nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2023‒10‒09
five papers chosen by
Karl Petrick, Western New England University

  1. A test of “turbulent arbitrage” By Eric Kemp-Benedict
  2. The Historicity of Economic Sciences: The Main Epistemological Ruptures By Alain Herscovici
  3. The politics of profits: Profit squeeze and political-economic change in Sweden, 1975–1985 By Bengtsson, Erik
  4. Business Ethics as Ideology By Hugo Letiche
  5. Maintaining human wellbeing as socio-environmental systems undergo regime shifts By Andrew R. Tilman; Elisabeth H. Krueger; Lisa C. McManus; James R. Watson

  1. By: Eric Kemp-Benedict
    Abstract: Anwar Shaikh's theory of turbulent arbitrage predicts that incremental profit rates will tend to equalize across sectors, albeit in a noisy and turbulent fashion. He supports the claim with plots of time series of average and incremental profit rates for US sectors. This paper applies a Kolmogorov-Smirnov two-sided test to pairs of sectoral profit rate time series, drawing on Shaikh's data. The results support Shaikh's claim.
    Keywords: turbulent arbitrage; real competition; profit rates; Kolmogorov-Smirnov test
    JEL: C14 E12 E22
    Date: 2023–09
  2. By: Alain Herscovici (UFES - Universidade Federal do Espirito Santo)
    Abstract: The object of this work is threefold: it consists (a) in explaining and justifying, based on Foucault's concept of episteme, the epistemological foundations from which Classical Economics, Keynesian Economics and Neoclassical Economics were built; (b) in studying the nature of the epistemological ruptures that allow differentiating these schools; and (c) in defining the degree of incommensurability of these different paradigms. In the first part, I will define the main epistemological tools that allow studying the birth and evolution of science. In the second part, I will study the nature of the epistemological ruptures that characterize these evolutions and these different schools.
    Keywords: Historicity -Epistemological Ruptures -History of Economic Thought -Episteme
    Date: 2023–08–28
  3. By: Bengtsson, Erik (Department of Economic History, Lund University)
    Abstract: In the late 1970s, the Swedish economy faced a profit squeeze which threatened to hamper investments and hence the creation of jobs. This engendered a massive debate in the media and among economists and policymakers. This paper investigates the discussion of “the politics of profits”, the policy measures directed towards manipulating the distribution between capital income and labour income in the Swedish economy from the mid-1970s to the mid-1980s. The paper indicates that the capital-labour distribution varied significantly over time and that this became a major issue of debate, and shows the relevance of “the politics of profits” for analyses of economic policy change in the 1970s and 1980s.
    Keywords: economic policy; Sweden; macroeconomics; history of capitalism; mixed economy
    JEL: H60 N14 N44 P16
    Date: 2023–09–01
  4. By: Hugo Letiche (Business University Nyenrode - Nyenrode Business Universiteit, LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - DEFI - Département Droit, Economie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])
    Abstract: In The Ungorvernable Society; A Genealogy of Authoritarian Liberalism (2021) [La société ingouvernable (2018)] Grégoire Chamayou makes the claim that business ethics has served as an ideological smoke screen for globalized hyper-capitalism. Business ethics has fostered 'knowledge' in the service of power and supported generalized obedience to managerial prerogatives. Instead of applying moral philosophy to business, it has created an ideology of entrepreneurship, TINA profit maximization and shareholder value. Academics, and business supported thinktanks, paved the way for neo-liberal hegemony. Chamayou claims that his study is a genealogy in Foucault's tradition. First, I will summarize his position; and second, I will contest his methodological claim. Whatever the merit of his attack on business ethics, Chamayou I will argue, has not produced a genealogical text, nor are his claims to be defended from a Foucaultian position. Chamayou calls out 'fire' in the theater of business ethics; but his own text is methodologically just as mythic and ideological (i.e. tendentious) as the texts he attacks.
    Abstract: Dans La société ingouvernable (2018), Grégoire Chamayou affirme que l'éthique des affaires a servi d'écran de fumée idéologique à l'hyper-capitalisme mondialisé. L'éthique des affaires a favorisé le « savoir » au service du pouvoir et soutenu l'obéissance généralisée aux prérogatives managériales. Au lieu d'appliquer la philosophie morale aux entreprises, elle a créé une idéologie de l'esprit d'entreprise, de la maximisation des profits TINA et de la valeur pour les actionnaires. Les universitaires et les groupes de réflexion soutenus par les entreprises ont ouvert la voie à l'hégémonie néolibérale. Chamayou affirme que son étude est une généalogie dans la tradition de Foucault. Dans un premier temps, sa position sera résumée et, dans un second temps, son affirmation méthodologique est contestée. Quel que soit le mérite de son attaque contre l'éthique des affaires, Chamayou, selon nous, n'a pas produit de texte généalogique et ses affirmations ne peuvent être défendues à partir d'une position foucaldienne. Chamayou crie « au feu » dans le théâtre de l'éthique des affaires, mais son propre texte est méthodologiquement tout aussi mythique et idéologique (c'est-à-dire tendancieux) que les textes qu'il attaque.
    Keywords: Grégoire Chamayou, Foucaultian genealogy, CMS, Business Ethics, Neo-con ideology, Généalogie foucaldienne, Ethique des affaires, Idéologie néo-conservatrice
    Date: 2023–06–23
  5. By: Andrew R. Tilman; Elisabeth H. Krueger; Lisa C. McManus; James R. Watson
    Abstract: Global environmental change is pushing many socio-environmental systems towards critical thresholds, where ecological systems' states are on the precipice of tipping points and interventions are needed to navigate or avert impending transitions. Flickering, where a system vacillates between alternative stable states, is touted as a useful early warning signal of irreversible transitions to undesirable ecological regimes. However, while flickering may presage an ecological tipping point, these dynamics also pose unique challenges for human adaptation. In this work, we link an ecological model that can exhibit flickering to a model of human adaptation to a changing environment. This allows us to explore the impact of flickering on the utility of adaptive agents in a coupled socio-environmental system. We highlight the conditions under which flickering causes wellbeing to decline disproportionately, and explore how these dynamics impact the optimal timing of a transformational change that partially decouples wellbeing from environmental variability. The implications of flickering on nomadic communities in Mongolia, artisanal fisheries, and wildfire systems are explored as possible case studies. Flickering, driven in part by climate change and changes to governance systems, may already be impacting communities. We argue that governance interventions investing in adaptive capacity could blunt the negative impact of flickering that can occur as socio-environmental systems pass through tipping points, and therefore contribute to the sustainability of these systems.
    Date: 2023–09

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