nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2007‒04‒28
three papers chosen by
Karl Petrick
University of the West Indies

  1. Uncertainty and exploitation in history By Engelbert Stockhammer; Paul Ramskogler
  2. On the Interplay between Keynesian and Supply Side Economics By Karanassou, Marika; Snower, Dennis J.
  3. Experimental Economics: Contributions, Recent Developments, and New Challenges By Marie-Claire Villeval

  1. By: Engelbert Stockhammer (Department of Economics, Vienna University of Economics & B.A.); Paul Ramskogler (Department of Economics, Vienna University of Economics & B.A.)
    Abstract: The paper builds on the Marxist concept of exploitation to explore the meaning of the Post Keynesian notion of uncertainty. Uncertainty is mediated by institutions and is distributed unevenly among different social groups. As different historical social formations entail different institutional structures, the distribution and nature of uncertainty also differ. The configurations between class relations and uncertainty are analyzed for the capitalist, feudal and slave modes of production. It is demonstrated that modes of production do not only imply specific exploitative relations but also different relative distributions of uncertainty amongst classes. Joining Marxian and Post Keynesian approaches allows a richer understanding of exploitive relations and illuminates the full societal impact of uncertainty. It is shown that only in capitalism is the exploited class exposed to a substantial degree of economic uncertainty.
    JEL: B50 B51 N33 N34
    Date: 2007–04
  2. By: Karanassou, Marika (Department of Economics, Queen Mary and Westfield College, London, United Kingdom); Snower, Dennis J. (The Kiel Institute for the World Economy, Kiel, Germany)
    Abstract: Conventional wisdom suggests that nominal, demand-side shocks have only temporary effects on real macroeconomic magnitudes and that the duration of their effects depends on the degree of nominal inertia. It is also argued that, in the absence of unit roots, temporary supply-side shocks also have only temporary real affects and that the duration of these effects depends on the various sources of real inertia. Our analysis indicates that there is a potentially important interplay between real and nominal inertia in generating the persistent effects of real and nominal shocks. In this sense, then, Keynesian and supply-side economics are mutually interdependent. Our analysis has identified circumstances when real and nominal inertia are complementary in generating real and nominal persistence. Here, we argue, lies a potentially crucial, but as yet largely unexplored, set of determinants of the effectiveness of Keynesian and supply-side economic policies.
    Keywords: Unemployment, employment, wage setting, labour force participation, labour market dynamics, unemployment persistence, imperfect unemployment responsiveness
    JEL: J21 J23 J31 J64 J68
    Date: 2007–04
  3. By: Marie-Claire Villeval (GATE - Groupe d'analyse et de théorie économique - [CNRS : UMR5824] - [Université Lumière - Lyon II] - [Ecole Normale Supérieure Lettres et Sciences Humaines])
    Abstract: Although economics has long been considered as a non-experimental science, the development of experimental economics and behavioral economics is amazingly rapid and affects most fields of research. This paper first attempts at defining the main contributions of experiments to economics. It also identifies four main trends in the development of experimental research in economics. The third contribution of this paper is to identify the major theoretical and methodological challenges faced by behavioral and experimental economics.
    Keywords: behavioral economy ; Experimental economics ; field experiment ; quantitative methods
    Date: 2007–04–19

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