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on Heterodox Microeconomics |
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Issue of 2025–07–28
nineteen papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Jakob Kapeller (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Institute for Socio-Economics, University of Duisburg-Essen, Germany); Claudius Graebner-Radkowitsch (Department for Pluralist Economics, Europa University Flensburg, Germany; Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria); Stephan Puehringer (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Socio-Ecological Transformation Lab, Johannes Kepler University Linz, Austria) |
| Abstract: | Transformation is key term in the broader study of socio economic provisioning system that has gained increased prominence and visibility in recent years due to intensifying economic, social and ecological risks and crises in the global economy. In this short review we assess key understandings of transformation in the recent literature and map how these understandings build on, extend and potentially deviate from classic accounts of socio economic change as found classic accounts of evolutionary institutionalism. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ico:wpaper:161 |
| By: | Mercure, Jean-Francois; Pollitt, Hector; Geels, Frank W.; Zenghelis, Dimitri |
| Abstract: | The low-carbon transition is generally portrayed as involving costs to the economy through lower productivity and generating benefits through avoided impacts of climate change. This mainstream economic narrative hinges on two critical assumptions that stem from an allocation perspective: that low-carbon technologies are more expensive than high-carbon ones, and that low-carbon investment displaces resources from their optimal allocation. However, evidence increasingly suggests that neither assumption may be true. Drawing on evolutionary and complexity economics and making different, empirically-supported, assumptions about innovation dynamics, structural change, and the endogenous creation of finance, this paper examines the impacts on UK labour productivity of a low-carbon transition in the power, transport and heat sectors using a coupled macro-econometric and technology model (E3ME-FTT). Using realistic assumptions, the model results show moderate but positive productivity increases in the transition that stem from technological learning-by-doing and productivity growth in specific sectors, which induces investments that ultimately lead to expanded economic capacity across the economy. |
| Keywords: | labour productivity; climate policy; economic growth; low-carbon transitions |
| JEL: | N0 R14 J01 |
| Date: | 2025–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128830 |
| By: | Cajas Guijarro, John |
| Abstract: | This paper proposes an extended Goodwin model that synthesizes Marxian and Keynesian dynamics into a unified four-dimensional framework. The model integrates endogenous technical change via mechanization, investment behavior driven by effective demand, and goods market disequilibrium. We develop two three-dimensional closures–a Classical-Marxian and a Keynesian-Kaleckian formulation–each capable of generating persistent endogenous cycles through Hopf bifurcations. These are then combined into a Marxian-Keynesian (MK) system, which exhibits complex dynamics including quasi-periodicity and, under specific parameter values, a double-Hopf bifurcation. This result, to our knowledge not previously identified in extended Goodwin models, points to the potential for interacting oscillatory modes and long-run fluctuations even with relatively simple behavioral rules. Numerical simulations suggest that the MK synthesis captures rich endogenous fluctuations without relying on exogenous shocks and may exhibit chaotic dynamics under future extensions. These findings lay the groundwork for a more comprehensive Mars-Keynes-Schumpeter synthesis of capital instability, as suggested in the conclusion section. |
| Keywords: | Extended Goodwin model; Mechanization; Effective demand; Marxian-Keynesian synthesis; Double-Hopf bifurcation |
| JEL: | B51 C61 E12 E32 O41 |
| Date: | 2025–07–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125286 |
| By: | Xu, Tao Louie |
| Abstract: | This research examines the limits of neoliberal economic growth in poverty mitigation and spotlights the role of social policy in mediating social and economic objectives. Based on double movement, fictitious commodities, and social embeddedness of plural markets, with a Polanyian perspective on Bolivia’s Water Wars case, it disenchants the marketism legacy in our contemporary neoliberalism materialised in growth-poverty dynamics. The findings indicate that economic growth is accessible but insufficient to mitigate multi-layered poverty around societal demands and structures. The research argues for a holistic, contextualised anti-poverty framework with protective social policy and mediated socio-economic development embedded in social relations during the neoliberal era. |
