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on Post Keynesian Economics |
| By: | Karsten Köhler (Berlin School of Economics and Law); Alexander Guschanski; Engelbert Stockhammer |
| Abstract: | While it is frequently asserted that financialisation has contributed to the decline in the wage share there are only few econometric studies, which usually focus on a single aspect of financialisation. This paper provides a theoretical clarification and a systematic empirical investigation. We identify four arguments why financialisation would affect the wage share: (1) a political economy approach focusing on the exit options of firms, (2) a neo-Kaleckian approach stressing the role of financial overhead costs for firms, (3) increased competition on capital markets stressed by neo-Marxian approaches and the critical shareholder value literature, and (4) the role of household debt in increasing workers’ financial vulnerability and undermining their class consciousness. The paper compiles a comprehensive set of empirical measures of financialisation and uses it to test the theoretical hypotheses by a panel regression of 14 OECD countries over the 1989-2011 period. We find strong evidence for negative effects of household debt and evidence for negative effects of financial deregulation. |
| Keywords: | financialisation, functional income distribution, panel regression. |
| JEL: | B3 B5 D2 D4 P1 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp1507&r=pke |
| By: | Engelbert Stockhammer (Kingston University); Cédric Durand; Ludwig List |
| Abstract: | This paper builds on post-Keynesian macroeconomics, the Regulation Approach and a Neo-Gramscian International Political Economy approach to class analysis and offers an empirical analysis of European growth models and working class restructuring in Europe between 2000 and 2008. We will distinguish between the ‘East’, the ‘North’, and the ‘South’ and structure our analysis around industrial upgrading, financialisation and working class coherence. We find an export-driven growth model in the North, which came with wage suppression and outsourcing to the East. In the East the growth model can be characterised as dependent upgrading, which allowed for high real wage growth despite declining working class coherence. The South experienced a debt-driven growth model with a real estate bubble and high inflation rates resulting in large current account deficits. Our analysis shows that class restructuring forms an integral part in the economic process that resulted in European imbalances and the Euro crisis. |
| Keywords: | European growth models, class analysis, labour relations, debt-driven growth, financialisation. |
| JEL: | B5 P52 Z1 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp1508&r=pke |
| By: | Kundu, Nobinkhor; Mollah, Muhammad Musharuf Hossain |
| Abstract: | The demand for money is crucial important tool of monetary policy to deal with the macroeconomic problems and to prescribe appropriate policy of the economy. This paper investigates to empirically explore the long-run equilibrium for demand for real money balance as well as short-run dynamics in the context of monetary policy in Bangladesh. Using time-series annual data for the period 1981 to 2012 and applying the methods of cointegration and error-correction, the study find a single cointegrating equation showing long-run stable relationship between demand for money and explanatory variables in the model. The study also finds convergence of short-run dynamics towards statistically significant long-run equilibrium and concludes that the results have important implications for the conduct of monetary policy in Bangladesh. |
| Keywords: | Demand for Money, Cointegration, Bangladesh |
| JEL: | C22 C52 E41 |
| Date: | 2014–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65727&r=pke |
| By: | Dean Baker |
| Abstract: | This paper analyzes the impact of an amendment to Senate Bill 1137, offered by Senator Thomas Tillis, which would exempt patents related to pharmaceuticals and biological products from the Inter Partes Review (IPR) process. The IPR process was established in the America Invents Act, which was passed and signed into law in 2012. The process is intended to provide a quick and low-cost way in which dubious patent claims can be challenged by those who might be affected. In the first two years in which it was in place, almost one-third of challenged claims were canceled or removed according to data from the United States Patent and Trademark Office (USPTO). Based on this data, the paper argues that the IPR process appears to be an effective mechanism for quickly removing dubious patent claims before they impose major costs on the economy. |
| Keywords: | patents, pharma, pharmaceutical, inter partes review, drugs |
| JEL: | I I1 I18 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:epo:papers:2015-17&r=pke |
| By: | Teixeira, Aurora A. C.; Castro e Silva, Manuela |
| Abstract: | The way the fields are delineated has been the Achilles' heel of studies analyzing the status and evolution of given scientific areas. Based on van den Besselaar and Leydesdorff's (Mapping change in scientific specialities; a scientometric reconstruction of the development of artificial intelligence, 1996) contribution, the authors propose a systematic and objective method for delineating the field of ecological economics assuming that aggregated journal-journal citation relations is an appropriate indicator for the disciplinary organization of the sciences. They found that the relational scientific backbone of ecological economics comprises 7 main journals: American Journal of Agricultural Economics, Ecological Economics, Environment and Development Economics, Environmental and Resources Economics, Land Economics, Land Use Policy, and Journal of Environmental Economics and Management. From the 3727 articles published between 2005 and 2010 in the ecological economics field, and the corresponding 142 thousand citations two main outcomes emerged: 1) the intellectual frame of reference is overwhelmed by economists and environmental and resources economists with (renowned) ecological economists relatively underrepresented; 2) the building of an integrative knowledge domain is not apparent: on the one hand, ecological economics is seen to be an 'unbound' heterodox and multidisciplinary field, but on the other hand, and somewhat awkwardly, it is (still) heavily 'bound' by quantitative mainstream/ orthodox methodologies. |
