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on Post Keynesian Economics |
| By: | João Tovar Jalles |
| Abstract: | This paper critically reassesses the claim that Portugal constitutes a stable wage-led growth regime, as argued by Alcobia and Barradas (2023). Combining conceptual analysis, Portuguese time-series evidence and cross-country panel estimations for advanced economies and emerging market and developing economies, the paper shows that the relationship between labour-share growth and output growth is highly unstable and sensitive to specification choices, productivity dynamics, investment controls and external conditions. Once productivity, capital accumulation and competitiveness variables are incorporated, the estimated labour-share effect becomes economically weak and statistically fragile. Historical evidence further indicates that Portuguese growth episodes were more closely associated with productivity convergence, European integration, capital accumulation and external adjustment than with autonomous distributive expansions. The findings suggest that wageled and profit-led classifications should not be interpreted as stable policy-invariant structural characteristics of economies. Instead, the growth effects of distributive changes depend critically on productivity performance, openness, financial conditions and institutional context. |
| Keywords: | wage-led growth; labour share; productivity growth; Portugal; external competitivenesss. |
| JEL: | E12 E24 O11 O47 P16 |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp04272026 |
| By: | Laurentjoye, Thibault; Valdecantos, Sebastián; Raza, Hamid; Byrialsen, Mikael Randrup; Thomsen, Simon Fløj |
| Abstract: | In this paper, we present QMDE, an empirical quarterly stock-flow consistent (SFC) model of Denmark. It is categorized as a medium-sized model to strike a balance between complexity and economic intuition. This model provides a nuanced understanding of Denmark's economic structure, segmenting it into five institutional sectors and analysing transactions and financial flows among them. The model operates on a demand-led framework, focusing on the main components of aggregate demand influencing real GDP. It details the determinants of consumption, investment, profit share, capacity utilization and international trade flows, using data from Denmark to estimate structural parameters with an autoregressive distributed lag (ARDL) approach. QMDE's versatility is demonstrated through four applications. First, it is used to examine whether Denmark's economy is wage-led or profit-led. The model processes various policy shocks, showing complex relationships between demand, income distribution and economic growth. The results suggest that Denmark does not strictly conform to being either wage-led or profit-led. Second, addressing inflationary pressures post-COVID-19, the model assesses the efficacy of traditional monetary responses and explores alternative fiscal and income policies. The analysis suggests that coordinated tax reductions and wage-price policies effectively mitigate inflation, while supporting GDP growth. Third, analysing the increase in the surplus level of Denmark's current account after 2010, the model identifies key drivers such as increased real net exports and favourable terms of trade. Counterfactual scenarios reveal that changes in trade balances, export prices and savings rates significantly impact the current account balance, suggesting a shift towards a more permanently high surplus. Fourth, investigating the effects of tightening of unemployment benefits under Denmark's flexicurity model, the model evaluates scenarios of policy reversal, the removal of unemployment benefits' role in wage determination and changes in unemployment insurance membership. Findings indicate an overall expansionary but modest effect of unemployment benefits on economic growth and employment, highlighting a policy trade-off between fiscal savings and employment stimulation. |
| Keywords: | Modelo de Flujos y Stocks Consistentes; Demanda Agregada; Distribución del Ingreso; Inflación; Dinamarca; |
| Date: | 2025–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4610 |
| By: | Norbert Ankri; Pa\"ikan Marcaggi |
| Abstract: | We develop a dynamic three-sector model in which Marx's aggregate equalities (total price equals total value and total profit equals total surplus value) are treated as strict conservation constraints throughout capital reallocation and technical diffusion. Three price-value coefficients are determined by the two aggregate equalities and a closure that sets one sector's price-based profit rate equal to the contemporaneous value-based average (the anchor). Before innovation, capital inflow expands the receiving sector's output and, under both anchors, lowers its unit price and excess profitability. This endogenous fall in price as output rises supports a two-timescale reading: demand-related price movements may precede slower adjustment through capital mobility. A labour-saving, capital-intensifying innovation generates temporary extra surplus value, revalues committed capital, and changes the economy-wide profit rate. At constant real wages, the final uniform rate rises, consistent with Okishio's theorem. When real wages rise sufficiently to keep aggregate exploitation approximately constant, the organic composition increases and the final rate falls. Strict aggregate conservation is computationally coherent and yields distinct transitional predictions under explicit closure and wage assumptions. |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2609.29346 |
| By: | Bugarčić, Milica; Hanić, Hasan |
| Abstract: | The paper presents the results of a meta-analysis of empirical literature focused on the study of behavioral biases in financial decision-making. The findings indicate that biases such as loss aversion, present bias, status quo bias, overconfidence, and herding systematically shape both individual and collective financial behavior. Their influence is evident across diverse institutional and cultural contexts, confirming that behavioral deviations are structural rather than incidental features of economic behavior. The study highlights the need to integrate longitudinal and neuroeconomic approaches to achieve a deeper understanding of the interaction between cognitive, emotional, and contextual factors in decision-making processes. By incorporating psychological dimensions into economic theory, behavioral economics provides a more comprehensive and realistic framework for interpreting market dynamics and enhancing the quality of financial decision-making. |
| Keywords: | behavioral economics, behavioral finance, financial decion-making, cognitive biases |
| JEL: | D14 G53 I22 G41 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esconf:343874 |
| By: | Heinz, Frederik R. |
| Abstract: | Debates on democratic backsliding have prompted public administration scholars, notably Kutsal Yesilkagit and Michael Bauer, to argue that administrations facing illiberal populism must abandon neutrality and actively resist — even against electoral majorities. This paper examines Bauer's recent attempt to ground such resistance in Hegel's philosophy of right, which recasts bureaucracy as an ethical mediator embodying practical reason rather than a mere instrument of political rule. Through a close reading of Hegel's original text, this paper argues that Bauer's Hegelian turn imports more than a theory of administrative ethics: it imports Hegel's broader project of a "sovereignty of reason" directed against arbitrariness in politics as such, not merely against its populist variant. Read against contemporary diagnoses that locate liberalism's crisis in excessive depoliticization rather than its absence, this suggests that Bauer's strategy risks reinforcing the very populist grievances it seeks to counter. The paper concludes by outlining the need for a normative foundation of public administration that supports a politics of freedom without positioning itself against politics itself. |
| Date: | 2026–09–09 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:hnjcw_v1 |