nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2022‒05‒23
seven papers chosen by
Karl Petrick
Western New England University

  1. Does the Labour Theory of Value Explain Economic Growth? A Modern Classical View By Chatzarakis, Nikolaos; Tsaliki, Persefoni; Tsoulfidis, Lefteris
  2. Marx, Schumpeter et les classes sociales By Fabien Dannequin; Fabien Tarrit
  3. The Authors of Economics Journals Revisited: Evidence from a Large-Scale Replication of Hodgson and Rothman (1999) By Matthias Aistleitner; Jakob Kapeller; Dominik Kronberger
  4. All economies are ultimately human economies By Graeber, David
  5. Deliberating inequality: a blueprint for studying the social formation of beliefs about economic inequality By Summers, Kate; Accominotti, Fabien; Burchardt, Tania; Hecht, Katharina; Mann, Liz; Mijs, Jonathan J.B
  6. Educational Inequality By Blanden, Jo; Doepke, Matthias; Stuhler, Jan
  7. "Institutional Design for social common capitals" By Hitoshi Matsushima

  1. By: Chatzarakis, Nikolaos; Tsaliki, Persefoni; Tsoulfidis, Lefteris
    Abstract: The labour theory of value (LTV) is the cornerstone of the classical and Marxian political economy for it explains the creation and valuation of wealth in capitalist societies and it remains the chief analytical tool in investigating economic phenomena. In this respect macroscopic phenomena, which include many distinct production processes evolving over long gestation periods, conceal the transformation of labour values into their monetary expression (prices). Consequently, the use of the LTV on a grand and dynamic scale is usually considered inapplicable in the construction of macroeconomic models. The classical/Marxian analysis is conducted through either multi-dimensional multi-sectoral models or the solution of the summation problem of heterogeneous commodities. However, many studies have corroborated the dynamic aspects of the LTV and probed for a reduction in the dimensionality of macroeconomic models. In this paper, on the one hand, we restate the dynamic aspects of the LTV over time and, on the other hand, ascertain its utility as a long-run macroeconomic tool. The way to proceed is to model the divergence of actual prices and quantities of commodities from their equilibria in a multi-sectoral economy and establish that the long-run behaviour of the system mirrors the long-run movement of the labour values.
    Keywords: labour theory of value; heterodox microeconomics; micro-founding of economic growth; dynamic input-output analysis
    JEL: B51 C61 D46 D57 E32
    Date: 2022–04–21
  2. By: Fabien Dannequin (REGARDS - Recherches en Économie Gestion AgroRessources Durabilité Santé- EA 6292 - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne); Fabien Tarrit (REGARDS - Recherches en Économie Gestion AgroRessources Durabilité Santé- EA 6292 - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne)
    Abstract: This paper proposes a cross-analysis the contributions of Karl Marx and of Joseph Alois Schumpeter on social classes. It discusses their discrepancies on two issues, the former helping to elaborate on the latter. Both authors admit the existence of social classes on the basis of hierarchy and of discipline. For Marx, they rely on the conflict, which can bring changes that aim to abolish the class hierarchy. As such, it needs an consciousness for facilitating the shift from an objective class in itself to a subjective class for itself. For Schumpeter, a significant degree of discipline is a condition to ensure the progress related to capitalism. Therefore, while Marx conceives capitalism as a transitional mode of social organization, which sows the seeds of its own disequilibrium and demise, Schumpeter regrets the planned end of capitalism, with the decline of innovation and then of progress, through bureaucratization.
    Abstract: Cet article présente une analyse croisée des contributions de Karl Marx et de Joseph Alois Schumpeter sur la question des classes sociales. Les divergences que nous soulevons portent sur deux questions, la première nourrissant la seconde. Les deux auteurs reconnaissent tous deux l'existence de classes sociales fondées sur la hiérarchie et la discipline. Marx les conçoit sous l'angle du conflit porteur d'un changement visant à abolir la hiérarchie de classe, et de la sorte l'inscrit dans la nécessité d'une prise de conscience facilitant le passage d'une classe en soi objective à une classe pour soi subjective. De son côté, Schumpeter préconise un degré significatif de discipline propre à assurer le progrès dont est porteur le capitalisme. Ainsi, alors que Marx conçoit le capitalisme comme un mode transitoire d'organisation sociale qui porte les germes de son déséquilibre et de sa disparition, c'est sous l'angle du déclin, via sa bureaucratisation, de l'innovation et donc du progrès, que Schumpeter déplore la fin programmée du capitalisme.
    Keywords: Marx Karl,Schumpeter,Classes sociales
    Date: 2022–03–23
  3. By: Matthias Aistleitner (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria); Jakob Kapeller (Institute for Socio-Economics, University of Duisburg-Essen, Germany; Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria); Dominik Kronberger (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria)
    Abstract: In this paper, we present results from of a large-scale replication of Hodgson and Rothman's (1999) seminal analysis of the institutional and geographical concentration of authors publishing in top economic journals. We analyze bibliometric data of more than 49.000 articles published in a set of 30 highly influential economic journals between 1990 and 2018. Based on a random sample of 3.253 authors, we further analyze the PhD-granting institutions of the authors under study to better scrutinize the claim of an institutional oligopoly. The findings confirm the long-term persistence of strong oligopolistic structures in terms of both, author affiliations as well as PhD-granting institutions.
    Keywords: sociology of economics, bibliometrics, concentration in science, replication study
    Date: 2022–05
  4. By: Graeber, David
    Keywords: Rojava; Marx; capitalism; communism; baseline communism
    JEL: N0
    Date: 2021–03–21
