nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2019‒12‒23
eleven papers chosen by
Karl Petrick
Western New England University

  1. Complexity, the Evolution of Macroeconomic Thought, and Micro Foundations By David Colander
  2. Reacting to the Lucas Critique: The Keynesians' Replies By Goutsmedt, Aurélien; Pinzón-Fuchs, Erich; Sergi, Francesco; Renault, Matthieu
  3. À propos de l’ouvrage de John E. King : Post Keynesian Economics By Bruno Tinel
  4. Intergenerational Mobility in American History: Accounting for Race and Measurement Error By Zachary Ward
  5. Present and future of evolutionary economics: post-institutionalist’s opinion By Frolov, Daniil
  6. Developmental origins of health inequality By Gabriella Conti; Giacomo Mason; Stavros Poupakis
  7. The manifesto of post-institutionalism: institutional complexity research agenda By Frolov, Daniil
  8. Development and progress: the myth of a moral ideal By Alba Moreira Pinargote
  9. “Truly, Much Can Be Done”: Cooperative Economics from the Book of Acts to Pope Francis By Schneider, Nathan
  10. Leadership for quality early childhood education and care By Anne L. Douglass
  11. DECEPTIVE GAME OF TODAY’S CAPITALIST GLOBALIZATION Evidence from Malaysia’s Experience By Molla, Rafiqul Islam; Alam, Md. Mahmudul; Murad, Wahid

  1. By: David Colander (Middlebury College)
    Date: 2019–12
  2. By: Goutsmedt, Aurélien (Duke University); Pinzón-Fuchs, Erich (Université Paris 1 Panthéon-Sorbonne); Sergi, Francesco; Renault, Matthieu
    Abstract: In 1976, Robert Lucas explicitly criticized Keynesian macroeconometric models for their inability to correctly predict the effects of alternative economic policies. Today, most contemporary macroeconomists and some historians of economics consider that the Lucas’s critique led forcefully to immediate disqualification of the Keynesian macroeconometric approach. This narrative is based on the interpretation of the Lucas Critique as a fundamental principle for economic reasoning that was (and still is) logically unquestionable. We consider that this narrative is problematic both in terms of historiography and of the effects that it can have in the field as a way of assigning importance and credit to particular macroeconomists. Indeed, the point of view of the Keynesian economists is missing despite the fact that they were the target of Lucas’s paper and that throughout the 1970s and 1980s they produced a fierce reaction against it. In this paper, we analyze the reactions by a broad set of authors (that we label as “Keynesians”) that disputed the relevance of the critique. In spite of their diversity in methodological, theoretical, and policy issues, these reactions were characterized by their common questioning of the empirical and practical relevance of the Lucas critique.
    Date: 2019–02–28
  3. By: Bruno Tinel (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Ce livre de 138 pages (index compris) est publié dans la série « Elgar Advanced Introductions »1 il s'agit d'une présentation spécialisée de l'économie post-keynésienne. Il ne s'adresse pas aux néophytes. Ceux qui, à l'instar des étudiants de master, ont déjà une petite idée des clivages centraux qui existent dans l'analyse économique, et tout particulièrement en macro-économie, trouveront dans ce livre une synthèse bien utile qui peut leur apporter de nombreux points de repère car il dresse un inventaire très construit des thèmes essentiels et des questions qui font débat au sein du courant post-keynésien aujourd'hui.
    Date: 2018
  4. By: Zachary Ward
    Abstract: A large body of evidence suggests that intergenerational mobility in the United States has declined over the past 150 years. However, research that finds high relative mobility in America’s past is based on data with few or no black families, and therefore does not account for the limited opportunities available for African Americans. Moreover, historical studies often measure the father’s economic status with error, which biases estimates towards greater mobility. Using new early 20th century data, I show that the persistence of economic status from father to son is over twice as strong after accounting for racial disparities and for measurement error. After addressing these two issues, I estimate that relative mobility has increased over the 20th century. The results imply that there is greater equality of opportunity today than in the early 20th century, mostly because opportunity was never that equal.
