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on Heterodox Microeconomics |
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Issue of 2025–11–10
35 papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Mark Setterfield |
| Abstract: | The purpose of this paper is to contribute to the integration of unpaid caregiving in the household into short- and long-term macroeconomic theory and, in particular, the theoretical structure of production on the supply side of the economy. The ambition of the project is to furnish a general theoretical representation of how unpaid caregiving and its (gendered) social structure contribute to the technical conditions of production in the sphere of marketed output. In so doing, it aims to provide macro theorists with an apparatus that allows consistent description of both short-term (levels of activity) and long-term (rates of growth) macro outcomes in a manner that routinely integrates feminist insights regarding the gendered structure of the social reproduction of labor into macroeconomic analysis. |
| Keywords: | Social reproduction of labor; unpaid caregiving; macroeconomic theory; potential output; natural rate of growth; technical change |
| JEL: | E11 E12 B54 E23 J13 J16 J24 O33 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1083 |
| By: | Leonardo Burlamaqui |
| Abstract: | This paper reconstructs Joseph Schumpeter's major works to propose a coherent new departure point for analyzing economic and social change. I argue that Capitalism, Socialism and Democracy (1942) (CSD) marks a radical departure from Schumpeter's earlier attempts in The Theory of Economic Development (1912 [1934]) (TED) and Business Cycles (1939) (BC) to merge equilibrium theory with evolutionary dynamics. In CSD, equilibrium disappears, cycles recede, and capitalism is recast as a process of creative destruction--turbulent, conflictual, and institutionally embedded. Yet the building blocks of this paradigm--innovation, the entrepreneurial function, credit creation, capital as a social relation, and the seeds of financial fragility--were already present in TED and BC, though obscured by equilibrium reasoning. The originality of this reconstruction lies in recovering Schumpeter's neglected concept of the "secondary wave, " buried in BC, which anchors financial fragility within the creative destruction paradigm and provides the bridge to Keynes's liquidity preference and Minsky's financial instability hypothesis. Reconstructed in this way, Schumpeter's trilogy yields a framework in which credit, innovation, technological disruptions, and financial fragility are inseparable. The synthesis illuminates both the resilience and the instabilities of contemporary capitalism and, when extended, helps to explain the logic of "hybrid institutional architectures"--above all the "China model, " today's most ambitious and misunderstood experiment in innovation-led, state-directed development in contemporary political economy. |
| Keywords: | Schumpeter; Keynes; Minsky; creative destruction; innovation; conflict; secondary wave; liquidity preference; financial fragility; economic and social change |
| JEL: | B15 B25 B52 E32 E44 O30 O43 P16 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1098 |
| By: | Gunseli Berik; Ebru Kongar |
| Abstract: | Macroeconomics is arguably the most male-dominated field within the discipline of economics. Since the mid-1990s, feminist economists have thoroughly and meticulously challenged this field through empirical and theoretical analyses and proposed alternative starting points, frameworks, and models. We evaluate the contributions of five scholars--Nilufer Cagatay, Diane Elson, Caren Grown, Stephanie Seguino, and Elissa Braunstein--who have been influential in the development of feminist macroeconomics as a heterodox project since 1995. Through citation analysis, we examine who is recognizing the macroeconomics-related contributions of these five scholars. We document that the journal articles published by these five are cited primarily by women, in mainstream journals, in disciplines other than economics, and in interdisciplinary journals both in and outside of economics. Our analysis reveals that the impact of the five scholars in heterodox macroeconomics journals is miniscule, and the citations of their works are primarily made by other feminist economists, most of whom are women. |
| Keywords: | Citations; Feminist Economics; Feminist Macroeconomics; Gender |
| JEL: | B54 E11 E12 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1081 |
| By: | Ron Boschma; Koen Frenken |
| Abstract: | With its focus on innovation, institutions have remain under-theorized in evolutionary economics. This paper aims to contribute to Nelson’s institutional agenda within evolutionary economics in two ways. First, we discuss the core concepts of organizational routines and natural trajectories from an institutional perspective. Second, we pick up on Nelson's co-evolutionary model linking technology, markets and institutions in economic development, and introduce the notion of ‘institutional relatedness’ to understand how institutions both constrain and enable economic development and structural change as well as how institutions channel the direction of institutional change itself. |
| Keywords: | Nelson; evolutionary economics; evolutionary economic geography; institutional relatedness; institutional change; regional diversification |
| JEL: | B15 B52 O18 O33 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2532 |
| 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 in the last decades. The same time period also experienced a steady increase in household debt, plausibly not independent from the patterns in income distribution and consumption as 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 behavioral attitudes toward consumption and demand for household loans by introducing an emulation mechanism that links the desired consumption for households of a given quintile with the realized consumption of the immediately superior quintile. Furthermore, we leverage the available data on income distribution quintile consumption, income, and wealth to estimate those attitudes empirically. The model, albeit simple and essential in nature, shows the Janus-like faces of household debt and emphasizes the predator-prey-like dynamics implied by a debt-led 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: | E12 E21 D31 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1099 |
| By: | Alberto Russo (Department of Economics and Social Sciences, Universita' Politecnica delle Marche) |
