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on Post Keynesian Economics |
| By: | Boughabi, Houssam |
| Abstract: | This paper develops a Keynesian stochastic framework to reassess the natural rate hypothesis in the context of the Sri Lankan economy. By embedding fractional Brownian motion to capture persistent inflationary shocks and incorporating nonlinear interactions between unemployment dynamics and aggregate demand, the model contrasts expansionary Keynesian policies with the monetarist view of structural unemployment. Empirically, the estimated income series indicates that targeted income interventions can systematically reduce unemployment over time, illustrating the capacity of demand-side policies to stabilize labor markets. The results suggest that fiscal and monetary measures, when sustained and coordinated, not only mitigate hysteresis effects but can also shift unemployment away from the so-called natural level, reaffirming the Keynesian insight that active policy can shape real economic outcomes even in the presence of structural frictions. This study contributes both theoretically to macroeconomic stabilization debates and practically to policy design in economies facing recurrent shocks and structural vulnerabilities. |
| Keywords: | Keynesian macroeconomics, natural rate hypothesis, unemployment dynamics, income stabilization, Sri Lanka |
| JEL: | E24 E32 E62 O53 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cessdp:333943 |
| By: | Nicolás Cachanosky; Emilio Ocampo |
| Abstract: | Recent inflationary episodes in advanced economies have reignited interest in Conflict Theories of Inflation (CTI), which attribute price level increases to conflicts over income distribution rather than monetary factors. These heterodox perspectives, rooted in Marxist and post-Keynesian traditions, emphasize the roles of labor-capital tensions, corporate pricing strategies, and broader sociological struggles. This brief note evaluates the theoretical foundations of CTI and examines their policy implications. It highlights how measures inspired by CTI historically result in higher inflation and lower economic growth. The analysis concludes with a critique of CTI’s reductionist framing and a call for policies grounded in a balanced understanding of monetary and conflict dynamics. |
| Keywords: | Conflict, inflation |
| JEL: | E31 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:cem:doctra:887 |
| By: | Marcel Boyer; Molivann Panot |
| Abstract: | This article examines the evolution of inequality since 1920, highlighting the need to rebalance research and public debate toward the forms of inequality that matter most for social welfare. While income and wealth disparities have received overwhelming attention in academia and public policy circles, consumption inequality, a more relevant indicator, has declined over the last two and a half decades. The main characteristics of developments in income and wealth inequality over time (since 1920) are presented: the share of the top 1% of earners followed a downward trend until the 1970-79 decade, and an upward trend thereafter, returning to levels comparable to those of the 1920s. The share of the top 10% of earners followed a similar movement. Despite the prominence of distributional issues in contemporary debates, comprehensive measures of consumption inequality remain underdeveloped. Yet the need for such metrics is urgent. Progress over the past 25 years—led in part by initiatives at Statistics Canada—offers a promising foundation for more accurate and policy-relevant assessments of economic well-being. One important factor has been the development of social transfers in kind ( STiK), which add significant resources and benefits to households in the lowest income quintile to a greater extent than to those in the highest quintile. |
| Date: | 2025–12–10 |
| URL: | https://d.repec.org/n?u=RePEc:cir:cirwor:2025s-34 |
| By: | Fuad, Syed; Farmer, Michael C. |
| Keywords: | Political Economy, Public Economics, Institutional and Behavioral Economics |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343965 |
| By: | Krpan, Dario; Basso, Frédéric; Hickel, Jason; Kallis, Giorgos |
| Abstract: | Background Degrowth argues that high-income economies should reduce harmful production and prioritise wellbeing. Although degrowth is increasingly seen as essential to tackling climate change, the extent of public support for this economic approach remains unclear. In this study, we aimed to investigate public support for the full degrowth proposal in the UK and USA—high-income, growth-oriented nations with substantial climate responsibility and political resistance to degrowth. Our objectives were to distinguish support for the proposal itself from perceptions of the degrowth label and to examine the role of participants’ individual differences. Methods Our objectives were examined in two studies, Study 1 and Study 2, administered online via Qualtrics. For both studies, participants in the USA and UK were recruited via Prolific (an online pool of participants) to be representative of the respective populations in age, gender, and ethnicity. Participants had to pass several attention and quality checks to qualify for analyses. Study 1 used a within-subjects design whereby all participants rated their support for the full degrowth proposal (summarising the key ideas, practices, and goals of degrowth) without any label and for eight economic approaches presented by label only (ie, degrowth, ecomodernism, ecosocialism, green capitalism, green growth, green