|
on Post Keynesian Economics |
| By: | Araujo, Ricardo; Trigg, Andrew |
| Abstract: | From a neo-Kaldorian perspective, this paper seeks to establish the concepts of demand and productivity regimes in an open version of the pure labour Pasinettian model. In order to derive the demand regime, a disaggregated version of the Keynesian multiplier is derived for an open economy, while the productivity regime is built in terms of disaggregated Kaldor-Verdoorn laws. The upshot is a multi-sector growth model of structural change and cumulative causation, in which an extended version of the Pasinettian model to foreign trade may be obtained as a particular case. Furthermore, we show that the evolution of demand patterns, while being affected by differential rates of productivity growth in different sectors of the economy, also play an important role in establishing the pace of technical progress. |
| Keywords: | Cumulative causation, structural change, Kaldor-Verdoorn law |
| JEL: | F12 O11 O3 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50370&r=pke |
| By: | Fabian Lindner |
| Abstract: | The paper presents a critique of loanable funds theory by using simple accounting relationships. It is shown that many economists identify saving and the credit supply by interpreting the macroeconomic saving-investment identity as a budget constraint. According to that interpretation, more saving through lower consumption (and government spending) leads to a higher supply of credit and thus more funds to be invested by firms for investment. The paper shows that proponents of this theory commit accounting fallacies or need very strong and somewhat peculiar assumptions for their theory to hold. In the first step, the concepts of \saving" and \credit" will be clearly distinguished using simple accounting. It will be shown that credit is not limited by anybody's saving and that no one has to abstain from consumption in order for a credit to be provided. Also, it will be shown that financial saving (an increase in net financial assets) through a reduction in expenses reduces other economic units' ability to spend and save. The identification of saving and the provision of credit is likely to stem from the invalid application of neoclassical growth models to a monetary economy. In those models, there are either only tangible assets, so that no coordination failures in financial saving can occur, or in those models real goods are lent and borrowed, not money. |
| Keywords: | Saving, Wealth, Investment, Production, Financial Markets |
| JEL: | E21 E22 E23 E44 E50 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:imk:wpaper:120-2013&r=pke |
| By: | Bruno Dorin (CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD], CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Michel Benoit-Cattin (CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD]) |
| Abstract: | This paper questions the Lewis Path perspective of a "world without agriculture" which underpins the "structural transformation" paradigm of "modern growth." It shows that the Lewis Path is only one of four potential structural paths, and that half of the world's population is spiralling into a "Lewis Trap" with more farmers and an increasing income gap between them and other workers. After showing how land constraints and the productivity dynamics outside agriculture might prevent this population from switching to a Lewis Path, it delineates the condition of an alternative path that would not transfer the disparity problem to cities. |
| Date: | 2013–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00866413&r=pke |
| By: | Shen, Chung-Hua (National Taiwan University and Southwest Chiao Tung University); Hasan, Iftekhar (Fordham University and Bank of Finland); Lin , Chih-Yung (National Taichung University of Science and Technology) |
| Abstract: | In this study, we reinvestigate the question of whether government banks are inferior to private banks. We use cross country data from 1993 to 2007 to trace the different types of government banks. These types comprise banks that acquire distressed banks, normal banks, or no banks at all. Contrary to common belief, the evidence shows that unless government banks are required to purchase a distressed bank because of political factors (the government’s role), their performances are at par with that of private banks. This fact particularly holds true in countries with poor records on political rights and governance. |
| Keywords: | government banks; political factor; government role; merger; distressed bank; institutional factor |
| JEL: | C23 G21 G28 G34 |
| Date: | 2013–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_015&r=pke |