nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2022‒06‒27
thirteen papers chosen by
Karl Petrick
Western New England University

  1. Advances in Behavioral Economics and Finance Leadership By Julia M. Puaschunder
  2. Discovering the true Schumpeter: New insights into the finance and growth nexus By Bofinger, Peter; Geißendörfer, Lisa; Haas, Thomas; Mayer, Fabian
  3. American postdoctoral salaries do not account for growing disparities in cost of living By Tim Sainburg
  4. What can Economists Learn from Public Perspectives on the Economy and Economic Statistics? By Johnny Runge; Anna Killick
  5. The measure of monopsony By Monica Langella; Alan Manning
  6. Growing Differently: A Structural Classification for European NUTS-3 Regions By Jan Weber, Jan Schulz
  7. Sustainable Lifestyle Revolution: Agrohoods, Ecowellness and Biophilia Trends By Julia M. Puaschunder
  8. Searching for a new global development trajectory after COVID-19 By Chatzinikolaou, Dimos; Vlados, Charis
  9. Una reconstrucción del debate marxista sobre la fuente del plusvalor extra que apropian los capitales innovadores By Gastón Caligaris
  10. Does COVID-19 represent a 'new Beveridge' moment, a crisis that will wash away, or a call to action? By Tania Burchardt
  11. Recent Contributions to Theories of Discrimination By Paula Onuchic
  12. Climate Stabilization Taxation-and-Bonds Strategy Adjusted for Consumption By Julia M. Puaschunder
  13. Legal frameworks for the social and solidarity economy: OECD Global Action “Promoting Social and Solidarity Economy Ecosystems” By OECD

  1. By: Julia M. Puaschunder (The New School, New York, USA)
    Abstract: Advances in Behavioral Economics and Finance Leadership are likely to show these three speculative trends and focus attention on: Ethics of Inclusion in the wake of social justice pledges will demand a comparative approach to understand the most contemporary responsibility challenges of our time. With the COVID-19 pandemic having exacerbated existing inequalities and rising new gaps within society, inequality alleviation will become essential in the post-COVID-19 era in the domains of access to affordable healthcare, finance, education, digitalization and sharing the burden to protect the environment. Law and Economics developments may aid in envisioning a transition to a more inclusive society. While the legal analysis grants insights about the disparate impact of policies, the economic analysis allows to study efficiency of burden sharing over time and with consideration of externalities. Digitalization offers unprecedented human advancement and democratization potential free from corruption. At the same time, shifting marketplaces to online virtual spaces opens gates for misinformation and disinformation being used in a competitive sense. Ethics of inclusion, Law and Economics advocacy and interdisciplinary dialogue building but also human-artificial intelligence algorithm compatibility are expected to become key advancements in behavioral economics and finance leadership of the future.
    Keywords: Artificial Intelligence, AI, Behavioral Economics, Coronavirus, COVID-19, Digitalization, Education, Environment, Finance, Finance Leadership,
    Date: 2021–12
  2. By: Bofinger, Peter; Geißendörfer, Lisa; Haas, Thomas; Mayer, Fabian
    Abstract: Joseph A. Schumpeter is one of the most famous economists of the 20th century and the 'patron saint' of the finance and growth literature. We have discovered that the prevailing literature has, however, misinterpreted Schumpeter, which leads to puzzling empirical results and difficulties in explaining even fundamental relationships. We argue that this is due to a misrepresentation of the role of banks and liquidity creation and the role of household saving. After a critical discussion of the literature, we provide our own empirical analysis using a panel of 43 countries to explore the relationships between the important variables of the finance and growth literature. Our empirical analysis above all supports Schumpeter's view that credit growth supports GDP growth while saving is irrelevant for credit growth and GDP growth. In sum, a correct interpretation of Schumpeter helps to overcome the theoretical and empirical challenges which confront the prevailing literature.
