nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2017‒12‒11
seven papers chosen by
Karl Petrick
Western New England University

  1. Keynes’s Trading on Wall Street: Did He Follow the Same Behavior When Investing for Himself and for King’s? By Eleonora Sanfilippo
  2. New starting point(s) : Marx, technological revolutions and changes in the centre-periphery divide By João Antonio de Paula; Leonardo Gomes de Deus; Hugo Eduardo da Gama Cerqueira; Eduardo da Motta e Albuquerque
  3. Social-scienciation of Economics and its Consequences: On a Relative Convergence between Economics and Sociology By Dieter Bögenhold
  4. A Global Analysis of Income Distribution and Capacity Utilization Interactions: The Structuralist View JEL Classification: C23, D3, O11, O47 By Tanadej Vechsuruck
  5. Commitment to norms and the formation of institutions By Pietro Guarnieri
  6. Economic globalisation, inequality and the role of social protection By Alexandre Kolev; Caroline Tassot
  7. Who Becomes an Inventor in America? The Importance of Exposure to Innovation By Alexander M. Bell; Raj Chetty; Xavier Jaravel; Neviana Petkova; John Van Reenen

  1. By: Eleonora Sanfilippo
    Abstract: In the last few years Keynes’s activity as an investor has attracted attention in the specialized literature. Very recently his investments at Wall Street, in particular – both on his own account (Cristiano, Marcuzzo, Sanfilippo 2017) and on behalf of King’s College (Chambers and Kabiri 2016) – have been analyzed, and the evident connection with his theoretical analysis of the functioning of the financial markets contained in Chapter 12 of the General Theory has been duly stressed. The aim of this paper is to make detailed comparison of Keynes’s investment choices and strategies in the US stock market when he traded for himself and for King’s. As might be expected, there are similarities but also significant differences, well worth investigating. As far as the differences are concerned, one of the most striking is to be seen in his attitude when, after a period of bull market in 1936, he had to face the 1937 burst of the speculative bubble and subsequent recession. Detailed analysis of his behavior reveals that this event took him by surprise but his reaction differed with regard to his personal investments and the King’s investments. The prevalence of a ‘buy and hold’ strategy which, according to Chambers and Kabiri (2016), seemed to characterize his behavior in general when investing for King’s, was not always the typical choice when the investments were undertaken on his own account.
    Keywords: Keynes, investment, King’s College, Wall Street, 1937 recession
    JEL: B26 B31 G11 N22
    Date: 2017–11
  2. By: João Antonio de Paula (Department of Economics and Cedeplar at the Universidade Federal de Minas Gerais); Leonardo Gomes de Deus (Department of Economics and Cedeplar at the Universidade Federal de Minas Gerais); Hugo Eduardo da Gama Cerqueira (Department of Economics and Cedeplar at the Universidade Federal de Minas Gerais); Eduardo da Motta e Albuquerque (Department of Economics and Cedeplar at the Universidade Federal de Minas Gerais)
    Abstract: This paper investigates Marx's understanding of the connections between technological revolutions and the centre-periphery divide. Marx's initial elaboration on those topics may be helpful for a contemporary agenda to investigate how global capitalism has been shaped and reshaped by movements in this structural divide between a dynamic centre and a changing periphery. Technological revolutions have been shaping the structure of that divide, its nature and structure. Therefore, Marx's elaboration may be fruitful for both the understanding of the origin and the dynamics of technological revolutions and their impact upon the divide centre-periphery.
    Keywords: technological revolutions, centre-periphery, metamorphoses of capitalism, Marx
    JEL: B14 B31
    Date: 2017–11
  3. By: Dieter Bögenhold
    Abstract: We are currently in times in which an increased discussion on interdisciplinarity is on the agenda. Economics tends to go into directions of sociology, history, and psychology, taking on topics of their domains. Questions of convergencies and divergencies between the academic subjects are a result. This observation goes parallel with sociological debate on the status of sociology. Major questions remaining are: (1.) Has the field of sociology changed since Emilé Durkheim or Max Weber? (2.) Which domain can sociology claim as being its exclusive ground? Answers to these questions have to identify a broader landscape of academic division: Economics is moving increasingly in the direction of social topics and sociological ground. The “imperialism of economics” (Granovetter) is increasingly approaching traditional academic fields of history, psychology, and sociology. However, at least two psychologists (H. Simon, D. Kahneman) and an economic historian (R. Fogel) have received Nobel prizes in economics. How can sociology map with this trend, how can this challenge be converted into an academic opportunity? The paper will explore observed trends in detail in order to conclude that the public image of sociology may have declined during recent decades, but the strategic use and importance of (economic) sociology has never been greater. Economic sociology seems to have become an upgraded discipline since social networks, communication processes, institutions and culture are increasingly considered as core dimensions. Of course, the conclusion follows exactly the script of earlier instructions provided by Max Weber or Joseph Schumpeter.
