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on Post Keynesian Economics |
| By: | Heise, Arne |
| Abstract: | Keynes's Principle of Effective Demand is widely recognized not only as a major theoretical innovation but also as one of the core concepts uniting various post-Keynesian strands. However, Keynes's own treatment of the Principle of Effective Demand - known as the Z/D model and identified by himself as central to his attempt to fundamentally refute Say's Law - has been ignored or even outright rejected by many post-Keynesians on the grounds that it remains too deeply rooted in mainstream economics. This paper addresses such criticism by emphasizing that any evaluation of the Z/D model must take into account the paradigmatic shift Keynes sought to initiate. |
| Keywords: | Keynes, Z/D model, principle of effective demand |
| JEL: | B50 E12 E24 J23 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cessdp:321891 |
| By: | Gallo, Ettore; Zamparelli, Luca |
| Abstract: | This paper presents a demand-led growth model augmented with induced technical change to address the two Harrod's problems in growth theory. Building on recent developments in the supermultiplier literature, we investigate how both Harrodian instability problems can be resolved through two complementary mechanisms: (1) autonomous, non-capacity-creating demand components growing at an exogenous rate, and (2) endogenous technical change responsive to income distribution. While existing supermultiplier models show how autonomous expenditures stabilize demand-led growth, we integrate induced technical change into the determination of the natural rate of growth. The model achieves twin stabilization through the interplay of two stabilizing mechanisms: the supermultiplier and induced technical change. On the one hand, demand shocks are absorbed via adjustments in the investment share, allowing capital accumulation to align with the exogenously determined growth rate of autonomous expenditures. On the other hand, labor market imbalances trigger productivity adjustments that reconcile natural and warranted growth through changes in the wage share. This dual adjustment mechanism allows the system to sustain normal capacity utilization and stable employment rates, while preserving demand-led growth outcomes. The results suggest that incorporating induced technical change enhances the supermultiplier's capacity to address both of Harrod's instability problems within a unified demand-led framework. |
| Keywords: | Harrodian instability; Supermultiplier model; Induced technical change; Demand-led growth |
| JEL: | E12 E21 O33 O41 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125533 |
| By: | Biagio Bossone |
| Abstract: | Drawing on Keynes’s concept of Marginal Efficiency of Capital (MEC), this article introduces the Marginal Efficiency of Labor (MEL) as an expectations-based valuation metric for understanding labor demand under uncertainty. MEL is defined as the internal rate of return on labor investment, reflecting firms’ expectations about the realizable monetary value of labor’s output relative to its full cost. Unlike the marginal product of labor (MPL), MEL treats labor as an intertemporal asset and incorporates demand-side constraints via an expected realizability factor, thereby endogenizing firms’ hiring decisions to future sales prospects. To make MEL operational, the article derives a Tobin-style q for labor—a forward-looking ratio that expresses the profitability of hiring labor relative to its cost, mirroring the investment logic used for capital. The article formally develops MEL, compares it with classical labor demand, and shows how it explains persistent underemployment equilibria even under real wage flexibility. MEL offers a testable empirical agenda and a structural foundation for modeling hiring behavior in modern Keynesian macroeconomics. |
| Keywords: | Effective demand; Labor supply and demand; Marginal product of capital and labor; Realizability factor; Tobin’s q for labor |
| JEL: | D21 E22 E24 E32 J23 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2518 |
| By: | Alorro, Mary Franchesca Santillan; Cristobal, Ben Hur M.; Lim, Elaine Rose B.; Padua, Gerald F.; Del Rosario, Daracel C.; Pangan, Sheba Erech D.; Lopez, Dashielle July A.; Mendoza, Karl Patrick Regala (Polytechnic University of the Philippines) |
| Abstract: | Mainstream portrayals of Tondo, Manila, in Philippine media often depict the district as a site of danger, disorder, and decay, reducing a vibrant urban community to a symbol of poverty and criminality. This article interrogates the disjuncture between these dominant representations and the lived experiences of Tondo residents. Drawing on discourse analysis of documentaries, news reports, and vlogs, alongside in-depth interviews with 15 residents, the study reveals how media framings selectively amplify hardship while silencing everyday resilience, solidarity, and care. Based on Stuart Hall’s encoding/decoding model, Vygotsky’s social constructionism, and Bourdieu’s theory of symbolic capital, the analysis highlights how residents actively challenge and reshape the stories told about them. The article advances the concept of representational justice as both an ethical imperative and an analytical lens, emphasizing that representation is not merely about visibility but about narrative power. The findings point to the need for more participatory, dignity-based storytelling about urban poverty in the Global South and greater accountability to the communities whose lives are often misrepresented. |
| Date: | 2025–07–10 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:36dzw_v1 |