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on Heterodox Microeconomics |
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Issue of 2014‒08‒25
thirteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Maito, Esteban Ezequiel |
| Abstract: | The article presents an estimate of the rate of profit in United Kingdom between 1855 and 2009. By isolating some of the countervailing forces specified by Marx of the law of the tendency of the rate of profit to fall, it demonstrates that the law impose despite those countervailing forces, which do not reverse the tendency in the long term. Finally, the article deals with the tendency and economic cycles based on the historical development of the rate of accumulation and the rate of growth of employees. A statistical annex is included at the end. |
| Keywords: | United Kingdom - Rate of profit - Countervailing forces - Marx - Law of the tendency of the rate of profit to fall |
| JEL: | B51 E22 P10 P16 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:58007&r=hme |
| By: | Sheila C Dow (University of Stirling) |
| Abstract: | The purpose of this paper is to argue that awareness of the epistemological issues arising from an open-system ontology is critical to understanding the crisis and the policy response, to challenging that understanding and to encouraging a radical policy shift. The argument is couched in terms of belief as an epistemological concept. In particular the paper addresses the misleading impression, persuasively conveyed by mainstream economists, that their argument for austerity is ‘scientific’ and independent of ideology, power and ethics. The resulting widespread belief in austerity policies as scientifically justified has prevented arguments against austerity gaining more traction. The critique of austerity policies would therefore be strengthened by a critique of this rhetorical (mis)representation of economic theorising. |
| Keywords: | fiscal austerity; science; belief |
| JEL: | B4 E1 E62 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp1409&r=hme |
| By: | Trippl, Michaela (CIRCLE, Lund University); Grillitsch, Markus (CIRCLE, Lund University); Isaksen, Arne (Department of Working Life and Innovation, University of Agder); Sinozic, Tanja (Institute for the Environment and Regional Development, Vienna University of Economics and Business) |
| Abstract: | The past two decades have witnessed an ever-growing scholarly interest in regional clusters. The focus of research has mainly been on why clusters exist and what characteristics “functioning” clusters hold. Although the interest in more dynamic views on clusters is not new, in recent years, however, more attention has been paid to providing better explanations of how clusters change and develop over time, giving rise to an increasing popularity of different variants of the cluster life cycle approach. This article offers a critical review of various cluster life cycle models. We discuss the key ideas and arguments put forward by their main protagonists and we identify several shortcomings – such as the problematic predefinition of development phases, indifference to context-specific factors and neglect of multi-scalar impacts – that surround these models. Based on this critical assessment the article identifies several core issues for future research. In particular, we argue that there is a need to gain a better understanding of the context sensitivity of cluster evolution, to explore how cluster development paths are influenced by a multiplicity of factors and processes at various spatial scales and their interactions, and to investigate the role of human agents and to unravel how they shape the long-term development of regional clusters. |
| Keywords: | cluster evolution; life cycle approaches; context sensitivity; multi-scalar frameworks; human agency |
| JEL: | P48 R10 R11 R50 R58 |
| Date: | 2014–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2014_012&r=hme |
| By: | Nagengast, Arne J.; Stehrer, Robert |
| Abstract: | One of the main stylised facts that has emerged from the recent literature on global value chains is that bilateral trade imbalances in gross terms can differ substantially from those measured in value added terms. However, the factors underlying the extent and sign of the differences between the two measures have so far not been investigated. Here, we propose a novel decomposition of bilateral gross trade balances that accounts for the differences between gross and value added concepts. The bilateral analysis contributes conceptually to the literature on double counting in trade by identifying the trade flow in which value added is actually recorded for the first time in international trade statistics. We apply our decomposition framework to the development of intra-EU27 trade balances from 1995 to 2011 and show that a growing share of intra-EU bilateral trade balances is due to demand in countries other than the two direct trading partners. The latter accounted for 25% of the total variance of intra-EU gross bilateral trade balances in 2011, which marks a considerable rise from 3% in 1995. A structural decomposition analysis indicates that this evolution was especially due to the rising importance of international production sharing. -- |
| Keywords: | Trade balances,Global value chains,Vertical specialisation,Value added,Input-output tables |
| JEL: | F1 F2 C67 R15 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:142014&r=hme |
| By: | Marcenaro Gutierrez, Oscar (University of Malaga); Micklewright, John (Institute of Education, University of London); Vignoles, Anna (University of Cambridge) |
