|
on Heterodox Microeconomics |
|
Issue of 2016‒05‒28
nineteen papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Joseph Halevi (International University College of Turin) |
| Abstract: | Luigi Pasinetti’s work has deeply affected modern economic theory. His papers on the Cambridge Capital Controversy are world renowned. But he has made many other contributions to the economic debates of the last half century, offering not only detailed criticisms of mainstream economic theory, but also the elaboration of an alternative, more complete, and coherent framework for understanding growth and income distribution, structural change, and trade relations. He has also made notable contributions to discussions of economic policy. Pasinetti’s papers are very clearly written, but many are formidably technical and often build cumulatively on his previous work. This paper provides a careful and synthetic overview of his contributions as well as a reconstruction of Pasinetti’s philosophical approach to economics as a science meant to serve humanity. |
| Keywords: | Luigi Pasinetti, Capital Controversy, Piero Sraffa, Classical Economics, Vertical Integration, Theory of Value and Prices, Structural Dynamics, Trade, Growth, Crises, Maastricht Criteria. |
| JEL: | B31 B4 B5 C6 E1 F1 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:40&r=hme |
| By: | Davis, John B. (Department of Economics Marquette University) |
| Abstract: | This paper reviews the debate in economics over neuroeconomics’ contribution to economics. It distinguishes majority and minority views, argues that this debate has been framed by mainstream economics’ conception of itself as an isolated science, and argues that this framing has put off the agenda in economics issues such as individual identity that are increasingly important in connection with the social and historical context of economic explanations in a changing complex world. The paper first discusses how the debate over neuroeconomics has been limited to the question of what information from other sciences might be employed in economics. It then goes on to the individual identity issue, and discusses how economics’ top-down, closed character generates a circular individual identity conception, while bottom-up, open character of psychology and neuroscience, and their continual concern with the changing relation between theory and evidence, has produced four competing individual identity conceptions in neuroeconomic research. |
| Keywords: | neuroeconomics, mainstream economics, isolated science, identity, revealed preference, circularity, MRI, distributed cognition |
| JEL: | A12 B41 D03 D87 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:mrq:wpaper:2016-03&r=hme |
| By: | João Lopes (UECE, ISEG/University of Lisbon) |
| Abstract: | The great recession of 2008/2009 and the subsequent sovereign debt crises highlighted the existence of deep structural imbalances in the Euro Area: the large differences of competitiveness and growth potential between its northern and southern countries. In this paper, an input-output approach is used to study several facets of this phenomenon, namely the connection between current account (trade) imbalances and domestic final demand levels, as well as the sectoral specialization of tradable goods and services production. In the uncompetitive (current account deficit) economies of southern euro area, domestic final demand levels are in excess of its equilibrium values and the opposite occurs in the strong, competitive economies of the north. These external imbalances are parallel to, and in good measure explained by, a different geographic pattern of specialization favourable to the northern euro-area countries (sectors with higher value added and more intensive technological activities). The external dependency and value added generation capacity of the productive sectors of these economies are also quantified, with a new treatment of inter-industry output multipliers which follows closely Amaral et al (2011). The (gross) output growth potential given by the column sums of the Leontief inverse matrix (backward linkage indicators) results from three terms: inter-industry flows, value added and imported inputs. After a convenient arrangement of these terms, the evolution of backward linkage indicators can be used to detect structural changes, particularly quantifying a (net) growth effect (more value-added generation) and an external dependency effect (more imported inputs), and to classify the productive sectors accordingly. The empirical results of the paper are based on input-output tables for several years: 1995, 2000, 2005 and 2008, available in the World Input Output Database. The northern euro-area group is formed by Germany, Netherlands, Finland and Ireland. The southern is the so-called GIPS group (Greece, Italy, Portugal and Spain). |
| Keywords: | Input-output linkages, external dependency, structural change, Euro Area countries |
| JEL: | C67 D57 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3606083&r=hme |
| By: | William Lazonick (University of Massachusetts Lowell and The Academic-Industry Research Network.) |