| Keywords: | ecological economics,philosophy of science,bibliometrics |
| JEL: | C18 C8 Y10 Q57 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201552&r=pke |
| By: | Janneke Plantenga |
| Abstract: | So far, the economic case for gender equality and female empowerment has gained stronger attention in the case of developing countries where women have far less rights and opportunities compared to developed ones. Hence, the grounds supporting gender equality have been much stronger and much more researched in the former. In developed countries, although there are still large differences in labour force participation, income and power, there is at least a growing equality in opportunity, making it less easy to analyse the existing gender inequality in terms of restrictions which need to be lifted in order to reach a fair and efficient division of work. This paper offers a review of the literature on the economics of gender equality by way of organising it along three propositions and two questions. This way it is possible to combine very different strands of literature, ranging from rather formal explorations within theoretical micro-economics, to more empirically oriented macro-economic research on economic growth, and rather heterodox contributions from feminist economics, illustrating the richness of the debate and the different positions that can be taken. |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2015:m:7:d:0:i:104&r=pke |
| By: | Elisa Van Waeyenberge (Department of Economics, SOAS, University of London, UK) |
| Abstract: | This paper provides a critical assessment of the Bankís housing policies, against the backdrop of far-reaching transformations of the financial sector across the world and a persistently dire shelter situation in developing countries. It situates the Bankís housing stance historically since its initial involvement in the sector in the early 1970s. This allows to shed light on systemic and analytical tendencies bearing on Bank housing policy with significant implications for the Bankís current policy stance, including its response (or lack thereof) to the dramatic experience with housing finance laid bare through the global financial and economic crisis. |
| Keywords: | finance, financialisation, housing, shelter, post-Washington Consensus World Bank |
| JEL: | R31 |
| URL: | http://d.repec.org/n?u=RePEc:soa:wpaper:191&r=pke |
| By: | Eva Fodor (Central European University); Daniel Horn (Institute of Economics - Centre for Economic and Regional Studies Hungarian Academy of Sciences) |
| Abstract: | Using the 2008 cross-sectional wave of the survey Statistics on Income and Living Conditions (EU-SILC) and multi-level modeling techniques, this paper explores the macro-level determinants of the gender poverty gap in the ten post-socialist European Union member states. In dialogue with the literature on the impact of economic development on gender inequality in Asia and Latin America, we find that fast-paced, foreign capital led economic growth is associated with a larger gender poverty gap in Central and Eastern Europe, while generous welfare policies, specifically higher levels of spending on pensions and family policies are correlated with women’s lower relative destitution. These findings evaluate the impact of neo-liberal style “economic development” on gender inequality in a geo-politically specific context and suggest that structural adjustment and global market integration may exacerbate women’s vulnerability even when they are well equipped with human capital and other resources to compete with men in the labor market. |
| Keywords: | economic development, poverty, gender, SILC |
| JEL: | J16 P36 I32 C21 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:1519&r=pke |
| By: | Soumyajit Mazumder |
| Abstract: | Where does precedent in international law come from? Because the efficacy of international courts depends on the efficiency with which they can deal with disputes, they must be able to deter future disputes. Deterrence rests on the availability of precedent (a public good), but because it is costly to generate precedent, powerful states must take on the cost of leadership. In this paper, I investigate the relationship between power and precedent by analyzing dispute settlement at the World Trade Organization (WTO). Borrowing insights from hegemonic stability theory, I argue that it is precisely the strategic nature of WTO dispute settlement that makes powerful states--namely, the United States (US)--willing to supply precedent. This theory accounts for three empirical insights regarding WTO dispute settlement: (1) the US, counterintuitively, tends to file low-stakes cases, (2) cases filed by the US yield a greater precedential value for the broader WTO membership than their counterparts, and (3) the US tends to shape the precedent that it does create in its favor. Statistical analysis using Bayesian estimation provides evidence in favor of the hypotheses. My results suggest that power undergirds the politics of WTO law. |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:qsh:wpaper:269356&r=pke |
| By: | Kakarot-Handtke, Egmont |
| Abstract: | When we characterize an argument that has no sound theoretical foundation as political, then what has been produced by economists so far is political economics. However, since the Classics and Marx all major economic schools have defended the claim that they were doing science. This claim has been convincingly rebutted. So, the task is still before us. The way forward is to move from behavioral to structural economics. In what we should be mostly interested are not so much the behavioral defects of economic agents but the structural defects of the market system and how to repair them. |
| Keywords: | new framework of concepts; structure-centric; price mechanism; profit mechanism; structural stress; inefficiency mechanism; monetary order; indexation; growth imperative; theory inflicted unemployment; distribution mechanism |
| JEL: | B49 B59 C63 E10 |
| Date: | 2015–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65666&r=pke |
| By: | Joana Castro Pereira (Lusíada University) |
