nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2008‒11‒04
nine papers chosen by
Karl Petrick
University of the West Indies

  1. The Need for an Economic Stimulus Package By Heather Boushey
  2. Consumption, sentiment, and economic news By Martha Starr
  3. Post-Keynesian Models of Economic Growth: Open Systems By Ghosh, Dipak
  4. Would a North American monetary union protect Canada and Mexico against the ravages of “Dutch disease”? By Robert A. Blecker; Mario Seccareccia
  5. "Will the Paulson Bailout Produce the Basis for Another Minsky Moment?" By Jan Kregel
  6. Helping women respond to the global food price crisis: By Quisumbing, Agnes; Meinzen-Dick, Ruth Suseela; Bassett, Lucy; Usnick, Michael; Pandolfelli, Lauren; Morden, Cheryl; Alderman, Harold
  7. The new articulation of wages, rent and profit in cognitive capitalism By Carlo Vercellone
  8. Workers behavior and labor contract : an evolutionary approach By Victor Hiller
  9. The development promise: Can the doha development agenda deliver for least developed countries? By Berisha-Krasniqi, Valdete; Bouet, Antoine; Laborde, David; Mevel, Simon

  1. By: Heather Boushey
    Abstract: This policy proposal outlines a substantial economic stimulus package needed to address the recent downturn in the U.S. economy. This stimulus package details steps to create jobs, provide economic support and lessen the effects of a weakening economy.
    Keywords: fiscal stimulus, housing bubble, recession
    JEL: H50 H30 E62 E32 O51
    Date: 2008–01
  2. By: Martha Starr
    Abstract: This paper investigates the influence of economic news on consumer sentiment, and examines whether ‘news shocks’ –- changes in coverage that would not be expected from incoming data on economic fundamentals -– have aggregate effects. Using monthly U.S. data and a structural vector-autoregression, I find that (1) sentiment is affected by news shocks, (2) after filtering out effects of news shocks, shocks to sentiment still have positive effects on consumer spending, and (3) news shocks influence both spending and unemployment in significant, though transitory ways. These results are consistent with other evidence of a role of non-fundamental factors in aggregate fluctuations.
    Keywords: Consumption, consumer sentiment, economic news, aggregate fluctuations
    JEL: E21 D12 E32
    Date: 2008–09
  3. By: Ghosh, Dipak
    Abstract: The closed systems nature of neoclassical models of economic growth - guaranteeing automatic equality between planned savings and investment which, in turn, ensures stability of such models - is achieved by assuming away the existence of uncertainty inherent in economic systems. Once the role of Keynesian uncertainty is acknowledged, the assumption of automatic equality between ex-post savings and ex-ante investment becomes untenable. This paper attempts to show that once this possibility of planned savings and investment inequality is incorporated in an otherwise essentially neoclassical model of economic growth, its closed system nature disappears and the model metamorphoses itself into an open system.
    Keywords: Keynesian uncertainty; technical progress function; Harrodian instability; growth and instability; closed systems; open systems
    Date: 2008–06
  4. By: Robert A. Blecker; Mario Seccareccia
    Abstract: After the formation of the North American Free Trade Agreement (NAFTA) in 1994, enthusiasts of regional integration in North America turned their attention to “deeper” forms of integration, especially a customs union or monetary union.1 Interest in proposals for deeper integration peaked around the turn of the new millennium, both north of the 49th parallel and south of the Rio Grande (Río Bravo). Although the unilateralist turn of US foreign policy under President George W. Bush since 2001 has lessened enthusiasm for deeper integration with the US in both Canada and Mexico, these sorts of proposals remain “in the air” and could easily be revived by future North American governments.
    Date: 2008–07
  5. By: Jan Kregel
    Abstract: As the House Committee on Financial Services meets to hear the expert testimony of witnesses concerning the regulation of the financial system, the measures that have been introduced to support the system are laying the groundwork for a new domestic financial architecture. Hyman Minsky suggests that the basic principle behind any reformulation of the regulatory system should limit the size and activities of financial institutions, and should be dictated by the ability of supervisors, examiners, and regulators to understand the institutions' operations. Following Minsky's preference for bank holding company structures, Senior Scholar Jan Kregel proposes the creation of numerous types of subsidiaries within the holding company. The aim would be to limit each type of holding company to a range of activities that were sufficiently linked to their core function and to ensure that each company was small enough to be effectively managed and supervised.
    Date: 2008–10
