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on Heterodox Microeconomics |
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Issue of 2025–09–15
ten papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Mateusz Wilinski; Juho Kanniainen |
| Abstract: | In this work we show how generative tools, which were successfully applied to limit order book data, can be utilized for the task of imitating trading agents. To this end, we propose a modified generative architecture based on the state-space model, and apply it to limit order book data with identified investors. The model is trained on synthetic data, generated from a heterogeneous agent-based model. Finally, we compare model's predicted distribution over different aspects of investors' actions, with the ground truths known from the agent-based model. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.00982 |
| By: | Francesco Ruggeri; Riccardo Pariboni; Giuliano Toshiro Yajima |
| Abstract: | Divergent trends in income and consumption inequality - with the first increasing substantially more than the latter - are an established stylized fact for the US economy of the last decades. The same time span experienced also a steady increase in household debt, plausibly not independently from the patterns in income distribution and consumption just mentioned. In this article we develop a stock-flow model that tries to replicate some of these dynamics. We emphasize the role played by changing behavioural attitudes towards consumption and demand for loans by households, by introducing an emulation mechanism that links a given quintile’s households desired consumption with the realized consumption of the immediately superior quintile. Furthermore, we leverage the data availability for consumption, income and wealth for quintiles of income distribution to estimate empirically those attitudes. The model, albeit simple and essential in its nature, is able to show the Janus-like faces of households’ debt and emphasizes the predator-prey-like dynamics implied by a debt-let process, in which fresh borrowing increases aggregate demand and output, which feeds the ability to borrow and consume more; at the same time, the stock of accumulated debt “preys†on income due to the contractionary forces of the repayment mechanism. Through a simple and stylized representation of the multiple interactions between income distribution, consumption and debt, we also formalize and highlight how the benefits of a process of debt-led growth are asymmetrically distributed and reinforce the same detrimental tendencies in income distribution that led to the emergence of debt as a necessary engine of growth. |
| Keywords: | Stock-Flow Consistent Model; Personal Income Inequality; Emulation; Debt Jel Classification: E12, E21, D31 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:929 |
| By: | Alloatti, Magali N.; Matos de Oliveira, Ana Luiza |
| Abstract: | Using the care diamond framework proposed by Shahra Razavi, we analyse paid and unpaid care (especially childcare) in Mexico on the basis of four provider categories: family or household, the State, the market and the non-profit sector. Our work combines two main types of data: descriptive statistics and published studies based on empirical research and in-depth policy analysis. We offer a comprehensive description of childcare distribution in Mexico, outlining the four provider categories and institutional and private arrangements that support social reproduction. We highlight the weak public provision of childcare, which worsens inequality among women and families of different socioeconomic strata and increases low-income women’s dependence on unpaid childcare in order to work or reliance on the market to expand childcare through private services outside and inside the household. Our work shows the suitability and potential of the care diamond for analysis of societies with weak welfare systems. |
| Date: | 2025–05–27 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col031:81586 |
| By: | Matej Steinbacher; Mitja Steinbacher; Matjaz Steinbacher |
| Abstract: | This paper explores the bifurcative dynamics of an artificial stock market exchange (ASME) with endogenous, myopic traders interacting through a limit order book (LOB). We showed that agent-based price dynamics possess intrinsic bistability, which is not a result of randomness but an emergent property of micro-level trading rules, where even identical initial conditions lead to qualitatively different long-run price equilibria: a deterministic zero-price state and a persistent positive-price equilibrium. The study also identifies a metastable region with elevated volatility between the basins of attraction and reveals distinct transient behaviors for trajectories converging to these equilibria. Furthermore, we observe that the system is neither entirely regular nor fully chaotic. By highlighting the emergence of divergent market outcomes from uniform beginnings, this work contributes a novel perspective on the inherent path dependence and complex dynamics of artificial stock markets. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2508.17837 |
| By: | Gries, Thomas (University of Paderborn); Naudé, Wim (RWTH Aachen University) |