| Abstract: | Drawing on Peter Turchin's structural-demographic theory, this paper provides a preliminary examination of how rising inequality and financial liberalization contribute to political instability through the interplay of mass immiseration and elite overproduction. We capture these dynamics through a simplified agent-based macroeconomic model, introducing two structural shocks { growing inequality and financial liberalization { that reect the transformations reshaping advanced economies in recent decades, a process intertwined with political disintegration. A wealth tax on the richest households can reduce political fragmentation and improve economic performance, but lasting resilience will require embedding such measures within a broader rethinking of the policy paradigm that has prevailed since the 1980s. |
| Keywords: | Inequality, Financial Liberalization, Political Instability, Agent-Based Model. |
| JEL: | C63 D31 E02 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:anc:wpaper:500 |
| By: | Pavlina R. Tcherneva |
| Abstract: | This paper employs the concept of "enshittification"--the systematic degradation of a service or product in the pursuit of profit--as a powerful metaphor to analyze the decay of the US labor market in the postwar era. Situating this process within Hyman Minsky's theory of capitalist development, it argues that the current phase of money manager capitalism has accelerated a pervasive "bait-and-switch" dynamic that has emerged since the 1970s. The "bait" was the postwar social contract, which promised but never guaranteed economic security through tight full employment and access to good jobs for all. The "switch" was the neoliberal policy shift that dismantled labor protections, weaponized unemployment (via the NAIRU doctrine), and fostered financialization, leading to stagnant wages, precarity, and household indebtedness. The "trap" is the worker's inescapable dependency for survival on a job within a system that uses the threat of unemployment as a policy tool. The paper identifies the erosion of four key forces--competition, regulation, interoperability, and worker power, all of which held the tenuous postwar contract together--as the drivers of this enshittification. It concludes by articulating how the federal job guarantee proposal can act as a systemic circuit breaker capable of reverse reengineering the labor market. The job guarantee is not only an alternative to precarious employment and the NAIRU policy framework, but also a comprehensive de facto regulator that introduces much needed competition for labor by firms in the economy. The paper evaluates how the program can introduce countervailing forces to arrest the degradation of the labor market and establish a new standard for good jobs, thereby laying the foundation for a renewed social contract. |
| Keywords: | Enshittification; Job Guarantee; Social Contract; Money Manager Capitalism; Labor Market Precarity; Financialization |
| JEL: | J01 J08 J38 J64 B52 E24 B26 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1100 |
| By: | Ollie Olby; Rory Baggott; Namid Stillman |
| Abstract: | The recent application of deep learning models to financial trading has heightened the need for high fidelity financial time series data. This synthetic data can be used to supplement historical data to train large trading models. The state-of-the-art models for the generative application often rely on huge amounts of historical data and large, complicated models. These models range from autoregressive and diffusion-based models through to architecturally simpler models such as the temporal-attention bilinear layer. Agent-based approaches to modelling limit order book dynamics can also recreate trading activity through mechanistic models of trader behaviours. In this work, we demonstrate how a popular agent-based framework for simulating intraday trading activity, the Chiarella model, can be combined with one of the most performant deep learning models for forecasting multi-variate time series, the TABL model. This forecasting model is coupled to a simulation of a matching engine with a novel method for simulating deleted order flow. Our simulator gives us the ability to test the generative abilities of the forecasting model using stylised facts. Our results show that this methodology generates realistic price dynamics however, when analysing deeper, parts of the markets microstructure are not accurately recreated, highlighting the necessity for including more sophisticated agent behaviors into the modeling framework to help account for tail events. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.22685 |
| By: | Teng, Xingan |
| Abstract: | This paper examines how left-wing political strength shapes the evolution of capitalist systems through the lens of income compositional inequality (IFC). Using LIS microdata for nearly 40 countries from 1978–2022, I construct an unbalanced panel of IFC and estimate two-way fixed-effects models with Driscoll–Kraay standard errors, complemented by dynamic panel GMM and a fuzzy RDD around close elections. Results show that stronger left representation reduces IFC and pushes economies toward liberal capitalism; a 10-percentage-point increase in left strength lowers IFC by about 0.0079—roughly 7.5% of the sample mean. Political checks and balances attenuate this distributive effect, while rule-of-law and property-rights institutions amplify it. Channel analysis based on the pseudo-Gini of capital indicates that the main pathway operates via reductions in capital inequality. The findings highlight that “inclusive institutions” are internally heterogeneous and interact with partisan power, offering a more granular account of distributive dynamics within democracies. |
| Keywords: | Income composition inequality; Left-wing strength; Inclusive institutions; Capitalist systems |
| JEL: | D31 D33 D72 P16 P51 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126506 |
| By: | Claire Barraud (UGA UFR FEG) |
| Abstract: | This article proposes a complementary theoretical framework in behavioural finance by interpreting financial markets during boom-and-bust episodes as a Le Bonian crowd. While behavioural finance has documented the limits of individual rationality through biases and heuristics, these contributions remain primarily microeconomic. A second, more macroeconomic strand appears to treat market instability as the aggregated result of individual biases, although it generally does so without an explicit theoretical account of how such aggregation operates. In contrast, this paper adopts a macro-psychological -and therefore macroeconomic -perspective, drawing on classical crowd psychology (Le Bon, 1895; Tarde, 1901; Freud, 1921). The central claim is that during speculative booms and crashes, markets behave as psychological crowds governed by unconscious processes, suggestion, emotional contagion, and impulsive action. These episodes cannot be understood merely as the sum of individual departures from rationality, but as the emergence of a collective mental state that follows its own psychological laws. By reintroducing crowd psychology into behavioural finance, this paper clarifies the mechanisms through which market-wide irrationality arises and offers a theoretical foundation for a macrobehavioural understanding of financial instability. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.23175 |
