nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2016‒07‒30
six papers chosen by
Karl Petrick
Western New England University

  1. Transitioning towards a low-carbon economy in Mexico: An application of the ThreeMe model By Gissela Landa
  2. Towards a theory of regional diversification By Ron Boschma, Lars Coenen, Koen Frenken, Bernhard Truffer; Lars Coenen; Koen Frenken; Bernhard Truffer
  3. If you’re so smart: John Maynard Keynes and currency speculation in the interwar years By Olivier Accominotti; David Chambers
  4. Primary Commodity Booms and Busts Emerging Lessons from Sub-Saharan Africa By UNDP Regional Bureau for Africa
  5. Absolute Poverty: When Necessity Displaces Desire By Robert Allen
  6. Journalistic representations of Jeremy Corbyn in the British Press: from "watchdog" to "attackdog" By Bart Cammaerts; Brooks DeCillia; João Magalhães; César Jiménez-Martínez

  1. By: Gissela Landa (Observatoire français des conjonctures économiques)
    Abstract: This document offers an empirical application of the notion of energy transition to the Mexican economy and it takes the next step of simulating medium- and long-term impacts of proposed and future energy and fiscal policy on the environment and the Mexican economy. The starting point of the analysis is the ThreeME framework, a Multi-sectoral Macroeconomic Model based on Keynesian theory. It is designed to address the dynamics of global economic activity, energy system development and carbon emissions causing climate change. The ThreeME model is well- suited for policy assessment purposes in the context of developing economies as it informs the transitional effects of policy intervention. In particular, disequilibrium can arise in the form of involuntary unemployment, the inertia of technical systems and rigidity in labor and energy markets as a result of delayed market clearing in the goods markets and slow adjustment between prices and quantities over the simulation time path.
    Keywords: environment; low carbon; model
    JEL: Q4 Q43
    Date: 2015–11
  2. By: Ron Boschma, Lars Coenen, Koen Frenken, Bernhard Truffer; Lars Coenen; Koen Frenken; Bernhard Truffer
    Abstract: This paper aims to develop a theoretical framework on regional diversification. Combining insights from the evolutionary economic geography literature and the transition literature, we argue that a theory of regional diversification should build on the current understanding of conditions for related diversification but additionally start to tackle processes of unrelated diversification by accounting for (1) the role of agency (institutional entrepreneurship) and the dynamic interplay between agency and context; (2) enabling and constraining factors at various spatial scales. We propose a typology of four regional diversification processes by cross-tabulating related versus unrelated diversification with niche creation versus regime adoption.
    Keywords: evolutionary economic geography, transition studies, regional diversification, unrelated diversification, institutional entrepreneurship, institutional change
    JEL: B52 O18 R11
    Date: 2016–07
  3. By: Olivier Accominotti; David Chambers
    Abstract: This article explores the risks and returns to currency speculation during the 1920s and 1930s. We study the performance of two well-known technical trading strategies (carry and momentum) and compare them with that of a fundamentals-based trader: John Maynard Keynes. Technical strategies were highly profitable during the 1920s and even outperformed Keynes. In the 1930s, however, both technical strategies and Keynes performed relatively poorly. While our results reveal the existence of profitable opportunities for currency traders in the interwar years, they suggest that such profits were necessary compensation for enduring the substantial risks that all strategies entailed.
    Keywords: carry; momentum; foreign exchange; currency markets; currency crises
    JEL: F31 G14 G15 N22 N24
    Date: 2016–05–18
  4. By: UNDP Regional Bureau for Africa (UNDP Regional Bureau for Africa)
    Abstract: Commodity boom is one of the major drivers of economic growth in Africa over the past decade. Most African countries experienced appreciable growth to the extent that sub-Saharan Africa was rated as the second fastest growing region globally between 2000 and 2010. Over the past one year, however, the rising trend of commodity prices is giving way to a declining trend. Most of the primary commodities such as gold, iron ore, crude oil, cotton and cereal that have been sustaining most countries have experienced tumbling prices since October 2013.
    Keywords: Africa; Commodity
    JEL: D13
    Date: 2015–10
  5. By: Robert Allen (New York University ABU Dhabi, UAE)
    Abstract: This paper proposes a new method for defining an international poverty line based on explicit budgeting. The novel feature is that linear programming is used to deduce the diet that minimizes cost and guarantees survival. Nonfood items are also explicitly budgeted and amount to about one quarter of the cost of subsistence. A series of least cost diets are calculated with increasingly demanding nutritional requirements for twenty countries using prices from ICP 2011. The aim is to see which requirements rationalize the spending pattern of the poor. The ‘reduced basic’ model does the job. When the cost of the nonfood items are added to the cost of the ‘reduced basic’ diet, the resulting Linear Programming Poverty Line (LPPL) averages $1.88 per day across the poor countries in the sample. The same model rationalizes both the spending pattern of the poor and the World Bank Poverty Line. The LPPL has the advantages that it is (1) clearly related to survival and well being, (2) comparable across time and space since the same nutritional requirements are used everywhere, (3) adjusts consumption patterns to local prices, (4) presents no index number problems since solutions are always in local prices, and (5) requires only readily available information, namely, the prices in ICP or equivalent.
    Keywords: absolute poverty, diet problem, linear programming, World Bank poverty line
    JEL: I12 I32
  6. By: Bart Cammaerts; Brooks DeCillia; João Magalhães; César Jiménez-Martínez
    Abstract: Academic report on journalistic representations of Jeremy Corbyn.
    JEL: L91 L96
    Date: 2016

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