nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2018‒01‒29
eight papers chosen by
Karl Petrick
Western New England University

  2. The transformation of post-socialist capitalism – from developmental state to clan state? By Sallai, Dorottya; Schnyder, Gerhard
  3. Will wealth become more concentrated in Europe? By Stefan Ederer; Miriam Rehm
  4. Economic precariousness: A new channel in the housing market cycle By Philip Arestis; Ana Rosa Gonzales-Martinez
  5. Which Accounting Rules for Economic and Social Sustainable Development? Engaging Critically with IFRS Adoption in the EU. By Palea, Vera; Biancone, Paolo Pietro
  6. The Prebish-Singer hypothesis in the post-colonial era: evidence from panel cointegration By Francesca Di Iorio; Stefano Fachin
  7. What if supply-side policies are not enough? The perverse interaction of flexibility and austerity By Giovanni Dosi; Marcelo C. Pereira; Andrea Roventini; Maria Enrica Virgillito
  8. Evolutionary dynamics of the cryptocurrency market By Abeer ElBahrawy; Laura Alessandretti; Anne Kandler; Romualdo Pastor-Satorras; Andrea Baronchelli

  1. By: Giovanni Scarano
    Abstract: Economic crises are a recurrent topic in Marx’s works, but nowhere does he deal with this subject in a systematic way. Nevertheless, we do find many considerations that are consistent with a systematic and complete view of crises as dialectical moments in the movement of capitalist economies. According to Marx, the ultimate cause of all actual crises is always the contradiction between subjective and objective goals in the capitalist mode of production. But in the real world there are several direct causes of economic crises, each of which can randomly prevail over the others to trigger the phenomenon. However, the different causes are random only in prevailing as prime mover, not in terms of their presence or absence. The paper deals with the reconstruction of Marx’s dialectical view of economic and financial crises, analysing many passages in Capital and Theories of Surplus-Value, but especially in Economic Manuscripts of 1857-58 (Grundrisse).
    Keywords: economic crisis, financial crisis, business cycles, dialectics, Marxian economics.
    JEL: B14 E32 E44 B51
    Date: 2018–01
  2. By: Sallai, Dorottya; Schnyder, Gerhard
    Abstract: Various characterisations exist of the model of post-social capitalism exist. While most typologies underscore the prominent role of the state in post-socialist capitalism compared to Western economies, the literature is less clear about what exactly this role consists of. For the case of East Central Europe, some authors underscore the weakness of the state and its ‘capture’ by business interests, while others attribute to the state a benign role in successful industrial restructuring. We show that both views are of limited use to understand the phase of ‘backsliding’ that these economies are currently experiencing. We draw on anthropological models of post-socialist states that focus on elite dynamics within the state and show that this focus allows us to interpret backsliding in Hungary as a reversal of the developmental state into a clan-state.
    Keywords: State capitalism, political ties, corporate strategies, clan-state, post-socialism, autocracy
    JEL: P16 P26
    Date: 2018–01–12
  3. By: Stefan Ederer; Miriam Rehm
    Abstract: We develop and calibrate an analytical growth model in the neo-Kaleckian tradition with an endogenous wealth distribution and differential returns to wealth between workers and capitalists. We show that a long-run equilibrium allows for non-zero wealth owned by workers, even as the model contains the ?triumph of the rentier? predicted by Piketty?s r > g as a special case. The model?s calibration to ten European countries shows that the distribution of wealth is likely to become more unequal in all cases, barring political countermeasures.
    Date: 2017
  4. By: Philip Arestis; Ana Rosa Gonzales-Martinez
    Abstract: Demographic and institutional elements as important drivers of the housing market should not be neglected since it is not only financial and monetary elements that matter in the case of the housing market. In this context, one relationship, which still remains unclear, is the relationship between the housing and the labour markets. Some research has been under-taken to support the hypothesis that high rates of homeownership lead to high unemploy-ment via increases in the reservation wage. However, further research is needed to address the possible implications of the institutional settings of the labour market in the dynamics of the housing market. The aim of this paper is to bring some light on the link between both markets. In particular, this contribution explains how the housing cycle could be ?amplified? via a new channel, i.e. economic precariousness, which is closely related to job insecurity. Subsequently, we provide evidence in the case of five developed economies, Ireland, the Netherlands, Spain, the United Kingdom and the United States, over the period 1985-2013.