| Abstract: | Greater levels of social mobility are widely seen as desirable on grounds of both equity and efficiency. Debate on social mobility in Britain and elsewhere has recently focused on specific factors that might hinder social mobility, including the role of internships and similar employment opportunities that parents can sometimes secure for their children. We address the help that parents give their children in the job market using data from the new age 42 wave of the 1970 British Cohort Study. We consider help given to people from all family backgrounds and not just to graduates and those in higher level occupations who have tended to be the focus in the debate in Britain. Specifically, our data measure whether respondents had ever had help to get a job from (i) parents and (ii) other relatives and friends and the form of that help. We first assess the extent and type of help. We then determine whether people from higher socio-economic status families are more or less likely to have such help and whether the help is associated with higher wages and higher occupations. Our paper provides insight into whether the strong link between parental socio-economic background and the individual's own economic success can be explained in part by the parents assisting their children to get jobs. We find parental help to have a strong social gradient. But we are unable to identify a clear link between any particular type of help – advice, help through contacts etc. – and individuals' wages or occupations. |
| Keywords: | social mobility, networks, family, wages |
| JEL: | J62 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp8380&r=hme |
| By: | Ejaz Ghani; William Kerr; Stephen D. O'Connell |
| Keywords: | Gender - Gender and Development Transport Economics Policy and Planning Gender - Gender and Health Housing and Human Habitats Gender - Gender and Law Transport Communities and Human Settlements |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:17013&r=hme |
| By: | Jean-Luc Gaffard (OFCE); Mauro Napoletano (OFCE) |
| Abstract: | Are current economic models well equipped to provide useful policy prescriptions? Many economists would have certainly answered, “yes” before the recent Global Recession. This economic crisis has not only demonstrated the importance of banking and financial markets for the dynamics of real economies. It has also revealed the inadequacy of the dominant theoretical framework. Standard models have indeed failed to forecast the advent of the crisis. In addition, they have been unable to indicate a therapy able to restore economic growth (...). |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/53r60a8s3kup1vc9l564k4686&r=hme |
| By: | Kırer, Hale (Balıkesir University, Bandırma Faculty of Economics and Administrative Sciences, Department of Econometrics); Çırpıcı, Yasemin (Yıldız Technical University, Faculty of Economics and Administrative Sciences, Department of Economics); Eren, Ercan (Yıldız Technical University, Faculty of Economics and Administrative Sciences, Department of Economics) |
| Abstract: | Economic systems involve many heterogeneous agents and their complex interactions. These lead many studies, in recent years, to focus on the complex networks. Agent based modelling and simulation (ABMS) is a powerful tool for analyzing such systems. This model enables interacting agents to assess individually their positions and makes decisions on the basis of a set of rules that configure the system. International trade can be thought of as a complex network since it consists of interacting heterogeneous agents (countries) with special characteristics. Network representation also makes it possible to analyze indirect trade interaction among countries. In this study the network of international trade of European countries is modelled by using an agent-based model. The aim is to display briefly the network structure of the European international trade. |
| Keywords: | Complex Networks, Agent-Based Modelling, Complexity Economics, International Trade. |
| JEL: | C63 C69 F14 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:eyd:cp2013:243&r=hme |
| By: | Schneider, Sebastian |
| Abstract: | Given recent history it may be necessary to recall that the so-called Great Recession we have been witnessing for more than five years now was, first and foremost, a crisis of financial markets. One reason for rising debt levels at the outset of the crisis have been massive government expenditures to bail out struggling and even failing banks. Yet, I argue that it falls short of a satisfactory explanation to simply view political action as a rational response to "objective" political and economic problems. Therefore, the fundamental question that underlays this study is: How did different institutional settings influence diverging policy reactions to the financial crisis? To answer this question, this study compares bank bailouts in France, Germany and the United Kingdom. Drawing upon the Varieties of Capitalism literature, I identify four central, national institutions that have influenced political decision-making during the financial crisis: the political system, traditions of market intervention, economic discourse and banking and financial systems. The French president, Nicolas Sarkozy, reverting to France's dirigiste tradition and resorting to a dense elitist network, used bank bailouts to support the French financial industry and to create "national champions". This sort of policy was accompanied by a non-liberal discourse criticising "excessive" financial markets. In Germany, on the other hand, the government deliberated with a broad coalition of political and market actors to create a bailout programme aiming at sustaining bank lending to the industry. However, market actors were criticised on a moral and ethical basis and the ordo-liberal state was considered as a necessary corrective safeguarding true economic freedom. Finally, the UK's "elected dictator", Prime Minister Gordon Brown, used his political power and involved his close political allies to carry out a bailout programme that was predominantly designed to defend the international competitiveness of the British financial industry. Albeit market intervention was inevitable it was announced as being temporarily and