| By: | Jan Frankowski; Joanna Mazurkiewicz; Aleksandra Prusak; Jakub Soko³owski; Sona Stara; Wojciech Be³ch; Michal Nesládek; Tomáš Vácha |
| Abstract: | The report provides an overview of the housing stock and residents’ opinions on energy issues in Polish and Czech housing cooperatives and homeowners’ associations. The findings are based on a survey conducted among residents of these types of housing organizations in both countries. The report indicates that although the overall technical condition of buildings is good and some modernization projects have already been implemented, the pace of the energy transition is limited by financial, social, and organizational factors. |
| Keywords: | housing cooperatives, energy transition, Poland, Czechia |
| JEL: | J21 L71 Q43 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:ibt:report:rr022025 |
| By: | Céline del Bucchia (Audencia Business School); Arnaud Stimec (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université); Anastasia Dereppe (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université); Benoit Marienval (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université) |
| Abstract: | Purpose Recent voices have called for the need to reconsider the myth of male power based on a one-dimensional view of a dominant patriarchy in entrepreneurship. In a search for alternatives to hegemonic masculinities, this paper explores a specific context - that of radical ecological and social transition - to identify how entrepreneuring in this specific social environment questions and shapes entrepreneurial masculinities. Design/methodology/approach We engage with constructivist grounded theory to analyse 17 life story interviews of French entrepreneurs, complemented by 6 focused follow-up interviews and 2 focus groups of women to give a broader and cultural understanding of entrepreneurial masculinities. Findings The paper makes four important contributions to the literature on gender and entrepreneurship. First, it enriches the spectrum of entrepreneurial masculinities with a non-hegemonic type of masculinity, namely, caring Entrepreneurial masculinity (EM). Second, it proposes an alternative model of hybrid hegemonic masculinity by showing that the "hero" posture in entrepreneurship is not necessarily that of a winner but can also serve a mission for the common good. Third, it introduces the concept of ecological EM by bridging two distinct areas of the literature related to our data. Finally, it underscores the strong influence of women in entrepreneurs' social environment by their role in engaging change in entrepreneurial masculinities. We show how a specific social environment can partially challenge hegemonic entrepreneurial masculinities. The paper introduces ecological masculinities as an alternative framework. |
| Abstract: | Objectif Des voix récentes ont appelé à reconsidérer le mythe du pouvoir masculin fondé sur une vision unidimensionnelle d'un patriarcat dominant dans l'entrepreneuriat. À la recherche d'alternatives aux masculinités hégémoniques, cet article explore un contexte spécifique, celui de la transition écologique et sociale radicale, afin d'identifier comment l'entrepreneuriat dans cet environnement social particulier remet en question et façonne les masculinités entrepreneuriales. Conception/méthodologie/approche Nous utilisons la théorie constructiviste fondée sur des données empiriques pour analyser 17 entretiens sur le parcours de vie d'entrepreneurs français, complétés par 6 entretiens de suivi ciblés et 2 groupes de discussion composés de femmes afin d'offrir une compréhension plus large et culturelle des masculinités entrepreneuriales. Résultats L'article apporte quatre contributions importantes à la littérature sur le genre et l'entrepreneuriat. Premièrement, il enrichit le spectre des masculinités entrepreneuriales d'un type de masculinité non hégémonique, à savoir la masculinité entrepreneuriale bienveillante (EM). Deuxièmement, il propose un modèle alternatif de masculinité hégémonique hybride en montrant que la posture de « héros » dans l'entrepreneuriat n'est pas nécessairement celle d'un gagnant, mais peut également servir une mission pour le bien commun. Troisièmement, il introduit le concept d'EM écologique en reliant deux domaines distincts de la littérature liés à nos données. Enfin, il souligne la forte influence des femmes dans l'environnement social des entrepreneurs par leur rôle dans le changement des masculinités entrepreneuriales. Nous montrons comment un environnement social spécifique peut remettre en question, en partie, les masculinités entrepreneuriales hégémoniques. L'article présente les masculinités écologiques comme un cadre alternatif. |
| Keywords: | Sustainable entrepreneurship, Socio-ecological transition, Entrepreneurial masculinities, Cultural change and leadership, Hegemonic masculinities, Constructivist grounded theory, Caring masculinities, Ecological masculinities, Masculinités hégémoniques, Entrepreneuriat durable, Transition socio-écologique, Masculinités entrepreneuriales, Changement culturel et leadership, Théorie ancrée constructiviste, Masculinités du care, Masculinités écologiques |
| Date: | 2025–08–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05336916 |
| By: | A. Haroon Akram-Lodhi |
