|
on Post Keynesian Economics |
| By: | Engelbert Stockhammer (Kingston University); Jo Michell (University of the West of England) |
| Abstract: | Goodwin cycles result from the dynamic interaction between a profit-led demand regime and a reserve army effect in income distribution. The paper proposes the concept of a pseudo-Goodwin cycle. We define this as a counter-clockwise movement in output and wage share space which is not generated by the usual Goodwin mechanism. In particular, it does not depend on a profit-led demand regime. To illustrate this, a simple Minsky-type model is extended by a reserve army distribution adjustment. In this model the cycle is generated by the interaction of financial fragility and demand. The wage share rises at higher levels of output but this generates no feedback so that, by design, demand does not react to changes in income distribution. But the model does exhibit a pseudo-Goodwin cycle in the output-wage share space. This holds true even if we introduce a wage-led demand regime. This demonstrates that the existence of a counter-clockwise movement of output and the wage share cannot be regarded as proof of the existence of a Goodwin cycle and a profit-led demand regime. |
| Keywords: | business cycles, Goodwin cycle, Minsky cycle, financial fragility, distribution cycles, Post Keynesian economics |
| JEL: | E11 E12 E32 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp1405&r=pke |
| By: | Neva Goodwin |
| Abstract: | The impetus for this paper is the urgent need is to figure out how a non-growing – even a shrinking – economy may be able to provide human well-being while beginning to restore the health of natural world. Twentieth century economic theory is not well able to conceptualize this problem, especially since it sees growth as necessary for jobs, jobs necessary for income, and income necessary for well-being. To unwind this chain will require some radical changes in economic theory. The theory must focus on the final goal of human well-being, in the present and the future, prior to the intermediate goals of growth, financial wealth, or the maximization of consumption. Equally critical, and difficult, is to find ways for economic theory to take account of human values, and identify the places where they are more salient than market values, or prices. This conceptualization must be done in a context where we have even more reason than usual to doubt our ability to predict the future. This is because the competing forces of technological progress, on the one hand, and the cumulative human impacts on the natural world, on the other, present us with some dramatically diverging possibilities for the future of work. In one possible scenario, technological advances make more and more jobs obsolete: the productive resources of the economy continue to be able to turn out a high level of material goods and services, but fewer and fewer people are needed to keep these processes going. The resulting “technological unemployment” could create massive poverty – unless societies can devise ways of sharing the wealth. The other possible future path is one in which, while the economy retains (with the normal slow decay) the store of capital goods (including technological and other knowledge, as well as information and transportation systems) that have been amassed in the last few hundred years, the system encounters serious constraints from the depletion and/or degradation of the natural resource inputs of energy, water, biota, minerals, and other materials. In this case the relative value of material (including energy) inputs is likely to rise relative to the value of human labor – a trend that would be the opposite of what has obtained quite steadily since the onset of the Industrial Revolution. A likely result of this reversal would be a general reduction in labor income, as well as an overall reduction in economic activity, as measured by GDP. |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:dae:daepap:14-01&r=pke |
| By: | cho, hyejin |
| Abstract: | This article introduces the cascaded individual model of Post-keynesian economics. This differs from the representative agent model of the old-keynesian model mathematically and methodologically. The model builds from five assumptions containing original concepts: cascaded individuals, a social planner vs a regulator, aggregate deposits (stock) vs pyroclastic deposits (flow). Mainly, this Macro-Micro approach of Post-keynesian concepts suggests the regulation of the money flow. Then, this paper articulates fundamental concepts to solve problems of a sudden "micro" financial shock in the short run with the long run "macro" stabilization with a balanced perspective between macroeconomics and microeconomics. |
| Keywords: | macro micro model, Post-keynesian, banking industy, general equilibrium, endogenous money creation, representative agents, cascaded individuals, aggregate deposits, pyroclastic deposits, social planner, regulator, moral hazard problem |
| JEL: | E58 G0 N1 |
| Date: | 2014–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56119&r=pke |
| By: | Walid Qazizada (Kingston University); Engelbert Stockhammer (Kingston University) |
| Abstract: | This paper investigates the impact of government spending on output and the size of the spending multiplier during periods of output contraction vs. expansion. It also investigates the impact of spending when the economy hits the nominal zero lower bound. It uses a panel of 21 advanced countries over the period of 1979-2011, applying a TSLS estimation technique. We find a spending multiplier of close to 1 during expansion and values of up to 3 during contractions. However, our results do not indicate a difference in the impact of spending during nominal zero lower bound periods. |
