nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2018‒10‒08
seven papers chosen by
Karl Petrick
Western New England University

  1. The economics of the super-multiplier By Thomas Palley
  2. Economics and Economic Methodology in a Core-Periphery Economic World By John B. Davis
  3. Human development thresholds for inclusive mobile banking in developing countries By Asongu, Simplice; Odhiambo, Nicholas
  4. タイトル:カレツキアン・モデルの基本骨格――短期モデルと長期モデル―― By Sasaki, Hiroaki
  5. Postkeynesianismus: Ein heterodoxer Ansatz auf der Suche nach einer Fundierung By Heise, Arne
  6. Serious Gaming in Real Estate Education – Case study ‘The Blue Game’ By Juerg Bernet; Eamonn D'Arcy
  7. The impact of institutions on innovation By Alexander Donges; Jean Marie Meier; Rui Silva

  1. By: Thomas Palley
    Abstract: This paper links the super-multiplier to Keynesian macroeconomics, showing it to be the most Keynesian of growth perspectives. Next, the paper shows that the super-multiplier is a micro-economically coherent theory of investment and capital accumulation. Firms' decisions regarding capital accumulation coordinate demand and supply growth in goods markets. The paper then explores the implications of incorporating the super-multiplier in the Neo-Kaleckian and Cambridge growth models. Lastly, it shows how labor markets and unemployment can be added into super-multiplier models to provide a comprehensive growth model that addresses Solow's (1956) labor market knife-edge problem. Incorporating labor markets does not change the fundamental super-multiplier result that growth is determined by the growth of autonomous demand.
    Keywords: Super-multiplier, growth, unemployment, endogenous technical progress, Solow Knife-edge, Hicks, Kaldor
    JEL: O4 O41 O33 E12
    Date: 2018
  2. By: John B. Davis (Department of Economics Marquette University)
    Abstract: This paper uses a core-periphery distinction to characterize contemporary economics, economic methodology, and also today's world economy. First, it applies the distinction to the organization of contemporary economics through an examination of the problem of explaining economics' relations to and boundaries with other disciplines. Second, it argues that economics' core-periphery organization is replicated in a similar organization of the use and practice of contemporary economic methodology in economics. Third, it draws on the use of the core-periphery thinking in economics itself and the uneven development of the world economy to provide possible foundations for economics and economic methodology being organized in core-periphery terms. Fourth, the paper briefly discusses three as a potential countervailing forces operating on the development of contemporary economics that might work against its core-periphery organization.
    Keywords: core-periphery, economics and other disciplines, economic methodology, underdevelopment
    JEL: A12 B41 B50 O20
    Date: 2018–09
  3. By: Asongu, Simplice; Odhiambo, Nicholas
    Abstract: This study assesses human development thresholds at which mobile banking mitigates poverty and inequality in 93 developing countries for the year 2011. Mobile banking entails: ‘mobile used to pay bills’ and ‘mobile used to receive/send money’, while the modifying policy indicator is the human development index (HDI). The empirical evidence is based on interactive quantile regressions. A summary of the findings shows that with increasing human development: (i) ‘mobiles used to pay bills’ contribute to reducing inequality in countries at the bottom and top ends of the inequality distribution, while (ii) ‘mobiles used to receive/send money’ have an appealing role in promoting inclusive development in all poverty distributions, with the exception of the top-end or 90th decile. The modifying thresholds of the HDI vary from 0.542 to 0.632 and 0.333 to 0.705 in inequality and poverty specifications, respectively. The relevance of the findings is discussed in light of the current transition from Millennium Development Goals to Sustainable Development Goals.
    Keywords: Mobile banking, Quality of growth, poverty, inequality
    JEL: G20 I10 I20 I32 O40
    Date: 2018–01
  4. By: Sasaki, Hiroaki
    Abstract: This study explains the basic framework of the short-run Kaleckian model and the long-run Kaleckian model. The short-run Kaleckian model is a model in which the rate of capacity utilization is adjusted in response to excess demand and excess supply of the goods market with given capital stock. The long-run Kaleckian model is a model in which capital stock is adjusted in response to the difference between the desired rate of capital accumulation and the actual rate of capital accumulation. Moreover, we endogenize the profit share by introducing the reserve-army effect. By adding different elements to these basic Kaleckian models, one can build an extended Kaleckian model according to his/her purpose.