| Abstract: | This paper investigates the relationship between the work of reproductive labor and the efficiency of gender-segmented farm production in Malawi. It starts by presenting quantitative estimates of the gender gap in agricultural productivity among small-scale petty commodity producers in Malawi, along with estimates of the proximate drivers of this gap, which demonstrate that men are more productive than women on the plots of land they operate even when accounting for differences in land quantity and quality. The paper then presents the results of qualitative research into the causes of the gender gap in agricultural productivity in Malawi. It is demonstrated that the principal cause of the gender gap in agricultural productivity in Malawi is women's responsibility to provide the reproductive labor of social reproduction. This, along with women's responsibility to provide unpaid farm labor on land that is operated by their husbands, generates significant time poverty for women farmers in Malawi. It also results in wives sustaining the accumulation practices of their husbands. These gender-segmented tasks are then reinforced in some households by gender-based violence, which has strong economic consequences. It is argued that the patriarchal structures that result in a lack of income pooling and wealth serve to materially undermine women's intrahousehold bargaining positions, a trend which is then reinforced by the lack of social legitimacy of the work that is typically assigned to women. The result is that it cannot be assumed that women and men share the same class location within rural petty commodity production in Malawi. Cumulatively, gender gaps in agricultural productivity among small-scale petty commodity producers in Malawi are a function of strongly gender-biased social norms and values that assign the reproductive labor of social reproduction to women. |
| Keywords: | Time poverty; Gender Gaps; Gendered Division of Labor |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1093 |
| By: | James Heintz (Department of Economics, University of Massachusetts, Amherst); William Milberg (Department of Economics, New School for Social Research) |
| Abstract: | The question of how value is distributed within global value chains (GVCs) is one of the central questions in contemporary research on trade and development and an analysis of power is central to understanding this issue. This paper extends existing research on distribution within global value chains by focusing on the issue of power in both product markets and supplier markets. We present a formal model in which lead firms capture a larger share of value-added, either through higher mark-ups – monopoly power – or lower unit costs goods purchased from suppliers – monopsony power. Maintaining or expanding this market power involves costly investments in intangible assets, with the nature of that investment depending on the characteristics of the GVC. This framework provides new insights into the distributive dynamics of value chains, including reputation effects tied to corporate social responsibility. In this way, the paper presents an innovative way of theorizing international trade, inspired by the unequal exchange tradition, that can be extended in future research. |
| Keywords: | Global value chains, market power, distribution, intangible assets, corporate social responsibility |
| JEL: | F12 L13 L14 J80 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:new:wpaper:2516 |
| By: | Leonel Arango-Vasquez (EAFIT - EAFIT University) |
| Abstract: | This article examines the epistemology of finance by analyzing how different theoretical perspectives shape knowledge and decision-making in markets. A comparative analysis is adopted to contrast the underlying premises of each perspective and their applicability in contexts of uncertainty, volatility, and structural changes in markets. The findings demonstrate that, while each theoretical framework provides valuable analytical tools, their combination offers a more robust understanding of financial behavior. The integration of these approaches, along with interdisciplinary methodologies, is essential for a more holistic and adaptable view of financial epistemology, allowing for a more accurate evaluation of the interaction between rationality, uncertainty, and behavior in contemporary global markets. |
| Keywords: | portfolio diversification, market efficiency, behavioral finance, financial theory, interdisciplinary integration, financial epistemology |
| Date: | 2025–10–22 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05003891 |
| By: | Danielle Guizzo |
| Abstract: | Heterodox economics, often characterised as a progressive and critical intellectual community, has gained prominence in recent years, particularly in response to economic crises and political shifts. While its intellectual history is well-documented, particularly in the Global North, its role in supporting an alternative economics education through time remains underexplored. Furthermore, the ways in which higher education structures have supported or constrained critical thinking in economics have been largely absent from historical analyses. This article addresses these gaps by exploring the historical development of heterodox economics education in the UK between the 1960s and 1990s, looking at the case of polytechnics as higher education institutions. It adopts a multi-method approach, analysing archival institutional records (course prospectuses, syllabi, regulatory policy documents) alongside interviews with economics educators using inductive thematic analysis, followed by triangulation. The findings reveal that polytechnics, designed to mainly deliver vocational education, played a central role in developing heterodox content, further supported by relative regulatory tolerance. However, structural reforms in the 1980s – driven by funding constraints, the rise of performance metrics, and increasing alignment with university norms – narrowed the space for pluralist approaches and accelerated the marginalisation of heterodox economics in UK higher education. |
| Date: | 2025–04–02 |
| URL: | https://d.repec.org/n?u=RePEc:bri:uobdis:25/800 |
| By: | Thissen, Hannah Katharina; Schulz, Frederik Nikolai; Hanf, Jon H. |
| Keywords: | Crop Production/Industries |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:gewi24:364732 |
| By: | Deshpande, Ashwini; Kabeer, Naila |
| Abstract: | Based on primary data from a large household survey in seven districts in West Bengal in India, this paper analyses the reasons underlying low labor force participation of women. In developing countries, women who are engaged in unpaid economic work in family enterprises are often not counted as workers, whereas the men are. We show that for women, not being in paid work is not synonymous with not being in the labour force. Women are often involved in expenditure saving activities i.e. productive work within the family, over and above domestic chores and care work. We document the fuzziness of the boundary between domestic work and unpaid (and therefore invisible) productive work that leads to mismeasurement of women's work and suggest methods to improve measurement. Counting women's expenditure-saving activities yields a substantially higher estimate of women's participation in economic work. On social norms, we show that religion and visible markers such as veiling are not significant determinants of the probability of being in paid work. We find that being primarily responsible for domestic chores lowers the probability of “working”, after accounting for all the conventional factors. Our data shows substantial unmet demand for paid work. Given that women are primarily responsible for domestic chores, we find that women express a demand for work that would be compatible with household chores. We demonstrate the existence of ‘virtuous cycles’ within families: a history of working women in the family (mother or mother-in-law ever worked) increases the probability of being in paid work between 18 and 21 percentage points. This suggests that the positive effects of increasing women's labour force participation today are likely to have positive multiplier effects on the prospects for work in future generations of women. |
