nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2009‒08‒16
three papers chosen by
Karl Petrick
University of the West Indies

  1. Conversation or Monologue? On Advising Heterodox Economists By Matías Vernengo
  2. Hitting Bottom? An Updated Analysis of Rents and the Price of Housing in 100 Metropolitan Areas By Danilo Pelletiere; Hye Jin Rho; Dean Baker
  3. Understanding Social Inclusion, Social Cohesion and Social Capital By Robert Oxoby

  1. By: Matías Vernengo
    Abstract: This paper suggests that heterodox economists should not think of themselves as economists first, and only secondarily as heterodox, and must emphasize methodological issues, in particular the different assumptions (or axioms) implicit in their theories vis-à-vis the mainstream. The paper argues that the notion of a cutting edge of the mainstream, which is breaking up with orthodoxy, is misleading. The role of the cutting edge is to allow the mainstream to sound reasonable when talking about reality, while orthodoxy provides authority to the cutting edge. The cutting edge is essential for the mainstream and remains firmly based on orthodox grounds.
    Keywords: Methodology, Heterodox Economics
    JEL: B41 B59
    Date: 2009–09
  2. By: Danilo Pelletiere; Hye Jin Rho; Dean Baker
    Abstract: It has been two years since the housing bubble began to deflate. In this time, home prices in major metropolitan areas have fallen more than 32.3 percent and the woes in the housing sector have spread to the broader economy. Where is the housing market today? Have we hit bottom? This paper, written by researchers from the Center for Economic and Policy Research and the National Low Income Housing Coalition, finds that while most of the nation’s metropolitan housing bubbles have deflated and many markets never had one to contend with, there is the possibility of a persistent housing slump in the years ahead. An appropriate response to this situation involves 1) stimulating demand for housing by acting to lower unemployment and raise wages, 2) recognizing a leading role for rental housing in federal foreclosure mitigation and neighborhood stabilization policy, including allowing foreclosed homeowners to remain in their homes as renters (Right to Rent), and 3) adequately funding the National Housing Trust Fund.
    Keywords: housing bubble, right to rent, affordable housing
    JEL: G G2 G21 G28 R R2 R21
    Date: 2009–08
  3. By: Robert Oxoby
    Abstract: The topics of social capital, social cohesion, and social inclusion are increasingly gaining interest in economics, sociology, and politics, particularly in regards to addressing poverty and designing related policies. Here, we seek to develop the connections and interdependencies between these related concepts. We offer a framework for understanding the differences between these concepts and how they fit together in individual decision making.
    Date: 2009–01–22

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