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on Post Keynesian Economics |
| By: | Gustavo Pereira Serra (Department of Economics, New School for Social Research) |
| Abstract: | This paper addresses the contribution of human capital accumulation to solving the First Harrod Problem, which relates to the di erence between demand-led and natural growth rates in the long run. To some extent, this paper also relates to the literature on labor-saving technical change represented as a costly process. Moreover, I show how a model that considers human capital accumulation can address overeducation and technical change. I argue that human capital formation and technological progress are complementary in economic growth: the former ensures the stability of the employment rate on the balanced growth path, whereas the latter determines its level. |
| Keywords: | Human Capital, Post-Keynesian Economics, First Harrod Problem, Harrodian Instability, Aggregate Productivity |
| JEL: | E11 E12 E24 O40 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:new:wpaper:2113&r= |
| By: | Gustavo Pereira Serra (Department of Economics, New School for Social Research) |
| Abstract: | This paper aims to analyze the sustainability of student debt in the US. For this purpose, I build a neo-Kaleckian model in which households can borrow to either consume or invest in human capital. Next, I calibrate the model using US data to simulate the economic effects of specific policies such as student loan forgiveness. To my knowledge, this is the first study that considers household borrowing for two di erent purposes, consumption and human capital accumulation, in a demand-led macro-modeling framework. The main findings are that i) household debt is sustainable in the long run (i.e., the debt servicing is compatible with the long-term economic growth) for a consumption level greater than 90% of household income; ii) new borrowing boosts short-term economic activity while having ambiguous long-term e ects because of its outcomes to household indebtedness and debt servicing; and iii) student loan cancellation has only short-run economic e ects, whereas reducing loan interest rates and changing the eligibility criterion for student loan forgiveness result in long-term effects. |
| Keywords: | Household debt, student loans, capacity utilization, human capital |
| JEL: | E12 E22 E24 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:new:wpaper:2112&r= |
| By: | Giovanni Dosi (LEM - Laboratory of Economics and Management - SSSUP - Scuola Universitaria Superiore Sant'Anna [Pisa]); Francesco Lamperti (UP1 - Université Paris 1 Panthéon-Sorbonne); Mariana Mazzucato; Mauro Napoletano (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po); Andrea Roventini |
| Abstract: | We study the impact of alternative innovation policies on the short- and long-run performance of the economy, as well as on public finances, extending the Schumpeter meeting Keynes agent-based model (Dosi et al., 2010). In particular, we consider market-based innovation policies such as R&D subsidies to firms, tax discount on investment, and direct policies akin to the "Entrepreneurial State" (Mazzucato, 2013), involving the creation of public research oriented firms diffusing technologies along specific trajectories, and funding a Public Research Lab conducting basic research to achieve radical innovations that enlarge the technological opportunities of the economy. Simu- lation results show that all policies improve productivity and GDP growth, but the best outcomes are achieved by active discretionary State policies, which are also able to crowd-in private investment and have positive hysteresis effects on growth dynamics. For the same size of public resources allocated to market-based interventions, "Mission" innovation policies deliver significantly better aggregate performance if the government is patient enough and willing to bear the intrinsic risks related to innovative activities. |
| Keywords: | Innovation policy,mission-oriented R&D,entrepreneurial state,agent-based modelling |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03300295&r= |
| By: | Michael D. Bordo; Catherine R. Schenk |
| Abstract: | In 1919, John Maynard Keynes wrote his famous tract The Economic Consequences of the Peace. In that work, he anticipated the collapse of the first era of globalization that began in the mid-nineteenth century. He admonished the short-sighted assumption that these years of relative peace and prosperity for many was a permanent norm, interrupted only briefly by the Great War. The diplomatic failures, lapses in leadership, and promotion of narrow interests and vision outlined by Keynes underpinned his prediction of a backslash of economic nationalism, trade protectionism, and recession. The paper revisits the turning points in the evolution of the global economic system since 1919 by focusing primarily on the evolution of the international monetary system and policy cooperation/coordination. We identify three disruptions and examine how each prompted a change in the underlying ideology about how the international monetary system should organize: World War I, Bretton Woods, 1970s Great Inflation and Managed Floating. Each turning point was characterized by different forms and institutions of cooperation, how rules (either explicit or implicit) were designed and implemented, and the crucial importance of the historical context. |
| JEL: | F02 F33 N10 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29114&r= |
| By: | Julia M. Puaschunder (The New School, Department of Economics, USA) |
| Abstract: | This article proposed three innovative and heterodox ways to aid understanding and unleashing a sustainable economy in Three Essays on Environmental Justice: First, behavioral insights are presented about real-world relevant, easily-implementable nudges to steer human into future-oriented discounting. Second, macroeconomic modelling highlights countries’ different economic prospects on a warming globe in order to find a redistribution of benefits and burdens of climate change to share the gains and losses of a warming globe equally within society, between countries and over time. Third, a creative financialization strategy is introduced in bonds that help weight the burden of climate change more equally between today’s and tomorrow’s society. |
| Keywords: | Climate Bonds, Climate Change, Economics of the Environment, Ecotax, Environmental Justice, Environmental Governance, Fiscal Policy, Green New Deal, Monetary Policy, Multiplier, Sustainability, Teaching |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:smo:scmowp:01233&r= |
| By: | García, Jorge Luis (Clemson University); Heckman, James J. (University of Chicago); Ronda, Victor (Aarhus University) |
| Abstract: | This paper demonstrates multiple beneficial impacts of a program promoting inter-generational 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: | early childhood education, intergenerational mobility, racial inequality, social mobility |
| JEL: | J13 I28 C93 H43 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14575&r= |