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on Post Keynesian Economics |
| By: | Mark Setterfield (Department of Economics, New School For Social Research, USA) |
| Abstract: | Motivated by extensions to the neo-Goodwinian framework pioneered by Lance Taylor (and others), this paper investigates the two-way interaction between growth and distribution in a `Marx-Keynes-Schumpeter' (MKS) system in which the principle of effective demand, distributive conflict, and technical change are the (interacting) drivers of capitalist macrodynamics. A particular concern is with the effects of distribution on both the actual (demand-led) and natural rates of growth, and the reconciliation of these growth rates in a steady-state growth configuration consistent with a constant but indeterminate rate of employment. A baseline model is developed in which the medium-run equilibrium rate of growth is profit-led by hypothesis, but the steady-state long-term rate of growth is nevertheless wage-led. This baseline result is then shown to be generally robust to the introduction of different sources of technical change and both the demand- and supply-side effects of human capacities accumulation (whether through unpaid domestic production or expenditure on marketed services). The paper ends with suggestions for further research. These include extending the model to incorporate interactions between the economy and the environment in the manner suggested by Lance Taylor in his later work. |
| Keywords: | Wage-led growth, profit-led growth, natural rate of growth, technical change, human capacities |
| JEL: | B54 E11 E12 E24 E25 O41 O44 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:new:wpaper:2502 |
| By: | Meijers, Huub (RS: GSBE MORSE, RS: GSBE other - not theme-related research, Macro, International & Labour Economics); Muysken, Joan (RS: GSBE other - not theme-related research, Macro, International & Labour Economics, RS: GSBE - MACIMIDE); Piccillo, Giulia (RS: GSBE UM-BIC, RS: GSBE MORSE, RS: GSBE Studio Europa Maastricht, Macro, International & Labour Economics) |
| Abstract: | Expectations are usually introduced in macroeconomic stock-flow consistent models (SFC-models from hereon) in an ad hoc way, without much motivation. Moreover, these are usually very simple forms of expectations, and certainly not some form of rational expectations. The implicit assumption is that expectations do not matter very much in these models. However, the way expectations are modelled in SFC-models is very important for two reasons. The first reason is that expectations are very important in understanding the way the economy reacts to a shock, since the stability of the economy is dependent on the nature of expectations. We show for instance that the more backward-looking expectations are, the more stable the economy tends to become. The second reason is that expectations themselves can also be a source of shocks. We show how under certain circumstances optimism or pessimism in expectations can lead to self-fulfilling prophesies. To illustrate the impact of expectations on the stability of an economy we use a simple model, based on the models in Godley & Lavoie, 2007. The model includes a financial sector and government, since we are convinced that the notion of a monetary economy is crucial to understand the impact of expectations on an economy. We also introduce a foreign sector in a very simple way to allow for a better understanding of the multiplier impact of shocks and of foreign reserves on the economy. First we analyse the stationary state solution and analyse its properties. We show that this model is only stable when either the tax rate or government debt is not too high. We also point out the self-fulfilling properties of optimism and pessimism in expectations in this model. Next to that, we show that under “perfect foresight” the model becomes less stable – more restrictions on taxes and government debt are necessary to guarantee stability of the model. However, under naïve expectations the model becomes more stable – there are less restrictions necessary to guarantee stability of the model (due to path dependency). Finally, we introduce the notion of fundamentalist expectations and show how these affect the stability of the model in an intermediate way. In order to introduce adaptive expectations, we conclude our model with some simulation results – analytical solutions cannot be found. We show how adaptive expectations also require an intermediate reaction of fiscal policy to keep the economy stable. |
| JEL: | B50 E60 F47 |
| Date: | 2023–06–23 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2023024 |
| By: | Giovanni Scarano |