market economy, post growth, and wellbeing economy) on a 7-point scale (from 1 [strongly oppose] to 7 [strongly support]). Study 2 used a between-subjects design whereby participants were randomly assigned using the randomiser function in Qualtrics, to one of seven economic approaches (the full degrowth proposal; a label referring to either degrowth, ecosocialism, or wellbeing economy without a description; or a combination of the full degrowth proposal with one of these three labels), for which they rated their support on the same 7-point scale. Mean support for each approach was classified on the basis of 95% CIs, meaning that similar means could be classified differently across studies and samples due to variations in these intervals. To identify key predictors of support, we also measured 74 individual differences, including various psychological and socioeconomic characteristics, and analysed them using an approach combining widely used machine learning models with multiple linear regression analyses; a variable was considered a key predictor only if it ranked among the most predictive in the machine learning models and was also statistically significant in the regression analyses. Findings Data were collected from study participants between Oct 10, 2023, and Dec 1, 2023. 6228 participants from the UK and USA were initially recruited, of whom 5454 were eligible for analyses. When presented without a label, in the UK, the full degrowth proposal received support from 736 (81%) of 910 participants in Study 1 and 210 (82%) of 255 in Study 2. In the USA, it received support from 683 (73%) of 941 participants in Study 1 and 187 (72%) of 260 in Study 2. On the 7-point scale, in Study 1, support was 5⋅37 in the UK and 5⋅07 in the USA (both corresponding to somewhat support), whereas, in Study 2, support was 5⋅34 in the UK (corresponding to somewhat support to support) and 4⋅97 in the USA (corresponding to somewhat support). When degrowth was presented as a label alone, it received support from 237 (26%) of 910 participants in Study 1 and 50 (20%) of 250 participants in Study 2 in the UK and 266 (28%) of 941 participants in Study 1 and 34 (13%) of 270 participants in Study 2 in the USA. In Study 2, the degrowth label accompanied by the full proposal was supported by 184 (74%) of 248 participants in the UK and 177 (68%) of 260 participants in the USA. In addition, 188 (75%) of 250 participants in the UK and 176 (67%) of 264 participants in the USA supported the full degrowth proposal plus ecosocialism label, and 209 (84%) of 250 participants in the UK and 179 (72%) of 249 participants in the USA supported the full degrowth proposal plus wellbeing economy label. Key individual difference predictors of support were people’s drive to address global challenges and belief in ecosystem integrity. Interpretation Contrary to concerns from politicians and commentators that degrowth is broadly unpopular, the core degrowth proposal received substantial support from UK and US participants in this study, regardless of whether the full proposal was accompanied by the degrowth label. Therefore, negative perceptions of the degrowth label appear surmountable once people learn about the main principles behind degrowth. Fostering proactive engagement with global challenges and awareness of nature’s fragility could further enhance the public’s acceptance of degrowth. |
| Keywords: | REF fund |
| JEL: | J1 |
| Date: | 2025–11–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129300 |
| By: | Olli-Pekka Kuusela; Anupam Khajuria |
| Abstract: | Countries in the Global South face mounting economic, social, and environmental pressures due to rapid urbanization and inadequate waste and material management systems. At the same time, the global transition to clean energy has intensified competition for critical materials, raising the stakes for resource-efficient development. This paper examines how circular economy (CE) strategies can deliver both environmental and development benefits by creating jobs, improving resource productivity, and reducing waste. |
| Keywords: | Circular Economy, Recycling (Waste, etc), Sustainable development, Industrial policy, Structural transformation |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-104 |
| By: | Benoit Decerf (Development Finance and Public Policies, University of Namur); Merry Ferrando (Tilburg School of Economics and Management, Tilburg University); Balint Menyhert (University of Turku) |
| Abstract: | Poverty is inherently multidimensional, encompassing both monetary and nonmonetary dimensions. However, these outcomes are often collected in separate surveys, leaving the joint distribution partially unobserved. To improve social poverty comparisons, we propose a new simple method to address this data constraint: assume a fixed value for the missing part of the joint distribution. This approach allows the integration of outcomes collected from different surveys, unlike the mainstream method currently in use. Drawing on household surveys from six developing countries where both dimensions are observed, we show that our method systematically outperforms traditional single-survey measures and “mash-up” measures. Monte Carlo simulations further confirm the robustness of our results across a wide range of datagenerating scenarios. Our findings highlight the value of our proposed method for monitoring multidimensional poverty and suggest it may also benefit other social indicators facing similar data limitations. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:nam:defipp:2504 |