nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2022‒04‒18
six papers chosen by
Karl Petrick
Western New England University

  1. Effects of interest rates on functional income distribution, capacity utilization, capital accumulation and profit rates in France: A post-Kaleckian econometric analysis By Kurt, Ozan Ekin
  2. Why Was Keynes Opposed to Reparations and Carthaginian Peace?‎ By Elise S. Brezis
  3. Economic Inequality meets Social Stratification: An Application of Stratification Economics to Mexico By Paloma Villagómez-Ornelas; Luis Monroy-Gómez-Franco
  4. Thinking as an Engelsian By Royle, Camilla
  5. Autonomous Demand and Technical Change: Exploring the Kaldor-Verdoorn Law on a Global Level By Matteo Deleidi; Claudia Fontanari; Santiago J. Gahn
  6. Perspectives on the economics and sociology of health. Contributions from the institutionalist approach of economics of convention -an introduction By Philippe Batifoulier; Rainer Diaz-Bone

  1. By: Kurt, Ozan Ekin
    Abstract: The aim of this empirical study is to examine the effects of interest rates on rates of capacity utilization, accumulation and profit in France within the framework of a post-Kaleckian monetary model. The model adopted in the analysis was developed by Hein & Schoder (2011) and is based on endogenous money supply and exogenous interest. The real long-term interest rate shapes the functional distribution of income and, at a given debt-capital ratio, it both directly and indirectly influences the equilibrium rates of capacity utilization, accumulation and profit. We estimated the model using SUR (Seemingly Unrelated Equations) method for the period 1993-2019. Our findings indicate that an increase in the real long-term interest rate has a negative impact on the equilibrium rates of capacity utilization, capital accumulation and profit rates in the French economy. This result implies that this economy is characterized by a “normal regime”, which is in line with the findings of previous research on the US and Germany. Different econometric specifications of the model equations enforce the robustness of our findings that point that an increase in the real long-term interest rate has a considerable negative effect on the equilibrium rate of capacity utilization, while the effects on capital accumulation and profit are relatively low but still negative.
    Keywords: interest rates,monetary policy,functional income distribution,capacity utilization,capital accumulation,profit rates,post-Keynesian economics
    JEL: E12 E21 E22 E25 E43
    Date: 2022
  2. By: Elise S. Brezis (Bar-Ilan University)
    Abstract: The Economic Consequences of the Peace was first published in 1919, and since then, changed the economic discourse surrounding reparations and Carthaginian peace. This paper specifies how three elements hinted at in the introduction of the Economic Consequences of the Peace – social classes, national sovereignty, and the international political system – can explain Keynes’ assessment of Carthaginian peace. The paper analyzes the optimality of reparations in the context of these three elements. I show that in the situation of a hegemonic country, all classes - the working class as well as the elite - opt for no reparations. But, in a balance of power context, wherein no single actor on the international scene possesses hegemonic status, the working class will choose harsh reparations, while the transnational elite and Keynes will not.
    Keywords: Balance of Power, Carthaginian Peace, Hegemony, Reparations, National Sovereignty.
    JEL: B17 B27 E12 F30
    Date: 2022–03
  3. By: Paloma Villagómez-Ornelas; Luis Monroy-Gómez-Franco
    Abstract: This paper argues that explaining both the level and the changes in the inequality of the distribution of economic resources in society requires complementing explanations based on human capital theory with insights from social stratification theory. The integration of both allows explaining horizontal inequalities and explaining the aggregate levels of economic inequality in a society. We exemplify the potential of this integration through a reinterpretation of the literature on economic inequalities in Mexico during the XXIst century. This reinterpretation focuses on how institutions stratify the access to the different components of human capital and how said components are valued in the labour market. We argue that a complete understanding of distributional dynamics in societies with persistent inequalities can be achieved through this interdisciplinary exercise.
    Date: 2021
  4. By: Royle, Camilla
