nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2011‒12‒13
five papers chosen by
Karl Petrick
University of the West Indies

  1. NAIRU, Unemployment and Post Keynesian Economics By Vasiliki Bozani
  2. The return of Keynes By ciani scarnicci, manuela
  3. Sustainability and the Problem of Consumption By Ulrich Witt
  4. Cities and Green Growth: A Conceptual Framework By Stephen Hammer; Lamia Kamal-Chaoui; Alexis Robert; Marissa Plouin
  5. Demystifying Sraffa’s Theory of Value in the Light of Arrow and Debreu By Nadeem Naqvi

  1. By: Vasiliki Bozani (University of Crete)
    Abstract: The purpose of this paper is to present the disadvantages from the use of NAIRU as the key instrument of monetary-policy making to restrain the upward tendency of unemployment. It argues that the development of NAIRU, the most widely known and used model in macroeconomic analysis, although has changed the whole structure of macroeconomic theory and policy significantly, its adoption is consistent with unemployment, instead of economic activity expansion. By setting at the center of analysis the persistently high levels of unemployment and questioning the NAIRU concept itself, this paper aims at signifying the incorrectness of the assumptions upon which NAIRU rests and determines employment policies, though are regarded as a priori given.
    Keywords: NAIRU, Unemployment, Capital, Capacity Utilization, Post Keynesian-Kaleckian economics
    JEL: E22 E24 E12
    Date: 2011–12–02
  2. By: ciani scarnicci, manuela
    Abstract: Skidelsky’s last work « The Return of the Master” gives a new perspective to his previous studies about J.M. Keynes. In this new light, he studies the Keynesian theories, no longer in the historical context in which they were developed, but using them to explain and to try to find a solution to modern economy. This work almost represents a denunciation towards the new economic theory system that loses sight of the importance of the uncertainty, and overestimated the value of currency, and have not considered other values such as ethics and morals.
    Keywords: the return of Keynes's Theory
    JEL: A13 A11
    Date: 2010–12
  3. By: Ulrich Witt
    Abstract: Strong growth in disposable income has inflated consumption to unprecedented, but not sustainable levels. In this process consumer behavior has been changing. To explain the driving forces of this development, the paper introduces a theory of evolving consumer preferences that is molded in an evolutionary paradigm. The theory allows to better assess how individual welfare would be directly affected by policy measures designed to make consumption sustainable. Such policy measures are likely to also trigger indirect welfare losses by negative employment effects. The policy debate therefore needs to pay attention to both direct and indirect welfare effects. As a concrete proposal a redesign of consumption taxes is discussed that accounts for both concerns.
    Keywords: consumption, preferences, growth, sustainability, satiation, welfare, consumption tax
    JEL: A D01 D03 D11 D62 H H24 Q01 Q38
    Date: 2011–12–06
  4. By: Stephen Hammer; Lamia Kamal-Chaoui; Alexis Robert; Marissa Plouin
    Abstract: This report examines the current state of knowledge about green growth in cities and outlines the key research questions and protocols that will guide the OECD Green Cities programme. It builds the case for an urban green growth agenda by examining the economic and environmental conditions that have pushed the green growth agenda to the forefront of policy debate and assessing the critical role of cities in advancing green growth. Section 1 lays the context for the paper, examining why green growth is important and how it can be defined in an urban context. Section 2 focuses on policies and tools that enable the transition to green growth in cities. It concludes with a proposal for a policy framework for an urban green growth agenda that is based on a set of hypotheses of desirable economic scenarios. Section 3 examines the main challenges to advancing an urban green growth agenda. It explores the roles that multi-level governance, measuring and monitoring tools and finance must play in delivering green growth in cities. The report concludes with suggestions for future research, including recommendations on how national policymakers responsible for regional and urban policies can advance an urban green growth agenda.
    Keywords: sustainable development, government policy, planning, global warming, regional, regional economics, urban sustainability, territorial, cities, urban, green growth, climate
    JEL: O1 O3 Q1 Q2 Q3 Q4 Q5 R1 R4 R5
    Date: 2011–12–06
  5. By: Nadeem Naqvi (University of Giessen)
    Abstract: This paper compares the models of Arrow and Debreu [1954] and Sraffa [1960], and concludes that (1) the models are informationally distinct conceptions of a capitalist economy, (2) they support radically distinct – though complete and entirely correct – theories of value, (3) the prices in the two theories are different both in terms of definitions and values, (4) in Sraffa‘s model it is impossible to define constant returns to scale, while in Arrow-Debreu this property is admissible, and (5) in Arrow-Debreu the interpersonal income distribution is determined whereas in Srafa‘s model the distribution of income between workers and capitalists is undetermined.
    Keywords: constant returns to scale, theory of value, relations of production, counterfactual information, prices, exchange values, income distribution, general equilibrium, capital, marginal product
    Date: 2011

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.