nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2019‒09‒23
four papers chosen by
Karl Petrick
Western New England University

  1. COLLECTIVE EMOTIONS AND PROTEST VOTE By Carlo Altomonte; Gloria Gennaro; Francesco Passarelli
  2. Reconsidering the Role of Farmer Politics in Swedish Democratization By Bengtsson, Erik
  3. How economics became an interventionist science (and how it ceased to be) By Rafael Galvão de Almeida
  4. Modern industrial policy in Latin America: Lessons from cluster development policies By Pietrobelli, Carlo

  1. By: Carlo Altomonte; Gloria Gennaro; Francesco Passarelli
    Abstract: We leverage on important findings in social psychology to build a behavioral theory of protest vote. An individual develops a feeling of resentment if she loses income over time while richer people do not, or if she does not gain as others do, i.e. when her relative deprivation increases. In line with the Intergroup Emotions Theory, this feeling is amplified if the individual identifies with a community experiencing the same feeling. Such a negative collective emotion, which we define as aggrievement, fuels the desire to take revenge against traditional parties and the richer elite, a common trait of populist rhetoric. The theory predicts higher support for the protest party when individuals identify more strongly with their local community and when a higher share of community members are aggrieved. We test this theory using longitudinal data on British households and exploiting the emergence of the UK Independence Party (UKIP) in Great Britain in the 2010 and 2015 national elections. Empirical findings robustly support theoretical predictions. The psychological mechanism postulated by our theory survives the controls for alternative non-behavioral mechanisms (e.g. information sharing or political activism in local communities).
    Keywords: electoral behaviour, protest vote, populism, relative deprivation, community cohesion, UK Independence Party
    Date: 2019
  2. By: Bengtsson, Erik (Department of Economic History, Lund University)
    Abstract: In discussions of Scandinavian democratization, it is commonplace to argue that long-standing farmer representation in parliament and a lack of feudalism encouraged a democratic-participatory civic culture within the peasant farmer class – or perhaps in the population as a whole. The present essay questions this interpretation in the Swedish case. It centers on a re-interpretation of farmer politics at the national level from a two-chamber system of representation after the 1866-67 reform to the alliance between the farmers’ party and Social Democracy in 1933 and offers a new analytical account of the way that one class’s attitude to democratic inclusion can change over time, owing to changed political and economic relationships to other classes. I show that Swedish farmers did not organize themselves independently of nobles and land-owners until the 1920s, and that they did not play the role of an independent pro-democratic force. On the contrary, the broad-based organizations of farmers in the 1920s and 1930s, with their democratic, participatory culture, appear to have been heavily influenced by the political culture of liberals and the labor movement, which in democratic society opened the door to a re-shaping of Swedish farmer politics that abandoned the old (subservient) alliance with estate owners. It was not democratic farmers who gave rise to Social Democracy – rather, it was Social Democracy that caused farmers to become democratic. Understanding farmer politics correctly also opens up a new understanding of the determinants of Swedish democratization.
    Keywords: democratization; agrarian politics; Sweden; class structure; farmers; Sonderweg
    JEL: H10 N53 N54 P16
    Date: 2019–08–21
  3. By: Rafael Galvão de Almeida (Cedeplar-UFMG)
    Abstract: The relationship between economics and State has been intimate ever since classical political economy. However, perceptions about the role and size of the State have changed according to the epoch. In other words, economic theory assigned a bigger or a smaller role to the State depending on the political situation. This article analyses the change in economists and economic theory’s perception of the role of the State in the economy, from favoring an interventionist approach from the 1930s to the 1960s, and a liberal approach from 1970s, in order to understand the factors behind this change.
    Keywords: theory of economic policy; economic planning; liberalism; neoliberalism
    Date: 2019–09
  4. By: Pietrobelli, Carlo (UNU-MERIT, and University of Roma Tre)
    Abstract: Industrial clusters have developed in many regions and countries of Latin America. Active public policies have often supported them at the national (federal) and local levels, sometimes with the financial and technical assistance of international organizations. These experiences have been most remarkable, and share several elements of the 'modern' industrial policies that enjoy an increasing consensus in the literature. The vast experience of locally based forms of active policies that have proliferated in Latin America reflects a modern approach to industrial policies, and an example for other developing countries. Such approach has typically included clever interactions of private and government sectors, a process of search and discovery of the necessary public policy inputs, and an interactive design and implementation of these policies.
    Keywords: Industrial policy, innovation policy, innovation and learning, cluster development, industrial clusters
    JEL: O25 O43 L14
    Date: 2019–09–11

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