| Keywords: | fiscal multiplier, fiscal policy, panel analysis, output contraction |
| JEL: | E62 C36 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp1404&r=pke |
| By: | Yoshihara, Naoki |
| Abstract: | This report explores the development of exploitation theory in mathematical Marxian economics by reviewing the main controversies surrounding the definition of exploitation since the contribution of Okishio (1963). The report first examines the robustness and economic implications of the debates on the Fundamental Marxian Theorem, developed mainly in the 1970s and 1980s, followed by the property relation theory of exploitation by Roemer (1982). Then, the more recent exploitation theory proposed by Vrousalis (2013) and Wright (2000) is introduced, before examining its economic implications using a simple economic model. Finally, the report introduces and comments on recent axiomatic studies of exploitation by focusing on the work of Veneziani and Yoshihara (2013a). |
| Keywords: | Fundamental Marxian Theorem, Property Relations Definition of Exploitation, Profit-Exploitation Correspondence Principle |
| JEL: | D63 D51 |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:607&r=pke |
| By: | Rémi Jardat (ISTEC - Institut supérieur des Sciences, Techniques et Economie Commerciales - ISTEC, CNAM Paris - Conservatoire National des Arts et Métiers - Conservatoire National des Arts et Métiers (CNAM)) |
| Abstract: | Purpose: This critique of Piketty's Capital in the Twenty-First Century summarizes and comments on the main tenets of the author's principal theory. Our aim is to point out the book's contributions to critical debate around social and economic issues, while giving special emphasis to its theoretical and epistemological relevance for management science. Design/methodology/approach: Based on a careful reading of the book, in the original French and English translation versions, we explore Piketty's arguments and proposals, and attempt to place his "scholarly discourse" in relation to Marx's "worldview" as well as the philosophy of the Enlightenment. Findings: The book's potential impact over the long run is extremely high, ostensibly enough to make it as important as Marx's work but relying on a decidedly different method and philosophy. We also consider the strong complementariness between this work and that of Pierre Rosanvallon in the field of political science. Some similarities with Fukuyama's approach are also considered, but on a much lesser note. Research limitations/implications: The question of unemployment, which is given little attention in Piketty's work, is not addressed here. Social applications: In contrast with Piketty's book, this paper intends to find social application only within the microcosm of the scholarly community. Originality/value: We hope to draw a link between the book's contribution to economic thinking and its philosophical underpinnings, that is, by presenting a reading that is both a positivist assessment and an attempt to decipher underlying assumptions. |
| Keywords: | Piketty, Capital, Marxism, Enlightenment, Rosanvallon, Wallerstein |
| Date: | 2014–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00990772&r=pke |
| By: | Gravel, Eric; Delpech, Quentin |
| Abstract: | Looks at recent complaints under the labour chapters of three US trade agreements, the CAFTA-DR, the US-Bahrain and the US-Peru FTAs. Analyses the way both labour unions and the competent authorities in the United States have used or relied on the comments of the ILO's supervisory bodies in the submission process related to the sanction mechanisms of labour provisions. |
| Keywords: | trade agreement, free trade, international labour standards, ILO standards, trade union, regulation, evaluation, Bahrain, Guatemala, Peru, USA, accord commercial, libre-échange, normes internationales du travail, normes de l'OIT, syndicat, réglementation, évaluation, Bahreïn, Guatemala, Pérou, Etats-Unis, convenio comercial, libre comercio, normas internacionales del trabajo, normas de la OIT, sindicato, reglamento, evaluación, Bahrein, Guatemala, Perú, Estados Unidos |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:480940&r=pke |
| By: | Detzer, Daniel |
| Keywords: | financial system, income distribution, wage differential, employment, financial sector, bank, Germany, système financier, répartition du revenu, disparité des salaires, emploi, secteur financier, banque, Allemagne, sistema financiero, distribución del ingreso, diferencia del salario, empleo, sector financiero, banco, Alemania |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:485244&r=pke |
| By: | Lavinas, Lena; Moellmann Ferro, Thiago Andrade |
| Keywords: | tax system, tax reform, wage differential, Brazil, système fiscal, réforme fiscale, disparité des salaires, Brésil, sistema tributario, reforma tributaria, diferencia del salario, Brasil |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ilo:ilowps:485130&r=pke |
| By: | Sugata Marjit (Centre for Studies in Social Sciences, Calcutta); Sattwik Santra (Centre for Studies in Social Sciences, Calcutta); Koushik Kumar Hati (Centre for Studies in Social Sciences, Calcutta) |
