nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2017‒08‒20
three papers chosen by
Karl Petrick
Western New England University

  1. Surplus Value Production and Realization in Marxian Theory - Applications to the U.S., 1987-2015 By Jonathan Cogliano
  2. What future for the European Union? By Avbelj, Matej
  3. Impact of Psychological Needs on Luxury Consumption By Mao, N.; McAleer, M.J.; Bai, S.

  1. By: Jonathan Cogliano (Department of Economics, Dickinson College)
    Abstract: This paper highlights the separation between surplus value production and realization in Marx's work. A new method of estimating surplus value production at the industry level is proposed and implemented. Marx's procedure of transforming labor values into prices of production shows that capitalist competition to equalize the profit rate entails transfers of surplus value across industries, thus differentials between surplus value created and surplus value realized as profit can exist at the industry level. These types of transfers can also exist between productive and unproductive activities in the circuit of capital. First, to trace out these transfers, a framework linking money value added to surplus value production by industry is established. Second, data on value added by industry for the U.S. are used to estimate surplus value production at the industry level. The analysis allows comparison of surplus value production and realization in each industry. The pattern of differentials between surplus value creation and realization across industries points to a potential source of instability for capitalist economies.
    Keywords: Circuit of Capital, Labor Theory of Value, Productive and Unproductive Labor, Surplus Value, Transfers of Surplus Value
    JEL: B5 B51 E11
    Date: 2017–08
  2. By: Avbelj, Matej
    Abstract: Stimulated by the European Commission's White Paper on the Future of Europe, this article engages critically with the Commission's five scenarios. Driven by a normative ambition of equipping the EU with adequate constitutional, institutional and socio-political means for coping with its many crises, the article argues in favour of the reformist vision of the EU's future. It claims that a new constitutional process for European integration should be launched. On its basis the EU would be reconstituted as a union, a special federal constitutional form, embedded in the normative spirit of pluralism. The article presents the arguments in favour of such a scenario and flashes out the reasons for which the many constitutional actors in the EU, as well as the latter as a whole, could benefit from it. It concludes that in the following few months there might emerge a historical window of opportunity for a qualitative reformist leap in the process of European integration. While the way back to the glorious days of the nation state is effectively closed off and the present status quo in the EU is plainly unsustainable, the article sketches a theoretical framework for the reformed European Union of tomorrow.
    Keywords: European Union,European Commission,Future,Constitution-making
    Date: 2017
  3. By: Mao, N.; McAleer, M.J.; Bai, S.
    Abstract: This paper examines the impact of psychological needs on luxury consumption. Veblen’s Theory of the Leisure Class (1899) invented the term “conspicuous consumption” to describe luxury goods and services, in which Veblen indicated the purpose of luxury consumption was to display wealth and social status. This paper integrates the following two papers: __(1)__ Han and Zhou (2002), who proposed an integrative model, and argued that three variables, namely Country-of-Origin, Brand Name, and Price, were major predictors for overall product evaluation and purchase intentions; and __(2)__ Han, Nunes and Dreze (2010), who proposed a taxonomy called The Luxury 4Ps, to explain the inductive and deductive psychological needs of luxury consumption.
    Keywords: Psychological needs, Luxury consumption, Consumer behavior
    JEL: N35 Z12 Z13
    Date: 2017–07–01

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