| Keywords: | gender; India; labor force participation; women |
| JEL: | J16 J21 J40 B54 |
| Date: | 2024–02–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:120694 |
| By: | Bayari, Celal |
| Abstract: | The Belt and Road Initiative (the BRI) is the current developmental stage of the Chinese capitalist model, and its progress through different nations depend on the governance that China established across its own vast geography over a long period of time. The levels of the BRI international activity resemble a rapid flood rather than a slow flow, due to the availability of the Chinese state finances and private capital funds, since the start of the Deng modernisations, and China’s entry into the WTO. The growth of the Chinese capitalism presented an interesting contrast to the national economic models North America, Europe, and Asia. There has been much interest on the interplay between the nature of the Chinese capitalism, the existing institutions, and the institutions that emerged subsequently. Overall, there exists a specific understanding of the growth in China in terms of the stronger and weaker institutions, that the paper discusses. China’s own development, the BRI activities, and the uneven success of the Sustainable Development Goals across the BRI membership also form an interesting debate. Further, China’s WTO entry, the WTO framework, and the subsequent BRI agreements also significant contrasts that the paper highlights. |
| Keywords: | China, Belt and Road Initiative, Institutional Economics, Soft Law, SDGs, Pollution Halo, Pollution Haven |
| JEL: | A11 A12 A14 B3 B31 E2 E22 E62 E65 F1 F13 F14 F15 F18 F21 F23 F42 F43 F55 F62 F63 F64 G2 G28 I1 I31 K2 K23 K32 K33 L1 L12 L16 L22 L41 L51 L91 L98 M16 M21 N1 N10 N15 N17 N20 N25 N27 N30 N35 N37 N70 N75 N77 N90 N95 N97 O11 O14 O18 O19 O38 O43 O53 O55 O56 P1 P12 P14 P26 P33 P45 P48 P51 P52 Q01 Q02 Q2 Q27 Q32 Q37 Q43 Q52 Q53 Q54 Q56 Q58 R38 R41 R53 R58 Z1 Z13 |
| Date: | 2025–08–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125677 |
| By: | Wang, Di; Wang, Xilin |
| Abstract: | This paper explores the dynamic effects of labor unions on economic growth and income inequality in a Schumpeterian growth model with heterogeneous households and endogenous market structure. Income inequality arises from an unequal distribution of wealth and heterogeneous labor productivity. In the short run, increasing union bargaining power reduces both growth and inequality when the union is wage-oriented. In the long run, stronger unions continue to lower inequality without affecting the steady-state growth rate. The model identifies the channels through which unions shape inequality: an income-share shift from asset income to labor income, wage compression, and changes in the wealth-wage correlation. Calibrating the model to U.S. data, we find that increasing union bargaining power significantly reduces long-run income inequality. |
| Keywords: | Labor unions; Economic growth; Income inequality; Endogenous market structure |
| JEL: | D30 J50 O30 O40 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125948 |
| By: | Woo-Gómez, Guillermo; Woo-Mora, Guillermo |
| Abstract: | Do cooperative firms foster local economic development? This paper examines Mexico, assembling a new georeferenced panel dataset at the 10 × 10 km grid-cell level for 2015–2023. Across multiple research designs, we consistently find that cooperative presence boosts local development, measured by nightlight intensity. An event-study design shows persistent extensivemargin gains of 6–8% within four years of entry. To address selection concerns, we implement a shift–share IV strategy based on endogenous lagged-cooperative presence and plausibly exogenous sectoral growth shocks; the results imply that one additional cooperative increases nightlight density by about 2.7%. Complementary census evidence links cooperatives to higher schooling, home asset ownership, and decrease migration pressures. We also document stronger effects in Indigenous communities, where cooperatives have longer survival spells. Aggregate patterns suggest that cooperatives increase agricultural specialization but with clear productivity gains, while redistributive effects raise local disposable income and decrease poverty. These findings provide novel causal evidence that cooperatives can function as engines of inclusive local development. |
| Keywords: | Desarrollo local, Políticas públicas, Investigación socioeconómica, |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:dbl:dblwop:2535 |
| By: | Jose Barrales-Ruiz (Faculty of Economics and Government, Universidad San Sebastian); Gyeongho Kim (Department of Economics, University of Utah); Ivan Mendieta-Munoz (Department of Economics, University of Utah) |
| Abstract: | This paper provides an empirical analysis of the dynamic determinants of US labor productivity growth by considering that the latter is an endogenous outcome, mainly influenced by changes in the size of the economy and relative labor costs. Specifically, we consider that changes in GDP, real wages, wages relative to the price of capital, and investment effect simultaneously the evolution of labor productivity growth. We focus on studying whether the response of the latter to these effects has been stable or time-varying by adopting a flexible hybrid time-varying parameter Bayesian vector autoregression with stochastic volatility empirical framework. This allows us identify whether none, some, or all lagged and contemporaneous coefficients in the equations in the model are constant or time-varying via model selection. We find: (i) evidence supporting the view of time-varying endogenous labor productivity growth dynamics; (ii) that the response of labor productivity growth to GDP growth has tended to increase over time; and (iii) that the response of labor productivity growth to real wage growth has tended to decrease over time. Our findings have important policy recommendations that can help to improve the future performance of labor productivity growth in the USA. |
