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on Heterodox Microeconomics |
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Issue of 2026–03–30
eighteen papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Takanobu Mizuta; Isao Yagi |
| Abstract: | Some investors say increasing investors with the same strategy decreasing their profits per an investor. On the other hand, some investors using technical analysis used to use same strategy and parameters with other investors, and say that it is better. Those argues are conflicted each other because one argues using with same strategy decreases profits but another argues it increase profits. However, those arguments have not been investigated yet. In this study, the agent-based artificial financial market model(ABAFMM) was built by adding "additional agents"(AAs) that includes additional fundamental agents (AFAs) and additional technical agents (ATAs) to the prior model. The AFAs(ATAs) trade obeying simple fundamental(technical) strategy having only the one parameter. We investigated earnings of AAs when AAs increased. We found that in the case with increasing AFAs, market prices are made stable that leads to decrease their profits. In the case with increasing ATAs, market prices are made unstable that leads to gain their profits more. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.03671 |
| By: | Engelbert Stockhammer |
| Abstract: | The paper discusses the historical development of the debate on financialization supported by bibliometric analysis. There are several origins of the concept of financialisation in the 1990s and in the early 2000s this consolidates in a transdisciplinary project: an attempt to create a critical conversation across academic disciplines about the impact of finance on the economy and society. This was driven by the team of CRESC by organising workshops and special issues, involving critical business studies, constructivist approaches on the household and heterodox macroeconomics. This created the basis for the success of the concept and, since the global financial crisis, enabled an explosive rise of studies on financialisation. But with success also come a fragmentation of the debate and its disintegration along disciplinary lines. Thus, research on financialization today is published in more prestigious journals, but it has decoupled from the core financialisation debate of the 2000s. |
| Keywords: | financialization, sociology of science, bibliometric analysis, history of thought |
| JEL: | B29 B59 G30 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2608 |
| By: | Catelén, Ana Laura |
| Abstract: | For decades, Argentina's long-run divergence has intrigued economic historians. While by the late nineteenth century the country ranked among the world's richest economies, it now occupies a middle position in the global income distribution (Bolt and van Zanden, 2020). A distinctive feature of Argentina's experience, relevant for explaining this outcome, is the marked rise in macroeconomic volatility since the mid-1970s. Unlike other South American economies, this instability has intensified over time (Catelén, 2025), and elevated volatility undermines long-run growth (Badinger, 2010; Loayza & Hnatkovska, 2004; Pastor, 2017; Ramey & Ramey, 1994). Latin American structuralist theory provides a useful framework to understand why volatility itself becomes persistent through the emergence of vicious cyclical dynamics. These dynamics involve recurrent interaction processes that amplify and prolong fluctuations. A central mechanism in this approach is structural distributive conflict, defined as the gap between workers' wage aspirations and the economy's productive capacity (Rapetti & Gerchunoff, 2016). This paper revisits this theoretical tradition and combines it with a modern empirical approach based on a structural VAR framework that allows for causal interpretation to assess whether the interaction between distributive conflict and economic policy can account for Argentina's recurrent cycles of instability that undermine long-run growth. The analysis examines the historical evolution of distributive conflict across three development regimes (the agro-export model, state- led industrialization, and the second globalization) within a structuralist framework linking external constraints, distributive conflict, and macroeconomic instability. |
| Keywords: | Crecimiento Económico; Volatilidad; Ciclos Económicos; Argentina; 1890-2020; |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4470 |
| By: | Jiyuan Lyu |
| Abstract: | This paper proposes a shift in perspective on two long-standing problems in political economy: the reduction of complex labor and the transformation problem. Rather than searching for a unique constant solution, we reframe both problems as characterizing the space of feasible distributions under the constraints imposed by the objective physical-production network. We build an input--output model that includes fixed-capital stocks and prove mathematically that, as long as the macroeconomy generates a physical surplus, all reduction ratios that can sustain the subsistence floor of the labor force form a bounded value feasible set. Within this multi-dimensional space, the classical two macro-aggregates equalities can be satisfied simultaneously for a well-defined range of profit rates, so that the Law of Labor Value and the nominal price system are logically consistent without violating the physical reproduction floor. We validate the theoretical framework with an empirical test based on China's 199-sector input-output network for 2023. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.09450 |
