nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2020‒08‒10
six papers chosen by
Karl Petrick
Western New England University

  1. A Veblenian Critique of Nelson and Winter’s Evolutionary Theory By Jo, Tae-Hee
  2. The Populist Economic Policy Paradigm: Early Peronism as an Archetype By Emilio Ocampo
  3. ¿Keynes salvó al mundo de la Gran Depresión? By Emilio Ocampo
  4. Incomes from Capital in Alternative Economic Theories By Fratini, Saverio M.
  5. A Neglected Route to Krugman’s Liquidity Trap Revival By Di Bucchianico, Stefano
  6. Women in economics: A UK Perspective By Danula K. Gamage; Almudena Sevilla; Sarah Smith

  1. By: Jo, Tae-Hee
    Abstract: It is often argued that Richard Nelson and Sydney Winter’s evolutionary theory is an alternative to neoclassical economics and is compatible with or complementary to Veblenian evolutionary economics. This paper subjects such arguments to critical examination. I argue that while Nelson and Winter’s theory provides a more realistic account of the firm behavior than Marshallian-neoclassical theory does, it is a neoclassical evolutionary theory in much the same sense as Marshall’s economics is quasi-evolutionary, ‘neo-classical’ economics according to Veblen. Therefore, Nelson and Winter’s evolutionary theory is in fact a protective modification of neoclassical economics and is antithetical to Veblen’s evolutionary economics.
    Keywords: Thorstein Veblen, Richard Nelson, Sydney Winter, Evolutionary Theory, Institution
    JEL: B15 B25 B52
    Date: 2020–06–26
  2. By: Emilio Ocampo
    Abstract: Before Hugo Chavez burst into the political scene in Venezuela, Argentina’s Juan Peron (1895- 1974) was considered the quintessential Latin American populist leader. He ruled Argentina from mid 1943 until September 1955 and between 1973 and 1974 and his political party has been in power two thirds of the time since the reestablishment of democracy in 1983. Perón’s economic policies between 1946 and 1949 are also considered archetypical. The Peronist economic policy paradigm (PEPP) emphasized income redistribution and a fiscally induced expansion of aggregate demand at the expense of productivity and allocative efficiency. Although the ideological roots of Peronism can be directly traced back to Fascism, when it came to his economic policies, Perón claimed to have been inspired by FDR’s New Deal and Keynes’s General Theory. However, in mosts respects, in their early stage, Peronist economic policies resemble more those proposed by Sir Oswald Mosley (1896-1980) in 1930. This paper describes the PEPP, its implementation and results and evaluates several hypothesis regarding its intellectual roots.
    Keywords: Peronism, Fascism, Economic Policy, Argentina
    JEL: B00 B29 E60 E65 N14 N16 O23 P40 B29 E60 E65 N14 N16 O23 P40 P47
    Date: 2020–06
  3. By: Emilio Ocampo
    Abstract: Desde hace décadas se debate que grado de influencia tuvo John Maynard Keynes sobre las políticas de expansión del gasto adoptadas por los gobiernos de los principales países industrializados para salir de la Gran Depresión, especialmente en Estados Unidos. El asincronismo de la publicación de la Teoría General (1936) y el lanzamiento del New Deal (1933) no permite descartar que la haya tenido, ya que venía abogando públicamente por esas políticas desde al menos 1924 para reducir el alto desempleo en Gran Bretaña. El presente trabajo tiene dos objetivos. Primero, describir la evolución de las ideas de Keynes respecto al problema del desempleo durante el período 1920-1935 en el contexto político y económico de Gran Bretaña. Segundo, demostrar que antes de 1930 tanto en Estados Unidos como en Alemania surgieron de manera independiente ideas y propuestas similares a las de Keynes. Por lo cual tampoco es posible confirmar su influencia.
    Keywords: Keynes, Gran Depresión, Austeridad, Déficit, Políticas Anti-cíclicas
    JEL: N14 E24 E32
    Date: 2020–07
  4. By: Fratini, Saverio M. (Roma Tre University)
    Abstract: This paper addresses the theoretical explanation of profit and interest within three different approaches: i) classical/Marxian; ii) marginalist; and iii) Arrow-Debreu. In the classical/Marxian approach, incomes from capital are understood as a surplus whose amount depends on the class conflict. In the marginalist theory, the rate of interest is the price firms pay to households for the use of a factor of production named ‘capi-tal’. In the Arrow-Debreu equilibrium theory, interest rates and firm profit are still present, but, as we shall try to show, they can hardly be seen as income from capital.
    Keywords: Capital profit; interest.
    JEL: B51 D24 D51
    Date: 2020–07–20
  5. By: Di Bucchianico, Stefano (University of Siena)
    Abstract: Krugman’s 1998 seminal model that revived the liquidity trap theory stimulated a debate on its origins in and differences with respect to Keynes and Hicks’s insights. The present paper illustrates and comments on a neglected line of thought innervating Krugman’s model, which hinges on the presence of a negative natural rate of interest. This result is argued to en-sue from theoretical premises analogous to those present in Samuelson’s 1958 article on the overlapping generations model. In turn, Samuelson obtained a negative equilibrium interest rate by opportunely recasting Böhm-Bawerk’s three causes for a positive rate of interest.
    Keywords: three causes for a positive rate of interest; liquidity trap; negative natural rate of interest; Krugman; Samuelson
    JEL: B13 B20 B30
    Date: 2020–07–27
  6. By: Danula K. Gamage; Almudena Sevilla; Sarah Smith
    Abstract: The status of women in economics in the US has come increasingly under the spotlight. We exploit high quality administrative data to paint the first comprehensive picture of the status of women in UK academic economics departments in research-intensive universities. Our evidence indicates that, as in the US, women in economics are under-represented and are paid less than men. The issues facing women in economics in the UK are similar to other disciplines particularly STEM but have received less national policy attention to date. We conclude with a discussion of interventions that might improve the status of women in academia and we present new evidence that a UK academic diversity programme (Athena Swan) has narrowed the gender pay gap at a senior level.
    Date: 2020–07–23

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