nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2023‒05‒29
ten papers chosen by
Karl Petrick
Western New England University

  1. Surplus Approach and Institutions: Where Sraffa Meets Polanyi By Cesaratto, Sergio
  2. Increasing returns and labour markets in a predator-prey model By Giovanni Dosi; Davide Usula; Maria Enrica Virgillito
  3. Economic Convergence and the End of History: Envisioning Economy Beyond Technological Singularity By Sachin Sharma; Vijay Kumar; Babloo Jakhar
  4. Commoning with Henri Lefebvre By Juskowiak, Piotr
  5. Left-behind versus unequal places: interpersonal inequality, economic decline, and the rise of populism in the USA and Europe By Rodríguez-Pose, Andrés; Terrero-Davila, Javier; Lee, Neil
  6. Inflation as Redistribution. Creditors, Workers, Policymakers By Bichler, Shimshon; Nitzan, Jonathan
  7. Income and Wealth as Salient Gradational Aspects of Stratification By David Brady
  8. The Recovery from the Covid-19 Pandemic as an Opportunity for a Sustainable and Resilient World By Phoebe Koundouri; Anthony Cox; Arunima Malik; Ben Groom; Brian O'Callaghan; Cameron Hepburn; Catherine Kilelu; Christine Lins; Dale Squires; E. Somanathan; Heba Handoussa; Ian Bateman; Ismail Serageldin; Josep M. Anto; Ketan Patel; Kirsten Brosbol; Lamia Kamal-Chaoui; Luiz Augusto Galvao; Manfred Lenzen; Min Zhu; Rabia Ferroukhi; Richard Carson; Stefan Brunnhuber; Theodoros Zachariadis; Thomas Sterner; Gertrude (Trudi) Makhaya; Angelos Alamanos; Mark C. Freeman; Christian Hansmeyer; Conrad Landis; Tamara Paremoer; Angelos Plataniotis
  9. Wealth Distribution, Income Inequality and Financial Inclusion: A Panel Data Analysis By Patrick N. Osakwe; Olga Solleder
  10. Three Tales of Gender Equality in a Post-Industrial World By Ariane Aumaitre

  1. By: Cesaratto, Sergio (University of Siena)
    Abstract: Relying on anthropological and archaeological research based on the notion of social surplus, and on the lessons of Marx, Polanyi, Sraffa and Garegnani, the paper argues that the classical surplus approach is naturally associated with institutional and historical analysis. The concept of social surplus is a skeleton which is given muscles by institutional analysis while the latter would be enervated if not anchored to a base of ultimate material interests. Institutions should be looked at in relation to the extraction and distribution of the social surplus and the resulting inequality and social conflict. The paper offers a novel Post Keynesian view of institutions in an interdisciplinary perspective.
    Keywords: Surplus; Economic History; Institutions; Marx; Sraffa; Polanyi
    JEL: A12 B51 B52
    Date: 2023–04–27
  2. By: Giovanni Dosi; Davide Usula; Maria Enrica Virgillito
    Abstract: The purpose of this work is to study the joint interaction of three founding elements of modern capitalism, namely endogenous technical change, income distribution and labour markets, within a low-dimensional nonlinear dynamic setup extending the Goodwin model. By going beyond the conservative structure typical of the predator-prey model, we insert an endogenous source of energy, namely a Kaldor-Verdoon increasing returns specification, that feeds the dynamics of the system over the long run and in that incorporates a transition to an (anti) dissipative framework. The qualitatively dynamics and ample array of topological structures reflect a wide range of Kaldorian stylised facts, as steady productivity growth and constant income distribution shares. The intensity of learning regimes and wage sensitivity to unemployment allow to mimic some typical traits of both Competitive and Fordist regimes of accumulation, showing the relevance of the demand-side engine, represented by the KV law, within an overall supply-side framework. High degrees of learning regimes stabilise the system and bring it out of an oscillatory trap. Even under regimes characterised by low degrees of learning, wage rigidity is able to stabilise the business cycle fluctuations and exert a positive effect on productivity growth.
    Keywords: Capitalist system; Kaldor-Verdoon law; wage rigidity; dissipative complex systems.