| By: | Juan CARVAJALINO; Herrade IGERSHEIM |
| Abstract: | This article revisits the debate between John Rawls and John Harsanyi by drawing on newly explored archival materials. Traditionally viewed as a short-lived, technical disagreement of the 1970s over the rational criterion for choice under uncertainty—the maximin versus average utility rules—their exchange in fact spanned nearly four decades, from their first encounter in 1964 to the late 1990s. The paper reconstructs this dialogue to reveal its ethical and philosophical depth, showing that what began as a technical dispute gradually evolved into a confrontation over the moral foundations of justice. The paper traces four stages of this evolving relationship, emphasizing Harsanyi’s later overlooked “philosophical turn” and his continuing attempts to defend utilitarianism against Rawls’s egalitarianism. By revealing all the facets of their exchange, the study enriches our understanding of the modern dialogue between economics and philosophy and of the enduring opposition between utilitarian and egalitarian conceptions of social justice. |
| Keywords: | John Rawls, John Harsanyi, Maximin, Utilitarianism, Social justice. |
| JEL: | B21 B31 D60 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2026-07 |
| By: | Simon Bittmann (SAGE - Sociétés, acteurs, gouvernement en Europe - ENGEES - École Nationale du Génie de l'Eau et de l'Environnement de Strasbourg - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Ulysse Lojkine (AxPo - AxPo Observatory of Market Society Polarization - Sciences Po - Sciences Po) |
| Abstract: | This paper sets a new empirical agenda for exploitation theory, through the notion of chains. Exploitation generally offers three attractive properties compared to more commonly used concepts—inequality and domination—in that it is simultaneously distributive, relational, and openly counterfactual, yet it remains an underexplored notion. While both Marxist and neoclassical traditions focus on dyadic relations—either worker-employer or through market exchange—most exploitative situations bear several relational components, where agents can simultaneously stand as exploited and exploiters. Building on a sociological-relational tradition, we identify four chains—I (connected), L (hinged), V (dual) and C (complicit)—which we argue represent the elementary structures of exploitation. We then contend that this meso-level approach, complementary to individual-transactional and structural accounts, bears potential for sociological analysis and then explore how these chains materialize in various economic sites—within the production unit, on the market, in the domestic sphere, and by the state. |
| Keywords: | Domination, Labor, Inequality, Theory, Exploitation |
| Date: | 2025–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04435653 |
| By: | Asuamah Yeboah, Samuel |
| Abstract: | This study examines Chinua Achebe’s Things Fall Apart (1958) as a literary representation of institutional and socio-economic dynamics in pre-colonial and colonial African societies. While previous scholarship has primarily focused on cultural identity and colonial critique, this paper interprets the novel through the combined lenses of institutional economics, political economy, and behavioural economics to investigate how governance structures, cultural norms, and individual incentives shaped economic behaviour and social stability within Igbo society. Using a qualitative textual-economic analysis, key narrative events were coded and analysed in relation to indigenous institutions, agricultural production, and colonial intervention. The findings reveal that pre-colonial Igbo institutions effectively coordinated economic activity and maintained social cohesion, while the introduction of colonial institutions generated institutional displacement, social fragmentation, and economic disruption. Behavioural factors, including leadership rigidity and social identity, further mediated responses to institutional change. The study contributes to interdisciplinary scholarship by demonstrating that literary texts can illuminate historical and economic processes, offering insights for contemporary governance and development policy in African contexts. These findings underscore the importance of integrating traditional institutions, aligning development initiatives with cultural norms, and promoting adaptive leadership to enhance institutional resilience and socio-economic development. |
| Keywords: | Things Fall Apart, institutional economics, political economy, behavioural economics, African development, governance, institutional change |
| JEL: | B52 D91 N37 O10 Z11 |
| Date: | 2026–02–14 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128278 |
| By: | boughabi, houssam |
