values as a key societal issue. Using a survey of 2, 000 German households this paper reveals a misalignment between earnings and the values attributed to professions. Households prioritize professions addressing basic needs and benefiting society and nature over those offering personal utility, high remuneration, or economic growth, highlighting the importance of ethical considerations. This paper argues that values require a solid foundation rather than mere discussion or imposition. Linking values (and value) to awareness, it shows that more aware (along with more educated and informed) households favor professions supporting ethical values such as societal and environmental contributions, creativity, and beauty. Lastly, 60% of households support shifting societal values toward shared responsibility, though responses vary across households. |
| Keywords: | economic value, ethical values, earnings, prices, mindset, awareness, consciousness, surveys, direction of growth, quality of growth |
| JEL: | D9 E3 E7 I3 J3 Z1 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-14 |
| By: | Sengupta, Sreerupa; Singhal, Divya; Chakraborty, Ananya |
| Abstract: | This study explores the transformative potential of local feminist perspectives in addressing systemic gender inequalities in India, focusing on women's health and climate action. Anchored in global frameworks, such as the Beijing Declaration (1995) and the Sustainable Development Goals (SDGs), and rooted in India's historical milestones, such as the Towards Equality Report in 1974 (Government of India, 1974), this research examines how caste, class, gender, sexuality and disability intersect to perpetuate inequities. Despite progress in education, health, and political representation, deep-seated patriarchal norms and structural barriers continue to undermine women's agency, as reflected in India's low ranking on the Global Gender Gap Report 2024 (World Economic Forum, 2024). Using intersectional and eco-feminist frameworks, the study employs a qualitative, multi-method approach, including 31 key informant interviews and a stakeholder dialogue involving 40 participants from non-governmental organisations (NGOs), community organisations and feminist collectives. By integrating lived experiences with policy analysis, this study highlights how local feminist movements in India have challenged entrenched social norms, amplified marginalised voices and innovated to provide context-specific solutions. The findings reveal persistent health inequities among women, compounded by caste and disability, and critique health policies for their technocratic focus. Interventions by community organisations as well as governments, such as community health workers and self-help groups, have emerged as vital platforms for addressing reproductive and menstrual health needs while fostering social change. In climate action, women face disproportionate vulnerabilities due to caregiving roles and resource dependencies. However, localised initiatives, including women-led renewable energy programmes and sustainable agriculture practices, showcase their potential as agents of environmental resilience. The study advocates for recognising intersectional vulnerabilities, converging across sectors, improving participatory governance, strengthening capacity building of community organisations, and including divergent experiences of women in policy and intersectional funding models. By situating feminist knowledge within actionable frameworks, it presents a replicable model for integrating gender justice into health and climate strategies, offering lessons for global contexts. The report underscores the necessity of sustained collaboration among community actors, women's advocacy groups, policymakers and donors to foster systemic equity and resilience. |
| Keywords: | Gender, India, Feminism |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:diedps:313628 |
| By: | Hanif, Muhammad; Farooqi, M Nauman |
| Abstract: | Purpose — The study documents the performance of the Islamic banking services industry (IBSI) in light of the Islamic finance objectives, notably financial stability, equitable distribution of wealth, and social responsibility. Design/Methodology/Approach — After drawing the performance evaluation framework based on the objectives, the research conducts a balance sheet analysis of the IBSI in Pakistan for 32 quarters (2013Q4–2021Q3). The analysis examines sources and uses of funds by looking at the application of financial contracts and sectoral distribution of financing. Objectively classified data trends are reported through graphs. Findings — Findings suggest that the domestic IBSI has shown progress in achieving primary and intermediate objectives, including commercial performance, contribution to equitable wealth distribution, and financial stability. However, the industry’s in-practice business models lack any significant contribution to the social sector, which represents a more advanced objective. Originality/Value — The contributions to the literature include development of a performance evaluation framework based on Islamic finance objectives, and documentation of findings on the IBSI’s achievements in Pakistan. Research Implications — The study recommends that regulators develop a legal framework for business models of the IBSI. It also recommends that managers of domestic Islamic banks include the social sector as well as agricultural and rural areas in financing and investment portfolios. |
| Date: | 2023–04–03 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:e3pxd_v1 |
| By: | GUÉNIN--CARLUT, Avel; White, Ben; Sganzerla, Lorena |
| Abstract: | We draw from the recent enactivist literature to articulate an operational definition of Wittgensteinien forms of life as a self-productive collection of constraints over collective behavior. We propose that humans integrate and enact those account through the Active Inference of shared “regimes of attentions”, which are experienced as embedded normativity within direct engagement with a shared sociocultural niche. Given those elements, we discuss how sociocultural lifeforms “encode information” in the material niche, and discuss how this information may be recovered by cognitive archeologists. |
| Date: | 2023–03–17 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:qxszh_v1 |
| By: | Westrich, Zarah |
| Abstract: | Standard economic models view labour supply decisions as individual utility maximisation balancing the trade-off between income and leisure. In contrast, we focus on the social context as a central determinant and analyse how colleagues' working hours shape individual working hours preferences. Our analysis is based on a representative survey of employees in Germany that we conducted in October 2024 (N = 4, 450). Combining novel survey experiment with a quantitative text analysis of an open-ended survey question enables us to identify a causal mechanism and to provide contextual insights into the role of social context for the formation of working hours preferences. We show that colleagues' working hours causally affect working hours preferences. The reasons given by the respondents for choosing the stated working hours, by contrast, are primarily personal. This shows that preferences are socially determined, even if they are rationalised in individualistic terms. Our findings emphasise the importance of collective action for working time policy and highlight methodological challenges that need to be considered when analysing and interpreting working time preferences. |
| Keywords: | working hours, social comparisons, preference formation |
| JEL: | B55 D9 J22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:315193 |