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on Post Keynesian Economics |
| By: | Nicolas Brisset (Université Côte d'Azur, France; GREDEG CNRS); Dorian Jullien (Université Côte d'Azur, France; GREDEG CNRS) |
| Abstract: | The goal of this paper is to provide a methodological perspective on economic models that accounts for some sociological dimensions of economics, in two senses. Firstly, we are interested in how modeling is an activity that is constrained by the (implicit and explicit) rules underlying the accumulation of academic prestige within economics and at the same time can be a means to change these rules. Secondly, we are interested in how, for a given model, this dynamic can be influenced by the use(s) of that model outside of economics. We first provide a restatement of Brisset’s (2018) original contribution. We then put this clarified methodological perspective to work on a new case study, i.e., on the dual models at the frontier between behavioral and standard economics. |
| Keywords: | Models, financial economics, behavioral economics, economic methodology, sociology of economics |
| JEL: | B41 B26 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2019-09&r=all |
| By: | Andrea Coveri (Department of Economics, Society & Politics, Università di Urbino Carlo Bo); Mario Pianta (Scuola Normale Superiore, Florence) |
| Abstract: | In the last four decades, an increasingly skewed income distribution has favored capital at the expense of labour and has been coupled with ever growing inequalities. Merging a Neo-Schumpeterian approach to innovation with a Post-Keynesian theoretical framework, this work contributes to the analysis of the structural determinants of functional income distribution. Building on Pianta and Tancioni (2008), we propose a simultaneous model on wage and profit dynamics identifying technological change, offshoring strategies and role of trade unions as key factors which shape the power relations between capital and labour. On the empirical ground, we perform an industry-level analysis extending and improving the Sectoral Innovation Database (SID), which accounts for 38 manufacturing and service sectors for six major European countries (France, Germany, Italy,Netherlands, Spain and United Kindgom) from 1994 to 2014. We find that, despite the structural asymmetries between industries’ patterns of evolution, labour productivity growth and product innovation have a positive impact on both distributive components, while a rather negative effect of process innovation on wages is detected. Offshoring processes generally emerge as profit-enhancing while represent a reliable firms’ weapon to reduce labour costs, although a remarkable heterogeneity arises when the technological nature of offshoring strategies is accounted for; finally, union density tends to be positively associated with wage dynamics, suggesting the relevance of labour market institutions in conditioning the patterns of income distribution. |
| Keywords: | Distribution, innovation, offshoring, union density, Europe, industries. |
| JEL: | F12 F15 J31 J51 L16 L6 L8 O33 O52 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:19_01&r=all |
| By: | Rafael Ribeiro (Cedeplar-UFMG); Stefan D'Amato (Cedeplar-UFMG); Wallace Pereira (Cedeplar-UFMG) |
| Abstract: | There are two unconnected strands of the inflation-distribution literature, one that studies the impact of inflation on income distribution and the other the impact of distribution on inflation. This paper is an attempt to fill a gap in this literature, by taking into account the simultaneous determination between inflation and income distribution. We set forth a Post-Keynesian model in which inflation and income distribution are jointly determined in a dynamical system of difference equations. The theoretical framework advanced in the paper allows us to show that conflicting claims on income, expectation formation and the realisation of increasing returns to scale ascribed to demand-pull and distributive factors also play a key role in the determination of the inflation and income distribution dynamics. Then, we conducted an empirical investigation of the relationship between inflation and distribution. Both empirical exercises were done using GMM estimator. This econometric technique is robust to reverse causality as it uses lagged observations in difference and level of endogenous variables as instruments and hence is the preferred method of estimation. Our findings corroborate our theoretical model by showing that, in average, increases in the wage share tend to exert a downward pressure in future inflation. Our estimates also show that the wage share is highly dependent of its past values, thus suggesting that income distribution may be only sensitive to autonomous (political) factors. |
| Keywords: | Cost-push inflation, income distribution, Kaleckian models, GMM. |
| JEL: | C33 C60 D33 E12 E31 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td596&r=all |
| By: | Heise, Arne |
| Abstract: | There has long been a discussion about the employment impact of minimum wages and this discussion has recently been renewed with the introduction of an economy-wide, binding minimum wage in Germany in 2015. In traditional reasoning, based on the allocation-based approach of modern labour market economics, it has been suggested that the impact is clearly negative on the assumption of a competitive labour market and clearly positive on the assumption of a monopsony-based labour market. |
| Keywords: | Minimum Wage, post-Keynesianism, Labour Market Theory |
| JEL: | B5 J31 |
| Date: | 2018–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:92483&r=all |
| By: | Michalis Nikiforos |
