nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2016‒06‒18
seven papers chosen by
Karl Petrick
Western New England University

  1. Long-run convergence in a neo-Kaleckian open-economy model with autonomous export growth By Won Jun Nah; Lavoie, Marc
  2. Le retour de l’économie keynésienne By Xavier Ragot
  3. Pluralism in economics: Inquiries into a Daedalean concept By Heise, Arne
  4. Monopoly Capital and Capitalist Management: Too Many Managers? By Lambert, Thomas
  5. How economics got it wrong: Formalism, equilibrium modelling and pseudo-optimization in banking regulatory studies By Aldegwy, Mohamed; Thiemann, Matthias
  6. China in Between Varieties of Capitalism and Communism By Maria Csanadi
  7. “Retaking a course in Economics: Innovative methodologies to simulate academic performance in large groups” By Gemma Abió; Manuela Alcáñiz; Marta Gómez-Puig; Gloria Rubert; Mónica Serrano; Alexandrina Stoyanova; Montserrat Vilalta-Bufí

  1. By: Won Jun Nah; Lavoie, Marc
    Abstract: A simple neo-Kaleckian open-economy model is presented and its implications for growth regimes are analyzed. The present model features long-run convergence to its normal rate of capacity utilization, which is conditionally achieved by incorporating the Harrodian principle of instability and autonomous growth in foreign demand. It is demonstrated that some aspects of the main Kaleckian results can be preserved not only in the short run but also in the long run, in the sense that both (i) a decrease in the propensity to save, and (ii) a change in income distribution favoring labor, bring about higher average rates of production growth and capital accumulation. However, the long-run impact of a change in the profit share is shown to be subjected to the condition that the responsiveness of the real exchange rate with respect to the profit share has to be bounded from above, confirming that the scope for wage-led demand or wage-led growth can be limited by open-economy considerations.
    Keywords: neo-Kaleckian,growth,capacity utilization,exports,profit share,real exchange rate
    JEL: E11 F41 O41
    Date: 2016
  2. By: Xavier Ragot (OFCE)
    Abstract: Pre-crisis standard macroeconomic models, qualified as neo Keynesian, rely more on the concept of natural rate of interest than on global demand. But new insights in macroeconomic theory build far more realistic models, especially as regards labour and good and services markets. These models renew with the Keynes intuitions – under-consumption, savings paradox – and are more suitable to reality confrontation. The Keynesian or neo-classical pattern should no more be a political or theoretical stake but rather an empirical one. For example, recent econometric studies highlight that the American economy behaves as Keynesian during the biggest crisis but as non Keynesian during smaller ones. This should be a guide for policy makers.
    Keywords: Keynesian; Policy makers; Keynes intuition
    JEL: E12 E13 E17
    Date: 2016–03
  3. By: Heise, Arne
    Abstract: The state of contemporary economics had been a subject of discussion even before the most recent global financial crisis. The one-sidedness of the discipline has frequently been lamented and calls are often made for its pluralisation. Nevertheless, there is neither a consensus over the form of pluralism that is required (whether this is a theory, method, or paradigm pluralism, for example), nor agreement among economists over the underlying diagnosis of a lack of pluralism. Even the justification for this pluralistic norm - i.e. whether it should be seen in terms of an ethics of fairness and tolerance or as the imperative of academic freedom - remains disputed and is often unclear. The present paper aims to shed some light on these ambiguities.
    Keywords: pluralism,philosophy of science,heterodoxy,orthodoxy,mainstream
    JEL: B40 B41 B50
    Date: 2016
  4. By: Lambert, Thomas
    Abstract: The mainstream or neoclassical economics view that labor is rewarded according to its productivity has been extended to managers and management teams as justification for the levels of compensation that they receive. Additionally, the management concept of “span of management” has been used to explain the total number of and per employee number of managers in any organization along with the economics assumption that the appropriate span of management is where the marginal productivity of the last manager employed equals his/her marginal cost, or wage. On the other hand, Marxists and institutionalists hold different views of the roles and purposes of managers within organizations and attempt to explain these through either the view of managers exploiting workers on behalf of owners or the view of managers exploiting both workers and owners in order to advance their own agenda. This research note examines managerial compensation and intensity from both traditional/mainstream and alternative views by focusing on measures of managerial salaries, employee productivity, return on owners’ equity, return on assets, and rates of workers exploitation.
