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on Post Keynesian Economics |
| By: | Davis, John B.; Boianovsky, Mauro; (Department of Economics Marquette University; Department of Economics Marquette University) |
| Abstract: | Douglass North was central to the emergence of New Institutional Economics. Less well known are his later writings where he became interested in complexity theory. He attended the second economics complexity conference at the Santa Fe Institute in 1996 on how the economy functions as a complex adaptive system, and in his 2005 Understanding the Process of Economic Change incorporated this thinking into his argument that market systems depend on how institutions evolve. North also emphasized in the 2005 book the role belief played in evolutionary processes, and drew on cognitive science, especially the famous ‘scaffolding’ idea of cognitive scientist Andy Clark – the idea that the brain and the world ‘collaborate’ to address our computational and informational needs. This chapter discusses how North’s thinking about institutions and change reflected these later investigations. It concludes with comments on his late thoughts about the problem of violence. |
| Keywords: | Douglass North, New Institutional Economics, complexity theory, cognitive science, scaffolding, Andy Clark, violence |
| JEL: | B20 B30 B41 B52 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:mrq:wpaper:2024-01&r=pke |
| By: | Michele Bee (University of Salento [Lecce]); Raphaël Fèvre (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur) |
| Abstract: | This paper aims to exploit fully the heuristic virtues of Keynes' famous ‘old bottles' story, deploying a multi-layered argument and drawing out its broadest implications. In essence, we show that through this story Keynes was making a very serious point about anti-crisis policies: the need for authorities to stimulate animal spirits by relying on people's natural impulse to action. Rather than taking the place of entrepreneurs and paying people to dig holes, Keynes seems to be arguing that public authorities should put entrepreneurs in a situation where they are so enthusiastic that they go into debt to dig holes, just like during a gold rush. At the same time, it is a question of restoring the banks' willingness to lend for these overoptimistic projects in a period of total depression. This article explores the conditions that make public intervention as effective as possible through the enthusiasm and individual initiative that can be generated by an artificial gold rush. Such intervention therefore can be as minimal as possible, without having to resort to the opposite authoritarian solution of war. Since the gold rush builds cities and war destroys them, Keynes spent considerable energy convincing his contemporaries that liberal-democratic countries would have to take the former path if they wanted to avoid the latter. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04414654&r=pke |
| By: | Gómez Julián, José Mauricio |
| Abstract: | The long-term estimation of the Marxist average rate of profit does not adhere to a theoretically grounded standard regarding which economic activities should or should not be included for such purposes, which is relevant because methodological non-uniformity can be a significant source of overestimation or underestimation, generating a less accurate reflection of the capital accumulation dynamics. This research aims to provide a standard Marxist decision criterion regarding the inclusion and exclusion of economic activities for the calculation of the Marxist average profit rate for the case of United States economic sectors from 1960 to 2020, based on the Marxist definition of productive labor, its location in the circuit of capital, and its relationship with the production of surplus value. Using wavelet-transformed Daubechies filters with increased symmetry, empirical mode decomposition, Hodrick-Prescott filter embedded in unobserved components model, and a wide variety of unit root tests the internal theoretical consistency of the presented criteria is evaluated. Also, the objective consistency of the theory is evaluated by a dynamic factor auto-regressive model, Principal Component Analysis, Singular Value Decomposition and Backward Elimination with Linear and Generalized Linear Models. The results are consistent both theoretically and econometrically with the logic of Marx’s political economy. |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:seqbf&r=pke |
| By: | Guidorzzi Girotto, Vitor; Strachman, Eduardo |
| Abstract: | The relationship between money and credit is analyzed differently between schools of economic thought. Orthodoxy, in general, analyzes it using the commodity money approach; heterodoxy, in large part, adopts the Chartist approach. The crucial difference between them lies in the fact, as put by Schumpeter, that orthodoxy postulates a monetary theory of credit; the heterodox, a credit theory of money. For the latter, money is, by nature, credit, and it can take different forms, tangible or not. The State uses it sovereignty to delimit the monetary system by defining what will (or will not) be accepted as money in the payments of transactions due to itself. Thus, Knapp’s contribution in structuring a theory of state money meets Innes’s credit theory of money and, together, these contributions offer a solid theoretical and historical framework for the formulation of an alternative theory of money, the Chartist theory. |
| Keywords: | Money; Chartalism; Credit; Knapp; Innes. |
| JEL: | E12 E42 E51 |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119866&r=pke |
| By: | CHINNOCK, Rylan; VENEZIANI, Roberto; YOSHIHARA, Naoki |
| Abstract: | In this paper we review recent developments in axiomatic studies of Marxian exploitation theory. First, given the acute controversy over the formal definition of exploitation during the 1970-1990s, we review the study of the axiomatic framework, which identifies some fundamental properties – technically, domain conditions – that any definition of exploitation should satisfy. Moreover, we provide a survey on the axiomatic studies about the proper measures of exploitation which coherently preserve the basic Marxian perceptions represented by two axioms, Profit-Exploitation Correspondence Principle and Class-Exploitation Correspondence Principle. Finally, we examine the relevance of the labour theory of value in these axiomatic studies of the proper measures of exploitation. |
| Keywords: | Axiomatic analysis, Labour Exploitation, Profit-Exploitation Correspondence Principle, Class-Exploitation Correspondence Principle, Labour Theory of Value |
| JEL: | D63 D51 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:754&r=pke |