| Abstract: | The paper builds on the concept of (shifting) involvements, originally proposed by Albert Hirschman (2002 [1982]). However, unlike Hirschman, the concept is framed in class terms. A model is presented where income distribution is determined by the involvement of the two classes, capitalists and workers. Higher involvement by capitalists and lower involvement by workers tends to increase the profit share and vice versa. In turn, shifts in involvements are induced by the potential effect of a change in distribution on economic activity and past levels of distribution. On the other hand, as the profit share increases, the economy tends to become more wage led. The dynamics of the resulting model are interesting. The more the two classes prioritize the increase of their income share over economic activity, the more possible it is that the economy is unstable. Under the stable configuration, the most likely outcome is Polanyian predator-prey cycles, which can explain some interesting historical episodes during the 20th century. Finally, the paper discusses the possibility of conflict and cooperation within each of the distribution-led regimes. |
| Keywords: | Shifting Involvements; Hirschman; Wage Led; Profit Led; Predator-Prey |
| JEL: | E11 E12 E21 E22 E32 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_924&r=all |
| By: | Fabrizio Antenucci; Matteo Deleidi; Walter Paternesi Meloni |
| Abstract: | The recent slowdown in labour productivity growth experienced in advanced economies is generally considered one of the main causes of the current phase of economic stagnation. This has led scholars to carry out a number of theoretical and empirical studies to identify the long-run determinants of productivity growth. The present work aims to fall within this debate, with a peculiar focus on the relevance of the Kaldor-Verdoorn law. To this purpose, we empirically investigate on the determinants of labour productivity growth both for the total economy and for the manufacturing sector, comparing the role played by demand- and supply-side factors. A Structural Vector Autoregressive (SVAR) model is estimated for G7 countries from 1970 to 2017. Although the analyses confirm the positive role of supply-side factors in fostering productivity growth, our findings generally validate also the relevance of demand-side factors. Additionally, the positive effect generated by demand factors on labour productivity growth suggests that supply-side measures would be not sufficient to enhance productivity. Our findings suggest that demand-side policies are likely to foster productivity by also stimulating supply-side factors, particularly in the manufacturing sector of the economy. |
| Keywords: | Labour Productivity; Kaldor-Verdoorn Law; Capital Deepening; SVAR |
| JEL: | O47 D24 E22 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ast:wpaper:0042&r=all |
| By: | Ljungberg, Jonas (Department of Economic History, Lund University); Ögren, Anders (Department of Economic History, Lund University) |
| Abstract: | While there is a huge literature on exchange rate systems since the classical gold standard, less research has been devoted to comparisons of the different arguments that guided the choices. While the origin of the international gold standard in the 1870s was a result of silver coins disappearing from circulation due to rising silver prices, the gold standard has later been interpreted as a quest for monetary discipline. This discipline argument was introduced by the end of WWI as a support for a restoration of the gold standard. Its failure led to an emphasis on the need to avoid external imbalances, which came to the fore in the preparations of the Bretton Woods system. The balance argument was also central in the early discussions of a monetary union in Europe, but with the critique of Keynesianism it was superseded by the disciplinary argument which became determinant for the design of EMU. |
| Keywords: | exhange rates; Europe; gold standard; EMU |
| JEL: | F31 N13 N14 |
| Date: | 2019–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:luekhi:0190&r=all |
| By: | Fanny Coulomb (CESICE - Centre d'études sur la sécurité internationale et les coopérations européennes - UPMF - Université Pierre Mendès France - Grenoble 2 - UGA - Université Grenoble Alpes); Alain Alcouffe (LIRHE - Laboratoire Interdisciplinaire de recherche sur les Ressources Humaines et l'Emploi - UT1 - Université Toulouse 1 Capitole - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02051360&r=all |
| By: | Amanda S. Bayer; Bo Yeon Jang; David W. Wilcox |
| Abstract: | This note provides a brief users guide for the new interactive website that allows visitors to explore data on who is being trained in economics at each college and university in the U.S. |
| Date: | 2019–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2019-02-27&r=all |
| By: | Esteban Cruz Hidalgo (Universidad de Extremadura, Spain); Francisco Manuel Parejo Moruno (Universidad de Extremadura, Spain); José Francisco Rangel Preciado (Universidad de Extremadura, Spain) |
| Abstract: | En la Génesis del dinero Marx expone sin éxito la postulación del equivalente general, una laguna en su teoría del valor que ha motivado considerable literatura. En este documento de trabajo planteamos una alternativa al método dialéctico para explicar el surgimiento y naturaleza del dinero, la cual presenta cierta coherencia con algunas observaciones históricas respecto al mismo realizadas por el propio Marx. La integración con la Teoría del Dinero del Estado nos permite interpretar la teoría laboral del valor como una teoría monetaria del valor-trabajo, acorde con las relaciones y dinámicas capitalistas. A través de las nociones de la forma de valor y el concepto de trabajo abstracto, analizaremos cómo la teoría laboral del valor es esencial para comprender el pleno empleo con estabilidad de precios en un sistema de producción fragmentado, caracterizado por las quiebras empresariales y el papel jugado por los bancos privados en la endogeneidad de la oferta monetaria. Finalmente, sugerimos el mecanismo del Trabajo Garantizado como estabilizador del valor de la moneda, mitigando los efectos de la financiarización de la economía y las apuestas fallidas de los bancos. |
| Keywords: | Teoría Laboral del Valor, Financiarización, Teoría Monetaria Moderna, Teoría Marxista, Chartalismo, Trabajo Garantizado |
| JEL: | B24 B25 E02 P16 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ahe:dtaehe:1905&r=all |