| Abstract: | We present a model of economic growth that bridges Green Growth and Degrowth perspectives. The model demonstrates that a minimum physical per capita consumption level can be maintained without recourse to tech-optimism, and moreover with degrowth in material resource throughput - respecting planetary boundaries. We critically discuss the assumptions necessary for this result, explore relaxing these, and illustrate that eventually a full transition to renewable energy and materials will be needed to sustain consumption levels in a post-growth economy. We identify areas for future growth modelling, emphasising that these require genuine interdisciplinary cooperation. |
| Keywords: | post-growth, degrowth, economic growth, green growth, sustainability |
| JEL: | O44 Q32 Q56 Q55 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18110 |
| By: | A. Rebechi; M.G. Pittau; P. VanKerm; R. Zelli |
| Abstract: | This paper proposes a full distributional approach to measure the probability of belonging to specific economic classes, which are endogenously determined by the individual s position in the income distribution. Using Australian panel data, we identify pre-determined circumstances associated with class membership. Specifically, we use concomitant variable latent class models to quantify the overlap between distributions and to compare distributional differences and segmentation across social classes and link them to inequality of opportunity. Given the renewed interest in social class dynamics and the growing socioeconomic relevance and political salience of class membership, this study provides important insights into the composition of socioeconomic classes and their evolution over time. |
| Keywords: | inequality of opportunity;mixture models;Class Membership |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:cns:cnscwp:202509 |
| By: | Deinert, Olaf (Ed.) |
| Keywords: | Green Deal, Ecological-economic decoupling, Co-determination, Labour law, EU social policy, EU states |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:hsiwps:324880 |
| By: | Matej Steinbacher; Mitja Steinbacher; Matjaz Steinbacher |
| Abstract: | This study examines the impact of different computing implementations of clearing mechanisms on multi-asset price dynamics within an artificial stock market framework. We show that sequential processing of order books introduces a systematic and significant bias by affecting the allocation of traders' capital within a single time step. This occurs because applying budget constraints sequentially grants assets processed earlier preferential access to funds, distorting individual asset demand and consequently their price trajectories. The findings highlight that while the overall price level is primarily driven by macro factors like the money-to-stock ratio, the market's microstructural clearing mechanism plays a critical role in the allocation of value among individual assets. This underscores the necessity for careful consideration and validation of clearing mechanisms in artificial markets to accurately model complex financial behaviors. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.01683 |
| By: | Igor Halperin |
| Abstract: | This work builds upon the long-standing conjecture that linear diffusion models are inadequate for complex market dynamics. Specifically, it provides experimental validation for the author's prior arguments that realistic market dynamics are governed by higher-order (cubic and higher) non-linearities in the drift. As the diffusion drift is given by the negative gradient of a potential function, this means that a non-linear drift translates into a non-quadratic potential. These arguments were based both on general theoretical grounds as well as a structured approach to modeling the price dynamics which incorporates money flows and their impact on market prices. Here, we find direct confirmation of this view by analyzing high-frequency crypto currency data at different time scales ranging from minutes to months. We find that markets can be characterized by either a single-well or a double-well potential, depending on the time period and sampling frequency, where a double-well potential may signal market uncertainty or stress. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.02941 |
| By: | Corneliu C. Simut (Aurel Vlaicu University of Arad, Romania) |
| Abstract: | This article is an attempt to see how the concept of ecodomy can be used in intercultural education to demonstrate how the idea of ecodomy can be applied to various domains of interest to tertiary education, especially to public universities from the perspective of two intercultural contexts, such as Western settings and their African counterparts. Particularly, the concept of ecodomy will be treated as a pedagogical instrument in both these contexts since it is related to the activity of teaching theology and religion as humanistic sciences, although I argue that the concept itself, as well as its content, should not be restricted to humanistic sciences alone. The purpose of using the concept of ecodomy as a pedagogical instrument in intercultural education is to see if it can fit within the field of intercultural education, and specifically in intercultural pedagogy. |
| Keywords: | Ecodomy, Intercultural Pedagogy, Language, Critical Thinking, Context |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0517 |