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on Post Keynesian Economics |
| By: | boughabi, houssam |
| Abstract: | This paper develops a Kaleckian model of wage dynamics in which wages are determined by forward-looking expectations, firms’ profitability, and institutional conditions shaped by fiscal policy. The model introduces nonlinear and regime-dependent effects through an institutional function that mediates the transmission of expectations and profits into wage outcomes. To empirically assess these mechanisms, we estimate a flexible reduced-form specification using machine learning methods, allowing for complex interactions and threshold effects that are not captured by standard linear approaches. The results provide evidence that institutional and fiscal regimes play a key role in shaping wage responses, supporting the view that income distribution is driven by distributive conflict and policy structures rather than market-clearing forces. These findings contribute to the post-Keynesian literature by offering a novel empirical framework for analyzing wage formation and highlight the importance of fiscal policy in influencing inequality and macroeconomic stability. |
| Keywords: | Wage dynamics, distributive conflict, post-Keynesian economics, machine learning econometrics, fiscal institutions. |
| JEL: | C45 C53 E12 E24 E60 |
| Date: | 2026–05–04 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128993 |
| By: | Frontera, Mr. |
| Abstract: | If artificial intelligence advances toward structural substitution of human labor — one of two trajectories that dominate the current debate — it could erode the wage channel that for more than a century distributed purchasing power and sustained effective demand. Economies would then generate unprecedented productive capacity while employment-based wage income declined in relative terms, opening a structural gap between what can be produced and what the market can realize. This work argues that, in such a scenario, the human being does not disappear from the economic circuit: the function changes. From a central producer the human being would become the indispensable bearer of the demand factor — the human capacity to absorb production through purchasing power, which would transform automated production into realized market value. From this Copernican turn, the IRIS framework articulates three interconnected instruments: the Market Access Tax (MAT), which captures the uncompensated incidence of AI on domestic production; the Market Access Right (MAR), which extends the same logic to access from outside the jurisdiction; and the Market Access Dividend (MAD), its distributive counterpart. The architecture is reinforced by the institutional efficiency dividend generated by the new efficiency of the AI-assisted public sector. Entitlement to the MAD is recognized in the social body that sustains the effective demand of the market — not as an assistance category defined by need, but as factor compensation for a collective contribution. By principle, that title extends to the citizenry as a whole, whose economic function as consumers should not, by definition, place its structural position below the subsistence threshold. The paper further develops a transitional measurement architecture that evolves from technical, economic, and declarative proxies toward an enterprise interpretive agent assisted by AI. And it confronts squarely the structural limit of the fiscal horizon: even a complete MAT-MAR-MAD system, enhanced by institutional efficiency, may prove insufficient to rebuild broad effective demand in a deeply automated economy. Linking automation, longevity, pension sustainability, and the care economy, IRIS is configured as a bridge architecture: it buys institutional time for an orderly transition toward new forms of human work while preventing the collapse of demand. The question it leaves open is no longer merely fiscal: it concerns how to articulate institutionally a productive capacity expanded by AI with an effectively distributed purchasing power. |
| Keywords: | Artificial Intelligence; Automation; Technological Unemployment; Labor Displacement; Effective Demand; Demand Factor; AI Taxation; Market Access Tax; Market Access Dividend; Public Finance; Income Redistribution; Basic Income; AI Dividend; Functional Finance; Purchasing Power; Care Economy; Longevity; Pension Sustainability; Future of Work; Industrial Policy, UBI. |
| JEL: | D63 E12 E24 E25 E51 E62 H23 I38 P16 |
| Date: | 2026–05–13 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:129098 |
| By: | water, spring |
| Abstract: | This paper establishes the theoretical framework of the School of Legal-Economic Isomorphism, arguing that law and economy exist not in a relationship of mutual influence, but in an isomorphic relationship of definition and being defined. Drawing on comparative historical analysis spanning from the Code of Hammurabi and Fuxi’s trigrams to the Roosevelt New Deal, the study distills three sub-laws of civilizational evolution: the Law of Productivity Step-Functions, the Law of Legal Reconstruction, and the Law of Alignment Synchronization. It diagnoses the persistent global economic stagnation of the past two decades as a “Temporal Misalignment” between industrial-age legal frameworks and digital-age productive forces. The paper introduces core analytical concepts—Digital Public Infrastructure, Digital Easement, Digital Rent, and Rentier Capitalism—to demonstrate that large digital platforms function not as private stores but as digital land extracting feudal-like rents. The study proposes a constitutional-level institutional engineering program for the digital age, including the publicization of platforms, the prohibition of digital rent, and the establishment of data public ownership, while critically transcending existing schools of Law and Economics, Institutional Economics, and Marxist Political Economy. |
| Keywords: | Legal-Economic Isomorphism; Constitutional Reconstruction; Digital Public Infrastructure; Digital Rent; Platform Economy; Temporal Misalignment; Rentier Capitalism; Institutional Engineering; Law and Economics |
| JEL: | K0 K1 K2 |
| Date: | 2026–05–16 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:129198 |
| By: | Lemos, Morena Hanbury; Hickel, Jason |
| Abstract: | In Open Veins of Latin America (1971), Eduardo Galeano argued that colonial interventions in Latin America organised the regional economy around raw material exports and drained the continent of valuable resources and labour, producing conditions of underdevelopment. Scholars have argued that this dynamic continues today, where the suppression of prices and input costs in peripheral regions enables the global North to appropriate resources and value through ‘unequal exchange’. Building on this analysis and grounded in the Marxist tradition of dependency theory, this study empirically assesses Latin America's position with respect to unequal exchange of natural resources and labour embodied in trade. We use environmentally extended multi-regional input-output (EEMRIO) analysis to measure net flows of embodied materials (biomass, fossil fuels, minerals, and metals), land, and labour between Latin America, the global North, China, and the rest of the global South (1995 to 2020) across seven sectors, along with wage compensation against the labour flows. We find that Latin America has suffered a large drain of all resources to the North over the period. In 2020, the North net-appropriated 935 million tons of materials (including biomass, minerals, metals, and fossil fuels), 4 million km2 of land, and 53 billion hours of labour (worth €816 billion in Northern wages) from Latin America, mostly consumed as manufactured goods and services. We find that Latin America's position in the world economy is increasingly ‘peripheral’ in character. It remains a major supplier of primary commodities to the North, experiences a greater per capita drain of biomass, metals, and land than China or the rest of the global South, and disproportionately suffers the ecological damages of Northern consumption. |
| Keywords: | dependency theory; global inequality; input-output analysis; uUnequal exchange; uneven development |
| JEL: | N0 R14 J01 |
| Date: | 2026–10–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:138593 |