nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2014‒05‒09
five papers chosen by
Karl Petrick
Western New England University

  1. Greenhouse Gas and Cyclical Growth By Lance Taylor; Duncan Foley
  2. From sustainable consumption to sustainable practices By Daniel, M.; Sirieix, L.
  3. Financial history and financial economics By Turner, John D.
  4. Minsky Financial Instability, Interscale Feedback, Percolation and Marshall-Walras Disequilibrium By Sorin Solomon; Natasa Golo
  5. Fiscal policy as an instrument of investment and growth By Basu, Kaushik

  1. By: Lance Taylor; Duncan Foley
    Abstract: A growth model incorporating dynamics of capital per capita, atmospheric CO2 concentration, and labor and energy productivity is described. In the “medium run” output and employment are determined by effective demand in contrast to most models of climate change. In a “long run” of several centuries the model converges to a stationary state with zero net emissions of CO2. Properties of dismal and non-dismal stationary states are explored, with a latter requiring a relatively high level of investment in mitigation of emissions. Without such investment under “business as usual” output dynamics are strongly cyclical in numerical simulations. There is strong output growth for about eight decades, then a climate crisis, and output crash.
    Date: 2014–02
  2. By: Daniel, M.; Sirieix, L.
    Abstract: This study examines the sustainable practices adopted by private individuals. Ten households observation, twenty-two face to-face interviews and three hundreds questionnaires highlight a number of daily practices combining sustainability-oriented and individualistic motivations. Three spheres of sustainable practices (purchases, habits and share/transmission) three patterns (occasional adoption, integration and compensation) and different consumer clusters appear. Recommendations for sustainable marketing are provided. ....French Abstract : Cet article étudie les pratiques durables adoptées quotidiennement par les individus. L'observation de 10 ménages, 22 interviews en face-à-face et 300 questionnaires permettent de comprendre la diversité des pratiques durables des individus oscillant entre motivations tournées vers le développement durable et tournées vers des intérêts plus personnels. Trois sphères de pratiques durables (achats, usages et transmission), trois régimes de pratiques (adoption ponctuelle, intégration et compensation) ainsi que différentes classes d'individus identifiées selon leurs pratiques motivées apparaissent. Cet article se termine par des recommandations pour le marketing durable.
    JEL: D1 M31 Q01
    Date: 2014
  3. By: Turner, John D.
    Abstract: This essay looks at the bidirectional relationship between financial history and financial economics. It begins by giving a brief history of financial economics by outlining the main topics of interest to financial economists. It then documents and explains the increasing influence of financial economics upon financial history, and warns of the dangers of applying financial economics unthinkingly to the study of financial history. The essay proceeds to highlight the many insights that financial history can potentially provide to financial economics. The main conclusion of the essay is that financial economics can potentially learn more from financial history than vice versa. --
    Keywords: financial economics,financial history,asset pricing,agency,corporate finance,behavioural finance,options
    JEL: G00 N01 N20
    Date: 2014
  4. By: Sorin Solomon; Natasa Golo
    Abstract: We study analytically and numerically Minsky instability as a combination of top-down, bottom-up and peer-to-peer positive feedback loops. The peer-to-peer interactions are represented by the links of a network formed by the connections between firms; contagion leading to avalanches and percolation phase transitions propagating across these links. The global parameter in the top-bottom -- bottom-up feedback loop is the interest rate. Before the Minsky Moment, in the `Minsky loans accelerator' stage the relevant "bottom" parameter representing the individual firms' micro-states, is the quantity of loans. After the Minsky Moment, in the `Minsky crisis accelerator' stage, the relevant `bottom' parameters are the number of ponzi units / quantity of failures / defaults. We represent the top-bottom, bottom-up interactions on a plot similar to the Marshall-Walras diagram for quantity-price market equilibrium (where the interest rate is the analog of the price). The Minsky instability is then simply emerging as a consequence of the xed point (the intersection of the supply and demand curves) being unstable (repulsive). In the presence of network effects, one obtains more than one fixed point and a few dynamic regimes (phases). We describe them and their implications for understanding, predicting and steering economic instability.
    Date: 2013–09–12
  5. By: Basu, Kaushik
    Abstract: This paper investigates the role of fiscal guarantees in promoting infrastructure investment. Infrastructure is a critical driver of economic growth, but infrastructure entails significant up-front costs that yield benefits after a time lag. Investors hesitate to put their money down on private infrastructure ventures because of the long lag and governments do not give guarantees for reasons of fiscal prudence. The paper argues that governments and large investment guarantee agencies can in many situations give suitably-calibrated guarantees to private projects by exploiting the fact that a guarantee on one project can reduce the risk of another one failing. The paper works out the architecture of such guarantees, which can be fiscally prudent and yet boost investment, especially in infrastructure, and thereby promote growth.
    Keywords: Debt Markets,Access to Finance,Emerging Markets,Bankruptcy and Resolution of Financial Distress,Non Bank Financial Institutions
    Date: 2014–05–01

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