  6. By: Quisumbing, Agnes; Meinzen-Dick, Ruth Suseela; Bassett, Lucy; Usnick, Michael; Pandolfelli, Lauren; Morden, Cheryl; Alderman, Harold
    Abstract: "The current food price crisis has received widespread attention, but discussions to date have largely overlooked the gender dimensions of the crisis. More than 15 years of rigorous research on gender and intrahousehold resource allocation suggest not only that men and women will be affected differently by the global food crisis, but also that, as both consumers and producers, they will have different stocks of resources with which to respond to rising prices. Although the current situation calls for an urgent national and international response, urgency is not an excuse for misguided policies that fail to address the gender implications of the crisis. Instead, decisionmakers should take this opportunity to incorporate what is known about women's roles in agricultural production and household welfare, and the specific challenges they face, both to craft more effective policy responses and to enable women to respond better to the current challenges and opportunities." from Author's text
    Keywords: Food prices, Women, Gender, Social protection, Female farmers,
    Date: 2008
  7. By: Carlo Vercellone (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: In the transition toward a cognitive capitalism, the transformations of the social organisation of production are strictly connected to those of income distribution. This evolution is deeply characterised by the re-emerging of the rent under different forms. The aim of this article is to provide a marxist interpretation of these mutations and their social and economic implications. The analysis is organised in two sections. In the first section we are going to examine the definitions of the categories of wages, rent and profit, and claim that the lines separating rent from profit are flexible and mobile both theoretically and historically. To illustrate this point we rely on suggestions found in Marx's Capital volume III, where he drafts a theory of the becoming-rent of capital that provides new insights into the related theory of the general intellect. In the second section, we will provide a synthetic framework for the interpretation of transformations of the labour-capital relation that led simultaneously to an increase in the power of rent and the collapse of a distinction between rent and profit in the transition from industrial to cognitive capitalism.
    Keywords: Income distribution, Wage, Rent, Profit, General intellect, Cognitive capitalism
    Date: 2008–02–29
  8. By: Victor Hiller (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: This article investigates the co-evolution of labor relationships and workers preferences. According to recent experimental economics findinggs on social preferences, the workforce is assumed to be heterogeneous. It is composed by both cooperative and non-cooperative workers. In addition, firms differ by the type of contract they offer (explicit or implicit). Finally, both the distribution of preferences and the degree of contractual completeness are endogeneized. Preferences evolve through a process of cultural transmission and the proportion of implicit contracts is driven by an evolutionary process. The complementarity between the transmission of cooperation and the implementation of implicit contracts leads to multiple equilibria which allow for path-dependence. This property is illustrated by the evolutions of American and Japanese labor contracts during the Twentieth century.
    Keywords: Explicit contract, implicit contract, cultural transmission, preferences for reciprocity, path dependence.
    Date: 2008–04
  9. By: Berisha-Krasniqi, Valdete; Bouet, Antoine; Laborde, David; Mevel, Simon
    Abstract: "The benefits least-developed countries (LDCs) can draw from a multilateral trade reform as designed by the modalities made public in May 2008 are negligible, and some countries will even face adverse effects. World Trade Organization (WTO) negotiators should make a supplementary effort in favor of the poorest countries. The Duty-Free Quota-Free (DFQF) Initiative moves in the right direction, but it should be extended not only from a product point of view—with a 100, not 97, percent application—but also in terms of geographic coverage. This initiative has to be supported by both Organisation for Economic Co-operation and Development (OECD) and BrIC (Brazil, India, and China) countries. It is in the interests of Asian LDCs to prioritize full openness of OECD markets (a 100-percent DFQF regime) and full access to the U.S. market in particular, while African countries will draw more benefits from a geographic extension of this regime to BrIC countries." from Text
    Keywords: Trade reform, Doha Development Agenda, Least developed countries, World Trade Organization Developing countries,
    Date: 2008

This nep-pke issue is ©2008 by Karl Petrick. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.