nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2008‒03‒01
four papers chosen by
Karl Petrick
University of the West Indies

  1. "Financial Flows and International Imbalances-- The Role of Catching-up by Late Industrializing Developing Countries" By Jan Kregel
  2. Can We Declare Military Keynesianism Dead? By Luca Pieroni; Giorgio d'Agostino; Marco Lorusso
  3. Teaching Economics Interactively: A Cannibal's Dinner Party By Ted Bergstrom
  4. A Behavioural Approach To Financial Puzzles By Marie-Hélène Broihanne; Maxime Merli; Patrick Roger

  1. By: Jan Kregel
    Abstract: While the traditional approach to the adjustment of international imbalances assumes industrialized countries at a similar level of development and with similar production structures, such imbalances have historically been the result of a process of catching up by late-industrializing developing countries. This may call for an alternative approach that assesses how they can be managed in order to support developing countries' efforts to achieve successful industrialization and integration into the global trade and financial system. In this light, the paper presents an alternative explanation of the existence and persistence of the currently high levels of imbalances and suggests reasons why they may persist in the medium term.
    Date: 2008–02
  2. By: Luca Pieroni (University of Perugia and UWE, Bristol); Giorgio d'Agostino (University of Perugia.); Marco Lorusso (University of Verona.)
    Abstract: This paper empirically tests the Keynesian hypothesis that government defence spending positively impacts on aggregate output, by using a long run equilibrium model for the US and the UK. Our contribution, with respect to previous works, is twofold. First, our inferences are adjusted for structural breaks exhibited by the data concerning fiscal and monetary variables. Second, we take into account different dynamics between defence spending on aggregate output, showing that the results are sensitive to sub-sample choices. Though the estimated elasticities in both countries show a lack of significance in the more recent years of the sample, defence spending priorities addressed to international security may revitalize pro-cyclical effects in the UK, by an industrial policy of defence shared with the EU members.
    Keywords: Military spending; output; long run models
    JEL: D12 H31 H4
    Date: 2008–02
  3. By: Ted Bergstrom (University of California, Santa Barbara)
    Abstract: This paper describes techniques that I use to teach economics principles "interactively". These techniques include classroom experiments and classroom clickers. The paper describes an experiment on market entry and gives examples of applications of classroom clickers. Clicker applications include the collection data about student preferences that can be used to construct demand curves and supply curves. Check on students' knowledge of central concepts. Play interactive games that illustrate economic concepts.
    Keywords: teaching economics, classroom clickers, classroom experiments, active learning,
    Date: 2007–10–26
  4. By: Marie-Hélène Broihanne; Maxime Merli; Patrick Roger (Laboratoire de Recherche en Gestion et Economie, Université Louis Pasteur)
    Abstract: Many financial puzzles have been solved, at least partially, by the introduction of alternative assumptions on the behaviour of investors. Cumulative prospect theory and mental accounting are two such approaches which are used in this paper to analyze some of the most important financial puzzles. We first focus our attention on anomalies (or considered as such in the standard expected utility model) at the individual level, for example the disposition effect or the low diversification puzzle. We then address two aggregate puzzles, namely the equity premium puzzle and the return predictability puzzle. We show how recent behavioral models allow to explain these anomalies in a very natural way.
    Date: 2008

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