nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2011‒05‒07
four papers chosen by
Karl Petrick
University of the West Indies

  1. The Scorecard on Development, 1960-2010: Closing the Gap? By Mark Weisbrot; Rebecca Ray
  2. Representative Ryan’s $30 Trillion Medicare Waste Tax By David Rosnick; Dean Baker
  3. Ethnic Diversity in Malaysia-Lessons Learned from Bio-Diversity Research By Evers, Hans-Dieter; Anis, Yusuf; Shamsul, A.B.
  4. Diversity and Technological Progress By Daron Acemoglu

  1. By: Mark Weisbrot; Rebecca Ray
    Abstract: This paper is the third installment in a series (the first and second editions were in 2001 and 2005) that traces a long-term growth failure in most of the world's countries.
    Keywords: development, globalization, GDP,
    JEL: F1 F2 F33 F34 I12 I18 O47 O54 O57 E6 E52
    Date: 2011–04
  2. By: David Rosnick; Dean Baker
    Abstract: Representative Ryan’s proposal to replace the current Medicare systemwith a system of vouchers or premium supports has been widely described as shifting costs from the government to beneficiaries. However, the size of this shift is actually small relative to the projected increase in costs that would result from having Medicare provided by private insurers instead of the government-run Medicare system. The Congressional Budget Office’s (CBO) projections imply that the Ryan plan would add more than $30 trillion to the cost of providing Medicare equivalent policies over the program’s 75-year planning period. This increase in costs – from waste associated with using a less efficient health care delivery system – has not received the attention that it deserves in the public debate.
    Keywords: Medicare, Ryan, budget
    JEL: E E6 E62 I I1 I18 H H5 H51 H6 H63 H68
    Date: 2011–04
  3. By: Evers, Hans-Dieter; Anis, Yusuf; Shamsul, A.B.
    Abstract: Biology and Anthropology/Sociology have dealt with issues of diversity for a long time,developing different concepts, theories and methods. In recent years there has been, if not a convergence, but at least a recognition that problems in nature and in society are interrelated. This paper attempts to use methods of biodiversity research and test their applicability for a study of ethnic relations. It is noted that the preservation of biodiversity ranks high on the agenda of researchers and politicians, whereas ethnic diversity is often associated with unrest, conflict and economic decline. We try to reverse this tendency by emphasizing social cohesion and the social and economic value of ethnic diversity. An “ethnic diversity index” is developed and proposed for further analysis of Malaysia’s plural society. This index is based on Simpson’s diversity index, commonly used in biodiversity research. Furthermore research on the interrelation of bio- and ethnic diversity is advocated.
    Keywords: Malaysia; ethnic diversity;bio-diversity;economic value of diversity; economic development
    JEL: O11 Z1 O2 O15
    Date: 2010–12–14
  4. By: Daron Acemoglu
    Abstract: This paper proposes a tractable model to study the equilibrium diversity of technological progress and shows that equilibrium technological progress may exhibit too little diversity (too much conformity), in particular, foregoing socially beneficial investments in “alternative” technologies that will be used at some point in the future. The presence of future innovations that will replace current innovations imply that social benefits from innovation are not fully internalized. As a consequence, the market favors technologies that generate current gains relative to those that will bear fruit in the future; current innovations in research lines that will be profitable in the future are discouraged because current innovations are typically followed by further innovations before they can be profitably marketed. A social planner would choose a more diverse research portfolio and would induce a higher growth rate than the equilibrium allocation. The diversity of researchers is a partial (imperfect) remedy against the misallocation induced by the market. Researchers with different interests, competences or ideas may choose non-profit maximizing and thus more diverse research portfolios, indirectly contributing to economic growth.
    JEL: C65 O30 O31 O33
    Date: 2011–04

This nep-pke issue is ©2011 by Karl Petrick. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.