nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2017‒05‒14
nine papers chosen by
Karl Petrick
Western New England University

  1. Endogenous money: an heterodox synthesis (In French) By Léo MALHERBE
  2. The Ideological Roots of Institutional Change By Iyigun, Murat; Rubin, Jared
  3. Vigencia de las ideas de Keynes en relación con la crisis financiera By Antonio Torrero Mañas
  4. On the Joint Evolution of Culture and Institutions By Alberto Bisin; Thierry Verdier
  5. The Czech Government?s Strategy for Fighting Inequality By Mikulas Pichanic; Anna Stankova
  6. Reinventing the American Wine Industry: Marketing Strategies and the Construction of Wine Culture By Ai Hisano
  7. The role of culture in urban contexts By Giuseppe Cornelli
  8. Economic Geography in R: Introduction to the EconGeo package By Pierre-Alexandre Balland Author-X-Name-First: Pierre-Alexandre
  9. The Sequencing of Gift Exchange: A Field Trial By Carpenter, Jeffrey P.

  1. By: Léo MALHERBE
    Abstract: Firstable we shall present the contemporary genesis of endogenous money concept. In doing so we will show that endogenous money theory arised within the post-keynesian school of thought by simultaneously accepting some key points and spotlighting some weaknesses of the Keynesian theory. Thereafter, endogenous money had been a very controversial issue among post-keynesian litterature. We shall look back at the two major controversies that took place : at first between horizontalists and structuralists, then between the evolutionary and the revolutionary view on endogenous money.\r\nWe will see that despite the existence of numerous internal debates, post-keynesian’s endogenous money theory entails some conceptual and methodological limits. That’s why we shall intend to clarify this concept by including some heterodox theoretical inputs such as those made by French institutionalists and the regulation school for instance.\r\nIn that way, we will propose in the last part of this paper what we called an under-determined endogenous money theory, aimed at achieving an heterodox synthesis on this topic.
    Keywords: Endogenous money, Monetary creation, Bank loans, Post-Keynesian theory, Instituionalism, Regulation school
    JEL: E12 E42 E58 B25 B41 B5
    Date: 2017
  2. By: Iyigun, Murat (University of Colorado, Boulder); Rubin, Jared (Chapman University)
    Abstract: Why do some societies fail to adopt more efficient institutions in response to changing economic conditions? And why do such conditions sometimes generate ideological backlashes and at other times lead to transformative sociopolitical movements? We propose an explanation that highlights the interplay – or lack thereof – between new technologies, ideologies, and institutions. When new technologies emerge, uncertainty results from a lack of understanding how the technology will fit with prevailing ideologies and institutions. This uncertainty discourages investment in institutions and the cultural capital necessary to take advantage of new technologies. Accordingly, increased uncertainty during times of rapid technological change may generate an ideological backlash that puts a higher premium on traditional values. We apply the theory to numerous historical episodes, including Ottoman reform initiatives, the Japanese Tokugawa reforms and Meiji Restoration, and the Tongzhi Restoration in Qing China.
    Keywords: ideology, institutions, conservatism, beliefs, uncertainty, institutional change, technological change
    JEL: D02 N40 N70 O33 O38 O43 Z10
    Date: 2017–04
  3. By: Antonio Torrero Mañas
    Abstract: Este año se cumple una década desde el inicio de la crisis financiera actual. Seguimos tratando de comprender las causas de la perturbación y sus consecuencias. En ese proceso han vuelto a considerarse útiles las aportaciones de Keynes, en especial sus observaciones no incluidas en la síntesis neoclásica. En este trabajo el Profesor Torrero revisa la vigencia de esas ideas en relación con la crisis financiera. Concede especial importancia a que en las décadas anteriores a la crisis tuvo lugar un progresivo deslizamiento tratando como riesgo medible situaciones de incertidumbre. Las ideas de Keynes al respecto pueden inspirar la reflexión propia para ayudar a comprender una crisis extraordinariamente importante.
    Keywords: John M. Keynes, crisis financiera, riesgo, incertidumbre, instituciones financieras y regulación
    Date: 2017–05
  4. By: Alberto Bisin (New York University); Thierry Verdier (Paris School of Economics)
    Abstract: Explanations of economic growth and prosperity commonly identify a unique causal effect, e.g., institutions, culture, human capital, geography. In this paper we provide instead a theoretical modeling of the interaction between culture and institutions and their effects on economic activity. We characterize conditions on the socio-economic environment such that culture and institutions complement (resp. substitute) each other, giving rise to a multiplier effect which amplifies (resp. dampens) their combined ability to spur economic activity. We show how the joint dynamics of culture and institutions may display interesting non-ergodic behavior, hysteresis, oscillations, and comparative dynamics. Finally, in specific example societies, we study how culture and institutions interact to determine the sustainability of extractive societies as well as the formation of civic capital and of legal systems protecting property rights.
    Keywords: cultural transmission, evolution of institutions
    JEL: O10 P16 P48
    Date: 2017–05
  5. By: Mikulas Pichanic (University of Economics, Prague); Anna Stankova (University of Economics, Prague)
