nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2013‒12‒06
six papers chosen by
Karl Petrick
Western New England University

  1. Ending too big to fail By William C. Dudley
  2. On the theory of capital in post-industrial societies By Cavalieri, Duccio
  3. What do labor market institutions do? By Holmlund, Bertil
  4. A critical regard to the history of econometrics By Erich Pinzón Fuchs
  5. Happiness of economists By Feld, Lars P.; Necker, Sarah; Frey, Bruno S.
  6. Fiscal Policy: Its Role in an Independent Scotland By Anthony J Laramie; Douglas Mair

  1. By: William C. Dudley
    Abstract: Remarks at the Global Economic Policy Forum, New York City.
    Keywords: Bank failures ; Business failures ; Bank size ; Systemic risk ; Bank capital ; Bank liquidity ; Financial stability ; Bank competition ; Federal Deposit Insurance Corporation ; Financial Regulatory Reform (Dodd-Frank Act)
    Date: 2013
  2. By: Cavalieri, Duccio
    Abstract: This is an analysis of the present unsatisfactory state of the theory of capital and a proposal to reformulate this theory in line with some neglected late-Marxian views on the subject and in the light of the passage of capitalism from the industrial to a post-industrial era characterized by the dominance of speculative finance. The author’s aim is to provide a better integration of the theory of capital with those of money and finance. Attention is focused on a Marxian price index, the monetary expression of labour value, MEV, which accounts for both explicit and implicit cost components and, differently from MELT, does not consider only the money value of living labour time.
    Keywords: value; capital theory; post-industrialism; critical Marxism; MEV.
    JEL: B12 B13
    Date: 2013–11–25
  3. By: Holmlund, Bertil (Uppsala Center for Labor Studies)
    Abstract: The past couple of decades have seen a huge increase in research on various labor market institutions. This paper offers a brief overview and discussion of research on the labor market impacts of minimum wages (MW), unemployment insurance (UI), and employment protection legislation (EPL). It is argued that research on UI is largely a success story, involving a fruitful interplay between search theory and empirical work. This research has established that UI matters for labor market behavior, in particular the duration of unemployment, although there remains substantial uncertainty about the magnitudes of the effects. The research on MW should have shaken economists’ belief in the competitive labor market model as a result of frequent failures to find noticeable employment effects despite considerable effects on wages. EPL research has established that employment protection reduces labor and job turnover but the jury is still out regarding the impact on overall employment and productivity.
    Keywords: minimum wages; unemployment Insurance; employment protection
    JEL: J01
    Date: 2013–11–28
  4. By: Erich Pinzón Fuchs (UP1 UFR02 - Université Paris 1, Panthéon-Sorbonne - UFR d'Économie - Université Paris I - Panthéon-Sorbonne - PRES HESAM)
    Abstract: Econometrics has become such an obvious, objective - almost natural - tool that economists often forget that it has a history of its own, a complex and sometimes problematic history. Two works - Morgan (1990) and Qin (1993) - constitute the Received View of the history of econometrics. Basing our analysis on Leo Corry's methodological (and historiographical) framework of image and body of knowledge, the main purpose of this dissertation is to provide a critical account of the Received View. Our main criticism is that historians of econometrics have a particular image of knowledge that stems from within econometrics itself, generating a problem of reflexivity. This means that historians of econometrics would evaluate econometrics and its history from an econometrician point of view, determining very specific criteria of what should be considered as "true", what should be studied or what should be the questions that the scientific community should ask. This reflexive vision has conducted the Received View to write an internalist and funnel-shaped version of the History of Econometrics, presenting it as a lineal process progressing towards the best possible solution: Structural Econometrics and Haavelmo's Probability Approach in Econometrics (1944). The present work suggests that a new history of econometrics is needed. A new history that would overcome the reflexivity problem yielding a certainly messier and convoluted but also richer vision of econometrics' evolution, rather than the lineal path towards progress presented by the Received View.
    Keywords: history of econometrics, economic methodology and philosophy, history of recent economic thought, quantification in economics, image and body of knowledge, reflexivity
    Date: 2013–06–11
  5. By: Feld, Lars P.; Necker, Sarah; Frey, Bruno S.
    Abstract: This study investigates the determinants of economists' life satisfaction. The analysis is based on a survey of professional, mostly academic economists from European countries and beyond. We find that certain features of economists' professional situation influence their well-being. Happiness is increased by having more research time while the lack of a tenured position decreases satisfaction in particular if the contract expires in the near future or cannot be extended. Surprisingly, publication success has no effect on satisfaction. While the perceived level of external pressure also has no impact, the perceived change of pressure in recent years has. Economists may have accepted a high level of pressure when entering academia but do not seem to be willing to cope with the increase observed in recent years. --
    Keywords: happiness,academic labor market,extrinsic and intrinsic motivation,publish or perish-culture
    JEL: I31 A11 J28
    Date: 2013
  6. By: Anthony J Laramie (Merrimack College, MA); Douglas Mair (Heriot-Watt University, Edinburgh)
    Abstract: In this paper we consider the implications for macroeconomic fiscal policy in Scotland if the Scottish electorate votes in favour of independence in the referendum on 18 September, 2014. We offer the paper in the spirit of the new thinking that the Scottish government's Fiscal Commission has argued will be required if the potential benefits from the exercise of independently determined macroeconomic policy instruments are to be achieved.
    Keywords: Scotland, fiscal policy, secession
    JEL: E62 F52 H77 R11
    Date: 2013–11

This nep-pke issue is ©2013 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.