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on Post Keynesian Economics |
| By: | Hagen M. Krämer (Karlsruhe University of Applied Sciences) |
| Abstract: | Kurt W. Rothschild, an Austrian economist known for his multiparadigmatic and inter¬discipli-nary approach, made significant contributions to Keynesian and post†Keynesian economic theory. Born in 1914 in Vienna, his work encompassed price theory, labor market economics, growth and distribution, power and ethics in economics, and economic policy. His incisive critique of neoclassical theories, advocacy for state intervention, and commitment to methodological pluralism distinguish his work as a vital contribution to economic thought. Since income distribution is a central theme in Rothschild’s research, this paper examines his contributions to post†Keynesian distribution theory. Following a brief overview of his life, academic formation, and the historical context that shaped his thinking, the paper explores his theoretical innovations, emphasizing his rejection of mono†causal explanations in favor of an approach that integrates economic, political, and social dynamics. Rothschild’s perspective on income distribution as a product of complex interactions between markets, institutions, power structures, and ongoing conflict is a defining feature of his work. The paper concludes by assessing the continued relevance of his insights for contemporary economic research. His legacy remains a guiding framework for scholars seeking a more holistic and dynamic understanding of income distribution and its policy implications. |
| Keywords: | Kurt Rothschild, Multiparadigmatic Approach, Post†Keynesian Theory, Bargaining Power, Labor Market Economics, Distribution Theory |
| JEL: | E24 D31 J31 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:imk:fmmpap:118-2025 |
| By: | Federica Arena |
| Abstract: | Since the seminal work ofBaccaro and Pontusson(2016), the Comparative Political Econ- omy (CPE) literature has increasingly reintegrated aggregate demand as a central determinant of growth trajectories in advanced economies. This paper contributes to this burgeoning Growth Model (GM) research agenda by applying the Supermultiplier decomposition to analyze Italy’s economic growth from 1960 to 2022. Our approach provides a granular examination of the demand components driving growth, distinguishing between autonomous and induced expenditures, a critical separation often overlooked in traditional decompositions. By situating our empirical findings within the institutional and political context of each identified sub-period, we offer a comprehensive analysis that bridges post-Keynesian economic theory with the CPE focus on the †politics of growth.†|
| Keywords: | Italy’s Economic Growth, Demand-Led Growth, Post-Keynesian Economics, Comparative Political Economy (CPE), Growth Models. Jel Classification: E12, O52, B50, P16 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:930 |
| By: | Robert A. Blecker (Professor Emeritus of Economics, American University) |
| Abstract: | The revival of economic nationalism poses a challenge to neoclassical orthodoxy, which claims that liberalized international trade is (subject to a few recognized exceptions) inherently cooperative and mutually beneficial. Post-Keynesian open economy models demonstrate that international trade relations can be conflictive under certain conditions. In the short run, changes in either cost or quality competitiveness can shift output, growth, and employment from some countries to others. In the medium run, positive feedbacks from growth of exports to growth of labor productivity create self-reinforcing gains in external competitiveness for some countries that may come at the expense of losses for others. In the long run, changes in the real exchange rate or terms of trade can favor some countries’ growth at the expense of others’. The post-Keynesian approach also implies that coordinated fiscal expansions can mitigate these conflicts and foster more cooperative outcomes, while industrial policies are generally superior to protectionism. |
| Keywords: | Economic nationalism, export-led cumulative causation, international conflict, real exchange rate, trade balance |
| JEL: | F43 E12 O41 B52 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:imk:fmmpap:119-2025 |
| By: | Jakob Kapeller (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria; Institute for Socio-Economics, University of Duisburg-Essen, Germany); Franz Scharnreitner (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria) |
| Abstract: | This paper revisits paradigmatic differences in economics with a focus on input-output modeling. We show that such differences represent deep divides in economic theorizing and impact strongly on the magnitude and signs of expected effects. At the same time estimates from input-output models are crucial for understanding the expected economic impacts of additional investment undertaken in the course of a socio-ecological transformation aiming to render social provisioning processes carbonneutral. Taking the transformation of the German housing sector as a practical example this paper illustrates the divergence between typical results obtained and explores two central axiomatic variations of a neoclassical approach - the introduction of CES-functions as well as labor slack - that promise to explore some middle ground in between established approaches. Thereby we hope to better illuminate how different axiomatic setups imprint on estimates of the economic effects of ecologically motivated transformation efforts to provide applied researchers with better guidance when it comes to choosing foundational model assumptions. |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:ico:wpaper:169 |
| By: | Jean Arrous |
| Abstract: | Largely overlooked due to the division of our discipline into micro- and macroeconomics, Wassily Leontief’s input-output analysis is not only a formal theory but also a research strategy. As formal theory, it describes economic activity based on that of the different industries, thereby leading to the calculation of labour-value, price determination and GDP. As research strategy, it is applied to ecological and energy transitions leading to the calculation of pollution-value and energy-value. |
| Keywords: | Leontief, input–output analysis, Leontief technology, technological matrix, Leontief inverse matrix, production possibility frontier, labor-value, pollution-value, energy-value, equilibrium prices, augmented Leontief matrix, profit margin and structural profit margin, input–output table, distribution of national income, Perron–Frobenius theorems, factor-price frontier, ecological transition, energy transition. |
| JEL: | A23 C67 D33 D57 E01 E17 E23 J21 L16 L23 O13 P18 P28 Q4 Q5 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ulp:sbbeta:2025-34 |
| By: | J. Atsu Amegashie |
| Abstract: | According to the economics Nobel laureate, Kenneth Arrow, “… capitalism is a flawed system. It probably has the same virtues as Churchill attributed to democracy: It’s the worst system except for any other.” Thus, capitalism is a necessary evil, but it is not inherently bad. I argue that most people have a capitalist mindset but do not have the power to be capitalists. There are different intensities of capitalist mindsets and constraints on the power of capitalists. Thus, there are different types of capitalism and, as a result, different socio-economic outcomes. I discuss the relationship between capitalism and economics and conclude that the perception that economists are cheerleaders of neoliberalism and capitalism may be wrong. |
| Keywords: | capitalism, economists, free market, power, regulation, values |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12177 |
| By: | Maydell, Richard; Firth, John |
| JEL: | O11 E24 I25 O33 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc25:325460 |