| Abstract: | We consider a situation where the relatively ‘poor’ are concerned about their relative income status with respect to a relevant reference group. Such a concern is explicitly introduced in a utility function to study the consumption and saving behavior of the poor in terms of a static and dynamic model. The static model points toward a possible conflict between income based and nutrition-based measure of poverty. The dynamic model exhibits the possibility of a higher rate of accumulation coupled with an inadequate nutritional intake, relative to a situation where there is no such concern for status. Thus, growth with malnutrition may also imply a conflict between different measures of poverty. Both the models point toward a direct and negative relationship between inequality and share of nutritional consumption as reflected in the consumption of food. Finally the paper looks at the empirical relationship between inequality and consumption across districts within states of India. The hypotheses that inequality impacts consumption patterns via status effect cannot be rejected. In fact the impact seems to be significant across a number of the Indian states. |
| Date: | 2014–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:514&r=pke |
| By: | Paul Revill (Centre for Health Economics, University of York, UK); Simon Walker (Centre for Health Economics, University of York, UK); Jason Madan (Warwick Medical School, University of Warwick, UK); Andrea Ciaranello (Massachusetts General Hospital, Massachusetts, USA); Takondwa Mwase (Abt Associates, Lilongwe, Malawi); Diana M Gibb (5Medical Research Council Clinical Trials Unit (MRC CTU), at University College London, UK); Karl Claxton (Centre for Health Economics, University of York, UK); Mark J Sculpher (Centre for Health Economics, University of York, UK) |
| Abstract: | Healthcare systems in low- and middle-income countries face considerable population healthcare needs with markedly fewer resources than those in higher income countries. The way in which available resources are allocated across competing priorities has a profound effect on how much health is generated overall, who receives healthcare interventions and who goes without. Judgements about whether interventions and programmes should be regarded as cost-effective and prioritised over others should be based on an assessment of the health benefits that will be lost because the resources required will not be available to implement other effective interventions and programmes that would benefit other patients in the same or different disease areas. Unfortunately, frequently adopted international norms, in particular the cost-effectiveness thresholds recommended by the World Health Organization (WHO), are not founded on this type of assessment. Consequently current judgements about which interventions and programmes are cost-effective are often aspirational and do not reflect the reality of resource constraints. As a consequence their use is likely to reduce overall population health and exacerbate healthcare inequalities. They also fail to identify the real (and greater) value of devoting more resources to these efforts. By obscuring the true implications of current arrangements they do not contribute to greater understanding of and accountability for global and local decisions made on behalf of populations in low and middle as well as in high income countries. We illustrate these points using examples from HIV/AIDS. |
| Date: | 2014–05 |
| URL: | http://d.repec.org/n?u=RePEc:chy:respap:98cherp&r=pke |
| By: | Meacci, Ferdinando |
| Abstract: | ABSTRACT The controversies between Ricardo and Malthus reached a new peak when Malthus published his pamphlet The Measure of Value Stated and Illustrated and Ricardo responded by his critical Notes on Malthus’s ‘Measure of Value’ (1823 [1992]) and by a further round of correspondence with Malthus (Works, IX). The new (and final) stage of these controversies was concerned with the two authors’ conflicting theories of value and, within these theories, with the excruciating issue of the invariable measure of value. Starting from some insights provided by Malthus and Ricardo in their major or final contributions, this paper deals with a rather neglected component of their controversies, i.e. with the theory of the value of labour as distinct from the value of its products. This will be done by highlighting two sets of ambiguities which affect both Ricardo’s and Malthus’s arguments. One of these hinges on the ambiguity conveyed by the word labour in so far as this reflects the three different concepts of labour power, living labour and dead labour. The other set hinges on the different ambiguity conveyed by the word value especially when it comes to the value of labour. For this word was used in those controversies (as well as in other parts of classical theory) to convey not only the two elementary concepts of use-value and exchangeable-value but also, within the former concept, the two further concepts of the (positive) use-value of labour from the standpoint of its employer, and of the (negative) use-value (disutility) of labour from the standpoint of the labourer. The latter is the sense in which Smith’s ambiguous notion of the “value of labour to the labourer” and his related corollary of the constant “price” of labour (WN, I,V,7-8) must be understood if his system of thought (including its crucial notion of value as labour command) is to stand against Malthus’s misleading attempt to protect it from Ricardo’s criticisms. In this sense, Malthus’s attempt and Ricardo’s criticisms may be jointly regarded as a result of their common error of understanding the value of labour exclusively in the sense of its exchangeable value (which is rightly regarded by Ricardo as –normally- varying and wrongly assumed in Malthus’s Measure of Value as –strangely- constant). |
| Keywords: | Smith, Ricardo, Malthus, value of labour |
| JEL: | B12 B2 B22 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55948&r=pke |