| Keywords: | Labor productivity growth, induced technical change effect, Kaldor-Verdoorn effect, model selection, time-varying parameter vector autoregressions |
| JEL: | B50 C11 C32 C52 E12 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:new:wpaper:2515 |
| By: | Perju, Genoveva-Elena |
| Abstract: | This study examines the long-term economic consequences of institutional discrimination through an analysis of the formal exclusion of the Romanian majority from Transylvania's feudal institutions between 1366-1437. Using path dependence theory as a theoretical framework, we investigate whether this historical exclusion created persistent trajectories of institutional underdevelopment and economic inequality that continue to influence the region's socioeconomic structure today. Our empirical analysis employs county-level data across Romania, comparing Transylvanian counties to other historical regions using regression models that control for contemporary socioeconomic factors. The results indicate that counties in historical Transylvania exhibit significantly lower GDP per capita (€2, 150 less on average) and higher income inequality (3.5 percentage points higher Gini coefficient) compared to other Romanian regions. These findings provide robust empirical evidence supporting the hypothesis that medieval institutional exclusion created path-dependent trajectories that continue to shape economic outcomes seven centuries later. The study contributes to the broader literature on institutional economics, historical determinants of development, and the persistence of inequality, while offering insights into how privilege structures can become embedded in regional economic systems across centuries. |
| Keywords: | · Path dependence · Institutional discrimination · Economic development · Historical persistence · Regional inequality · Transylvania · Feudal institutions · Extractive institutions |
| JEL: | N93 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125924 |
| By: | Poulin, Michelle; Pierotti, Rachael Susan |
| Abstract: | Expanding women’s property rights has become a central objective of development policy aimed at reducing gender inequality in Africa. With this goal in mind, a randomized controlled trial in western Uganda offered subsidized land titles to agricultural households along with incentives to title land in the names of both husbands and wives. A majority of men agreed to co-title with their wives. This study examines the social dynamics that underlie that result: What does a new co-title mean for couples in practice? Do women benefit in the ways intended? And what are the implications for marriage dynamics? To answer these questions, the study drew on an array of data derived from (i) fieldwork observations, (ii) conversational interviews with 34 couples selected from the intervention’s survey sample, and (iii) conversational interviews with local community leaders. As agricultural land in this setting is highly valued, the study found that land titles are deeply meaningful for women and men. The findings further suggest that women’s bargaining power increases in ways predicted by household bargaining models. Yet, interview data suggest another avenue through which joint titling influences marital dynamics: the act of including a wife on a new title symbolizes a man’s commitment to his spouse and marriage. This is crucial since women’s property rights are threatened under marital insecurity. Joint titling influences marriage dynamics through greater bargaining power, but it may also work through an opposite mechanism—since it strengthens the marital bond, the joint title encourages “cooperative power, ” and inspires investment in the marriage. |
| Date: | 2025–10–27 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11241 |
| By: | Quivine Ndomo; Elif Naz Kayran; Ilona Bontenbal; Simona Brunnerová; Sarah Tornberg; Mirjam Pot; Selma Kadi; Martin Kahanec |
| Abstract: | This article investigates how migrant labour regimes shape long-term care (LTC) work in Austria, Finland, and Slovakia, amid rising demographic pressures and EU-wide care workforce shortages. Drawing on 39 qualitative interviews with migrant care workers and stakeholders, we apply a layered theoretical framework combining labour process theory and migrant labour regime theory centred on legal dualism, transnationalism, and labour agency to analyse the lived experiences of migrant LTC work. The study reveals how migration, industrial relations, and welfare regimes interact with labour agency to produce segmented and structurally marginal care roles for migrants. Despite divergent pathways into LTC including circular self-employment in Austria, education-based integration in Finland, and informal agency recruitment in Slovakia, all three regimes converge in their reliance on precarious, undervalued migrant labour. Migrant workers navigate these conditions through individualised strategies of resilience and reworking, with limited access to collective representation. Our findings highlight the emergence of niche migrant labour regimes that sustain care provision while reinforcing exclusion from core labour protections. The article contributes to industrial relations scholarship by theorising migrant LTC work as a labour process shaped by legal differentiation, constrained agency, and multi-scalar governance, raising critical questions about equity and sustainability in European care systems. |
| Date: | 2025–10–29 |
| URL: | https://d.repec.org/n?u=RePEc:cel:dpaper:74 |
| By: | DiMaria, Charles-Henri |
| Abstract: | Despite the pioneering works of Kuznets and Kaldor in the mid-fifties, it was not until the nineties that economists began to thoroughly investigate whether income inequality is detrimental or conducive to growth. A brief survey of the literature does not yield a definitive conclusion. Some authors argue that inequality is beneficial, as higher-income populations are more likely to save and invest in innovative activities. Conversely, other authors contend that concentrating income in the hands of a few limits the number of potential investors, hinders the development of markets and industries with increasing returns, and may dis-incentivize investment in human capital. Since the mid-nineties, most empirical studies attempting to uncover a link between income inequality and growth have concluded that the relationship is predominantly negative. In this study, we reveal a more complex link, characterized by an inverted-U shape that is mostly negative and only applicable to countries with intermediate income per capita. For poor and rich countries, this link does not exist. We employ a panel threshold model approach, introducing income inequality in linear, quadratic, and cubic forms to allow for potential linear, U-shaped, inverted-U-shaped, and even more complex relationships between inequality and growth. |