    Keywords: Pluralism in economics, Imperialism of economics, institutional economics, old institutional economics, interdisciplinarity, sociology of economics
    JEL: A11 A14 B00 B41 B52
    Date: 2017–10
  4. By: Tanadej Vechsuruck
    Abstract: The demand and distributive regimes are estimated from 62 countries around the world based on the Structuralist Goodwin model. The distributive regime appears to be Marxian/profit-squeeze and the demand exhibits a weekly profit-led regime. The profitled demand regime and the profit-squeeze distributive regime are stronger in advanced economies than in emerging economies. The results are also supported when the slopes are allowed to be varied across regions. In the long run, the results reveal that the collective wage suppression would result only in declining wage share, and no positive gain in utilization is found both in developed and developing countries.
    Date: 2017
  5. By: Pietro Guarnieri
    Abstract: The paper discusses Searle's description of institutions in terms of deontological constitutive rules and collective recognition. It aims at integrating Searlian conception of commitment with an epistemology of rule-following capable to illustrate processes of formation of institutions. Social ontology per se cannot account for the formation of constitutive rules. Actually, it requires taking as given the object of collective recognition, i.e. the specific content of status functions. The hypothesis of interactive intentionality is introduced to account for the commitment to status functions as the result of an interactive decision-making process concerning alternative constitutive definitions. This interactive process, by acting on the normative interpretation of decision contexts, frames relevance and salience criteria and grounds the formation of institutions. Interactive intentionality hypothesis offers the opportunity to make social-ontological approach based on commitment theoretically commensurable with social-scientific approach based on equilibria and self-enforcement.
    Keywords: institutions, rule-following, conflict, formation
    JEL: B15 B31 B40
    Date: 2017–01–01
  6. By: Alexandre Kolev; Caroline Tassot
    Abstract: This paper examines the link between economic globalisation, social protection expenditure, and within-country income inequality. We examine the relationship using income inequality data from both the Luxembourg Income Study (LIS) and the Standardized World Income Inequality Database (SWIID). The results based on the LIS data confirm previous findings that economic globalisation, especially economic flows, associates with higher income inequality, and that social protection expenditure are negatively associated with inequality.
    Keywords: Globalisation, Income Inequality, Social Protection
    JEL: D63 H53
    Date: 2017–12–04
  7. By: Alexander M. Bell; Raj Chetty; Xavier Jaravel; Neviana Petkova; John Van Reenen
    Abstract: We characterize the factors that determine who becomes an inventor in America by using de-identified data on 1.2 million inventors from patent records linked to tax records. We establish three sets of results. First, children from high-income (top 1%) families are ten times as likely to become inventors as those from below-median income families. There are similarly large gaps by race and gender. Differences in innate ability, as measured by test scores in early childhood, explain relatively little of these gaps. Second, exposure to innovation during childhood has significant causal effects on children's propensities to become inventors. Growing up in a neighborhood or family with a high innovation rate in a specific technology class leads to a higher probability of patenting in exactly the same technology class. These exposure effects are gender-specific: girls are more likely to become inventors in a particular technology class if they grow up in an area with more female inventors in that technology class. Third, the financial returns to inventions are extremely skewed and highly correlated with their scientific impact, as measured by citations. Consistent with the importance of exposure effects and contrary to standard models of career selection, women and disadvantaged youth are as under-represented among high-impact inventors as they are among inventors as a whole. We develop a simple model of inventors' careers that matches these empirical results. The model implies that increasing exposure to innovation in childhood may have larger impacts on innovation than increasing the financial incentives to innovate, for instance by cutting tax rates. In particular, there are many “lost Einsteins” — individuals who would have had highly impactful inventions had they been exposed to innovation.
    JEL: E0 H0 J0 O3
    Date: 2017–11

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