nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2008‒05‒17
four papers chosen by
Karl Petrick
University of the West Indies

  1. Economic growth in Latin America: Evidence from a Kaldorian perspective By Carton, Christine
  2. The need of Heterodox theories for a marriage between history and economics By Marongiu, Federico
  4. Models in evolutionary economics and environmental policy: Towards and evolutionary environmental economics By Albert Faber; Koen Frenken

  1. By: Carton, Christine
    Abstract: This paper analyzes an alternative theoretical framework in qualifying concrete growth phenomenon in Latin American region, based on the Kaldorian idea of cumulative causation. The latter is developed through two substantial mechanisms: a causal link between demand constraint and production growth, due to exportation dynamics, and a process of interaction between growth of production and growth of productivity, known as the “Kaldor-Verdoorn” law. The kaldorian growth model has been empirically tested for 16 economies over the period 1961 to 2005, with the adoption of the panel data approach. This yields findings quite conclusive insofar as positive correlations and expected values of parameters are corroborating both mechanisms. Moreover, the Granger procedure suggests bidirectional causality between growth of productivity and expansion of output. These results seem to be robust enough to make us believe that the Kaldorian growth model is appropriate in characterizing Latin American growth while cumulative causation appears to play a significant role in the region.
    Keywords: America Latina;Crecimiento economico;Exportaciones;Ley KV;Datos en panel
    JEL: O41 O54 B59 C33
    Date: 2008–02–02
  2. By: Marongiu, Federico
    Abstract: This paper shows how economic theory and history can be matched with the use of heterodox theories. This matching between history and economics is needed for a better comprehension of reality. Cliometrics, regulationism, institutional economics are some of the tentative approaches that have been used. The use of only orthodox theories is not enough for an understanding of multiple economic phenomena arising in the real world.
    Keywords: heterodox;theory;regulationism;institutional economics;cliometrics
    JEL: B10 B52 A20 N00 B25
    Date: 2008–02
  3. By: Drakopoulos, Stavros A.
    Abstract: Theories of social comparison have a long presence in the social sciences and have provided many useful insights. In economics, the idea of comparison, aspiration or relative income belongs to this theoretical framework. The first systematic usages of this idea can be found in the works of Keynes and Duesenberry. After these works the concept was relatively ignored by orthodox theorists until its recent re-appearance mainly in the fields of labour and macroeconomics. To the contrary, however, income comparisons continued to play a role in much of Keynesian inspired and Behavioural economics literature. In the last few years it has made a strong comeback in the literature of job satisfaction and of the economics of happiness. This paper attempts to trace the development of the concept in the modern history of economic thought. It also discusses the main theoretical implications of adopting income comparisons and possible reasons for its relative disregard by orthodox economics.
    Keywords: Relative Income; History of Economic Thought; Wages
    JEL: D31 B20 J30
    Date: 2008–05–12
  4. By: Albert Faber; Koen Frenken
    Abstract: In this paper we review evolutionary economic modelling in relation to environmental policy. We discuss three areas in which evolutionary economic models have a particularly high added value for environmental policy-making: the double externality problem, technological transitions and consumer demand. We explore the possibilities to apply evolutionary economic models in environmental policy assessment, including the opportunities for making policy-making endogenous to environmental innovation. We end with a critical discussion of the challenges that remain.
    Date: 2008–04

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