nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2009‒07‒03
five papers chosen by
Karl Petrick
University of the West Indies

  1. After Hubris, Smoke and Mirrors, The Downward Spiral: Financial and real markets pull each other down; how can policy reverse this? By Edward Nell and Willi Semmler
  2. Taking Absurd Theories Seriously 3 essays on Rational Choice Theory and Welfare Analysis By Røgeberg, Ole Jørgen
  3. A New Debt Crisis? Assessing the impact of the financial crisis on developing countries By Sarah Edwards
  4. Social Ecological Economics By Clive L Spash
  5. The ABCs of Global Warming By Robert Shelburne

  1. By: Edward Nell and Willi Semmler (New School for Social Research, New York, NY)
    Keywords: financial crisis; real estate bubble; recession
    Date: 2009–05
  2. By: Røgeberg, Ole Jørgen (Ragnar Frisch Centre for Economic Research)
    Abstract: The effects of public policies on the welfare of different groups in society are in many cases unclear. Economists often study such effects through welfare analyses based on a mathematical model of an individual decision maker. I show for the case of Rational Addiction theory that we have both theoretical and empirical reasons to think that the model fails to reflect the welfare of real people. I argue that the acceptance and standing of the theory is due to a failure to apply relevant criteria when evaluating such welfare analyses, that this failure makes the profession take absurd theories seriously, and that such welfare analyses should therefore be treated with scepticism and great care.
    Keywords: Welfare Analysis; Rational Choice; Rational; Addiction; Gary Becker; Jon Elster
    JEL: I18
    Date: 2009–06–14
  3. By: Sarah Edwards
    Abstract: This report is intended as a wake-up call to anyone who thinks the developing world debt crisis has been resolved. In fact, it assesses fears of a new debt crisis, more serious than before, spreading to nearly 40 countries. 38 of the 43 countries that the World Bank calculates are most vulnerable to the economic crisis already required substantial debt cancellation before the current crisis, in order to meet the needs of their people. As their situation considerably worsens, many more countries could join them. The solution lies in far-reaching reforms of the global economy which would ensure more responsible, sustainable and just lending whilst also reducing the dependence of developing countries on international capital
    Keywords: international debt, international capital, global economy, global economic reforms, World Bank, developing country debt, IMF, International Monetary Fund, international finance, Economics
    Date: 2009
  4. By: Clive L Spash (CSIRO Sustainable Ecosystems, Australia)
    Abstract: This paper introduces and explains how ecological economics has developed as a modern movement with its roots in environmentalism and radical environmental economics. Divisions and conflicts within the field are explored to show why material claiming to fall under the title of ecological economics fails to be representative of progress or the vision which drove socio-economic specialists to interact with ecologists in the first place. The argument is then put forward that ecological economics, as a social science engaging with the natural sciences, is a heterodox school of modern political economy.
    Keywords: Ecological economics, methodology, ideology, politics, history
    JEL: B0 B59 Q57
    Date: 2009–06
  5. By: Robert Shelburne (United Nations Economic Commission for Europe)
    Abstract: This essay provides a broad methodological framework for thinking about what is needed policy-wise for addressing climate change due to increased carbon emissions. Climate change will require mankind to decide whether it is best to adapt to higher temperatures or attempt to mitigate the increase by drastically reducing emissions of carbon dioxide into the atmosphere. The optimal choice is to minimize the sum of the adaptation and mitigation costs; it is argued that much more needs to be done to reduce carbon emissions and thus the focus should be on mitigation activities. This, however, will require a considerable amount of technological advancement and the creation of a global institutional mechanism to manage the process; an attempt is made to explain what is going to be required regarding both of these.
    Keywords: Climate change, global warming,
    JEL: Q50 Q52 Q54 Q58
    Date: 2009–01

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