| Keywords: | Income inequality, growth regression, panel threshold. |
| JEL: | C23 D63 O47 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126418 |
| By: | Strachman, Eduardo; Souza Fraga, Jefferson; Guidorzzi Girotto, Vitor |
| Abstract: | This chapter redefines monetary and fiscal policies through the lens of public goods, arguing that their non rival and economy wide benefits require coordinated management to foster inclusive economic growth and employment. Drawing on post Keynesian theory, it shows how money, as a social technology, and fiscal policy, through infrastructure and investment programmes, shape expectations, stimulate private investment, and enhance welfare. Integrating theoretical insights with historical and contemporary evidence, including the COVID 19 policy response, the chapter underscores the importance of strategic coordination to overcome uncertainty, stabilize long term investment and strengthen macroeconomic resilience. It challenges conventional approaches that treat policies in isolation, advocating instead their design as complementary instruments for sustainable development and shared prosperity. |
| Keywords: | Fiscal policy; Infrastructure investment; Monetary policy; Policy coordination; Post Keynesian economics; Public goods. |
| JEL: | E50 E60 H11 H41 H60 |
| Date: | 2025–07–19 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126340 |
| By: | Anand Bhardwaj; Samer Faraj |
| Abstract: | In high stakes organizational contexts like healthcare, artificial intelligence (AI) systems are increasingly being designed to augment complex coordination tasks. This paper investigates how the ethical stakes of such systems are shaped by their epistemic framings: what aspects of work they represent, and what they exclude. Drawing on an embedded study of AI development for operating room (OR) scheduling at a Canadian hospital, we compare scheduling-as-imagined in the AI design process: rule-bound, predictable, and surgeon-centric, with scheduling-as-practiced as a fluid, patient-facing coordination process involving ethical discretion. We show how early representational decisions narrowed what the AI could support, resulting in epistemic foreclosure: the premature exclusion of key ethical dimensions from system design. Our findings surface the moral consequences of abstraction and call for a more situated approach to designing healthcare process-specialized artificial intelligence systems. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2510.21843 |
| By: | Jean-Luc Gaffard (Université Côte d'Azur, IUF et Sciences, Po, OFCE); Mauro Napoletano (Université Côte d'Azur, CNRS, GREDEG et Sciences Po, OFCE) |
| Abstract: | Une nouvelle industrialisation est aujourd'hui une priorité pour l'Europe afin de répondre aux défis des transitions numérique et écologique. Elle ne concerne pas uniquement le secteur manufacturier, mais exige une transformation plus large de l'économie, impliquant une meilleure coordination entre acteurs publics et privés. Les approches fondées uniquement sur l'intervention de l'État ou sur des mesures protectionnistes sont insuffisantes. Une stratégie efficace repose sur une collaboration durable entre tous les acteurs économiques, selon une logique de gouvernance polycentrique et d' "autonomie imbriquée". Cela suppose d'investir massivement dans l'innovation, d'adapter les règles de concurrence et de repenser les politiques financières, du travail et commerciales à l'échelle européenne. L'objectif est de créer des écosystèmes industriels capables d'innover, de créer des emplois de qualité et de renforcer la souveraineté technologique de l'Europe. La réussite de cette stratégie passe par une action collective cohérente, capable d'allier transformation. |
| Keywords: | Coordination, croissance, action collective, autonomie enchâssée, gouvernance polycentrique, engagement, industrie, politique économique |
| JEL: | O2 O3 O4 O5 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-43 |
| By: | Agustin Mario |
| Abstract: | According to current macroeconomic models, there is a need to maintain a natural rate of unemployment to contain inflation. Put simply, unemployment is considered an (inevitable) cost of price stability. Even some Post Keynesian economists believe the so-called balance-of-payments (BOP) constraint imposes a trade-off between inflation and unemployment in developing countries. On the contrary, what has come to be known as Modern Money Theory (MMT), from its inception, argued that full employment and price stability (as defined) can be achieved simultaneously, through a labor buffer stock or Job Guarantee (JG). In addition to the theoretical literature on the JG, there have been a number of "real world" experiences. In particular, Argentina's Jefes y Jefas de Hogares Desocupados program ("Jefes") has been considered, in the MMT literature, as a (limited) JG case study. While the Jefes and its reform have been addressed in the past, this article considers the rationale for such reform within the broader framework of an economic policy based on two fundamental pillars of social inclusion: the expansion of social security and aggregate demand management that would drive economic growth and, thus, job creation. While both job creation and expansion of social security allowed for a steep decline in poverty and extreme poverty rates during the 2003-15 period, the economy did not reach full employment; in fact, jobs were lost for the less skilled. Not only did aggregate demand management not secure full employment, but it proved to be inherently inflationary. Indexation of public wages, social security payments and virtually every price paid by the government compounded the problem and institutionalized inflation. After the fall of the currency board in 2002, Argentina defaulted on its foreign currency public debt and implemented the Jefes, which could have been expanded to achieve full employment and an internally stable currency. Unfortunately, the Jefes was gradually faded out, along with the potential benefits of transforming it into a full-fledged JG. It is imperative to retake the road once taken. Labor markets and--more generally--the world economy are going through an unprecedented transformation driven by technological, environmental and demographic changes. In this context, MMT offers practical insights for achieving politically determined goals--for example, sustainable development goals. Specifically, the JG can now deliver employment for all. |
