nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2015‒04‒02
twelve papers chosen by
Karl Petrick
Western New England University

  1. Policy Implications of Economic Complexity and Complexity Economics By Elsner, Wolfram
  3. Orthodoxy versus heterodoxy: Inflation, unemployment, growth, profit By Manera, Carlos
  4. Relative Social Status and Conflicting Measures of Poverty: A Behavioural Analytical Model By Sugata Marjit; Arijit Mukherjee; Koushik Kumar Hati
  5. Unemployment: Walras’s Voluntary and Keynes’s Involuntary By Ezra Davar
  6. 'Growth in a Time of Austerity: Evidence From the UK' By Jurgen Amann; Paul Middleditch
  7. Social-Ecology : exploring the missing link in sustainable development By Eloi Laurent
  8. Hegemony in the Local Order and Accumulation in the Global: Canada and Libya By Sean McMahon;
  9. Higher Education and Sustainable Development By Elijah Okpanachi; Israel Akoh; Mercy Ocheni
  10. Green Economy and Development: Towards Place Making and Community Sustainability By Rosario Turvey
  11. Keynes; İstatistik, Ekonomik İstatistikler, Ulusal Gelir ve Ekonometri By Ercan Uygur
  12. Fra Marx e List: sinistra, nazione e solidarietà internazionale By Sergio Cesaratto

  1. By: Elsner, Wolfram
    Abstract: Policy implications of complexity economics (CE) are investigated. CE deals with “Complex Adaptive (Economic) Systems” [CA(E)S], generally characterized by mechanisms and properties such as “emergence” of structure or some capacity of “self-organization”. With this, CE has manifold affinities with economic heterodoxies. CE has developed into a most promising economic research program in the last decades. With some time lag, and boosted by the financial crisis and Great Recession, a surge to explore their policy implications recently emerged. It demonstrated the flaws of the “neoliberal” policy prescriptions mostly derived from the neoclassical mainstream and its underlying more simplistic and teleological equilibrium models. However, most of the complexity-policy literature still remains rather general. For a subset of CA(E)S, those with heterogeneous human agents interacting, particularly on networks, using evolutionary games in the “evolution-of-cooperation” tradition, therefore, we exemplarily derive more specific policy orientations and tools, and a framework policy approach called Interactive Policy.
    Keywords: Economic complexity; complex adaptive (economic) systems; equilibrium modeling; self-organization; structural emergence; microfoundations; social-dilemma games; evolution of cooperation; economic policy; regulation; institutional design; recognized interdependence; futurity; rime horizons; network structures; interactive/institutional policy; meritorics; pragmatism; negotiated economy.
    JEL: B4 B5 C72 D02 H4 P41
    Date: 2015–03–26
  2. By: utku altunöz (Social Science);
    Abstract: Dominant neo classical system is criticized for not solving the problems of current economics. In other words, it is seen the reason of current economic issues. And also it is believed that unsolved problems come with global crisis were developed by dominant classical thought. In 2000’s Post Autistic economic movement came to the scene with published declaration by pupils of Ecole Normale Superieure in France. According to declaration dominant economic thought turn into the autistic characteristic. Due to this fact, economic science is vanished by intense mathematical formulas. So that had broken of connection with real life. In this paper first, basic hypothesis of neo classical thought will be examined. Following that, solving suggestion for problematic area in the light of autistic movement will be explained. In the other words, especially in the course of time, the current economic system remains incapable to meet society’s expectations, demands, and requirements, the system and method debate has been increasing. Recently, the basic reason that led to criticism by focusing the global economic crisis has developed in the direction of the Neo-classical system. Another purpose of this study is to open discussion of last 2008 global crisis to Turkey’s assessment from the view point of Post Autistic Economics.
    Keywords: The Post Autistic Economics Movement, Neo-classical Economics, The 2008 Global Economic Crisis
    JEL: E13 P16 P51
    Date: 2014–06
  3. By: Manera, Carlos
    Abstract: Institutions like the IMF, the ECB and many finance ministries and private banks in the world's richest countries are sending out unequivocal calls for strict control of prices to be addressed urgently, given their intrinsic relationship with how the budget deficit and government debt evolve. These messages allow very little room for nuances or interpretations, stating categorically that price stability is the essential factor that guarantees economic growth and therefore plays a key role in enabling countries to achieve good living standards. Nevertheless, inflation, which nobody doubts needs to be kept under control, requires a much deeper analysis to avoid over-mechanical, over- simplistic applications for the present situation. We mustn't fall into what Paul Samuelson called basing economic policy on "shibboleths" - that is, hard and fast slogans that take over serious, thoughtful discussion and exchange of opinions. Especially since in economics slogans become hallmarks that are constantly repeated, and this repetition gets in the way of the obvious truth. This trend has led to the sale of intellectual products with no scientific backing. A case in point is David H. Fischer's book on prices. Addressing business leaders, he asserts categorically that econo mic cycles and crises have ended, but the actual economic events have disproved this. As Robert Solow warns, there is not one set of laws of economics applicable to all times and all places, and the part of e conomics that is not dependent upon economic history and the social context is very small and of little interest.
