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on Heterodox Microeconomics |
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Issue of 2026–03–23
twelve papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Boughabi, Houssam |
| Abstract: | This paper investigates the interplay between distributive conflict, wage dynamics, and persistent unemployment within a Kaleckian framework, emphasizing the long-memory properties of wages. We develop a stochastic model in which wages adjust adaptively to cumulative historical discrepancies between prices and wages, reflecting backward-looking expectations, institutional rigidities, and distributive conflict. Applying this framework to Germany over the period 1990-2024, we provide empirical evidence that persistent price- wage divergences generate long-lasting effects on real wages and aggregate demand. Within a Kaleckian perspective in which investment and employment are demand-driven, these wage dynamics contribute to the persistence of unemployment by weakening consumption and effective demand over time. Our findings highlight that long-memory wage adjustment amplifies the macroeconomic consequences of distributive conflict and inflation, underscoring the importance of historical wage inertia in shaping employment outcomes. The results offer new insights into the structural origins of persistent unemployment in advanced economies. |
| Keywords: | Kaleckian economics, wage-price dynamics, long-memory, distributive conflict, persistent unemployment |
| JEL: | E12 E24 E32 C22 J30 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cessdp:338094 |
| By: | Massimo Cervesato (Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | Property rights are central to studies of natural resource governance, as they shape both our understanding of resource use and our capacity to act upon it. A key issue lies in the coexistence of characteristics typically associated with the public sphere (non-excludability of the resource) and others associated with the private sphere (subtractability of the resource). Ostrom thus suggests that common property consists of “essentially share contracts.” This, however, raises a fundamental question: what distinguishes such a regime from a mere aggregation of individual property rights? To address this, we return to the foundations of Ostrom’s framework, which draw on the institutionalist theory of John R. Commons. While much of the literature has focused on the notion of ‘bundles of rights, ’ we argue that further insights can be gained from Commons’s conception of legal relations. Combined with Ostrom’s emphasis on language, common property can be understood as an emergent phenomenon arising from the complex relations that constitute the commons, rather than a formal aggregation of distinct private properties. This perspective ultimately highlights the central role of informality in such regimes, explaining their difficult incorporation into modern legal systems |
| Keywords: | Common Property Rights; Commons; Ostrom (Elinor); Complexity;Institutionalist Theory |
| JEL: | D02 P48 B52 Q20 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:mse:cesdoc:26005 |
| By: | Patrick Cohendet; Patrick Llerena |
| Abstract: | This chapter aims to address the paradoxical portrayal of entrepreneurs in the Schumpeterian tradition. While entrepreneurs are portrayed as key players in economic development in Schumpeter's early works, they essentially disappear in neo-Schumpeterian literature, where their role is replaced by 'routines' as the primary operational component of organizations. This chapter re-establishes the entrepreneur as a producer of ideas, as well as an initiator and orchestrator of creative destruction, by reintegrating what we consider to be the primary “function of entrepreneurship”: generating and proposing new ideas and introducing novelty into the economic system. From this perspective, we argue that ideas, viewed primarily as processes, are the essence of the Schumpeterian entrepreneur’s role at the core of the 'entrepreneurial function', which orchestrates the ideation process by attracting, mobilizing and aligning allies around their vision. This entrepreneurial function takes different forms — from the 'heroic' entrepreneur of early capitalism, to a more 'depersonalized, routinised and automated' entity within large organizations, and, more recently, to an orchestrator within an innovative ecosystem. |
| Keywords: | Schumpeter, Creativity, Ideas |
| JEL: | B15 L26 L21 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2026-05 |