    Keywords: Economic precariousness, Job insecurity, Labour markets, House prices, Cointegration techniques.
    JEL: C22 R31
    Date: 2017
  5. By: Palea, Vera; Biancone, Paolo Pietro (University of Turin)
    Abstract: The worldwide recession caused by the financial market crisis has raised widespread criticism on free stock market-based capitalism, highlighting the need for alternative ways of doing business. In the European Union, economists and institutions have begun to look back at industrial policies to implement a new way of doing business based on economic and social sustainable development, which is one of the founding principles of the European Union. This being the context, this paper discusses financial reporting regulation within the uniqueness of the EU institutional context and examines the consistency of IFRS adoption with the EU societal objectives. Specifically, the paper examines IFRS capability to support economic and social sustainable development. In doing this, not only does it provide regulators with a post-implementation overall assessment of IFRS adoption in the European Union but also with some guidance for future endorsement.
    Date: 2017–10
  6. By: Francesca Di Iorio (University of Naples Federico II); Stefano Fachin ("Sapienza" University of Rome)
    Abstract: We test the Prebish-Singer hypothesis that commodity prices tend to decline relatively to manufactured goods prices using a panel cointegration bootstrap test, for the period 1950-2011. We find partial support for the hypothesis, which appears to hold for Food and Non Food agricultural products but not for Metal goods.
    Keywords: Prebish-Singer hypothesis, commodity prices, panel cointegration, bootstrap.
    JEL: C22 C33 O13 Q11
  7. By: Giovanni Dosi; Marcelo C. Pereira; Andrea Roventini; Maria Enrica Virgillito
    Abstract: In this work we develop a set of labour market and fiscal policy experiments upon the labour and credit augmented "Schumpeter meeting Keynes" agent-based model. The labour market is declined under two institutional variants, the "Fordist" and the "Competitive" set-ups meant to capture the historical transition from the Fordist toward the post "Thatcher-Reagan" period. Inside these two regimes, we study the different effects of supply-side active labour market policies (ALMPs) vs. demand-management passive labour market ones (PLMPs). In particular, we analyse the effects of ALMPs aimed at promoting job search, and at providing training to unemployed people. Next, we compare the effects of these policies with unemployment benefits simply meant to sustain income and therefore aggregate demand. Considering the burden of unemployment benefits in terms of public budget, we link such provision with the objectives of the European Stability and Growth Pact. Our results show that (i) an appropriate level of skills is not enough to sustain growth when workers face adverse labour demand; (ii) supply-side policies are not able to reverse the perverse interaction between flexibility and austerity; (iii) PLMPs outperform ALMPs in reducing unemployment and workers' skills deterioration; and (iv) demand-management policies are better suited to mitigate inequality and to improve and sustain long-run growth.
    Keywords: Industrial-relation Regimes, Flexibility, Active Labour Market Policies, Austerity, Agent-based models
    Date: 2018–01–09
  8. By: Abeer ElBahrawy; Laura Alessandretti; Anne Kandler; Romualdo Pastor-Satorras; Andrea Baronchelli
    Abstract: The cryptocurrency market surpassed the barrier of \$100 billion market capitalization in June 2017, after months of steady growth. Despite its increasing relevance in the financial world, however, a comprehensive analysis of the whole system is still lacking, as most studies have focused exclusively on the behaviour of one (Bitcoin) or few cryptocurrencies. Here, we consider the history of the entire market and analyse the behaviour of 1,469 cryptocurrencies introduced between April 2013 and June 2017. We reveal that, while new cryptocurrencies appear and disappear continuously and their market capitalization is increasing (super-)exponentially, several statistical properties of the market have been stable for years. These include the number of active cryptocurrencies, the market share distribution and the turnover of cryptocurrencies. Adopting an ecological perspective, we show that the so-called neutral model of evolution is able to reproduce a number of key empirical observations, despite its simplicity and the assumption of no selective advantage of one cryptocurrency over another. Our results shed light on the properties of the cryptocurrency market and establish a first formal link between ecological modelling and the study of this growing system. We anticipate they will spark further research in this direction.
    Date: 2017–05

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