    Keywords: inflation,economic growth,heterodox view
    JEL: B50 B41 N1
    Date: 2015
  4. By: Sugata Marjit; Arijit Mukherjee; Koushik Kumar Hati
    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 behavior of the poor. We point towards a possible conflict between income based and nutrition-based measure of poverty. Changes in income distribution generate non-homothetic outcome for an “otherwise homothetic” preference structure and may convert an “otherwise normal” good into an inferior good.
    Keywords: Status; Consumption pattern; Inequality; Poverty JEL Classification: C13, D01, D12, O40
    Date: 2015
  5. By: Ezra Davar
    Abstract: This paper shows that Keynes’s involuntary unemployment derived from Walras’s voluntary unemployment by means of changing of the characteristic of the aggregate supply curve (function) of labour. On the one hand, when the original aggregate supply function is a strongly increasing function, as in Walras’s approach, there might be only voluntary unemployment, and its magnitude is the difference between the available quantity of labour and the equilibrium point. At the other hand, if the supply curve of labour is a weakly increasing, which means that the supply function may has a horizontal segment then there might be involuntary unemployment if the equilibrium point locates between boundary points of the horizontal segment, and the magnitude of involuntary unemployment is the difference between the right boundary point of the horizontal segment and an equilibrium point. According to Walras’s approach also might be considered “forced unemployment” which is the result of an intervention of external forces (government, monopoly, trade unions, and so on) into the market, and therefore, it is a disequilibrium phenomenon. Finally, in reality there are many types of labour, hence a suggested comprehensive approach of employment might be a useful tool for policy making and planning of economics.
    Keywords: Walras, Keynes, Voluntary Unemployment, Involuntary Unemployment, Aggregate Supply function
    JEL: B3 C6 D5 E0
    Date: 2015–03
  6. By: Jurgen Amann; Paul Middleditch
    Abstract: A recent recovery in the United Kingdom comes after a program of austerity measures announced by the incoming coalition government in 2010. Can the recent pick up in economic activity be attributed to this controversial fiscal policy? This paper uses an empirical approach to test the causal relationship between debt and growth for the case of the UK using monthly time series data between 1995 and 2013. This time series perspective makes use of Granger-causality and co-integration tests that allow for non-stationarity in macroeconomic time series data. We find that controlling for structural breaks in this way leads us to the finding of no empirical support for the hypothesis that fiscal discipline can restore economic activity after a recession.
    Date: 2015
  7. By: Eloi Laurent (OFCE)
    Abstract: Environmental challenges are, at their root, social problems that arise from income and power inequality. Thus, inequality is an environmental issue just as environmental degradation is a social issue(forming a “social-ecological nexus”), and solutions must address them jointly through principles and institutions rooted in justice. This article develops a two-sided “social- ecological” approach to offer both analytical and empirical insights into the dynamics of this relationship and a policy path forward
    Keywords: social ecology; social ecological nexus; inequality; social ecological transition
    Date: 2015–03
  8. By: Sean McMahon (The American University in Cairo);
    Abstract: My paper analyzes Canadian involvement in the war on Libya in 2011. My point of departure is the question: why was Canada involved in the bombing of Libya? I quickly recognize that it is facile to argue that Canada bombed Libya simply because it is a member of the North Atlantic Treaty Organization (NATO). Other NATO members, most notably Germany, did not support UN Resolution 1973 which authorized the use of force to protect Libyan civilians. Furthermore, a number of NATO members, including usually staunchly supportive Poland, refused to participate in Operation Unified Protector. In fact, only 14 of the alliance's 28 members ultimately contributed war materiel. Consequently, I pose the subsequent query: why was Canada disproportionately involved in the bombing of Libya? Canadian involvement in the war on Libya can only be properly understood by locating the policy in the politics of Fernand Braudel's structural time. My argument is that the Canadian state supported the Libya campaign, and participated as it did, in the service of global and local interests of the transnational historic bloc led by finance capital. Globally, the war facilitated accumulation on the part of this bloc by temporally displacing the ongoing crisis of surplus capital. Locally, the war on Libya supported this bloc's political project in Canada by reaffirming a neoliberal nationalist ideology. The war was against value, including people, in Libya and resistant subordinate social forces in Canada's politico-economic order, NATO's Operation Unified Protector and Canada's Operation Mobile were material attacks in Libya and techniques of social domination in Canada. I execute my argument in four stages. First, I explain my analytical apparatus. More specifically, I adumbrate the specific ideas and insights I deploy from the historical materialist tradition. Second, I demonstrate that the prevailing readings of the war on Libya, including Canada's participation in it, are, at best, analytically deficient and at worst, ahistorical and bereft of critical reflection. It must be noted that commentaries on Canadian policy vis-Ă -vis Libya are almost non-existent, so much of this review is cast in the broader terms of the global political-economic order. Third, I explain how the war on Libya temporally displaced the problem of surplus capital and served an ideological function in Canada. Fourth and finally, I conclude with some thoughts regarding local social implications of the Canadian involvement in the war.