| Abstract: | In Capitalism, Socialism, and Democracy, Joseph Schumpeter asserts: “perfect competition is not only impossible but inferior, and has no title to being set up as a model of ideal efficiency.†For neoclassical economists, the large corporation is a “market imperfection†that, compared with “perfect competition,†should result in higher product prices and lower industry output. Yet business history reveals the capability of the most productive enterprises to generate massive quantities of output at low costs to attain large market shares with buyers benefiting from low prices even as employees receive higher pay and shareholders ample dividends. By integrating the history of industrial development in Britain and the United States with the ideas of leading economic thinkers, this essay demonstrates the absurdity of perfect competition as the ideal of economic efficiency. Indeed, I show that, in their desire to make the market rather than the firm the main arbiter of resource allocation, neoclassical economists have enshrined the sweatshop as the foundation of their analysis, with profoundly negative consequences for understanding how a modern economy actually operates and performs. In doing so, neoclassical economists ignore not only the economic history of capitalism but also the intellectual history of their own discipline. I conduct a journey through two hundred years of economic thought – from Adam Smith’s The Wealth of Nations (1776) to Alfred Chandler’s The Visible Hand (1977) – to derive analytical foundations for a theory of innovative enterprise that can explain and explore firm-level sources of productivity growth in the economy. What then do more sophisticated theories of the firm rooted in the neoclassical tradition have to offer? In a section of this essay that I call (borrowing a phrase from Adolf Berle and Gardiner Means) “Economic Theory for ‘an Era of Corporate Plundering’,†I outline the shortcomings of Williamsonian transaction-cost theory and Jensenian agency theory for analyzing the role of the business corporation in the operation and performance of the economy. From the perspective of the theory of innovative enterprise, I demonstrate how the methodology of constrained optimization trivializes the business enterprise while the ideology that companies should be run to maximize shareholder value legitimizes financial predators, many senior corporate executives among them, in the looting of the industrial corporation. The “era of corporate plundering†since the mid-1980s has contributed to extreme concentration of income among the richest households and the erosion of middle-class employment opportunities. Finally, I call for a transformation of economic thinking so that the innovative enterprise is at the center of economic analysis. The theory of innovative enterprise exposes as costly intellectual failures “perfect competition†as the ideal of economic efficiency, “constrained-optimization†as the prime tool of economic analysis, and “maximizing shareholder value†as the ideology of superior corporate governance. The theory of innovative enterprise provides, moreover, a clear and compelling rationale for sharing the gains of business enterprise among stakeholders in the broader community, in conjunction with government policies that seek to support sustainable prosperity, characterized by stable and equitable economic growth. |
| JEL: | B10 B20 B41 D01 D23 D40 L2 O30 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:25&r=hme |
| By: | Elisabetta Addis (Università di Sassari e L.U.I.S.S. Guido Carli, Roma); Majlinda Joxhe (CREA Center for Research in Economic Analysis University of Luxembourg) |
| Abstract: | In this paper, we show that social capital accumulation along the life cycle is different for men and women. We discuss the concept of social capital and some problems connected to its definition and measurement. We survey the literature on gender and social capital and use the Italian data of the “Multiscopo” Survey to assess differences in life cycle accumulation of social capital by sex and age. The lifecycle profile of social capital accumulation is gendered, with men accumulating more social capital at all ages, with a different peak and overall profile. We also show that, over 15 years, the gap in social capital by sex narrowed. Finally, we introduce a model of social capital structure compatible with the empirical evidence and with notions of gender as defined in feminist literature. |
| Keywords: | Social Capital, Gender, Network formation, Relations, Life cycle, Italy. |
| JEL: | Z13 J16 D85 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:saq:wpaper:2/16&r=hme |
| By: | M. Ciaschini (University of Macerata); A.K. El Meligi (University of Macerata); R. Pretaroli (University of Macerata); F. Severini (University of Macerata); C. Socci (University of Macerata) |
