nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2023‒03‒27
five papers chosen by
Karl Petrick
Western New England University

  1. Uncertainty - Definition and Classification for the Task of Economic Forecasting By Mihail Yanchev
  2. The Drain Gain: An investigation into how colonial drain helped keep British economy buoyant By Kabeer Bora
  3. Marxisme et féminisme réconciliés ? Aux sources de la théorie de la valeur-dissociation de Roswitha Scholz By Richard Sobel
  4. The Road to Gender-Equitable Growth: A State-level Analysis of Social Reproduction in the U.S. By Aashima Sinha
  5. Behavioral Economics in Education Market Design: A Forward-Looking Review By Alex Rees-Jones; Ran Shorrer

  1. By: Mihail Yanchev (Sofia University St. Kliment Ohridski, Faculty of Economics and Business Administration)
    Abstract: The aim of this text is to establish a working definition and classification of uncertainty for the task of economic forecasting. This is necessary in order to arrive at a common understanding of the term, reduce semantic ambiguity and define a clear distinction when it comes to quantifying forecast uncertainty. Two fundamental sources on uncertainty by John Maynard Keynes and Frank H. Knight are reviewed from the perspective of the classification of uncertainty into aleatoric and epistemic, which is a separation of growing use in engineering and machine learning. The concepts of aleatoric and epistemic uncertainty are explored and the possible ambiguity and interaction between them are discussed. Finally, a working definition and classification of uncertainty is laid out and refined for practical use in the context of economic forecasting.
    Keywords: Frank H. Knight, John Maynard Keynes, uncertainty, economic forecasting
    JEL: C53 D80 D81
    Date: 2023–03
  2. By: Kabeer Bora
    Abstract: The global hegemony of Britain in the 19th century is hardly a disputed fact. As a global hegemon, it oversaw the transfer of surplus from the underdeveloped world to its shores. The transfer of surplus was important in maintaining its status as a hegemon. In this essay, I underline the need for Britain to colonize India, its biggest possession. India’s colonial history has been the subject of a lot of scholarly attention but rarely has the focus shifted from the drain of surplus as a cause of underdevelopment of India to a transfer of surplus from India to Britain as a cause of development of Britain. I shed light on this aspect of global surplus extraction and show empirically that this transfer of surplus was invaluable for the success of the British economy. Marx’s macroeconomics and his well-known law of the falling rate of profit are my main sources of support. Accounting for spurious correlation using Hamilton(1994), I find that an increase in colonial drain by 1% increases the rate of profit of Britain by around 9 percentage points. My findings are corroborated by the several robustness checks I perform, including using different measures of domestic exploitation and a different method in Autoregressive Distributed Lag (ARDL). About the whole of the 19th century up until the First World War is included in my period of analysis.
    Keywords: Colonial Drain, Rate of Profit, Time Series Analysis, India JEL Classification: N75, B14, N14
    Date: 2023
  3. By: Richard Sobel (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Roswitha Scholz's theory of value-dissociation articulates a feminist perspective with the Marxist current of value criticism. The article proposes a reconstruction of this articulation. It is a question of uncovering the philosophical roots that make it possible to integrate feminism and Marxism without hierarchy between the two, and this, through a strain common to the commodity fetishism and the gender fetishism. The article first proposes to find, in Marx, the deep meaning of the commodity fetishism. The article then proposes to identify the necessary additions beyond Marx to fully integrate gender fetishism into the theory of value-dissociation: through partial but complementary readings of Horkheimer-Adorno and Beauvoir.
    Abstract: La théorie de la valeur-dissociation de Roswitha Scholz articule une perspective féministe au courant marxiste de la critique de la valeur. L'article propose une reconstruction de cette articulation. Il s'agit de mettre au jour les racines philosophiques qui permettent d'intégrer féminisme et marxisme sans hiérarchie entre les deux, et ce, à travers une souche commune au fétichisme de la marchandise et au fétichisme du genre. L'article se propose d'abord de retrouver, chez Marx, le sens profond du fétichisme de la marchandise. L'article se propose ensuite de dégager les ajouts nécessaires au-delà de Marx pour intégrer pleinement le fétichisme dans la théorie de la valeur-dissociation : à travers des lectures partielles mais complémentaires de Horkheimer-Adorno et de Beauvoir.
    Keywords: Marxism, feminism, value criticism, Frankfurt school, Simone de Beauvoir, critique de la valeur, École de Francfort, Simone De Beauvoir, marxisme, féminisme
    Date: 2022–12–01
  4. By: Aashima Sinha
    Abstract: Building on a Kaleckian-structuralist macroeconomic growth model this paper examines the impact of the interaction between labor market gender equality and social reproduction (SR) or care provisioning, on economic growth across U.S. states. Using panel data for 2003-2017 and principal component analysis, I construct two composite scores for each state to capture care provisioning by household, state, and the market sectors on the supply side and caring tendency to invest in human capacities on the demand side. The interaction of these scores results in four stylized SR regimes. Next, I examine the relationship between women’s labor force participation rate (WLFPR) and state’s per-capita growth rate across these regimes. The paper contributes new evidence to the engendering macroeconomics scholarship on promoting gender-egalitarian and pro-care economic growth by showing that: 1) regimes characterized by strong public, market, and gender-equal care provisioning experience higher per-capita growth rates compared to regimes that lack such care provisioning; 2) higher WLFPR is compatible with higher economic growth in states with gender-equal care structures and 3) gender-equitable growth can be achieved via statelevel policies that expand social spending, access to care services, and gender equality in labor market.
    Keywords: social reproduction, care, growth, development, United States, gender, macroeconomics JEL Classification: J22, O4, O11
    Date: 2023
  5. By: Alex Rees-Jones; Ran Shorrer
    Abstract: The rational-choice framework for modeling matching markets has been tremendously useful in guiding the design of school-assignment systems. Despite this success, a large body of work documents deviations from the predictions of this framework that appear influenced by behavioral-economic phenomena. We review these findings and the body of behavioral theories that have been presented as possible explanations. Motivated by this literature, we lay out paths for behavioral economists to be directly useful to education market design.
    JEL: D47 D9
    Date: 2023–02

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