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on Post Keynesian Economics |
| By: | Drakopoulos, Stavros A. |
| Abstract: | With a career spanning over many decades, Tony Lawson has made important contributions ranging from the philosophy of social sciences, history economic thought, methodology of economics, political economy, monetary theory, to the theory of ethics. His work concerning ontology has had a remarkable impact on economic methodologists in promoting the discussion of social ontology. Similarly, his articulation of critical realism has strengthened the criticism of heterodox economists against the economics orthodoxy regarding its lack of realism. Although not identified with a specific heterodox strand, it can be argued that Lawson’s work has promoted the development and the appeal of heterodox economics in many ways. A common feature of most heterodox economics relates to the criticism of mathematical formalism which is a core principle of orthodox economic theory. Another common characteristic is the heterodox emphasis on the crucial role of economic methodology for the discipline. Further, most heterodox economists call for a more realistic approach to the study of economic phenomena. This paper will discuss the facets of Lawson’s work which have exerted considerable influence on above- mentioned common attributes of heterodox economics. In particular, it will focus on: A. the argumentation countering the negative stance of mainstream economics towards economic methodology and the support of its usefulness as a subject of study. B. the critique of mainstream economic methodology and especially its use of mathematics. C. the analysis of the nature of heterodox economics. Lawson’s discourses on these themes have contributed towards a credible and coherent alternative to mainstream economics. |
| Keywords: | Economic Methodology; Heterodox Economics; Critique of Mainstream Economics; Tony Lawson |
| JEL: | B20 B40 B50 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123406 |
| By: | Andini, Corrado (University of Madeira) |
| Abstract: | This paper proposes a theory of the mark-up that is embedded in a circuit model of the capitalist mode of production. The model and the theory are built on Keynes's principle of effective demand, Graziani's monetary theory of production and Pivetti's monetary theory of distribution. The price-setting mechanism is conceived as driven by a Kaleckian rule. The rate of interest on bank loans and the propensities to save of different macro-players are shown to affect the level of the mark-up, thus contributing to explain "labour exploitation" as measured by the average gap between worker's pay and productivity. In other words, "labour exploitation" is seen as being in part originated by monetary phenomena, such as the rentability of bank credit and the macro-players' propensities to accumulate money in a bank account. |
| Keywords: | profit, wage, money, finance, capitalism |
| JEL: | B22 E11 E12 E40 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17609 |
| By: | Sergio Cesaratto |
| Abstract: | Models, Methods, and Morality discusses moral values in the field of ancient economic history, where neoclassical hegemony in the form of the New Institutional Economics has progressively gained ground. The book mainly criticises mainstream economics for focusing on quantitative growth without much regard to its social consequences. The spirit of this review is a constructive encouragement to build an alternative approach to economic history possibly based on the classical economists’ surplus approach, taking also advantage of the familiarity that scholars of ancient societies have with the concept of economic surplus. The risk is that without a resolute criticism of mainstream economics and the adoption of an alternative point of view, mainstream economics might paternalistically reabsorb the legitimate moral criticism that pervades many of the contributions to the volume. Being based on a simple heuristic of the economic sources of the élites’ wealth and not possessing a pre-packaged view of human behaviour, surplus theory may usefully be at the core of a socially sensitive, economic history agenda. |
| Keywords: | Economic history, Ancient economies, Surplus approach, New Institutional Economics, Moral economy Jel Classification: B12, B51, N01 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:923 |
| By: | Riccardo Zolea |
| Abstract: | : This paper tries to offer a new interpretation of the relationship between interest rate and profit rate, based on the profitability of bank capital and a rethinking of the traditional multi-sectoral depiction of the economy: that is, considering the banking sector as a particular ‘productive’ sector with a specific price equation. The tool of the Sraffian-type price equation is used to study and represent this relationship within the framework of the Sraffian “Marxian” approach of Garegnani. In order to describe the operation of the banking sector with such a tool, a careful analysis of the necessary and normal coefficients of a banking sector price equation is conducted and the compatibility of economic concepts such as input, output and capital with endogenous money theory is discussed. The results of this investigation show the possibility of conceiving a causal relationship between the rate of profit to the rate of interest, with the central bank wielding significant influence. These findings can also reconnect and develop the different cues in Marx's analysis of the financial system, which are apparently contradictory. |
| Keywords: | : Sraffian price equation; bank profitability; interest rate, endogenous money; Marx Jel Classification: E11; E43; G21 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:924 |
| By: | Bellanca, Nicolo' |