| By: | Michael Finus (University of Graz, Austria; University of Bath, United Kingdom); Paolo Zeppini (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | We introduce the concept of green lifestyles in an economic discrete choice model of consumption behaviour. Agents behave in either a ‘selfish’ or ‘pro-social’ way by choosing different degrees of internalisation of environmental damage from the consumption of an environmentally harmful good. Pro-social behaviour means lower consumption, and is rewarded with warm-glow. Moreover, the agents’ decision is influenced by social norms, which endogenously depend on aggregate choices. The model is developed in a dynamic framework, allowing agents to switch behaviour. Our results show that conventional measures limiting consumption at an individual level may increase consumption at the aggregate level. We characterise social tipping points for sustainability transitions in terms of equilibria bifurcations and hysteresis of population dynamics. The model is extended in different directions, with different types of social influence and with a state dependent warm-glow. This more complicated decision environment gives alternative regimes with either dampening or self-reinforcing feedback in decisions. Three scenarios are identified: for strong social norms positive feedback leads to multiple equilibria. For moderate social norms there is a unique equilibrium. For weak social norms, we obtain periodic dynamics of behaviours. In particular, more informed choices and lower variability across agents are ‘destabilising’, leading to periodic dynamics or multiple equilibria. |
| Keywords: | discrete choice; social interactions; sustainable consumption; transitions; warm-glow |
| JEL: | C62 D62 Q56 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2026-08 |
| By: | Shum, Tim Siu Ming |
| Abstract: | Why do institutional replacements historically exhibit structurally similar patterns of rise and decline? This article proposes the concept of the "Initial Dividend" as the core driving mechanism of institutional cycles and constructs a four-stage cyclical model dividend release, distributive ossification, dividend exhaustion, and legitimation crisis leading to substitution-to universally explain institutional replacement across differing historical contexts. This article argues that whenever a new institution replaces an old one, the structural transformation releases a one-time surplus of resources or efficiency gains, defined here as the "Initial Dividend." The temporal nature of this dividend is the fundamental cause of institutional cycles: when the dividend is exhausted and the vested interest structures surrounding it obstruct adaptive reform, the institution enters a legitimation crisis, creating conditions for the next round of replacement. Through four sets of comparative historical cases- -Chinese dynastic cycles, the European transition from feudalism to constitutionalism, post-war decolonization state-building, and the neoliberal turn since the 1980s-this article empirically tests the theoretical framework and clearly defines its scope, boundary conditions, and falsifiable propositions. |
| Date: | 2026–03–10 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:avfwc_v1 |
| By: | Phoenix, Daniel M. (Virginia Tech) |
| Abstract: | Ecological modernization and ecomodernism assume that liberal democracies can address their ecological challenges. However, scholars seem to overlook that each rests on distinct theoretical assumptions and political programs. This paper compares the two approaches and analyzes their practical implications. Ecological modernization and ecomodernism embrace rationalist and reformist environmental politics to achieve absolute decoupling through Green New Deals. Ecological modernization calls for market-led precautionary innovation regulated by governments and supported by green consumerism. In contrast, ecomodernists advocate for state-driven proactionary and comprehensive innovation and are dismissive of demand-side policies. These differences point to three policy implications. First, the precautionary principle might need careful reconsideration to reconcile economic and environmental performance. Second, eco-innovation may require a stronger commitment from nation states to implement effective supply-side policies. Third, accelerated absolute decoupling requires promoting and setting rational consumption targets. Together, these implications involve dilemmas of technological and social innovation that liberal democracies should navigate to meet sustainability goals. |
| Date: | 2026–03–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nv5f7_v1 |
| By: | Dorian Marchais (CRIEG - Centre de Recherche Interdisciplinaire Economie Gestion - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne, REGARDS - Recherches en Economie Gestion Agroressources Durabilité et Santé - CRIEG - Centre de Recherche Interdisciplinaire Economie Gestion - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne) |