| Keywords: | neoliberalism; economic growth; poverty; fictitious commodities; double movement; social policy |
| JEL: | B5 B52 O1 O2 Z1 Z13 Z18 |
| Date: | 2024–04–13 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122658 |
| By: | Andrea Borsato (UniBg - Università degli Studi di Bergamo = University of Bergamo, BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); André Lorentz (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This paper offers a contribution to the literature on science policies and on the possible trade-off between broad science-technology policies and mission-oriented programs. We develop a multi-country, multi-sectoral agentbased model that represents a small-scale monetary union. Findings are threefold. Firstly, symmetric science policies from governments significantly reduce cross-country growth divergence. Secondly, even if economic growth is largely driven by the sectors with absolute advantages, having some flow of open science investments is sufficient for the other industries to survive and innovate. Thirdly, science policy limits monopolistic tendencies and reduces income inequality. Yet, the working of the model suggests that supply-side science policies should be paired with demand-side policies to meet grand societal challenges. |
| Keywords: | Science policies, Structural and technical change, Economic growth |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05092674 |
| By: | Pablo Marmisolle (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | This paper presents an extension of the distribution and growth model developed by Hein and Tarassow (2010), incorporating land rents as a relevant component of the functional income distribution. The extension is based on the post-Kaleckian model for open economies with endogenous technical progress and positive saving out of all types of income, integrating land rents alongside wages and profits into the functional distribution. Land rents are considered income derived from the monopolistic control of a non-reproducible capital: land. In this context, the mark-up rate on average variable cost is implicitly higher in the agricultural sector, whose surplus includes both profits and land rents, than in the rest of the economy. By considering the share of wages, profits, and land rents within the functional income distribution, the model allows for the analysis of how changes in the distribution among these three components affect aggregate demand, productivity growth, and ultimately, economic growth. Incorporating land rents allows the model to characterise and analyse multiple regimes and/or combinations of demand, productivity, and growth regimes. Particularly, the extended model opens up the possibility that wage-led or profit-led regimes may not be ‘pure’ but could also incorporate elements of a land rent-led regime. This is especially relevant for peripheral economies, mainly for long-term analyses or during historical periods in which land rents may have had a larger share of income. |
| Keywords: | growth regimes, functional income distribution, land rents |
| JEL: | E12 E25 O41 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ulr:wpaper:dt-16-24 |
| By: | Olivier Brette (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique, INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées); Nathalie Lazaric (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur) |
| Abstract: | Abstract: In the recent decades, circular economy (CE) has attracted increasing interest from public authorities, non-profit organizations, businesses and, more recently, scholars who have proposed a variety of approaches to the concept. This article aims to lay the foundations for an original framework for analyzing CE from the perspective of the evolutionary institutionalism pioneered by Thorstein Veblen. Evolutionary institutionalism is rooted in a systemic and multi-layered ontology. It employs the Darwinian triplet of variation, selection, and retention/replication (VSR) as a fruitful framework for analyzing evolving population systems. Building on this generalized Darwinism framework, the article argues that the transition from a linear economy to a (more) circular economy should be conceived primarily as a co-evolution between business firms and industry architectures. From this perspective, it suggests centering the analysis of the VSR processes of the CE transition on the notion of business model, defined as a system of organizational routines that structures interactions between the members of the firm and the social entities of its industrial environment |
| Keywords: | circular economy business model evolutionary institutionalism generalized Darwinism JEL Classification Codes: B52 L20 Q57, circular economy, business model, evolutionary institutionalism, generalized Darwinism |
| Date: | 2025–05–29 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:halshs-05102816 |