    Keywords: bureaucracy, economic systems, managers, and productivity
    JEL: B51 D24
    Date: 2016–06–14
  5. By: Aldegwy, Mohamed; Thiemann, Matthias
    Abstract: Since the outbreak of the financial crisis, the macro-prudential policy paradigm has gained increasing prominence (Bank of England, 2009; Bernanke, 2011). The dynamics of this shift in the economic discourse, and the reasons this shift has not taken place prior to the crisis have not been addressed systemically. This paper investigates the evolution of the economic discourse on systemic risk and banking regulation to better understand these changes and their timing. Further, we use our sample to inquire whether, and if so, why the economic regulatory studies failed to recommend a reliable banking regulation prior to the crisis. By following a discourse analysis, we establish that the economic discourse on banking regulation has not been suitable for providing the knowledge basis required for a dynamically reliable banking regulation, and we identify the underlying reasons for such failure. These reasons include the obsession of economic discourse with optimization and particular forms of formalism, particularly, partial equilibrium analysis. Further, the economic discourse on banking regulation excludes historical and practitioners' discourses and ignores weak signals. We point out that post-crisis, these epistemological failures of the economic discourse on banking regulation were not sufficiently recognized and that recent attempts to conceptualize systemic risk as a negative externality and to thus price it point to the persistence of formalism, equilibrium thinking and optimization, with their attending dangers.
    Keywords: Sociology of Finance,Optimal Regulation,Dynamic and Reliable Regulation,Banking Regulation,Financial Crisis
    Date: 2016
  6. By: Maria Csanadi (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)
    Abstract: This paper is challenging mainstream views about the contemporary Chinese system as a developmental state and a variety of capitalism. Based on a comparative analytical model (Csanádi, 1997, 2006) I will demonstrate that in China the general features of a communist system prevail to date, and that the „Chinese specifics” is a structural variety of those general features. I will point out why the Chinese system is neither capitalist nor post-socialist. Instead, it is a complex party-state system in the process of transformation comparable, but not identifyable - to all other party-state systems in their period of operation and transformation. Mainstream concepts of Chinese developmental state, state capitalism, socialist market economy, emerging system, hybrid system variegated capitalism, polymorphous state, centralized developmental autocracy, entrepreneurial state, instrumental development state and clientelist state may be detected embedded in and accomodated to this complex and transforming party-state system.
    Keywords: developmental state, variety of capitalism, party-state system, network, power distribution, China
    JEL: P1 P2 P3 P5
    Date: 2016–01
  7. By: Gemma Abió (AQR Research Group-IREA. University of Barcelona); Manuela Alcáñiz (AQR Research Group-IREA. University of Barcelona); Marta Gómez-Puig (AQR Research Group-IREA. University of Barcelona); Gloria Rubert (AQR Research Group-IREA. University of Barcelona); Mónica Serrano (AQR Research Group-IREA. University of Barcelona); Alexandrina Stoyanova (AQR Research Group-IREA. University of Barcelona); Montserrat Vilalta-Bufí (AQR Research Group-IREA. University of Barcelona)
    Abstract: Students who have to retake courses at university are often not only low-achieving, but also unmotivated and lacking self-confidence. These problems may be accentuated in large groups of repeater students. In this context, the implementation of new teaching approaches to cater for their needs is a priority. This paper reports the experience of a teaching strategy based on the implementation of flipped classroom, team-based learning, and frequent testing methodologies in large groups of students retaking a subject. The study was carried out during the academic years 2013/14 and 2014/15 at the Faculty of Economy and Business, University of Barcelona (Spain). The results reflect a significant increase in the motivation and academic performance of these students, and validate the application of this strategy in large groups.
    Keywords: Teaching innovation; flipped classroom;team based learning; frequent testing; large groups; retake subjects; economics. JEL classification: A20; A22
    Date: 2016–04

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