| Abstract: | While ethnography is valued as a method for revealing the cultural meanings of consumer practices, particularly in CCT, it is rarely questioned for the discomfort and even less for the "ontological strangeness" it can arouse in the researcher. This article takes a reflective look at the limits of ethnography, based on an immersion experience in a French ecovillage. As the ecovillage studied adopted a radical lifestyle grounded in animist values that placed respect for living beings (human and non-human) and the sharing of resources above conventional norms of hygiene and safety, the immersion proved to be dissonant with the researcher's practices and ontological conception of living together, resulting in a sensory, bodily and existential (ontological) unease. The article sheds light on the ontological incompatibilities an ethnographer may experience, paving the way for a broader reflection on the limits of ethnographic immersion and the value of promoting an "ethic of ontological adjustment". |
| Abstract: | Si l'ethnographie est valorisée comme une méthode révélatrice des significations culturelles des pratiques de consommation, en particulier en CCT, elle est rarement questionnée pour l'inconfort et encore moins « l'étrangeté ontologique » qu'elle peut susciter chez le chercheur. Cet article propose un regard réflexif sur les limites de l'ethnographie, à partir d'une expérience d'immersion dans un écovillage français. L'écovillage étudié adoptant un mode de vie radical fondé sur un système de valeurs animiques plaçant le respect du vivant (humain et non-humain) et le partage des ressources au-dessus des normes d'hygiène ou de sécurité, l'immersion s'est vite révélée dissonante avec les pratiques et la conception ontologique du vivre ensemble du chercheur, générant un malaise sensoriel, corporel et existentiel (ontologique). L'article met ainsi en lumière les incompatibilités ontologiques que peut éprouver un ethnographe, ouvrant la voie à une réflexion sur les limites de l'immersion ethnographique et l'intérêt de promouvoir une « éthique de l'ajustement ontologique ». |
| Keywords: | ontology, ecological community, ecovillage, ethnography, ethnographie, écovillage, communauté écologique, Ontologie |
| Date: | 2025–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05503648 |
| By: | Mercy, Phil (Freelance); Neil, Martin |
| Abstract: | The theory of microeconomics is revisited to gain insight into the underlying mechanics of sub-optimal systems in general. It challenges the prevailing view that efficient markets naturally arise from free competition and instead reformulates the market to reveal mechanisms whereby inefficient operation can naturally emerge. In particular, it shows how individual influence or power, and market scarcity inevitably lead to biased markets for emergent system operation that is anything but efficient. The paper concludes by incorporating these insights into a game-theoretic treatment of market interactions and proves this is simply a special case of the biased interaction game. |
| Date: | 2026–03–14 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:qge3k_v1 |
| By: | Reda Mouna (FSJEST - Faculté des sciences juridiques, Economiques et Sociales de Tanger); Oumaima Mouna (ENCGT - Ecole Nationale de Commerce et de Gestion - Tanger) |
| Abstract: | The objective of this paper is a comparison between the Corporate Governance models—conventional and Islamic—establishing their theoretical grounds and aiming to clarify points of convergence and divergence. After an initial alignment inherent to corporations, that is, value creation, the analysis demonstrates a significant divergence between the Shura and Shareholder model on the ownership nature, participation in the decision- making process, and the selection and responsibility of managers. A convergence between the conventional and Islamic stakeholder model is evident since the Islamic-oriented model adapts the conventional stakeholder model according to the precepts of the Shari'ah as guidelines, however, maintaining the principles and foundations of the model. Both conventional and Islamic stakeholder models have nuanced differences with the Shura model, aligning on inclusion as an objective but diverging on its modality. They share a double structure of governance, which in the Shura model is circular while for the stakeholder model it is mixed—horizontal and vertical. Simultaneously, the shareholder and stakeholder models differentiate on inclusion and the importance of extra- financial objectives. This work offers an analysis of four prevalent models, establishing their theoretical grounds for future empirical studies and application by practitioners. |
| Abstract: | L'objectif de cet article est de comparer les modèles de gouvernance d'entreprise—conventionnel et islamique— en établissant leurs fondements théoriques et en visant à clarifier les points de convergence et de divergence. Après un alignement initial inhérent aux entreprises, à savoir la création de valeur, l'analyse démontre une divergence significative entre les modèles Shura et Actionnaires (Shareholder) concernant la nature de la propriété, la participation au processus de prise de décision, ainsi que la sélection et la responsabilité des dirigeants. Une convergence entre le modèle Parties Prenantes (Stakeholder) conventionnel et islamique est évidente, car le modèle à orientation islamique adapte le modèle conventionnel des parties prenantes selon les préceptes de la Shari'ah