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on Post Keynesian Economics |
| By: | Miller, William Lee |
| Abstract: | This study examines the metaphysical foundations of economics, focusing on transforming value from subjective origins to objective realizations through interconnected networks of human activity. While traditional theories, including subjective marginal utility-based perspectives, highlight individual and transient valuations, they often overlook the intrinsic informational and motivational nature of value as a driver of systemic growth. This study addresses this gap, presenting a theoretical model in which subjective valuations evolve into objective, persistent value through collaborative economic networks. Algorithmic simulations demonstrate the feasibility of Universal Basic Income as a transformative mechanism for aligning government finances, strengthening civic engagement, and eliminating poverty. The proposed arbitrage financed fund leverages market dynamics to achieve economic stability without relying on taxation. Scenario-based simulations illustrate the viability of UBI implementation in the U.S., revealing its potential to achieve sustainable growth and transform society. By integrating metaphysical insights with algorithmic modeling, this study offers a novel framework for understanding value creation and its implications for economic policy. It highlights the expansive role of valuing networks in fostering wealth and civic participation, proposing actionable pathways for reimagining economic institutions. The findings underscore UBI’s ability to catalyze eudaimonic societal outcomes as a foundation for higher sustainable rates of poverty- eradicating economic growth. |
| Date: | 2025–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:hb6rn_v1 |
| By: | Yin-Fang Zhang; Antonio Savoia; Kunal Sen |
| Abstract: | An important feature of the process of transformation in developing economies is the depth and outreach of their capital and credit markets, i.e. financial development. As this is often considered crucial to support growth and poverty reduction, it is important to understand what structural factors drive it. The literature so far has assessed the role of historical, political, cultural, and institutional determinants, but has not yet adequately investigated the role of inequality. This paper addresses this lacuna by empirically investigating its effects. |
| Keywords: | Econometric models (Finance), Income inequality, Capital market, Financial markets, Sustainable development |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-59 |
| By: | Alexandre Chirat (Université Marie et Louis Pasteur, CRESE UR3190, F-25000 Besançon, France); Basile Clerc (Université Paris Nanterre, EconomiX, UMR 7235, F-92000 Nanterre, France) |
| Abstract: | Drawing on the historical analogy with War Economy, this article investigates the concept of a “Climate War Economy” (CWE) to address the medium run macroeconomic imbalances inherent in the green transition. We argue that, as in war economies, the green transition is likely to generate a structural disequilibrium between constrained supply and rising demand, leading to medium-run inflationary pressures. This article uses the CWE analogy to open a broader discussion on the economic and political relevance of revisiting the macroeconomic stabilization tools deployed during World War II. It first examines how, in response to wartime constraints, governments suspended market mechanisms through price and quantity controls. Then, it explores the parallels with today’s green transition. By tracing the reasoning behind these interventions, the article shows how this historical experience can inform climate policy-makers and enriched ecological macroeconomics. Finally, the paper addresses the limitations of the war economy analogy, while arguing that price and quantity controls can be used to manage the macroeconomic imbalances of the green transition without undermining liberal democratic principles. |
| Keywords: | Green Transition, Inflation, Price control, War Economy, Planning |
| JEL: | Q54 P11 B00 N00 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:crb:wpaper:2025-10 |
| By: | Andersen, Ditte |
| Abstract: | As part of Acta Sociologica’s special issue on ‘Social investment in Action’ we bring an interview with Professor Elizabeth Popp Berman (EPB), author of the widely acclaimed Thinking like an Economist – How Efficiency Replaced Equality in US Public Policy (Princeton University Press, 2022) . Interviewer, Ditte Andersen (DA), probes Berman’s argument on how the economic style of reasoning is linked to specific values, especially the value of efficiency, in ways that crowd out other values (e.g. democratic participation, universal rights) and constrain social policy thinking in contemporary Western societies. Social investment policies epitomize the economic style of reasoning by orientating towards returns of public spending. In policy domains such as education, ‘social investment in action’ forefronts the value of returns (in the future) rather than, for example, the value of equality and universalism (in the present). The interview also turns attention to the role of sociologists in denaturalizing the taken for granted and aid the imagination of alternative futures. |
| Date: | 2025–09–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:j38dt_v1 |
| By: | Hannes Mueller; Laura Mayoral |
| Abstract: | This paper reviews the growing literature on the relationship between institutions—political, administrative, and economic—and the emergence and prevention of armed conflict. We synthesize evidence showing how strong, inclusive, and accountable institutions, including democratic governance and robust state capacity, can reduce the risk of conflict through multiple mechanisms such as inclusion, deterrence, credible commitment, and the effective provision of public goods. At the same time, we examine how conflict can erode institutional quality, creating self-reinforcing cycles of fragility and underdevelopment. The review concludes with a set of policy recommendations aimed at breaking these cycles and outlines a forward- looking research agenda to deepen our understanding of how institutional reform can foster peace and resilience in fragile and conflict-prone settings. |