  5. By: Summers, Kate; Accominotti, Fabien; Burchardt, Tania; Hecht, Katharina; Mann, Liz; Mijs, Jonathan J.B
    Abstract: In most contemporary societies, people underestimate the extent of economic inequality, resulting in lower support for taxation and redistribution than might be expressed by better informed citizens. We still know little, however, about how understandings of inequality arise, and therefore about where perceptions and misperceptions of it might come from. This methodological article takes one step toward filling this gap by developing a research design—a blueprint—to study how people’s understandings of wealth and income inequality develop through social interaction. Our approach combines insights from recent scholarship highlighting the socially situated character of inequality beliefs with those of survey experimental work testing how information about inequality changes people’s understandings of it. Specifically, we propose to use deliberative focus groups to approximate the interactional contexts in which individuals process information and form beliefs in social life. Leveraging an experimental methodology, our design then varies the social makeup of deliberative groups, as well as the information about inequality we share with participants, to explore how different types of social environments and information shape people’s understandings of economic inequality. This should let us test, in particular, whether the low socioeconomic diversity of people’s discussion and interaction networks relates to their tendency to underestimate inequality, and whether beliefs about opportunity explain people’s lack of appetite for redistributive policies. In this exploratory article we motivate our methodological apparatus and describe its key features, before reflecting on the findings from a proof-of-concept study conducted in London in the fall of 2019.
    Keywords: economic inequality; perceptions; public opinion; deliberative focus groups; experimental methods; Springer deal
    JEL: N0
    Date: 2022–04–01
  6. By: Blanden, Jo (University of Surrey); Doepke, Matthias (Northwestern University); Stuhler, Jan (Universidad Carlos III de Madrid)
    Abstract: This chapter provides new evidence on educational inequality and reviews the literature on the causes and consequences of unequal education. We document large achievement gaps between children from different socio-economic backgrounds, show how patterns of educational inequality vary across countries, time, and generations, and establish a link between educational inequality and social mobility. We interpret this evidence from the perspective of economic models of skill acquisition and investment in human capital. The models account for different channels underlying unequal education and highlight how endogenous responses in parents' and children's educational investments generate a close link between economic inequality and educational inequality. Given concerns over the extended school closures during the Covid-19 pandemic, we also summarize early evidence on the impact of the pandemic on children's education and on possible long-run repercussions for educational inequality.
    Keywords: educational inequality, education finance, social mobility
    JEL: I21 I24 J62
    Date: 2022–04
  7. By: Hitoshi Matsushima (Faculty of Economics, The University of Tokyo)
    Abstract: The world is interested in comprehensively considering what a good life is from multiple perspectives such as the environment, society, and economy. The well-being of individuals and society should not be evaluated solely by the distribution of commodities whose value is shown in the market. The world is rather sympathetic to the view that they should be evaluated by ways of maintenance of natural capital, social infrastructure, institutional capital, or generally "social common capital" (Uzawa, 1995, 2000; Uzawa, 2003, 2005), which are typically difficult to value in the market. For example, at the 2015 Summit, the United Nations adopted the 2030 Agenda for Sustainable Development to resolve global warming, equal society, free participation, and a sustainable economy. As an action plan for consistently achieving such developments, the "Sustainable Development Goals (SDGs)" consisting of 17 goals and 169 targets were presented (United Nations, 2015a). The SDGs aim to encourage citizens around the world to change their consciousness and take concrete actions on social common capital in order to realize a good life. An important part of the essence of social common capital is the so-called "commons", in which users cannot or should not be excluded (nonexcludability), but if the use limit is simply neglected, it will eventually be devastated and exhausted (competitiveness). (Bentham, 1789; Malthus, 1798; Mill, 1859; Hardin, 1968; Ostrom, 1990, 2010). Many modern issues that impede good living, such as the global environment, poverty, inequality, conflict, human rights issues, pandemics, and the abolition of nuclear weapons, can be seen as examples of common issues. In order to deal with the commons, we must change the way citizens' values and institutional systems are in the current capitalist society. This volume regards the realization of good living as a problem of social common capital, and presents a concrete institutional design for solving it. Furthermore, this volume presents "new capitalism" and "new socialism" as social systems required to solve the problems of the commons, and what role the two systems play in problem solving. In particular, new socialism is newly presented in this volume, which is more essential for the solution of the Commons problem. New socialism is defined as a decentralized mechanism that replaces the market, rather than centralized control and planning by the state. Its major feature is based on the famous slogan "work according to ability and receive according to need" (Marx, 1890/1971), which is used to be the future image of utopia, moral law, or communist society, but here not as a utopia but as a practical "incentive scheme" that is indispensable for a desirable decentralized mechanism. This volume considers the issue of climate change (warming) as an application and further deepens the understanding of the commons.

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