nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2023‒05‒01
six papers chosen by
Karl Petrick
Western New England University

  1. Ecological Imperialism: A 21st Century Circuits Approach By Khan, Haider
  2. Resilience and complex dynamics - safeguarding local stability against global instability By Willi Semmler; Fabio Della Rossa; Giuseppe Orlando; Gabriel R. Padro Rosario; Levent Kockesen
  3. Reflections on Geopolitics By Elsig, Manfred
  4. On the Black-White Gaps in Labor Supply and Earnings over the Lifecycle in the US By Rauh, C.; Valladares-Esteban, A.
  5. Rent gaps, gentrification and the “two circuits” of Latin American urban economies By Richmond, Matthew; Garmany, Jeff
  6. The effects of Bolsa Familia on human development: systematic review approach By Ciula, Raffaele

  1. By: Khan, Haider
    Abstract: I define ecological imperialism under global capitalism rigorously by following a circuit of capital approach grounded in a dialectical scientific realist epistemology and ontology. I show that a theory of imperialism and ecological imperialism can be constructed by extending the classical circuits of capital to conceptualize a set of international circuits of capital. The dynamic theory thus constructed can analyze a diverse set of social, economic and political phenomena such as the global race for resources, new social and political movements and regional and global instabilities and conflicts. The extension of this theory of ecological imperialism to encompass world systems theory gives the ontological grounds for privileging concrete studies of situations in core-periphery-semi-periphery of the world system in a coherent and consistent manner.
    Keywords: ecological imperialism, world systems theory, circuits of capital, international circuits of capital, monopoly capital, categorial dialectics, resistance
    JEL: B5 G0 Q57
    Date: 2023–03–01
  2. By: Willi Semmler (Department of Economics, New School for Social Research, USA and Bielefeld University, Germany); Fabio Della Rossa (Department of Electronics, Information, and Bioengineering, Polytechnic of Milan, Milan, Italy); Giuseppe Orlando (Department of Mathematics, University of Bari, Italy and HSE University, Saint Petersburg, Russia); Gabriel R. Padro Rosario (Department of Economics, New School for Social Research, USA); Levent Kockesen (Department of Economics, Ko¸c University, Istanbul, Turkey and Nazarbayev University, Astana, Kazakhstan)
    Abstract: We evaluate Brunnermeir’s Theory of Resilience in the context of complex system dynamics where there, however, can be local and global resilience, vulnerability, loss of resilience, cycles, disruptive contractions, and persistent traps. In the paper, we refer to three-time scales. First, for shorter time scales, for the short-run market dynamics, we evaluate resilience in the context of complex market dynamics that have been studied in the history of economic theory for long. Second, with respect to a business cycle medium-term dynamics, we analytically study an endogenous cycle model, built upon Semmler and Sieveking (1993) and Semmler and Kockesen (2017), and discuss the issue of loss of stability, corridor stability, multiple attractors, and trapping dynamics also in the light of complex dynamics. In a financial-real business cycle model, we demonstrate forces that indeed can exhibit multiple dynamic features such as local resilience, known as corridor-stability, but also other dynamic phenomena. Corridor stability pertains to small shocks with no lasting effects, but large enough shocks can lead to persistent cycles and/or contractions. We refer to the Hopf-and-Bautin-Bifurcation theorems, to establish corridor stability, and local resilience, for the interaction of real and financial variables where the trajectories can be stable or unstable in the vicinity of the equilibrium. Thus they can switch dynamic behaviour for small or large shocks. Similar complex dynamic phenomena can be obtained from Kaleckian-Kaldorian nonlinear real business cycle models, in particular when time delays are allowed for. Third, whereas the analytical study of the dynamics is undertaken for the above second-time scale, for the longer time scale we study, in the context of multiple equilibria models, the issue of thresholds, tipping points and disruptive contractions, and persistence of traps.
    Keywords: Resilience, complex dynamic models, regime change model, limit cycles, disruptive contractions
    JEL: C32 E32 E44
    Date: 2023–04
  3. By: Elsig, Manfred