    Abstract: In this essay, I address the question of how Marxism influences our thought and action as radical intellectuals by focusing on Friedrich Engels’ work, Dialectics of Nature, the way it has been taken up in critical environmental studies and how Engels’ thinking has influenced me. In later life, Engels made important contributions on topics that are distinct from Marx's economic work. He attempted to apply dialectical methods to the “natural sciences” and he also used his knowledge of anthropology to produce a study of the historical origins of private property and women's oppression. In both cases he has been accused of adopting a positivist approach that lacks the emphasis on human agency found in Marx. Here, I challenge this view by showing how Engels’ work has been of use to practicing scientists – particularly to Richard Levins and Richard Lewontin in their book The Dialectical Biologist. I further argue that this understanding of dialectics is fully commensurable and actually advances an approach to Marxism that is based on human self-emancipation. As an undergraduate biology student these scientists inspired me with their approach to their subject as well as their activism. The essay concludes with some brief thoughts on the importance and limitations of adopting a Marxist method when considering socio-environmental change.
    Keywords: biology; dialectics; environment; friedrich Engels; Karl Marx
    JEL: B14 B24 P2 P3
    Date: 2021–11–03
  5. By: Matteo Deleidi; Claudia Fontanari; Santiago J. Gahn
    Abstract: This paper aims to explain labour productivity through the lens of a Kaldorian perspective. To assess the relationship between output, demand, capital accumulation, and labour productivity, we apply Panel Structural Vector Autoregressive (P-SVAR) modelling to a dataset of 52 countries observed over a long-time span as provided by the Penn World Table. Findings validate the Kaldorian perspective and show that demand shocks – measured by government expenditures and exports – produce positive and persistent effects on labour productivity. Findings are confirmed even when the full sample is broken down to consider developed and developing countries separately.
    Keywords: Labour productivity; Autonomous demand; Panel SVAR; Penn World Table, Kaldor-Verdoorn
    JEL: C33 E12 E24 O33 O47
    Date: 2022–04
  6. By: Philippe Batifoulier (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique); Rainer Diaz-Bone (University of Lucerne)
    Abstract: The article introduces the approach of economics and sociology of conventions (in short EC) as a neopragmatist institutionalism in the field of economics and sociology of health. For EC, conventions are regarded as institutional logics of valuation, valorization and coordination, and EC emphasizes the empirical plurality of orders of worth and values, actors rely on and institutions are built on. Especially health, health care and its institutions are closely linked to value issues and norms. Because of the pluralism of possible value systems and orders of worth, tensions and critiques are an important empirical phenomenon to be addressed in the health care system. The contribution sketches main positions and perspectives of EC in the analysis of values, medical professions and ethics, of datafication, quantification and classification (related to health and health care institutions), of social inequalities, as well as in the analysis of health policies and health capitalism. Also, the COVID-19 pandemic and its consequences are discussed from the standpoint of EC, finally social trends and perspectives in times of the pandemic are outlined.
    Abstract: Cet article est l'introduction du numéro spécial de la revue Historical Social Research (46, 2021) consacré aux apports du courant de l'Economie des conventions dans le domaine de la santé. L'article présente l'approche de l'économie et de la sociologie des conventions (en abrégé EC) comme un institutionnalisme néopragmatiste dans le domaine de l'économie et de la sociologie de la santé. Pour l'EC, les conventions sont considérées comme des logiques institutionnelles d'évaluation, de valorisation et de coordination et l'EC met l'accent sur la pluralité empirique des ordres de valeur sur lesquels les acteurs s'appuient et sur lesquels les institutions sont construites. En particulier, les soins de santé et leurs institutions sont étroitement liés aux questions de valeurs et aux normes. En raison du pluralisme des systèmes de valeurs et des ordres de valeur possibles, les tensions et les critiques sont un phénomène empirique important à prendre en compte dans le système de soins de santé. La contribution esquisse les principales positions et perspectives de l'EC dans l'analyse des valeurs, des professions médicales et de l'éthique, de la quantification et de la classification des données, des inégalités sociales, ainsi que dans l'analyse des politiques de santé et du capitalisme sanitaire. De plus, la pandémie COVID-19 et ses conséquences sont discutées du point de vue de l'EC.
    Keywords: Economis of convention,sociology of conventions,valorization,health economics,COVID-19 pandemic,quantification,social inequality,neopragmatism,health capitalism
    Date: 2022–02–22

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