nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2023‒07‒17
four papers chosen by
Karl Petrick
Western New England University

  1. Peter Howitt - A Keynesian Still in Recovery By David Laidler
  2. Open Science vs. Mission-oriented Policies and the Long-run Dynamics of Integrated Economies: An Agent-based Model with a Kaldorian Flavour. By Andrea Borsato; Andre Lorentz
  3. Piero Sraffa – Doing ‘History in Reverse' By Eric Rahim
  4. Prebisch and Singer in the Egyptian cotton fields By Diab, Osama

  1. By: David Laidler
    Abstract: Peter Howitt is best known for his contributions to growth theory, but his work in short-run economics, which began with his Ph.D thesis and still continues, is important and deserves attention. It lies firmly in the Keynesian macro-disequilibrium tradition of Robert Clower and Axel Leijonhufvud, and for a long time has been overshadowed by New-classical and New-Keynesian orthodoxy. However, the development of agent based modelling and behavioural economics is perhaps giving disequilibrium macroeconomics a new lease on life.
    Keywords: equilibrium, disequilibrium, money, New classical Economics, New Keynesian Economics, Keynes, Lucas, Howitt, Clower, Leijonhufvud, Phelps
    JEL: B22 B59 E12 E13 E31 E32
    Date: 2023–06
  2. By: Andrea Borsato; Andre Lorentz
    Abstract: This paper offers a contribution to the literature on science policies and on the possible trade-off that might arise between broad spectrum science-technology policies and missionoriented programs. We develop a multi-country, multi-sectoral agent-based model of economic dynamics with endogenous structural change that represents a small-scale monetary union. Findings are threefold. Firstly, science policies from national governments, even when symmetric, act as a source of growth divergence across countries. Secondly, even if economic growth is largely driven by the sectors with absolute advantages, having at least a little flow of open science investments is sufficient for the other industries to survive and innovate, hence preserving the bio-diversity of the economic structure. Thirdly, science policy alone is a sufficient means to break monopolistic tendencies, trigger competition and reduce income inequality. Still, such results are conditioned to the flow of open science. Yet, the working of the model suggests that supply-side science policies should be paired with demand-side policies for the wide re-organisation of consumption habits, if grand societal challenges are to be met.
    Keywords: Science policies, Structural and technical change, Economic growth.
    JEL: E11 E32 O33 O41
    Date: 2023
  3. By: Eric Rahim (University of Strathclyde)
    Abstract: This paper follows a suggestion made by Piero Sraffa in the late 1920s about the writing of his book that was finally published in 1960 – a suggestion he did not follow. The suggestion consisted in the writing of a history of political economy, starting with the ideas of the French Physiocrats, and its further development by Adam Smith and David Ricardo. This history was intended as an introduction to the 1960 book. The paper concludes with a brief discussion of the ‘central propositions’ of the 1960 book, seen as a rigorous theoretical statement of the political economy of these ‘old’ economists.
    Keywords: Sraffa, Physiocrats, Adam Smith, David Ricardo, Karl Marx
    JEL: J12
  4. By: Diab, Osama
    Abstract: This article explores new approaches to the study of colonial trade relationships between Egypt and Britain in the long 19th century. More specifically, it employs the Prebisch-Singer Hypothesis (PSH) to assess whether Egypt’s barter terms of trade (BTT) with Britain has deteriorated or improved during the long 19th century. The article argues that the BTT evolution is key to understanding two central phenomena of the modern capitalist era away from Weberian- and Sombartian-style culturalist interpretations. First is the growing uneven development–known as the Great Divergence–between the 'core' and the 'periphery' of the global economic system, and second is the rise of anti-colonial sentiments and policies in the Global South.
    Date: 2023–06–20

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