    Keywords: Finance-growth nexus,Finance,Financial development,Economic growth,Economic development,Financial intermediation,Bank credit,Liquidity creation,Saving
    JEL: B20 B22 C10 E44 F30 F43 G21 O11 O16 O4
    Date: 2022
  3. By: Tim Sainburg
    Abstract: The National Institute of Health (NIH) sets postdoctoral (postdoc) trainee stipend levels that many American institutions and investigators use as a basis for postdoc salaries. Although salary standards are held constant across universities, the cost of living in those universities' cities and towns vary widely. Across non-postdoc jobs, more expensive cities pay workers higher wages that scale with an increased cost of living. This work investigates the extent to which postdoc wages account for cost-of-living differences. More than 27,000 postdoc salaries across all US universities are analyzed alongside measures of regional differences in cost of living. We find that postdoc salaries do not account for cost-of-living differences, in contrast with the broader labor market in the same cities and towns. Despite a modest increase in income in high cost of living areas, real (cost of living adjusted) postdoc salaries differ by 29% ($15k 2021 USD) between the least and most expensive areas. Cities that produce greater numbers of tenure-track faculty relative to students such as Boston, New York, and San Francisco are among the most impacted by this pay disparity. The postdoc pay gap is growing and is well-positioned to incur a greater financial burden on economically disadvantaged groups and contribute to faculty hiring disparities in women and racial minorities.
    Date: 2022–05
  4. By: Johnny Runge; Anna Killick
    Abstract: This study involved 15 online workshops that brought 15 economists from a range of institutions together with 55 members of the public in conversations about economic concepts and statistics. The aim was to bring economists closer to public perspectives on the economy and encourage them to reflect on what they learned and how these insights could improve how they communicated with the public in the future. The report's main finding is that the economists involved believed the workshop format fulfilled that aim. They advocated for more similar or extended exercises to reach a wider group of economists. They argued that all economists and economic organisations should take collective responsibility for bringing economists and the public closer together. In addition, there needs to be a debate about what level of economic knowledge would enable members of the public to fulfil their citizenship roles. More specific findings included economists' reflections that public perceptions in the workshops in many cases confounded their expectations and that people simply view the economy from a different, personal perspective relying on their own experiences. The economists considered developing communication strategies that were simpler and more relatable, emphasising context and narrative instead of figures. Finally, the economists argued it would be a challenge to implement improvements in public understanding and communication in practice, due to the complex way their communication filters through the media as intermediaries, pointing to the need for further studies on the relationship between economists and journalists
    Keywords: communication, economic statistics, public engagement, public understanding
    JEL: D83 Z00
    Date: 2021–12
  5. By: Monica Langella; Alan Manning
    Abstract: There has been increasing interest in recent years in monopsony in labour market. This paper discusses how we can measure monopsony power combining insights from models based on both frictions and idiosyncrasies. It presents some evidence from the UK and the US about how monopsony power varies across the wage distribution within markets, over the business cycle and over time.
    Keywords: monopsony, labour market competition
    Date: 2021–06–30
  6. By: Jan Weber, Jan Schulz
    Abstract: We document two novel stylized facts on European integration and cohesion. First, we show that the interregional income distribution, measured as GDP per capita at the NUTS-3 level, is bimodal for all considered years. Second, we demonstrate that this mixture of two log-normal distributions provides an excellent fit for this interregional distribution in all considered years. We put forward two meso-level interpretations of these stylized facts, based on heterodox growth theory: The log-normality of the individual clusters hints at a stochastically multiplicative process, where growth is strongly path-dependent. This can be derived from maximum entropy considerations. However, the bimodality in the income distributions also implies two separate growth mechanisms. We show that the high-variance log-normal distribution governs the dynamics at both tails of the income distribution, which might be interpreted as the core and periphery and the low-variance variant the bulk of the distribution, thus interpretable as a semi-periphery.
