nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2009‒04‒25
eleven papers chosen by
Karl Petrick
University of the West Indies

  1. Re-specifying the Keynesian Income-Expenditure Model to Properly Account for Imports: Implications for Fiscal Policy By Thomas Palley
  2. What is Driving Global Deflation and How Best to Fight It? By Korkut Ertürk
  3. Financialization and the Dynamics of Offshoring in the U.S. By William Milberg and Deborah Winkler
  4. Economic Growth and Climate Change: Cap-And-Trade or Emission Tax? By Edward Nell, Willi Semmler, and Armon Rezai
  5. Global Warming and Economic Externalities By Armon Rezai, Duncan K. Foley, and Lance Taylor
  6. The Decline of Traditional Banking and Endogenous Money By Korkut Erturk and Gokcer Ozgur
  7. Economic Insecurity in the New Wave of Globalization By William Milberg and Deborah Winkler
  8. Military Spending and Development By J Paul Dunne; Mehmet Uye
  9. Financial Liberalisation and Political Variables: a response to Abiad and Mody By Brian Burgoon; Panicos Demetriades; Geoffrey R D Underhill
  10. Listen Up Economists,Why Might History Matter for Development Policy? By Ravi Kanbur
  11. Journal rankings in economics: handle with care By Howard J. Wall

  1. By: Thomas Palley (New School for Social Research, New York, NY)
    Keywords: income; expenditure model; multiplier; imports; fiscal policy
    Date: 2009–02
  2. By: Korkut Ertürk (New School for Social Research, New York, NY)
    Keywords: financial markets; economic crisis; stimulus
    Date: 2009–03
  3. By: William Milberg and Deborah Winkler (New School for Social Research, New York, NY)
    Keywords: offshoring; financialization; profit share
    Date: 2009–02
  4. By: Edward Nell, Willi Semmler, and Armon Rezai (New School for Social Research, New York, NY)
    Keywords: economic growth; climate change
    Date: 2009–02
  5. By: Armon Rezai, Duncan K. Foley, and Lance Taylor (New School for Social Research, New York, NY)
    Keywords: global warming; climate change
    Date: 2009–02
  6. By: Korkut Erturk and Gokcer Ozgur (New School for Social Research, New York, NY)
    Keywords: banking; endogenous money; financial intermediation
    Date: 2009–02
  7. By: William Milberg and Deborah Winkler (New School for Social Research, New York, NY)
    Keywords: financial crisis; globalization
    Date: 2009–02
  8. By: J Paul Dunne (Department of Economics, British University in Egypt and UWE, Bristol); Mehmet Uye (Department of Economics, UWE, Bristol)
    Abstract: This paper considers the link between arms spending and economic growth for developing countries, in particular whether high spending on arms is likely to have a negative effect on economic growth and what benefits that might be gained by reducing it. The literature is complex and difficult to summarize, with studies differing theoretically, in the empirical methods they use, in the coverage of countries and time series, and in their quality and significance. Nevertheless, the paper argues that the empirical analyses suggests that there is little or no evidence for a positive effect on economic growth and that it is more likely to have a negative effect, or at best no significant impact at all. Thus, reducing arms and military spending need not be costly and can contribute to, or at the very least provide the opportunity for, improved economic performance in developing countries.
    Keywords: Military Spending; Development; growth
    JEL: H56 O1
    Date: 2009–02
  9. By: Brian Burgoon (University of Amsterdam); Panicos Demetriades (University of Leicester); Geoffrey R D Underhill (University of Amsterdam)
    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: 2008–05
  10. By: Ravi Kanbur
    Abstract: History matters, and it matters in important and interesting ways for policy today. But it is not just actual events in the past. It is how they are recorded, interpreted, and the interpretation transmitted, that matters. This is what determines the mental makeup, the preferences in economists’ terminology, of agents in the economy. That is the causal mechanism. It is the embedding of the past in the present’s perception of policy that is the transmission mechanism linking history to today’s development policy.
    Keywords: History, Economics, development policy, historical events, economic agents,
    Date: 2009
  11. By: Howard J. Wall
    Abstract: Nearly all journal rankings in economics use some weighted average of citations to calculate a journal's impact. These rankings are often used, formally or informally, to help assess the publication success of individual economists or institutions. Although ranking methods and opinions are legion, scant attention has been paid to the usefulness of any ranking as representative of the many articles published in a journal. First, because the distributions of citations across articles within a journal are seriously skewed, and the skewness differs across journals, the appropriate measure of central tendency is the median rather than the mean. Second, large shares of articles in the highest-ranked journals are cited less frequently than typical articles in much-lower-ranked journals. Finally, a ranking that uses the h-index is very similar to one that uses total citations, making it less than ideal for assessing the typical impact of articles within a journal.
    Keywords: Economics
    Date: 2009

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