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on Post Keynesian Economics |
| By: | Kapeller, Jakob; Steinerberger, Stefan |
| Abstract: | Power law distributions are ubiquitous in socioeconomic contexts. While their general properties are well understood, it is often less clear why they regularly appear in empirical data. What are the generative mechanisms leading to power laws, how do they arise in the real world? This paper aims to partly fill this gap by discussing two candidate mechanisms that appear especially relevant for understanding the emergence of power laws in socioeconomic contexts. We identify core formal properties and potential real-world equivalents of these mechanisms. In addition, we explore the relation of power laws to indirectly related concepts relevant in heterodox economics, like path dependence, cumulative effects, power asymmetries or non-ergodicity. |
| Keywords: | power law distributions, inequality, generative mechanisms, wealth inequality, firm size |
| JEL: | B52 D00 D30 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:315194 |
| By: | Marcello Nieddu (University of Genova); Marco Raberto (University of Genova); Andrea Teglio (Ca' Foscari University of Venice) |
| Abstract: | This study develops a family of models to evaluate how agent heterogeneity and interactions shape macroeconomic dynamics, challenging the adequacy of representative agent frameworks. Building on dynamic multi-sector models populated by boundedly rational firms and households, we conduct both analytical and computational comparisons between aggregated and disaggregated representations across equilibrium and disequilibrium regimes. We identify precise conditions –individual and relational indistinguishability– under which representative constructs successfully replicate multi-agent dynamics, and we demonstrate their failure in constrained regimes where rationing-induced network shocks generate irreversible structural changes. The analysis reveals that aggregation errors escalate with heterogeneity, asymmetric interactions, and shock-driven reconfigurations of economic networks, critically undermining policy inferences. The proposed family of multi-agent models, grounded in minimal realistic principles, allows us to systematically quantify the errors derived by treating the response to exogenous shocks as a dynamic sequence of equilibria, rather than explicitly accounting for out-of-equilibrium dynamics. These insights bridge Keynesian coordination failures with modern complexity economics, offering methodological rigor to address Blanchard's critique on the relevance of interactions for macroeconomic modeling. |
| Keywords: | macroeconomics, aggregation, interaction, multi-agent, multi-sector |
| JEL: | E00 E12 C63 C67 D85 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ven:wpaper:2025:04 |
| By: | Sandra Eickmeier |
| Abstract: | Economists recently have pointed to a critical disconnect between economic value and ethical values as a key societal issue. Using a survey of 2, 000 German households this paper reveals a misalignment between earnings and the values attributed to professions. Households prioritize professions addressing basic needs and benefiting society and nature over those offering personal utility, high remuneration, or economic growth, highlighting the importance of ethical considerations. This paper argues that values require a solid foundation rather than mere discussion or imposition. Linking values (and value) to awareness, it shows that more aware (along with more educated and informed) households favor professions supporting ethical values such as societal and environmental contributions, creativity, and beauty. Lastly, 60% of households support shifting societal values toward shared responsibility, though responses vary across households. |
| Keywords: | economic value, ethical values, earnings, prices, mindset, awareness, consciousness, surveys, direction of growth, quality of growth |
| JEL: | D9 E3 E7 I3 J3 Z1 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-14 |
| By: | Berker, Christian |
| Abstract: | After the "institutional turn" economists are now in a lively debate about the role of institutions for growth as well as the sources of institutional change. This paper discusses institutional change in Prussia in the 17th and 18th century. It shows the importance of the geopolitical context for understanding institutional change. Using three political events, the paper combines geographical, institutional and political arguments and highlights how context-sensitive institutional change can be. Prussia’s institutional change was heavily influenced by its many direct neighbours and the political necessities of that time. Therefore, time and space (location) are highly relevant for institutional change. |
| Date: | 2025–03–18 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153630 |
| By: | Kamath, Ram Mohan Sasikumar |
| Abstract: | Given the adverse efects of climate change (such as drought and fooding, damage to ecosystems and infrastructure, depletion of resources, deterioration of human health), society needs to transition to using sustainable systems of production and consumption. Regions and countries increasingly view the creation of green-clusters that can nurture green-innovation and spur new green-industries, as a solution to this challenge. In fact, the formation of green-clusters, and the greening of existing industrial clusters has been identifed as an important tool to achieving the GHG-reduction goals of the European Green Deal. However, Green-clusters need not be intrinsically sustainable. Especially when green-clusters are derived from existing clusters, they will inherit unsustainable processes. This means before these clusters can help regions and nations transition, they must themselves transition to greener products and production techniques. The green-restructuring of clusters has become a key area of interest to Evolutionary Economic Geography; and to the emerging feld of Geography of Transitions, which bridges Evolutionary Economic Geography and Sustainability-Transition Studies. However, owing to extant cluster-evolution frameworks' and cluster-evolution studies' inability to settle still ongoing discussions regarding the development of clusters, scholarship risks falling behind policymakers. This thesis contributes to the resolution of some of these discussions. Most importantly, we address the debate regarding the dynamics behind the process of clusters' green-restructuring. We then address debates regarding the role of place-based structures in shaping cluster-evolution, the role of agency in shaping cluster-evolution, the role of proximitydimensions in shaping the greening of clusters, and the multiscalar nature of cluster-evolution. |
| Keywords: | Climate Change, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Sustainability |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:iamost:356433 |