nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2018‒02‒26
eight papers chosen by
Karl Petrick
Western New England University

  1. Economic Pluralism in the Study of Wage Discrimination: A Note By Drydakis, Nick
  2. Could/Should Jubilee Debt Cancellations be Reintroduced Today? By Goodhart, Charles A; Hudson, Michael
  3. Stagnation traps By Benigno, Gianluca; Fornaro, Luca
  4. Gender and inequality: austerity and alternatives By Perrons, Diane
  5. A Framework for Sustainable Finance By Schoenmaker, Dirk
  6. The Dynamics of Inequality in the Human Story: A Brief Sketch By Jon D. Wisman
  7. Women and Migration By Antman, Francisca M.
  8. Kaldor and Piketty’s Facts: The Rise of Monopoly Power in the United States By Gauti B. Eggertsson; Jacob A. Robbins; Ella Getz Wold

  1. By: Drydakis, Nick (Anglia Ruskin University)
    Abstract: Economic pluralism proposes that economists and social planners should consider alternative theories to establish a range of policy actions. Neoclassical, Feminist and Marxian theories evaluate well-grounded causes of wage discrimination. Racist attitudes, uncertainties regarding minority workers' productivity and power relations in lower-status sectors might generate discriminatory wages. Each cause deserves corresponding policy action. Given pluralism, wage discrimination might be reduced by implementing equality campaigns, creating low-cost tests to predict workers' productivity and abolishing power relations towards minority workers. Pluralism might be jeopardised if there is a limited desire to engage with less-dominant theoretical frameworks. Also, pluralism might be misled with rejection of dominant theories.
    Keywords: economic pluralism, schools of economic thought, wages, discrimination
    JEL: B4 B5 B54 J71
    Date: 2018–01
  2. By: Goodhart, Charles A; Hudson, Michael
    Abstract: In this paper we recall the history of Jubilee debt cancellations, emphasizing what their social purpose was at that time. We note that it would not be possible to copy that procedure exactly nowadays, primarily because most debt/credit relationships are intermediated via financial institutions, such as banks, insurance companies, etc., rather than by governments or wealthy families directly. But we argue that the underlying social purpose of such Jubilees- to keep debt within the reasonable ability to be paid without social and economic polarisation - could be recreated via alternative mechanisms, and we discuss the politico-economic arguments for, and against, doing so
    Keywords: Inequality; Debt-Canceling Jubilees; Babylonian and Byzantine Empires; Equity Participation; Student Loans; Land Tax
    JEL: E60 E61 E62 E65 H10 H23 H80 N30 N35 P43 Q15 R52 Z13
    Date: 2018–01
  3. By: Benigno, Gianluca; Fornaro, Luca
    Abstract: We provide a Keynesian growth theory in which pessimistic expectations can lead to very persistent, or even permanent, slumps characterized by unemployment and weak growth. We refer to these episodes as stagnation traps, because they consist in the joint occurrence of a liquidity and a growth trap. In a stagnation trap, the central bank is unable to restore full employment because weak growth depresses aggregate demand and pushes the interest rate against the zero lower bound, while growth is weak because low aggregate demand results in low profits, limiting firms’ investment in innovation. Policies aiming at restoring growth can successfully lead the economy out of a stagnation trap, thus rationalizing the notion of job creating growth.
    Keywords: Secular Stagnation; Liquidity Traps; Growth Traps; Endogenous Growth; Multiple Equilibria.
    JEL: E32 E43 E52 O42
    Date: 2016–06–01
  4. By: Perrons, Diane
    Abstract: Gender equality policies aim to increase women’s participation in the market economy, but they do not always recognise that market societies reproduce inequalities at micro and macro levels. At the micro level, labour markets are gendered institutions, and at the macro level, austerity policies have inherent biases and negative impacts that fall disproportionately on women.
    JEL: N0
    Date: 2017–02–08
  5. By: Schoenmaker, Dirk
    Abstract: To guide the transformation towards a sustainable and inclusive economy, the United Nations has developed the Sustainable Development Goals (SDGs). Sustainable development is an integrated concept with three aspects: economic, social and environmental. This paper starts by reviewing the environmental and social challenges that society is facing. Why should finance contribute to sustainable development? The main task of the financial system is to allocate capital to its most productive use. Financial institutions have started to avoid unsustainable companies from a risk perspective, which we label as Sustainable Finance 1.0 and 2.0 in our new framework. The frontrunners are now increasingly investing in sustainable companies and projects to create long-term value for the wider community (Sustainable Finance 3.0).
    Keywords: corporate governance; Environmental; Short-termism; Social and Governance (ESG) Risks; Sustainable Development; Sustainable Finance
    JEL: G11 G21 H23 H41 Q01
    Date: 2018–01
  6. By: Jon D. Wisman
    Abstract: Teaching contemporary inequality can be significantly enriched by being nested in its dynamics over the course of human history. This essay is intended to provide those teaching inequality with a brief sketch of: a) the original human condition of a high degree of equality that endured for 97 to 98 percent of our species' existence as foragers and early agriculturalists; b) the origin of extreme inequality that accompanied the rise of states and civilization about 5,500 years ago as weapons technology enabled a few to subjugate the producers; and c) why, despite political democracy, extreme inequality persists.
    Keywords: Aboriginal equality, rise of state, comparative advantage in violence, democracy, ideology.
    JEL: A20 D30 D63 N00
    Date: 2017
  7. By: Antman, Francisca M. (University of Colorado, Boulder)
    Abstract: While scholars have long studied the economics of migration, increasing waves of international and regional migration around the world have placed greater focus on the varied impacts of migration in recent years. Critical to this line of research is an examination of the important role that women play in both sending and destination areas. This chapter addresses various aspects of the relationship between women and migration, including key ways in which non-migrant women are affected by migration, as well as how female migrants affect families and labor markets in both source and destination communities. Selection factors and determinants of female migration, as well as the gendered impacts of migrant networks, are also discussed.
    Keywords: migrant selection, women, left behind, gender, migration, networks
    JEL: F22 O15 R23 J16
    Date: 2018–01
  8. By: Gauti B. Eggertsson; Jacob A. Robbins; Ella Getz Wold
    Abstract: The macroeconomic data of the last thirty years has overturned at least two of Kaldor’s famous stylized growth facts: constant interest rates, and a constant labor share. At the same time, the research of Piketty and others has introduced several new and surprising facts: an increase in the financial wealth-to-output ratio in the US, an increase in measured Tobin’s Q, and a divergence between the marginal and the average return on capital. In this paper, we argue that these trends can be explained by an increase in market power and pure profits in the US economy, i.e., the emergence of a non-zero-rent economy, along with forces that have led to a persistent long term decline in real interest rates. We make three parsimonious modifications to the standard neoclassical model to explain these trends. Using recent estimates of the increase in markups and the decrease in real interest rates, we show that our model can quantitatively match these new stylized macroeconomic facts.
    JEL: E3 E5 E6 O4
    Date: 2018–02

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