nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2016‒06‒25
eight papers chosen by
Karl Petrick
Western New England University

  1. Expectations and Stability in the Kaleckian Growth Model By Gilberto Tadeu Lima; Mark Setterfield
  2. Narrativity from the Perspectives of Economics and Philosophy: Davis, Ross, Multipleselves Models... and Behavioral Economics By Tom Juille; Dorian Jullien
  3. Makroökonomische/Sozialpolitische Perspektiven auf die Sozialpolitik/Makroökonomie By Klüh, Ulrich
  4. Social Inclusion in macro-level diagnostics : reflecting on the World Bank Group's early systematic country diagnostics By Das,Maitreyi
  5. "Why has economics turned out this way?": A socio-economic note on the explanation of monism in economics By Heise, Arne
  6. Carbon pricing under binding political constraints 1 and By José Antonio Ocampo
  7. What Role for Civil Society Coalitions in Supranational Governance? By Alemanno, Alberto
  8. How Does Declining Unionism Affect the American Middle Class and Intergenerational Mobility? By Freeman, Richard Barry; Han, Eunice; Madland, David; Duke, Brendan

  1. By: Gilberto Tadeu Lima (Department of Economics, University of São Paulo); Mark Setterfield (Department of Economics, New School for Social Research)
    Abstract: A central element in the canonical Kaleckian growth model is the demand-led output-adjustment stability condition known as the Keynesian stability condition. This condition requires that, all else constant, saving be more responsive to changes in capital capacity utilization than investment. This paper further explores the plausibility of the Keynesian stability condition by enriching the Kaleckian growth model with a more fully developed Keynesian theory of expectations formation. As a result, the responsiveness of investment to changes in capacity utilization is reduced, and through mechanisms that have clear and plausible behavioural underpinnings. It therefore becomes more likely (in principle) that the Keynesian stability condition will hold in practice. The paper also explores the consequences of such re-specification of investment behaviour for certain comparative static results associated with the canonical Kaleckian growth model.
    Keywords: Keynesian stability condition, expectations, Kaleckian growth model
    JEL: B50 E12 E22
    Date: 2016–04
  2. By: Tom Juille (University of Nice Sophia Antipolis; GREDEG CNRS); Dorian Jullien (University of Nice Sophia Antipolis; GREDEG CNRS)
    Abstract: Narrativity broadly refers to the way humans construct and use stories, be them the widely known ones in a given culture or the more private ones people tell to each other or to themselves. The main goal of this paper is to clarify the extent to which the notion of narrativity can play a role in economic analysis with respect to the representation of economic agents in models of individual behaviors. To do so, we scrutinize a set of contributions from a twofold perspective. From the perspective of economics, we seek to clarify the issues regarding which we, as economists, should be interest in narrativity. From the perspective of philosophy, we, as economic methodologists or philosopher of economics, seek to clarify the conceptual issues inherent to the notion of narrativity that are not trivial or can be of some use for economic analysis. To some extent, this twofold perspective on narrativity and economics has already been taken by John Davis (2009; 2011) and Don Ross (2005; 2014), who use the notion of narrativity to account for individuals’ sense of a unified self and identity, notably with respect to the recent surge of multipleselves models in economics. We propose to further Davis’ and Ross’ efforts in at least three respects: firstly, through a comparative study of their contributions focused on narrativity from the perspective of economics; secondly, by discussing the connections between their contributions and the set of existing contributions related to narrativity in behavioral economics that none of them discuss; and, thirdly, by taking, at least for the sake of argument, a philosophically critical perspective on narrativity.
    Keywords: narrativity, economic rationality, multipleselves models, behavioral economics, economics and philosophy
    JEL: B41 B49 D01 D03 E20
    Date: 2016–06
  3. By: Klüh, Ulrich
    Abstract: Two opposing positions are frequently evoked to describe the relationship between macroeconomics and social policy. On the one hand, social policy is seen as a kind of service station. Macroeconomic programs and results are determined first, social policy deals with the consequences. On the other hand, there is a holistic approach of Keynesian provenience that situates macroeconomics in the broader research agenda for social policy. At the same time, points of contact between macroeconomics and social policy are rare. Sometimes there even seems to be a dichotomous relationship. How can we then describe the role of social policy in a macroeconomic context, and the role of macroeconomics in a social policy context? The article reviews pertinent links between the two fields and proposes a heuristic for re-engaging the macro and social dimension of policy.
    Keywords: Macroeconomics, Social Policy, Macro-regimes, Keynesianism
    JEL: A1 B0 B5 E0 E6 H0 I3 N0
    Date: 2016
  4. By: Das,Maitreyi
