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on Post Keynesian Economics |
| By: | Engelbert Stockhammer; Ben Tippet; Karsten Kohler |
| Abstract: | Since the Global Financial Crisis, there is a growing literature on the Comparative Political Economy (CPE) of housing, but it has not systematically incorporated boom-bust cycles in house prices. This matters as cycles in house prices are large relative to their trend and the intensity of house price cycles differs across countries. Bringing Minskyan and behavioural theories of endogenous financial cycles to CPE, this paper argues that the intensity of house price booms and busts is shaped by institutions that encourage speculative behaviour. In an empirical analysis for 23 OECD countries, the paper explores the role of speculation-encouraging institutions, credit permissiveness, welfare state regimes and macroeconomic policy as potential factors. We find that low capital gains taxes and strong landlord-protection policies that may push households onto the property ladder are linked to more intense house price booms and busts. |
| Keywords: | Comparative Political Economy, growth models, financial cycles, housing, house price cycles |
| JEL: | E32 N10 P50 R30 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2516 |
| By: | Mark Setterfield (Department of Economics, New School For Social Research, USA) |
| Abstract: | Neoliberalism can be characterized as an exhausted but entrenched growth regime that requires fundamental institutional transformation to create the conditions for inclusive and sustainable growth. But will existing political leadership rise to the challenge of implementing this transition? Experience during and immediately after the COVID- 19 pandemic does not give cause for optimism. First, the pandemic itself could have served as a timely reminder of the need for socialized responses to shared sources of uncertainty. Second, the post-pandemic 'inflation' could have served as a timely reminder of the importance of distributive justice as a component of macroeconomic performance. The argument advanced is that both of these opportunities were missed, demonstrating a paucity of vision and leadership among center-left parties at a critical juncture for liberal democracy. |
| Keywords: | COVID pandemic, inflation, Taylor moment, Authoritarian Neoliberalism, Social Capitalism |
| JEL: | B52 E02 E31 E66 P16 P51 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:new:wpaper:2510 |
| By: | Sergio Cesaratto |
| Abstract: | Piero Sraffa, Pierangelo Garegnani, and Luigi Pasinetti undermined the analytical foundations of marginalist price and distribution theories and recovered the surplus approach proper to classical economists. This paper studies the comparative usefulness of, respectively, the marginalist and the modern surplus approaches for the interpretation of pre-capitalistic economies and for the theory of institutions, also in the light of Polanyi’s contribution. With this in mind, the paper examines some recent mainstream contributions concerning the origin of inequality and related institutions. Challenging, they adopt materialist explanations of the origin of inequality and institutions drawn from archaeological studies. On the critical side, these studies reject with poor arguments the classical surplus approach. Moreover, they employ marginalist concepts, in particular the relative scarcity of production factors, to explain the onset of inequality. Those concepts are of a spurious nature, especially once applied to ancient economies. In this respect, the paper refers both to Marx’s and Polanyi’s emphasis on the role of ‘embedded’ rather than market relations in ancient societies, and to Sraffa’s criticism of ‘marginism’ (scarce historical realism) to the marginalist curves related to production (Rosselli and Trabucchi 2019). |
| Keywords: | Origins of inequality, Surplus approach, Marginalism, Samuel Bowles, Sraffa’s Marginism Jel Classification: A12, B51, B52, N01, Z13 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:926 |
| By: | Krystian Bua; Giovanni Dosi; Maria Enrica Virgillito |
| Abstract: | This paper studies the finance-growth nexus in historical perspective. We employ a panel data model with interactive fixed effects and time-varying coefficients for a sample of advanced economies since the late 19th century. The model considers flexible specifications of heterogeneity and accounts for global common shocks that have likely shaped the finance-growth nexus over time. We present three main sets of results. First, our empirical analysis shows that the relationship between finance and growth is time-varying. Using our benchmark model, we estimate the time-varying slope coefficient of financial development and show that the finance-growth nexus has secularly evolved, thus challenging the mainstream assumption of a uniform association over time. Second, by accounting for global common shocks and their heterogeneous impact, we challenge the dominant narrative suggesting a consistently positive contemporaneous relationship between financial development and economic growth. Third, differences emerge when we distinguish between Schumpeterian finance (bank credit growth) and a more speculative type of finance (stock market growth). While both exhibit time-varying behaviors, the empirical evidence points to a substantially stronger and positive association between bank credit growth and economic growth, as opposed to stock markets, which tend to display a weaker or even negative relationship. Our results remain robust when we account for a range of alternative specifications and potential sources of variation. |
| Keywords: | Finance-growth nexus, Financial development, Economic growth, Semiparametric methods, Time-varying estimates, Long-panel |
| Date: | 2025–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2025/24 |
| By: | Oliver Brette (INSA, University of Lyon; TRIANGLE, UMR 5206, CNRS); Nathalie Lazaric (GREDEG, CNRS, Université Côte d'Azur, France; University of Gothenburg, Sweden) |
| Abstract: | In the recent decades, circular economy (CE) has attracted increasing interest from public authorities, non-profit organizations, businesses and, more recently, scholars who have proposed a variety of approaches to the concept. This article aims to lay the foundations for an original framework for analyzing CE from the perspective of the evolutionary institutionalism pioneered by Thorstein Veblen. Evolutionary institutionalism is rooted in a systemic and multi-layered ontology. It employs the Darwinian triplet of variation, selection, and retention/replication (VSR) as a fruitful framework for analyzing evolving population systems. Building on this generalized Darwinism framework, the article argues that the transition from a linear economy to a (more) circular economy should be conceived primarily as a co-evolution between business firms and industry architectures. From this perspective, it suggests centering the analysis of the VSR processes of the CE transition on the notion of business model, defined as a system of organizational routines that structures interactions between the members of the firm and the social entities of its industrial environment. |
| Keywords: | circular economy, business model, evolutionary institutionalism, generalized Darwinism |
| JEL: | B52 L20 Q57 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-28 |