| Abstract: | In this paper an e ort is made to enrich the current Input-Output methodologies employed for studying the disruptive events, by extending the IO framework and including all the phases of the circular flow of income into the overall disaster impact. In this respect the Inoperability Extended Model is created and implemented in order to estimate the higher order effects in terms of value added percentage variations. The 2010 Social Accounting Matrix referred to the United Kingdom, is constructed and it is proposed as a starting point for assessing the effects of a system perturbation. The case of study is related to the eruption of the Volcano Eyjafjallajökull in mid April 2010 which became an international disruptive event heavily affecting the air transport services due to a full closure of British Air Space for several days. Finally the ranking of those commodities which are badly affected can provide guidance to the policy makers to minimize the overall impact on the economy |
| JEL: | C67 D57 E16 L93 Q54 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:mcr:wpdief:wpaper00080&r=hme |
| By: | Tschakert,Petra |
| Abstract: | There is no doubt that the poorest people are already and will continue to be most severely impacted by climatic changes, including shifting trends as well as more frequent and severe extreme events. Yet, new insights on the dynamics and distribution of poverty point to the need to comprehend where the poor and poorest are, how they are poor, and why their poverty constrains their abilities to cope with and adapt to occurring and predicted changes. This paper draws on a diverse and growing literature on climate change and poverty to argue that uneven power relations more so than exposure and sensitivity to climatic hazards make the poor and disadvantaged distinctly more vulnerable than more affluent, privileged, and powerful groups and individuals. Further, climatic stressors and climate change as well as climate policies, often entangled with social exclusion and institutional neglect, compound the issue of poverty and exacerbate human precariousness, hence acting as a threat multiplier. The paper compares different approaches to assessing poverty, and explores structural processes and power dynamics that drive or perpetuate inequalities. The paper also investigates how the currently nonpoor may become transient or chronic poor, how climate change may exacerbate poverty traps, and how interventions to curb emissions and multidimensional poverty may be tackled to pursue climate-resilient development pathways. |
| Keywords: | Regional Economic Development,Science of Climate Change,Climate Change Mitigation and Green House Gases,Rural Poverty Reduction,Population Policies |
| Date: | 2016–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7677&r=hme |
| By: | G. Fagiolo (Scuola Superiore Sant'Anna); A. Roventini (Scuola Superiore Sant'Anna & OFCE Sciences Po) |
| Abstract: | The Great Recession seems to be a natural experiment for economic analysis, in that it has shown the inadequacy of the predominant theoretical framework | the New Neoclassical Synthesis (NNS) | grounded on the DSGE model. In this paper, we present a critical discussion of the theoretical, empirical and political-economy pitfalls of the DSGE-based approach to policy analysis. We suggest that a more fruitful research avenue should escape the strong theoretical requirements of NNS models (e.g., equilibrium, rationality, representative agent, etc.) and consider the economy as a complex evolving system, i.e. as an ecology populated by heterogeneous agents, whose far-from-equilibrium interactions continuously change the structure of the system. This is indeed the methodological core of agent-based computational economics (ACE), which is presented in this paper. We also discuss how ACE has been applied to policy analysis issues, and we provide a survey of macroeconomic policy applications (fiscal and monetary policy, bank regulation, labor market structural reforms and climate change interventions). Finally, we conclude by discussing the methodological status of ACE, as well as the problems it raises. |
| Keywords: | Economic policy, New neoclassical synthesis, new keynesian models, DSGE models, Agent-based computational economics, agent based models, complexity theory, Great recession, Crisis. |
| JEL: | B41 B50 E32 E52 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:16011&r=hme |
| By: | Aspiazu, Eliana |
| Abstract: | La Salud es una actividad que se caracteriza por su heterogeneidad, por tener una gran carga de cuidado en sus tareas y estar compuesta mayormente por mujeres, a la vez que es atravesada por múltiples déficits en las condiciones laborales y profundas desigualdades de género. Este artículo indaga sobre las condiciones laborales en el sector de la salud desde una perspectiva de género, a partir de datos estadísticos disponibles y de entrevistas en profundidad a trabajadores/as y dirigentes sindicales de la Salud. El análisis triangula datos cuantitativos y cualitativos acerca de las desigualdades en la inserción laboral entre varones y mujeres y las percepciones y discursos predominantes en el ámbito sindical al respecto, con el objetivo de identificar avances y limitaciones en la incorporación de un enfoque de género en el sector. |
| Keywords: | Salud; Condiciones de Trabajo; Brecha de Género; Desigualdad Social; |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:2465&r=hme |
| By: | Richard G. Lipsey (Simon Fraser University) |
