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on Post Keynesian Economics |
| By: | Giovanni Dosi; Marcelo C. Pereira; Andrea Roventini; Maria Enrica Virgillito |
| Abstract: | This chapter presents an application of the multi-sector labour augmented K+S agent-based model to two contemporary challenges in political economy, namely declining unionization and rising inequality, with reference to mid-term evidence in the US. What has been the effect of declining unionization? We focus, as an example, upon the introduction of legislations such as Right- to-Work (RTW) laws, disfavouring union firms and the way they affected the dynamics of the labour market. The model proves to be a solid and rich tool in order to confront different scenarios emerging out of the interaction of an endogenous dynamic competition between union and non union firms, the latter arriving at a specific time, mimicking the exogenous introduction of RTW laws. The arrival of non union firms induces direct first-order effects, as rising inequality at the workplace and macro level, but also, indirect, second order effects, as lower rates of employment absorption and consumption patterns skewed toward wealthy, luxury consumption goods. In that, complexity economics proves to be a promising avenue to incorporate and confront the grand challenges of contemporary capitalism. |
| Keywords: | Complexity, Capitalism, Socio-economic structure, Macro-evolutionary agent-based models |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/13&r=pke |
| By: | Heyen, Nils B.; Zenker, Andrea; Aichinger, Heike; Bratan, Tanja; Kaufmann, Tanja; Schnabl, Esther |
| Abstract: | For more than a decade, advocates of both green growth and degrowth have argued about the role of economic growth for the transformation towards a societal system that ensures social well-being on a global scale without transgressing planetary boundaries. Given that such a transformation needs innovations of various kinds, this article explores the question of how dependent innovation is on economic growth and what effects a potential long-term economic stagnation or decline may have on innovation processes and systems. We approach the subject from different angles using mixed methods. First, we present a quantitative analysis of the linkages between economic growth and innovation activities on a sectoral level, based on data of the Community Innovation Survey (CIS) for Germany. Here, we find two sectors (petroleum and advertising industries) showing negative growth rates but still a higher than average share of innovative enterprises. Subsequently, we present an in-depth qualitative case study of the international pharmaceutical sector, which allows us to include a qualitative evaluation dimension. Here, we investigate different innovation approaches and find that both the amount of capital needed to finance research and development activities and the added health benefit of novel drugs vary greatly. We finally conclude that economic growth is not a necessary condition for all kinds of innovation and reflect on some implications for innovation policy. If in a post-growth era financial resources are limited, a shift to less capital-intensive types of innovation and a concentration on innovations which address prioritised societal or ecological needs seem feasible. |
| Keywords: | (in)dependency, innovation, economic growth |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisidp:289610&r=pke |
| By: | Moritz A. Drupp; Ulrike Kornek; Jasper N. Meya; Lutz Sager |
| Abstract: | Environmental degradation and economic inequality are two of the defining challenges of the twenty-first century. We synthesize conceptual mechanisms that underpin inequality-environment interlinkages and take stock of the relevant empirical evidence. We propose three channels of interaction, describing, first, how the cost of environmental policy is distributed across households, second, how environmental benefits vary with household income, third, how income inequality and redistribution shape environmental outcomes. The three channels determine how both environmental quality and economic inequality matter for policy appraisal. We argue that it is crucial to consider inequality-environment interlinkages in economic research and policy design, as neither issue can be fully understood in isolation, and close by highlighting future research needs. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11036&r=pke |
| By: | Spahn, Peter |
| Abstract: | Hajo Riese (FU Berlin) was a pioneer of the "Berlin School of Monetary Keynesianism", particularly in the 1980s and 1990s. His research work was based on the roots of monetary theory in the work of J. M. Keynes, with a particular focus on the theory of capital and interest rates. While in Keynes liquidity preference remained an element of money demand, for Riese it formed the central variable of a theory of credit supply. The credit contract is not based on goods or goods equivalents, but on the nominal category of money, because this is the sole medium for the fulfilment of contracts. In addition to the interest rate, the rate of return on real capital is also determined by the liquidity premium. The central bank has to take into account the regulatory-theoretical significance of monetary stability, which runs counter to the "easy money policy" usually demanded by Keynesians. |
| Keywords: | Keynesianismus, Monetarismus |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hohdps:290399&r=pke |