nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2017‒06‒18
four papers chosen by
Erik Thomson
University of Manitoba

  1. What money does: An inquiry into the backbone of capitalist political economy By Koddenbrock, Kai
  2. Components of Uncertainty By Vegard Høghaug Larsen
  3. The Merit Primacy Effect By Alexander Cappelen; Karl Ove Moene; Siv-Elisabeth Skjelbred; Bertil Tungodden
  4. Wirtschaftspolitischer Diskurs ohne Alternativen: Zur Notwendigkeit einer pluralen Ökonomik By Heise, Arne

  1. By: Koddenbrock, Kai
    Abstract: The theory and critique of capitalism is back at the center of scholarly debate. With it comes a growing awareness of the analytical and political importance of money and money creation. Moving from the more systemic reflections of Karl Marx to more recent work on money theory by Geoffrey Ingham and in financial economics, the paper focuses on three of money's "deeds." As a social structure and process, it makes moneymaking through capital permeate all our societies. As a public-private partnership between the state, rentiers, banks, and taxpayers that has existed since the foundation of the Bank of England in 1694, it binds these actors together in shifting relations of dependence. In today's financial capitalism, what counts as money and how far moneyness stretches into the realms of financial innovation has been the core object of struggle in the public-private partnership of money. In conclusion, the paper discusses how contemporary money redistributes intra-socially and internationally.
    Keywords: capitalism,Bank of England,derivatives,inequality,banks,US dollar,Marx,Ingham
    Date: 2017
  2. By: Vegard Høghaug Larsen
    Abstract: Uncertainty is acknowledged to be a source of economic fluctuations. But, does the type of uncertainty matter for the economy’s response to an uncertainty shock? This paper offers a novel identification strategy to disentangle different types of uncertainty. It uses machine learning techniques to classify different types of news instead of specifying a set of keywords. It is found that, depending on its source, the effects of uncertainty on macroeconomic variable may differ. I find that both good (expansionary effect) and bad (contractionary effect) types of uncertainty exist
    Keywords: Newspaper, Topic model, Uncertainty, Business cycles, Machine learning
    Date: 2017–04
  3. By: Alexander Cappelen (Norwegian School of Economics); Karl Ove Moene (University of Oslo); Siv-Elisabeth Skjelbred (University of Oslo); Bertil Tungodden (Norwegian School of Economics)
    Abstract: Do people give primacy to merit when luck partly determines earnings? This paper reports from a novel experiment where third-party spectators have to decide whether to redistribute from a high-earner to a low-earner in cases where earnings are determined by luck and merit. Our main finding is that the spectators assign strong primacy to merit in such situations, and as a result violate basic fairness conditions. We believe that the results shed new light on inequality acceptance in society, in particular by showing how just a little bit of merit can make people significantly more inequality accepting.
    Keywords: luck, experimental economics, Inequality, fairness
    JEL: C93 D31 D63
    Date: 2017–06
  4. By: Heise, Arne
    Date: 2017

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