nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2014‒08‒02
seven papers chosen by
Karl Petrick
Western New England University

  1. The Excess Demand Theory of Money By Kehrwald, Bernie
  2. The State of Development Thought By Currie-Alder, Bruce; Kanbur, Ravi; Malone, David M.; Medhora, Rohinton
  3. Veblen Effect in the United States Housing Market: Spatial and Temporal Variation By Lee, Kwan Ok; Mori, Masaki
  4. Energy Labelling and Residential House Prices: Some Evidence from the United Kingdom By Fuerst, Franz; Nanda, Anupam; Wyatt, Peter
  5. Green Jobs and Growth in the United States: Green Shoots or False Dawn? By Robert J R Elliott; Joanne K Lindley
  6. The return of"patrimonial capitalism": review of Thomas Piketty's capital in the 21st century By Milanovic, Branko
  7. How Important Was Marxism for the Development of Mozambique and Angola? By Kyle, Steven

  1. By: Kehrwald, Bernie
    Abstract: This paper introduces a new monetary theory. A simple model is described in which a central bank sets the interest rate in a way that the excess demand for credits equals the preferred amount of money. It is compatible with the Keynesian liquidity preference theory and the neoclassical loanable funds theory and can be used to explain a series of phenomena. It is very suitable for introductory textbooks.
    Keywords: money, interest rate, credit, central bank, savings, investments
    JEL: E40 E50 E51
    Date: 2014–07–27
  2. By: Currie-Alder, Bruce; Kanbur, Ravi; Malone, David M.; Medhora, Rohinton
    Keywords: International Development, Production Economics,
    Date: 2013
  3. By: Lee, Kwan Ok; Mori, Masaki
    Abstract: The finance literature suggests that the Veblen effect (i.e. luxury consumption behavior) could be translated into consumers' behavior with other goods and assets. This study is the first to examine the role that the Veblen effect plays in housing market dynamics, with a focus on spatial and temporal variation in this role. It uses a unique dataset that matches the consumers' appetite for non-housing luxury goods from Google Insights for Search to the premium that they pay for high-end houses in US Metropolitan Statistical Areas (MSAs) during 2004-2011. The results demonstrate that controlling for other MSA demographic and economic characteristics, the Veblen effect has a significant, positive relationship with a premium paid in the housing market. This suggests that high-end houses may have been purchased for the enjoyment of signaling wealth and status and this housing consumption behavior may have partly driven the large deviation of high-end house prices from the median. Housing consumption tends to be motivated more by the Veblen effect in the areas where people pay a steady, higher premium than in other areas with a more volatile, lower premium. In fact, the higher Veblen effect substantially contributes to maintaining the higher level of the premium in these areas even during the bust period.
    Date: 2013
  4. By: Fuerst, Franz; Nanda, Anupam; Wyatt, Peter
    Abstract: Following the EU Energy Performance of Buildings Directive requiring all buildings at construction, sale or rent (or every ten years) to have certificates providing information about their energy performance through a rating of CO2 emissions, Energy Performance Certificates (EPCs) and the Display Energy Certificates (DECs) were introduced in the UK in 2008. An EPC consists of an asset rating which is intended to inform potential buyers or occupiers about the intrinsic energy performance of a building. In the same vein as consumer products, buildings are rated on a scale A to G with A being the most efficient. This paper outlines the results of the first large-scale empirical analysis of their effects on residential property prices in England and Wales. It draws upon a sample of approximately 400,000 dwellings in England and Wales that had sold in the period from 1995 to 2011. To enable repeat-sales analysis, the sample included a large proportion of dwellings that had sold more than once. The hedonic model specifications reveal that compared to dwellings EPC rated G, dwellings with better EPC ratings have sold at a significant price premium. This willingness to pay for superior EPC ratings are robust and consistent across several model specifications and samples.
    Date: 2013
  5. By: Robert J R Elliott; Joanne K Lindley
    Abstract: Green growth is increasingly being seen as a means of simultaneously meeting current and future climate change obligations and reducing unemployment. This paper uses detailed industry-level data from the Bureau of Labor Statistic's Green Goods and Services survey to examine how the provision of green goods and services has affected various aspects of the US economy. Our descriptive results reveal that those states and industries that were relatively green in 2010 became even greener in 2011. To investigate further we include green goods and services in a production function. The results show that between 2010 and 2011 industries that have increased their share of green employment have reduced their productivity although this negative correlation with productivity was only for the production of green goods and not for the supply of green services. In further analysis we investigate skill-technology complementarities in the production of green goods and services and show that industries that increased their provision of green goods and services grew more slowly, reduced their expenditure on technology inputs and increased their demand for medium educated workers, whilst simultaneously reducing their demand for low skilled workers.
    Keywords: Green Goods and Services; Productivity; Employment
    JEL: Q4 Q3
    Date: 2014–07
  6. By: Milanovic, Branko
    Abstract: The paper provides a detailed review of Thomas Piketty's book"Capital in the 21st century."It focuses on the new contributions of the book, and in particular on its unified treatment of economic growth, functional income distribution, and concentration of personal income. It concludes that Piketty's reinvigoration of classical and empircally-drven approach is likely to have a profound impact on economics.
    Keywords: Economic Theory&Research,Political Economy,Emerging Markets,Inequality,Poverty Impact Evaluation
    Date: 2014–07–01
  7. By: Kyle, Steven
    Keywords: International Development, Political Economy,
    Date: 2013

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