nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2010‒03‒06
three papers chosen by
Karl Petrick
University of the West Indies

  1. A Philosophical Perspective on Contemporary Evolutionary Economics By Geoffrey M. Hodgson
  2. Modelling a Housing and Mortgage Crisis By Alexandros Vardoulakis; Dimitrios Tsomocos; Charles Goodhart
  3. On Dividend Restrictions and the Collapse of the Interbank Market By Dimitrios Tsomocos; Charles Goodhart; M.U. Peiris; Alexandros Vardoulakis

  1. By: Geoffrey M. Hodgson
    Abstract: There has been a remarkable growth in evolutionary economics since the 1980s. But despite this outward success there has been inner disagreement on fundamental issues including the building blocks of evolutionary theory and the very meaning of ‘evolution’ itself. This essay provides a philosophical perspective on both the defining agreements and ongoing disputes within evolutionary economics. Its primary emphasis is on ontology. It shows that some major disputes derive not from incompatible propositions but the choice of different levels of analysis. A route toward reconciliation of different viewpoints is thus exposed.
    Keywords: Length 20 pages
    Date: 2010–02
  2. By: Alexandros Vardoulakis; Dimitrios Tsomocos; Charles Goodhart
    Abstract:  The purpose of this paper is to explore financial instability in this case due to a housing crisis and defaults on mortgages. The model incorporates heterogeneous banks and households. Mortgages are secured by collateral, which is equal to the amount of housing which agents purchase. Individual default is spread through the economy via the interbank market. Several comparative statics illustrate the directional effects of a variety of shocks in the economy.
    Date: 2010–02
  3. By: Dimitrios Tsomocos; Charles Goodhart; M.U. Peiris; Alexandros Vardoulakis
    Abstract: Until recently, financial services regulation remained largely segmented along national lines. The integration of financial markets, however, calls for a systematic and coherent approach to regulation. This paper studies the effect of market based regulation on the proper functioning of the interbank market. Specifically, we argue that restrictions on the payout of dividends by banks can reduce their expected default on (interbank) loans, stimulate trade in this market and improve the welfare of consumers.
    Date: 2010–02

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