nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2018‒01‒22
six papers chosen by
Karl Petrick
Western New England University

  1. Global Inequality when Unequal Countries Create Unequal People By Martin Ravallion
  2. Determinants of US Household Debt: New Evidence from the SCF By Wildauer, Rafael
  3. La taxe carbone dans une économie d'inspiration keynésienne By Nicolas Piluso; Edwin Le Héron
  4. What Can UWE Do for Economics? By Tatyana Avilova; Claudia Goldin
  5. Market and state in socio-economic order: a brief review of theories By Anna E. Jurczuk; Piotr Pysz
  6. "TOP5ITIS" By Roberto Serrano

  1. By: Martin Ravallion
    Abstract: Current global inequality measures assume that national-mean income does not matter to economic welfare at given household income, as measured in surveys. The paper questions that assumption on theoretical and empirical grounds and finds that prominent stylized facts about global inequality are not robust. At one extreme, theories of relative deprivation yield a nationalistic measure whereby global inequality is average within-country inequality, which is rising. Other theories and evidence point instead to an intrinsic value to living in a richer country. Then parameter values consistent with subjective wellbeing imply far higher global inequality than prevailing measures, though falling since 1990.
    JEL: D3 D6 I3 O15
    Date: 2017–12
  2. By: Wildauer, Rafael
    Abstract: This paper investigates the factors driving US household borrowing up to 2007. Two popular explanations are tested: First, the expenditure cascades hypothesis based on the assumption of debt-financed expenditures driven by an increasingly polarised distribution of income (‘keeping up with the Joneses’) and second, the hypothesis of Minskyian households which identifies climbing real estate prices as the decisive factor in household debt accumulation (re-mortgaging in order to cash in on capital gains and rising loan-to-value ratios in property purchases). This paper develops a method for obtaining individual household borrowing figures despite the lack of a panel structure from the Survey of Consumer Finances (SCF); it is the first to use the high quality information the SCF provides to investigate the impact of shifts in the income distribution and asset prices on household borrowing. The findings indicate that it is the interaction between the concentration of income at the top of the distribution and rising real estate prices which explains a large fraction of the increase in household borrowing prior to 2008. Therefore, neither the expenditure cascades hypothesis nor the hypothesis of Minskyian households are, in isolation, sufficient in order to understand household debt accumulation and thus the paper calls for a synthesis: future research should analyse the role of the distribution of income and asset prices together rather than separately.
    Keywords: household debt; expenditure cascades; wealth effects; Minsky
    JEL: H63
    Date: 2016–05–01
  3. By: Nicolas Piluso (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - UT2 - Université Toulouse 2 - UPS - Université Paul Sabatier - Toulouse 3 - CNRS - Centre National de la Recherche Scientifique); Edwin Le Héron (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: L'objet de cet article est d'analyser les effets conjoncturels d'une politique climatique de taxation des émissions polluantes ainsi que son impact sur l'efficacité des politiques de relance dans le cadre d'analyse d'une économie keynésienne. Les contributions empiriques et théoriques actuelles estiment qu'une taxation a le plus souvent un impact récessif. Par ailleurs, ces travaux montrent que l'efficacité des politiques publiques est entravée par l'exercice de la politique climatique et/ou l'existence d'une contrainte environnementale. Nous montrons ici à l'inverse que la politique climatique de taxation peut exercer, sous certaines conditions, un effet favorable sur la conjoncture et renforcer l'efficacité économique des politiques de relance budgétaire.
    Keywords: économie keynésienne. , Taxe carbone, politique de relance
    Date: 2017–11–25
  4. By: Tatyana Avilova; Claudia Goldin
    Abstract: Men outnumber women as undergraduate economics majors by three to one nationwide. Even at the best research universities and liberal arts colleges men outnumber women by two to one or more. The Undergraduate Women in Economics Challenge was begun in 2015 as an RCT with 20 treatment schools and at least 30 control schools to evaluate whether better course information, mentoring, encouragement, career counseling, and more relevant instructional content could move the needle. Although the RCT is still in the field, results from several within treatment-school randomized trials demonstrate that uncomplicated and inexpensive interventions can substantially increase the interest of women to major in economics.
    JEL: A0 A22 J16
    Date: 2018–01
  5. By: Anna E. Jurczuk (University of Bialystok, Poland); Piotr Pysz (University of Finance and Management in Bia³ystok, Poland)
    Abstract: The purpose of this paper is to present the views of various schools of economic thought on the sources of the institutional order of economies. The premises of the theories of constituted and spontaneous economic orders are taken as the criteria on the basis of which the sources of an institutional order are identified. In order to meet the research objectives, the paper present, on the basis of the theoretical notions of constituted and spontaneous economic orders, the views on the sources of institutional order in capitalism within the last 250 years, i.e. from the times of Adam Smith until the present day. Main results indicate that, the classical/neoclassical model of economic order, interpreted here as the ideal one, is arise by itself as a result of market interaction. In contradistinction to the above ultraliberal model of economic order is the consistently centralised model deriving from the Marxist tradition. A synthesis of the strictly liberal and the centralised models is the ordoliberal model of economic order. As regards the course of market interactions and the auto-formation of spontaneous rules of an economic order resulting from the market operations, it is a par exellence liberal concept. On the other hand, from the consistently centralised model it borrows the idea of top-down dictation of economic order principles by the political government. This synthesis constitutes ordoliberalism and implies a feedback between the constituted and spontaneous rules of economic order.
    Keywords: classical economics, Marxism, ordoliberalism, economic order, institutional analysis
    JEL: B1 B5
    Date: 2018–01
  6. By: Roberto Serrano
    Abstract: Top5itis is a disease that currently affects the economics discipline. It refers to the obsession of the profession of academic economists with the so-called "top5 journals."
    Date: 2018

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