nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2023‒03‒06
six papers chosen by
Karl Petrick
Western New England University

  1. Demand-led industrialisation policy in a dual-sector small open economy By Nomaler, Önder; Sartorello Spinola, Danilo; Verspagen, Bart
  2. Ladislaus von Bortkiewicz’s Errors and a Reliable Solution to the Marxian Problem of Transformation in Direct and Inverse Formulation By Kalyuzhnyi, Valeriy
  3. On Capital: an essay on inequality, capital and value theory By Mauricio De Rosa
  4. Rentiers, Strategic Public Goods and Financialization in the Periphery By Gabriel Porcile; Gilberto Tadeu Lima
  5. Integrating Gender into a Labor Economics Class By Strenio, Jacqueline; van der Meulen Rodgers, Yana
  6. Straussian Grounded Theory: An Evolved Variant in Qualitative Research By Mohajan, Devajit; Mohajan, Haradhan

  1. By: Nomaler, Önder (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn, RS: UNU-MERIT); Sartorello Spinola, Danilo; Verspagen, Bart (RS: GSBE MGSoG, RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn, RS: UNU-MERIT Theme 1)
    Abstract: This article models the process of structural transformation and catching-up in a demand-led Southern economy constrained by its balance of payments. Starting from the Sraffian Supermultiplier Model, we model a dual-sector small open economy with a traditional and a modern sector, and that interacts with a technologically advanced Northern economy. We propose two (alternative) autonomous elements that define the growth rate of this demand-led economy: government spending and exports. Drawing from the Structuralist literature, productivity in the technologically laggard Southern economy grows by absorbing technology from the Northern economy, by both embodied and disembodied spillovers, and potentially closing the technology gap. The gap affects the income elasticity of exports, bringing a supply-side mediation to the growth rates in line with the Balance of Payments Constrained Model. We observe that a demand-led government policy plays a central role in structural change, pushing t he modern sector to a larger share of employment than what results under export-led growth. Such demand policy is the only way in which partial catching up (in productivity and GDP per capita) can result, and this is facilitated by a global market place in which the balance of payments constraint is relatively soft.
    JEL: O41 E12 E61
    Date: 2023–01–05
  2. By: Kalyuzhnyi, Valeriy
    Abstract: The paper argues that economists still regard the solution to the problem of the transformation of values into prices of production, got by L. von Bortkiewicz, as belonging to Marx himself. After all, it was allegedly “correctly corrected” by the said author in 1907. Bortkiewicz based his solution on several erroneous interpretations’ theory of Marx. Because of Bortkiewicz’s errors, the representatives of the mainstream see no connection between the “value system” and the “production price system”. They claim that the transformation problem itself results from impossibility and that Marxist value theory is, at best, irrelevant and irremediably inconsistent. The paper shows that the solution to the transformation issue exists in both the direct and inverse formulation. We used for this purpose the Tugan-Baranowsky—Bortkiewicz three-sector model. These results are consistent with the concept of Marx within the dualistic approach. They coincide with the results generated by the author in his previous work (see In the present paper, we introduce methods and examples of transformation, including iterative and based on solving systems of simultaneous equations. We prove again with their help that at equilibrium prices, profit arises from surplus value, or more precisely, from the newly created value generated by workers’ labour and from no other source. We also show that a dualistic approach to transformation allows us to see the advantages of value prices, which, unlike production prices, do not limit the growth of the productive power of labour when enterprises introduce new machines. Value prices are in demand under socialism.
    Date: 2022–03–01
  3. By: Mauricio De Rosa (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)
    Abstract: Capital is back at the center of the empirical distributional research agenda. New estimates of wealth accumulation, distribution and inheritance, fully consistent with national accounts' definitions and deeply rooted in standard neoclassical growth models, are now available. This provides the new inequality literature with clearut insights and empirical firepower. But while the empirical flank is increasingly well protected, the theoretical one is exposed. I revisit the debates on the underlying theory of capital and document its drawbacks, highlighting that it is particularly ill-equipped for inequality analysis and that its central problem is the theory of value. Does this mean that we should to start anew? I argue on the contrary, showing that under a one-good model assumption, there is accounting correspondence with the labor theory of value, which gives room for reinterpretation of most available estimates. Moreover, it is possible to establish clear accounting links between famous drivers of the economic system such as r>g and Marx's falling rate of profits. However, even under this accounting correspondence, taking distance from the scarcity theory of value has relevant implications for the inequality narrative, insofar it forces us to abandon the merit-inheritance discussion to include the role of exploitation. Keywords: prenatal visits, weeks of gestation, premature births, vital statistics, household surveys, validation.