| Abstract: | Advocates of green-growth policies and those who advocate policies to stop growth both accept that the world faces serious environmental problems. They disagree on and debate about appropriate remedies. Green-growth advocates argue that it is possible to create a green economy compatible with sustained growth. The no-growth advocates argue that the whole growth process must be stopped if the planet is to be saved from catastrophe. This short paper argues that choosing the optimal policy for dealing with these serious problems does not require deciding which group is right. Instead it is argued that the optimal policy is to act as if the green-growth advocates are right and only if they are proved wrong by the failure of their policies to do the job, should no-growth policies be attempted. |
| Keywords: | climate change, green growth, no-growth policies, environmental policies, carbon pricing. |
| JEL: | Q28 Q38 Q48 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:sfu:sfudps:dp16-05&r=hme |
| By: | Depaoli, María Victoria |
| Abstract: | En el presente trabajo se busca analizar las diferencias en las percepciones de maestras y maestros respecto a sus condiciones de trabajo remunerado y la distribución del trabajo no remunerado dentro del hogar a partir del marco de la economía del cuidado. El estudio comprende entrevistas en profundidad a docentes de nivel primario de la ciudad de Mar del Plata, respecto a las percepciones sobre los procesos de selección de la ocupación, las diferencias de género en el trabajo y el hogar, las condiciones de trabajo y el salario percibido, entre otros. Asimismo, por medio de una encuesta de uso del tiempo se cuantificaron los tiempos de trabajo -remunerado y no remunerado- de un día típico, como también la distribución de actividades dentro del hogar. Los resultados encontrados permiten afirmar que existen diferencias dentro del hogar entre mujeres y varones, siendo las mujeres quienes enfrentan la mayor carga de cuidado. A su vez, se trata de una profesión con una importante sobrecarga de trabajo, condiciones laborales precarias y grandes diferencias de acuerdo al tipo de establecimiento. |
| Keywords: | Condiciones de Trabajo; Docentes; Percepción; Trabajo Doméstico; Actividad no Remunerada; Brecha de Género; |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:2453&r=hme |
| By: | Savanna Washington (City University of New York) |
| Abstract: | In 1915, “The Clansman,†a 3-1/2 hour film, opened at Clune’s Auditorium in Los Angeles seating 2500 people. At the time most films ran 15 minutes or less and screened at “Nickelodeans,†cheap store fronts that generally seated 200 people or less. Later re-titled, “Birth of a Nation,†it was the first movie to introduce modern shot composition, editing, and theatrics in a way audiences had never seen before. Donald Bogle writes, “The film’s magnitude and epic grandeur swept audiences off their feet.†Then president, Woodrow Wilson, said of the film, “It’s like writing history with lightning.†Only the film wasn't history, it was single-minded propaganda written by Thomas Dixon.The film was based on the book written by Thomas Dixon – a Southern white man, entitled, “The Clansman: An Historical Romance of the Ku Klux Klan,†Dixon lived in North Carolina during the “Reconstruction†period immediately after the American Civil War. Reconstruction was a period marked by the beginnings of enfranchisement for former black slaves, including advances in elected office, which horrified whites in North Carolina (and throughout the South). The negative stereotypes of Blacks in Birth of a Nation, “Literal and unimaginative as some types might now appear, the naïve and cinematically untutored audiences of the early part of the century responded to the character types as if they were the real thing.†(Bogle) It is estimated that by 1930 almost 50 million Americans had seen the film – fully one-third of the population of the country. In 1934, the Payne Fund Studies argued that, “Birth of a Nation showed how great an impact films could have in encouraging audiences’ racism.†Birth of a Nation gave rise to negative black archetypes that continued to be perpetrated in the media for decades after the film and these negative archetypes still frame racial opinion, public discourse, and violence in the United States, 100 years after it was released. In 2014-2015 in the United States, several deaths of unarmed black men at the hands of police renewed public discourse about race in contemporary America. How are African-American communities perceived by the police and the majority culture as a whole? Where do these perceptions emanate? This paper focuses on the history of the perception of Black people in America and how the film, “Birth of a Nation,†distributed 100 years ago this year, continue to shape the narrative of Black people in America. |
| Keywords: | Black images in media, Black Lives Matter, Birth of a Nation, D.W. Griffith, |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3605932&r=hme |
| By: | Frank Walsh |
