nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2019‒03‒18
six papers chosen by
Karl Petrick
Western New England University

  1. La gran dama: Science patronage, the rockefeller foundation, and the Mexican social sciences in the 1940s By Morcillo Laiz, Álvaro
  2. Violent Crime and the Overmilitarization of US Policing By Federico Masera
  3. Economic resilience from input-output susceptibility improves predictions of economic growth and recovery By Peter Klimek; Sebastian Poledna; Stefan Thurner
  4. Why the Economics Profession Must Actively Participate in the Privacy Protection Debate By John M. Abowd; Ian M. Schmutte; William N. Sexton; Lars Vilhuber
  5. Trade and growth in the Iron Age By Jan David Bakker; Stephan Maurer; Jörn-Steffen Pischke; Ferdinand Rauch
  6. Greening monetary policy By Schoenmaker, Dirk

  1. By: Morcillo Laiz, Álvaro
    Abstract: The literature on the development of Mexican social sciences during the twentieth century has rarely considered universities as part of the state. If we do, then universities are characterized by traits similar to those of the state, such as clientelism. This plausible hypothesis has never been fully unexamined. Another trait of the literature that impairs our knowledge of the Mexican social sciences is the neglect of external actors, in particular by US philanthropies. In this manuscript I argue that the Rockefeller Foundation patronised liberal scholarship, practiced according to formal rational criteria, as an alternative to what foundation officers perceived as clientelism and amateurism at universities. While in the long run foundations were extremely consequential for Latin American social sciences, and therefore frequently considered part of a US imperialistic drive towards cultural hegemony in Latin America, they were not unitary actors and frequently failed to predict the actual impact of their grants.
    Keywords: intellectual history,sociology of science,history of sociology,international political sociology,cultural diplomacy,U.S.-Latin American relations,Mexico,Rockefeller Foundation,José Medina Echavarría,Daniel Cosío Villegas,El Colegio de México,Instituto de Investigaciones Sociales (UNAM),Wissenschaftssoziologie,Soziologiegeschichte,Internationale politische Soziologie,Kulturdiplomatie,Wissenschaftsförderung,US-lateinamerikanische Beziehungen,Mexiko,Rockefeller Stiftung
    Date: 2019
  2. By: Federico Masera (UNSW Business School)
    Abstract: Using new data at the police department level, I propose an identification strategy to estimate the causal effect that police militarization has on reducing violent crime. I show that previous estimates are likely to be contaminated by unobserved factors that simultaneously determine militarization and violent crime. Upon addressing this issue, I find an effect that is 20 times as large as previously estimated. I then find that one fourth of the effect of militarization is due to the displacement of violent crime to neighboring areas. Police departments overmilitarize because they do not consider this externality. These new findings have significant implications for the policy debate concerning the costs and benefits of police militarization.
    Date: 2019–02
  3. By: Peter Klimek; Sebastian Poledna; Stefan Thurner
    Abstract: Modern macroeconomic theories were unable to foresee the last Great Recession and could neither predict its prolonged duration nor the recovery rate. They are based on supply-demand equilibria that do not exist during recessionary shocks. Here we focus on resilience as a nonequilibrium property of networked production systems and develop a linear response theory for input-output economics. By calibrating the framework to data from 56 industrial sectors in 43 countries between 2000 and 2014, we find that the susceptibility of individual industrial sectors to economic shocks varies greatly across countries, sectors, and time. We show that susceptibility-based predictions that take sector- and country-specific recovery into account, outperform--by far--standard econometric growth-models. Our results are analytically rigorous, empirically testable, and flexible enough to address policy-relevant scenarios. We illustrate the latter by estimating the impact of recently imposed tariffs on US imports (steel and aluminum) on specific sectors across European countries.
    Date: 2019–02
  4. By: John M. Abowd; Ian M. Schmutte; William N. Sexton; Lars Vilhuber
    Abstract: When Google or the U.S. Census Bureau publish detailed statistics on browsing habits or neighborhood characteristics, some privacy is lost for everybody while supplying public information. To date, economists have not focused on the privacy loss inherent in data publication. In their stead, these issues have been advanced almost exclusively by computer scientists who are primarily interested in technical problems associated with protecting privacy. Economists should join the discussion, first, to determine where to balance privacy protection against data quality; a social choice problem. Furthermore, economists must ensure new privacy models preserve the validity of public data for economic research.
    Date: 2019–03
  5. By: Jan David Bakker; Stephan Maurer; Jörn-Steffen Pischke; Ferdinand Rauch
    Abstract: Stephan Maurer and colleagues investigate the growth effects of one of the first trade expansions in history: the crossing of the Mediterranean by the Phoenicians
    Keywords: growth,trade
    Date: 2019–03
  6. By: Schoenmaker, Dirk
    Abstract: Central banks look at climate related risks at the financial stability side. Should they also take carbon intensity of assets into account at the monetary policy side? After reviewing the central bank mandate, the paper proposes a tilting approach to steer the Eurosystem's asset and collateral framework towards low carbon assets. We find that a modest tilting approach could reduce carbon emissions in the Eurosystem's corporate and bank bond portfolio by over 40 per cent. It could also lower the cost of capital of low carbon companies in comparison with high carbon companies by 4 basis points. Our findings suggest that such a low carbon allocation can be done without undue interference with the transmission mechanism of monetary policy. Price stability, the primary objective, is, and should remain, the priority of the Eurosystem.
    Keywords: Assets; Carbon Emissions; Collateral; cost of capital; monetary policy
    JEL: E52 E58 Q01 Q52
    Date: 2019–03

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