| By: | C. Champenois (Audencia Business School); D. Dimov; S. Silvia Gherardi; D. Hjorth; N. A. Thompson |
| Abstract: | As the boundaries of ‘work' extend to include work that adapts to or brings about new organization, social value and alternative futures, it intersects with entrepreneurship studies in intriguing yet under-developed ways. This special issue focuses on developing this intersection by advancing process and practice theory research on entrepreneuring. Entrepreneuring is a concept that captures the processuality and relationality of entrepreneurship, and its emancipatory potential, that occurs amidst existing organizational conditions of work. Entrepreneuring thus poses hitherto missing questions relating to how new forms of work are actually enacted in concrete practices, the tensions from which it emerges and that it triggers, the ambivalence it conveys, and the metamorphoses it goes through. In turn, entrepreneuring conceives of work as fluid and permeated by open-ended possibility, providing space for scholars of entrepreneurship, work and organization to come together to ‘imagining-with' practitioners alternative political, social, technological and ecological futures that have yet to come into being. The articles in this special issue illuminate the various processes and practices of entrepreneuring at work and provide novel conceptualizations, vocabularies, and methodologies that can advance this budding but increasingly important domain of research and practice. |
| Keywords: | Entrepreneurship, Emotion in organizations, Organizational life, ,Workplace democracy, alternative futures, affective practices, ,organization creation, imagination, entrepreneurialisation of work |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05122436 |
| By: | Anna Hornykewycz (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Socio-Ecological Transformation Lab, Johannes Kepler University Linz, Austria); Lukas Cserjan (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Socio-Ecological Transformation Lab, Johannes Kepler University Linz, Austria); Stephan Puehringer (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Socio-Ecological Transformation Lab, Johannes Kepler University Linz, Austria); Julia Eder (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Socio-Ecological Transformation Lab, Johannes Kepler University Linz, Austria); Laura Porak (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Socio-Ecological Transformation Lab, Johannes Kepler University Linz, Austria) |
| Abstract: | Die Mobilitaetswende ist ein zentraler Baustein für die Erreichung der Klimaziele in Oesterreich. Der Verkehrssektor verursacht rund 28 Prozent der gesamten Treibhausgas- emissionen und verzeichnet im Gegensatz zu anderen Sektoren seit 1990 keinen Rueck- gang. Der Ausbau oeffentlicher Verkehrsmittel, insbesondere der Bahn, bietet jedoch nicht nur oekologische, sondern auch soziale und oekonomische Chancen. Dazu zaehlen emissions- aermerer Verkehr, gleichberechtigter Zugang zur Mobilitaet und wirtschaftliche Impulse durch oeffentliche Infrastrukturinvestitionen. Einem Mixed-Method-Ansatz folgend, analysiert die vorliegende Studie analysiert einerseits die wirtschaftlichen Auswirkungen eines gross angelegten Bahnausbaus auf Basis des Ziel- netz 2040 mittels einer Input-Output-Analyse. Die Ergebnisse zeigen: Die Investitionen in die Bahninfrastruktur fuehren zu hoher heimischer Wertschoepfung von bis zu 24, 4 Milliarden Euro, Beschaeftigungseffekten von bis zu 230.000 Jahresarbeitsplaetzen ueber 16 Jahre sowie gesteigerten Staatseinnahmen. Besonders profitiert der Bausektor, aber auch zahlreiche vor- und nachgelagerte Branchen wie etwa die Stahlindustrie oder die Elektrotechnik. Andererseits beleuchtet eine qualitative Analyse die Staerken und Herausforderungen der oesterreichischen Bahnindustrie. Diese zeichnet sich durch einen stabilen Markt in Oester- reich, eine hohe Exportquote, starke Innovationskraft und eine Vielzahl unterschiedlich spezialisierter Unternehmen, die sehr gute Arbeitsbedingungen bieten, aus. Oesterreich belegt im internationalen Vergleich den ersten Platz bei Patentanmeldungen pro Kopf im Eisenbahnbereich und verfuegt ueber mehrere Nischen-Weltmarktfuehrer. Gleichzeitig bestehen Herausforderungen etwa durch die angestiegenen Energiepreise, die infolge auch ueber Kollektivvertragserhoehungen die Lohnstueckkosten beeinflussten, Buerokratie und inter- nationale Konkurrenz, insbesondere durch chinesische Anbieter. Die Studie zeigt, dass eine erfolgreiche Mobilitaetswende mehr als nur Investitionen in Infrastruktur braucht. Sie erfordert eine gute Koordination von nachfrageseitiger Industrie politik, Arbeitsmarktpolitik, Bildungspolitik und Verkehrspolitik. Nur durch eine ganz- heitliche Strategie lassen sich vorhandene industrielle Kapazitaeten nutzen und faire Ueber- gaenge für Beschaeftigte ermoeglichen. Die gezielte Foerderung der Bahnindustrie (besonders auf europaeischer Ebene) kann Oesterreichs Rolle als internationaler Innovationsstandort staerken und neue Perspektiven fuer vom Strukturwandel betroffene Regionen eroeffnen. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ico:wpaper:162 |
