nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2020‒10‒05
six papers chosen by
Karl Petrick
Western New England University

  1. Fiscal Expansion, Government Debt and Economic Growth: A Post-Keynesian Perspective By Parui, Pintu
  2. An overview of gender inequality in Latin America from a political economy perspective By Quinonez, Pablo; Maldonado-Erazo, Claudia
  3. GOLFING WITH TRUMP: Social capital, decline, inequality, and the rise of populism in the US By Andres Rodriguez-Pose; Neil Lee; Cornelius Lipp
  4. f_able: Estimation of marginal effects for models with alternative variable transformations By Fernando Rios-Avila
  5. Rural civil society and the role of social mobilisation in poverty reduction and sustainable rural development By Anna Korzenszky; Sara Vicari; Guilherme Brady
  6. The Effectiveness of Monetary Policy Reconsidered By John Weeks

  1. By: Parui, Pintu
    Abstract: Constructing a post-Keynesian growth model, we try to explore how the interaction between capital accumulation and government debt opens up the possibility of multiple equilibria and instability in the economy. We investigate the impact of various parameters such as different tax rates, savings propensities, interest rate etc. on the short run aggregate demand and long run equilibrium growth rate and fiscal debt-capital ratio. We explore the relationship between a progressive tax system and wage-led demand regime. We show that when there is fiscal deficit and government incurs debt, a sufficiently high government expenditure to GDP ratio is essential for achieving stability in the system. Moreover, in a certain case, a low speed of adjustment of the rate of capital accumulation is required, as otherwise, the economy may lose its stability and produces the limit cycles. In case of a moderate level of a fiscal expenditure to GDP ratio, when Keynesian stability condition is satisfied, a lower rate of interest and a higher autonomous investment demand are desirable as they enhance the stable region of the economy.
    Keywords: Government deficits and debt, Post-Keynesian, Instability, Limit cycle, Growth model
    JEL: C62 E12 E32 E62 O41
    Date: 2020–09–03
  2. By: Quinonez, Pablo; Maldonado-Erazo, Claudia
    Abstract: This article explains what shapes the gender dimension of economic inequalities in Latin America from the perspective of political economy. In order to do so, we follow Frank Stilwell's (2012) framework and use the model of the circuit of capital proposed by Marx and situate gender in the sequential conditions for capital accumulation. In this context, gender inequalities are seen as functional to the accumulation of capital since they help meeting three of the requirements for its expansion, namely the reproduction of labor power, the production of surplus value, and the realization of surplus value. Therefore, we conclude that non-coordinated efforts, claims for inclusion, and the invocation of specific differences are far from solving the problem of gender inequality if they are not part of a broader effort that understands the structural nature of the issue. Additionally, we emphasize the specific conditions that differentiate the situation of women in this region from elsewhere, as well as the cultural and institutional characteristics that have contributed to the relegation of women in Latin America over time.
    Keywords: capital; gender; inequality; Latin America; Stilwell
    JEL: B51 B54 J16
    Date: 2020
  3. By: Andres Rodriguez-Pose; Neil Lee; Cornelius Lipp
    Abstract: In 2000 Robert Putnam forecast that United States (US) democracy was at risk from the twin challenges of declining civic engagement and rising interpersonal inequality. Sixteen years later, his predictions were vindicated by the election of Donald Trump as president of the US. This paper analyses the extent to which the election of Donald Trump was related to levels of social capital and interpersonal inequalities and posits a third alternative: that the rise in vote for Trump in 2016 was the result of long-term economic and population decline in areas with strong social capital. This hypothesis is confirmed by the econometric analysis conducted for counties across the US. Long-term declines in employment and population – rather than in earnings, salaries, or wages – in places with relatively strong social capital propelled Donald Trump to the presidency. By contrast, low social capital and high interpersonal inequality were not connected to a surge in support for Trump. These results are robust to the introduction of control variables and different inequality measures. The analysis also shows that the discontent at the base of the Trump margin is not just a consequence of the 2008 crisis but had been brewing for a long time. Places in the US that remained cohesive but witnessed an enduring decline are no longer bowling alone, they are golfing with Trump.
    Keywords: Populism, social capital, inequality, economic and demographic decline, Donald Trump, counties, US
    JEL: D31 D72 O15 R11
    Date: 2020–09
  4. By: Fernando Rios-Avila (Levy Economics Institute, Bard College, Annandale-On-Hudson, NY)
    Abstract: margins is a powerful post-estimation command that allows the estimation of marginal effects for official and community-contributed commands, with well-defined predicted outcomes (see predict). While the use of factor variable notation allows us to easily estimate marginal effects when interactions and polynomials are used, estimation of marginal effects when other types of transformations such as splines, logs, or fractional polynomials, among others, are used remains a challenge. This paper describes how margins capabilities can be extended to analyze other variable transformations using the command f_able.
    Date: 2020–09–11
  5. By: Anna Korzenszky (IPC-IG); Sara Vicari (IPC-IG); Guilherme Brady (IPC-IG)
    Abstract: "'The Sustainable Development Goals Report 2018' has shown how in a number of areas progress has been insufficient to meet the Agenda's goals and targets by 2030. This is especially true for the most disadvantaged and marginalised groups (United Nations 2018). After years of decline, global hunger is on the rise, driven by conflicts and climate change (FAO et al. 2018). Poverty still has a rural face, with 79 per cent of the worlds poorest people living in rural areas (World Bank 2018) and depending on agriculture for their well-being (FAO 2017a)". (...)
    Keywords: Rural, civil, society, role, social, mobilisation, poverty, reduction, sustainable, rural, evelopment
    Date: 2019–09
  6. By: John Weeks (IPC-IG)

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