nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2024‒10‒07
six papers chosen by
Karl Petrick
  1. Income Redistribution Policy, Growth, Inequality, and Employment: A Long-Run Kaleckian Approach By Sasaki, Hiroaki; Sonoda, Ryunosuke
  2. Deirdre McCloskey's Critique of Institutional Economics By Heng-fu Zou
  3. Allocating a Surplus Value in the Socialist-Oriented Market Economy of Vietnam By Thua Huynh Kim; Tinh Do Phu Tran
  4. "Karl Marx was right, but he picked the wrong species" By Heng-fu Zou
  5. The paper begins with a discussion of how the use of target return pricing may provide a means of thinking about competition as a perturbation of the process by which capacity adapts to demand aggregate. For this purpose some simple simulation exercises with a model incorporating target return pricing and demand led-growth are considered. Discussion then proceeds to a more nuanced view of target return pricing in light of the literature on corporate pricing. This points to a different view of capital mobility compared with that commonly depicted in the literature on gravitation. Finally, the paper moves to a consideration of two kinds of challenges posed by this alternative view of capital mobility for the modelling of competition in a Sraffian approach. The first is the apparent need to consider intra-sectoral competition. The second relates to the appropriate modelling of the profitability signal driving capital mobility. By Graham White
  6. Artificial Intelligence, Environmental innovation, Green Intelligence (GI), Twin transition, Digitalization, Green technologies By Domenico Delli Gatti; Tommaso Ferraresi; Filippo Gusella; Lilit Popoyan; Giorgio Ricchiuti; Andrea Roventini
  1. By: Sasaki, Hiroaki; Sonoda, Ryunosuke
    Abstract: This study investigates how the income redistribution policy affects economic growth, employment, income distribution, income inequality, and asset inequality. The income redistribution policy is defined as one that imposes capital taxation on capitalists and redistributes it to workers. Therefore, we constructed a Kaleckian model in which, in addition to capitalists, workers own capital stock through savings. Depending on the relative size of workers' and capitalists' saving rates, we obtained the Pasinetti equilibrium, in which both classes coexist, and the dual equilibrium, in which only workers own capital stock, whereas capitalists do not. In the Pasinetti equilibrium, raising the tax rate for capitalists drives an increase in workers' assets and income shares. Simultaneously, economic growth and employment rates increase when the short-run equilibrium is wage-led growth whereas they decrease when the short-run equilibrium is profit-led growth. Hence, the income redistribution policy is effective in reducing inequality and promoting economic growth and employment when the short-run equilibrium is wage-led.
    Keywords: workers' saving; income equality; income redistribution policy; growth; employment
    JEL: E11 E12 E64 J31 J53
    Date: 2024–09–10
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:121968
  2. By: Heng-fu Zou (The World Bank)
    Date: 2023–08
    URL: https://d.repec.org/n?u=RePEc:cuf:wpaper:662
  3. By: Thua Huynh Kim (Mien Tay Construction University, Vietnam); Tinh Do Phu Tran (University of Economics and Law, Vietnam)
    Abstract: This paper is based on the views of Marx, as well as the economists before and after Marx, regarding surplus value. The authors analyze the allocation of surplus value in a socialist-oriented market economy in Vietnam. The result shows that in Vietnam, capitalists do not occupy the entire surplus created by workers, as Marx mentioned, so the existence of surplus value in Vietnam today is not contrary to the socialist direction because of its necessity. Additionally, the authors identify problems in the distribution of surplus value that need to be addressed in the practice of the social-oriented market economy in Vietnam today. Some recommendations are also proposed to effectively allocate surplus value for Vietnamese enterprises, workers, and labor unions.
    Keywords: allocation, surplus value, market economy, Vietnam
    Date: 2024–05
    URL: https://d.repec.org/n?u=RePEc:smo:raiswp:0365
  4. By: Heng-fu Zou (The World Bank)
    Date: 2023–04
    URL: https://d.repec.org/n?u=RePEc:cuf:wpaper:660
  5. By: Graham White
    Keywords: Cross-dual dynamics, target return, demand-led growth
    Date: 2024–09
    URL: https://d.repec.org/n?u=RePEc:syd:wpaper:2024-21
  6. By: Domenico Delli Gatti; Tommaso Ferraresi; Filippo Gusella; Lilit Popoyan; Giorgio Ricchiuti; Andrea Roventini
    Abstract: We extend the multi-country, multi-sector agent-based model in Dosi et al. (2019, 2021) by incorporating an exchange rate market where heterogeneous chartist and fundamentalist financial traders exchange foreign currencies. This introduces complex interactions between the real and financial side of the economies that reverberate on the dynamics of the exchange rate, which acts both as a transmission channel of endogenous fluctuation and as a source of shocks. Simulation results show that model is able to account for a rich ensemble of stylized facts (e.g., fat tails, volatility clustering, fluctuations and contagion among others) concerning the exchange market and its interactions with the real economy dynamics at different level of aggregation. Moreover, our findings reveal that speculative behavior in the exchange rate market substantially increases financial turbulence and contributes to real economic fluctuations. On the policy side, we highlight the power and limitations of central bank interventions in the exchange rate market.
    Keywords: agent-based model, exchange rate dynamics, financial crises, endogenous business cycles, heterogeneous traders, central bank interventions
    Date: 2024–09–19
    URL: https://d.repec.org/n?u=RePEc:ssa:lemwps:2024/24
This nep-pke issue is ©2024 by Karl Petrick. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at https://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.
This page is being maintained by Thomas Krichel. It was last updated on 2024‒10‒11 at 15:31.