    Abstract: Defenders of globalization often argue that, whatever distress it may cause for the rich-world workers, it has been good for poor or less affluent countries. The inequality as measured by the distribution of income between the rich and poor countries, has globally narrowed. But within each country, the story is less pleasing. We may use three different arguments to support this conclusion: 1) differentiation among workers. A-skilled workers in rich countries; B-low skilled workers in rich countries; C-high-skilled workers in poor countries; D-low-skilled workers in poor countries. The new slogan originating in the Silicon Valley works with the ?gig economy? and with the appearance of the new workers category - contract workers. 2) growth of crony capitalism (measured by the crony capitalism index). 3) social and economic mobility. The authors came to the conclusion that inequality of workers in the Central European post-communist countries will never reach the income level corresponding to their counterparts of groups A and B in the developed economies of the EU and the inequality in the Czech Republic contrary to the general accepted opinion about egalitarian society has been growing.
    Keywords: Keywords: Globalization, Inequality, Income, Gig Economy, Categories of Workers, Crony Capitalism, Automated Systems
    JEL: D60 D31 D33
    Date: 2017–04
  6. By: Ai Hisano (Harvard Business School, General Management Unit)
    Abstract: This working paper examines the remarkable growth of wine consumption in the United States since the 1960s. The country is now the largest wine consumer in the world, exceeding the wine-producing European countries such as France and Italy, which had long dominated world markets. The paper identifies the late 1960s and 1970s as the major turning point by analyzing the role of businesses in reinventing the image of wine from a cheap and very alcoholic beverage to a sophisticated natural product, and a fine accompaniment for gourmet food. By creating wine as a symbol of social status, the reimagined wine industry became a reinforcer of social and class divisions in the United States.
    Date: 2017–05
  7. By: Giuseppe Cornelli
    Abstract: This short paper aims to analyse from an interdisciplinary perspective the role of culture, cultural institutions and cultural actors in the urban scenarios. The main goal is to underline that this type of analysis have to take in consideration several academic disciplines: in particular, the analysis will be done from the point of view of public art, urban sociology, urban geography and economics of culture in order to provide a comprehensive tretment of the subject.
    Keywords: Culture; Urban context; Urban geography; Interdisciplinary; Economics of culture;
    JEL: R11 R58 Z10
    Date: 2017–03
  8. By: Pierre-Alexandre Balland Author-X-Name-First: Pierre-Alexandre
    Abstract: The R statistical software is increasingly used to perform analysis on the spatial distribution of economic activities. It contains state-of-the-art statistical and graphical routines not yet available in other software such as SAS, Stata, or SPSS. R is also free and open-source. Many graduate students and researchers, however, find programming in R either too challenging or end up spending a lot of their precious time solving trivial programming tasks. This paper is a simple introduction on how to do economic geography in R using the EconGeo package (Balland, 2017). Users do not need extensive programming skills to use it. EconGeo allows to easily compute a series of indices commonly used in the fields of economic geography, economic complexity, and evolutionary economics to describe the location, distribution, spatial organization, structure, and complexity of economic activities. Functions include basic spatial indicators such as the location quotient, the Krugman specialization index, the Herfindahl or the Shannon entropy indices but also more advanced functions to compute different forms of normalized relatedness between economic activities or network-based measures of economic complexity. By opening and sharing the codes used to compute popular indicators of the spatial distribution of economic activities, one of the goals of this package is to make peer-reviewed empirical studies more reproducible by a large community of researchers.
    JEL: R
    Date: 2017–05
  9. By: Carpenter, Jeffrey P. (Middlebury College)
    Abstract: There is now an extensive literature on "gift exchange" showing that when principals and agents can trade "gifts" (rewards that should not emerge in a competitive equilibrium), exchange becomes more efficient. However, it is not obvious how gift exchange should be organized if the principal's goal is to increase the performance of a reciprocal agent. Specifically, who should make the first gift, the principal or the agent? Although both orderings, by themselves, have been hypothesized and examined in theory and experiments, the literature is largely silent on the comparison. I report the results of a field experiment that compares the principal-first and agent-first orderings to each other and a gift-less control. Consistent with the previous experimental literature, I find that principal-first, gifts do increase agent performance. Unlike the literature, however, I find that agent-first, gifts are also effective. Comparing the two, I see that the agent-first ordering works best, is clearly cheaper to implement and differences appear on both the extensive and intensive margins.
    Keywords: gift exchange, reciprocity, social norm, incentives, field experiment, charity, fundraising
    JEL: C93 D03 D64 H41 L30 M30
    Date: 2017–04

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