    Keywords: Libya, Canada, historical materialism, hegemony, accumulation, transnational historic bloc, crisis of surplus capital, entrepreneurial Canadian, Operation Unified Protector, Operation Mobile
    Date: 2014–07
    Abstract: This paper sets out to clarify and contribute to the nature and purpose of higher education. It is often argued that Universities exist to provide future society with the skills based it will require. In another view, Universities exist not only to service the economy but to contribute to the intellectual and moral improvement of the human condition.... This paper explores the relationship between Higher Education and sustainable development, examines the fundamental question - that of what higher education is. The proper purpose of Higher Education is outlined, and set out the role of higher education institutions in promoting sustainable development.
    Keywords: Higher Education, Sustainable Development and University
    JEL: A13
    Date: 2014–10
  10. By: Rosario Turvey (Lakehead University)
    Abstract: This research explores an important yet under-investigated topic on Ontario’s small urban municipalities (SUMs) concerning green economy and development in relation to local initiatives and strategies for framing sustainable communities in Ontario, Canada. The research interest is on place making as a function of initiatives by local economies concerning green economy and community sustainability. Canadian communities are adopting environmental action strategies to protect natural resources and the environment on issues associated with climate change, resource competition and rising demands for social, cultural and economic development. Though many municipal jurisdictions have put in place Environmental Action Plans (EAPs) and Economic Development Strategies (EDS), these often operate in parallel, not in concert with each other to consequently transform places into ‘sustainable communities’. The research has three research objectives. The first objective is to increase understanding of the relationship between ‘green economy,’ sustainability and local development strategies for place making in sustainability context. The second is to contribute to an emerging research agenda on sustainability and economic prosperity of local communities. By understanding how environmental action plans and economic development strategies are linked toward sustainable development in SUMs, the tension between economic prosperity and sustainability can be clarified. Third, the research hopes to contribute toward policy research on local development and environmental sustainability in the medium- if not the long-term. The paper presents the results from the survey on green economy and development of environment and economic development professionals and practitioners from two case study SUMs in Ontario, Canada namely: Orillia and North Bay. The research adopted a ‘sustainable community development model’ as a framework to explore community efforts (local initiatives) as translated into local environmental strategies and priorities to pursue green development and sustainability. The research on SUMs involved a questionnaire survey and statistical assessment using Mann-Whitney U test and other quantitative spatial analysis. The aim of the survey was to determine how three components namely- green economy priorities, planning for green development and energy-related priorities are perceived by those engaged in the framing and implementing strategies, priorities and policies for building sustainable communities. The results from the survey indicated that local priorities and strategies for green economy and development are important components for sustainable community development. Not surprisingly, the survey found that key informants viewed the green economy priorities and strategies in their respective municipalities to be contributing towards community sustainability.
    Keywords: green economy, place making, community sustainability
    JEL: Q01
    Date: 2014–06
  11. By: Ercan Uygur (The Turkish Economic Association, Turkey)
    Abstract: John Maynard Keynes, ekonomi dünyasında düşünceleri, kuramları ve politika önerileriyle gündemden düşmez, sürekli tartışmaların konusu olur. Keynes, iktisatta istatistik, ekonometri ve matematik gibi teknik yöntemler kullanılmasını nasıl değerlendirmişti? Kendisi bu yöntemleri ne ölçüde kullandı? Keynes bu yöntemler konusunda yeterli miydi? Bu yazının birinci amacı, bu ve benzeri sorulara yanıt vermeye çalışmaktır. Bu çerçevede, Keynes’in olasılık, endeks sayıları ve genel olarak istatistiğe; ulusal gelir hesapları ve diğer ekonomik istatistiklere; ekonometriye; ekonomiyle ve istatistiklerle ilgili kurumlara yaptığı katkıları ve etkileri ortaya koymak, bunlara dikkat çekmek bir diğer amaçtır. Son bir amaç da, yakın yıllarda bu konularda yapılan bazı tartışmaları okuyucuyla paylaşmaktır.
    Date: 2015
  12. By: Sergio Cesaratto (University of Siena)
    Abstract: In questo breve saggio esaminiamo l’importanza attribuita da Friedrich List allo Stato nazionale nell’emancipazione economica di un paese a fronte della visione cosmopolita del capitalismo e degli interessi dei lavoratori che Marx gli contrappone. Rifacendoci a uno spunto di Massimo Pivetti sosteniamo che lo Stato nazionale sia lo spazio più prossimo in cui una classe lavoratrice nazionale può legittimamente sperare di modificare a proprio vantaggio i rapporti di forza. Nell'aver sostenuto lo svuotamento della sovranità nazionale in nome di un europeismo tanto ingenuo quanto superficiale, la sinistra ha contribuito a far mancare a sé stessa e ai propri ceti di riferimento il terreno su cui espletare efficacemente l’azione politica contribuendo in tal modo allo sbandamento democratico del paese.
    Keywords: Socialist Marxian Sraffian, Central banks and their policies, Current account adjustment, International lending and debt problems, Macroeconomics issues of monetary unions.
    JEL: B51 E58 F32 F34
    Date: 2015–03

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