| Abstract: | This paper develops and empirically evaluates a Kaleckian framework linking income distribution, mark-up pricing, and household consumption dynamics in selected Eurozone economies. Within the Kaleckian tradition, real wages are structurally determined by distributive conflict through the mark-up, implying that shifts toward profits may compress purchasing power and alter aggregate demand. The analysis addresses two central questions: whether variations in the mark-up are reflected in real wage dynamics consistent with Kaleckian pricing, and whether households smooth consumption through borrowing in response to distributive pressures. Using annual data for Germany, France, Italy, and the Netherlands over the period 1980–2025, the results reveal substantial cross-country heterogeneity in real wage developments, providing only partial support for a uniform mark-up compression mechanism. Real consumption exhibits significant persistence in Germany and the Netherlands, with the estimated parameter approaching unity, consistent with martingale-like smoothing and strong path dependence. However, the borrowing channel does not emerge as statistically robust across countries, suggesting that debt does not systematically function as a long-run stabilizing device for demand. The findings therefore support the relevance of Kaleckian distributional dynamics and consumption inertia while offering limited empirical confirmation for sustained debt-led stabilization in the selected Eurozone economies. |
| Keywords: | Kaleckian pricing; Distributive conflict; Debt-financed consumption; Consumption smoothing; Financial fragility |
| JEL: | D33 E12 E25 E31 E44 |
| Date: | 2026–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128395 |
| By: | Maxime Malafosse (COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne, FAYOL-ENSMSE - Institut Henri Fayol - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris]); Amandine Pascal (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | After the 2008 financial crisis, the role of money and the structure of modern monetary systems have become subject to renewed scrutiny. The existing system, marked by extensive financialisation, power concentration, and rising social inequality, is considered incompatible with social justice and ecological sustainability goals. Consequently, decentralised monetary initiatives have emerged as alternatives reshaping and rethinking the nature and governance of money. Of these initiatives, locally managed community currencies (CCs) have risen to prominence, as they view money as a commons designed to serve community needs rather than generate profit. However, the design and governance of CCs remain underdeveloped due to either too broad design principles or empirical insights lacking a theoretical foundation. This study proposes a structured set of design principles, which link theoretical insights to practical guidance. Drawing on a design science approach in a European project, we develop four actionable design principles that guide local communities in creating and adapting CCs to their respective socioeconomic contexts. By integrating insights from contemporary CC literature and practitioners' guidance research, this study offers a flexible yet structured toolkit for designing, deploying, and maintaining CCs. The framework emphasises the importance of balancing technological opportunities with community needs, ensuring the association of CCs with local realities and collective goals. This study helps redefine and design money as a democratic, socially embedded institution capable of fostering equity, resilience, and ecological transition. As such, it contributes to design science knowledge about solving the problem of societal and ecological transformation. |
| Keywords: | Community currencies, Commons, Design Science, Design principles, Blockchain technology, Local Complementray Currencies |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:emse-05520945 |
| By: | Martin Jaraiz |
| Abstract: | How much macroeconomic information is contained in a single input-output table? We feed FIGARO 64-sector symmetric tables into DEPLOYERS, a Darwinian agent-based simulator, producing genuine out-of-sample GDP forecasts. For each year, the model reads one FIGARO table for year N, self-organizes an artificial economy through evolutionary selection, then runs 12 months of autonomous free-market dynamics whose emergent growth rate predicts year N+1. The I-O table is the only input: no time series, no estimated parameters, no expectations formation, no external forecasts. We present five results. First, a 9-year Austrian panel (2010-2018) using 12-seed ensembles produces MAE of 1.22 pp overall; for five non-crisis years, MAE falls to 0.42 pp -- comparable to the best professional forecaster (WIFO: 0.48 pp). Second, cross-country portability is demonstrated across multiple FIGARO countries with zero parameter changes. Third, a German 9-year panel reveals systematic +3.7 pp positive bias from export dependency -- an informative negative result. Fourth, a COVID-19 simulation demonstrates the I-O structure as a shock propagation mechanism: a 19-month timeline produces Year 1 GDP -4.62% vs empirical -6.6%. Fifth, emergent firm size distributions match European Commission data without micro-target calibration. These results establish the I-O table as serving a dual purpose: structural baseline engine and dynamic shock propagation mechanism. Since FIGARO covers 46 countries, the approach is immediately portable without retuning parameters. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.12412 |
