nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2017‒06‒18
three papers chosen by
Karl Petrick
Western New England University

  1. What money does: An inquiry into the backbone of capitalist political economy By Koddenbrock, Kai
  2. Industry Evolution in Varieties of Capitalism: a Comparison of the Danish and US Wind Turbine Industries By Menzel, Max-Peter; Kammer, Johannes
  3. Undergraduate econometrics instruction: through our classes, darkly By Joshua D. Angrist; Jorn-Steffen Pischke

  1. By: Koddenbrock, Kai
    Abstract: The theory and critique of capitalism is back at the center of scholarly debate. With it comes a growing awareness of the analytical and political importance of money and money creation. Moving from the more systemic reflections of Karl Marx to more recent work on money theory by Geoffrey Ingham and in financial economics, the paper focuses on three of money's "deeds." As a social structure and process, it makes moneymaking through capital permeate all our societies. As a public-private partnership between the state, rentiers, banks, and taxpayers that has existed since the foundation of the Bank of England in 1694, it binds these actors together in shifting relations of dependence. In today's financial capitalism, what counts as money and how far moneyness stretches into the realms of financial innovation has been the core object of struggle in the public-private partnership of money. In conclusion, the paper discusses how contemporary money redistributes intra-socially and internationally.
    Keywords: capitalism,Bank of England,derivatives,inequality,banks,US dollar,Marx,Ingham
    Date: 2017
  2. By: Menzel, Max-Peter (University Bayreuth); Kammer, Johannes (University Hamburg)
    Abstract: In this study, we combine Klepper’s framework on the evolution of industries with the Varieties of Capitalism approach to argue that industry evolution is mediated by institutional differences. We expect that new industries will evolve with a stronger connection to established industries in coordinated marked economies than in liberal market economies. Our assumptions are supported by the survival analysis of US and Danish wind turbine manufacturers from 1974 to 2014.
    Keywords: industry evolution; varieties of capitalism; heritage theory; wind turbine industry; institutions
    JEL: L64 O15 P51
    Date: 2017–06–09
  3. By: Joshua D. Angrist; Jorn-Steffen Pischke
    Abstract: The past half-century has seen economic research become increasingly empirical, while the nature of empirical economic research has also changed. In the 1960s and 1970s, an empirical economist's typical mission was to "explain" economic variables like wages or GDP growth. Applied econometrics has since evolved to prioritize the estimation of specific causal effects and empirical policy analysis over general models of outcome determination. Yet econometric instruction remains mostly abstract, focusing on the search for "true models" and technical concerns associated with classical regression assumptions. Questions of research design and causality still take a back seat in the classroom, in spite of having risen to the top of the modern empirical agenda. This essay traces the divergent development of econometric teaching and empirical practice, arguing for a pedagogical paradigm shift.
    JEL: A22 C01
    Date: 2017

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