nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2008‒09‒20
seven papers chosen by
Karl Petrick
University of the West Indies

  1. The principle of effective demand and the state of post Keynesian monetary economics By Colin Rogers
  2. Financial Liberalisation and Political Variables: a response to Abiad and Mody By Brian Burgoon; Panicos Demetriades; Geoffrey Underhill
  3. John R. Commons, Wesley N. Hohfeld and the Origins of Transactional Economics By Luca Fiorito
  4. Structural changes in economics during the last fifty years By Mishra, SK
  5. The Concept of Institution: Context and Meaning By Piet Keizer
  6. The Professional Development of Graduate Students in Economics By KimMarie McGoldrick; Gail Hoyt; Dave Colander
  7. The Economics Major and a Liberal Education By Dave Colander; KimMarie McGoldrick

  1. By: Colin Rogers (School of Economics, University of Adelaide)
    Date: 2008–09
  2. By: Brian Burgoon; Panicos Demetriades; Geoffrey Underhill
    Abstract: We challenge recent findings by Abiad and Mody (2005) which suggest that financial liberalization has little to do with political variables. This analysis is at odds with some of the established literature, and only with difficulty comes to terms with the considerable cross-national variation in the pace, phasing, and extent of financial reforms over time. Using Abiad and Mody's own index of financial liberalization, but slightly unbundling and refining their measures of 'ideological affinity' and 'regime type', we examine what Abiad and Mody call the 'triggers' of liberalisation and the dynamics of the subsequent 'cumulative transformation'. We demonstrate the role of political variables in relation to initial liberalisation episodes, and as variables affecting the cumulative dynamics and sustainability of ongoing financial reform processes, including those which affect the acceptability and costs of liberalization. These factors include (i) shifts to - as opposed to levels in - Left government; (ii) the incidence of Left governments combined with low levels of democracy; (iii) international voter support for free markets; (iv) the extent of social safety nets; (v) the presence of multilateral and bilateral aid programs. Our empirical investigation confirms these factors as statistically significant determinants of financial liberalization, and reveal what Abiad and Mody identify as 'learning' to be a highly political process.
    Date: 2008–09
  3. By: Luca Fiorito
    Abstract: The aim of this paper is to provide an assessment of John R. Commons’ adoption of Wesley N. Hohfeld’s framework of jural opposites and correlatives in order to construct his transactional approach to the study of institutions. Hohfeld’s influence on Commons, it is argued, was both positive and negative. On the one hand, Commons, followed Hohfeld and recognized that such concepts as property and inheritance actually represent an aggregation of numerous types of legal relations. Hohfeld’s schema provided a powerful rhetorical and analytical tool whereby these highly abstracts conceptions could be reduced to a limited number of primary elements. Moreover, Hohfeld’s schema appeared to be consistent with Commons’ general methodological and psychological commitments. On the other hand, Commons’ forging of “transaction” as the elementary unit of economic analysis can be seen as an attempt to go beyond Hohfeld. Commons was in fact unsatisfied with Hohfeld’s bi-lateral treatment of jural relations and with his neglect of the role played by state officials in enforcing transactions and, in so doing, in promoting specific individual interests as collective public policies
    JEL: B15 B25 B52 K10
    Date: 2008–07
  4. By: Mishra, SK
    Abstract: This essay portrays the major currents in recent economic thinking against the orthodoxy and dogmatism of neoclassical economics. It places behavioral economics, experimental economics, evolutionary economics, ecological economics, new institutional economics, agent-based computational economics and post-autistic economics vis-à-vis the classical and the neoclassical economics. It concludes that we may expect a synthesis of all these strands of economic thinking in the near future that will replace neoclassical economics from the citadel of mainstream. Teaching of these strands of new economics has already begun in many universities, although in an un-integrated manner. However, until the neoclassical microeconomics and macroeconomics are replaced by their alternatives and necessary as well as convincing tools of economic analysis are developed, neoclassicism would not give way to modern economics.
    Keywords: Behavioral; experimental; evolutionary; ecological; new institutional; agent-based computational; post-autistic; classical; neoclassical; economics; bounded rationality; heterodox; individualism; pluralism
    JEL: B20 B29 B25 B15
    Date: 2008–09–17
  5. By: Piet Keizer
    Abstract: When trying to understand what is meant by the concept of institution we must analyse the context in which institutions are assumed to play their role. In a typical economic analysis institutions are rules that serve the interests of economic-rational actors, and must enhance the efficiency of their actions. In a typical sociological analysis institutions are rules that serve the interests of social actors, and must enhance the formation of stable systems of hierarchically ranked groups. In the real world human behaviour also has a psychic aspect. In a typical psychological analysis institutions must promote the integration of different parts of a personality. This article assumes that in real life humans are driven by a composite of three categories of forces, namely the economic, the social and the psychic motive. Real life institutions have the function to mould these drives in such a way that economic, social and psychic goals can be reached more effectively. As a matter of illustration of this moulding process a short sketch of the emergence of the Dutch welfare state is given.
    Keywords: economic, sociological, psychological, institution, welfare state
    JEL: A12 B15 B41 B52
    Date: 2008–08
  6. By: KimMarie McGoldrick; Gail Hoyt; Dave Colander
    Abstract: This paper provides insight into the skill development activities of graduate students at U.S. institutions providing graduate education in economics. It documents the extent of student participation in and preparation for research and teaching activities while in graduate school. Over fifty percent of students are involved in teaching related activities including grading, leading recitation sections, and teaching their own sections with and without guidance. Most were generally satisfied with their preparation. About fifty-five percent of graduate students attend economic conferences, twenty percent present papers, twenty-two percent submit papers and ten percent have published. Important differences by assistantship assignments, institutional rank, and gender in such activities are highlighted. Findings suggest that programs could do more to prepare students for participation in professional activities post graduation.
    Date: 2008–11
  7. By: Dave Colander; KimMarie McGoldrick
    Date: 2008–12

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