    Keywords: intergenerational mobility, measurement error, persistence
    JEL: J62 N31 N32
    Date: 2019–11
  5. By: Frolov, Daniil
    Abstract: Modern evolutionary economics is in the ripening phase and at the same time demonstrates clear signs of an internal crisis. Having become one of the main pillars of economic heterodoxy, this scientific community still does not have a common methodological framework, an agreed research program and a system of normative settings. Indirectly responding to this crisis, a group of leading evolutionists led by Richard Nelson in the book «Modern Evolutionary Economics: An Overview» (2018) suggests moving from direct competition with the neoclassical mainstream to a compromise solution. The compromise is to complement neoclassicism with implicit evolutionary thinking, i.e. adoption of the thesis “history matters” as the basic premise of analysis, even when studying economic phenomena in statics. Similar crisis processes (and attempts at compromise solutions) are now observed in neoinstitutional theory - the mainstream of modern institutionalism - especially in the field of studying the evolution of institutions. The author, as a representative of post-institutionalism, argues that these crises are based on the exhaustion of the potential of the neo-Darwinist paradigm as a source of conceptual metaphors for studies of the economic and social evolution. Overcoming the paradigmal crisis requires going beyond the prevailing (and already dogmatized) metaphors. The necessary conditions have formed for this step: a paradigm shift is taking place in modern biological science - an extended evolutionary synthesis is taking the place of neo-Darwinism, the «core» of which is evolutionary developmental biology (Evo-Devo). In this regard, evolutionary economists have the opportunity to update the basic methodological «settings» by moving from neo-Darwinist metaphors to metaphors of the Evo-Devo. The article presents three complex priority tasks related to the implementation of the Evo-Devo paradigm. First, the rejection of any version of reductionism, in particular from mono-aspect, monocausal and dichotomous thinking. Secondly, the rejection of the optimization and dysfunctional approaches with the transition to bricolage thinking, based on a positive perception of the organic imperfection of economic institutions, mechanisms and systems. Thirdly, the addition of the traditional systemic approach to assemblage thinking with an emphasis on hybrid systems, the multiplicity of their logics and the inevitability of their conflicts. It is shown that the Evo-Devo paradigm allows a more adequate explanation of the evolution of the irreducible complexity of economic systems
    Keywords: economic evolution; institutions; complexity; evolutionary economics; institutional economics; methodology
    JEL: A14 B41 B52
    Date: 2019–09–24
  6. By: Gabriella Conti (Institute for Fiscal Studies and University College London); Giacomo Mason (Institute for Fiscal Studies); Stavros Poupakis (Institute for Fiscal Studies and University of Essex)
    Abstract: Building on early animal studies, 20th-century researchers increasingly explored the fact that early events – ranging from conception to childhood – affect a child’s health trajectory in the long-term. By the 21st century, a wide body of research had emerged, incorporating the original ‘Fetal Origins Hypothesis’ into the ‘Developmental Origins of Health and Disease’. Evidence from OECD countries suggests that health inequalities are strongly correlated with many dimensions of socio-economic status, such as educational attainment; and that they tend to increase with age and carry stark intergenerational implications. Different economic theories have been developed to rationalize this evidence, with an overarching comprehensive framework still lacking. Existing models widely rely on human capital theory, which has given rise to separate dynamic models of adult and child health capital, within a production function framework. A large body of empirical evidence has also found support for the developmental origins of inequalities in health. On the one hand, studies exploiting quasi-random exposure to adverse events have shown long-term physical and mental health impacts of exposure to early shocks, including pandemics or maternal illness, famine, malnutrition, stress, vitamin deficiencies, maltreatment, pollution and economic recessions. On the other hand, studies from the 20th century have shown that early interventions of various content and delivery format improve life course health. Further, given that the most socioeconomically disadvantaged groups show the greatest gains, such measures can potentially reduce health inequalities. However, studies of long-term impacts, as well as the mechanisms via which shocks or policies affect health, and the dynamic interaction amongst them, are still lacking. Mapping the complexities of those early event dynamics is an important avenue for future research.
    Date: 2019–06–26
  7. By: Frolov, Daniil
    Abstract: The article discusses the internal dualism of modern institutional economics, manifested in division of orthodox or mainstream institutionalism (its axiomatics and dogmatics is represented by the Standard Model) and its opposition – post-institutionalism. It discusses the post-institutional agenda, covering a wide range of discussion issues beyond Standard Model – from the analysis of institutional complexity to introducing a new paradigm of evolutionary analysis of institutions. It demonstrates that in the focus of post-institutionalism there are complex and supercomplex institutional phenomena and processes, which can only be comprehended by overcoming reductionist methodological approaches of the institutional mainstream
    Keywords: institutional complexity, institutions, institutional systems, transaction costs, institutional evolution, post-institutionalism
    JEL: B41 B52
    Date: 2019–10–17
  8. By: Alba Moreira Pinargote (Universidad de Cantabria [Santander])
    Abstract: Briefly tracing the main critical theories around the development and progress paradigm allow us to focus attention on questions such as what does it mean to live in development? Why is it necessary to develop and to what extent? How is development achieved? The conceptual approach draws the key lines for the understanding of the hegemonic discourse established in the collective imaginary as a moral ideal in the economic, social and political configuration of societies, as a concept, theory and practice. Concepts understood as inevitable ideals of any traditional society towards a superior. This theoretical review is part of the ongoing doctoral research project entitled «Montuvias. A decolonial feminist look at the development / progress paradigm in Ecuador», so a brief conceptual description of the gender perspective in development is also made.
