nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2021‒07‒26
eight papers chosen by
Karl Petrick
Western New England University

  1. A Contextualist Approach to Health Economics By Davis, John D.; McMaster, Robert
  2. "Multifactor Keynesian Models of the Long-Term Interest Rate" By Tanweer Akram
  3. "The Endogeneity-to-Demand of the National Emergency Utilization Rate" By Michalis Nikiforos
  4. Laws of Concentration and Centralization of Capital: A Modern Review By Dutta, Sourish
  5. "Ecological Fiscal Transfers and State-level Budgetary Spending in India: Analyzing the Flypaper Effects" By Amandeep Kaur; Ranjan Kumar Mohanty; Lekha S. Chakraborty; Divy Rangan
  6. The Lasting Effects of Early Childhood Education on Promoting the Skills and Social Mobility of Disadvantaged African Americans By Jorge Luis Garcia; James J. Heckman; Victor Ronda
  7. The Post-COVID Economy: Pathways for Rebuilding a More Equitable and Inclusive Workplace By Gerald Chertavian
  8. The Workforce Development Field or a Conduit for Maintaining Systemic Racism? By Claire Minson

  1. By: Davis, John D. (Department of Economics Marquette University); McMaster, Robert (University of Glasgow)
    Abstract: This paper departs from the standard abstract economics approach to health economics to develop a specifically contextualist approach to the subject emphasizing social and historical circumstances affecting health provision. Following Polanyi, it sees the economy as socially embedded and economic relationships as social relationships. The paper critically examines Grossman’s natural science utility maximization explanation of people’s demand for health and health care, and advances an alternative social science account using a two-way analysis between micro level social relationships and the macro level organization of health in society. Three significant trends affecting the future of health systems are discussed. The paper closes with comments on the influence of psychology in the form of behavioral economics on the future development of a contextualist approach to health economics.
    Keywords: contextualism, Polanyi, social embeddedness, Grossman, health systems, behavioral economics
    JEL: I12 A12 A13
    Date: 2021–07
  2. By: Tanweer Akram
    Abstract: This paper presents multifactor Keynesian models of the long-term interest rate. In recent years there have been a proliferation of empirical studies based on the Keynesian approach to interest rate modeling. However, standard multifactor models of the long-term interest rate in quantitative finance have not been yet incorporated Keynes's insights about interest rate dynamics. Keynes's insights about the influence of the current short-term interest rate are introduced in two different multifactor models of the long-term interest rate to illustrate how the long-term interest rate relates to the short-term interest rate, the central bank’s policy rate, inflation expectations, the central bank’s inflation target, volatility in financial markets, and Wiener processes.
    Keywords: Long-Term Interest Rate; Government Bond Yields; Monetary Policy; Short-Term Interest Rate; Inflation; Inflation Target; John Maynard Keynes
    JEL: E12 E43 E50 E58 E60 G10 G12 G41
    Date: 2021–07
  3. By: Michalis Nikiforos
    Abstract: The paper provides an empirical discussion of the national emergency utilization rate (NEUR), which is based on a "national emergency" definition of potential output and is published by the US Census Bureau. Over the peak-to-peak period 1989-2019, the NEUR decreased by 14.2 percent. The paper examines the trajectory of potential determinants of capacity utilization over the same period as specified in the related theory, namely: capital intensity, relative prices of labor and capital, shift differentials, rhythmic variations in demand, industry concentration, and aggregate demand. It shows that most of them have moved in a direction that would lead to an increase in utilization. The main factor that can explain the decrease in the NEUR is aggregate demand, while the increase in industry concentration might have also played a small role.
    Keywords: Accumulation; Growth; Distribution; Utilization
    JEL: B22 O4 D3 D2
    Date: 2021–06
  4. By: Dutta, Sourish
    Abstract: Though the basic (the late 1860s) Marxian model, under the capitalist mode of production, assumes perfect competitive or contestable ambience within the market by means of a large number of trivial firms in each industry, Marx was cognizant of the growing size of firms, the subsequent dwindling of competition, and the evolution of monopolistic or anti-competitive power. Hence, the capital has the inclination for concentration and centralization in the hands of the richest and big capitalists. Actually, the concentration and centralization of capital are two capital accumulation (or self-expansion of capital) techniques. Such concentration and centralization of capital can be clearly detected at this modern time, especially in the USA, in the enormous occurrences of mergers, acquisitions and conglomerates. In this assignment, henceforth, I will be trying to cultivate an analytical discussion about these two interlinked concepts and their implications and repercussions in this modern world of capitalism.
    Date: 2021–06–26
  5. By: Amandeep Kaur; Ranjan Kumar Mohanty; Lekha S. Chakraborty; Divy Rangan
    Abstract: Using panel data models, we analyze the flypaper effects--whether intergovernmental fiscal transfers or states' own income determine expenditure commitments--on ecological fiscal spending in India. The econometric results show that the unconditional fiscal transfers, rather than the states' own income, determine ecological expenditure in the forestry sector at subnational levels in India. The results hold when the models are controlled for ecological outcomes and demographic variables.
    Keywords: Intergovernmental Transfers; Flypaper Effect; Public Expenditures; Forestry Sector
    JEL: E6 H5 H7 Q5
    Date: 2021–07
  6. By: Jorge Luis Garcia (Clemson University); James J. Heckman (The University of Chicago); Victor Ronda (Aarhus University)
    Abstract: This paper demonstrates multiple beneficial impacts of a program promoting intergenerational mobility for disadvantaged African-American children and their children. The program improves outcomes of the first-generation treatment group across the life cycle, which translates into better family environments for the second generation leading to positive intergenerational gains. There are long-lasting beneficial program effects on cognition through age 54, contradicting claims of fadeout that have dominated popular discussions of early childhood programs. Children of the first-generation treatment group have higher levels of education and employment, lower levels of criminal activity, and better health than children of the first-generation control group.
    Keywords: intergenerational mobility, racial inequality, social mobility
    JEL: J13 I28 C93 H43
    Date: 2021–07
  7. By: Gerald Chertavian
    Abstract: The COVID-19 pandemic is the greatest public health emergency in our nation’s history, and the resulting economic recession has led to millions of people being unemployed and hundreds of thousands losing their lives. Both these challenges have disproportionally affected those people who were already vulnerable—low-income workers, especially those without equal access to economic opportunity due to their race, gender, education level, or ZIP code. This crisis has demonstrated just how imperative it is that workforce development reshapes the pathways to opportunity in this country.
    Date: 2021–05–24
  8. By: Claire Minson
    Abstract: Not many people can say they deliberately chose the field of workforce development as a career path. Yet many amazing and formidable people have contributed to the growth and development of this field, despite its original focus: supporting white, dislocated workers.
    Date: 2021–02–19

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