| Keywords: | Job Guarantee; MMT; Argentina; Jefes Program; Economic Policy |
| JEL: | F30 N10 N14 P16 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:lev:wrkpap:wp_1088 |
| By: | Yang, Fu; Huang, Xiaoyu; Deng, Hong; Coyle-Shapiro, Jacqueline; Xie, Mengying; Zhou, Zihan |
| Abstract: | Increasingly complex and volatile work environments challenge long-term employment and job security. Managers are not exempt from this, because they also often perceive their own jobs to be precarious. Drawing upon conservation of resources theory, we offer a fresh perspective to understand how and when abusive supervision is induced by manager job insecurity on a daily basis. We draw upon manager need for power as a within-person novel explanatory mechanism to explain why job insecurity triggers managers to display abusive supervision on a daily basis. To test our model, we conducted a study over a period of 10 consecutive days, using an experience sampling methodology, in which 126 managers in Chinese banks completed 1, 058 daily surveys. In agreement with our hypotheses, we found that manager need for power, triggered by job insecurity, is a proximal cause of abusive supervision on a daily basis, after controlling for several other variables that have been found to lead to abusive supervision. The detrimental effects of daily manager job insecurity are alleviated when managers are equipped with higher levels of trait resilience and daily state mindfulness. Thus, our findings provide a more comprehensive picture of how managers’ stable and dynamic resources operate as beneficial buffers, alleviating the harm resulting from a daily workplace stressor—in this case, job insecurity. Overall, our study traces the fluctuation of a specific resource, and reveals the consequences of manager job insecurity from a leader-centric perspective. |
| Keywords: | abusive supervision; manager job insecurity; need for power; state mindfulness; trait resilience; AAM requested |
| JEL: | R14 J01 J50 |
| Date: | 2024–10–25 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125948 |
| By: | Tanguy Bonnet |
| Abstract: | Low-carbon technologies are highly intensive in critical minerals for which extraction and transformation generate heavy socio-environmental negative externalities. Global trade flows of such materials and technologies are part of a singular macroeconomy, filled with geopolitical issues and national strategies.This paper aims to draw on environmental justice and ecological macroeconomics theoretical frameworks in order to assess the global material allocation of critical minerals and low-carbon technologies, and question its equity and efficiency, in the lens of the ecologically unequal exchange theory.Peripheral mining countries assume the heavy socio-environmental costs related to the extractive activities, while global trade flows enable an asymmetrical material allocation toward richer core countries. Two countries stand out : China, as the semi-periphery, and the US, as the challenged core.The paper also discusses how shifting geopolitics, geo-economic fragmentation and national strategies could modify such patterns of ecologically unequal exchange. |
| Keywords: | critical minerals ; global trade flows ; ecologically unequal exchange ; environmental justice ; geo-economic fragmentation |
| JEL: | Q42 L72 F18 Q37 Q56 Q57 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:drm:wpaper:2025-39 |
| By: | Dimitri B. Papadimitriou; Nikolaos Rodousakis; Giuliano T. Tajima; Gennaro Zezza |
| Abstract: | In this report, Dimitri B. Papadimitriou, Nikolaos Rodousakis, Giuliano T. Yajima, and Gennaro Zezza investigate the determinants of the recent performance of the Greek economy. Despite geopolitical instability from the continuing Ukraine-Russia and Israel-Gaza wars and higher-than-expected inflation rates, the country has managed to register the highest growth rates among eurozone member-states in 2021 and 2022. Yet the authors' projections, based on 2023Q3 official statistics, show that there will be a deceleration of GDP growth in the upcoming two years. This will be driven mainly by sluggish consumption demand due to the falling trend of real wages and persistent higher imported inflation, coupled with the inability of the government to deploy NGEU funds and a significant loss of production due to climate damage from floods and fires. These dynamics will likely continue the brain drain of skilled workers, who opt to move abroad for better employment opportunities. The overreliance of the Greek economy on tourism is also questioned, given the dependency on foreign industrial inputs. |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:lev:levysa:sa_2_24 |
| By: | Southard, Emily; Becot, Florence; Inwood, Shoshanah |
| Keywords: | Labor and Human Capital |
| Date: | 2024–10–09 |
| URL: | https://d.repec.org/n?u=RePEc:ags:nercrd:347197 |
| By: | Kaito Takano; Masanori Hirano; Kei Nakagawa |
| Abstract: | Accurately forecasting central bank policy decisions, particularly those of the Federal Open Market Committee(FOMC) has become increasingly important amid heightened economic uncertainty. While prior studies have used monetary policy texts to predict rate changes, most rely on static classification models that overlook the deliberative nature of policymaking. This study proposes a novel framework that structurally imitates the FOMC's collective decision-making process by modeling multiple large language models(LLMs) as interacting agents. Each agent begins with a distinct initial belief and produces a prediction based on both qualitative policy texts and quantitative macroeconomic indicators. Through iterative rounds, agents revise their predictions by observing the outputs of others, simulating deliberation and consensus formation. To enhance interpretability, we introduce a latent variable representing each agent's underlying belief(e.g., hawkish or dovish), and we theoretically demonstrate how this belief mediates the perception of input information and interaction dynamics. Empirical results show that this debate-based approach significantly outperforms standard LLMs-based baselines in prediction accuracy. Furthermore, the explicit modeling of beliefs provides insights into how individual perspectives and social influence shape collective policy forecasts. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.02469 |