| Abstract: | The paper discusses the possible presence and role of the concept of equilibrium in the formulations of the ‘classical economists’ and Marx, also examining the characteristics of the ‘long-period positions’ attributed to these authors. The paper argues that the ‘classical economists’ and Marx only considered all real economic phenomena as momentary results of an unstoppable historical and dynamic process, characterised by continuous conflicts and recompositions. In this context, so-called long-period positions could play a role in determining the dynamics of adjustment without ever being the point of arrival or stasis. This means that, for these authors, long-period positions could be drivers of the gravitation of economic variables, but not necessarily final resting points. It is also argued that the concern to determine the long-period positions of the prices of production did not have a central place in Marx’s analysis. |
| Keywords: | Equilibrium, Dynamics, Attractor, Long-Period Positions, Uniform Rate of Profit, Classical economists |
| JEL: | B12 B14 B51 D50 E32 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:rtr:wpaper:0285 |
| By: | Gregory Stoller (Boston University, Boston, MA, USA) |
| Abstract: | Students at all academic levels have a rare opportunity to integrate and synthesize what they learn in the classroom into an applied real-world environment by using the case construct in case competitions. Since the majority of these competitions are ungraded, feedback from mentors, instructors, and students on both sides of the figurative desk can be extremely candid without causing awkward situations, making it more constructive, changing the atmosphere in a traditional classroom or the students' grade point average, or having an effect on teaching evaluations. The end product is frequently a rigorously analytical paper or PowerPoint presentation where students can deftly illustrate their understanding of the material, persuasively argue their recommendations, participate in insightful Q&A sessions, and adhere to best practices for teamwork. The purpose of this research is to investigate how undergraduate and graduate academic programs advise and coach case competition teams. The two most important variables that determine a case competition rank are "Effort Invested as a Team" and "Mentor Hours." |
| Keywords: | case competitions, mentorship methods, teamwork, coaching strategies |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0460 |
| By: | Hadiza Wada (Kaduna State University, Nigeria) |
| Abstract: | Artificial intelligence (AI) holds potential and challenges for various professional applications, including education. The impact of AI on educational institutions is multifaceted, encompassing multiple aspects of teaching, learning, and administrative functions. This study examines AI’s potential as a complementary tool in education and its challenges within a learning environment. It also explores potential negative consequences, using earlier models and experiences from the popular adoption and use of social media in academic environments. A survey of 100 undergraduate students was conducted to learn directly from their practical experiences with AI. Findings indicate that they readily explore its uses, with 65% falling under the frequent, to almost always use in educational or learning situations. Additionally, 13% indicate a self-assessed proficiency level of ‘experts’ on AI, while 26% indicate that they are proficient (skillful) users. |
| Keywords: | Artificial intelligence in education, AI use in universities, Chat GPT |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0473 |
| By: | Prince P. Asaloko (Yaoundé, Cameroon); Simplice A. Asongu (Johannesburg, South Africa); Cédrick M. Kalemasi (Yaoundé, Cameroon); Thomas G. Niyonzima (Yaoundé, Cameroon) |
| Abstract: | Purpose – The role of renewable energy is increasingly seen as a means of promoting women's economic participation and improving their health by rebalancing climate degradation. Design/methodology/approach – To shed light on this relationship, we assess the capacity of renewable energy to reduce the negative impact of climate vulnerability on women's economic empowerment and health, using the GMM estimator for 36 African countries over the period 1990-2021. Findings – The empirical results show that: (i) climate vulnerability reduces economic empowerment and (ii) climate vulnerability increases child mortality. These results are mitigated by the use of renewable energy. (iii) The use of renewable energy mitigates the negative impact of climate vulnerability on women's economic empowerment. (iv) Renewable energy use also reduces the pressure of climate vulnerability on child mortality. In addition, we take into account regional heterogeneities and find distinct effects. Our results remain stable after further robustness testing. Originality/value – Renewable energy thresholds are provided at which climate vulnerability no longer reduces women’s socio-economic wellbeing. |
| Keywords: | Renewable energy, climate vulnerability, women's economic empowerment, women's health, infant mortality and Africa |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:aak:wpaper:24/016 |