| JEL: | D74 O43 P16 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1511 |
| By: | Bose, Sukanya (National Institute of Public Finance and Policy); Banerjee, Saikat (National Institute of Public Finance and Policy) |
| Abstract: | A macroeconomic framework integrating growth, distribution and human development with social spending as a crucial link provides an alternative view for conceptualizing fiscal policy for India. In policy formulation, the growth potential of social spending is ignored while concerns about fiscal implications of social spending are overstated. Using a demand-side macro model incorporating necessary supply side features for the Indian economy, the growth implications of social spending is demonstrated. The social spending multiplier in India, estimated over 1990 to 2022 stands at 1.67, with implications for growth and human development following across several years. The results indicate that a combination of policies on social sector expenditure, along with policies on income redistribution are both growth-promoting and self-financing in nature. |
| Keywords: | Human Development ; Growth ; Aggregate Demand ; Social spending ; Fiscal multiplier ; Debt Sustainability ; structural ; policy simulation ; distribution |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:npf:wpaper:25/436 |
| By: | Cigna, Luca; Di Carlo, Donato; Durazzi, Niccolò |
| Abstract: | The green transition is fundamentally transforming contemporary economies and societies. This article investigates how European models of capitalism perform and specialize across the green value chain—conceptualized as innovation, manufacturing, services, and deployment—and how national skill formation systems underpin these specializations. Integrating insights from comparative capitalism literatures with descriptive statistics and principal component analysis (PCA), we develop and test expectations about growth regime‐specific patterns of green specialization and skill profiles. Our findings reveal marked cross‐national variation between green leaders and laggards: Nordic economies characterized by dynamic services and continental manufacturing‐based models are frontrunners in the green transition, while Eastern Europe's FDI‐led regimes and Southern Europe's demand‐led regimes emerge as laggards. Furthermore, PCA results uncover two distinct decarbonization pathways among European green leaders: one group of countries (Austria, Finland, Germany) specializes in green manufacturing, supported by high shares of STEM graduates; another (Denmark, Switzerland, and to a lesser extent Norway and Sweden) focuses on green innovation and dynamic services, sustained by a strong supply of STEM doctorates. This article contributes to political economy debates on the green transition by identifying distinct green specializations and decarbonization pathways across European models of capitalism and by underscoring the growing centrality of high‐level STEM skills in the green transition. |
| Keywords: | growth regimes; skill formation; global value chains; green transition; comparative political economy |
| JEL: | N0 R14 J01 |
| Date: | 2025–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129591 |
| By: | Benedict Clements (Universidad de Las Américas, Ecuador); Sanjeev Gupta (Center for Global Development); João Tovar Jalles (University of Lisbon-Lisbon School of Economics and Management (ISEG); Universidade de Lisboa-ISEG; Universidade Nova de Lisboa-Nova School of Business and Economics IPAG Business School) |
| Abstract: | Achieving Sustainable Development Goal (SDG) 1 requires not only sustained economic growth and robust social protection systems but also a concerted effort to combat corruption, which remains a critical barrier to poverty reduction. This paper examines the multifaceted ways in which corruption undermines poverty alleviation efforts—by distorting public resource allocation, weakening institutions, eroding public trust, and reducing government capacity to mobilize domestic resources, particularly through taxation. The paper then explores strategies for addressing corruption, including enhancing fiscal transparency, strengthening anti-corruption legislation, improving public financial management, and leveraging digital technologies. Ultimately, it argues that tackling corruption is essential for creating the fiscal and institutional foundations necessary for achieving SDG 1 and promoting inclusive and sustainable development. |
| Date: | 2025–08–21 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:ppaper:361 |
| By: | Prettner, Klaus; Stojanovikj, Martin |
| Abstract: | We examine how extractive institutions affect the timing of the takeoff to sustained economic growth, the pace of industrialization, and the long-run balanced growth path of an economy. The politically dominant ruling elite can choose to extract a share of output and/or to interfere with creative destruction by extracting innovation resources. In so doing, the ruling elite needs to balance its desire for grabbing a greater share of resources with the constraint of being able to stay in power. We show that the extraction from output delays the takeoff to sustained economic growth and reduces economic growth in the early industrial period. However, taken by itself, output extraction does not reduce the long-run balanced growth rate. By contrast, if the ruling elite interferes with creative destruction by extracting resources meant for innovation, it suppresses economic growth during industrialization and along the balanced growth path. After deriving the main results analytically, we calibrate the model to the U.S. economy to illustrate the adverse long-run development effects of extractive institutions. According to our results, institutions and policies that reduce the extractive power of the ruling elite can boost economic development to a substantial degree. |
| Keywords: | Extractive Institutions; Institutions and Growth; Industrial Takeoff; Schumpeterian Growth; Economic Development; Long-Run Growth; Growth Transitions |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wus005:77527668 |