nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2023‒10‒30
five papers chosen by
Karl Petrick, Western New England University

  1. A Classical Marxian Two-Sector Endogenous Cycle Model: Integrating Marx, Dutt, and Goodwin By Cajas Guijarro, John
  2. Alberto Alesina (1957-2020): Man, Researcher, Professor of Economics, Popularizer By Vindigni, Andrea
  3. The political economy of finance and regulatory capture: Evidence from the US Congress By Silano, Filippo
  4. History helps us understand gender differences in the labour market By Committee, Nobel Prize
  5. Bridging the Gap Between Theory and Practice: An Analysis of the UK Government's Counter-Narrative Strategy in the Fight Against Online Extremist Narratives By O'Connell, Michael

  1. By: Cajas Guijarro, John
    Abstract: This paper introduces a Classical Marxian Two-Sector Endogenous Cycle (CMTSEC) model, merging Dutt's (1988) two-sector model of Classical convergence with labor dynamics inspired by Goodwin (1967) and an endogenous labor supply inspired by Harris (1983). Empirical support fortifies these assumptions. Utilizing the Hopf bifurcation theorem and numerical simulations, we demonstrate the model's capacity to produce stable limit cycles encompassing wage share, employment rate, and sectoral capital distribution. Notably, sectoral profit rates exhibit cyclic fluctuations, prompting a reevaluation of long-run equilibrium. The model underscores the role of investment sensitivity to sectoral profit rate disparities in determining cycle stability. Hence, the CMTSEC model extends Goodwin’s (1967) endogenous cycle model, encapsulating the conflict between capital and labor while delving into the intricate dynamics of capitalist reproduction in a two-sector economy.
    Keywords: two-sector model; labor market dynamics; endogenous cycles; sensitivity of investment to profit rate differentials; long-run equilibrium
    JEL: C61 E11 E32 O41
    Date: 2023–09–22
  2. By: Vindigni, Andrea (University of Genova)
    Abstract: This paper offers an overview of Alberto Alesina's life and of his scholarly work (§ 1 and 2). It will be argued, that Alberto would have entirely deserved the award of the Nobel Prize for Economic Science, except only for his premature passing away. His foundational contribution was the creation, and the development of modern political economy since the mid 1980s (§ 3). This is a highly eclectic discipline at the cross-road of economics and political science. I will briefly attempt to explain what political economy is mainly about, and what political economy is nowadays understood to mean: its basic assumptions, its methodology, its goals, its main relations with modern economics (§ 4). I will then focus on the general introduction (§ 5), and the analytical discussion (§ 5.1) of one of Alberto's most important and impactful contributions: his 1994 work with Dani Rodrik on redistributive politics and economic growth. In my opinion, this is not only one of the many path-breaking and extremely impactful contributions of Alberto, but it best illustrates his scholarly traits and his research agenda. This paper has indeed influenced a large subsequent body of literature; I will mention a few highly celebrated among such contributions (§ 5.2). I will then very briefly discuss a few other relatively early works of Alberto, that have also contributed to the foundation and to the establishment of modern political economy (§ 6). These early works could have been part of a hard core of contributions, potentially more than justifying the assignment of the Nobel Prize in Economics to Alberto Alesina. Finally, I will briefly discuss some of his late work (§ 7), as well as my own personal relation with Alberto (§ 8), a truly unique human being, and master of all the Italian economists (and of many other social scientists). Some acknowledgments (§ 9), and a short but essential bibliography (§ 10) conclude this paper.
    Keywords: economic growth, inequality, public debt, government, political economy, redistribution, culture
    JEL: O11 O43
    Date: 2023–09
  3. By: Silano, Filippo
    Abstract: The 2007-08 Global Financial Crisis is a watershed phenomenon that reshaped global capitalism. Stemming from the argument that the Crisis was caused by deregulation, this article assesses to what extent the financial industry influenced the legislative process underlying these reforms. The hypothesis is that, during the deregulation process, the financial industry captured lawmakers' voting behaviour. Drawing on a logistic regression model, this study estimates to what extent 106th -109th Congress roll call votes on financial liberalisation were biased by industry-led campaign contributions and lobbying activities. The main finding shows that members of the US Congress recipient of funding from the financial sector were more prone to support deregulation. Providing systematic empirical evidence of capture, the results support the literature labelling the Crisis as the result of industry-induced deregulation.
    Keywords: political economy, financial crisis, deregulation, capture, campaign finance, lobbying, US Congress, voting behaviour, logistic regression
    JEL: G01 G18 K22 K23 P16
    Date: 2023
  4. By: Committee, Nobel Prize (Nobel Prize Committee)
    Abstract: Over the past century, the proportion of women in paid work has tripled in many high-income countries. This is one of the biggest societal and economic changes in the labour market in modern times, but significant gender differences remain. It was first in the 1980s that a researcher adopted a comprehensive approach to explaining the source of these differences. Claudia Goldin’s research has given us new and often surprising insights into women’s historical and contemporary roles in the labour market.
    Keywords: Gender in labor markets;
    JEL: J70 J71 J78
    Date: 2023–10–09
  5. By: O'Connell, Michael
    Abstract: This thesis critically examines the UK government's counter-narrative strategy for addressing online extremist narratives, comparing it with best practices and recommendations from academic literature. Amidst increasing criticism regarding the efficacy and theoretical underpinnings of such strategies, this thesis develops a theoretical framework incorporating insights from sociology, communication studies, and psychology to establish comparative criteria for effective counter-narrative approaches. Analysis of the UK's strategy reveals an implicit acknowledgment of the importance of context, filtering, and the integration of online and offline spaces. However, the incorporation of other academic insights and psychology-based policies remains unclear. The thesis underscores the importance of greater transparency in the policy space to enable the evaluation of counter-narrative strategies in instigating behavioural and attitudinal change among target audiences. The thesis also emphasises the significance of exploring inoculation as a proactive approach in Countering Violent Extremism (CVE) strategies. Inoculation-based approaches should be incorporated as an integral component of the counter-narrative toolkit. Doing so could foster a more resilient and proactive stance against extremist narratives at the individual level. Future research should focus on understanding the impact of counter-narrative approaches and their alignment with other academic recommendations to ensure the development of more robust and evidence-based strategies.
    Date: 2023–09–26

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