| By: | Thomas Palley (Economics for Democratic and Opens Societies) |
| Abstract: | This paper presents a theory and model of long-run cycles in income inequality. The model explains the historical pattern of income distribution identified by Kuznets (1955) and Piketty (2014). It breaks with conventional marginal product theory which claims functional income distribution is determined by the technological conditions of production. Instead, it emphasizes the role of socio-political forces that shape and drive fluctuations in the level of popular political organizations, which then impact distribution. That impact includes assessment and attribution of productivity contributions. The model provides a framework for interpreting the historical evolution of income distribution and inequality, and for reflecting on current conditions and possible future developments. The core message is twofold. First, socio-political developments matter for income distribution. Second, if those developments are cyclical, income distribution will also exhibit cyclicality. |
| Keywords: | Income distribution, inequality, cycles, Kuznets curve, Piketty |
| JEL: | E3 J3 N3 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:imk:fmmpap:117-2025 |
| By: | Claire Estagnasié (UQAM - Université du Québec à Montréal = University of Québec in Montréal, UniCA - Université Côte d'Azur, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, LabCMO - Laboratoire de communication médiatisée par ordinateur - UQAM - Université du Québec à Montréal = University of Québec in Montréal, CIRST - Centre interuniversitaire de recherche sur la science et la technologie - UdeM - Université de Montréal - UQAM - Université du Québec à Montréal = University of Québec in Montréal, RECOR - Groupe de recherche sur la Communication Organisante) |
| Abstract: | This paper investigates how corporate nomads experience faire corps, a negotiated organizational embodiment in the context of location-independent work. Based on a multi-sited ethnography combining remote and in situ shadowing, informal conversations, and interviews with mobile employees across sectors, the study explores how individuals make, unmake, and remake the organizational body through affective, material, and relational practices. Anchored in an embodied practice perspective and communication-centered approaches to organizing, the analysis introduces the notion of degrees of embodiment to capture the varying ways in which workers align with, distance themselves from, or reconfigure their relationship to organizational forms. By showing that what matters is not hybridity per se, but the embodied and affective resonance with modes of working, this study challenges dominant narratives that portray flexible work as the "best of both worlds." It contributes to research on new ways of working by foregrounding the invisible, embodied labor involved in sustaining organizational belonging at a distance. |
| Keywords: | corporate nomads, work from anywhere, embodied practices, shadowing, CCO approach |
| Date: | 2025–07–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05143989 |
| By: | Jade Leroueil (GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | Technological development consumes energy, depletes natural resources and generates significant carbon emissions and environmental damage (IPCC, 2023). For this reason, and in view of an effective ecological transition, it is essential that industry leaders commit themselves and steer their companies towards a development that is consistent with the challenges of sobriety. Based on qualitative research, this article aims to shed light on the contradictions between environmental objectives and sector managers' "cowboy" vision, particularly regarding their view of competition. Interviews reveal a Darwinian approach to competition, with the underlying idea that there is no monopoly. A logic of conquest, of "always more, " drives this vision. This article discusses the role of democratic institutions and legal frameworks in changing tech leaders' attitudes from a Wild West vision of unlimited resources to one of responsibility to society, especially in facing environmental challenges (Boulding 1966). |
| Keywords: | climate change, antitrust policy, ideology, institutional economics |
| Date: | 2025–05–29 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05146308 |
| By: | Buzdugan, Stephen R.; Freund, David; Forsgren, Mats; Holm, Ulf |