    Abstract: The idea of social inclusion has garnered considerable attention, especially in the context of two recent developments: the Sustainable Development Goals and the heightened attention to inequality. This paper reviews the manner and extent to which social inclusion is addressed in the first 17 Systematic Country Diagnostics (SCDs), which are ex ante, country-level assessments conducted by the World Bank Group, ahead of the preparation of its Country Partnership Frameworks. In addition to this primary purpose, the paper fulfils three other purposes. It allows for a broader reflection on the value of the social inclusion construct in macro-level diagnostics; it takes the opportunity to develop and refine a methodology to assess social inclusion and finally, it positions the narrative on social inclusion into the ongoing discourse on poverty, shared prosperity, inequality and the thinking around the implementation of the Sustainable Development Goals. It is therefore, a refined articulation of the idea of social inclusion in the context of global epistemological shifts
    Keywords: Banks&Banking Reform,Race in Society,Disability,Social Cohesion,Population Policies
    Date: 2016–06–20
  5. By: Heise, Arne
    Abstract: The economic science has - lamented by some, applauded by others - turned into a monistic discipline. In this short research note, a socio-economic answer to the question of why this happened is provided by combining an economic approach to the market for economic ideas with a sociological approach of a scientific (power) field.
    Keywords: Pluralism,Monism,Standardization,Regulation
    JEL: B59 D43 I23 L15 Z13
    Date: 2016
  6. By: José Antonio Ocampo
    Abstract: This paper looks at historical and current frameworks to manage macroeconomic linkages among economies. It considers first the evolving nature of global payments imbalances. It then focuses on the mechanisms of macroeconomic dialogue and cooperation put in place at different times to guarantee the consistency of the macroeconomic policies of major economies. These mechanisms have operated sometimes within the International Monetary Fund, but generally outside its institutional framework, and in recent years through the Group of Twenty. Finally, it analyses the functioning of the original Bretton Woods exchange rate system and its replacement in the early 1970s by a veritable .non-system.
    Keywords: global imbalances, macroeconomic policy co-ordination, exchange rate system, International Monetary Fund, Group of Twenty
    Date: 2016
  7. By: Alemanno, Alberto
    Abstract: Beyond Networks critically dissects and systematizes an insightful, well-researched and elegantly written account of the democratic potential carried out by coalitions of civil society actors. Once established a case for studying coalitions of civil society organization through the lens of Global Administrative Law, the book eventually unveils its underlying research question. This volume specifically attempts to explain how civil society networks – which are studied within the broader notion of Global Civil Society (GSC) – drive the development of principles of democratic value at the supranational level. It does so within the broader debate about new modes of global governance and in particular that of experimentalist governance. It proceeds to theorize an autonomous organization network model within GSC: the so-called 'interlocutory coalitions'. Those coalitions are typically made of diverse category of entities whose major – sometimes solely – common feature is the cross-border pursuit of a common cause. In order to build an original and valuable taxonomy of civil society networks, interlocutory coalitions must be contrasted to other forms of networks, including social networks, trans-governmental committees, think tanks, Parallel Summits and QUANGOs. After reconstructing their respective composition, membership, rules of governance and legal status, the book delves into interlocutory coalitions' decision-making. How do coalitions presenting high degree of variation when it comes to their mission, governance, funding and membership coalesce around one common cause? How do they come to existence and get along? How can such coalitions speak with one voice when representing and advocating their common position in front of the relevant international organizations? What kind of techniques and deliberative mechanisms are used to attain a common position and then convey it to the outside world? This book provides a rigorous, constructive and promising stepping stone to embark on such a challenging journey. Yet the case for a global participatory democracy remains to be made.
    Keywords: Open government; Transparency; Participation; Civic empowerment; Coalitions; Legitimacy; Accountability; Civil society; European Union; Good governance
    JEL: K19 K33
    Date: 2016–02–08
  8. By: Freeman, Richard Barry; Han, Eunice; Madland, David; Duke, Brendan
    Abstract: This paper examines unionism’s relationship to the size of the middle class and its relationship to intergenerational mobility. Panel Study of Income Dynamics (PSID) 1985 and 2011 files are used to examine the change in the share of workers in a middle-income group (defined by persons having incomes within 50 percent of the median) and use a shift-share decomposition to explore how the decline of unionism contributes to the shrinking middle class. The files are also used to investigate the correlation between parents’ union status and the incomes of their children. Additionally, federal income tax data is used to examine the geographical correlation between union density and intergenerational mobility. Findings include that union workers are disproportionately in the middle-income group or above, and some reach middle-income status due to the union wage premium; the offspring of union parents have higher incomes than the offspring of otherwise comparable non-union parents, especially when the parents are low-skilled; and offspring from communities with higher union density have higher average incomes relative to their parents compared to offspring from communities with lower union density. These findings show a strong, though not necessarily causal, link between unions, the middle class, and intergenerational mobility.
    Date: 2016

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