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on Post Keynesian Economics |
| By: | Andrew Mearman (Department of Economics, University of the West of England) |
| Abstract: | This paper conducts a type of meta-analysis of a sample of commentaries on heterodox economics, also drawing on biological literature and other treatments of classification. The paper contrasts what might be called a ‘classical’ category with a ‘modern’ category and then analyses treatments of HE as a category. It is argued that though HE appears to be a complex object – and that authors recognise this – HE as a category is most often classical even though modern would appear more appropriate. That this is the case may reflect choices of levels of abstraction which in turn reflect instrumental purposes of influencing the reality of Economics. While arguments for the rejection of HE as a category are too strong, current treatments of HE are perhaps not careful enough in recognising its provisional and fluid nature. The paper considers these issues in turn. |
| Keywords: | heterodox economics, taxonomy, complexity, meta-analysis |
| JEL: | B4 B5 Z13 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:uwe:wpaper:1006&r=pke |
| By: | Jan Kregel |
| Abstract: | The use of government fiscal stimulus to support the economy in the recent economic crisis has brought increases in government deficits and increased government debt. This has produced an interest in sustainable government debt and the role of deficits in the economy. This paper argues in favor of a concept of "responsible" government policy, referring to positions held by Franklin and Marshall Professor Will Lyons. The idea is that government should be responsible to the needs and desires of its citizens, but that this should go beyond physical security and education, to economic security. Building on the fallacy of composition and misplaced concreteness, it suggests that in an integrated macro system an increased desire to save on the part of the private sector will be self-defeating unless the government acts in a responsible manner to support those desires. This can only be done by government dissaving via an expenditure deficit. The outstanding government debt simply represents the desires of the public to hold safe financial assets, and can only be unsustainable if the public’s desires change. The government should always be responsive to these desires, and adjust its expenditure policy. |
| Keywords: | Deficit Spending; Sustainable Deficits; Responsible Fiscal Policy; Will Lyons |
| JEL: | E61 E62 H31 H62 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_602&r=pke |
| By: | J Paul Dunne (Department of Economics, University of the West of England); Ron P. Smith (Birkbeck College, University of London) |
| Abstract: | A large literature has used tests for Granger (1969) non-causality, GNC, to examine the interaction of military spending with the economy. Such tests answer a specific though quite limited question: can one reject the null hypothesis that one variable does not help predict another? If this null is rejected, there is said to be Granger causality, GC. Although the limitations of GNC tests are well known, they are often not emphasised in the applied literature and so may be forgotten. This paper considers the econometric and methodological issues involved and illustrates them with data for the US and other countries. There are three main issues. First, the tests may not be informative about the substantive issue, the interaction of military expenditure and the economy. The difficulty is that Granger causality, incremental predictability, does not correspond to the usual notion of economic causality. To determine the relationship of the two notions of causality requires an identified structural model. Second, the tests are very sensitive to specification. GNC testing is usually done in the context of a vector autoregression, VAR, and the test results are sensitive to the variables and deterministic terms included in the VAR, lag length, sample or observation window used, treatment of integration and cointegration and level of significance. Statistical criteria may not be very informative about these choices. Third, since the parameters are not structural, the test results may not be stable over different time periods or different countries. |
| Keywords: | Military Spending; economic growth; causality; VAR conflict-affected states |
| JEL: | H56 C01 O40 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:uwe:wpaper:1007&r=pke |
| By: | Gerard Caprio (Williams College) |
| Abstract: | The current crisis is leading many to re-think the role of finance and how it snew. This paper reviews what was regarded as the conventional wisdom on financial regulation prior to the 2007 onset of the crisis, briefly recounts some of the main factors behind the events of the 2007-09 years, and then turns to lessons for regulatory reform. At some point in the 1990s, the financial systems of high-income countries seemed to be functioning well and withstood some significant shocks, yet by 2007 much had changed. However, the regulatory structure did not change in response, and in fact eased in such a way as to exacerbate the instability that was subsequently experienced. A key theme is that financial regulation needs to be more dynamic, taking account of financial innovations and how they affect the sector. No such approach to regulation seems possible without greater accountability for regulators and attention to the incentives for those in the sector and for those who regulate it. |
| Keywords: | Financial crisis, Securitization, Regulation and Supervision, Safety Nets |
| JEL: | G21 G28 G32 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2009-05&r=pke |
| By: | Joseph Grady; Axel Aubrun; Lawrence Wallack; Lori Dorfman |
| Abstract: | This occasional publication series is part of the Social Equity and Opportunity Forum in the Dean’s Office of the College of Urban and Public Affairs. Directed by Janet Hammer, Ph.D., the Forum emphasizes the interconnectedness, interdependence, and shared values that are the connective tissue of our society while working to advance economic and social opportunity and reduce Inequality. |
| Keywords: | Social Equity, Opportunity, Forum, Urban, Public Affairs, emphasizes, interconnectedness, interdependence, shared values, advance, economic, social opportunity, reduce Inequality |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:2548&r=pke |