| Abstract: | South America is one of the most vulnerable regions to climate change, whose impacts can undermine the continent’s development. Nevertheless, a) it is very rich on natural resources; b) hydroelectricity plays an important role in its electric energy matrix; and c) the regional carbon emissions profile focuses on deforestation, agriculture and cattle raising. Therefore, the continent has an intrinsic potential to move towards a low carbon economy. Since there is a strong possibility of productive complementarity between countries, green energy integration in the region may be the best path to meet some of the challenges that lie ahead. Brazil is the continent’s largest economy, largest market and the holder of the largest generating facilities, and has emerged as the dominant figure in the energy integration project. Furthermore, the country is the ‘green pole’ of the region and has used South America energy integration processes as key-elements for consolidating its regional leadership. Thus, it seemed fair to assert that Brazil had the potential to lead the continent to a low carbon economy. However, and even though there have always been obstacles to the achievement of such an ambitious goal, some significant challenges have recently arisen: the Pacific Alliance, which has been increasing Mexico’s influence over South America; and the Brazilian political, economic and social situations’ deterioration from 2013 until today. So, this paper aims to analyze these two challenges and understand how they jeopardize a regional green energy integration process in South America. |
| Keywords: | South-America, Energy Integration, Brazil, Pacific Alliance |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2604455&r=pke |
| By: | Christine Shiel (Bournemouth University); Debbie Cotton (Plymouth University); Arminda do Paco (University of Beira Interior) |
| Abstract: | The role of Higher Education (HE) in contributing to a sustainable future has been consistently highlighted in global policy documents. HE has a key role to play in: educating graduates who will live and manage more sustainably in the future; contributing to sustainable development through research; and reducing the environmental impact of estates and thus contributing to lower carbon emissions. In regard to the latter, initiatives led by the Estates function within institutions as part of campus greening, serve to reinforce for students that HE is responsive to environmental concerns and that behaviour change is important. Further, combined with integrating education for sustainability within the curriculum, energy conservation projects should ultimately contribute to behaviour change. However, very little research to date has evaluated whether Education for Sustainability (EfS) and energy conservation projects impact in this way on student behaviour. A supposition might be that the more effectively and comprehensively an institution addresses energy conservation in both the educational and extra-curricular spheres, the more likely it is that there will be a positive impact on behaviours. This study explores that proposition by comparing students’ energy-related attitudes and behaviours across three distinctly different institutions, two in the UK and one in Portugal. The two UK institutions have both championed EfS but with different approaches: one has acknowledged the need to integrate EfS with extra-curricular and co-curricular initiatives; the other has had less success with EfS and less integration between campus and curriculum. The Portuguese university has not developed a strategic approach in relation to sustainable development and has very little in the way of formal policies. Survey data from students at the three institutions is used to explore the similarities and differences between the student populations in terms of their energy-related attitudes, behaviours and particularly their perspectives on their institution’s energy saving activities. The results demonstrate that there are significant differences between the students’ responses and that these are likely to relate, in part, to the efforts, or lack of efforts made by each institution in particular areas. The conclusion suggests that there is value in combining EfS with extra-curricular initiatives but that this will require closer working relationships between academics and professional services staff within institutions. Future research might explore those factors that facilitate or inhibit such integrated ways of working. Robust measures for evaluating the extent to which particular sustainability initiatives and approaches influence behaviour change, need to be developed. |
| Keywords: | Education for Sustainability; Energy saving; Behaviours |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2604372&r=pke |
| By: | Joseph E. Stiglitz |
| Abstract: | This paper considers two central problems in our statistical frameworks which impair the ability to use wealth to assess economic sustainability or the impacts of economic downturns. Some increases in wealth may reflect increased economic rents—in particular, land and exploitation rents—and their capitalized value, unrelated to an increase in the productive capacity of the economy. Another major problem in our wealth accounts is the “missing capital” required to explain the marked decrease in economic output, at the time of the recession and in the years following, that cannot be fully accounted for by a decrease in measured inputs. When account is taken of this missing capital, the adverse effects of austerity appear much greater than suggested by the standard national income accounts. |
| JEL: | D31 E21 E22 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21327&r=pke |
| By: | Congressional Budget Office |
| Abstract: | CBO and the staff of the Joint Committee on Taxation have analyzed the main budgetary and economic effects of repealing the Affordable Care Act and concluded that doing so would probably increase federal deficits over the next decade, whether or not macroeconomic feedback to the budget is included. Such feedback would reduce deficits, but would not offset the increases in deficits stemming from the other effects of repealing the ACA. |
| JEL: | H20 H40 I11 I13 I18 |
| Date: | 2015–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:50252&r=pke |