| Abstract: | This note draws inspiration from Riccardo Bellofiore’s recent monograph dedicated to Claudio Napoleoni. It examines Napoleoni’s reflections on key issues within Marxist theory, including the theory of value, alienation and exploitation, rent within the Italian economy, the status of economic science, and the pathways to human emancipation. The interpretative framework proposed by Bellofiore is also analyzed, along with his attempt to reconstruct Marx’s approach. |
| Keywords: | Marxist theory of value; Claudio Napoleoni; Productive labour; Economic alienation |
| JEL: | B31 B41 B51 O11 P10 |
| Date: | 2025–01–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123472 |
| By: | Vinícius da Silva Centeno |
| Abstract: | This work aims to develop an analytical model that addresses the transition to a low-carbon economy by interplaying demand-driven dynamics and energy supply constraints. As the modeling of energy production in the ecological macroeconomics literature has been addressed within supplydriven growth models, the novelty of this article lies in integrating the energy sector into a demandled growth framework. On the growth side, our model follows the Sraffian supermultiplier literature (Serrano, 1995). On the energy side, it draws inspiration from Bernardo and D’Alessandro (2016), explicitly modeling energy production from renewable sources. We assume business-as-usual and green government expenditures are sources of autonomous demand, with investment and capital stock composed of green and conventional components, respectively. The growth and energy sides of the model are connected through a green investment equation, which embodies a constraint on green capital stock accumulation given by the availability of renewable energy. Therefore, the growth dynamics are demand-driven, but the feasibility of the ecological transition is supply-constrained. Numerical simulations demonstrate that scenarios combining green fiscal policy and low growth are more conducive to promoting the energy transition, aligned with post-growth approaches. |
| Keywords: | Ecological macroeconomics; demand-led growth; energy transition; mission-oriented policy Jel Classification:Q57; E11; E12; E62; P28 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:922 |
| By: | Ozili, Peterson K |
| Abstract: | This article presents new theories of sustainable development. The need for new theories of sustainable development arises from the need to explain the attitudes and various dispositions towards the sustainable development agenda. Five theories of sustainable development are presented, namely, the extinction avoidance theory of sustainable development, the collective stewardship theory of sustainable development, the rogue agent theory of sustainable development, the divine intervention and providence theory of sustainable development, and the resource-resilient world theory of sustainable development. These theories articulate the unspoken philosophy or paradigms regarding the need for sustainable development and who should be responsible for achieving sustainable development. These unspoken philosophy or paradigms have the power to move people to take action towards sustainable development or to do nothing about it, or to oppose the sustainable development agenda. Scholars, policy makers and researchers will find these theories useful in their work in sustainable development. |
| Keywords: | sustainable development, theories of sustainable development, sustainable development goal, extinction avoidance theory, collective stewardship theory, rogue agent theory, divine intervention and providence theory, resource-resilient world theory, SDGs |
| JEL: | Q00 Q01 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123287 |
| By: | Milovanska-Farrington, Stefani (The University of Tampa); Mateer, Dirk (University of Texas at Austin) |
| Abstract: | This paper builds upon the work of McCaffrey (2016) who explores how economics can enhance entrepreneurship education. We extended the work of McCaffrey in two distinct ways. First, we emphasize the economic understanding every private enterprise needs to be successful. Second, we developed teaching guides which feature three successful Gen Z entrepreneurs – Max Hayden, Mikaila Ulmer, and Alexandr Wang. Their stories embody business acumen and the entrepreneurial ability necessary to succeed in a rapidly changing world. The lessons build upon the work of Milovanska-Farrington et al. (2023) and DeWind et al. (2023) who illustrate foundation-level economic concepts in an engaging way that resonates with Gen Z students. |
| Keywords: | entrepreneurs, principles of economics, private enterprise, Gen Z, Max Hayden, Mikaila Ulmer, Alexandr Wang |
| JEL: | A20 A21 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17638 |
| By: | Ozili, Peterson K |
| Abstract: | In this article, I propose the vulnerable group theory of financial inclusion. The theory begins with the premise that vulnerable people are often left behind in society, they suffer the most from economic hardship and crises, and they are at risk of being excluded from the formal financial sector. The theory therefore proposes that financial inclusion efforts should be targeted at all vulnerable people and groups in society. Bringing vulnerable people into the formal financial sector will give them access to available formal financial services, which they can use to earn income and acquire assets that they can use to take themselves out of the vulnerability bracket. The study also identifies the vulnerable groups in need of financial inclusion and proposes a vulnerability grid. Several avenues to expand the theory are suggested. |
| Keywords: | Access to finance; development; financial exclusion; theory; financial inclusion; unbanked adults; vulnerable groups. |
| JEL: | G01 Q01 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123291 |