    Date: 2023–05–15
  3. By: Sachin Sharma (CRSU - Department of Economics, Chaudhary Ranbir Singh University); Vijay Kumar (CRSU - Department of Economics, Chaudhary Ranbir Singh University); Babloo Jakhar (Department of Economics, Central University of Rajasthan)
    Abstract: This paper explores the evolution of "Economy at Technological Singularity" (EaTS) and its implications on the concept of natural liberty and welfare in an economic system. The study begins by discussing Keynes' prophetic ideas of an economic utopia and then delves into the role of technological advancement, particularly Artificial Intelligence, in the EaTS system. The study contrasts the ideas of Karl Marx and Adam Smith in defining natural liberty and the individual incentive mechanism. Giddens' structuration theory highlights the central role of "authoritative resources" in determining the dominion of mankind over "allocative resources". Further, Maslow's hierarchy of needs theory is employed to understand the nature of true natural liberty and the idea of transcendence. The paper also explores the notion of utopia and the "End of History" and concludes with the idea that the holy grail of economics is a mechanism design problem, constrained by technology that dynamically alters the economic world order. Thus, economists must rethink outside the conventional spectrum of economic thought and design new ways to structure incentives and distribution mechanisms for future human civilization.
    Keywords: economic convergence, economic bliss, technological singularity, artificial intelligence, end of history, natural liberty, transcendence
    Date: 2023–04–22
  4. By: Juskowiak, Piotr
    Abstract: In this article, I ask how Henri Lefebvre’s oeuvre can contribute to the foundations for a metromarxist theory of urban commoning. To provide an answer to this question I discuss three main areas in which his thinking about the common emerges – his anthropology, philosophy of the urban, and politics of autogestion. This allows me to emphasize the multidimensionality of the Lefebvre-minded commoning, which manifests itself not only at the level of local activism but also touches the dimensions of the production of subjectivity and the constitution of the urban. Read in this way, Lefebvre’s theory of urban commoning helps us to move beyond some of the limitations of the existing discussion of urban commons, as well as to make room for a more fruitful dialogue between urban scholars and autonomist Marxists. It also equips us with an alternative conceptual framework that potentially enhances post-Lefebvrian projects of direct urban democracy.
    Date: 2023–04–22
  5. By: Rodríguez-Pose, Andrés; Terrero-Davila, Javier; Lee, Neil
    Abstract: Economic change over the past twenty years has rendered many individuals and territories vulnerable, leading to greater interpersonal and interterritorial inequality. This rising inequality is seen as a root cause of populism. Yet, there is no comparative evidence as to whether this discontent is the consequence of localised interpersonal inequality or stagnant growth in ‘left-behind’ places. This paper assesses the association between levels and changes in local GDP per capita and interpersonal inequality, and the rise of far-right populism in Europe and in the US. The analysis —conducted at small region level for Europe and county level for the US— shows that there are both similarities and differences in the factors connected to populist voting on both sides of the Atlantic. In the US, neither interpersonal inequality nor economic decline can explain populist support on their own. However, these factors gain significance when considered together with the racial composition of the area. Counties with a large share of white population where economic growth has been stagnant and where inequalities have increased supported Donald Trump. Meanwhile, counties with a similar economic trajectory but with a higher share of minorities shunned populism. In Europe, the most significant factor behind the rise of far-right populism is economic decline. This effect is particularly large in areas with a high share of immigration.
    Keywords: populism; anti-system voting; interpersonal inequality; interterritorial inequality; economic growth; Europe; US
    JEL: D31 D72 R11
    Date: 2023–04–17
  6. By: Bichler, Shimshon; Nitzan, Jonathan
    Abstract: This paper is part of a dialogue with Blair Fix on how inflation redistributes income between creditors and workers and the way in which monetary policy affects this process. In his 2023 paper, ‘Inflation! The Battle Between Creditors and Workers’, Fix shows, first, that the impact of U.S. inflation on creditor-worker distribution has been historically contingent (favouring workers during some periods and creditors in others); and second, that since the 1970s, Fed policy to combat inflation with higher interest rates boosted the yield of creditors relative to the wage rate of workers. Our own research suggests that these conclusions might be too general. We point out that creditors are not a monolithic class and that different types of creditors are affected differently, and often inversely, by the rate of interest. We illustrate that, contrary to bank depositors, bondholders tend to lose from inflation. And we show that monetary policy, at least in the United States, appears to follow rather than determine market yields. More generally, since most capitalists nowadays are lenders as well as borrowers, and given that ‘dominant capital’ profits from the full spectrum of investment instruments, we wonder if ‘creditors’ is still a useful category for analysing redistribution in general and inflationary redistribution in particular.