    Keywords: capital theory, history of economic thought, wealth inequality, national accounts
    JEL: B24 D46 D31 E01 E13
    Date: 2022–05
  4. By: Gabriel Porcile; Gilberto Tadeu Lima
    Abstract: This paper revisits a traditional theme in the literature on the political economy of development, namely how to redistribute rents from traditional exporters of natural resources towards capitalists in technology-intensive sectors that have a higher potential for innovation and the creation of higher-productivity jobs. We argue that this conflict has been reshaped in the past three decades by two major transformations in the international economy. The first is the acceleration of technical change and the key role governments play in supporting international competitiveness. This role takes the form of the provision of strategic public goods to foster innovation and the diffusion of technology (what Christopher Freeman called “technological infrastructure”). The second is the impact of financial globalization in limiting the ability of governments in the periphery to tax and/or issue debt to finance those public goods. Capital mobility allows exporters of natural resources to send their foreign exchange abroad to arbitrate between domestic and foreign assets, and to avoid taxation. Using a macroeconomic model for a small open economy, we argue that in this more complex international context the external constraint on output growth assumes different forms. We focus on two polar cases: the “pure financialization” case, in which legal and illegal capital flights prevent the government from financing the provision of strategic public goods; and the “trade deficit” case, in which private firms in the more technology-intensive sector cannot import the capital goods they need to expand industrial production.
    Keywords: Rentiers; public goods; financial globalization; technological infrastructure; center and periphery
    JEL: E12 F31 F63 H41 O11
    Date: 2023–02
  5. By: Strenio, Jacqueline (Norwich University); van der Meulen Rodgers, Yana (Rutgers University)
    Abstract: This article argues that a systematic integration of gender into labor economics courses based on standard textbooks is both beneficial and straightforward. An undergraduate course in labor economics presents an ideal opportunity to introduce students to the importance of gender differences in economic outcomes. We provide a prototype of such a course, and we show how gender-aware content and pedagogical tools can complement a course based on a standard textbook or set of articles. We also review the most popular textbooks in labor economics and show how gender issues are mostly contained in a single chapter on labor market discrimination rather than thoroughly integrated throughout the text. In addition to exposing students to more diverse content and methodologies, mainstreaming gender into an undergraduate labor economics class can help cultivate inclusivity and belongingness in the discipline.
    Keywords: labor economics, gender, women, curriculum, COVID-19
    JEL: A2 J1 O1
    Date: 2023–01
  6. By: Mohajan, Devajit; Mohajan, Haradhan
    Abstract: Grounded theory (GT) has emerged on the basis of different ontological and epistemological assumptions and is considered as a popular research approach in many branches of social science. Two American social scientists; Barney Galland Glaser (1930-2022) and Anselm Leonard Strauss (1916-1996) have founded it in 1967. Since the start of grounded theory in social science researches in 1967; more than 50 years have passed, and it has been using in many branches of social science, such as in nursing, healthcare, physiotherapy, education, economics, anthropology, sociology, political science, psychology, etc. Straussian grounded theory is a very well-known qualitative analysis in the world, and it explores dynamic and new phenomena. Straussian grounded theory researchers do not build their research on prearranged hypotheses; instead they develop theory of wellbeing for the humanity from the collected data of the reality. In this article an overview and significance of Straussian grounded theory for the qualitative research method has been discussed. This article also provides an understanding about the Straussian grounded theory approach for the novice researchers.
    Keywords: Qualitative research, grounded theory, Straussian version, ontology, epistemology
    JEL: A14 B41 B54 I23 I31
    Date: 2022–10–12

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