    Keywords: Inequality; Europe; Maximum Entropy; Geometric Brownian Motion; Core; Periphery; Resilience JEL Classification: C46, D63, F15, F43, C14, C63
    Date: 2022
  7. By: Julia M. Puaschunder (The New School, New York, USA)
    Abstract: The novel coronavirus SARS-CoV-2 is an external shock to all world societies with lasting impact. With millions of infected already and no foreseeable end as well as an estimated 10-50% of those previously infected with COVID-19 to face a longer-term or long-term health impact and/or chronic debilitation, the broad-based and long-term impact COVID Long Haulers has the potential to change our world and modern society lastingly. Generation COVID-19 already now exhibits three trends towards de-urbanization to live in Agrohoods, attention to Ecowellness and Biophilia design preference. Since the onset of the COVID-19 pandemic, de-urbanization trends evolved with a massive flow of people having moved from large metropolitan areas to more rural spaces to socially distance and enjoy nature while being productive online. New community development in harmony with nature are forming in so-called Agri- or Agrohoods, which are neighborhoods that are directly attuned to the surrounding and celebrate the natural and cultural heritage. Creative Ecowellness options and sustainable lifestyle innovations take into account health and well-being, considering the given natural constraints set by ecological limits. The environment is also represented by biophilic architecture design trends booming, which resemble or use the natural environment. For instance, the fashion world has picked up the trend in the form of sustainable fabrics. The United Nations Conference of the Parties (COP-26) discussed sustainable fashion trend solutions as a broad-based integration of sustainability in everyone’s lifestyle that aids in the transition to a greener economy. Plant- and fungus-based clothing booms in the design world as a carbon-negative and organic alternative to fast fashion. Given the widespread impetus of COVID-19 and the long-term impact of Coronavirus Long Haulers, the proposed trends are likely to become general sustainable changes heralding a pro-environmental Renaissance.
    Keywords: Agrohood, Architecture, Biophilia Trends, Biophilic Design, Community, Coronavirus, COVID-19, De-urbanization, Design, Ecowellness, Environment, Generation COVID-19, Lifestyle, Pandemic, Social Justice, Sustainability, Trend Analysis
    Date: 2021–12
  8. By: Chatzinikolaou, Dimos (Democritus University of Thrace, Department of Economics); Vlados, Charis (Democritus University of Thrace, Department of Economics)
    Abstract: A growing number of policymakers and scholars refer to the current COVID-19 pandemic crisis as a turning point in the evolution of globalisation. Following these interpretations, a relative theoretical deficiency in analysing the contour of the newly emerging global development perspective is identified. We explore the post-war evolution of world capitalism (from World War II and beyond), focusing on the following pillars: the formation of international regimes, the generation of main types of innovation, and the successive articulation of world development and crisis phases. The current transition period of the post-COVID-19 era constitutes, in its essence, a mutational crisis of the global accumulation regime and mode of regulation, accelerating the transition towards a 'new globalisation'. The generation and application of functional, institutional, and organically perceived business innovation seems to constitute the main component for a sufficiently re-stabilised new global development trajectory
    Keywords: global development model; globalisation; new globalisation; capitalist crisis; socioeconomic transition; innovation; 2008 financial crisis; 2020 pandemic crisis; economic development
    JEL: F60 F63 F64
    Date: 2022–05–11
  9. By: Gastón Caligaris
    Abstract: En el artículo se reconstruye y se muestra el debate marxista sobre la naturaleza y fuente del plusvalor extra apropiado por los capitales que introducen una innovación tecnológica. Hasta el presente, esta controversia ha sido tratada siempre como subsidiaria de otros debates. Sin embargo, su recurrencia y la evolución de los argumentos esgrimidos —en particular en las últimas décadas— muestran que tiene la entidad de un debate en sí mismo. Tras rastrear la presencia de esta controversia en distintos debates marxistas en contextos históricos e intelectuales diversos, se reúnen y sistematizan los argumentos presentados. En esencia, se identifican dos posiciones contrapuestas: por un lado, la que argumenta que el plusvalor extra es la representación del trabajo de los trabajadores empleados por el capital innovador; por otro lado, la que argumenta que se trata de la representación del trabajo empleado por otros capitales. En la medida en que los argumentos se apoyan en diversas lecturas de la obra de Marx, se dedica una sección a reunir y discutir la evidencia textual disponible. Finalmente, se realiza un breve balance crítico del debate en el que se concluye que la posición que argumenta en favor de transferencias de valor no implica recaer en una concepción naturalizadora del valor ni es incompatible con los fundamentos de la crítica marxiana de la economía política.
    Keywords: Plusvalor extra, Plusganancia, Trabajo potenciado, Transferencias de valor, Debate marxista, Teoría del valor.