| Abstract: | This article unveils a new way of theorizing the multinational enterprise (MNE) to explain why it may engage in ‘anti-societal’ behavior – i.e. behavior that may systematically lead to negative societal outcomes, such as environmental degradation, poor working conditions, or antitrust violations. Our new ‘self-preservation perspective’ of the MNE holds that MNEs exert their relative political power to protect their market position, assets, and strategic advantages from political and economic threats. In doing so, negative societal outcomes can result, not as anomalies but rather a structural phenomenon rooted in the firm’s intrinsic drive for survival. Drawing on insights from institutional economics and international relations theory, we argue that self-preservation behavior is more fundamental than profit-maximization behavior, which has long been assumed to be the primary motive of MNEs. We shed new light on why MNEs engage with transnational social spaces through an illustrative case of Tesla's anti-union activities in Sweden. We observe how self-preservation has influenced Tesla’s resistance to signing collective bargaining agreements in Sweden and has led to the emergence of a self-interested transnational regulatory community that deteriorates labor rights. Thus, we posit that the self-preservation perspective offers a powerful complement to existing international business theory by providing a critical analytical lens on the societal role of MNEs in the context of the ‘grand challenges’. This alternative perspective challenges conventional narratives of MNE behavior as primarily cost-efficient, value-creating or innovative, and demonstrates that MNE anti-societal behavior is structural rather than isolated to a few individual cases. |
| Date: | 2025–06–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:m87se_v1 |
| By: | Ana-Isabel Guerra; Ferran Sancho |
| Abstract: | Interindustry data report employment levels by activity branch. Subsystems, as first introduced by Sraffa (1960), enable the partition of the productive network into distinct components associated with the production structure of a specific good, treating it as if it were isolated from the rest of the economy. In this paper, we propose a generalization of the standard subsystem concept that incorporates endogenous employment requirements arising from the output-labour-consumption links, which are typically overlooked. This extension allows employment to be allocated from branches to subsystems and enables the decomposition of employment levels into standard subsystem effects and induced subsystem effects. |
| Keywords: | subsystems, employment landscape, output effects, endogenous consumption |
| JEL: | J21 C67 C81 B51 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1493 |
| By: | Perukrishnen Vytelingum; Rory Baggott; Namid Stillman; Jianfei Zhang; Dingqiu Zhu; Tao Chen; Justin Lyon |
| Abstract: | In this paper, we describe a novel agent-based approach for modelling the transaction cost of buying or selling an asset in financial markets, e.g., to liquidate a large position as a result of a margin call to meet financial obligations. The simple act of buying or selling in the market causes a price impact and there is a cost described as liquidity risk. For example, when selling a large order, there is market slippage -- each successive trade will execute at the same or worse price. When the market adjusts to the new information revealed by the execution of such a large order, we observe in the data a permanent price impact that can be attributed to the change in the fundamental value as market participants reassess the value of the asset. In our ABM model, we introduce a novel mechanism where traders assume orderflow is informed and each trade reveals some information about the value of the asset, and traders update their belief of the fundamental value for every trade. The result is emergent, realistic price impact without oversimplifying the problem as most stylised models do, but within a realistic framework that models the exchange with its protocols, its limit orderbook and its auction mechanism and that can calculate the transaction cost of any execution strategy without limitation. Our stochastic ABM model calculates the costs and uncertainties of buying and selling in a market by running Monte-Carlo simulations, for a better understanding of liquidity risk and can be used to optimise for optimal execution under liquidity risk. We demonstrate its practical application in the real world by calculating the liquidity risk for the Hang-Seng Futures Index. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.15296 |
| By: | Devi Vijay (IIM Calcutta); Héloïse Berkowitz (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique, AMU - Aix Marseille Université); Benjamin Huybrechts (IÉSEG School Of Management [Puteaux], LEM - Laboratoire d'Economie et de Management - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur); Luc Audebrand (ULaval - Université Laval [Québec]); Marcos Barros (EESC-GEM Grenoble Ecole de Management); Marianna Fotaki (WBS - Warwick Business School - University of Warwick [Coventry]) |
