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on Post Keynesian Economics |
| By: | Hein, Eckhard |
| Abstract: | We introduce a gender wage gap into basic one-good textbook versions of the neo-Kaleckian distribution and growth model and examine the effects of improving gender wage equality on income distribution, aggregate demand, capital accumulation and productivity growth. For the closed economy model, reducing the gender wage gap has no effect on the profit share, and a gender equality-led regime requires the propensity to save out of female wages to fall short of the propensity to save out of male wages. For the open economy model this condition is modified by the effects of improved gender wage equality on exports and - through changes of the profit share - on domestic demand. Finally for the open economy with productivity growth we find an unambiguously expansionary effect of narrowing the gender wage gap on long-run equilibrium capital accumulation and productivity growth if the demand growth regime is gender equality-led. A gender equality-burdened demand growth regime, however, may generate different long-run effects of improving gender wage equality on capital accumulation and productivity growth: expansionary, intermediate or contractionary. |
| Keywords: | gender wage gap,distribution,growth,Kaleckian model |
| JEL: | E11 E21 E22 O40 O41 |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ipewps:1412020 |
| By: | Tom van Veen |
| Abstract: | Macroeconomic theory has developed into increasingly sophisticated mathematical models. In the words of Mankiw, macroeconomics has developed from engineering into science. The Global Financial Crisis (GFC) revealed that the empirical relevance and the usefulness of these models is debatable. Why has this occurred? Who have been the key players in this development? What have been the policy implications of this development? This paper addresses these points by providing an overview of the development of macroeconomic theory over the past 40 years. The focus is on the main lines of thinking and the story behind the models more so than on the mathematical details of these models. I argue that crises have been the main driver of changes in macroeconomic theory and that the current debates after the GFC will be the start of a more plural approach to macroeconomics, in which engineers will regain their place. |
| Keywords: | macroeconomic theory, Keynes, Friedman, Lucas |
| JEL: | B22 E12 E60 |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_8256 |
| By: | Dombi, Akos; Grigoriadis, Theocharis; Zhu, Junbing |
| Abstract: | This paper explores the impact of antiquity on capitalism through the finance-growth nexus. We define antiquity as the length of established statehood (i.e., state history) and agricultural years. We argue that extractive institutions and deeply entrenched interest groups may prevail in societies with ancient roots. The paper offers an in-depth analysis of one particular channel through which extractive institutions may impair economic growth: the finance-growth channel. We propose that in countries with ancient statehood, the financial sector might be captured by powerful economic and political elites leading to a distorted finance-growth relationship. We build a model in which the equilibrium relationship between companies and banks depends on the entrenchment of the economic elites and the length of established statehood. To validate our argument empirically, we run panel-threshold regressions on a global sample between 1970 and 2014. The regression results are supportive and show that financial development - measured by the outstanding amount of credit - is negative for growth in states with ancient institutional origins, while it is positive in relatively younger ones. |
| Keywords: | antiquity,finance-growth nexus,interest groups,rent-seeking |
| JEL: | C70 N20 O16 O17 O47 |
| Date: | 2020 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fubsbe:20209 |
| By: | Michaël Assous (Université Lyon 2, CNRS, Triangle); Olivier Bruno (Université Côte d'Azur, CNRS, GREDEG, France; Skema Business School); Vincent Carret (Université Lyon 2, CNRS, Triangle); Muriel Dal Pont Legrand (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | From the outset, expectations were a central part of the first macrodynamic models and early growth theories. In the 1940s, a third line of research emerged which questioned the capacity of an economy to reach full-employment equilibrium. Starting with Alvin Hansen (1938) and culminating with Oskar Lange (1944), the crux of the debate evolved from the existence of full employment equilibrium to analysis of its stability, suggesting an increased role for expectations and finally challenging the economic system's global stability. The present paper traces those debates through the contributions of Hansen, Paul Samuelson and Lange. Using archives materials, we show that while Samuelson's analysis of instability remained implicit, his correspondence reveals that he encouraged Oskar Lange to examine it more carefully. Lange's results are presented in his 1944 Cowles Commission Monograph. We point out that his contribution cannot be understood in isolation either from his exchanges with Samuelson or the way that Keynesian ideas were being interpreted in the United States. The paper finally questions Samuelson's view on instability and expectations. |
| Keywords: | expectations, (in-)stability, full-employment, wages dynamics, Hansen, Samuelson, Lange |
| JEL: | B2 B22 B3 D5 |
| Date: | 2020–05 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2020-17 |
| By: | Thomas Simon (Johns Hopkins University) |
| Abstract: | Although the indirect (Bilateral Investment Treaties (BITs), arbitral decisions, and Corporate Social Responsibility (CSR)) and direct (Accord, Alliance) responses to the Rana Plaza and similar disasters, eventually, made improvements for workers in the Ready Made Garment (RMG) industry, they ultimately have proven unsatisfactory because they do not challenge the fundamental and structural impediment, namely, the dominance of the economic investment regime over human rights. A new paradigm anchored in health law creates an entirely new and fresh framework for rethinking the problems. Within that health paradigm, a ban on workplace smoking can provide a wedge for opening the door for workers to begin to make fundamental changes in their well-being. Health, for far too long, has remained at the bottom of the human rights hierarchy. Putting health first actually makes it more likely that safety issues will be adequately addressed in a systematic and meaningful way. Giving priority to health rights creates opportunities to radically change the terms of the debates. Using a ban on workplace smoking provides a wedge and the first step to effecting this radical transformation. |
| Keywords: | corporate social responsibility, bilateral investment treaties, industrial disasters, right to health, workers rights |
| JEL: | K32 K31 K33 |
| Date: | 2020–02 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iacpro:10012671 |
| By: | Douglas L. Campbell (New Economic School) |
| Abstract: | A central tenet of economics is that prices matter. A corollary is that in a world with sunk costs, historical prices can affect current economic outcomes. There exists a large theoretical literature on exchange rate hysteresis, but recent empirical treatments are scarce. To fill the gap, I employ new measures of real exchange rates (RERs) to study the impact of large, temporary movements in relative prices on the US manufacturing sector. To identify a causal impact of RER movements on manufacturing, I test whether sectors more exposed to international trade respond differently when relative prices appreciate. I also compare the US experience to Canada’s in the mid-2000s, when high oil prices and a falling US dollar led to an equally sharp appreciation of the Canadian dollar. I find that temporary RER shocks have a surprisingly persistent impact on employment, output, and productivity in relatively more open manufacturing sectors. |
| Keywords: | Exchange Rates, American Manufacturing, Hysteresis, Trade |
| JEL: | F10 F16 L60 |
| URL: | https://d.repec.org/n?u=RePEc:abo:neswpt:w0263 |
| By: | Steven Haggblade; Danielle Resnick |
| Abstract: | KEY FINDINGS -The Kaleidoscope Model (KM) assesses key factors that drive policy change. -This brief summarizes the 16 key hypotheses emerging from the KM. -The KM offers several practical tools for stakeholders interested in improving policy system performance or those aiming to intervene more effectively in a specific policy setting. |
| Keywords: | Food Security and Poverty, International Development |
| Date: | 2018–05–20 |
| URL: | https://d.repec.org/n?u=RePEc:ags:miffpb:303565 |