| By: | Furukawa, Yoko |
| Abstract: | I construct a model that examines the behavior of the inflation rate considering multiple functions of money. The model demonstrates that Taylor Rules are effective when the inflation rate moves to the same direction with regard to money as a medium of exchange and a storage of value. Under deflation, these two functions of money diverge oppositely and that leads to a liquidity trap which the economy struggles to escape. |
| Keywords: | inflation rate, disequilibrium, money. |
| JEL: | E31 E43 E50 |
| Date: | 2026–01–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127878 |
| By: | Temel, Tugrul |
| Abstract: | Modern economies are networks of interdependent sectors, yet conventional tools for industrial policy overlook the critical pathways, bottlenecks, and communities that de- termine how shocks propagate and productivity gains diffuse. This paper develops a replicable computational methodology—three graph-theoretic algorithms—to transform dense input-output tables into actionable policy diagnostics. The framework identifies critical upstream and downstream pathways, constructs cascading layers of distortion propagation, and quantifies network resilience through community detection and edge- betweenness centrality. Applying this toolkit to Turkey’s 2018 manufacturing sector reveals three principal findings: finance operates as a critical bottleneck where reg- ulated upstream inputs converge; the network exhibits only moderate resilience, with six between-community edges carrying disproportionate systemic risk; and two reinforc- ing cycles—{manufacturing → agriculture → construction → manufacturing} and {manufacturing → energy → construction → manufacturing}—amplify distortions. These results generate specific policy recommendations: prioritize financial sector reforms, coordinate regulation across energy-transport-finance pathways, and protect vulnerable between-community edges. The methodology enables evidence-based, network-aware indus- trial policy applicable to any input-output dataset. |
| Keywords: | production networks; cascading effects; network risk; graph-theoretic analysis; Turkiye; |
| JEL: | C63 C67 D57 L16 L52 |
| Date: | 2026–02–20 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128113 |
| By: | Jakub Ryłow (University of Warsaw, Faculty of Economic Sciences) |
| Abstract: | The paper examines the logical theory of probability formulated by John Maynard Keynes in A Treatise on Probability (1921) as an axiomatic project competing with the measure-theoretic approach to probability codified by Andrei Kolmogorov in Grundbegriffe der Wahrscheinlichkeitsrechnung (1933). We present the structure of both approaches, identify the key divergences — the epistemological interpretation of the probabilistic relation, Keynes’s rejection of full numerability, the status of conditional probability, and the concept of the weight of evidence — and analyse the reasons for Kolmogorov’s triumph. We survey four contemporary interpretive traditions: subjective Bayesianism, frequentism, logical probability, and imprecise probabilities. Particular attention is paid to current applications — from Bayesian inference in machine learning and decision theory under uncertainty, to catastrophe risk pricing and uncertainty management in climate models. We argue that Keynes’s intuitions, long neglected, are gaining new significance in the face of the epistemic challenges of the twenty-first century. |
| Keywords: | logical probability, measure theory, weight of evidence, imprecise probabilities, Bayesianism |
| JEL: | B41 C10 C11 D81 G32 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:war:wpaper:2026-8 |
| By: | Nguyen, Thi Huong; Nguyen, Thi Mai Hanh |
| Abstract: | This study investigates the evolving structure of Vietnam’s economy after ĐổiMới by analyzing output, value-added, and import multipliers for the years 1989, 1996, 2000, 2007, 2012, 2019, and 2025. Unlike conventional approaches, multipliers are decomposed into intra-industry effects and spillover effects components, capturing direct, indirect, and inter-industry feedback loops effects and spillover effects for output, value added, and imports. The results reveal substantial shifts in industrial roles and highlight previously underappreciated channels through which economic activity propagates. By distinguishing these components, the analysis identifies sectors with disproportionate influence on production and trade, offering a refined perspective on structural transformation. These findings provide actionable insights for policymakers aiming to streng then sectoral linkages, enhance value-added generation, and strategically manage import dependence in a rapidly evolving economic landscape. |
| Keywords: | Input-Output analysis, internal effects, Intra-industry effects, Spillover effects, Structural transformation, Vietnam economy. |
| JEL: | C67 |
| Date: | 2026–03–15 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128387 |
| By: | Matthan, Tanya |