| Abstract: | Using data from the Quarterly National Household Survey supplemented with some data from the European Social Survey we document a steady decline in union density in Ireland since 2003. While the great recession appeared to halt the decline this was temporary and density has continued to decline, indeed when changes in composition of worker and job attributes are accounted for there is a steady decline throughout the period. The analysis suggests that changes in the composition of job and worker characteristics during the deep recession between 2008 and 2011 served to offset the underlying decline in density. We also look respectively at the contributions of flows of workers into and out of union/non-union employment to the change in density. While the bulk of transitions into and out of union employment are associated with job changes, in fact the inflows and outflows cancel out for this category. The bulk of the change in membership came from changes in the net flow of workers who stayed in the same job into and out of union employment. We show that union members were much less likely to exit employment throughout the period compared to non-members. We present suggestive evidence from the European Social Survey that there is a substantial free rider effect associated with working in establishments where unions have influence without being a member. The paper concludes with a brief discussion of the possible implications of declining membership for labour market outcomes. |
| Keywords: | Trade union membership; Ireland |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:oapubs:10197/7622&r=hme |
| By: | Arlette Simo-Fotso (Ined) |
| Abstract: | Si la majorité de la population handicapée dans le monde vit dans les pays en voie de développement, on ne sait pourtant que très peu de choses sur les conséquences du handicap dans ces régions du monde. Ce travail utilise les données de l’Enquête Démographique et de Santé à Indicateurs Multiples (DHS-MICS) 2011 afin d’évaluer l’effet du handicap des enfants sur l’éducation de ces derniers au Cameroun. Cet effet est également évalué à la fois sur la fréquentation scolaire et sur la réussite scolaire et suivant la sévérité du handicap. L’apport scientifique de ce travail réside dans le fait que, dans un contexte d’abscence de données longitudinales, les estimations des effets du handicap sont corrigées à la fois du biais d’endogénéité lié aux inobservables à travers un modèle à effets-fixes famille et à effets-fixes fratrie, et du biais lié à la simultanéité grâce à l’utilisation du handicap de naissance. Il en résulte que le handicap modéré et le handicap sévère de l’enfant réduisent de 9% et 42% sa probabilité de fréquenter actuellement l’école et de 8% et 55% respectivement sa probabilité d’avoir déjà été l’école. Le handicap, lorsqu’il est modéré, mais plus encore lorsqu’il est sévère, réduit la réussite scolaire, montrant que le faible niveau d’éducation des enfants handicapés n’est pas unique dû au problème d’accès à l’école. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:idg:wpaper:222&r=hme |
| By: | Shirazi, Dr. Nasim Shah (The Islamic Research and Teaching Institute (IRTI)); Obaidullah, Dr. Mohammed (The Islamic Research and Teaching Institute (IRTI)); Haneef, Mohamed Aslam (IIUM) |
| Abstract: | Pakistan has been facing a high incidence of poverty. Despite its persistent efforts to make a dent on poverty, the country never witnessed a systematic reduction in the same. The country has been spending a significant amount on safety nets and social protection programs. Some programs provide direct cash grants and other forms of indirect support to the poor, while microfinance programs provide microcredit, micro savings and micro insurance to the beneficiaries. The government extends full support to the microfinance industry and seeks to provide an enabling environment for its successful operation. As a result, the microfinance industry in Pakistan has been flourishing and steadily enhancing its outreach. However, despite all the efforts, it currently covers just about 10 percent of the market in 2013. In Pakistan, initiatives for Islamic microfinance have been undertaken by a few NGOs and financial institutions. Almost all IMIs function below operational self- sufficiency (OSS) and financial-selfsufficiency (FSS) levels. Most of IMIs are unable to increase their outreach due to the human and financial constraints. They face a constrained supply of funds as well as human resources. This paper posits that the constraints are more apparent than real. Islamic finance must include as part of the formal financial system, its time-tested institution of waqf involving endowment of both financial and real assets for community empowerment. The IMIs should be well aware of how to create and put to use such community assets for the economic and social betterment of the community. The paper sought the opinion of beneficiaries on waqf- Islamic microfinance integrated model and discussed the same with the professionals and practitioners. The beneficiaries were not aware of the main components of the waqf-microfinance integrated model, but professionals and practitioners, invariably supported the integrated model while voicing some concerns that should be considered while formulating policies for the sector |