    Keywords: Kaleckian model; short-run model; long-run model
    JEL: E12 E24 E25 E32 O41
    Date: 2018–09–13
  5. By: Heise, Arne
    Abstract: In diesem Beitrag geht es darum, den Postkeynesianismus als paradigmatische Alternative zum herrschenden neoklassischen Mainstream etwas näher kennenzulernen. Es zeigt sich sehr schnell, dass der Postkeynesianismus keine einheitliche Denkschule darstellt, sondern vielmehr eine Vielzahl von theoretischen Ansätzen darunter zu verstehen ist, die eine Reihe von methodologischen und epistemologischen Gemeinsamkeiten aufweist und die einige identitätsstiftende Postulate verbindet. Zum konkreten Nachvollzug dieser Postulate aus dem axiomatischen Kern des Postkeynesianismus wird dann darauf verzichtet, dass Kaleidoskop postkeynesinaischer Theorie mit kaleckianischer, kaldorianischer oder gar sraffianischer Grundlage aufzuzeigen, sondern es wird vielmehr nur ein Postkeynesianismus - die monetäre Theorie der Produktion - in seiner paradigmatischen und formalen Struktur beleuchtet und die darauf aufbauende Theorie der Marktteilnahme als alternative Theorie der Wirtschaftspolitik dargelegt.
    Keywords: Postkeynesianismus,heterodoxe Ökonomik,Neoklassik,Paradigma
    JEL: B41 B50 B59 E11 E12 E60
    Date: 2018
  6. By: Juerg Bernet; Eamonn D'Arcy
    Abstract: The development of people skills has become a key element of management training in the real estate profession. Strategic skills and implementation skills can make or break business success. Universities and business schools are up to better integrate these challenges of the real world in the classroom. This paper debates the teaching experience with the ‘The Blue Game’; a serious business simulation game for experiental learning, developed and used since 2012 at the Henley Business School, University of Reading. The game is set within a capstone term in the MSc real estate programme and delivers a strategy training in responsible investment in real estate.The students’ object in the game is to solve an actual business dilemma in the Australian real estate market. To win the game, the students team up in groups and take on roles. They develop winning strategies for their companies, incorporating the dynamic interplay of competition and cooperation. A blend of both online and on-site learning tools includes a physical ‘Real Investor’ game box with game money and agreement cards, an electronic memory stick with data about real world portfolios of assets, lecture-style tutorials in game theory, networking applications of the social media Facebook and Twitter, and an interactive e-book for iBooks.‘The Blue Game’ allows participants to develop a range of personal transferable skills, such as negotiation, team working, leadership, strategic thinking, managing complex relationships, meeting deadlines and delivering professional presentations and reports. It also contributes to delivering professional values and wider value sets relevant to the real estate sector such as sustainability and social responsibility. However, instrumental for a successful learning outcome is an experienced game master – making a stimulating setting available for dynamic exploration, steering a successful workflow, and providing intermediate feedback and individual coaching.Different from a fun game, ‘The Blue Game’ is a serious game, based on the behavioral concepts of game theory. In the past 6 years more than 1000 students have played the game and enjoyed their exciting learning experience. Positive feedback from the industry qualifies ‘The Blue Game’ as a highly effective learning tool – facilitating the development of interpersonal skills and contributing to the actual challenges of employability in the real estate sector.
    Keywords: business simulation; Game Theory; Real Estate Education; responsible investment in real estate; strategy training
    JEL: R3
    Date: 2018–01–01
  7. By: Alexander Donges (University of Mannheim); Jean Marie Meier (University of Texas at Dallas); Rui Silva (London Business School)
    Abstract: "We study the impact of inclusive institutions on innovation using novel, hand- collected, county-level data for Imperial Germany. We use the timing and geography of the French occupation of different German regions after the French Revolution as an instrument for institutional quality. We find that the number of patents per capita was more than twice as high in counties with the longest occupation as in unoccupied counties. The impact of institutions on innovation is amplified in counties with a devel- oped banking sector, suggesting that financial development and inclusive institutions are complements in the production of innovation."
    Keywords: "Innovation, Patents, Institutions, Institutional Reform, Economic Growth"
    JEL: G38 O31 O43 N13 K40
    Date: 2017–04

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