    Abstract: Rastrear brevemente las principales teorías críticas en torno al paradigma de desarrollo y progreso permiten centrar la atención en cuestionamientos tales como ¿qué significa vivir en desarrollo?, ¿por qué es necesario desarrollarse y en qué medida?, ¿cómo se consigue el desarrollo? La aproximación conceptual traza las líneas claves para la comprensión del discurso hegemónico instaurado en el imaginario colectivo como un ideal moral en la configuración económica, social y política de las sociedades, como concepto, teoría y práctica. Conceptos entendidos como ideales inevitables de toda sociedad tradicional hacia una superior. Esta revisión teórica hace parte del proyecto de investigación doctoral en curso titulado «Montuvias. Una mirada feminista decolonial al paradigma de desarrollo/progreso en el Ecuador», por lo que también se realiza una breve descripción conceptual de la perspectiva de género en el desarrollo.
    Keywords: Third World,Gender,Miscegenation,Coloniality,Tercer Mundo,Género,Mestizaje,Colonialidad
    Date: 2019–10–28
  9. By: Schneider, Nathan (University of Colorado Boulder)
    Abstract: for Care for the World: Laudato Si’ and Catholic Social Thought in an Era of Climate Crisis, edited by Frank Pasquale (Cambridge University Press, 2019) At several key moments in Laudato Si’, Pope Francis makes passing reference to cooperative economics – when speaking of a more human relationship with technology, for instance, and in relation to sustainable energy production. Reading these in light of his past statements on economic cooperation, it is evident that “cooperative,” for him, is no vague nicety; rather, he is referring to a robust tradition of Catholic economic thought grounded in distributed ownership of the means of production and the precedence of persons over capital. This essay reviews the contours of the tradition that the pope is referring to, beginning with his own past statements on cooperative enterprise. It considers the foundations in biblical narratives of the early church; notions of the commons in early canon law; economic practices in monastic cultures; Catholic leadership in the emergence of modern cooperation; and the current, complex interactions between Catholic thought and the secular resurgence of cooperative economics. In addition to tying together historical threads, it draws from reporting on contemporary cooperative enterprise and on Francis’s pre-papal history with cooperativism in Argentina. Cooperative economics is a central yet under-appreciated backdrop to what the pope attempted to accomplish in Laudato Si’, and a vital component of the hope for “integral ecology” that he envisions.
    Date: 2019–02–26
  10. By: Anne L. Douglass (University of Massachusetts)
    Abstract: This literature review examines the research on early childhood education and care (ECEC) leadership and how leaders impact process quality in ECEC settings. Process quality refers to interactions and relationships between and among children and ECEC staff, and is a strong predictor of children’s learning, development and well-being. Research suggests that leadership plays a central role in improving and sustaining process quality in ECEC settings. This literature review presents findings about: 1) the functions, roles and structures of leadership in ECEC settings, 2) factors that may support or hinder leadership and its effectiveness, 3) working conditions and professional development for staff, and 4) how these factors might impact process quality. The results suggest that supports for ECEC leadership may be needed to strengthen areas such as leadership recruitment, preparation and professional development, credentialing and compensation, job design and further research.
    Date: 2019–12–19
  11. By: Molla, Rafiqul Islam; Alam, Md. Mahmudul (Universiti Utara Malaysia); Murad, Wahid
    Abstract: Globalization is the economic policy of integration of national economies with global economy on the basis of free market competition. It is a neoliberal prescription for industrialization and growth of the emerging economies of the South and a project of capital accumulation for the capitalist North through a process of securing disproportionate share of benefits at the expense of the developing South. The content analysis and Malaysia’s globalization experience poise to support the hypothesis that globalization has high potential to contribute to industrialization and growth of the emerging economies, but at the same time, the way it is practiced, it is a deceptive game of the North and cannot be trusted wholeheartedly for emancipation of the developing economies. The paper suggests for a policy of target oriented ‘inclusive globalization’ to ensure equitable share of benefits of specialization and globalization.
    Date: 2019–02–23

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