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on Post Keynesian Economics |
| By: | Karwowski, Ewa (Kingston University London); Shabani, Mimoza (University of East London and School of Oriental and African Studies); Stockhammer, Engelbert (Kingston University London) |
| Abstract: | The financialisation literature has grown over the past two decades. While there is a generally accepted definition, effectively financialisation has been used to describe very different phenomena. This paper proposes a multi-faceted notion of financialisation by distinguishing between financialisation of non-financial companies, households and the financial sector and using activity as well as vulnerability measures of financialisation. We identify seven financialisation hypotheses in the literature and empirically investigate them in a cross-country analysis for 17 OECD countries for the 1997-2007 period. We find that different financialisation measures are only weakly correlated, which suggests the existence of distinct financialisation processes. There is strong evidence across all sectors that financialisation is closely linked to asset price inflation and correlated with a debt-driven demand regime. Financial deregulation encourages financialisation, especially in the financial and household sector. By contrast, there is limited evidence that market-based financial systems tend to be more financialised, meaning financialisation can occur with large banks. Foreign financial inflows do not seem to be a main driver. We do not find indication that a secular investment slowdown precedes financialisation. Overall, our findings suggest that financialisation should be understood as variegated process, playing out differently across economic sectors in different countries. |
| Keywords: | financialisation; cross country analysis; financial deregulation; property prices |
| JEL: | B50 B51 G10 G20 G30 P51 |
| Date: | 2017–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kngedp:2017_001&r=pke |
| By: | Pilon, André Francisco |
| Abstract: | In view of the overwhelming pressures on the global environment and the need to disrupt the systems that drive them, an ecosystemic theoretical and practical framework is posited for the evaluation and planning of public policies, research and teaching programmes, encompassing four dimensions of being-in-the-world (intimate, interactive, social and biophysical), as they combine, as donors and recipients, to induce the events (deficits/assets), cope with consequences (desired/undesired) and contribute for change (potential outputs). The focus should not be on the “bubbles” of the surface (consequences, fragmented issues), but on the configurations deep inside the boiling pot where the problems emerge. New paradigms of development, growth, power, wealth, work and freedom, embedded at institutional level, include heterogeneous attributes, behaviours and interactions and the dynamics of the systems (institutions, populations, political, economic, cultural and ecological background). Instead of dealing with the bubbles (segmented, reduced issues) and trying to solve isolated and localized problems without addressing the general phenomenon, the proposal emphasizes the definition of the problems deep inside the “boiling pot”, where the problems emerge, encompassing the current “world-system” with its boundaries, structures, techno-economic paradigms, support groups, rules of legitimation, and coherence. In the socio-cultural learning niches, heuristic-hermeneutic experiences generate awareness, interpretation and understanding beyond established stereotypes, both from a thematic (“what”) and an epistemic point of view (“how”). |
| Keywords: | education, culture, politics, economics, ethics, environment, ecosystems |
| JEL: | I00 I25 I28 I29 O21 O31 Q2 Q28 Q5 Q51 Q56 Q57 Q58 |
| Date: | 2016–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76172&r=pke |
| By: | Daniele Tavani (Department of Economics, Colorado State University.); Luca Zamparelli (Department of Social Sciences and Economics, Sapienza University of Rome) |
| Abstract: | This paper surveys the last two and a half decades of non-neoclassical literature on endogenous technical change and the factor distribution of income. The implications of classical- Marxian and post-Keynesian contributions are compared with neoclassical exogenous and endogenous growth theories. We find the comparison illuminating in several respects: despite the strong differences in the assumptions regarding the substitutability between capital and labor, the role of different classes in society, and whether or not productive factors are fully employed, the various alternative models can be classified in a way that highlights remarkable similarities with their neoclassical counterparts. Both neoclassical and alternative theories of endogenous growth: (i) have shown that long-run growth is sensitive to investment decisions; (ii) rely on a linear spillover from the stock of knowledge to the production of innovations, and (iii) match the Kaldor facts in the long run. The comparison allows to evaluate competing theories by looking at the different channels they emphasize: saving behavior and market structure in the neoclassical theories, as opposed to income distribution, the state of the labor market, and investors’ behavior in alternative theories. |
| Keywords: | Endogenous technical change, neoclassical growth, alternative theories, income distribution. |
| JEL: | B50 D33 O33 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:saq:wpaper:1/17&r=pke |
| By: | Christian Schoder (Department of Economics, New School for Social Research) |
| Abstract: | A Dynamic Stochastic Disequilibrium (DSDE) model is proposed for business cycle analysis. Unemployment arises from job rationing due to insucient aggregate spending. The nominal wage is taken as a policy variable subject to a collective Nash bargaining process between workers and rms with the state of the labor market a ecting the relative bargaining power. A precautionary saving motive arising from an uninsurable risk of permanent income loss implies an equilibrium relation between consumption, income and wealth. The DSDE model di ers from the corresponding Dynamic Stochastic General Equilibrium (DSGE) model with labor market clearing in important respects: (i) Output is determined from the demand side and not from the supply side; (ii) The steady-state interest rate cannot be interpreted as a natural rate; (iii) It has to be smaller than the rate of economic growth in order for a steady state to exist; (iv) Determinacy of the solution requires the monetary policy response to in ation to be high (low) at low (high) steady-state interest rates; (v) Fighting in ation is stabilizing in the active monetary policy regime but destabilizing in the passive monetary policy regime; (vi) Macroeconomic responses to monetary policy and productivity shocks are similar to those of the DSGE model but give more weight to quantity adjustment and predict the real wage to increase with productivity. |
| Keywords: | Dynamic stochastic disequilibrium, labor market disequilibrium, labor rationing, collective wage bargaining, monetary policy |
| JEL: | B41 E12 J52 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:new:wpaper:1701&r=pke |
| By: | Ivo J. Leke (Heverlee, Belgium); Simplice Asongu (Yaoundé, Cameroon) |
| Abstract: | The purpose of this study is to dispel some myths associated with migrants in order to improve socio-economic appraisal of the consequences of the recent surge of migrants into Europe. We argue that: (i) the concern about loss of Christian cultural values is lacking in substance because compared to a relatively near historical epoch or era, very few European citizens do go to Church in contemporary Europe; (ii) the threat to European liberal institutions is falsifiable and statistically fragile because it is not substantiated with significant evidence; (iii) the insignificant proportion of the Moslem population that is aligned with Islamic fundamentalism invalidates the hypothesis on importation of radical Islamic fundamentalism and (iv) the concern about social security burden is relevant only in the short-term because of Europe’s ageing population. |
| Keywords: | Migration; the European Union; Development |
| JEL: | F20 J61 J83 K31 O15 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:16/053&r=pke |
| By: | Iain Begg |
| Keywords: | Referendum; EU-Mitgliedschaft; Exit-Strategie; Großbritannien; EU-Staaten; Eurozone |
| JEL: | F15 F59 I31 O10 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:68861&r=pke |