nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2006‒01‒01
four papers chosen by
Karl Petrick
Leeds Metropolitan University

  1. A Keynesian Model of Unemployment and Growth: Theory By John Cornwall
  2. Localized Learning and Social Capital: The Geography Effect in Technological and Institutional Dynamics By Mark Lorenzen
  3. Economic policy from an evolutionary perspective: the case of Finland By Ron A. Boschma; Markku Sotarauta
  4. Evolutionary urban transportation planning? An exploration By Luca Bertolini

  1. By: John Cornwall (Department of Economics, Dalhousie University)
    Abstract: The main objective of the paper is to extend the basic model of Keynes's General Theory to explain medium and long-run economic performance in developed capitalist economies. In this way we seek to deepen our understanding of the macro economic processes that account for differences in macro performance over time and between economies at similar stages of their economic development. It naturally starts from a conviction that Keynes's original model of short-run economic fluctuations is the appropriate foundation for further macroeconomic research. In the process of extending the traditional Keynesian model we frequently compare our views with those of the mainstream macroeconomic theory.
    Date: 2005–12–22
  2. By: Mark Lorenzen
    Abstract: Providing a concise working definition of social capital, this conceptual paper analyses why social capital is important for learning and economic development, why it has a regional dimension, and how it is created. It argues that with the rise of the Knowledge Economy, social capital is becoming valuable because it organizes markets, lowering business firms’ costs of coordinating and allowing them to flexibly connect and reconnect. Thus, it serves as a social framework for localized learning in both breadth and depth. The paper suggests that a range of social phenomena such as altruism, trust, participation, and inclusion, are created when a matrix of various social relations is combined with particular normative and cognitive social institutions that facilitate cooperation and reciprocity. Such a matrix of social relations, plus facilitating institutions, is what the paper defines as “social capital”. The paper further suggests that social capital is formed at the regional (rather than national or international) level, because it is at this level we find the densest matrices of social relations. The paper also offers a discussion of how regional policies may be suited for promoting social capital.
    Keywords: Social capital; knowledge economy; regional dimension
    JEL: D83 Z13
    Date: 2005
  3. By: Ron A. Boschma; Markku Sotarauta
    Abstract: In the last decade, the Finnish economy has shown an unprecedented recovery, after being hit by a deep crisis in the early 1990s. The paper views and interprets this successful transformation process based on ICT from an evolutionary perspective. Although the rapid pace of the restructuring of the Finnish economy suggests a break with the past, this remarkable recovery was firmly rooted in its economic history. In addition, Finnish public policy played its role in turning Finland into a knowledge economy. Although a master plan for the Finnish economy was lacking, many policies worked out quite well together over an extended period. Building on education, research and technology policy initiatives taken in the 1970s and 1980s, the deep economic crisis in the early 1990s paved the way for new policy directions, with a focus on network-facilitating innovation policies.
    Keywords: evolutionary economics, economic geography, innovation policy, Finnish economy, Finnish policy, ICT cluster
    Date: 2005–08
  4. By: Luca Bertolini
    Abstract: For urban transportation planners these are challenging times. Mounting practical concerns are mirrored by more fundamental critiques. The latter come together in the observation that conventional approaches do not adequately account for the irreducible uncertainty of future developments. The central aim of this paper is to explore if and how an evolutionary approach can help overcome this limit. Two core-hypotheses are formulated. The first is that the urban transportation system behaves in an evolutionary fashion. The second hypothesis is that because of this, urban transportation planning needs also to focus on enhancing the resilience and adaptability of the system. Changes in transport and land use development patterns and policies and in the broader context in the post-war period in the Amsterdam region are analysed in order to illustrate the two core-hypotheses. In the conclusions more general implications are drawn.
    Keywords: evolutionary economics, urban economics, transportation planning
    Date: 2005–09

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