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on Heterodox Microeconomics |
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Issue of 2021‒11‒29
ten papers chosen by Carlo D’Ippoliti Università degli Studi di Roma “La Sapienza” |
| By: | Lee, Hyejin; Swinnen, Johan; Cayseele, Patrick Van |
| Keywords: | Agribusiness, Marketing |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae21:315107&r= |
| By: | Remy Guichardaz; Julien Pénin |
| Abstract: | The development of a dynamic model of endogenous economic change was a major challenge for Schumpeter throughout his academic career. With regard to this life-long objective, this work provides an explanation of why it was impossible for Schumpeter to offer a convincing endogenous theory of the emergence of novelty. We show that Schumpeter’s view of the apparition of pure novelty is centered around an individual and elitist dimension of entrepreneurship and an energetic and vitalist axiom of social change, which is by nature hardly compatible with endogenous evolution. Furthermore, our revisiting of the last writings of Schumpeter shows that, when it comes to the issue of the emergence of pure novelty, the impossibility persisted until his death. Contrary to the claim of some commentators, even the old Schumpeter remained stuck into an individualistic, elitist and energetic view of the generation of pure novelty. |
| Keywords: | Schumpeter; entrepreneur; economic evolution; endogenous change; innovation. |
| JEL: | B15 O3 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2021-41&r= |
| By: | Neves, Mateus; Silva, Felipe de Figueiredo; de Freitas, Carlos Otávio |
| Keywords: | Agribusiness |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae21:315268&r= |
| By: | Hancké, Bob; Van Overbeke, Toon; Voss, Dustin |
| Abstract: | We examine economic policy responses to the COVID-19 induced economic collapse in Germany (a coordinated market economy) and the UK (a liberal market economy). The two countries responded to the symmetric economic shock with very similar furlough and business credit schemes to stabilize the demand and supply sides of the economy. However, since these policies fed into very different political-economic structures in both countries, they produced very different results. We attribute this divergence to the effect of “institutional complementarities,” the notion in Varieties of Capitalism that different elements of a system are mutually articulated and, therefore, mutually reinforcing beyond their initial contribution, or vice versa. Our results serve as a cautionary tale to policymakers that introducing policy elements developed in other institutional contexts is complex and challenge us to consider systematically the way in which institutional frameworks actively shape policy outcomes. |
| Keywords: | Covid-19; coronavirus; CUP deal |
| JEL: | J1 E6 |
| Date: | 2021–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:111059&r= |
| By: | Gough, Ian |
| Abstract: | More and more nation states are now committing to net-zero carbon by 2050 at the latest, which is encouraging, but none have faced up to the transformation of economies, societies and lives that this will entail. This paper considers two scenarios for sustainable welfare and discusses the implications for contemporary incomes, jobs and welfare states. It is necessarily restricted to the EU and similarly rich countries of the developed world. The first scenario is the Green New Deal framework to decarbonise the economy whilst addressing the distributional and welfare issues this would involve. This paper argues that expanded public provision of ‘essentials’ would be a necessary social component of this strategy. The second scenario goes further to counteract runaway private consumption by building an economy of egalitarian sufficiency with ceilings to income, wealth and consumption. This would require a further extension of labour market and welfare state interventions. The paper provides a framework for mapping and developing these two distinct approaches and for identifying a range of policy options on jobs and incomes. |
| JEL: | J1 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:112594&r= |
| By: | Jakob Kapeller; Stuart Leitch; Rafael Wildauer (University of Greenwich) |
| Abstract: | This paper investigates the potential of a European net wealth tax to raise substantial revenues while supporting the economy and the consensus on climate action. To achieve this, household survey data from the European Central Bank (covering 22 EU countries) are analysed. To address the problem of under-reporting of wealth at the top of the distribution in survey data, a Pareto distribution is fitted to the right tail of the data and used to create an amended data set which also represents these missing rich, whose wealth goes unreported. The Pareto-amended data show that household wealth is highly concentrated among the wealthiest households: the richest 1% hold 32% of total net wealth in the EU22 while the poorest half of all households only hold about 4.5% of total net wealth. These data are then used to estimate revenues for four different tax models. The results show that annual revenues between €192 billion (1.6% of GDP) and €1,281 billion (10.8% of GDP) across the EU22 are possible. |