    Keywords: Blair Fix, bond yields, creditors, income distribution, inflation, interest rate, monetary policy, total returns, wages
    JEL: G12 E5 J3 D3 E5
    Date: 2023
  7. By: David Brady
    Abstract: This chapter argues income and wealth are two paramount gradational measures of social stratification. The chapter makes this case while reviewing recent social science on income and wealth. First, I begin by explaining how income and wealth are essential for purchasing well-being. Second, I review the definition and measurement of income and wealth. This section is particularly critical because one of my overarching themes is that measurement is absolutely essential to studying income and wealth. Unfortunately, the field of social stratification – especially within the U.S. – has arguably problematically neglected measurement. Along the way, I provide empirical evidence demonstrating that measurement critically influences estimates of levels of inequality, intergenerational mobility, proxies for permanent income, and levels and trends in racial inequality. Third, I describe the levels of inequality in income and wealth. Fourth, I describe the intergenerational inheritance of or mobility in income and wealth. Fifth, I show how income and wealth outperform other measures of social class as proxies of longer term resources, such as permanent income. Sixth, I demonstrate how income and wealth matter to stratification partly because they are mechanisms for other salient inequalities, including especially racial inequalities.
    Date: 2022–07
  8. By: Phoebe Koundouri; Anthony Cox; Arunima Malik; Ben Groom; Brian O'Callaghan; Cameron Hepburn; Catherine Kilelu; Christine Lins; Dale Squires; E. Somanathan; Heba Handoussa; Ian Bateman; Ismail Serageldin; Josep M. Anto; Ketan Patel; Kirsten Brosbol; Lamia Kamal-Chaoui; Luiz Augusto Galvao; Manfred Lenzen; Min Zhu; Rabia Ferroukhi; Richard Carson; Stefan Brunnhuber; Theodoros Zachariadis; Thomas Sterner; Gertrude (Trudi) Makhaya; Angelos Alamanos; Mark C. Freeman; Christian Hansmeyer; Conrad Landis; Tamara Paremoer; Angelos Plataniotis
    Abstract: The COVID-19 pandemic caused a global health crisis with severe social and economic effects, formulating a converging situation with the climate change, the biodiversity collapse, the subsequent war in Ukraine and the macroeconomic recession. This combination of challenges forms an unprecedented opportunity for addressing them systemically, achieving multiple co-benefits under the broader sustainability context: Alleviating poverty and hunger, inequality, and building resilient societies, based on inclusiveness and strong finance, is the topic of this paper. We explain the concept of this ''green'' recovery, the pathways to achieve it, the key areas-sectors for transformation, and outline the funding opportunities and necessary changes for its globally sustainable implementation. This paper reflects the work of global experts on the field, joined after the Lancet Commissioned Report on the Recovery from COVID-19, with a strong focus on science-based policy, global cooperation, and international finance.
    Keywords: Sustainability, Resilience, Green Recovery, Finance, Global Cooperation, COVID-19
    Date: 2023–05–10
  9. By: Patrick N. Osakwe; Olga Solleder
    Abstract: This working paper examines the impact of income inequality on the distribution of wealth using panel data and controlling for the roles of financial inclusion and other potential drivers of wealth inequality. We find evidence that lagged wealth and savings rates increase wealth inequality globally as well as in the developed and developing countries samples.
    Date: 2023
  10. By: Ariane Aumaitre
    Abstract: The last decades have witnessed an unprecedented increase in women’s economic independence through higher educational attainment, labor force participation and an increase in the share of female-led households. However, up to date there is a gap in the literature concerning how this increase in independence has translated into women’s living standards, measured through disposable income. Using a combination of descriptive analysis, OLS regression and RIF regression based decomposition, this paper has unpacks the relationship between economic independence and living standards, and the driving factors behind it. The analysis unfolds three stories regarding the relationship between increasing economic independence for women across developed economies and women’s economic wellbeing. First, a story of emancipation for women at the top of the income distribution, who have seen an increase in their living standards. This is especially the case for highly educated women in dual earner couples. Secondly, a story of compensation and stability of living standards for women at the middle of the income distribution, whose entrance in the labor force manages to balance, at the household level, the decrease in male earnings witnessed during the last decades. And, finally, a story of undelivered promises for women at the bottom of the income distribution, who have experienced a relative loss in their economic wellbeing, especially when belonging to non-traditional family structures such as single mother households. From a welfare state perspective, the analysis suggests that traditional welfare regime classifications cannot fully explain differences in living standards among women.
    Date: 2022–10

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