comme lignes directrices, tout en maintenant les principes et les fondements du modèle. Les deux modèles des parties prenantes, conventionnel et islamique, présentent des différences nuancées avec le modèle Shura, s'alignant sur l'inclusion comme objectif, mais divergent sur sa modalité. Ils partagent une double structure de gouvernance, qui est circulaire dans le modèle Shura, tandis que pour le modèle des parties prenantes, elle est mixte—horizontale et verticale. Simultanément, les modèles Actionnaires et Parties Prenantes se différencient sur l'inclusion et l'importance des objectifs extra-financiers. Ce travail propose une analyse de quatre modèles prévalents, établissant leurs bases théoriques pour de futures études empiriques et pour l'application par les praticiens. |
| Keywords: | Maqasid-based Governance, Shura Governance Model, Stakeholder Model, Shareholder Model, Corporate Governance |
| Date: | 2026–01–27 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05479434 |
| By: | Alfani, Guido |
| Abstract: | In recent years economic inequality has become a major research topic in economic history. However, much remains to be done to complete our knowledge of long-term distributive dynamics. This article highlights several promising avenues for future research, focusing on the preindustrial period. In particular, it identifies the main gaps that still need to be filled in reconstructions of wealth and income distributions; it argues for a closer interaction between scholars working on economic inequality and those working on historical GDP; and it highlights socio-economic mobility as a closely related, but much less explored, research area. Shifting the focus from inequality to mobility, and more generally considering how human agency helped shape the aggregate long-term dynamics we observe, requires examining individual actors and their specific motivations more closely. This is especially true for the socio-economic elites who, when faced with a perceived threat of status loss, could attempt to capture political institutions, thus securing their control over valuable public resources — while at the same time acting as "enemies of mobility." The article also highlights how this kind of research speaks directly to current societal concerns. (Stone Center on Socio-Economic Inequality Working Paper) |
| Date: | 2026–03–02 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:ezm7d_v1 |
| By: | Corvalán, Daniel Meza; Lopez-Morales, Ernesto |
| Abstract: | Based on participant observation and interviews, this chapter focuses on the Movement of Struggling Settlers (MPL) in Santiago, Chile, one of the leading organizations of the national Pobladores Movement, since its formation in 2006. Since its formation, the MPL has conducted tasks previously run exclusively by private housing firms, like acquiring land, obtaining building permits, designing the housing complex, hiring and working with construction firms, and collectively running the whole building process. Under Chile’s strictly top-down technologized state housing policy, housing beneficiaries rarely perform these tasks, and the MPL has fulfilled them all. Through its practices, the MPL occupies and disrupts Chile’s housing market and emerges as a political force, advancing from protest to managing a set of construction technologies supported by militant professionals (as replacements for the external, private, and expensive sponsoring firms that have characterized Chile’s conventional housing policy), with assemblies run chiefly by women. MPL has mobilized enormous state-originated resources based on a disciplined community reserve, learning and organization capacities, and rational economic thinking. Although newer organizations have not replicated MPL’s practices so far, and nor has this model been institutionalized by the State, we conclude that MPL’s achievements are a reference point for Chile’s housing and political movements’ trajectory. |
| Date: | 2024–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:4hrxb_v1 |
| By: | Gleb Kozliakov; Emile A. Marin; Sanjay R. Singh (Department of Economics, University of California Davis) |
| Abstract: | Can idiosyncratic risk explain the equity premium? We revisit this question using a novel measure of imperfect risk sharing, implied by a large class of heterogeneous agent models, constructed using household-level panel data. We identify a group of households - with relatively high income but low net-worth - whose consumption is sufficiently volatile and risky to explain 94% of the observed U.S. Sharpe ratio for an elasticity of intertemporal substitution of 0.2. In contrast, the consumption dynamics of high net-worth individuals predict a negative Sharpe ratio so do not constitute the relevant pricing factor, consistent with models featuring wealth motives. |
| Keywords: | uninsurable idiosyncratic risk, heterogeneous agents, wealth dynamics, equity premium |
| JEL: | G12 B52 E21 |
| Date: | 2026–03–12 |
| URL: | https://d.repec.org/n?u=RePEc:cda:wpaper:377 |