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on Post Keynesian Economics |
| By: | David Dequech |
| Abstract: | This paper proposes a broad concept of institutions and examines some theoretically relevant aspects of this and alternative concepts. The proposed concept is broad in two aspects: it includes a mental dimension not reduced to expectations, allowing institutional patterns of thought to include models of varying degrees of generality and precision; and it includes institutions that are norms of some kind as well as others that are not. Institutions may be social norms (legal or informal; moral or epistemic), decision- theoretic norms (a concept introduced to designate patterns that an individual should follow out of self-interest), or conventions without norm status. The proposed concept is able to underlie a theory that emphasizes the possibility of creative, unconventional behavior without implying that such behavior is irrational or necessarily subject to social sanctions. This is different from several concepts of institutions in institutional economics and in sociology. |
| JEL: | O30 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2005:174&r=pke |
| By: | Vincenzo Quadrini; Urban Jermann |
| Keywords: | Debt over-hang, financial flexibility, business cycle asymmetries |
| JEL: | E32 G1 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed005:692&r=pke |
| By: | Jackson, Matthew O. |
| Abstract: | The science of social networks is a central field of sociological study, a major application of random graph theory, and an emerging area of study by economists, statistical physicists and computer scientists. While these literatures are (slowly) becoming aware of each other, and on occasion drawing from one another, they are still largely distinct in their methods, interests, and goals. Here, my aim is to provide some perspective on the research from these literatures, with a focus on the formal modeling of social networks and the two major types of models: those based on random graphs and those based on game theoretic reasoning. I highlight some of the strengths, weaknesses, and potential synergies between these two network modeling approaches. |
| Keywords: | networks, social networks, network games, network formation, game theory |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:clt:sswopa:1237&r=pke |
| By: | André Luís C. de Lourenço |
| Abstract: | This paper proposes that, in spite of some fundamental invariant aspects, the way of exposition of the Minsky's work central concept - the so called Financial Instability Hypothesis - changed significantly throughout his academic productive period; furthermore it assesses the traditional way this concept is exposed does not incorporate important elements from the latest and more mature Minsky's contributions. The paper still states this canonical way to be insufficient to treat contemporary financial crisis phenomenon for lack of updating which incorporates recent institucional changes. |
| JEL: | B22 B59 B31 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2005:009&r=pke |
| By: | Marco Flávio da Cunha Resende |
| Abstract: | A consensus has not yet emerged about the relationship between budget deficit, external deficit and national saving. In general, the mechanisms through which budget deficits could cause current account deficits are not highlighted in the works about this theme. Basing on the Post Keynesian literature one can find a result concerning the relationship between the budget deficit and the national saving distinct from the one observed in the mainstream literature, since Post keynesians invert the causal link between saving and investment. According to mainstream economic literature the budget deficit can cause an insufficiency of national saving while according to Post Keynesians the budget deficit can transfer to abroad the investment stimulus on the saving formation. We arrive at the conclusion that there is not a systematic relationship between budget deficit, current account deficit and national saving and that when it happens it can be processed only through changes in the real exchange rate. |
| JEL: | E21 E22 E62 F30 F41 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2005:068&r=pke |
| By: | José Luís Oreiro; Breno Pascualote Lemos |
| Abstract: | The objective of this article is to present the structure and the first computational simulations of a one-sector macrodynamic model that imbed some elements of the post- keynesian theoretical framework. The theoretical elements embed in the model are: i) determination of the level of output by the principle of effective demand; (ii) differentiated savings propensities of capitalists and workers; iii) mark-up pricing; iv) investment decision based on Minsky´s two price theory; v) importance of firms´s capital structure over the level of aggregate investment; (vi) inflation based on distributive conflict between capitalists and workers; (vii) endogenous money and (ix) endogenous technical progress. The computational simulations of the model reproduce some important features of capitalist dynamics as "cyclical growth" - i. e.; irregular but bounded fluctuations of the growth rate of real GDP -; the occurrence of a single Great Depression over the entire simulation period, what resembles the "rare" nature of great crises in the history of capitalism. The computational simulation also shows that a big reduction in inflation rate in a short period spam will be accompanied by a great financial fragility of productive firms, which, sooner or latter, will generate a great depression. As a corollary of these results follows that the Central Bank should conduct monetary policy in a way to avoid very rapid reduction in inflation rate. |
| JEL: | O41 O11 E12 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2005:056&r=pke |
| By: | Fernanda Cardoso; Gilberto Tadeu Lima |
| Abstract: | This paper is intended to underline the proximity between Keynes´s approach and the so-called complexity approach, which has been recently incorporated into economics. One of the central ideas of the complexity approach is that individual actions have unintended overall consequences as a result of a self-organization process, which in turn allows the functioning of the system. Keynes, in turn, played around with the idea of unintended consequences of individual actions, as his analysis of the paradox of parcimony testifies. However, it is argued that the complexity of the economy, from Keynes´s perspective, is firstly related to the complexity of human behavior. Besides, it is suggested that Keynes´s view of the economy as a complex organism was also born under the influence of the philosopher G. E. Moore. |
| JEL: | B19 B15 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:anp:en2005:007&r=pke |