nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2005‒01‒02
seven papers chosen by
Karl Petrick
Leeds Metropolitan University

  1. Integrating Ethics and Altruism with Economics By David Colander
  2. The Social Cost of Labor By Robert Prasch
  3. The Economic Basis of Social Class By John H Goldthorpe; Abigail McKnight
  4. Arrow-Debreu and the classical and neoclassical economics By Cláudio Gontijo
  5. Employment subsidies - A fast lane from unemployment to work? By Forslund, Anders; Johansson, Per; Lindqvist, Linus
  6. Stepping-stones for the unemployed: The effect of temporary jobs on the duration until regular work By Zijl, Marloes; van den Berg, Gerard J; Heyma, Arjan
  7. Innovation Heterogeneity, Schumpeterian Growth and Evolutionary Theorizing By Pol, Eduardo; Carroll, Peter

  1. By: David Colander
  2. By: Robert Prasch
    Date: 2004–12
  3. By: John H Goldthorpe; Abigail McKnight
    Abstract: In this paper we adopt a theory of class positions based on employment relations to assess what implications individuals¿ class positions have for their economic life. In particular we consider economic security (the risk of unemployment), economic stability (the variability component in earnings) and economic prospects (lifetime earnings profiles). Our findings provide empirical support for the theory itself and little evidence for the currently fashionable claims of the decline, or even death, of class in today¿s society.
    Keywords: social class, relations and conditions of employment, lifetime earnings, employment stability, employment security
    JEL: J31 J33 J21
    Date: 2004–02
  4. By: Cláudio Gontijo (UFMG)
    Abstract: This article challenges the notion that the modern general equilibrium theory of Arrow-Debreu is a rigorous formulation of neoclassical economics and that, by contrast, Sraffian and Marxian economics are not compatible with it. It shows that the standard Arrow-Debreu assumptions regarding the production sets and profit maximization are sufficient to determine equilibrium prices, which then do not depend on consumers’ preferences. Arrow-Debreu equilibrium prices are similar to Marxian labor values since they are proportional to labor time and factor prices are variables that determine the distribution of income but not commodity prices. Instead of being related to the quantity of capital, profits are also proportional to the quantity of labor, causing capital to have different prices at the same point in time and at the same market, which is hardly compatible with the hypothesis of free competition. If the notion of equilibrium prices is modified as to make capital to be rewarded at the same rate in all sectors of the economy, the hypothesis of decreasing returns to scale ensures that competitive prices are an increasing function of demand and, as a consequence, they can be viewed as a product of the interaction between supply and demand. However, in any case there is no inverse relationship between the quantity of capital and its rate of rewards, as requires the neoclassical law of diminishing returns.
    Keywords: Arrow-Debreu model, general equilibrium theory, Marxian economics, Sraffian economics, capital controversy
    JEL: B51 C62 D50
    Date: 2004–12
  5. By: Forslund, Anders (IFAU - Institute for Labour Market Policy Evaluation); Johansson, Per (IFAU - Institute for Labour Market Policy Evaluation); Lindqvist, Linus (IFAU - Institute for Labour Market Policy Evaluation)
    Abstract: The treatment effect of a Swedish employment subsidy is estimated using exact covariate-matching and instrumental variables methods. Our estimates suggest that the programme had a positive treatment effect for the participants. <p> We also show how non-parametric methods can be used to estimate the time profile of treatment effects as well as how to estimate the effect of entering the programme at different points in time in the unemployment spell. <p> Our main results are derived using matching methods. However, as a sensitivity test, we apply instrumental variables difference-in-difference methods. These estimates indicate that our matching results are robust
    Keywords: Evaluation; employment subsidies; exact covariate-matching
    JEL: C14 C41 J23 J38 J68
    Date: 2004–12–20
  6. By: Zijl, Marloes (SEO University of Amsterdam); van den Berg, Gerard J (Free University Amsterdam); Heyma, Arjan (SEO University of Amsterdam)
    Abstract: Individual labour market transitions from unemployment into temporary work are often succeeded by a transition from temporary into regular work. We investigate whether temporary work increases the transition rate to regular work. In that case, temporary work may enhance labour market efficiency. We use longitudinal survey data of individuals to estimate a multi-state duration model, applying the “timing of events” approach. To deal with selectivity, the model incorporates transitions from unemployment to temporary jobs and unobserved determinants of the transition rates. The data contain multiple spells in labour market states at the individual level. We analyse the results using novel graphical representations. The results unambiguously show that temporary jobs serve as stepping-stones towards regular employment. They shorten the duration of unemployment and they substantially increase the fraction of unemployed workers who have regular work within a few years after entry into unemployment, as compared to a situation without temporary jobs.
    Keywords: Unemployment; fixed term contracts; temporary work; job search; duration model; treatment effect
    JEL: C41 J64
    Date: 2004–11–01
  7. By: Pol, Eduardo (University of Wollongong); Carroll, Peter
    Abstract: Schumpeterian growth models revolve around two tacit assumptions that are at odds with the empirical evidence, namely: all innovations are equally important for economic growth (equipollent innovation) and all innovations occur in one sector only (confined innovation). The present paper shows that it is possible to dispose of both implicit assumptions by disaggregating the "ideas production function" without altering the gist of the theoretical framework. The paper refers briefly to the concepts of macro and microinventions, and introduces the concept of "innovatory discontinuity". The extended theoretical framework developed here throws light on the ongoing controversy between neoclassical and evolutionary theorizing.
    Keywords: Innovation heterogeneity, ideas production function, scale effects problem, innovatory discontinuity, neoclassical and evolutionary theorizing
    JEL: O31 O32
    Date: 2004

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