nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2019‒01‒07
eight papers chosen by
Karl Petrick
Western New England University

  1. Michael Polanyi's economics: a strange rapprochement By Agnès Festré
  2. The Saint-Simonians and the birth of social justice in France By Adrien Lutz
  3. Urban movements and the genealogy of urban rights discourses: the case of urban protesters against redevelopment and displacement in Seoul, South Korea By Shin, Hyun Bang
  4. The Dilemma of the African Development Bank: Does Governance Matter for the Long-Run Financing of the MDBs? By Nancy Birdsall
  5. On the Algebraic Calculation of the Fiscal Multiplier By Nizam, Ahmed Mehedi
  6. It’s evolution, baby – how institutions can improve without critical junctures By Otaviano Canuto; Tiago Ribeiro dos Santos
  7. Power in Economics: Growth, Inequality and Politics By Ramón E. López
  8. Antitrust for Internet Giants By Taschdjian, Martin; Alleman, James

  1. By: Agnès Festré (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique)
    Date: 2018–11–22
  2. By: Adrien Lutz (Univ Lyon, UJM Saint-Etienne, GATE UMR 5824, F-42023 Saint- Etienne, France)
    Abstract: This paper concerns the birth of the idea of social justice, which in France dates to the 19th century. It argues that the idea of social justice was able to emerge in France due to particular conditions, which were met for the first time by the Saint-Simonians. We first shed light on the transition in France from a commercial system to one marked by increasing industrialization, which raised new questions regarding economic justice and the composition of ownership. The Saint-Simonians were among the first to criticize this new composition, and to seek a means to organize society on a fair basis. We then explain how the Saint-Simonians came to theorize this new organization: according to them, the value of things lies in work. The difference from the classical framework, which is also utilitarian, is that they posit an opposition between workers and idlers: each and every individual must be useful to society. Finally, we analyse how the Saint-Simonians identify this opposition as existing throughout history, on which basis they not only justify their innovative views on social justice, but legitimize their project as a whole.
    Keywords: Saint-Simonianism, Social justice, Ability, Industrialism
    JEL: B10 D63 N00
    Date: 2018
  3. By: Shin, Hyun Bang
    Abstract: Despite significant contributions made to progressive urban politics, contemporary debates on cities and social justice are in need of adequately capturing the local historical and socio-political processes of how people have come to perceive the concept of rights in their struggles against the hegemonic establishments. These limitations act as constraints on overcoming hegemony imposed by the ruling class on subordinate classes, and restrict a contextual understanding of such concepts as ‘the right to the city’ in non-Western contexts,undermining the potential to produce locally tuned alternative strategies to build progressive and just cities. In this regard,this paper discusses the evolving nature of urban rights discourses that were produced by urban protesters fighting redevelopment and displacement, paying a particular attention to the experiences in Seoul that epitomised speculative urban accumulation under the (neoliberalising) developmental state. Method-wise, the paper makes use of archival records (protesters’ pamphlets and newsletters), photographs and field research archives. The data are supplemented by the author’s in-depth interviews with housing activists and former evictees. The paper argues that the urban poor has the capacity to challenge the state repression and hegemony of the ruling class ideology; that the urban movements such as the evictees’ struggles against redevelopment are to be placed in the broader contexts of social movements;that concepts such as the right to the city are to be understood against the rich history of place-specific evolution of urban rights discourses; that cross-class alliance is key to sustaining urban movements.
    Keywords: urban movements; rights discourses; urban protests; Seoul; displacement
    JEL: R14 J01
    Date: 2018–02–20
  4. By: Nancy Birdsall (Center for Global Development)
    Abstract: In this paper, I explore the question in the subtitle: Does governance matter for the long-run financing and effectiveness the multilateral development banks? Does the system of weighted voting that is peculiar to them (compared to the United Nations and other international institutions), and favors the high-income countries that are the banks’ main financiers, matter for their long-run access to financing and their effectiveness as development institutions? Does the voting structure, as well as other aspects of governance, involve some tradeoff between the confidence of creditor countries in the different MDBs, and the sense of ownership, legitimacy, and trust of borrowers? Is that tradeoff reflected in differences in the banks’ relative success in raising capital and contributions to sustain their operations, and with what implications for the different banks’ development effectiveness in borrowing countries? There is no way to definitively answer those questions. But among the five “legacy” MDBs founded in the 20th century, the African Development Bank stands out as the one where the governance arrangements most favor its regional borrowers. The dilemma of the African Bank is that its governance arrangements may be making it relatively less competitive than its sister banks in sustaining creditor (or “donor”) confidence over the long run, and thus in raising new capital and periodic contributions to allow for grants and cheap credits to the poorest countries in the region. Lack of competitiveness in raising financing a dilemma both for its borrowers and its high-income creditor shareholders, given their shared goal of optimal use of all available resources in promoting higher and more inclusive and sustained growth in Africa.