| Keywords: | waqf; integration of waqf; Islamic microfinance; poverty; Pakistanreduction; Islamic institutions and poverty reduction; Poverty reduction in the IDB member countries |
| Date: | 2015–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:ris:irtiwp:1436_005&r=hme |
| By: | Thomas Krause; T. Sondershaus; Lena Tonzer |
| Abstract: | We construct a novel dataset to measure banks’ business and geographical complexity. Using these measures of complexity, we evaluate how they relate to banks’ idiosyncratic and systemic riskiness. The sample covers stock listed banks in the euro area from 2007 to 2014. Our results show that banks have increased their total number of subsidiaries while business and geographical complexity have declined. |
| Keywords: | bank risk, complexity, globalization |
| JEL: | G01 G20 G33 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:17-16&r=hme |
| By: | Sabina Alkire and Mauricio Apablaza |
| Abstract: | Multidimensional approaches to poverty and deprivation have a long and distinguished history in conceptual and philosophical work (Sen 1992). This chapter explores multidimensional poverty using EU-SILC data from 2006 to 2012. We calculate a multidimensional poverty index based on the Alkire Foster (AF) methodology - a widely used flexible methodology which can accommodate different indicators, weights and cut-offs. We draw on existing Europe 2020 indicators, as well as on indicators of health, education and the living environment. Aggregated and country cross sectional results are presented. A short analysis of dynamics of multidimensional poverty is also included. |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:qeh:ophiwp:ophiwp074&r=hme |
| By: | - |
| Abstract: | O mundo vive uma mudança de época. A comunidade internacional, respondendo aos desequilíbrios econômicos, distributivos e ambientais do estilo de desenvolvimento dominante, aprovou recentemente a Agenda 2030 para o Desenvolvimento Sustentável e seus 17 Objetivos. Este documento, que a Comissão Econômica para a América Latina e o Caribe (CEPAL) apresenta aos Estados membros no trigésimo sexto período de sessões, complementa analiticamente essa Agenda com base na perspectiva estruturalista do desenvolvimento e sob o ponto de vista dos países da América Latina e do Caribe. Suas propostas se concentram na necessidade de impulsionar uma mudança estrutural progressiva que aumente a incorporação de conhecimento na produção, garanta a inclusão social e combata os efeitos negativos da mudança climática. As reflexões e propostas para avançar rumo a um novo estilo de desenvolvimento mantêm seu foco no impulso à igualdade e à sustentabilidade ambiental. A criação de bens públicos globais e de seus correlatos no âmbito regional e de políticas nacionais é o núcleo a partir do qual se expande a visão estruturalista para um keynesianismo global e uma estratégia de desenvolvimento concentrada num grande impulso ambiental. |
| Keywords: | AGENDA 2030 PARA EL DESARROLLO SOSTENIBLE, DESARROLLO SOSTENIBLE, CONDICIONES ECONOMICAS, COMERCIO INTERNACIONAL, MEDIO AMBIENTE, CRISIS ECONOMICA, PRODUCTIVIDAD, POBREZA, DISTRIBUCION DEL INGRESO, IGUALDAD DE GENERO, DESARROLLO ECONOMICO, DESARROLLO SOCIAL, IGUALDAD, MODELOS DE DESARROLLO, 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT, SUSTAINABLE DEVELOPMENT, ECONOMIC CONDITIONS, INTERNATIONAL TRADE, ENVIRONMENT, ECONOMIC CRISIS, PRODUCTIVITY, POVERTY, INCOME DISTRIBUTION, GENDER EQUALITY, ECONOMIC DEVELOPMENT, SOCIAL DEVELOPMENT, EQUALITY, DEVELOPMENT MODELS |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:c39025:40118&r=hme |
| By: | Luigi Mittone; Gian Paolo Jesi |
| Abstract: | The Allingham and Sandmo model is an adaptation of the standard expected utility maximization framework where the taxpayer is defined as a representative agent who is coping with a risky choice. The main limit of this model regards the assumption of perfect rationality from the agent’s side and the impossibility to study at the macro level a situation where many heterogeneous agents interact together. The aim of this work is to try to overcome, at least partially, some of the neoclassical standard approaches in this field. More precisely, we present a very simplified, agent- based, fiscal system with heterogeneous tax payers, interacting within a public good game framework. Heterogeneity has been introduced in our model by designing the agents like simple heuristics. The environment has been designed by a voluntary supply public good context reinforced through tax audits and fines. Looking for more realism, we also allowed agents to mutate their heuristics and we introduced two cross sectional types of agents: the “employees" and the “self-employees" allowing our agents to switch from one type to the other and vice-versa. Finally, the system is dynamic over time, since new agents can join over time to mimic the idea of having a growing population over time. We obtained a complex adaptive system (CAS) with heterogeneous agents, dynamically evolving, able to describe the adaptation of agent’s behaviour either concerning evading decision and the preferred kind of heuristic. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpce:1605&r=hme |