| Abstract: | Refusing simple narratives that equate the state of climate action to the quantity of finance flowing in its name, Climate Finance shows that financial instruments and ideas are built on moral and political assumptions about what is valued, whose risks need protection, and who is responsible for redressing harm. Departing from both mainstream and critical approaches to climate finance, the authors neither take financial logics and dynamics to be inevitable and essential, nor dismiss its possibilities for real climate action. Instead, they investigate finance as a dynamic space of political contestation, in which unevenly situated actors envision, negotiate, and build diverse climate futures. In doing so, the book not only offers us vital tools and frameworks to understand what climate finance is and does. Rather, by recognizing the need for a multiplicity of strategies to address our planetary predicament, Climate Finance also pushes for a more expansive imagination of the possible in relation to the actual. |
| Keywords: | climate finance; justice; political contestation |
| JEL: | F3 G3 |
| Date: | 2026–03–05 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:137325 |
| By: | Hui Gong |
| Abstract: | Recent advances in large language models, tool-using agents, and financial machine learning are shifting financial automation from isolated prediction tasks to integrated decision systems that can perceive information, reason over objectives, and generate or execute actions. This paper develops an integrative framework for analysing agentic finance: financial market environments in which autonomous or semi-autonomous AI systems participate in information processing, decision support, monitoring, and execution workflows. The analysis proceeds in three steps. First, the paper proposes a four-layer architecture of financial AI agents covering data perception, reasoning engines, strategy generation, and execution with control. Second, it introduces the Agentic Financial Market Model (AFMM), a stylised agent-based representation linking agent design parameters such as autonomy depth, heterogeneity, execution coupling, infrastructure concentration, and supervisory observability to market-level outcomes including efficiency, liquidity resilience, volatility, and systemic risk. Third, it develops an illustrative empirical application based on event studies of AI-agent capability disclosures and heterogeneous market repricing. The central argument is that the systemic implications of AI in finance depend less on model intelligence alone than on how agent architectures are distributed, coupled, and governed across institutions. In the near term, the most plausible equilibrium is bounded autonomy, in which AI agents operate as supervised co-pilots, monitoring systems, and constrained execution modules embedded within human decision processes. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.13942 |
| By: | Wajcman, Judy; Kampmann, David; Young, Erin |
| Abstract: | Venture capital (VC) is fuelling the boom in artificial intelligence (AI). Yet analysis of a UK dataset reveals that VC is dominated by men, both as investors and the AI start-ups they fund. Gender disparities are identified in VC decision-makers, the composition of founders and the average capital raised by predominantly male, compared to female, teams. This is particularly pronounced in AI software start-ups, the sector that attracts most investment. Whether and how this gender gap shapes the innovation process itself is a further question explored here. Drawing on feminist science and technology studies, we argue that the homogeneity of the VC ecosystem is key to perpetuating the gender gap in innovation. On this basis, we conceptualise venture capital as effectively a form of ‘male-lens investing’, illustrating the limitations of the male-dominated and profit-driven VC investment model. We believe this theoretical framing contributes to contextualising debates about the need for inclusive innovation systems. |
| Keywords: | venture capital; gender; AI |
| JEL: | A14 B54 G24 |
| Date: | 2026–03–12 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:137323 |
| By: | Antoine Mandel; Vipin P. Veetil |
| Abstract: | We study how idiosyncratic firm-level shocks generate aggregate volatility and tail risk when they propagate through a production network under overlapping adjustment: new productivity draws arrive before the economy reaches the static equilibrium associated with earlier draws. Each innovation generates a `productivity wave' that mixes and dissipates over time as it travels through the production network. Macroeconomic fluctuations emerge from the interference between these waves of different vintages. The interference between these waves is governed by the dominant transient eigenvalue of the production network, and therefore so is the macroeconomic fluctuations they generate. In such a dynamic regime, the tail of the degree distribution is a markedly weaker determinant of macro fluctuations than in the fully adjusted static benchmark. And the macroeconomic significance of the degree-heterogeneity of production networks cannot be known without knowing the rate at which the economy converges to equilibrium or equivalently the spectral properties of the production network. More concretely, once we permit the time-averaging of shocks, granular shocks may account for only a small fraction of the empirically observed aggregate volatility. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.05367 |