| Abstract: | Amidst multiple crises on a planetary scale, alternative organizing offers plural possibilities for reconfiguring societal relations and bringing into being a more liveable world. Despite growing interest, the literature on alternative organizing remains fragmented, marked by a narrow and selective integration of disciplinary and geographic knowledge communities.This fragmentation leads to ambiguities and contradictions in concepts and theory development. To address these issues, we review 50 years of research on alternative organizing, following three steps. First, we map the genealogy of research on alternative organizing, identify its relations with institutional orders, and distinguish key perspectives.Second, we develop an integrative framework that (a) identifies three constitutive dimensions of alternative organizingimaginaries, alterity, and subjectivities; and (b) synthesizes the processes, frictions, and outcomes for societal transformation. Drawing on this framework, we suggest avenues to attune to the ways alternative organizing unsettles dominant orders and cultivates the present and future, other-wise. |
| Keywords: | Alternative organizing, Alternative organization, Imaginaries, alterity, Subjectivity, Friction, Societal transformation, Social order, Institutional order, institutions, Prefiguration |
| Date: | 2025–07–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:gemwpa:hal-05132352 |
| By: | Mahdi Kohan Sefidi |
| Abstract: | Financial crises often occur without warning, yet markets leading up to these events display increasing volatility and complex interdependencies across multiple sectors. This study proposes a novel approach to predicting market crises by combining multilayer network analysis with Long Short-Term Memory (LSTM) models, using Granger causality to capture within-layer connections and Random Forest to model interlayer relationships. Specifically, we utilize Granger causality to model the temporal dependencies between market variables within individual layers, such as asset prices, trading values, and returns. To represent the interactions between different market variables across sectors, we apply Random Forest to model the interlayer connections, capturing the spillover effects between these features. The LSTM model is then trained to predict market instability and potential crises based on the dynamic features of the multilayer network. Our results demonstrate that this integrated approach, combining Granger causality, Random Forest, and LSTM, significantly enhances the accuracy of market crisis prediction, outperforming traditional forecasting models. This methodology provides a powerful tool for financial institutions and policymakers to better monitor systemic risks and take proactive measures to mitigate financial crises. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.11019 |
| By: | Myles, Jamieson |
| Abstract: | Financial technology (fintech) innovations have the potential to disrupt traditional banking by unbundling banking, money, and payments. However, the impact on the cross-border payments system—which still relies on correspondent banking networks—remains uncertain. This uncertainty partly stems from a historical focus in the literature on cash clearing over credit. Challenging this distinction, this article explores the role of credit in correspondent banking and international payments. A longue durée perspective on cashless payments reveals the deep-rooted importance of credit in the cross-border payment system and highlights correspondent banks’ role in providing it. Changes in bank-intermediated trade finance practices during and after World War I reshaped the London-based correspondent banking network. Furthermore, cash clearing and credit operations remained remarkably congruent until at least the 1980s, as reflected in banks’ internal organisation, reporting, and bankers’ own descriptions of the payment system. This article argues that adopting a definition of payment system infrastructure that integrates both dimensions is essential to understanding how correspondent banking has facilitated international liquidity provision. It also suggests that relying on fintech firms, rather than banks, to provide this elastic payment infrastructure could amount to jumping out of the frying pan and into the fire. |
| Keywords: | Correspondent banking, Payment systems, Infrastructure, Banking history |
| JEL: | N00 N10 N20 B52 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:gnv:wpaper:unige:186604 |
| By: | Louisa Roos (Department of Economics, Trinity College Dublin) |
| Abstract: | This paper examines how women and men’s labour respond differently to monetary policy changes, particularly exchange rate policy. The study leverages the unexpected unpegging of the Swiss franc from the Euro in 2015, which led to a significant appreciation of the Swiss franc. This currency appreciation increased women’s work volume relative to men’s. The effect is especially pronounced among the least educated women, who act as a labour buffer and are most responsive to macroeconomic fluctuations, underscoring the nuanced gender effects of monetary policy. |
| Keywords: | monetary policy, exchange rate, gender, labour |
| JEL: | E52 J16 B54 J21 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:tcd:tcduee:tep0725 |