    JEL: B14 B24 B51 O33 D46
    Date: 2021–07–01
  10. By: Tania Burchardt
    Abstract: Report of a roundtable discussion on theories of welfare To what extent do developments in the UK welfare state over the last 25 years tend to confirm or challenge existing accounts of welfare state evolution? What does this imply for the prospects for welfare state reform coming out of the COVID crisis? What does the evolution of the (UK) welfare state over the last 25 years, and the influences on it, tell us about its capacity to respond to the current crisis? What challenges will the welfare state have to address after the worst of the public health crisis has passed, and are these new challenges or more dramatic forms of existing challenges? What do the history and theories of welfare state change tell us about the likelihood of the welfare state responding effectively to these new challenges?
    Keywords: welfare state reform, covid-19, Beveridge
    Date: 2020–06
  11. By: Paula Onuchic
    Abstract: This paper surveys the literature on theories of discrimination, focusing mainly on new contributions. Recent theories expand on the traditional taste-based and statistical discrimination frameworks by considering specific features of learning and signaling environments, often using novel information- and mechanism-design language; analyzing learning and decision making by algorithms; and introducing agents with behavioral biases and misspecified beliefs. This survey also attempts to narrow the gap between the economic perspective on "theories of discrimination" and the broader study of discrimination in the social science literature. In that respect, I first contribute by identifying a class of models of discriminatory institutions, made up of theories of discriminatory social norms and discriminatory institutional design. Second, I discuss the classification of discrimination as direct or systemic, and compare it to previous notions of discrimination in the economic literature.
    Date: 2022–05
  12. By: Julia M. Puaschunder (The New School, New York, USA)
    Abstract: Current climate change mitigation and adaptation financing efforts are calling for innovative green investment strategies. An emerging literature and awareness on the economic gains and losses of a warming globe being distributed unequally between countries can serve as novel basis of redistribution schemes. A taxation-and-bonds strategy over the entire world could fund climate change alleviation. A financial asset transfer could be enacted in form of tax-debt mechanisms. Proposed taxation and bonds strategy could aid in broad-based and long-term market incentivization of a transition to a clean energy economy. Strategies could feature some countries’ financing green bonds via carbon taxation, while other countries are climate bonds premium recipients. The bonds recipients would be funded by the climate taxation countries. The bonds could be tradable and issued controlled by global governance institutions, such as the International Monetary Fund, the World Bank, the United Nations or the World Trade Organization. In most redistribution schemes with market incentives, such as – for example – the cap-and-trade emissions trading system, the CO2 emissions levels are addressed. This article advocates for attention to potential economic gains from a warming globe as a source of assets for redistribution. These gains could be redistributed to areas and industries of the world that are clearly losing from climate change immediately. Contrary to most economic redistribution models concerning climate change that primarily weight in relative CO2 emissions for production, this paper argues for attention to CO2 emissions consumption levels. The trade-adjusted consumption-based CO2 emissions levels appear fairer in the judgment what countries have a higher responsibility to fund the burden of climate change. Market-mechanisms – such as consumption taxation and price mark-ups for consumers – are discussed as additional market strategies to redistribute costs, risks and losses implied by climate change.
    Keywords: Climate Change, Climate Stabilization, Economics, Economics of the Environment, Environmental Justice, Environmental Governance, Equality, Monetary policy, Redistribution, Social Justice, Sustainability
    Date: 2021–12
  13. By: OECD
    Abstract: The OECD Global Action “Promoting Social and Solidarity Economy Ecosystems”, funded by the European Union, through its work stream on legal frameworks, endeavours to: 1) increase knowledge and understanding on legal frameworks for the social and solidarity economy; 2) explore approaches and trends of legal frameworks to regulate the social and solidarity economy as a whole and social economy organisations; and 3) understand how legal frameworks can be used to promote and develop the social and solidarity economy in different contexts. This paper defines the legal notions, traditions and approaches to better understand legal frameworks that regulate the field. It presents and analyses the diversity, relevance and implications of legal frameworks that regulate the social economy; takes stock of the processes that lead to their design and implementation; identifies possible criteria for assessing their performance; and highlights the crosscutting issues and policy examples that could inspire countries.
    Keywords: cooperative, legal framework, local development, policy ecosystem, social economy, social enterprise
    JEL: L31 L33
    Date: 2022–06–08

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