    Abstract: Abstract The notion of geopolitics is widely used in public debates these days. This paper focuses on how the concept has evolved over time in the study of international economic cooperation focusing in particular on trade and investment policies. In light of international relations and international political economy perspectives, the paper discusses the origins of the concepts found in the early 20th century. It then describes how it was marginalized by mainstream theories during the Cold War period, albeit it was implicitly taken up by theorists in the tradition of offensive realism. The paper then maps the liberal turn of the 1990s in political economy and how power politics were further relegated to the background with increasing market integration. It was not until the 2000s when power politics made a slow return. Both academia and politics have been witnessing a surprising renaissance of geopolitics in the past 10 years. The paper maps out the contours of this new variant of geopolitics, a mix of superpower rivalry and economic nationalism, and offers some reflections regarding the danger of deterministic scenarios and ways to temper geopolitics going forward. Biography Prof. Manfred Elsig
    Date: 2023–04–12
  4. By: Rauh, C.; Valladares-Esteban, A.
    Abstract: In the US economy, Black men, on average, receive lower wages than White men, and the difference increases over the working life. The employment rate and the number of hours worked are also lower for Blacks, but the gap is nearly constant. Together these facts suggest that on-the-job human capital accumulation might explain the diverging wages. However, the wage gap and its evolution over the lifecycle cannot be explained by differences in accumulated experience or educational attainment for the cohort we analyze. Instead, the combination of experience and test scores measured at ages 17-22 accounts for the wage gap and its growth. We propose an on-the-job human capital accumulation model with heterogeneity in the initial human capital endowment and the lifelong ability to accumulate human capital, and endogenous labor supply at the extensive and intensive margins to explain the evolution of the Black-White wage gap over the lifecycle. We discipline the distribution of the ability to accumulate human capital using the power of test scores to predict earnings growth in the data. We find that if the pre-market distributions were the same for Blacks and Whites, the racial gap in hourly earnings would be closed by 84%, with the remaining gap opening throughout life due to higher labor supply amongst White men. That is, the unequal conditions with which men in the two groups enter the labor market are likely to be the key determinant of the differences over the lifecycle.
    Keywords: Employment gap, Inequality, Labor supply decision, Lifecycle, Racial gap, Wage gap
    JEL: J15 J24 J31 J64
    Date: 2023–04–17
  5. By: Richmond, Matthew; Garmany, Jeff
    Abstract: Recent research in Latin America, and our own analysis of Brazilian cities, indicate that aspects of rent gap theory – in particular, the assumption that strong links exist between rent gaps and gentrification – do not fully account for observed empirical conditions. Drawing on Milton Santos' theory of “two circuits” of urban economies in the global South, we seek to develop an expanded framework better suited to explaining the Latin American context. Specifically, we argue that important socio-spatial processes combine to embed what Santos called the “lower circuit” in certain parts of the city. This “territorialisation” of space by the lower circuit impedes the entry of the upper circuit, thus constraining expected rent gap capture and gentrification. We argue that only by taking both circuits into account, and considering how they become territorialised in urban space, can we properly grasp the relationship between rent gaps and gentrification in Latin American cities.
    Keywords: rent gap; gentrification; Southern theory; Latin America; Brazil; urban development; 1632145; ES/ P007635/1; ECF-2019-315; Wiley deal
    JEL: J1
    Date: 2023–03–28
  6. By: Ciula, Raffaele
    Abstract: Usually conditional cash transfer programs (CCTs) are interpreted as passive policies dealing with income maintenance, and needs fulfilment, however, recently some part of the literature has suggested a more active role for them. The aim of this article is to investigate the inclusive role of human rights-based CCTs, using Bolsa Familia (BF) policy as a case study. Specifically, I assess the effect of this program on human development as a proxy of achievements in fundamental capabilities and human rights. I choose this type of development because, compared to economic development, it puts at the centre of the analysis human life quality. In order to infer some causal relation between BF and human development I use the systematic review approach, based on natural, quasi-experimental, counterfactual, and longitudinal analysis. The main findings suggest some positive effect of the BF and human development. Hence, BF can be interpreted as human rights-oriented policy, which is able to create social inclusion in fundamental domains to some extent. The main policy implications deal with integrating BF with the education, and the health system as well as with complementary interventions more tightly, to ameliorate the advancement in human rights level.
    Keywords: Human Development; Freedoms; Human Rights; BF; Inequality
    JEL: I38
    Date: 2022–11

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