    Date: 2018–11–29
  5. By: Nizam, Ahmed Mehedi
    Abstract: Algebraic calculation of the fiscal multiplier ignores the concept of velocity of money. Here, we incorporate the concept of velocity of money in the algebraic derivation of the fiscal multiplier which results into a slightly different representation. Then, we empirically calculate the values of fiscal multipliers for 05 (five) OECD countries using our proposed algebraic representation and compare the results with the classical Keynesian values. Our results also point out why the theoretical values of the fiscal multipliers are higher than the empirical values.
    Keywords: Fiscal Multiplier, Government Spending Multiplier, Government Spending, Fiscal Stimulus, Economic Multiplier, Fiscal Policy
    JEL: E2 E6 H5 H6
    Date: 2019–01–02
  6. By: Otaviano Canuto; Tiago Ribeiro dos Santos
    Abstract: Daron Acemoglu and James Robinson caught policymaker’s attention to the critical role of institutions for development. Their work gives too much emphasis to the prospects of revolution, however. A reading of the World Bank’s World Development Report of 2017 points to directions that all actors involved in the process, whether domestic or international, elite or non-elite, can take to improve societies.
    Date: 2018–12
  7. By: Ramón E. López
    Abstract: We study the economy-wide implications of economic power. We examine the distribution of bargaining power between the owners of capital (“the capitalists”) and the owners of human capital (“the workers”) and its effects on fundamental economic variables, including economic growth, efficiency, and inequality. We introduce an integrated theory of distribution which combines the marginal and Nash theories of distribution, where factor returns are determined in a context of capital market imperfections. We show that all the fundamental economic variables, including economic power, are in fact dependent on political conditions. Explicit recognition of economic power as a key factor allows us to integrate economic and political conditions in a natural way, where economic power constitutes the fundamental linkage between politics and economics. Political conditions determine an equilibrium for the fundamental economic variables and these variables, in turn, affect the subsequent political equilibrium. We show that the performance of the economy is likely to be cyclical because of the cyclical behavior of the ppolitical conditions and vice versa, political cycles are in part originated in economic cycles.
    Date: 2018–12
  8. By: Taschdjian, Martin; Alleman, James
    Abstract: There can be no doubt that the FANG companies – Facebook, Amazon, Netflix and Google, as well as Twitter – have transformed society since their emergence. Like all social transformations, the changes wrought by their services have had ripple effects that are both positive and negative. On the positive side, soaring consumer access to information, news, social networks, and entertainment has been stimulated by the ever-more ubiquitous and falling prices of broadband fixed and mobile bandwidth. E-government has transformed the delivery of public services. However, negative effects have likewise been stark. Certainly, there have been huge disruptions caused by e-commerce. Retail industries, industrial supply chains, banking and publishing are just a few obvious examples. State tax collectors are fighting the loss of sales tax collections. These problems tend to get highlighted by the losers from the process of "creative destruction." Because Facebook and Google are two-sided markets, their economic rents are "hidden" from the public . On the user side of the market, prices are zero – "free." The other side, advertising rate are "hidden." Facebook's and Google's revenues are derived from advertising which appear when you go to their sites. They can extract exorbitant prices for ads, since they are virtually the only source that can target ads directly to potential clients. Because these companies can identify you, the ads can be targeted to your specific wants and needs, even creating "wants and needs" based on your profile. So, what the "customer" – you – perceived as free is not. Indeed, you are the commodity being sold to the advertisers. While Facebook and Google Herfindahl-Hirschman indices (HHI) are high, indicating a concentrated market or highly concentrated market by several different definitions of their markets. For example, Google has 93 percent of the search market. Combined Google and Facebook currently control over half of digital advertising and one-third of total advertising. Nevertheless, no serious antitrust case or legislation has addressed this monopoly power. This paper examines the antitrust cases against Facebook and Google. In this paper, we attempt to go back to first principles to discern whether there is a more appropriate approach to examine the underlying economics of these industries in the hopes that tools can be applied that more directly address the problems.
    Keywords: Advertising,antitrust,competition,internet,media,regulation,pricing
    JEL: D4 K2 L1 L2 L5 L9
    Date: 2018

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