| Keywords: | None |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2119&r= |
| By: | François Facchini (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Stephanie Kelton a vulgarisé la Théorie Monétaire Moderne (TMM). À l'occasion de la traduction française de son ouvrage Le mythe du déficit, François Facchini revient sur cette doctrine et expose un certain nombre de critiques qui lui ont été adressées. |
| Date: | 2021–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-03389106&r= |
| By: | Daniel Carvalho (Banco de Portugal); Etienne Lepers (Organisation for Economic Co-operation and Development); Rogelio Jr Mercado (Asian Development Bank) |
| Abstract: | An important channel through which capital flows may lead to financial vulnerabilities is by fuelling domestic credit booms, the so-called "capital flows-credit growth nexus". This paper makes two important contributions to the study of this nexus (i) it adopts a sectoral approach to the relationship between cross-border capital flows and domestic credit growth and (ii) it studies how di erent macroprudential and financial policies affect that relationship. Using novel datasets on both sectoral flows and policy measures for 36 emerging economies for the 2000-2018 period, the results not only underscore the importance of a granular sectoral approach to identify the full range of connections between capital flows and credit growth, but also regarding the appropriate policy response. While, in general, macroprudential policies and foreign currency-based measures are more suited to mitigate the impact of banking sector flows, capital controls may be e ective in the presence of non-financial corporates (NFC) and other financial corporates flows. Breaking by borrowing sectors, within macroprudential measures, lending standards and measures targeted at household credit weaken the impact of inflows on household credit and measures aimed at household credit actually strengthen the relationship between NFC flows and NFC credit suggesting a potential shift in composition. |
| Keywords: | capital flows, domestic credit, sectors |
| JEL: | E51 F32 G15 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:tcd:tcduee:tep0921&r= |
| By: | Marco Capasso; Marina Rybalka |
| Abstract: | Innovation is one of the usual suspects in defining differences in performance among firms, according to a strong and diverse theoretical framework. Understanding the diversity that exists within the population of innovative firms is essential to elaborate appropriate innovation policies. Our study explores the diversity of innovation patterns among Norwegian firms included in the 2018 Community innovation survey (CIS2018). By applying factor analysis on a wide array of survey variables and on a large sample of firms, we identify eleven typical approaches to innovation, which recurrently connect innovation inputs and outputs at firm level. A main outcome of our study is a renewed fine-grained view on innovation as a multifaceted concept. |
| Keywords: | Technological change; Innovation survey; Factor analysis; Business strategies; Intra-industry heterogeneity. |
| Date: | 2021–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2021/40&r= |
| By: | Chakravarti, Jayani; Basso, Frédéric |
| Abstract: | Sustainable organisations have to be profitable to maintain their economic and social activity. However, prior literature finds that people are reluctant to associate profitability with sustainability, which leads to negative judgement. Through experimental evidence, the current research supports this idea but shows that profitability actually backfires within sustainable organisational contexts when it is intentional, rather than unintentional. Results indicate that consumers use a zero-sum heuristic on resource allocation when they are presented with a green product that is intentionally (vs. unintentionally) profit-generating. They infer from intended (vs. unintended) profitability that the organisation devoted greater resources to make profit rather than to make the product more sustainable. This product thus appears less sustainable to consumers and they are less interested in buying it. The article concludes with a discussion on the implications of this research for sustainable organisations. |
| Keywords: | corporate sustainability; green product; morality; tainted altruism; zero-sum heuristic; Department of Psychological and Behavioural Science |
| JEL: | R14 J01 |
| Date: | 2021–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:108167&r= |