leaving as much problem solving as possible to the markets. -- Angesichts der jüngeren Geschichte scheint die Erinnerung notwendig, dass die derzeitige Wirtschaftskrise zunächst als Bankenkrise begann. Zur Beilegung dieser Krise und zur Rettung zahlreicher Kreditinstitute, setzten die Regierungen in Europa und Nordamerika Summen bisher ungeahnten Ausmaßes ein. Diese Bankenrettungsprogramme waren jedoch mehr als nur eine rationale Lösung für bestehende wirtschaftliche Probleme. Wie diese Arbeit zeigt, hatten nationale Institutionen großen Einfluss auf politische Entscheidungen im Rahmen der Bankenrettung. Ein Vergleich zwischen Deutschland, Frankreich und Großbritannien zeigt, welche historisch gewachsenen Institutionen dabei eine entscheidende Rolle spielten und wie sie das taten. Vier zentrale, nationale Institutionen lassen sich mithilfe der Varieties of Capitalism-Literatur identifizieren: Das politische System, des Verhältnis Staat-Markt, der ökonomische Diskurs sowie das Banken- und Finanzsystem. Die deutsche Regierung verhandelte die diversen Bankenrettungen mit einer breiten Koalition politischer und Marktakteure, mit dem Ziel, die Kreditvergabe an die heimische Industrie zu stabilisieren. Begleitet wurde dieses Vorgehen von einem ordo-liberalen Diskus. Die Bankenrettung in Frankreich hingegen wurde durch den Präsidenten dominiert, welcher dabei auf ein Netzwerk aus politischen und Wirtschaftseliten zurückgriff, um "nationale Champions" zu schaffen. Hinzu kam ein kapitalismuskritischer öffentlicher Diskurs. In Großbritannien spielte Premier-Minister Gordon Brown eine beinahe ebenso dominante Rolle. Mit dem vorrangigen Ziel, die Wettbewerbsfähigkeit des Finanzstandortes London zu erhalten, griffen in Groß-Britannien vor allem Marktmechanismen und ein neoliberaler Diskurs. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubipe:212014&r=hme |
| By: | Marieke Huysentruyt |
| Abstract: | After having explained the smaller gender gap in social entrepreneurship compared to commercial entrepreneurship, this paper provides information on female management style and on the innovation capacity of social enteprises led by women. This Report is based on SELUSI data and presents three specific case studies from Hungary, Russia and Chile. |
| Date: | 2014–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2014/1-en&r=hme |
| By: | Bao-Jun Tang; Pi-Qin Gong |
| Abstract: | China and the United States are the top two largest energy consumers, but they have totally different energy consumption patterns. Firstly, newly added embodied energy inventory (NAEEI) is created based on the concept of embodied energy. We combine the improved economic input-output approach with LCA for modeling. NAEEI and its proportion to national aggregate primary energy consumption for the first decade of the 21st century of the two largest energy consumers were calculated. In 2001, China's annual NAEEI is 199.98 million tons of oil equivalents (toe). The figure soared to 908.50 million toe in 2010, with an average annual growth rate of 118.31%. Correspondingly, the proportion of NAEEI to China national aggregate primary energy consumption increased from 23.87% in 2001 to 37.35% in 2010, which implies that more and more energy have been embodied in fixed assets. By contrast, the United States holds only 37.29 million toe of the NAEEI, accounting for merely 1.65% of the national aggregate primary energy consumption. In 2010, the situation has not transformed, with the NAEEI of 32.38 million toe and the proportion of 1.42%, slightly decreasing compared to that of 2001. These statistics have shown us two totally different energy consumption patterns: U.S. for heavy instant consumption, light accumulation pattern and China for heavy accumulation, light instant consumption pattern. We name the proportion of the NAEEI to national aggregate primary energy consumption embodied energy accumulation (EEA) coefficient, which would be a number ranging from zero to one. Embodied energy accumulation coefficient can be taken as a concise criterion to demonstrate a country's economic development stage and energy consumption pattern. As for the huge gap of EEA coefficient between China and the United States, discrepancy in economic and social development, as well as investment-decision regimes are mainly to blame. |
| Keywords: | Newly added embodied energy inventory (NAEEI), improved economic input-output approach, life cycle analysis (LCA), energy consumption pattern |
| JEL: | Q40 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:50&r=hme |
| By: | Bell, Peter Newton |
| Abstract: | Review of the book titled 'Rethinking Housing Bubbles The Role of Household and Bank Balance Sheets in Modeling Economic Cycles' by Steven D. Gjerstad and Vernon L. Smith. Published by Cambridge University Press in May 2014. |
| Keywords: | Housing, Bubble, Balance Sheet, Cycles |
| JEL: | B53 E02 E44 E58 E65 G00 G01 G1 G10 G20 N10 N2 N20 R20 |
| Date: | 2014–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:58024&r=hme |
| By: | Dilger, Alexander |
| Abstract: | Gewerkschaften werden oft von Liberalen und Libertären kritisiert. Dabei sind sie Ausdruck grundlegender Freiheitsrechte, insbesondere der Vereinigungsfreiheit. Auch das Streikrecht ist innerhalb gewisser Grenzen ein legitimes Freiheitsrecht. Eine freie Gesellschaft ist mehr als Marktwirtschaft und diese geht über Kapitalismus im Sinne der Herrschaft des Kapitals bzw. kapitalgeleiteter Unternehmen hinaus. -- Labour unions are often criticised by liberals and libertarian. However, they embody fundamental liberties, especially the freedom of association. The right to strike is also a legitimate freedom without certain boundaries. A free society is more than a market economy, which exceeds capitalism in terms of the rule of capital or by capital controlled companies. |
| JEL: | J51 J52 J54 J83 L43 M55 D74 P10 P13 B50 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:umiodp:72014&r=hme |